Document:

Exhibit 10.7
       Deferred Compensation Agreement dated as of June 25, 1996 between
                Lawrence Federal Savings Bank and Jack L. Blair

<PAGE>

                          LAWRENCE FEDERAL SAVINGS BANK

                         DEFERRED COMPENSATION AGREEMENT

<PAGE>

                          LAWRENCE FEDERAL SAVINGS BANK

                         DEFERRED COMPENSATION AGREEMENT

     THIS AGREEMENT is made this 25th day of June, 1996 by and between  LAWRENCE
FEDERAL SAVINGS BANK (the "Company"), and JACK L. BLAIR (the "Executive").

                                  INTRODUCTION

     To  encourage  the  Executive  to remain an  employee of the  Company,  the
Company  is  willing  to  provide  to  the  Executive  a  deferred  compensation
opportunity. The Company will pay the benefits from its general assets.

                                    AGREEMENT

     The Executive and the Company agree as follows:

                                    Article 1

                                   Definitions

     1.1  Definitions.  Whenever used in this Agreement, the following words and
phrases shall have the meanings specified:

          1.1.1  "Change of  Control"  means the  transfer of 51% or more of the
     Company's  outstanding  voting  common stock  followed  within  twelve (12)
     months by the Executive's  Termination of Employment for reasons other than
     death, disability or retirement.

          1.1.2  "Code" means the  Internal  Revenue  Code of 1986,  as amended.
     References  to a Code  section  shall be deemed to be to that section as it
     now exists and to any successor provision.

          1.1.3 "Compensation" means the total annual base salary payable to the
     Executive.

          1.1.4   "Disability"   means,   if  the  Executive  is  covered  by  a
     Company-sponsored  disability insurance policy, total disability as defined
     in such policy  without regard to any waiting  period.  If the Executive is
     not covered by such a policy,  Disability  means the Executive  suffering a
     sickness,  accident  or  injury  which,  in  the  judgment  of a  physician
     satisfactory  to  the  Company,  prevents  the  Executive  from  performing
     substantially  all of the Executive's  normal duties for the Company.  As a
     condition to any benefits, the Company

                                        1

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     may require the Executive to submit to such physical or mental  evaluations
     and tests as the Company's Board of Directors deems appropriate.

          1.1.5  "Early  Retirement  Date"  means the  Executive  attaining  age
     sixty-two (62).

          1.1.6  "Election Form" means the Form attached as Exhibit 1.

          1.1.7  "Normal  Retirement  Date" means the  Executive  attaining  age
     sixty-five (65).

          1.1.8  "Termination of Employment" means the Executive's ceasing to be
     employed  by  the  Company  for  any  reason   whatsoever,   voluntary   or
     involuntary, other than by reason of an approved leave of absence.

          1.1.9  "Years  of  Service"  means the  total  number of  twelve-month
     periods during which the Executive is employed on a full-time  basis by the
     Company, inclusive of any approved leaves of absence.

                                    Article 2

                                Deferral Election

     2.1 Initial Election. The Executive shall make an initial deferral election
under this Agreement by filing with the Company a signed Election Form within 30
days after the date of this  Agreement.  The  Election  Form shall set forth the
amount of  Compensation  to be  deferred  and the form of benefit  payment.  The
Election  Form shall be  effective to defer only  Compensation  earned after the
date the Election Form is received by the Company.

     2.2 Election Changes

          2.2.1  Generally.  The Executive may modify the amount of Compensation
     to be  deferred  by  filing a  subsequent  signed  Election  Form  with the
     Company.  The modified  deferral shall not be effective  until the calendar
     year following the year in which the  subsequent  Election Form is received
     by the Company.  The Executive  may not change the form of benefit  payment
     initially elected under Section 2.1.

          2.2.2  Hardship.  If an unforeseeable financial emergency arising from
     the death of a family member,  divorce,  sickness,  injury,  catastrophe or
     similar event outside the control of the Executive  occurs,  the Executive,
     by written  instructions  to the Company may reduce future  deferrals under
     this Agreement or may cease deferrals under this Agreement.

                                        2

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                                    Article 3

                                Deferral Account

     3.1  Establishing  and  Crediting.  The Company shall  establish a Deferral
Account on its books for the Executive, and shall credit to the Deferral Account
the following amounts:

          3.1.1 Deferrals. The Compensation deferred by the Executive, as of the
     time such amounts would have otherwise been paid to the Executive.

