Document:

Exhibit 10.2

 

 

PROMISSORY
NOTE

 

	
  Principal

  	
   

  	
  Loan Date

  	
   

  	
  Maturity

  	
   

  	
  Loan No

  	
   

  	
  Call / Coll

  	
   

  	
  Account

  	
   

  	
  Officer

  	
   

  	
  Initials

  	
   

  
	
  $

  	
  6,000,000.00

  	
   

  	
  09-30-2009

  	
   

  	
  10-01-2010

  	
   

  	
  2187612

  	
   

  	
  9B / 34

  	
   

  	
   

  	
   

  	
  TTH

  	
   

  	
   

  	
   

  
																	

 

References in the boxes above are for Lender’s use only and do not limit
the applicability of this document to any particular loan or item.

Any item above containing “***” has been omitted due to text length
limitations.

 

	
  Borrower:

  	
  HF
  FINANCIAL CORP.

  	
  Lender:

  	
  UNITED
  BANKERS’ BANK

  
	
   

  	
  225
  S. Main Ave.

  	
   

  	
  1650
  West 82nd Street

  
	
   

  	
  P.O.
  Box 5000

  	
   

  	
  Suite 1500

  
	
   

  	
  Sioux
  Falls, SD 57104

  	
   

  	
  Bloomington,
  MN 55431

  
	
   

  	
   

  	
   

  	
  (952)
  881-5800

  

 

	
  Principal Amount: $6,000,000.00

  	
  Date of
  Note: September 30, 2009

  

 

PROMISE TO PAY.  HF FINANCIAL
CORP. (“Borrower”) promises to pay to UNITED BANKERS’ BANK (“Lender”), or
order, in lawful money of the United States of America, the principal amount of
Six Million & 00/100 Dollars ($6,000,000.00) or so much as may be
outstanding, together with interest on the unpaid outstanding principal balance
of each advance. Interest shall be calculated from the date of each advance
until repayment of each advance.

 

PAYMENT.  Borrower will pay this
loan in one payment of all outstanding principal plus all accrued unpaid
interest on October 1, 2010. In addition, Borrower will pay regular
quarterly payments of all accrued unpaid interest due as of each payment date,
beginning December 31, 2009, with all subsequent interest payments to be
due on the last day of each quarter after that. Unless otherwise agreed or
required by applicable law, payments will be applied first to any late charges;
then to any accrued unpaid interest; then to principal; and then to any unpaid
collection costs. Borrower will pay Lender at Lender’s address shown above or
at such other place as Lender may designate in writing.

 

VARIABLE INTEREST RATE.  The interest rate on this Note is subject to
change from time to time based on changes in an index which is the Lender’s
Base or Reference Rate (United Bankers’ Bank Base Rate “UBBR”) (the “Index”).
Lender will tell Borrower the current Index rate upon Borrower’s request. The
interest rate change will not occur more often than each day. Borrower
understands that Lender may make loans based on other rates as well. The Index currently is 3.250% per annum. Interest on the
unpaid principal balance of this Note will be calculated as described in the “INTEREST
CALCULATION METHOD” paragraph using a rate equal to the Index, adjusted if
necessary for any minimum and maximum rate limitations described below,
resulting in an initial rate of 4.750% per annum based on a year of 360 days.
NOTICE: Under no circumstances will the interest rate on this Note be less than
4.750% per annum or more than the maximum rate allowed by applicable law.

 

INTEREST CALCULATION METHOD.  Interest
on this Note is computed on a 365/360 basis; that is, by applying the ratio of
the interest rate over a year of 360 days, multiplied by the outstanding
principal balance, multiplied by the actual number of days the principal
balance is outstanding. All interest payable under this Note is computed using
this method.

 

PREPAYMENT.  Borrower may
pay without penalty all or a portion of the amount owed earlier than it is due.
Early payments will not, unless agreed to by Lender in writing, relieve
Borrower of Borrower’s obligation to continue to make payments of accrued
unpaid interest. Rather, early payments will reduce the principal balance due.
Borrower agrees not to send Lender payments marked “paid in full”, “without
recourse”, or similar language. If Borrower sends such a payment, Lender may
accept it without losing any of Lender’s rights under this Note, and Borrower
will remain obligated to pay any further amount owed to Lender. All written
communications concerning disputed amounts, including any check or other payment
instrument that indicates that the payment constitutes “payment in full” of the
amount owed or that is tendered with other conditions or limitations or as full
satisfaction of a disputed amount must be mailed or delivered to: UNITED
BANKERS’ BANK, 1650 West 82nd Street, Suite 1500, Bloomington, MN 55431.

 

LATE CHARGE.  If a payment
is 10 days or more late, Borrower will be charged 5.000% of
the regularly scheduled payment or $7.28, whichever is greater.

 

INTEREST AFTER DEFAULT.  Upon default, including failure to pay upon
final maturity, the interest rate on this Note shall be increased by adding a
4.000 percentage point margin (“Default Rate Margin”). The Default Rate Margin
shall also apply to each succeeding interest rate change that would have applied
had there been no default. However, in no event will the interest rate exceed
the maximum interest rate limitations under applicable law.

 

DEFAULT.  Each of the
following shall constitute an event of default (“Event of Default”) under this
Note:

 

Payment Default.  Borrower fails to make any payment when due
under this Note.

 

Other Defaults.  Borrower fails to comply with or to perform
any other term, obligation, covenant or condition contained in this Note or in
any of the related documents or to comply with or to perform any term,
obligation, covenant or condition contained in any other agreement between
Lender and Borrower.

 

False Statements.  Any warranty, representation or statement made
or furnished to Lender by Borrower or on Borrower’s behalf under this Note or
the related documents is false or misleading in any material respect, either
now or at the time made or furnished or becomes false or misleading at any time
thereafter.

 

Insolvency.  The dissolution or termination of Borrower’s
existence as a going business, the insolvency of Borrower, the appointment of a
receiver for any part of Borrower’s property, any assignment for the benefit of
creditors, any type of creditor workout, or the commencement of any proceeding
under any bankruptcy or insolvency laws by or against Borrower.

