Exhibit 10.1


 


HOME
FEDERAL BANK


Short-Term Incentive
Plan


 


Purpose


 


The purpose of the Home
Federal Bank (“the Bank”) Short-Term Incentive Plan is to reward senior
managers of the Bank for the attainment of corporate objectives.  The Plan is designed to motivate, reward and
retain key executives.  This Plan was
approved by the Board of Directors in September, 1996.


 


Participation


 


The Short-Term Incentive
Plan is for selected management staff of Home Federal Bank.  Participation in this Plan will be recommended
by the Chairman and CEO and approved by the Personnel, Compensation and
Benefits Committee of the Board of Directors. 
Participation in any one year does not guarantee the participation in
future years or at the same award level.


 


New hires to the Corporation
and individuals promoted to assignments which by virtue of their
responsibilities may be otherwise eligible to participate in this Plan, may
only participate with the approval of the Chairman and CEO.  New participants in this Plan may be added only
at the start of each Plan Year.


 


Performance
Measure, Award Levels and Award Payment


 


The annual performance
measure, award levels and award payment provisions are identified in Addendum
I.


 


Termination of Employment


 


If during the fiscal year of the Bank, a plan
participant terminates his or her employment or if the Bank terminates the
employment of the plan participant during that same period, all rights to an
Award under the plan for that year are forfeited.  If the employment of a plan participant terminates
after the end of the fiscal year but before the benefits are paid, no such
rights are forfeited.  Notwithstanding
the provisions hereof, in the event of death, disability or retirement, the
provisions of the following paragraphs shall apply.


 


Death, Disability, Retirement


 


If a Plan participant dies, becomes disabled or
retires during a Plan Year, they or their designated beneficiary shall receive
an incentive payment for the partial year based on the number of months from
the start of the Plan Year to the first of the month following the month in
which the death, disability or retirement occurred.


 


Beneficiary Designation


 


Any incentive payment following the death of a
participant shall be paid to such person or persons, or other legal entity, as
the participant may have designated in writing and delivered to Home Federal
Bank.  The participant may from time to
time revoke or change any such designation by writing to Home Federal Bank.  If there is no unrevoked designation on file
at the participant’s death, or if the person or persons designated therein
shall have all pre-deceased the participant, such distribution shall be made to
the participant’s estate.  A beneficiary
designation form is attached.


 





















 


Administration and
Interpretation of the Plan


 


The Plan shall be administered by the Chairman
and CEO of the Bank whose actions will be subject to the approval of the
Personnel, Compensation and Benefits Committee in material matters.  The role of the Committee shall be to approve
the Home Federal Bank’s Short-Term Incentive Plan, approve the annual
target goal, approve Plan participants and (at the end of the Plan Year)
approve the distribution of the incentive payment to all participants.  The Plan Administrator is charged with the
effective administration of the Plan including the interpretation in instances
where the Plan is silent.


 


The Personnel, Compensation and Benefits
Committee reserves the right, from time to time, to prescribe rules and
regulations at such time and in such manner as it may deem appropriate.


 


Amendment/Termination of Plan


 


The Plan may be amended and shall be interpreted
by the Personnel, Compensation and Benefits Committee of the Board of
Directors, and its interpretation shall be final and binding on participant and
all other parties of interest.  The Plan
may be terminated at any time as the Personnel, Compensation and Benefits
Committee of the Board of Directors approves. 
Plan participants will be notified as soon as possible in the event of
an amendment or termination occurs.


 


Employment


 


The Plan is not intended as an Employment
Agreement.  The Plan does not restrict
the rights of the Bank to terminate the employment of a Plan participant at any
time and without any obligation under the Plan.


 


Legal Requirements


 


The Plan will be administered in accordance with
all federal, state and local statutory requirements.