          3.1.2  Interest.  On the first day of each month and immediately prior
     to the payment of any benefits,  interest on the account  balance since the
     preceding  credit  under this  Section  3.1.2,  if any, at an annual  rate,
     compounded monthly,  equal to the rate determined by the Company's Board of
     Directors, in its sole discretion.

     3.2  Statement of Accounts.  The Company  shall  provide to the  Executive,
within one hundred twenty (120) days after each anniversary of this Agreement, a
statement setting forth the Deferral Account balance.

     3.3  Accounting  Device Only.  The Deferral  Account is solely a device for
measuring amounts to be paid under this Agreement. The Deferral Account is not a
trust fund of any kind.  The  Executive is a general  unsecured  creditor of the
Company for the payment of  benefits.  The benefits  represent  the mere Company
promise to pay such  benefits.  The  Executive's  rights are not  subject in any
manner  to  anticipation,   alienation,  sale,  transfer,   assignment,  pledge,
encumbrance, attachment, or garnishment by the Executive's creditors.

                                    Article 4

                                Lifetime Benefits

     4.1 Normal Retirement Benefit. If the Executive terminates employment on or
after the Normal Retirement Date for reasons other than death, the Company shall
pay to the Executive the benefit described in this Section 4.1.

          4.1.1  Amount of Benefit.  The benefit  under this  Section 4.1 is the
     Deferral Account balance at the Executive's Termination of Employment.

          4.1.2  Payment of Benefit.  The  Company  shall pay the benefit to the
     Executive in the form elected by the  Executive on the Election  Form.  The
     Company shall continue to credit interest under Section 3.1.2.

     4.2 Early Retirement Benefit. If the Executive terminates  employment after
the Early Retirement Date but before the Normal Retirement Date, and for reasons
other than death or

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Disability, the Company shall pay to the Executive the benefit described in this
Section 4.2.

          4.2.1  Amount of Benefit.  The benefit  under this  Section 4.2 is the
     Deferral Account balance at the Executive's Termination of Employment.

          4.2.2  Payment of Benefit.  The  Company  shall pay the benefit to the
     Executive in the form elected by the  Executive on the Election  Form.  The
     Company shall continue to credit interest under Section 3.1.2.

     4.3  Disability  Benefit.  If  the  Executive  terminates   employment  for
Disability  prior to the Normal  Retirement  Date,  the Company shall pay to the
Executive the benefit described in this Section 4.3.

          4.3.1  Amount of Benefit.  The benefit  under this  Section 4.3 is the
     Deferral Account balance at the Executive's Termination of Employment.

          4.3.2  Payment of Benefit.  The  Company  shall pay the benefit to the
     Executive in the form elected by the  Executive on the Election  Form.  The
     Company shall continue to credit interest under Section 3.1.2.

     4.4 Change of Control Benefit. Upon a Change of Control while the Executive
is in the active service of the Company,  the Company shall pay to the Executive
the benefit  described  in this Section 4.4 in lieu of any other  benefit  under
this Agreement.

          4.4.1  Amount of Benefit.  The benefit  under this  Section 4.4 is the
     Deferral  Account  balance at the date of the  Executive's  Termination  of
     Employment.

          4.4.2  Payment of Benefit.  The  Company  shall pay the benefit to the
     Executive  in a lump sum  within  sixty  (60) days  after  the  Executive's
     Termination of Employment.

     4.5  Hardship Distribution.  Upon the  Company's  determination  (following
petition by the  Executive)  that the  Executive  has suffered an  unforeseeable
financial  emergency as described in Section 2.2.2, the Company shall distribute
to the Executive all or a portion of the Deferral  Account balance as determined
by the  Company,  but in no event  shall the  distribution  be  greater  than is
necessary to relieve the financial hardship.

                                    Article 5

                                 Death Benefits

     5.1 Death During Active Service.  If the Executive dies while in the active
service of the Company, the Company shall pay to the Executive's beneficiary the
benefit described in this Section 5.1.

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<PAGE>

          5.1.1  Amount of  Benefit.  The benefit  under  Section 5.1 is $16,194
     annually in monthly installments for 20 years.

          5.1.2  Payment of Benefit.  The  Company  shall pay the benefit to the
     beneficiary  within thirty (30) days  following the  Executive's death. The
     Company shall continue to credit interest under Section 3.1.2.

