Document:

Exhibit 10(14)

                                                          --------------, ------

                AWARD NOTIFICATION UNDER THE RIVER VALLEY BANCORP
                    RECOGNITION AND RETENTION PLAN AND TRUST

-------------------:

     You are hereby awarded a total of ____ shares of the Common Stock,  without
par value  ("Common  Stock"),  of River Valley Bancorp  ("RVB")  pursuant to the
River Valley Bancorp  Recognition and Retention Plan and Trust (the "Plan"),  on
the following terms and conditions:

     1. The shares of Common  Stock  subject to award vest at the rate of twenty
percent (20%) of the aggregate  number of shares covered by the award at the end
of each full twelve months of  consecutive  service with River Valley  Financial
Bank, or an affiliate thereof (collectively,  the "Financial Institution") after
the date of grant.  If your service as an  employee,  director  and/or  director
emeritus with the Financial Institution  terminates prior to _______,  ____, for
any reason (except as discussed below),  then you will forfeit the right to earn
any shares of Common Stock subject to this award which have not previously  been
earned.  In  determining  the number of shares of Common Stock which are earned,
fractional  shares will be rounded down to the nearest  whole  number,  provided
that  such  fractional  shares  will be  aggregated  and  earned,  on the  fifth
anniversary of the date of grant.

     2.  Notwithstanding  the general rule contained in paragraph 1, above,  all
shares of Common Stock  subject to this award held by you will be deemed  earned
as of your last day of service for the Financial Institution as a result of your
death or disability.

     3. Notwithstanding  anything herein to the contrary, the Board of Directors
of the Financial  Institution may immediately revoke,  rescind and terminate any
award,  or portion  thereof,  previously  awarded  under the Plan, to the extent
shares of Common Stock have not been delivered to you, whether or not the shares
have  been  earned,  if you are  discharged  from the  employ  of the  Financial
Institution  for  cause,  if you are  removed  from the Board for cause or it is
discovered after your service  terminates that you have engaged in conduct which
would have justified discharge or removal for cause.

     4. Whenever  shares of Common Stock awarded under the Plan are paid to you,
or to the  beneficiary  you designate,  such person will be entitled to receive,
with  respect to each share of Common  Stock paid,  an amount  equal to any cash
dividends or cash  distributions and a number of shares of Common Stock equal to
any stock dividends,  and any other asset  distributions  declared and paid with
respect to a share of Common Stock  between the date the shares are  distributed
and the date such shares were granted, along with any net earnings thereon.

     5. Shares of Common Stock will be distributed to you, or to the beneficiary
you designate,  as the case may be, as soon as practicable  after they have been
earned;  provided,  however, no shares of Common Stock will be distributed prior
to _________,  ____, to the extent

<PAGE>

you or the  beneficiary you designate would after the receipt of such shares own
in excess of ten percent  (10%) of the issued and  outstanding  shares of Common
Stock.  If any  shares of Common  Stock  remain  unpaid  solely by reason of the
foregoing  limitation,  then  such  shares  will  be  paid  to  you,  or to  the
beneficiary you designate, on _________, _____.

     6. All shares of Common Stock,  together with any shares representing stock
dividends thereon, will be distributed in the form of Common Stock. One share of
Common  Stock  will  be  paid  for  each  share  earned  and  payable.  Payments
representing  accumulated  cash  dividends or cash  distributions  (and earnings
thereon) will be made in cash. Other asset  distributions  payable on the shares
of Common Stock awarded will be paid in the form of such  distributions,  to the
extent  feasible.  The  trustee  of the Plan may  withhold  from any  payment or
distribution made under the Plan sufficient  amounts of cash or shares of Common
Stock to cover any  applicable  withholding  and  employment  taxes,  and if the
amount of such  payment is  insufficient,  the  trustee  may  require you or the
beneficiary  you  designate  to pay to the  trustee  the amount  required  to be
withheld as a condition of  delivering  the shares  earned and payable under the
Plan. Alternatively, you may pay to the trustee that amount of cash necessary to
be withheld  in taxes in lieu of any  withholding  of  payments or  distribution
under the Plan. If you elect to have such taxes withheld, then the election must
be made in compliance with Rule 16b-3, to the extent applicable.

     7. This award is subject to all the terms, provisions and conditions of the
Plan, which is incorporated herein by reference,  and to such regulations as may
from  time to time be  adopted  by the  Committee.  A copy of the  Plan has been
furnished  to you and an  additional  copy may be  obtained  from the  Financial
Institution. In the event of any conflict between the provisions of the Plan and
the provisions of this letter, the terms,  conditions and provisions of the Plan
will control, and this letter will be deemed to be modified accordingly.

