EXHIBIT 10.7

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                              EMPLOYMENT AGREEMENT
                              --------------------

                             as amended and restated

         THIS AGREEMENT  entered into this 23rd day of August,  2000 ("Effective
Date"),  by and between  Landmark Federal Savings Bank (the "Bank") and Larry L.
Schugart (the "Employee").

         WHEREAS,  the  Employee  has  heretofore  been  employed by the Bank as
President and Chief Executive  Officer;  and is experienced in all phases of the
business of the Bank; and

         WHEREAS,  the  parties  have  previously  entered  into  an  Employment
Agreement dated September 30, 1994, as subsequently amended and renewed; and

         WHEREAS, the parties desire by this writing to set forth the continuing
employment relationship of the Bank and the Employee.

         NOW, THEREFORE, it is AGREED as follows:

         1.  Employment.  The  Employee  is  employed  in  the  capacity  as the
President and Chief  Executive  Officer of the Bank.  The Employee  shall render
such administrative and management services to the Bank and Landmark Bancshares,
Inc.  ("Parent") as are currently  rendered and as are customarily  performed by
persons  situated  in a similar  executive  capacity.  The  Employee  shall also
promote,  by entertainment or otherwise,  as and to the extent permitted by law,
the business of the Bank and Parent.  The Employee's  other duties shall be such
as the Board of Directors for the Bank (the "Board of Directors" or "Board") may
from time to time reasonably  direct,  including  normal duties as an officer of
the Bank.

         2. Base  Compensation.  The Bank agrees to pay the Employee  during the
term of this  Agreement a salary at the rate of $ 145,000 per annum,  payable in
cash not less  frequently than monthly;  provided,  that the rate of such salary
shall be reviewed by the Board of Directors  not less often than  annually,  and
Employee shall be entitled to receive annually an increase at such percentage or
in such an amount as the Board of Directors in its sole discretion may decide at
such time.

         3. Discretionary Bonus. The Bank will continue to periodically consider
the payment of cash bonuses in accordance  with past business  practices,  based
upon the  performance of the Employee and the results of operations of the Bank.
The Employee shall be entitled to  participate  in an equitable  manner with all
other senior management employees of the Bank in discretionary  bonuses that may
be  authorized  and declared by the Board of Directors to its senior  management
employees  from  time  to  time.  No  other  compensation  provided  for in this
Agreement  shall be deemed a

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substitute for the Employee's right to participate in such discretionary bonuses
when and as declared by the Board of Directors.

         4.(a)  Participation  in  Retirement,  Medical  and  Other  Plans.  The
Employee  shall be entitled to  participate  in any plan of the Bank relating to
pension,  profit-sharing,  or other retirement  benefits and medical coverage or
reimbursement  plans that the Bank may adopt for the  benefit of its  employees.
Additionally,  Employee's  dependent  family shall be eligible to participate in
medical and dental insurance plans sponsored by the Bank or Parent with the cost
of such premiums paid by the Bank. The Employee shall be entitled to participate
in any stock  benefit  programs,  tax-qualified  or  non-tax-qualified  deferred
compensation plans or any other fringe benefits instituted by the Bank.

            (b) Employee Benefits;  Expenses.  The Employee shall be eligible to
participate in any fringe benefits which may be or may become  applicable to the
Bank's senior management employees,  including by example,  participation in any
stock  option or  incentive  plans  adopted by the Board of Directors of Bank or
Parent, club memberships,  a reasonable expense account,  and any other benefits
which are commensurate with the  responsibilities  and functions to be performed
by the Employee under this Agreement.  The Bank shall reimburse Employee for all
reasonable  out-of-pocket expenses which Employee shall incur in connection with
his service for the Bank.