     5.2  Death During  Benefit  Period.  If the  Executive  dies after  benefit
payments  have  commenced  under this  Agreement  but before  receiving all such
payments,  the  Company  shall pay the  remaining  benefits  to the  Executive's
beneficiary  at the same time and in the same  amounts they would have been paid
to the Executive had the Executive survived.

                                    Article 6

                                  Beneficiaries

     6.1  Beneficiary Designations.  The Executive shall designate a beneficiary
by filing a written  designation  with the Company.  The Executive may revoke or
modify  the  designation  at any  time by  filing  a new  designation.  However,
designations  will only be effective if signed by the  Executive and accepted by
the  Company  during  the  Executive's  lifetime.  The  Executive's  beneficiary
designation shall be deemed automatically revoked if the beneficiary predeceases
the  Executive,  or if the  Executive  names a  spouse  as  beneficiary  and the
marriage  is  subsequently  dissolved.  If the  Executive  dies  without a valid
beneficiary designation, all payments shall be made to the Executive's surviving
spouse,  if any,  and if none,  to the  Executive's  surviving  children and the
descendants of any deceased child by right of representation, and if no children
or descendants survive, to the Executive's estate.

     6.2  Facility of Payment.  If a benefit is payable to a minor,  to a person
declared  incompetent,  or to a person  incapable of handling the disposition of
his or her  property,  the Company may pay such benefit to the  guardian,  legal
representative  or person having the care or custody of such minor,  incompetent
person or  incapable  person.  The Company may  require  proof of  incompetency,
minority or guardianship as it may deem appropriate prior to distribution of the
benefit.  Such  distribution  shall  completely  discharge  the Company from all
liability with respect to such benefit.

                                    Article 7

                               General Limitations

     Notwithstanding  any  provision  of this  Agreement  to the  contrary,  the
Company shall not pay any benefit under this Agreement that is  attributable  to
the  Company's   matching   contributions   or  the  interest   earned  on  such
contributions:

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     7.1  Excess Parachute Payment. To the extent the benefit would be an excess
parachute payment under Section 280G of the Code.

     7.2  Termination  for Cause.  If the  Company  terminates  the  Executive's
employment for:

          7.2.1 Gross negligence or gross neglect of duties;

          7.2.2 Commission of a felony or of a gross misdemeanor involving moral
     turpitude; or

          7.2.3 Fraud, disloyalty, dishonesty or willful violation of any law or
     significant  Company policy  committed in connection  with the  Executive's
     employment and resulting in an adverse effect on the Company.

     7.3  Suicide.  If the Executive commits  suicide within two years after the
date of this Agreement,  or if the Executive has made any material  misstatement
of fact on any application for life insurance purchased by the Company.

                                    Article 8

                          Claims and Review Procedures

     8.1  Claims Procedure. The Company shall notify the Executive's beneficiary
in  writing,  within  ninety  (90) days of his or her  written  application  for
benefits,  of his or her  eligibility or  noneligibility  for benefits under the
Agreement.  If the Company  determines  that the beneficiary is not eligible for
benefits or full benefits,  the notice shall set forth (1) the specific  reasons
for such denial,  (2) a specific reference to the provisions of the Agreement on
which the denial is based,  (3) a description of any  additional  information or
material  necessary  for  the  claimant  to  perfect  his  or her  claim,  and a
description  of why it is  needed,  and (4) an  explanation  of the  Agreement's
claims review procedure and other appropriate  information as to the steps to be
taken if the  beneficiary  wishes to have the  claim  reviewed.  If the  Company
determines  that there are special  circumstances  requiring  additional time to
make a  decision,  the  Company  shall  notify the  beneficiary  of the  special
circumstances  and the date by which a decision is expected to be made,  and may
extend the time for up to an additional ninety-day period.