 

Creditor or Forfeiture
Proceedings.  Commencement
of foreclosure or forfeiture proceedings, whether by judicial proceeding,
self-help, repossession or any other method, by any creditor of Borrower or by
any governmental agency against any collateral securing the loan.  This includes a garnishment of any of Borrower’s
accounts, including deposit accounts, with Lender. However, this Event of
Default shall not apply if there is a good faith dispute by Borrower as to the
validity or reasonableness of the claim which is the basis of the creditor or
forfeiture proceeding and if Borrower gives Lender written notice of the
creditor or forfeiture proceeding and deposits with Lender monies or a surety
bond for the creditor or forfeiture proceeding, in an amount determined by
Lender, in its sole discretion, as being an adequate reserve or bond for the
dispute.

 

Events Affecting Guarantor.  Any of the preceding events occurs with
respect to any guarantor, endorser, surety, or accommodation party of any of
the indebtedness or any guarantor, endorser, surety, or accommodation party
dies or becomes incompetent, or revokes or disputes the validity of, or
liability under, any guaranty of the indebtedness evidenced by this Note.

 

Change In Ownership.  Any change in ownership of twenty-five percent
(25%) or more of the common stock of Borrower.

 

Adverse Change.  A material adverse change occurs in Borrower’s
financial condition, or Lender believes the prospect of payment or performance
of this Note is impaired.

 

Insecurity.  Lender in good faith believes itself insecure.

 

Cure Provisions.  If any default, other than a default in
payment is curable and if Borrower has not been given a notice of a breach of
the same provision of this Note within the preceding twelve (12) months, it may
be cured if Borrower, after Lender sends written notice to Borrower demanding
cure of such default: (1) cures the default within fifteen (15) days; or (2) if
the cure requires more than fifteen (15) days, immediately initiates steps
which Lender deems in Lender’s sole discretion to be sufficient to cure the
default and thereafter continues and completes all reasonable and necessary
steps sufficient to produce compliance as soon as reasonably practical.

 

LENDER’S RIGHTS.  Upon
default, Lender may declare the entire unpaid principal balance under this Note
and all accrued unpaid interest immediately due, and then Borrower will pay
that amount.

 

ATTORNEYS’ FEES; EXPENSES.  Lender may hire or pay someone else to help
collect this Note if Borrower does not pay. Borrower will pay Lender that
amount. This includes, subject to any limits under applicable law, Lender’s
reasonable attorneys’ fees and Lender’s legal expenses, whether or not there is
a lawsuit, including reasonable attorneys’ fees, expenses for bankruptcy
proceedings (including efforts to modify or vacate any automatic stay or
injunction), and appeals. If not prohibited by applicable law, Borrower also
will pay any court costs, in addition to all other sums provided by law.

 

JURY WAIVER. Lender and Borrower hereby waive the right to any jury
trial in any action, proceeding, or counterclaim brought by either Lender or
Borrower against the other.

 

 

	
   

  	
  PROMISSORY NOTE

  	
   

  
	
  Loan No: 2187612

  	
  (Continued)

  	
   

  

 

GOVERNING LAW. This Note will be governed by federal law
applicable to Lender and, to the extent not preempted by federal law, the laws
of the State of Minnesota without regard to its conflicts of law provisions.
This Note has been accepted by Lender in the State of Minnesota.

 

DISHONORED ITEM FEE.  Borrower will  pay a fee to Lender of $29.00 if Borrower makes a
payment on Borrower’s loan and the check or preauthorized charge with which
Borrower pays is later dishonored.

 

RIGHT OF SETOFF.  To the extent permitted by applicable law,
Lender reserves a right of setoff in all Borrower’s accounts
with Lender (whether checking, savings, or some other account). This includes
all accounts Borrower holds jointly with someone else and all accounts Borrower
may open in the future. However, this does not include any IRA or Keogh
accounts, or any trust accounts for which setoff would be prohibited by law.
Borrower authorizes Lender, to the extent permitted by applicable law, to
charge or setoff all sums owing on the indebtedness against any and all such
accounts, and, at Lender’s option, to administratively freeze all such accounts
to allow Lender to protect Lender’s charge and setoff rights provided in this
paragraph.

 

COLLATERAL.  Borrower
acknowledges this Note is secured by all collateral held in possession by
United Bankers’ Bank, including the collateral described in the Commercial
Pledge Agreement dated September 30, 2009.

 

LINE OF CREDIT.  This
Note evidences a revolving line of credit. Advances under this Note, as well as
directions for payment from Borrower’s accounts, may be requested orally or in
writing by Borrower or by an authorized person. Lender may, but need not,
require that all oral requests be confirmed in writing. Borrower agrees to be
liable for all sums either: (A) advanced in accordance with the
instructions of an authorized person or (B) credited to any of Borrower’s
accounts with Lender. The unpaid principal balance owing on this Note at any
time may be evidenced by endorsements on this Note or by Lender’s internal records,
including daily computer print-outs. Lender will have no obligation to advance
funds under this Note if: (A) Borrower or any guarantor is in default
under the terms of this Note or any agreement that Borrower or any guarantor
has with Lender, including any agreement made in connection with the signing of
this Note; (B) Borrower or any guarantor ceases doing business or is
insolvent; (C) any guarantor seeks, claims or otherwise attempts to limit,
modify or revoke such guarantor’s guarantee of this Note or any other loan with
Lender, (D) Borrower has applied funds provided pursuant to this Note for
purposes other than those authorized by Lender; or (E) Lender in good faith
believes itself insecure.

 

SUCCESSOR INTERESTS.  The terms of this Note shall be binding upon
Borrower, and upon Borrower’s heirs, personal representatives, successors and
assigns, and shall inure to the benefit of Lender and its successors and
assigns.

