Exhibit 10.16

Board of Directors                                   October 27,2005
LSB Corporation, Inc.

Ladies and Gentlemen

I am delighted to hear that the Search Committee has identified a candidate to
succeed me as CEO of our Company. I understand the candidate will be available
on January 3, 2006. AS you know, I am currently scheduled to retire as President
and CEO on December 31, 2006.

Under the circumstances, I believe it would be preferable, in the interests of
our Company, for me to step down early from the offices of President and CEO and
a Director of LSB Corporation and Lawrence Savings Bank (and any affiliates
thereof) and to assume an advisory and supportive role as an employee of the
Company and the Bank effective January 2,2006, provided arrangements can be made
to insure that I am not prejudiced by this action in terms of compensation or
benefits.

In accordance with my Employment Agreement, I would continue to receive my
salary through December 31,2006 in bi-weekly payments, as currently paid. In
addition, I will continue to receive my current employee benefits. These include
health insurance (BC/BS), life insurance, dental insurance, vision insurance,
long term disability insurance, use of an automobile and reimbursement of
related expenses, matching contributions to my 401k plan and certain club
membership and related fees.

As in recent years, I will receive a bonus equal to 20% of my salary, to be paid
with my first paycheck in January, 2006. Also as in past years, I will also
receive a 5% salary increase effective the first paycheck following my next
employment anniversary date.

As you know, in my role as President and CEO of the Company, I have served on
many community boards of directors and on several banking industry boards of
directors, and have received fees for such service in addition to my
compensation from the Company. I would resign from these boards
contemporaneously with my resignation as President and CEO of the Company. As
compensation, I will receive payment from the Company in lieu of estimated
annual directors' fees for 2006 in the amount of $6,100. This amount will be
included with my first paycheck from the Company following my resignation from
the boards.

As in the past, under my Employment Agreement, I will be reimbursed for my
annual physical examination expense that exceeds my medical insurance coverage
in 2006. In addition, I will continue to be reimbursed promptly for any expenses
I incur in performing any services for the Bank or LSB Corporation.

My employment agreement, as amended by this letter, will remain in effect
through December 31,2006. At the conclusion of my employment, I will be afforded
the opportunity to purchase from the Company for $1.OO the car that has been
assigned to me.

Provided these arrangements can be made, I would prefer, in the interests of our
Company, to step down early AS President and CEO and a Director and to assume an
advisory and supportive role in order to accommodate a smooth transition at the
CEO position in our Company.


Very truly yours,

/s/ Paul A. Miller
Paul A. Miller