     8.2  Review Procedure.  If the beneficiary is determined by the Company not
to be eligible for benefits,  or if the  beneficiary  believes that he or she is
entitled  to greater  or  different  benefits,  the  beneficiary  shall have the
opportunity  to have such claim reviewed by the Company by filing a petition for
review  with the  Company  within  sixty (60) days  after  receipt of the notice
issued by the Company.  Said petition shall state the specific reasons which the
beneficiary  believes  entitle him or her to benefits or to greater or different
benefits.  Within sixty (60) days after  receipt by the Company of the petition,
the Company shall afford the beneficiary (and counsel, if any) an opportunity to
present  his or her  position  to the  Company  orally  or in  writing,  and the
beneficiary (or counsel) shall have the right to review the pertinent documents.
The Company shall notify the  beneficiary  of its decision in writing within the
sixty-day period, stating specifically the basis of its

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<PAGE>

decision, written in a manner calculated to be understood by the beneficiary and
the specific  provisions  of the  Agreement on which the decision is based.  If,
because of the need for a hearing,  the sixty-day period is not sufficient,  the
decision may be deferred for up to another  sixty-day  period at the election of
the Company, but notice of this deferral shall be given to the beneficiary.

                                    Article 9

                           Amendments and Termination

     The Company may amend or terminate  this Agreement at any time prior to the
Executive's  Termination of Employment by written notice to the Executive. In no
event shall this Agreement be terminated without payment to the Executive of the
Deferral Account balance attributable to the Executive's  deferrals and interest
credited on such amounts.

                                   Article 10

                                  Miscellaneous

     10.1  Binding  Effect.  This  Agreement  shall bind the  Executive  and the
Company,  and their  beneficiaries,  survivors,  executors,  administrators  and
transferees.

     10.2  No Guaranty of Employment. This Agreement is not an employment policy
or contract.  It does not give the  Executive the right to remain an employee of
the Company,  nor does it interfere  with the  Company's  right to discharge the
Executive.  It also does not require  the  Executive  to remain an employee  nor
interfere with the Executive's right to terminate employment at any time.

     10.3  Non-Transferability.  Benefits under this  Agreement  cannot be sold,
transferred, assigned, pledged, attached or encumbered in any manner.

     10.4  Tax Withholding.  The  Company  shall  withhold  any  taxes  that are
required to be withheld from the benefits provided under this Agreement.

     10.5  Applicable  Law.  The  Agreement  and all rights  hereunder  shall be
governed by the laws of OHIO,  except to the extent preempted by the laws of the
United States of America.

     10.6  Unfunded  Arrangement.  The  Executive  and  beneficiary  are general
unsecured  creditors  of the  Company  for the  payment of  benefits  under this
Agreement.  The benefits  represent  the mere promise by the Company to pay such
benefits.  The rights to benefits are not subject in any manner to anticipation,
alienation,  sale, transfer,  assignment,  pledge,  encumbrance,  attachment, or
garnishment  by creditors.  Any insurance on the  Executive's  life is a general
asset of the Company to which the Executive and beneficiary have no preferred or
secured claim.

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<PAGE>

IN WITNESS  WHEREOF,  the Executive and a duly  authorized  Company officer have
signed this Agreement.

EXECUTIVE:                              COMPANY:
                                        LAWRENCE FEDERAL SAVINGS BANK

/s/ Jack L. Blair                       By /s/ Herbert J. Karlet
---------------------------------       ---------------------------------
JACK L. BLAIR
                                        Title    President
                                                 ---------

                                        8Exhibit 10.8
      Form of Deferred Fee Agreement between Lawrence Federal Savings Bank
                            and individual directors

<PAGE>

                                                                    Exhibit 10.8

                         FORM OF DEFERRED FEE AGREEMENT

         The Deferred Fee Agreement  for the  directors of Lawrence  Federal are
substantially  same as the following Form of Deferred Fee Agreement except as to
the following material terms:

<TABLE>
<CAPTION>

Name of Signatory           Date of           Amount of           Amount of          Duration          Receipt of
                            Agreement         Death Benefit       Deferral         (Attached as         Payments
                                              under Section      (Attached as        Exhibit 1)        (Attached as
                                                 5.1.1            Exhibit 1)                            Exhibit 1)
-------------------------------------------------------------------------------------------------------------------
<S>                       <C>                <C>                <C>                 <C>                <C>
Tracy E. Brammer, Jr.        6/25/96          $17,336             $6,000 of           For 15            In equal
                                              annually in         Annual Fees         Years             monthly
                                              monthly                                                   installments
                                              installments
                                              for 20 years.
--------------------------------------------------------------------------------------------------------------------
Charles E. Austin, II        6/25/96          $40,825             $200 of             For 10            In a lump
                                              annually in         Annual Fees         Years             sum
                                              monthly
                                              installments
                                              for 20 years.
--------------------------------------------------------------------------------------------------------------------
Herbert J. Karlet            6/25/96          $35,973             $100 of             none              In a lump
                                              annually in         Annual Fees         specified         sum
                                              monthly
                                              installments
                                              for 20 years.
--------------------------------------------------------------------------------------------------------------------
Phillip O. McMahon           6/25/96          $72,489             $10,000 of          For 24            In equal
                                              annually in         Annual Fees         Years             monthly
                                              monthly                                                   installments
                                              installments
                                              for 20 years.
--------------------------------------------------------------------------------------------------------------------
Robert N. Taylor             6/25/96          $12,955             $5,200 of           For 15            In equal
                                              annually in         Annual Fees         Years             monthly
                                              monthly                                                   installments
                                              installments
                                              for 20 years.