 

GENERAL PROVISIONS.  If any part of this Note cannot be enforced,
this fact will not affect the rest of the Note. Lender may delay or forgo
enforcing any of its rights or remedies under this Note without losing them. In
addition, Lender shall have all the rights and remedies provided in the related
documents or available at law, in equity, or otherwise.  Except as may be prohibited by applicable law,
all of Lender’s rights and remedies shall be cumulative and may be exercised
singularly or concurrently.  Election by
Lender to pursue any remedy shall not exclude pursuit of any other remedy, and
an election to make expenditures or to take action to perform an obligation of
Borrower shall not affect Lender’s right to declare a default and to exercise
its rights and remedies. Borrower and any other person who signs, guarantees or
endorses this Note, to the extent allowed by law, waive presentment, demand for
payment, and notice of dishonor. Upon any change in the terms of this Note, and
unless otherwise expressly stated in writing, no party who signs this Note,
whether as maker, guarantor, accommodation maker or endorser, shall be released
from liability. All such parties agree that Lender may renew or extend
(repeatedly and for any length of time) this loan or release any party or
guarantor or collateral; or impair, fail to realize upon or perfect Lender’s
security interest in the collateral; and take any other action deemed necessary
by Lender without the consent of or notice to anyone. All such parties also
agree that Lender may modify this loan without the consent of or notice to
anyone other than the party with whom the modification is made. The obligations
under this Note are joint and several.

 

SECTION DISCLOSURE.  To the extent not preempted by federal law,
this loan is made under Minnesota Statutes, Section 334.01.

 

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE
PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS.
BORROWER AGREES TO THE TERMS OF THE NOTE.

 

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY
NOTE.

 

BORROWER:

 

 

	
  HF FINANCIAL CORP.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Darrel L. Posegate

  	
   

  	
   

  
	
   

  	
  Darrel L. Posegate, Executive Vice President of HF

  	
   

  	
   

  
	
   

  	
  FINANCIAL
  CORP.

  	
   

  	
   

  

 

2Exhibit
10.3

 

 

COMMERCIAL
PLEDGE AGREEMENT

 

	
  Principal

  	
   

  	
  Loan Date

  	
   

  	
  Maturity

  	
   

  	
  Loan No

  	
   

  	
  Call / Coll

  	
   

  	
  Account

  	
   

  	
  Officer

  	
   

  	
  Initials

  	
   

  
	
  $

  	
  6,000,000.00

  	
   

  	
  09-30-2009

  	
   

  	
  10-01-2010

  	
   

  	
  2187612

  	
   

  	
  9B / 34

  	
   

  	
   

  	
   

  	
  TTH

  	
   

  	
   

  	
   

  
																	

 

References in the boxes above are for Lender’s
use only and do not limit the applicability of this document to any particular
loan or item. 

Any item above containing “***” has been omitted due to text length
limitations.

 

	
  Grantor:

  	
  HF
  FINANCIAL CORP.

  	
  Lender:

  	
  UNITED
  BANKERS’ BANK

  
	
   

  	
  225
  S. Main Ave.

  	
   

  	
  1650
  West 82nd Street

  
	
   

  	
  P.O.
  Box 5000

  	
   

  	
  Suite 1500

  
	
   

  	
  Sioux
  Falls, SD 57104

  	
   

  	
  Bloomington,
  MN 55431

  
	
   

  	
   

  	
   

  	
  (952)
  881-5800

  

 

THIS COMMERCIAL PLEDGE AGREEMENT dated September 30, 2009,
is made and executed between HF FINANCIAL CORP. (“Grantor”) and UNITED BANKERS’
BANK (“Lender”).

 

GRANT OF SECURITY INTEREST. For valuable consideration, Grantor
grants to Lender a security interest in the Collateral to secure the
Indebtedness and agrees that Lender shall have the rights stated in this
Agreement with respect to the Collateral, in addition to all other rights which
Lender may have by law.

 

COLLATERAL DESCRIPTION. The
word “Collateral” as used in this Agreement means Grantor’s present and future
rights, title and interest in and to the following described investment
property, together with any and all present and future additions thereto, substitutions
therefor, and replacements thereof, together with any and all present and
future certificates and/or instruments evidencing any stock and further
together with all Income and Proceeds as described herein:

 

1,510,000 Shares of Home
Federal Bank Stock

 

CROSS-COLLATERALIZATION. In addition to the Note, this
Agreement secures all obligations, debts and liabilities, plus interest thereon,
of Grantor to Lender, or any one or more of them, as well as all claims by
Lender against Grantor or any one or more of them, whether now existing or
hereafter arising, whether related or unrelated to the purpose of the Note, whether
voluntary or otherwise, whether due or not due, direct or indirect, determined
or undetermined, absolute or contingent, liquidated or unliquidated, whether
Grantor may be liable individually or jointly with others, whether obligated as
guarantor, surety, accommodation party or otherwise, and whether recovery upon
such amounts may be or hereafter may become barred by any statute of
limitations, and whether the obligation to repay such amounts may be or
hereafter may become otherwise unenforceable.

 

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender
reserves a right of setoff in all Grantor’s accounts with Lender (whether
checking, savings, or some other account). This includes all accounts Grantor
holds jointly with someone else and all accounts Grantor may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Grantor authorizes Lender, to the
extent permitted by applicable law, to charge or setoff all sums owing on the
Indebtedness against any and all such accounts, and, at Lender’s option, to
administratively freeze all such accounts to allow Lender to protect Lender’s
charge and setoff rights provided in this paragraph.

 

REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. Grantor
represents and warrants to Lender that:

 

Ownership. Grantor is the
lawful owner of the Collateral free and clear of all security interests, liens,
encumbrances and claims of others except as disclosed to and accepted by Lender
in writing prior to execution of this Agreement.

 

Right to Pledge. Grantor has the
full right, power and authority to enter into this Agreement and to pledge the
Collateral.

 

Authority; Binding Effect. Grantor has the
full right, power and authority to enter into this Agreement and to grant a
security interest in the Collateral to Lender. This Agreement is binding upon
Grantor as well as Grantor’s successors and assigns, and is legally enforceable
in accordance with its terms. The foregoing representations and warranties, and
all other representations and warranties contained in this Agreement are and
shall be continuing in nature and shall remain in full force and effect until
such time as this Agreement is terminated or cancelled as provided herein.

