They were undone by two first-half goals in a 2-0 home defeat to AFC Boston.
Alford Town fell to their first league defeat of the season in East Lincs Combination Division Two.
Town were involved in a seven-goal thriller at Manby who leapfrogged above them into second place.
James Cole and captain Tom Lempard were on target for the visitors, but goals from Manby skipper Barney Parkes (x2), and Jake Tindall and Ben Maidment earned the hosts a 4-3 win at Legbourne.
AFC Louth remain rooted to the bottom and searching for their first points after a 5-0 defeat at fellow strugglers North Cotes.
And Sutton Rovers were also on the wrong end of a demolition as they were beaten 8-2 at Chapel Swifts who maintained their 100 per cent record.
In Division Three, Louth Old Boys Vets were pipped 4-3 at home to North Somercotes United Reserves, and Alford Town Reserves fell to their fourth league defeat of the season, 3-1, at home to Marsh Rovers, Toby Davies on target for the hosts before the break.