</TABLE>

<PAGE>

                                     FORM OF

                          LAWRENCE FEDERAL SAVINGS BANK

                             DEFERRED FEE AGREEMENT

         THIS AGREEMENT is made thus ____ day of __________________, 199_ by and
between  LAWRENCE  FEDERAL  SAVINGS BANK (the  "Company"),  and [DIRECTOR]  (the
"Director").

                                  INTRODUCTION

         To encourage the Director to remain a member of the Company's  Board of
Directors,  the  Company is willing  to provide to the  Director a deferred  fee
opportunity. The Company will pay the benefits from its general assets.

                                    AGREEMENT

         The Director and the Company agree as follows:

                                    Article I

                                   Definitions

         1.1 Definitions.  Whenever used in this Agreement,  the following words
and phrases shall have the meanings specified:

              1.1.1 "Change of Control" means the transfer of 51% or more of the
Company's  outstanding voting common stock followed within twelve (12) months by
termination  of the  Director's  status  as a member of the  Company's  Board of
Directors.

              1.1.2 "Code" means the Internal  Revenue Code of 1986, as amended.
References  to a Code  section  shall be deemed to be to that  section as it now
exists and to any successor provision.

              1.1.3  "Disability"  means,  if  the  Director  is  covered  by  a
Company-sponsored  disability  insurance policy,  total disability as defined in
such policy without regard to any waiting period. If the Director is not covered
by such a policy,  Disability means the Director suffering a sickness,  accident
or injury  which,  in the judgment of a physician  satisfactory  to the Company,
prevents the Director from performing  substantially all of the normal duties of
a director. As a condition to any benefits, the Company may require the Director
to submit to such  physical  or mental  evaluations  and tests as the  Company's
Board of Directors deems appropriate.

              1.1.4 "Election Form" means the Form attached as Exhibit 1.

              1.1.5  "Fees"  means  the  total  directors  fees  payable  to the
Director.

              1.1.6 "Normal  Termination Date" means the Director  attaining age
sixty-eight (68).

              1.1.7  "Termination of Service" means the Director's ceasing to be
a member of the Company's Board of Directors for any reason whatsoever.

                                        1

<PAGE>

              1.1.8 "Years of Service"  means the total  number of  twelve-month
periods during which the Director  serves as a member of the Company's  Board of
Directors.

                                    Article 2

                                Deferral Election

         2.1  Initial  Election.  The  Director  shall make an initial  deferral
election under this Agreement by filing with the Company a signed  Election Form
within 30 days after the date of this  Agreement.  The  Election  Form shall set
forth the amount of Fees to be  deferred  and the form of benefit  payment.  The
Election  Form shall be  effective  to defer only Fees earned after the date the
Election Form is received by the Company.

         2.2 Election Changes

              2.2.1 Generally.  The Director may modify the amount of Fees to be
deferred by filing a  subsequent  signed  Election  Form with the  Company.  The
modified  deferral shall not be effective  until the calendar year following the
year in which the  subsequent  Election  Form is  received by the  Company.  The
Director  may not change the form of benefit  payment  initially  elected  under
Section 2.1.

              2.2.2 Hardship.  If an unforeseeable  financial  emergency arising
from the death of a family member,  divorce,  sickness,  injury,  catastrophe or
similar  event  outside the control of the Director  occurs,  the  Director,  by
written  instructions  to the Company,  may reduce future  deferrals  under this
Agreement or may cease deferrals under this Agreement.

                                    Article 3

                                Deferral Account

         3.1 Establishing and Crediting.  The Company shall establish a Deferral
Account on its books for the Director,  and shall credit to the Deferral Account
the following amounts:

              3.1.1 Deferrals.  The Fees deferred by the Director as of the time
the Fees would have otherwise been paid to the Director.