 

No Further Assignment. Grantor has not,
and shall not, sell, assign, transfer, encumber or otherwise dispose of any of
Grantor’s rights in the Collateral except as provided in this Agreement.

 

No Defaults. There are no
defaults existing under the Collateral, and there are no offsets or
counterclaims to the same. Grantor will strictly and promptly perform each of
the terms, conditions, covenants and agreements, if any, contained in the
Collateral which are to be performed by Grantor.

 

No Violation. The execution
and delivery of this Agreement will not violate any law or agreement governing
Grantor or to which Grantor is a party, and its certificate or articles of
incorporation and bylaws do not prohibit any term or condition of this
Agreement.

 

Financing Statements. Grantor
authorizes Lender to file a UCC financing statement, or alternatively, a copy
of this Agreement to perfect Lender’s security interest. At Lender’s request, Grantor
additionally agrees to sign all other documents that are necessary to perfect, protect,
and continue Lender’s security interest in the Property. Grantor will pay all
filing fees, title transfer fees, and other fees and costs involved unless
prohibited by law or unless Lender is required by law to pay such fees and
costs. Grantor irrevocably appoints Lender to execute documents necessary to
transfer title if there is a default. Lender may file a copy of this Agreement
as a financing statement. If Grantor changes Grantor’s name or address, or the
name or address of any person granting a security interest under this Agreement
changes, Grantor will promptly notify the Lender of such change.

 

LENDER’S RIGHTS AND OBLIGATIONS WITH RESPECT TO THE COLLATERAL. Lender may hold
the Collateral until all Indebtedness has been paid and satisfied. Thereafter
Lender may deliver the Collateral to Grantor or to any other owner of the
Collateral. Lender shall have the following rights in addition to all other
rights Lender may have by law:

 

Maintenance and Protection
of Collateral. Lender may, but shall not be obligated to, take such
steps as it deems necessary or desirable to protect, maintain, insure, store, or
care for the Collateral, including paying of any liens or claims against the
Collateral. This may include such things as hiring other people, such as
attorneys, appraisers or other experts. Lender may charge Grantor for any cost
incurred in so doing. When applicable law provides more than one method of
perfection of Lender’s security interest, Lender may choose the method(s) to
be used. If the Collateral consists of stock, bonds or other investment
property for which no certificate has been issued, Grantor agrees, at Lender’s
request, either to request issuance of an appropriate certificate or to give
instructions on Lender’s forms to the issuer, transfer agent, mutual fund
company, or broker, as the case may be, to record on its books or records
Lender’s security interest in the Collateral. Grantor also agrees to execute
any additional documents, including but not limited to, a control agreement, necessary
to perfect Lender’s security interest as Lender may desire.

 

Income and Proceeds from
the Collateral. Lender may receive all Income and Proceeds and add it
to the Collateral. Grantor agrees to deliver to Lender immediately upon receipt,
in the exact form received and without commingling with other property, all
Income and Proceeds from the Collateral which may be received by, paid, or
delivered to Grantor or for Grantor’s account, whether as an addition to, in
discharge of, in substitution of, or in exchange for any of the Collateral.

 

Application of Cash. At Lender’s
option, Lender may apply any cash, whether included in the Collateral or
received as Income and Proceeds or through liquidation, sale, or retirement, of
the Collateral, to the satisfaction of the Indebtedness or such portion thereof
as Lender shall choose, whether or not matured.

 

Transactions with Others. Lender may (1) extend
time for payment or other performance, (2) grant a renewal or change in
terms or conditions, or (3) compromise, compound or release any obligation,
with any one or more Obligors, endorsers, or Guarantors of the Indebtedness as
Lender deems advisable, without obtaining the prior written consent of Grantor,
and no such act or failure to act shall affect Lender’s rights against Grantor
or the Collateral.

 

All Collateral Secures
Indebtedness. All Collateral shall be security for the Indebtedness,
whether the Collateral is located at one or more offices or branches of Lender.
This will be the case whether or not the office or branch where Grantor
obtained Grantor’s loan knows about the Collateral or relies upon the
Collateral as security.

 

 

	
   

  	
  COMMERCIAL PLEDGE AGREEMENT

  	
   

  
	
  Loan No: 2187612

  	
  (Continued)

  	
   

  

 

Collection of Collateral. Lender at
Lender’s option may, but need not, collect the Income and Proceeds directly
from the Obligors. Grantor authorizes and directs the Obligors, if Lender
decides to collect the Income and Proceeds, to pay and deliver to Lender all
Income and Proceeds from the Collateral and to accept Lender’s receipt for the
payments.

 

Power of Attorney. Grantor
irrevocably appoints Lender as Grantor’s attorney-in-fact, with full power of
substitution, (a) to demand, collect, receive, receipt for, sue and
recover all Income and Proceeds and other sums of money and other property
which may now or hereafter become due, owing or payable from the Obligors in
accordance with the terms of the Collateral; (b) to execute, sign and
endorse any and all instruments, receipts, checks, drafts and warrants issued
in payment for the Collateral; (c) to settle or compromise any and all
claims arising under the Collateral, and in the place and stead of Grantor, execute
and deliver Grantor’s release and acquittance for Grantor; (d) to file any
claim or claims or to take any action or institute or take part in any
proceedings, either in Lender’s own name or in the name of Grantor, or
otherwise, which in the discretion of Lender may seem to be necessary or
advisable; and (e) to execute in Grantor’s name and to deliver to the
Obligors on Grantor’s behalf, at the time and in the manner specified by the
Collateral, any necessary instruments or documents.