         5. Term. The term of employment of Employee under this Agreement  shall
be for the period  commencing on the Effective Date and ending  thirty-six  (36)
months thereafter ("Term").  Additionally,  on each annual anniversary date from
the  Effective  Date,  the term of  employment  under  this  Agreement  shall be
extended for an additional one year period beyond the then effective  expiration
date upon a  determination  and  resolution  of the Board of Directors  that the
performance of the Employee has met the requirements and standards of the Board,
and that the term of such Agreement shall be extended.

         6.       Loyalty; Noncompetition.

            (a) The  Employee  shall  devote his full time and  attention to the
performance  of  his  employment  under  this  Agreement.  During  the  term  of
Employee's employment under this Agreement, the Employee shall not engage in any
business or activity  contrary to the business  affairs or interests of the Bank
or Parent.

            (b) Nothing contained in this Paragraph 6 shall be deemed to prevent
or  limit  the  right  of  Employee  to  invest  in the  capital  stock or other
securities  of any  business  dissimilar  from that of the Bank or  Parent,  or,
solely as a passive or minority investor, in any business.

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         7.  Standards.  The  Employee  shall  perform  his  duties  under  this
Agreement in accordance  with such  reasonable  standards  expected of employees
with comparable positions in comparable  organizations and as may be established
from time to time by the Board of Directors.

         8. Vacation and Sick Leave.  At such  reasonable  times as the Board of
Directors  shall in its  discretion  permit,  the  Employee  shall be  entitled,
without loss of pay, to absent himself  voluntarily  from the performance of his
employment  under this Agreement,  with all such voluntary  absences to count as
vacation time; provided that:

            (a) The  Employee  shall be  entitled  to annual  vacation  leave in
accordance  with the policies as are  periodically  established  by the Board of
Directors for senior management employees of the Bank.

            (b) The  Employee  shall not be entitled  to receive any  additional
compensation  from the Bank on account of his failure to take vacation leave and
Employee  shall not be entitled to  accumulate  unused  vacation from one fiscal
year to the next, except in either case to the extent authorized by the Board of
Directors for senior management employees of the Bank.

            (c) In addition to the aforesaid paid vacations,  the Employee shall
be  entitled  without  loss of pay,  to  absent  himself  voluntarily  from  the
performance of his employment with the Bank for such additional  periods of time
and for such valid,  and  legitimate  reasons as the Board of  Directors  in its
discretion may determine.  Further,  the Board of Directors shall be entitled to
grant to the  Employee a leave or leaves of absence  with or without pay at such
time or times and upon such terms and  conditions  as the Board of  Directors in
its discretion may determine.

            (d) In addition,  the  Employee  shall be entitled to an annual sick
leave benefit as  established  by the Board of Directors  for senior  management
employees of the Bank.  In the event that any sick leave  benefit shall not have
been used during any year,  such leave shall accrue to subsequent  years only to
the extent authorized by the Board of Directors for employees of the Bank.

         9.       Termination and Termination Pay.

         The Employee's employment under this Agreement shall be terminated upon
any of the following occurrences:

            (a) The death of the Employee during the term of this Agreement,  in
which event the Employee's  estate shall be entitled to receive the compensation
due the  Employee  through the last day of the  calendar  month which is six (6)
months after the Employee's death.

            (b) The Board of Directors may terminate the  Employee's  employment
at any  time,  but  any  termination  by  the  Board  of  Directors  other  than
termination  for  Just  Cause,  shall  not  prejudice  the  Employee's  right to
compensation  or other benefits under the Agreement.  The Employee shall have no
right to receive compensation or other benefits for

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any period after termination for Just Cause.  Termination for "Just Cause" shall
include termination because of the Employee's personal dishonesty, incompetence,
willful  misconduct,   breach  of  fiduciary  duty  involving  personal  profit,
intentional failure to perform stated duties, willful violation of any law, rule
or  regulation  (other than  traffic  violations  or similar  offenses) or final
cease-and-desist order, or material breach of any provision of the Agreement.