                                    Very truly yours,

                                    RIVER VALLEY BANCORP

                                    By:
                                       -----------------------------------------
                                       Matthew P. Forrester, President and Chief
                                       Executive Officer

I acknowledge Receipt of
a copy of this Award Notification

------------------------------------

Dated:
      ------------------------------EXHIBIT 10(12)

                              EMPLOYMENT AGREEMENT

     This Agreement, made and dated as of August 2, 2004, by and between Lincoln
Bank, a federal  savings bank  ("Employer"),  and Jerry R. Engle,  a resident of
Johnson County, Indiana ("Employee").

                               W I T N E S S E T H

     WHEREAS,  Employee is employed by Employer as its Executive  Vice President
and  Chief  Operating  Officer  and  has  made  valuable  contributions  to  the
profitability and financial strength of Employer;

     WHEREAS,  Employer  desires  to  encourage  Employee  to  continue  to make
valuable  contributions  to Employer's  business  operations  and not to seek or
accept employment elsewhere;

     WHEREAS,  Employee  desires to be assured of a secure minimum  compensation
from Employer for his services over a defined term;

     WHEREAS,  Employer desires to assure the continued  services of Employee on
behalf of Employer on an objective and impartial  basis and without  distraction
or  conflict  of  interest  in the event of an  attempt  by any person to obtain
control of Employer or Lincoln  Bancorp  (the  "Holding  Company"),  the Indiana
corporation  which  owns all of the  issued  and  outstanding  capital  stock of
Employer;

     WHEREAS,  Employer  recognizes that when faced with a proposal for a change
of control of Employer or the Holding Company,  Employee will have a significant
role in helping the Boards of  Directors  assess the options  and  advising  the
Boards of  Directors on what is in the best  interests of Employer,  the Holding
Company,  and its  shareholders,  and it is necessary for Employee to be able to
provide this advice and counsel without being influenced by the uncertainties of
his own situation;

     WHEREAS,  Employer  desires  to provide  fair and  reasonable  benefits  to
Employee on the terms and subject to the conditions set forth in this Agreement;

     WHEREAS,   Employer  desires  reasonable  protection  of  its  confidential
business  and  customer  information  which it has  developed  over the years at
substantial  expense and assurance  that Employee will not compete with Employer
for a  reasonable  period  of time  after  termination  of his  employment  with
Employer, except as otherwise provided herein.

     NOW,  THEREFORE,  in consideration of these premises,  the mutual covenants
and undertakings  herein  contained and the continued  employment of Employee by
Employer as its Executive Vice President and Chief Operating  Officer,  Employer
and Employee, each intending to be legally bound, covenant and agree as follows:

     1.  Upon  the  terms  and  subject  to the  conditions  set  forth  in this
Agreement,  Employer  employs Employee as its Executive Vice President and Chief
Operating Officer, and Employee accepts such employment.

                                        1
<PAGE>

     2. Employee agrees to serve as Executive Vice President and Chief Operating
Officer  of  Employer  and to  perform  such  duties  in  those  offices  as may
reasonably  be  assigned  to him by  Employer's  Board of  Directors;  provided,
however,  that such duties shall be performed in or from the offices of Employer
currently located at Greenwood,  Indiana,  and shall be of the same character as
those previously performed by Employee and generally associated with the offices
held by Employee.  Employee shall render  services to Employer as Executive Vice
President  and Chief  Operating  Officer of Employer in  substantially  the same
manner and to substantially the same extent as Employee rendered his services to
First Bank before the date hereof.  While  employed by Employer,  Employee shall
devote  substantially  all his business time and efforts to Employer's  business
during  regular  business  hours  and shall  not  engage  in any  other  related
business.

     3. It is anticipated that Employee shall be appointed to serve as President
and Chief Executive Officer of Employer no later than December 31, 2005.

     4. During the term of this Agreement,  Employer shall nominate the Employee
to successive  terms as a member of Employer's  Board of Directors and shall use
its best efforts to elect and re-elect Employee as a member of such Board and to
cause  Employee to be nominated,  elected and  re-elected as a member of Holding
Company's Board of Directors. Employee shall receive additional compensation and
benefits as are  provided  from time to time to any other  member of  Employer's
Board  of  Directors  who is also  an  officer  of  Employer,  but the  Employee
acknowledges that currently there is no such additional  compensation being paid
and that there may never be any such additional compensation.

