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                    SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

         This SECOND AMENDMENT TO EMPLOYMENT AGREEMENT is by and among Home
Federal Savings Bank, a federal savings bank ("Employer"), S. Elaine Pollert, a
resident of Jackson County, Indiana ("Employee"), and Home Federal Bancorp, an
Indiana corporation (the "Holding Company").

                              W I T N E S S E T H:
                               -------------------

         WHEREAS, Employer and Employee entered into an Employment Agreement
dated as of December 17, 1996 (the "Employment Agreement");

         WHEREAS, Employer and Employee entered into a First Amendment to such
Employment Agreement prior to the date hereof;

          WHEREAS,  the parties desire to make certain additional changes to the
     Employment Agreement;

         NOW, THEREFORE, in consideration of the premises and the mutual
promises herein contained, the parties agree that the Employment Agreement shall
be, and it hereby is, amended as follows:

         1.       The introductory language in Section 7 prior to Section 7(A)
                  shall be amended to read as follows:

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

         2.       Section 9 shall be amended to read in its entirety as follows:

                 "9.      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 for
                         reasons other than those set forth in subsections  7(B)
                         or (C) of this Agreement, Employee shall not divulge or
                         furnish any trade  secrets (as defined in IND.  CODEss.
                         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)       If Employee's employment by Employer is
                           terminated for reasons other than those set forth in
                           subsections 7(B) or (C) of this Agreement, 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
                  7(B) or (C) of this Agreement, Employee shall have no
                  obligations to Employer with respect to trade secrets or
                  confidential information under this section 9."

         IN WITNESS WHEREOF, the parties have caused the Agreement to be
executed and delivered as of the Twenty-seventh day of February, 2001.

                                              HOME FEDERAL SAVINGS BANK

                                              By: /S/   John   K.   Keach,Jr.
                                              -------------------------------
                                               John K. Keach, Jr., President and
                                               Chief Executive Officer
                                               "EMPLOYER"

                                              HOME FEDERAL BANCORP
                                               By: /S/   John   K.   Keach,Jr.
                                              -------------------------------
                                               John K. Keach, Jr., President and
                                               Chief Executive Officer
                                               "HOLDING COMPANY"

 By: /S/ S. Elaine Pollert
 --------------------------
  S. Elaine Pollert
  "EMPLOYEE"
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