            (c) Except as provided  pursuant to Section 12 herein,  in the event
Employee's  employment  under  this  Agreement  is  terminated  by the  Board of
Directors without Just Cause, the Bank shall be obligated to continue to pay the
Employee  the salary  provided  pursuant to Section 2 herein,  up to the date of
termination  of the term  (including any renewal term) of this Agreement and the
cost of Employee  obtaining all health,  life,  disability,  and other  benefits
which the Employee  would be eligible to  participate in through such date based
upon the benefit levels  substantially equal to those being provided Employee at
the date of  termination  of  employment,  but in no event  shall such salary or
benefits  continuation  be for a period  of less  than one year from the date of
termination of employment.

            (d) If the Employee is removed and/or  permanently  prohibited  from
participating  in the  conduct of the Bank's  affairs by an order  issued  under
Sections  8(e)(4) or 8(g)(1) of the Federal  Deposit  Insurance Act ("FDIA") (12
U.S.C.  181  8(e)(4)  and (g)(1  )),  all  obligations  of the Bank  under  this
Agreement shall terminate, as of the effective date of the order, but the vested
rights of the parties shall not be affected.

            (e) If the Bank is in default  (as  defined  in  Section  3(x)(1) of
FDIA) all  obligations  under this Agreement  shall  terminate as of the date of
default,  but  this  paragraph  shall  not  affect  any  vested  rights  of  the
contracting parties.

            (f) All obligations under this Agreement shall be terminated, except
to the extent  determined  that  continuation of this Agreement is necessary for
the continued operation of the Bank: (i) by the Director of the Office of Thrift
Supervision  ("Director of OTS"),  or his or her designee,  at the time that the
Federal  Deposit  Insurance  Corporation  ("FDIC")  enters into an  agreement to
provide assistance to or on behalf of the Bank under the authority  contained in
Section  13(c)  of  FDIA;  or (ii) by the  Director  of the  OTS,  or his or her
designee,  at the time  that the  Director  of the OTS,  or his or her  designee
approves a supervisory  merger to resolve  problems  related to operation of the
Bank or when  the  Bank is  determined  by the  Director  of the OTS to be in an
unsafe or unsound condition. Any rights of the parties that have already vested,
however, shall not be affected by such action.

            (g) The  voluntary  termination  by the Employee  during the term of
this  Agreement  with the delivery of no less than 60 days written notice to the
Board of  Directors,  other than  pursuant to Section  12(b),  in which case the
Employee shall be entitled to receive only the compensation,  vested rights, and
all employee benefits up to the date of such termination.

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            (h)  Notwithstanding  anything herein to the contrary,  any payments
made to the Employee pursuant to the Agreement,  or otherwise,  shall be subject
to and  conditioned  upon  compliance with 12 USC ss.1828(k) and any regulations
promulgated there under.

         10.  Suspension  of  Employment.  If the Employee is  suspended  and/or
temporarily  prohibited from  participating in the conduct of the Bank's affairs
by a notice  served  under  Section 8 (e) (3) or (g) (1) of the FDIA (12  U.S.C.
1818 (e) (3) and (g) (1)), the Bank's  obligations  under the Agreement shall be
suspended as of the date of service,  unless stayed by appropriate  proceedings.
If the charges in the notice are dismissed, the Bank shall, (i) pay the Employee
all or part of the  compensation  withheld while its contract  obligations  were
suspended and (ii) reinstate any of its obligations which were suspended.

         11. Disability.  If the Employee shall become disabled or incapacitated
to the extent  that he is unable to perform his duties  hereunder,  by reason of
medically determinable physical or mental impairment,  as determined by a doctor
engaged by the Board of  Directors,  Employee  shall  nevertheless  continue  to
receive the compensation and benefits which may be payable to Employee under the
provisions of disability  insurance coverage in effect for Bank employees.  Upon
returning to active full-time  employment,  the Employee's full  compensation as
set forth in this Agreement  shall be reinstated as of the date of  commencement
of such activities.  In the event that the Employee returns to active employment
on  other  than a  full-time  basis,  then  his  compensation  (as set  forth in
Paragraph 2 of this Agreement)  shall be reduced in proportion to the time spent
in said employment, or as shall otherwise be agreed to by the parties.