     5. The term of this Agreement  shall begin on the date set forth above (the
"Effective  Date") and shall end on the date which is three years following such
date; provided,  however, that such term shall be extended  automatically for an
additional year on each anniversary of the Effective Date if Employer's Board of
Directors  determines by resolution that the performance of the Employee has met
the  Board's  requirements  and  standards  and that  this  Agreement  should be
extended prior to such  anniversary of the Effective  Date,  unless either party
hereto gives  written  notice to the other party not to so extend  within ninety
(90)  days  prior  to such  anniversary,  in  which  case no  further  automatic
extension  shall  occur  and the  term of this  Agreement  shall  end two  years
subsequent  to the  anniversary  as of which the  notice  not to  extend  for an
additional  year is given (such term,  including  any  extension  thereof  shall
herein be referred to as the "Term").  Notwithstanding  the foregoing,  the Term
may end earlier upon the occurrence of any event described in Section 9.

     In  the  event  of  termination  pursuant  to  Section  5,  subject  to the
occurrence of another event  described in Section 9,  compensation  provided for
herein  (including  Base  Compensation)  shall continue to be paid, and Employee
shall  continue  to  participate  in  the  employee  benefit,   retirement,  and
compensation  plans and other  perquisites  as  provided  in Sections 6, 7 and 8
hereof  through and until the end of the  remaining  two years of the Term.  Any
benefits payable under insurance, health, retirement and bonus plans as a result
of Employee's  participation  in such plans through such date shall be paid when
due under those plans.

     6.   Employee   shall   receive  an  annual   salary  of  $185,000   ("Base
Compensation") payable at regular intervals in accordance with Employer's normal
payroll practices now or

                                       2
<PAGE>

hereafter  in  effect.  Employer  may  consider  and  declare  from time to time
increases  in the salary it pays  Employee  and  thereby  increases  in his Base
Compensation.  Prior to a Change of Control, Employer may also declare decreases
in the  salary  it pays  Employee  if the  operating  results  of  Employer  are
significantly  less favorable than those for the fiscal year ending December 31,
2004,  and  Employer  makes  similar  decreases  in the  salary it pays to other
executive  officers  of  Employer.  After a Change in  Control,  Employer  shall
consider and declare salary increases based upon the following standards:

          Inflation;

          Adjustments to the salaries of other senior management personnel; and

          Past performance of Employee and the contribution which Employee makes
          to the business and profits of Employer during the Term.

Any and all increases or decreases in Employee's salary pursuant to this Section
shall cause the level of Base  Compensation  to be increased or decreased by the
amount of each such  increase or decrease  for purposes of this  Agreement.  The
increased or decreased  level of Base  Compensation  as provided in this Section
shall  become the level of Base  Compensation  for the  remainder of the Term of
this  Agreement  until  there  is  a  further   increase  or  decrease  in  Base
Compensation as provided herein.

     7. So long as Employee is employed by Employer  pursuant to this Agreement,
he shall be  included  as a  participant  in all  present  and  future  employee
benefit, retirement, and compensation plans available to any management employee
of  Employer,  consistent  with  his  Base  Compensation  and his  positions  as
Executive Vice  President and Chief  Operating  Officer of Employer,  including,
without  limitation,  Employer's or the Holding  Company's  pension plan, 401(k)
plan,  Stock Option Plan,  Recognition  and Retention  Plan and Trust,  Employee
Stock Ownership Plan, and  hospitalization,  disability and group life insurance
plans,  each of which  Employer  agrees to  continue  in effect on terms no less
favorable than those  currently in effect as of the date hereof (as permitted by
law) during the Term of this  Agreement  unless prior to a Change of Control the
operating  results of Employer are  significantly  less favorable than those for
the fiscal year ending  December 31, 2004,  and unless (either before or after a
Change of Control)  changes in the  accounting,  legal, or tax treatment of such
plans would adversely affect Employer's operating results or financial condition
in a material way, and the Board of Directors of Employer or the Holding Company
concludes that modifications to such plans need to be made to avoid such adverse
effects.  However,  Employer may freeze or terminate the Lincoln Bank  Financial
Institutions Retirement Fund without violating its obligations contained in this
Agreement,  nor shall  Employer be  obligated to provide a  replacement  plan or
benefit of equivalent value.

     In addition to the foregoing,  a  nonqualified  stock option for a total of
seventy  thousand  (70,000)  shares of Common Stock of Lincoln  Bancorp shall be
granted to  Employee as of the  Effective  Date.  The option  price shall be one
hundred percent (100%) of the fair market value of one (1) share of Common Stock
of Lincoln Bancorp as of the Effective Date as determined

                                       3
<PAGE>

in accordance with the Lincoln Bancorp Stock Option Plan, such option may not be
exercised more than ten (10) years from the date of this grant,  and such option
shall  otherwise be subject in all respects to the terms and  conditions  of the
Lincoln Bancorp Stock Option Plan.