              3.1.2  Interest.  On the first day of each  month and  immediately
prior to the payment of any benefits,  interest on the account balance since the
preceding credit under this Section 3.1.2, if any, at an annual rate, compounded
monthly,  equal to the rate determined by the Company's  Board of Directors,  in
its sole discretion.

         3.2  Statement of Accounts.  The Company shall provide to the Director,
within one hundred twenty (120) days after each anniversary of this Agreement, a
statement setting forth the Deferral Account balance.

         3.3 Accounting Device Only. The Deferral Account is solely a device for
measuring amounts to be paid under this Agreement. The Deferral Account is not a
trust fund of any kind.  The  Director  is a general  unsecured  creditor of the
Company for the payment of  benefits.  The benefits  represent  the mere Company
promise to pay such  benefits.  The  Director's  rights  are not  subject in any
manner  to  anticipation,   alienation,  sale,  transfer,   assignment,  pledge,
encumbrance, attachment, or garnishment by the Director's creditors.

                                        2

<PAGE>

                                    Article 4

                                Lifetime Benefits

         4.1 Normal  Termination  Benefit.  Upon the  Director's  Termination of
Service,  the Company  shall pay to the Director  the benefit  described in this
Section 4.1.

              4.1.1 Amount of Benefit. The benefit under this Section 4.1 is the
Deferral Account balance at the Director's Termination of Service.

              4.1.2 Payment of Benefit. The Company shall pay the benefit to the
Director in the form elected by the Director on the Election  Form.  The Company
shall continue to credit interest under Section 3.1.2.

         4.2 Early Termination  Benefit. If the Director terminates service as a
director before the Normal Termination Date, and for reasons other than death or
Disability,  the Company shall pay to the Director the benefit described in this
Section 4.2.

              4.2.1 Amount of Benefit. The benefit under this Section 4.2 is the
Deferral Account balance at the Director's Termination of Service.

              4.2.2 Payment of Benefit. The Company shall pay the benefit to the
Director in the form elected by the Director on the Election  Form.  The Company
shall continue to credit interest under Section 3.1.2.

         4.3  Disability  Benefit.  If  the  Director  terminates  service  as a
director for Disability  prior to the Normal  Retirement Date, the Company shall
pay to the Director the benefit described in this Section 4.3.

              4.3.1 Amount of Benefit. The benefit under this Section 4.3 is the
Deferral Account balance at the Director's Termination of Service.

              4.3.2 Payment of Benefit. The Company shall pay the benefit to the
Director in the form elected by the Director on the Election  Form.  The Company
shall continue to credit interest under Section 3.1.2.

         4.4  Change of  Control  Benefit.  Upon a Change of  Control  while the
Director is in the active  service of the Company,  the Company shall pay to the
Director the benefit  described in this Section 4.4 in lieu of any other benefit
under this Agreement.

              4.4.1 Amount of Benefit. The benefit under this Section 4.4 is the
Deferral Account balance at the date of the Director's Termination of Service.

              4.4.2 Payment of Benefit. The Company shall pay the benefit to the
Director in a lump sum within sixty (60) days after the  Director's  Termination
of Service.

         4.5 Hardship Distribution.  Upon the Company's determination (following
petition by the  Director)  that the  Director  has  suffered  an  unforeseeable
financial  emergency as described in Section 2.2.2, the Company shall distribute
to the Director all or a portion of the Deferral  Account  balance as determined
by the  Company,  but in no event  shall the  distribution  be  greater  than is
necessary to relieve the financial hardship.

                                        3

<PAGE>

                                    Article 5

                                 Death Benefits

         5.1 Death During  Active  Service.  If the  Director  dies while in the
active  service  of the  Company,  the  Company  shall  pay  to  the  Director's
beneficiary the benefit described in this Section 5.1

              5.1.1 Amount of Benefit. The benefit under Section 5.1 is

                    [name of director]        [amount of benefit]

              5.1.2 Payment of Benefit. The Company shall pay the benefit to the
beneficiary  within thirty (30) days following the Director's death. The Company
shall continue to credit interest under Section 3.1.2.

         5.2 Death During  Benefit  Period.  If the Director  dies after benefit
payments  have  commenced  under this  Agreement  but before  receiving all such
payments,  the  Company  shall  pay the  remaining  benefits  to the  Director's
beneficiary  at the same time and in the same  amounts they would have been paid
to the Director had the Director survived.