         12.      Change in Control.

            (a)  Notwithstanding  any provision  herein to the contrary,  in the
event  of the  involuntary  termination  of  Employee's  employment  under  this
Agreement,  in connection with, or within 12 months after, any change in control
of the Bank or Parent,  Employee shall be paid an amount equal to the product of
2.99 times the Employee's "base amount" as defined in Section  280G(b)(3) of the
Internal  Revenue  Code  of  1986,  as  amended  (the  "Code")  and  regulations
promulgated  thereunder.  Said sum shall be paid,  at the  option  of  Employee,
either  in one (1)  lump  sum  within  thirty  (30)  days  of  such  termination
discounted  to the present  value of such payment using as the discount rate the
interest rate payable on one year U.S. Treasury  obligations as published in the
Wall  Street  Journal  Eastern  Edition  as of the date of such  payment,  or in
periodic  payments  over  the  next  36  months  or the  remaining  term of this
Agreement  whichever  is  less,  as  if  Employee's   employment  had  not  been
terminated,  and such  payments  shall be in lieu of any other  future  payments
which the Employee  would be otherwise  entitled to receive  under  Section 9 of
this Agreement.  Notwithstanding the foregoing, all sums payable hereunder shall
be  reduced  in such  manner and to such  extent so that no such  payments  made
hereunder when  aggregated with all other payments to be made to the Employee by
the  Bank or the  Parent  shall be  deemed  an  "excess  parachute  payment"  in
accordance  with  Section  280G of the Code

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and be subject to the excise tax  provided at Section  4999(a) of the code.  The
term "control" shall refer to the ownership,  holding or power to vote more than
25% of the  Parent's or Bank's  voting  stock,  the control of the election of a
majority of the Parent's or Bank's  directors,  or the exercise of a controlling
influence over the management or policies of the Parent or Bank by any person or
by  persons  acting  as a group  within  the  meaning  of  Section  13(d) of the
Securities  Exchange Act of 1934.  The term "person"  means an individual  other
than the Employee,  or a corporation,  partnership,  trust,  association,  joint
venture, pool, syndicate,  sole proprietorship,  unincorporated  organization or
any other form of entity not specifically listed herein.

            (b)  Notwithstanding  any other  provision of this  Agreement to the
contrary,  Employee may voluntary  terminate his employment under this Agreement
following  a  change  in  control  of the Bank or  Parent,  and  Employee  shall
thereupon be entitled to receive the payment  described in Section 12(a) of this
Agreement,  upon the occurrence,  or within one year  thereafter,  of any of the
following events, which have not been consented to in advance by the Employee in
writing:  (i) if Employee  would be required to move his  personal  residence or
perform his principal  executive functions more than thirty-five (35) miles from
the Employee's  primary office as of the signing of this  Agreement;  (ii) if in
the organizational  structure of the Bank or Parent,  Employee would be required
to report to a person or persons  other than the President and Board of the Bank
or Parent; (iii) if the Bank or Parent should fail to maintain existing employee
benefits plans, including material fringe benefits,  stock option and retirement
plans; (iv) if Employee would be assigned duties and responsibilities other than
those normally  associated with his position as referenced at Section 1, herein;
or (v) if Employee  would not be elected or  reelected to the Board of Directors
of the Bank; or (vi) if Employee's responsibilities or authority have in any way
been materially diminished or reduced.