     8. So long as Employee is employed by Employer  pursuant to this Agreement,
Employee shall receive  reimbursement from Employer for all reasonable  business
expenses  incurred in the course of his employment by Employer,  upon submission
to Employer of written vouchers and statements for reimbursement. Employee shall
attend,  upon  the  prior  approval  of  Employer's  Board of  Directors,  those
professional  meetings,  conventions,  and/or  similar  functions  that he deems
appropriate and useful for purposes of keeping  abreast of current  developments
in the industry and/or promoting the interests of Employer.  So long as Employee
is employed by Employer pursuant to the terms of this Agreement,  Employer shall
continue in effect  vacation  policies  applicable to Employee no less favorable
from his point of view than those  written  vacation  policies  in effect on the
date  hereof.  So long as Employee  is  employed  by  Employer  pursuant to this
Agreement,  Employee shall be entitled to office space and working conditions no
less favorable than were in effect for him on the date hereof.

     9.  Subject  to the  respective  continuing  obligations  of  the  parties,
including but not limited to those set forth in subsections 11(A),  11(B), 11(C)
and 11(D) hereof,  Employee's  employment by Employer may be terminated prior to
the expiration of the Term of this Agreement as follows:

          (A)  Employer,  by action of its Board of  Directors  and upon written
     notice to Employee,  may  terminate  Employee's  employment  with  Employer
     immediately for cause. For purposes of this subsection 9(A),  "cause" shall
     be defined as (i) personal  dishonesty,  (ii)  incompetence,  (iii) willful
     misconduct,  (iv) breach of fiduciary duty involving  personal profit,  (v)
     intentional failure to perform stated duties, (vi) willful violation of any
     law,  rule,  or  regulation  (other  than  traffic  violations  or  similar
     offenses) or final cease-and-desist  order, or (vii) any material breach of
     any provision of this Agreement.

          (B)  Employer,  by  action  of its Board of  Directors  may  terminate
     Employee's  employment with Employer  without cause at any time;  provided,
     however,  that the  "date  of  termination"  for  purposes  of  determining
     benefits  payable to Employee  under  subsection  10(B) hereof shall be the
     date  which is 60 days  after  Employee  receives  written  notice  of such
     termination.

          (C)  Employee,  by  written  notice to  Employer,  may  terminate  his
     employment  with  Employer  immediately  for cause.  For  purposes  of this
     subsection  9(C),  "cause" shall be defined as (i) any action by Employer's
     Board of Directors to remove the  Employee as Executive  Vice  President or
     Chief Operating Officer of Employer,  except for title changes contemplated
     by this  Agreement  and other  promotions,  if any,  and  except  where the
     Employer's  Board of Directors  properly acts to remove  Employee from such
     office for "cause" as defined in subsection 9(A) hereof, (ii) any action by
     Employer's  Board of Directors to  materially  limit,  increase,  or modify
     Employee's  duties and/or  authority as Executive  Vice President and Chief
     Operating Officer of Employer,

                                       4
<PAGE>

     except for changes  commensurate  with title changes  contemplated  by this
     Agreement  or other  promotions,  if any,  (iii) any failure of Employer to
     obtain the  assumption of the  obligation to perform this  Agreement by any
     successor  or  the  reaffirmation  of  such  obligation  by  Employer,   as
     contemplated in Section 22 hereof;  (iv) Holding  Company's  failure to use
     its best efforts to cause  Employer to convert from a federal  savings bank
     to an  Indiana  commercial  state  bank no later  than one year  after  the
     Effective Time; or (v) any material breach by Employer of a term, condition
     or covenant of this Agreement.  Employer's  failure to appoint  Employee to
     serve as President  and Chief  Executive  Officer of Employer no later than
     December 31, 2005 shall not constitute a material breach of this Agreement.

          (D)  Employee,  upon sixty (60) days written  notice to Employer,  may
     terminate his employment with Employer without cause.

          (E) Employee's  employment  with Employer shall terminate in the event
     of Employee's death or disability. For purposes hereof,  "disability" shall
     be defined as Employee's  inability by reason of illness or other  physical
     or mental  incapacity to perform the duties  required by his employment for
     any consecutive  One Hundred Eighty (180) day period,  provided that notice
     of any  termination by Employer  because of Employee's  "disability"  shall
     have been  given to  Employee  prior to the full  resumption  by him of the
     performance of such duties.