 

Perfection of Security
Interest. Upon Lender’s request, Grantor will deliver to
Lender any and all of the documents evidencing or constituting the Collateral. When
applicable law provides more than one method of perfection of Lender’s security
interest, Lender may choose the method(s) to be used. Upon Lender’s
request, Grantor will sign and deliver any writings necessary to perfect Lender’s
security interest. If any of the Collateral consists of securities for which no
certificate has been issued, Grantor agrees, at Lender’s option, either to
request issuance of an appropriate certificate or to execute appropriate
instructions on Lender’s forms instructing the issuer, transfer agent, mutual
fund company, or broker, as the case may be, to record on its books or records,
by book-entry or otherwise, Lender’s security interest in the Collateral. Grantor
hereby appoints Lender as Grantor’s irrevocable attorney-in-fact for the
purpose of executing any documents necessary to perfect, amend, or to continue
the security interest granted in this Agreement or to demand termination of
filings of other secured parties. This is a continuing
Security Agreement and will continue in effect even though all or any part of
the Indebtedness is paid in full and even though for a period of time Grantor
may not be indebted to Lender.

 

LENDER’S EXPENDITURES. If any action or proceeding
is commenced that would materially affect Lender’s interest in the Collateral
or if Grantor fails to comply with any provision of this Agreement or any
Related Documents, including but not limited to Grantor’s failure to discharge
or pay when due any amounts Grantor is required to discharge or pay under this
Agreement or any Related Documents, Lender on Grantor’s behalf may (but shall
not be obligated to) take any action that Lender deems appropriate, including
but not limited to discharging or paying all taxes, liens, security interests, encumbrances
and other claims, at any time levied or placed on the Collateral and paying all
costs for insuring, maintaining and preserving the Collateral. All such
expenditures incurred or paid by Lender for such purposes will then bear
interest at the rate charged under the Note from the date incurred or paid by
Lender to the date of repayment by Grantor. All such expenses will become a
part of the Indebtedness and, at Lender’s option, will (A) be payable on
demand, (B) be added to the balance of the Note and be apportioned among
and be payable with any installment payments to become due during either (1) the
term of any applicable insurance policy; or (2) the remaining term of the
Note; or (C) be treated as a balloon payment which will be due and payable
at the Note’s maturity. The Agreement also will secure payment of these amounts.
Such right shall be in addition to all other rights and remedies to which
Lender may be entitled upon Default.

 

LIMITATIONS ON OBLIGATIONS OF LENDER. Lender shall use ordinary
reasonable care in the physical preservation and custody of the Collateral in
Lender’s possession, but shall have no other obligation to protect the
Collateral or its value. In particular, but without limitation, Lender shall
have no responsibility for (A) any depreciation in value of the Collateral
or for the collection or protection of any Income and Proceeds from the
Collateral, (B) preservation of rights against parties to the Collateral
or against third persons, (C) ascertaining any maturities, calls, conversions,
exchanges, offers, tenders, or similar matters relating to any of the
Collateral, or (D) informing Grantor about any of the above, whether or
not Lender has or is deemed to have knowledge of such matters. Except as
provided above, Lender shall have no liability for depreciation or
deterioration of the Collateral.

 

DEFAULT. Each of the following shall constitute an Event of
Default under this Agreement:

 

Payment Default. Grantor fails
to make any payment when due under the Indebtedness.

 

Other Defaults. Grantor fails
to comply with or to perform any other term, obligation, covenant or condition
contained in this Agreement or in any of the Related Documents or to comply
with or to perform any term, obligation, covenant or condition contained in any
other agreement between Lender and Grantor.

 

False Statements. Any warranty, representation
or statement made or furnished to Lender by Grantor or on Grantor’s behalf
under this Agreement or the Related Documents is false or misleading in any
material respect, either now or at the time made or furnished or becomes false
or misleading at any time thereafter.

 

Defective Collateralization. This Agreement
or any of the Related Documents ceases to be in full force and effect (including
failure of any collateral document to create a valid and perfected security
interest or lien) at any time and for any reason.

 

Insolvency. The dissolution
or termination of Grantor’s existence as a going business, the insolvency of
Grantor, the appointment of a receiver for any part of Grantor’s property, any
assignment for the benefit of creditors, any type of creditor workout, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or
against Grantor.

 

Creditor or Forfeiture
Proceedings. Commencement of foreclosure or forfeiture
proceedings, whether by judicial proceeding, self-help, repossession or any
other method, by any creditor of Grantor or by any governmental agency against
any collateral securing the Indebtedness. This includes a garnishment of any of
Grantor’s accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Grantor as
to the validity or reasonableness of the claim which is the basis of the
creditor or forfeiture proceeding and if Grantor gives Lender written notice of
the creditor or forfeiture proceeding and deposits with Lender monies or a
surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the
dispute.

 

Events Affecting Guarantor.
Any of the preceding events occurs with respect to any guarantor, endorser,
surety, or accommodation party of any of the Indebtedness or guarantor, endorser,
surety, or accommodation party dies or becomes incompetent or revokes or
disputes the validity of, or liability under, any Guaranty of the Indebtedness.

 

Adverse Change. A material
adverse change occurs in Grantor’s financial condition, or Lender believes the
prospect of payment or performance of the Indebtedness is impaired.

 

Insecurity. Lender in good
faith believes itself insecure.

 

Cure Provisions. If any default,
other than a default in payment is curable and if Grantor has not been given a
notice of a breach of the same provision of this Agreement within the preceding
twelve (12) months, it may be cured if Grantor, after Lender sends written
notice to Grantor demanding cure of such default: (1) cures the default
within fifteen (15) days; or (2) if the cure requires more than fifteen (15)
days, immediately initiates steps which Lender deems in Lender’s sole
discretion to be sufficient to cure the default and thereafter continues and
completes all reasonable and necessary steps sufficient to produce compliance
as soon as reasonably practical.

 

RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default
occurs under this Agreement, at any time thereafter, Lender may exercise any
one or more of the following rights and remedies:

 

Accelerate Indebtedness. Declare all
Indebtedness, including any prepayment penalty which Grantor would be required
to pay, immediately due and payable, without notice of any kind to Grantor.

 

Collect the Collateral. Collect any of
the Collateral and, at Lender’s option and to the extent permitted by
applicable law, retain possession of the Collateral while suing on the Indebtedness.