                                    Article 6

                                  Beneficiaries

         6.1   Beneficiary   Designations.   The  Director  shall   designate  a
beneficiary by filing a written  designation with the Company.  The Director may
revoke  or  modify  the  designation  at any time by  filing a new  designation.
However,  designations  will only be  effective  if signed by the  Director  and
accepted  by  the  Company  during  the  Director's  lifetime.   The  Director's
beneficiary designation shall be deemed automatically revoked if the beneficiary
predeceases  the Director,  or if the Director names a spouse as beneficiary and
the marriage is  subsequently  dissolved.  If the Director  dies without a valid
beneficiary designation,  all payments shall be made to the Director's surviving
spouse,  if any,  and if none,  to the  Director's  surviving  children  and the
descendants of any deceased child by right of representation, and if no children
or descendants survive, to the Director's estate.

         6.2  Facility  of  Payment.  If a benefit is  payable to a minor,  to a
person  declared  incompetent,   or  to  a  person  incapable  of  handling  the
disposition  of his or her  property,  the Company  may pay such  benefit to the
guardian,  legal  representative  or person  having  the care or custody of such
minor,  incompetent person or incapable person. The Company may require proof of
incompetency,  minority  or  guardianship  as it may deem  appropriate  prior to
distribution of the benefit.  Such distribution  shall completely  discharge the
Company from all liability with respect to such benefit.

                                    Article 7

                               General Limitations

         Notwithstanding  any provision of this  Agreement to the contrary,  the
Company shall not pay any benefit under this Agreement that is  attributable  to
the  Company's   matching   contributions   or  the  interest   earned  on  such
contributions:

         7.1 Excess  Parachute  Payment.  To the extent the benefit  would be an
excess parachute payment under Section 280G of the Code.

                                        4

<PAGE>

         7.2  Termination  for Cause.  If the Company  terminates the Director's
service as a director for:

              7.2.1 Gross negligence or gross neglect of duties,

              7.2.2 Commission of a felony or of a gross  misdemeanor  involving
moral turpitude; or

              7.2.3 Fraud,  disloyalty,  dishonesty or willful  violation of any
law or significant  Company policy  committed in connection  with the Director's
service and resulting in an adverse financial effect on the Company.

         7.3 Suicide. If the Director commits suicide within two years after the
date of this Agreement, or if the Director has made any material misstatement of
fact on any application for life insurance purchased by the Company.

                                    Article 8

                          Claims and Review Procedures

         8.1  Claims   Procedure.   The  Company  shall  notify  the  Director's
beneficiary  in  writing,  within  ninety  (90)  days  of  his  or  her  written
application  for  benefits,  of his or her  eligibility  or  noneligibility  for
benefits under the Agreement.  If the Company determines that the beneficiary is
not eligible for benefits or full  benefits,  the notice shall set forth (1) the
specific reasons for such denial,  (2) a specific reference to the provisions of
the Agreement on which the denial is based,  (3) a description of any additional
information or material  necessary for the claimant to perfect his or her claim,
and a description of why it is needed, and (4) an explanation of the Agreement's
claims review procedure and other appropriate  information as to the steps to be
taken if the  beneficiary  wishes to have the  claim  reviewed.  If the  Company
determines  that there are special  circumstances  requiring  additional time to
make a  decision,  the  Company  shall  notify the  beneficiary  of the  special
circumstances  and the date by which a decision is expected to be made,  and may
extend the time for up to an additional ninety-day period.

         8.2 Review  Procedure.  If the beneficiary is determined by the Company
not to be eligible for benefits,  or if the beneficiary  believes that he or she
is entitled to greater or different  benefits,  the  beneficiary  shall have the
opportunity  to have such claim reviewed by the Company by filing a petition for
review  with the  Company  within  sixty (60) days  after  receipt of the notice
issued by the Company.  Said petition shall state the specific reasons which the
beneficiary  believes  entitle him or her to benefits or to greater or different
benefits.  Within sixty (60) days after  receipt by the Company of the petition,
the Company shall afford the beneficiary (and counsel, if any) an opportunity to
present  his or her  position  to the  Company  orally  or in  writing,  and the
beneficiary (or counsel) shall have the right to review the pertinent documents.
The Company shall notify the  beneficiary  of its decision in writing within the
sixty-day period,  stating specifically the basis of its decision,  written in a
manner  calculated  to  be  understood  by  the  beneficiary  and  the  specific
provisions of the Agreement on which the decision is based.  If,  because of the
need for a hearing, the sixty-day period is not sufficient,  the decision may be
deferred for up to another sixty-day period at the election of the Company,  but
notice of this deferral shall be given to the beneficiary.