     10. In the event of  termination  of  Employee's  employment  with Employer
pursuant to Section 9 hereof, compensation shall continue to be paid by Employer
to Employee as follows:

          (A) In the event of termination  pursuant to subsection  9(A) or 9(D),
     compensation  provided  for  herein  (including  Base  Compensation)  shall
     continue to be paid,  and Employee  shall  continue to  participate  in the
     employee benefit,  retirement, and compensation plans and other perquisites
     as provided in Sections 6, 7 and 8 hereof,  through the date of termination
     specified  in  the  notice  of  termination.  Any  benefits  payable  under
     insurance,  health,  retirement  and bonus plans as a result of  Employee's
     participation  in such plans through such date shall be paid when due under
     those plans. The date of termination specified in any notice of termination
     pursuant to subsection 9(A) shall be no later than the last business day of
     the month in which such notice is provided to Employee.

          (B) In the event of termination  pursuant to subsection  9(B) or 9(C),
     compensation  provided  for  herein  (including  Base  Compensation)  shall
     continue to be paid,  and Employee  shall  continue to  participate  in the
     employee benefit,  retirement, and compensation plans and other perquisites
     as provided in Sections 6, 7 and 8 hereof,  through the date of termination
     specified  in  the  notice  of  termination.  Any  benefits  payable  under
     insurance,  health,  retirement  and bonus plans as a result of  Employee's
     participation  in such plans through such date shall be paid when due under
     those plans. In addition, Employee shall be entitled to continue to receive
     from Employer his Base  Compensation  at the rates in effect at the time of
     termination (1) for three  additional  l2-month  periods if the termination

                                       5
<PAGE>

     follows a Change of Control or (2) for the remaining Term of the Agreement,
     but not less than six (6)  months,  if the  termination  does not  follow a
     Change of Control. In addition, during such periods and except as otherwise
     specifically  provided  herein,  Employer  will  maintain in full force and
     effect for the continued  benefit of Employee each employee welfare benefit
     plan and each employee  pension  benefit plan (as such terms are defined in
     the Employee  Retirement  Income Security Act of 1974, as amended) in which
     Employee was entitled to participate  immediately  prior to the date of his
     termination unless an essentially  equivalent and no less favorable benefit
     is  provided by a  subsequent  employer  of  Employee.  If the terms of any
     employee  welfare benefit plan or employee pension benefit plan of Employer
     do not permit continued participation by Employee, Employer will arrange to
     provide  to  Employee  a  benefit  substantially  similar  to,  and no less
     favorable  than,  the benefit he was entitled to receive under such plan at
     the end of the  period of  coverage.  For  purposes  of this  Agreement,  a
     "Change of Control"  shall mean an  acquisition of "control" of the Holding
     Company or of Employer within the meaning of 12 C.F.R.  ss.574.4(a)  (other
     than a change  of  control  resulting  from a  trustee  or other  fiduciary
     holding  shares of  Common  Stock  under an  employee  benefit  plan of the
     Holding Company or any of its  subsidiaries).  Notwithstanding  anything to
     the contrary in the foregoing,  any benefits  payable under this subsection
     8(B) shall be subject to the limitations on severance benefits set forth in
     Section  310 of the OTS  Thrift  Activities  Bulletin,  as in effect on the
     Effective Date.

          (C)  In  the  event  of  termination   pursuant  to  subsection  9(E),
     compensation  provided  for  herein  (including  Base  Compensation)  shall
     continue to be paid,  and Employee  shall  continue to  participate  in the
     employee benefit,  retirement, and compensation plans and other perquisites
     as provided in Sections 6, 7 and 8 hereof,  (i) in the event of  Employee's
     death,  through  the date of  death,  or (ii) in the  event  of  Employee's
     disability,  through the date of proper notice of disability as required by
     subsection 9(E). Any benefits payable under insurance,  health,  retirement
     and  bonus  plans as a result of  Employer's  participation  in such  plans
     through such date shall be paid when due under those plans.

          (D) Employer will permit Employee or his personal representative(s) or
     heirs, during a period of three months following Employee's  termination of
     employment by Employer for the reasons set forth in  subsections  9(B), (C)
     or (E),  if such  termination  follows  a Change  of  Control,  to  require
     Employer,  upon written request,  to purchase all outstanding stock options
     previously  granted to Employee under any Holding Company stock option plan
     then in effect  whether or not such options are then  exercisable at a cash
     purchase  price  equal to the amount by which the  aggregate  "fair  market
     value" of the shares subject to such options  exceeds the aggregate  option
     price for such  shares.  For  purposes  of this  Agreement,  the term "fair
     market value" shall mean the higher of (1) the average of the highest asked
     prices  for  Holding  Company  shares  in the  over-the-counter  market  as
     reported  on the NASDAQ  system if the shares are traded on such system for
     the 30 business days  preceding  such  termination,  or (2) the average per
     share  price  actually  paid for the most  highly  priced 1% of the Holding
     Company

                                       6
<PAGE>

     shares  acquired  in  connection  with the Change of Control of the Holding
     Company by any person or group acquiring such control.