 

Sell the Collateral. Sell the
Collateral, at Lender’s discretion, as a unit or in parcels, at one or more
public or private sales. Unless the Collateral is perishable or threatens to
decline speedily in value or is of a type customarily sold on a recognized
market, Lender shall give or mail to Grantor, and other persons as required by
law, notice at least ten (10) days in advance of the time and place of any
public sale, or of the time after which any private sale may be made. However, no
notice need be provided to any person who, after an Event of Default occurs, enters
into and authenticates an agreement waiving that person’s right to notification
of sale. Grantor agrees that any requirement of reasonable notice as to Grantor
is satisfied if Lender mails notice by ordinary mail addressed to Grantor at
the last address Grantor has given Lender in writing. If a public sale is held,
there shall be sufficient compliance with all requirements of notice to the
public by a single publication in any newspaper of general circulation in the
county where the Collateral is located, setting forth the time and place of
sale and a brief description of the property to be sold. Lender may be a
purchaser at any public sale.

 

Sell Securities. Sell any
securities included in the Collateral in a manner consistent with applicable
federal and state securities laws. If, because of restrictions under such laws,
Lender is unable, or believes Lender is unable, to sell the securities in an
open market transaction,

 

2

 

	
   

  	
  COMMERCIAL PLEDGE AGREEMENT

  	
   

  
	
  Loan No: 2187612

  	
  (Continued)

  	
   

  

 

Grantor agrees that Lender
will have no obligation to delay sale until the securities can be registered. Then
Lender may make a private sale to one or more persons or to a restricted group
of persons, even though such sale may result in a price that is less favorable
than might be obtained in an open market transaction. Such a sale will be considered
commercially reasonable. If any securities held as Collateral are “restricted securities”
as defined in the Rules of the Securities and Exchange Commission (such as Regulation
D or Rule 144) or the rules of state securities departments under state “Blue
Sky” laws, or if Grantor or any other owner of the Collateral is an affiliate
of the issuer of the securities, Grantor agrees that neither Grantor, nor any
member of Grantor's family, nor any other person signing this Agreement will sell
or dispose of any securities of such issuer without obtaining Lender's prior
written consent.

 

Rights and Remedies with
Respect to Investment Property, Financial Assets and Related Collateral. In addition to
other rights and remedies granted under this Agreement and under applicable law,
Lender may exercise any or all of the following rights and remedies: (1) register
with any issuer or broker or other securities intermediary any of the
Collateral consisting of investment property or financial assets (collectively
herein, “investment property”) in Lender's sole name or in the name of Lender's
broker, agent or nominee; (2) cause any issuer, broker or other securities
intermediary to deliver to Lender any of the Collateral consisting of securities,
or investment property capable of being delivered; (3) enter into a
control agreement or power of attorney with any issuer or securities
intermediary with respect to any Collateral consisting of investment property, on
such terms as Lender may deem appropriate, in its sole discretion, including
without limitation, an agreement granting to Lender any of the rights provided
hereunder without further notice to or consent by Grantor; (4) execute any
such control agreement on Grantor's behalf and in Grantor's name, and hereby
irrevocably appoints Lender as agent and attorney-in-fact, coupled with an interest,
for the purpose of executing such control agreement on Grantor’s behalf; (5) exercise
any and all rights of Lender under any such control agreement or power of
attorney; (6) exercise any voting, conversion, registration, purchase, option,
or other rights with respect to any Collateral; (7) collect, with or
without legal action, and issue receipts concerning any notes, checks, drafts, remittances
or distributions that are paid or payable with respect to any Collateral consisting
of investment property. Any control agreement entered with respect to any investment
property shall contain the following provisions, at Lender’s discretion. Lender
shall be authorized to instruct the issuer, broker or other securities
intermediary to take or to refrain from taking such actions with respect to the
investment property as Lender may instruct, without further notice to or consent
by Grantor. Such actions may include without limitation the issuance of
entitlement orders, account instructions, general trading or buy or sell orders,
transfer and redemption orders, and stop loss orders. Lender shall be further
entitled to instruct the issuer, broker or securities intermediary to sell or
to liquidate any investment property, or to pay the cash surrender or account
termination value with respect to any and all investment property, and to
deliver all such payments and liquidation proceeds to Lender. Any such control
agreement shall contain such authorizations as are necessary to place Lender in
“control” of such investment collateral, as contemplated under the provisions
of the Uniform Commercial Code, and shall fully authorize Lender to issue “entitlement
orders” concerning the transfer, redemption, liquidation or disposition of
investment collateral, in conformance with the provisions of the Uniform
Commercial Code.

 

Foreclosure. Maintain a
judicial suit for foreclosure and sale of the Collateral.

 

Transfer Title. Effect transfer
of title upon sale of all or part of the Collateral. For this purpose, Grantor
irrevocably appoints Lender as Grantor’s attorney-in-fact to execute endorsements,
assignments and instruments in the name of Grantor and each of them (if more
than one) as shall be necessary or reasonable.

 

Other Rights and Remedies. Have and exercise
any or all of the rights and remedies of a secured creditor under the provisions
of the Uniform Commercial Code, at law, in equity, or otherwise.

 

Application of Proceeds. Apply any cash
which is part of the Collateral, or which is received from the collection or sale
of the Collateral, to reimbursement of any expenses, including any costs for registration
of securities, commissions incurred in connection with a sale, reasonable attorneys’
fees and court costs, whether or not there is a lawsuit and including any fees
on appeal, incurred by Lender in connection with the collection and sale of such
Collateral and to the payment of the Indebtedness of Grantor to Lender, with
any excess funds to be paid to Grantor as the interests of Grantor may appear. Grantor
agrees, to the extent permitted by law, to pay any deficiency after application
of the proceeds of the Collateral to the Indebtedness.

 

Election of Remedies. Except as may
be prohibited by applicable law, all of Lender’s rights and remedies, whether
evidenced by this Agreement, the Related Documents, or by any other writing, shall
be cumulative and may be exercised singularly or concurrently. Election by
Lender to pursue any remedy shall not exclude pursuit of any other remedy, and
an election to make expenditures or to take action to perform an obligation of
Grantor under this Agreement, after Grantor’s failure to perform, shall not
affect Lender’s right to declare a default and exercise its remedies.