            (c) Arbitration. Any controversy or claim arising out of or relating
to this  Agreement,  or the breach  thereof,  shall be settled by arbitration in
accordance  with the rules then in effect of the district office of the American
Arbitration  Association  ("AAA")  nearest to the home  office of the Bank,  and
judgment upon the award rendered may be entered in any court having jurisdiction
thereof,  except to the extend  that the parties  may  otherwise  reach a mutual
settlement of such issue. The Bank shall incur the cost of all fees and expenses
associated  with filing a request for  arbitration  with the AAA,  whether  such
filing  is  made on  behalf  of the  Bank or the  Employee,  and the  costs  and
administrative  fees  associated  with  employing  the  arbitrator  and  related
administrative  expenses assessed by the AAA. The Bank shall reimburse  Employee
for all costs and expenses,  including reasonable  attorneys' fees, arising from
such  dispute,  proceedings  or actions,  notwithstanding  the ultimate  outcome
thereof. Such reimbursement,  which shall not exceed the Employee's compensation
for the remaining term of this Agreement,  shall be paid within ten (10) days of
Employee  furnishing to the Bank or Parent  evidence,  which may be in the form,
among other  things,  of a canceled  check or receipt,  of any costs or expenses
incurred by Employee.  Any such request for  reimbursement  by Employee shall be
made no more


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frequently than at sixty (60) day intervals.

         13.      Successors and Assigns.

            (a) This Agreement shall inure to the benefit of and be binding upon
any  corporate or other  successor  of the Bank or Parent  which shall  acquire,
directly or indirectly, by merger, consolidation,  purchase or otherwise, all or
substantially all of the assets or stock of the Bank or Parent.

            (b) Since the Bank is contracting for the unique and personal skills
of the Employee,  the Employee  shall be precluded  from assigning or delegating
his rights or duties  hereunder  without first  obtaining the written consent of
the Bank.

         14.  Amendments.  No amendments or additions to this Agreement shall be
binding  upon the  parties  hereto  unless  made in  writing  and signed by both
parties, except as herein otherwise specifically provided.

         15.  Applicable  Law. This agreement  shall be governed by all respects
whether as to validity, construction, capacity, performance or otherwise, by the
laws of the State of Kansas,  except to the  extent  that  Federal  law shall be
deemed to apply.

         16.  Severability.  The  provisions of this  Agreement  shall be deemed
severable and the  invalidity  or  unenforceability  of any provision  shall not
affect the validity or enforceability of the other provisions hereof.

         17. Entire Agreement. This Agreement together with any understanding or
modifications  thereof as agreed to in writing by the parties,  shall constitute
the entire agreement between the parties hereto.

         18.      Indemnification;  Insurance

            (a)  Indemnification.  The Bank agrees to indemnify the Employee and
his heirs,  executors,  and administrators to the fullest extent permitted under
applicable law and regulations,  including, without limitation 12 U.S.C. Section
1828 (k),  against any and all expenses and liabilities  reasonably  incurred by
the Employee in connection with or arising out of any action, suit or proceeding
in which the Employee may be involved by reason of his having been a director or
officer of the Bank or any of its subsidiaries, whether or not the Employee is a
director or officer at the time of incurring any such  expenses or  liabilities.
Such  expenses  and  liabilities  shall  include,  but shall not be limited  to,
judgments,   court  costs  and  attorney's  fees  and  the  cost  of  reasonable
settlements.  The Employee shall be entitled to  indemnification in respect of a
settlement  only if the  Board  of  Directors  of the  Bank  has  approved  such
settlement. Notwithstanding anything herein to the contrary, (i) indemnification
for  expenses  shall not  extend to  matters  for  which the  Employee  has

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been  terminated  for, and (ii) the obligations of this Section 18 shall survive
this.  Nothing  contained  herein  shall be  deemed to  provide  indemnification
prohibited by applicable law or regulation.

            (b)  Insurance.  During  the term of the  Agreement,  the Bank shall
provide  the  Employee  (and his  heirs,  executors,  and  administrators)  with
coverage  under a  directors'  and  officers'  liability  policy  at the  Bank's
expense,  at least equivalent to such coverage  otherwise  provided to the other
directors and senior officers of the Bank.

         IN WITNESS WHEREOF, the parties have executed this Agreement on the day
and first hereinabove written.



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