     11. In order to induce  Employer  to enter  into this  Agreement,  Employee
hereby agrees as follows:

          (A) While  Employee is employed by Employer  and for a period of three
     years after  termination of such employment,  Employee shall not divulge or
     furnish  any trade  secrets  (as  defined  in IND.  CODE ss.  24-2-3-2)  of
     Employer or any confidential  information acquired by him while employed by
     Employer  concerning  the  policies,  plans,  procedures  or  customers  of
     Employer to any person,  firm or  corporation,  other than Employer or upon
     its  written  request,  or  use  any  such  trade  secret  or  confidential
     information  directly or indirectly  for  Employee's own benefit or for the
     benefit of any person, firm or corporation other than Employer,  since such
     trade secrets and  confidential  information are  confidential and shall at
     all times remain the property of Employer.

          (B)  For a  period  of  two  years  after  termination  of  Employee's
     employment   by  Employer  for  reasons  other  than  those  set  forth  in
     subsections  9(B) or (C) of this Agreement,  Employee shall not directly or
     indirectly  provide  banking or  bank-related  services  to or solicit  the
     banking or bank-related business of any customer of Employer at the time of
     such provision of services or  solicitation  which  Employee  served either
     alone or with others while employed by Employer in any city, town, borough,
     township,  village or other place in which Employee  performed services for
     Employer while employed by it, or assist any actual or potential competitor
     of Employer to provide banking or  bank-related  services to or solicit any
     such  customer's  banking  or  bank-related  business  in any  such  place.
     Notwithstanding   the  foregoing,   the  period  for  application  of  this
     restriction  in  subsection  11(B)  shall be reduced  from two years to six
     months following termination of Employee's employment:  (i) in the event of
     termination  under Section 5 if Employer  provides the notice not to extend
     for an  additional  year or (ii) if Employer  fails to appoint  Employee as
     President and Chief Executive Officer of Employer by December 31, 2005.

          (C) While  Employee is  employed  by Employer  and for a period of one
     year after  termination  of  Employee's  employment by Employer for reasons
     other than those set forth in  subsections  9(B) or (C) of this  Agreement,
     Employee  shall not,  directly  or  indirectly,  as  principal,  agent,  or
     trustee,  or through  the  agency of any  corporation,  partnership,  trade
     association,  agent  or  agency,  engage  in any  banking  or  bank-related
     business which  competes with the business of Employer as conducted  during
     Employee's  employment by Employer if Employee's  office with the competing
     business  is  within a  radius  of  twenty-five  (25)  miles of  Employer's
     Greenwood  office or  within  twenty-five  (25)  miles of  Employer's  main
     office.  (Notwithstanding  the  foregoing,  ownership  of less than 2% of a
     class of publicly held securities in any corporation  shall not violate the
     provisions  of  this  subsection  (C).)  Furthermore,  notwithstanding  the
     foregoing,  the period for  application  of this  restriction in subsection
     11(C) shall be reduced from one year

                                       7
<PAGE>

     to six months following  termination of Employee's  employment:  (i) in the
     event of termination under Section 5 if Employer provides the notice not to
     extend for an additional year or (ii) if Employer fails to appoint Employee
     as President and Chief Executive Officer of Employer by December 31, 2005.

          (D) If Employee's  employment by Employer is terminated  hereunder for
     any reason,  Employee will turn over immediately thereafter to Employer all
     business  correspondence,   letters,  papers,  reports,  customers'  lists,
     financial statements,  credit reports or other confidential  information or
     documents of Employer or its  affiliates  in the  possession  or control of
     Employee,  all of which  writings are and will  continue to be the sole and
     exclusive property of Employer or its affiliates.

If  Employee's  employment  by  Employer is  terminated  during the Term of this
Agreement for reasons set forth in  subsections  9(B) or (C) of this  Agreement,
Employee   shall  have  no   obligations   to  Employer   with  respect  to  the
noncompetition provisions under this Section 11.

     12. Any termination of Employee's  employment with Employer as contemplated
by Section 9 hereof,  except in the circumstances of Employee's death,  shall be
communicated by written "Notice of Termination" by the terminating  party to the
other party hereto.  Any "Notice of Termination"  pursuant to subsections  9(A),
9(C) or 9(E) shall  indicate the specific  provisions of this  Agreement  relied
upon and shall  set  forth in  reasonable  detail  the  facts and  circumstances
claimed to provide a basis for such termination.