 

EXHIBIT “A”. An exhibit, titled “EXHIBIT “A”,” is attached to this
Agreement and by this reference is made a part of this Agreement just as if all
the provisions, terms and conditions of the Exhibit had been fully set
forth in this Agreement.

 

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions
are a part of this Agreement:

 

Amendments. This Agreement,
together with any Related Documents, constitutes the entire understanding and
agreement of the parties as to the matters set forth in this Agreement. No
alteration of or amendment to this Agreement shall be effective unless given in
writing and signed by the party or parties sought to be charged or bound by the
alteration or amendment.

 

Attorneys’ Fees; Expenses. Grantor agrees
to pay upon demand all of Lender’s costs and expenses, including Lender’s reasonable
attorneys’ fees and Lender’s legal expenses, incurred in connection with the
enforcement of this Agreement. Lender may hire or pay someone else to help
enforce this Agreement, and Grantor shall pay the costs and expenses of such
enforcement. Costs and expenses include Lender’s reasonable attorneys’ fees and
legal expenses whether or not there is a lawsuit, including reasonable attorneys’
fees and legal expenses for bankruptcy proceedings (including efforts to modify
or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment
collection services. Grantor also shall pay all court costs and such additional
fees as may be directed by the court.

 

Caption Headings. Caption headings
in this Agreement are for convenience purposes only and are not to be used to
interpret or define the provisions of this Agreement.

 

Governing Law. This
Agreement will be governed by federal law applicable to Lender and, to the
extent not preempted by federal law, the laws of the State of Minnesota without
regard to its conflicts of law provisions. This Agreement has been accepted by
Lender in the State of Minnesota.

 

No Waiver by Lender. Lender shall
not be deemed to have waived any rights under this Agreement unless such waiver
is given in writing and signed by Lender. No delay or omission on the part of
Lender in exercising any right shall operate as a waiver of such right or any
other right. A waiver by Lender of a provision of this Agreement shall not
prejudice or constitute a waiver of Lender’s right otherwise to demand strict
compliance with that provision or any other provision of this Agreement. No
prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall
constitute a waiver of any of Lender’s rights or of any of Grantor’s obligations
as to any future transactions. Whenever the consent of Lender is required under
this Agreement, the granting of such consent by Lender in any instance shall
not constitute continuing consent to subsequent instances where such consent is
required and in all cases such consent may be granted or withheld in the sole discretion
of Lender.

 

Notices.  Any notice required to be given under this
Agreement shall be given in writing, and shall be effective when actually
delivered, when actually received by telefacsimile (unless otherwise required
by law), when deposited with a nationally recognized overnight courier, or, if
mailed, when deposited in the United States mail, as first class, certified or registered
mail postage prepaid, directed to the addresses shown near the beginning of this
Agreement. Any party may change its address for notices under this Agreement by
giving formal written notice to the other parties, specifying that the purpose
of the notice is to change the party's address. For notice purposes, Grantor agrees
to keep Lender informed at all times of Grantor’s current address. Unless otherwise
provided or required by law, if there is more than one Grantor, any notice
given by Lender to any Grantor is deemed to be notice given to all Grantors.

 

Severability. If a court of
competent jurisdiction finds any provision of this Agreement to be illegal, invalid,
or unenforceable as to any circumstance, that finding shall not make the
offending provision illegal, invalid, or unenforceable as to any other circumstance.
If feasible, the offending provision shall be considered modified so that it becomes
legal, valid and enforceable. If the offending provision cannot be so modified,
it shall be considered deleted from this Agreement. Unless otherwise required
by law, the illegality, invalidity, or unenforceability of any provision of this
Agreement shall not affect the legality, validity or enforceability of any
other provision of this Agreement.

 

Successors and Assigns. Subject to any limitations
stated in this Agreement on transfer of Grantor’s interest, this Agreement shall
be binding upon and inure to the benefit of the parties, their successors and assigns.
If ownership of the Collateral becomes vested in a person other than Grantor, Lender,
without notice to Grantor, may deal with Grantor’s successors with reference to
this Agreement and the Indebtedness by way of forbearance or extension without releasing
Grantor from the obligations of this Agreement or liability under the Indebtedness.

 

3

 

	
   

  	
  COMMERCIAL PLEDGE AGREEMENT

  	
   

  
	
  Loan No: 2187612

  	
  (Continued)

  	
   

  

 

Time is of the Essence. Time is of the
essence in the performance of this Agreement.

 

DEFINITIONS. The following capitalized words and terms shall have
the following meanings when used in this Agreement. Unless specifically stated
to the contrary, all references to dollar amounts shall mean amounts in lawful
money of the United States of America. Words and terms used in the singular
shall include the plural, and the plural shall include the singular, as the
context may require. Words and terms not otherwise defined in this Agreement
shall have the meanings attributed to such terms in the Uniform Commercial Code.

 

Agreement. The word “Agreement”
means this Commercial Pledge Agreement, as this Commercial Pledge Agreement may
be amended or modified from time to time, together with all exhibits and
schedules attached to this Commercial Pledge Agreement from time to time.

 

Borrower. The word “Borrower”
means HF FINANCIAL CORP. and includes all co-signers and co-makers signing the
Note and all their successors and assigns.

 

Collateral. The word “Collateral”
means all of Grantor’s right, title and interest in and to all the Collateral
as described in the Collateral Description section of this Agreement.

 

Default. The word “Default”
means the Default set forth in this Agreement in the section titled “Default”.

 

Event of Default. The words “Event
of Default” mean any of the events of default set forth in this Agreement in
the default section of this Agreement.

 

Grantor. The word “Grantor”
means HF FINANCIAL CORP..

 

Guaranty. The word “Guaranty”
means the guaranty from guarantor, endorser, surety, or accommodation party to
Lender, including without limitation a guaranty of all or part of the Note.