                                    Article 9

                           Amendments and Termination

         The Company may amend or terminate  this Agreement at any time prior to
the Director's  Termination of Service by written notice to the Director.  In no
event shall this Agreement be terminated  without payment to the Director of the
Deferral Account balance  attributable to the Director's  deferrals and interest
credited on such amounts.

                                        5

<PAGE>

                                   Article 10

                                  Miscellaneous

         10.1 Binding  Effect.  This  Agreement  shall bind the Director and the
Company,  and their  beneficiaries,  survivors,  executors,  administrators  and
transferees.

         10.2 No Guaranty of  Employment.  This  Agreement is not a contract for
services.  It does not give the  Director  the right to remain a director of the
Company,  nor does it  interfere  with the  shareholders'  rights to replace the
Director.  It also  does not  require  the  Director  to remain a  director  nor
interfere with the Director's right to terminate services at any time.

         10.3 Non-Transferability. Benefits under this Agreement cannot be sold,
transferred, assigned, pledged, attached or encumbered in any manner.

         10.4 Tax  Withholding.  The Company  shall  withhold any taxes that are
required to be withheld from the benefits provided under this Agreement.

         10.5  Applicable  Law. The Agreement and all rights  hereunder shall be
governed by the laws of OHIO,  except to the extent preempted by the laws of the
United States of America.

         10.6 Unfunded  Arrangement.  The Director and  beneficiary  are general
unsecured  creditors  of the  Company  for the  payment of  benefits  under this
Agreement.  The benefits  represent  the mere promise by the Company to pay such
benefits.  The rights to benefits are not subject in any manner to anticipation,
alienation,  sale, transfer,  assignment,  pledge,  encumbrance,  attachment, or
garnishment  by  creditors.  Any insurance on the  Director's  life is a general
asset of the Company to which the Director and beneficiary  have no preferred or
secured claim.

         IN WITNESS WHEREOF,  the Director and a duly authorized Company officer
have signed this Agreement.

DIRECTOR:                                       COMPANY:
                                                LAWRENCE FEDERAL SAVINGS BANK

_________________________                       By _____________________________
                                                Title  _________________________

                                        6

<PAGE>

                                    EXHIBIT I
                                       TO
                         DEFERRED COMPENSATION AGREEMENT

                                DEFERRAL ELECTION

I elect to defer fees under my Deferred Compensation Agreement with the Company,
as follows:

       Amount of Deferral           Frequency of Deferral           Duration
--------------------------------------------------------------------------------
     I elect to defer $_____      ______________            ____  For ____ Years
     of fees

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

I  understand  that I may  change  the  amount,  frequency  and  duration  of my
deferrals by filing a new election  form with the  Company;  provided,  however,
that any  subsequent  election  will not be effective  until the  calendar  year
following the year in which the new election is received by the Company.

                                 Form of Benefit

I elect to receive benefits under the Agreement in the following form:

[Initial One]

____   Lump sum

____   Equal monthly installments for 240 months

I understand that I may not change the form of benefit elected,  even if I later
change the amount of my deferrals under the Agreement.

I  designate  the  following  as  beneficiary  of  benefits  under the  Deferred
Compensation Agreement payable following my death.

Primary:          [DIRECTOR'S BENEFICIARY]
Contingent:       [DIRECTOR'S BENEFICIARY]

Note:  To name a trust as  beneficiary,  please  provide the name of the trustee
       and the exact date of the trust agreement.

I understand  that I may change these  beneficiary  designations by filing a new
written designation with the Company. I further understand that the designations
will be automatically  revoked if the beneficiary  predeceases me, or, if I have
named my spouse as beneficiary, in the event of the dissolution of our marriage.

Signature   [DIRECTOR]_________________
            ----------

Date ______________________________

Accepted by the Company this ____ day of _________, 199__.

By:     /s/ Jack L. Blair
        ------------------------------------------
Title:  Executive Vice President
        ------------------------------------------

                                        7

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