     13.  If  Employee  is  suspended   and/or   temporarily   prohibited   from
participating  in the conduct of  Employer's  affairs by a notice  served  under
section  8(e)(3) or (g)(1) of the Federal Deposit  Insurance Act (12 U.S.C.  ss.
1818(e)(3) or (g)(1)),  Employer's  obligations  under this  Agreement  shall be
suspended as of the date of service,  unless stayed by appropriate  proceedings.
If the charges in the notice are dismissed,  Employer shall (i) pay Employee all
or part of the compensation  withheld while its obligations under this Agreement
were suspended and (ii)  reinstate (in whole or in part) any of its  obligations
which were suspended.

     14. If Employee is removed and/or permanently prohibited from participating
in the conduct of Employer's affairs by an order issued under section 8(e)(4) or
(g)(1) of the  Federal  Deposit  Insurance  Act (12  U.S.C.  ss.  1818(e)(4)  or
(g)(1)),  all obligations of Employer under this Agreement shall terminate as of
the  effective  date of the  order,  but  vested  rights of the  parties  to the
Agreement shall not be affected.

     15. If Employer is in default (as defined in section 3(x)(1) of the Federal
Deposit  Insurance Act), all obligations under this Agreement shall terminate as
of the date of default, but this provision shall not affect any vested rights of
Employer or Employee.

     16. All obligations  under this Agreement shall be terminated except to the
extent  determined  that the  continuation of the Agreement is necessary for the
continued  operation  of  Employer:  (i) by the Director of the Office of Thrift
Supervision  or his or her designee  (the  "Director"),  at the time the Federal
Deposit Insurance  Corporation enters into an agreement to provide assistance to
or on behalf of Employer  under the authority  contained in Section 13(c) of

                                       8
<PAGE>

the  Federal  Deposit  Insurance  Act;  or (ii) by the  Director at the time the
Director approves a supervisory  merger to resolve problems related to operation
of Employer or when  Employer is  determined  by the Director to be in an unsafe
and unsound  condition.  Any rights of the  parties  that have  already  vested,
however, shall not be affected by such action.

     17.  Anything in this  Agreement  to the contrary  notwithstanding,  in the
event that the  Employer's  independent  public  accountants  determine that any
payment by the Employer to or for the benefit of the  Employee,  whether paid or
payable pursuant to the terms of this Agreement,  would be non-deductible by the
Employer for federal income tax purposes because of Section 280G of the Internal
Revenue Code of 1986, as amended (the "Code"), then the amount payable to or for
the benefit of the Employee pursuant to this Agreement shall be reduced (but not
below zero) to the Reduced Amount. For purposes of this Section 17, the "Reduced
Amount" shall be the amount which  maximizes the amount payable  without causing
the payment to be  non-deductible by the Employer because of Section 280G of the
Code. Any payments made to Employee pursuant to this Agreement or otherwise, are
subject to and conditional upon their  compliance with 12 U.S.C.  ss.1828(k) and
FDIC  regulation  12  C.F.R.  Part 359  (Golden  Parachute  and  Indemnification
Payments)  and any  other  regulations  promulgated  thereunder,  to the  extent
applicable to such parties.

     18. If a dispute arises  regarding the termination of Employee  pursuant to
Section 9 hereof or as to the  interpretation  or  enforcement of this Agreement
and  Employee  obtains a final  judgment  in his  favor in a court of  competent
jurisdiction  or his claim is settled by Employer  prior to the  rendering  of a
judgment by such a court,  all  reasonable  legal fees and expenses  incurred by
Employee in contesting or disputing any such termination or seeking to obtain or
enforce  any  right or  benefit  provided  for in this  Agreement  or  otherwise
pursuing his claim shall be paid by Employer, to the extent permitted by law.

     19. Should  Employee die after  termination of his employment with Employer
while any amounts are payable to him hereunder,  this  Agreement  shall inure to
the  benefit of and be  enforceable  by  Employee's  executors,  administrators,
heirs,  distributees,  devisees and legatees and all amounts  payable  hereunder
shall be paid in  accordance  with the  terms of this  Agreement  to  Employee's
devisee,  legatee or other  designee  or, if there is no such  designee,  to his
estate.

