**Exhibit
      10.aw**






****Date:______________


**Form
      Of** **Incentive
      Stock Option
      Agreement**




**Under
      Home Federal Bancorp**




**____
      Stock Option Plan**




Name:




You
      are
      hereby granted the option to purchase a total of __________ shares of the Common
      Stock, without par value (“Common Stock”), of Home Federal Bancorp (the
“Corporation”) over the next ten years pursuant to the Corporation’s _____ Stock
      Option Plan (the “Plan”), on the following terms and conditions:




1.  The
      purchase price of the shares of Common Stock subject to this option is $______
      per share. You must pay this purchase price in cash at the time this option
      is
      exercised; provided, however, that with the approval of the Corporation’s Stock
      Option Committee (the “Committee”), you may exercise your option by tendering to
      the Corporation whole shares of the Corporation’s Common Stock owned by you, or
      any combination of whole shares of the Corporation’s Common Stock owned by you
      and cash, having a fair market value equal to the mean between the highest
      and
      lowest quoted selling prices for the shares on the date of exercise of the
      option (or if there were no sales on such date the weighted average of the
      means
      between the highest and lowest quoted selling prices on the nearest date before
      and the nearest date after the date of exercise of the option), as reported
      in
      The Wall Street Journal or a similar publication selected by the Committee.
      To
      exercise this option, you must send written notice to the Corporation’s
      Secretary at the address noted in Section 12 hereof. Such notice shall state
      the
      number of shares in respect of which the option is being exercised, shall
      identify the option exercised as an incentive stock option, and shall be signed
      by the person or persons so exercising the option. Such notice shall be
      accompanied by payment of the full cash option price for such shares or, if
      the
      Committee has authorized the use of the stock swap feature provided for above,
      such notice shall be followed as soon as practicable by the delivery of the
      option price for such shares. Certificates evidencing shares of Common Stock
      will not be delivered to you until payment has been made. Under certain
      circumstances, the Plan permits you to deliver a notice to your broker to
      deliver the cash to the Corporation upon the receipt of such cash from the
      sale
      of the Corporation’s Common Stock. Contact the Secretary of the Corporation for
      further information about this procedure if you are interested in
      it.




2.  The
      term
      of this option (the “Option Term”) shall be for a period of ten years from the
      date of this letter, subject to earlier termination as provided in paragraphs
      3
      and 4 hereof. Except as otherwise provided below, the option may be exercised
      at
      any time, or from time to time, in whole or in part, until the Option Term
      expires, but in no case may fewer than 100 such shares be purchased at any
      one
      time, except to purchase a residue of fewer than 100 shares.




3.  If
      you
      cease to be an employee of the Corporation or any of its subsidiaries for any
      reason other than retirement, permanent and total disability, or death, this
      option shall forthwith terminate. If your employment by the Corporation or
      any
      of its subsidiaries is terminated by reason of retirement (which means such
      termination of employment as shall entitle you to early or normal retirement
      benefits under any then existing pension plan of the Corporation or one of
      its
      subsidiaries), you may exercise this option in whole or in part within three
      years after such retirement, but not later than the date upon which this option
      would otherwise expire; provided that if you remain a director or director
      emeritus of the Corporation, the option may be exercised until the later of
      three years after such retirement or six months after your service as a director
      and/or director emeritus terminates, but not later than the date the option
      would otherwise expire. If you cease to be an employee of the Corporation or
      any
      of its subsidiaries because of your permanent and total disability, you may
      exercise this option in whole or in part at any time within one year after
      such
      termination of employment by reason of such disability, but no later than the
      date upon which this option would otherwise expire.




4.  If
      you
      die while employed by the Corporation or any of its subsidiaries, within three
      years after the termination of your employment because of retirement (or if
      later, six months following your termination of service as a director or
      director emeritus of the Corporation if you were serving as such at the time
      of
      your retirement), or within one year after the termination of your employment
      because of permanent and total disability, this option may be exercised in
      whole
      or in part by your executor, administrator, or estate beneficiaries at any
      time
      within one (1) year after the date of your death but not later than the date
      upon which this option would otherwise expire.




5.  This
      option is non-transferable otherwise than by will or the laws of descent and
      distribution or pursuant to a qualified domestic relations order. It may be
      exercised only by you, or, if you die, by your executor, administrator, or
      beneficiaries of your estate who are entitled to your option.




6.  All
      rights to exercise this option will expire, in any event, ten years from the
      date of this letter.




7.  Certificates
      evidencing shares issued upon exercise of this option may bear a legend setting
      forth among other things such restrictions on the disposition or transfer of
      the
      shares of the Corporation as the Corporation may deem consistent with applicable
      federal and state laws.




8.  Nothing
      in this option shall restrict the right of the Corporation or its subsidiaries
      to terminate your employment at any time with or without cause.




9.  This
      option 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 Corporation’s Stock Option Committee. A copy of the Plan
      has been furnished to you and an additional copy may be obtained from the
      Corporation. 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
      shall control, and this letter shall be deemed to be modified
      accordingly.




10.  This
      Stock Option Agreement is intended to grant an option which meets all of the
      requirements of incentive stock options as defined in Section 422A of the
      Internal Revenue Code. Subject to and upon the terms, conditions and provisions
      of the Plan, each and every provision of this Agreement shall be administered,
      construed and interpreted so that the option granted herein shall so qualify
      as
      an incentive stock option. Each provision of this Stock Option Agreement which
      would prevent this option from qualifying as an incentive stock option, if
      any,
      shall be void.




11.  You
      agree
      to advise the Corporation immediately upon any sale or transfer of any shares
      of
      Common Stock received upon exercise of this option to the extent such sale
      or
      transfer takes place prior to the later of (a) two years from the date of grant,
      or (b) one year from the date of exercise of this option.




12.  All
      notices by you to the Corporation and your exercise of the option herein
      granted, shall be addressed to Home Federal Bancorp, 222 West Second Street,
      P.O. Box 648, Seymour, Indiana 47274-0648, Attention: Secretary, or such other
      address as the Corporation may, from time to time, specify.




13.  This
      option may not be exercised until the Corporation has been advised by counsel
      that all applicable legal requirements have been met.




Very
      truly yours,




HOME
      FEDERAL BANCORP









By:




John
      K.
      Keach, Jr.


President and Chief Executive Officer








Accepted
      on the date above written:







Name