     20. For purposes of this  Agreement,  notices and all other  communications
provided  for herein  shall be in writing and shall be deemed to have been given
when delivered or mailed by United States  registered or certified mail,  return
receipt requested, postage prepaid, addressed as follows:

         If to Employee:   Jerry R. Engle
                           345 South Oakwood Drive
                           Greenwood, IN 46142

         If to Employer:   Lincoln Bank
                           1121 E. Main Street
                           P.O. Box 510
                           Plainfield, Indiana   46168-0510

                                       9
<PAGE>

or to such address as either party hereto may have  furnished to the other party
in writing in  accordance  herewith,  except  that  notices of change of address
shall be effective only upon receipt.

     21. The validity,  interpretation,  and performance of this Agreement shall
be governed by the laws of the State of Indiana, except as otherwise required by
mandatory operation of federal law.

     22. Employer shall require any successor  (whether  direct or indirect,  by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business or assets of Employer, by agreement in form and substance  satisfactory
to Employee to expressly  assume and agree to perform this Agreement in the same
manner and same extent that Employer  would be required to perform it if no such
succession had taken place.  Failure of Employer to obtain such agreement  prior
to the  effectiveness  of any such  succession  shall be a material  intentional
breach of this Agreement and shall entitle  Employee to terminate his employment
with Employer  pursuant to subsection  9(C) hereof.  As used in this  Agreement,
"Employer" shall mean Employer as hereinbefore  defined and any successor to its
business or assets as aforesaid.

     23. No provision of this  Agreement  may be modified,  waived or discharged
unless such waiver,  modification or discharge is agreed to in writing signed by
Employee  and  Employer.  No waiver by  either  party  hereto at any time of any
breach by the other  party  hereto of, or  compliance  with,  any  condition  or
provision of this  Agreement to be performed by such other party shall be deemed
a waiver  of  dissimilar  provisions  or  conditions  at the  same or any  prior
subsequent time. No agreements or representations, oral or otherwise, express or
implied,  with  respect to the  subject  matter  hereof have been made by either
party which are not set forth expressly in this Agreement.

     24. The invalidity or  unenforceability of any provisions of this Agreement
shall not affect the validity or  enforceability of any other provisions of this
Agreement which shall remain in full force and effect.

     25. This  Agreement  may be executed in one or more  counterparts,  each of
which shall be deemed an original but all of which together shall constitute one
and the same agreement.

     26. This  Agreement is personal in nature and neither  party hereto  shall,
without consent of the other, assign or transfer this Agreement or any rights or
obligations  hereunder  except as  provided  in Section 19 and Section 22 above.
Without  limiting  the  foregoing,  Employee's  right  to  receive  compensation
hereunder shall not be assignable or transferable,  whether by pledge,  creation
of a security interest or otherwise, other than a transfer by his will or by the
laws of descent or  distribution  as set forth in Section 19 hereof,  and in the
event of any  attempted  assignment  or  transfer  contrary  to this  paragraph,
Employer  shall have no liability to pay any amounts so attempted to be assigned
or transferred.

     IN WITNESS  WHEREOF,  the parties have caused the  Agreement to be executed
and delivered as of the day and year first above set forth.

                                      LINCOLN BANK

                                      By: /s/ T. Tim Unger
                                         ---------------------------------------
                                          T. Tim Unger, President

                                      "Employer"

                                      /s/ Jerry R. Engle
                                      ------------------------------------------
                                      Jerry R. Engle

                                      "Employee"

     The undersigned, Lincoln Bancorp, sole shareholder of Employer, agrees that
if it shall be  determined  for any reason that any  obligations  on the part of
Employer to continue to make any payments  due under this  Agreement to Employee
is unenforceable for any reason,  Lincoln Bancorp,  agrees to honor the terms of
this  Agreement and continue to make any such payments due hereunder to Employee
pursuant to the terms of this Agreement.

     During  Employee's  active  employment by Employer,  Lincoln  Bancorp shall
nominate  Employee to successive terms as a member of Lincoln Bancorp's Board of
Directors and as Lincoln Bancorp's Vice Chairman.  Lincoln Bancorp shall use its
best efforts to elect and  re-elect  Employee as a member of such Board and Vice
Chairman.  While  serving  as the Vice  Chairman  of  Lincoln  Bancorp  and as a
director of Lincoln Bancorp, Employee shall be entitled to the same benefits and
compensation  for  services  as  provided  to the  Chairman  and other  employee
directors of Lincoln Bancorp.

     Furthermore,  it is anticipated  that  following  retirement of the current
President and Chief Executive Officer of Lincoln Bancorp, Employee shall then be
appointed to the positions of President and Chief  Executive  Officer of Lincoln
Bancorp.

                                      LINCOLN BANCORP

                                      By: /s/ T. Tim Unger
                                         ---------------------------------------
                                         T. Tim Unger, President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]