 

Income and Proceeds. The words “Income
and Proceeds” mean all present and future income, proceeds, earnings, increases,
and substitutions from or for the Collateral of every kind and nature, including
without limitation all payments, interest, profits, distributions, benefits, rights,
options, warrants, dividends, stock dividends, stock splits, stock rights, regulatory
dividends, subscriptions, monies, claims for money due and to become due, proceeds
of any insurance on the Collateral, shares of stock of different par value or
no par value issued in substitution or exchange for shares included in the
Collateral, and all other property Grantor is entitled to receive on account of
such Collateral, including accounts, documents, instruments, chattel paper, investment
property, and general intangibles.

 

Indebtedness. The word “Indebtedness”
means the indebtedness evidenced by the Note or Related Documents, including
all principal and interest together with all other indebtedness and costs and
expenses for which Grantor is responsible under this Agreement or under any of
the Related Documents. Specifically, without limitation, Indebtedness includes
all amounts that may be indirectly secured by the Cross-Collateralization
provision of this Agreement.

 

Lender. The word “Lender”
means UNITED BANKERS’ BANK, its successors and assigns.

 

Note. The word “Note”
means the Note executed by HF FINANCIAL CORP. in the principal amount of
$6,000,000.00 dated September 30, 2009, together with all renewals of, extensions
of, modifications of, refinancings of, consolidations of, and substitutions for
the note or credit agreement.

 

Obligor. The word “Obligor”
means without limitation any and all persons obligated to pay money or to
perform some other act under the Collateral.

 

Property. The word “Property”
means all of Grantor’s right, title and interest in and to all the Property as
described in the “Collateral Description” section of this Agreement.

 

Related Documents. The words “Related
Documents” mean all promissory notes, credit agreements, loan agreements, environmental
agreements, guaranties, security agreements, mortgages, deeds of trust, security
deeds, collateral mortgages, and all other instruments, agreements and
documents, whether now or hereafter existing, executed in connection with the
Indebtedness.

 

GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL
PLEDGE AGREEMENT AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED SEPTEMBER 30,
2009.

 

	
  GRANTOR:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  HF FINANCIAL CORP.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Darrel
  L. Posegate

  	
   

  
	
   

  	
  Darrel
  L. Posegate, Executive Vice President of HF

  	
   

  
	
   

  	
  FINANCIAL CORP.

  	
   

  
	
   

  	
   

  	
   

  
	
  LENDER:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  UNITED BANKERS’ BANK

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Todd Holzworth

  	
   

  
	
   

  	
  Authorized
  Signer

  	
   

  

 

4

 

EXHIBIT “A”

 

	
  Principal

  	
   

  	
  Loan Date

  	
   

  	
  Maturity

  	
   

  	
  Loan No

  	
   

  	
  Call / Coll

  	
   

  	
  Account

  	
   

  	
  Officer

  	
   

  	
  Initials

  	
   

  
	
  $

  	
  6,000,000.00

  	
   

  	
  09-30-2009

  	
   

  	
  10-01-2010

  	
   

  	
  2187612

  	
   

  	
  9B / 34

  	
   

  	
   

  	
   

  	
  TTH

  	
   

  	
   

  	
   

  
																	

 

References in the boxes above are for Lender’s
use only and do not limit the applicability of this document to any particular
loan or item. 

Any item above containing “***” has been omitted due to text length
limitations.

 

	
  Grantor:

  	
  HF
  FINANCIAL CORP.

  	
  Lender:

  	
  UNITED
  BANKERS’ BANK

  
	
   

  	
  225
  S. Main Ave.

  	
   

  	
  1650
  West 82nd Street

  
	
   

  	
  P.O.
  Box 5000

  	
   

  	
  Suite 1500

  
	
   

  	
  Sioux
  Falls, SD  57104

  	
   

  	
  Bloomington,
  MN  55431

  
	
   

  	
   

  	
   

  	
  (952)
  881-5800

  

 

This EXHIBIT “A” is attached to and by this reference is made
a part of the Commercial Pledge Agreement, dated September 30, 2009, and
executed in connection with a loan or other financial accommodations between
UNITED BANKERS’ BANK and HF FINANCIAL CORP.

 

Commercial Pledge Agreement from HF FINANCIAL CORP. pledging 1,510,000 shares of stock
of HOME FEDERAL BANK (hereafter referred to as the “Pledged
Shares”). The Pledged Shares include the certificates representing the Pledged
Shares, and all dividends, cash, instruments and other property from time to
time received, receivable, or otherwise distributed in respect of or in
exchange for any or all of the Pledged Shares. Additional shares of stock of
any issuer of the Pledged Shares from time to time acquired by the Owner in any
manner, and the certificates representing such additional shares, and all
dividends, cash, instruments and other property from time to time received, receivable,
or otherwise distributed in respect of or in exchange for any or all such
shares, and all proceeds and products of any of the above constitute the
collateral (“Collateral”).

 

Owner represents and warrants to Lender that Owner has delivered to
Lender all certificated Pledged Shares together with such additional writings, including
without limitation, assignments and stock powers with respect thereto as Lender
shall request.

 

Owner hereby agrees to account fully for and properly deliver to Lender,
in the form received, any dividend or any other distribution on account of the
Pledged Shares whether in securities or property by way of stock split, spin-off,
split-up or reclassification, combination of shares or the like, or in any case
of any reorganization, consolidation or merger; provided, however, until there
shall have occurred an Event of Default [as defined in the Commercial Security
Agreement], Owner shall be entitled to retain any cash dividends paid on
account of the Pledged Shares out of retained earnings of the issuer.

 

On the occurrence of an Event of Default, Lender may, at its option, and
without notice to or demand on Owner, and in addition to all other rights and
remedies available to Lender under this Agreement or any other collateral
documents, at law, in equity or otherwise, do any one or more of the following:

 

A.            Restrict prospective bidders or
purchasers of Pledged Shares to persons or entities who (i) will represent
and agree that they are purchasing for their own account, for investment, and
not with a view to the distribution or sale of any of the Pledged Shares; and (ii) satisfy
the offeree and purchaser requirements for a valid private placement
transaction under Section 4(2) of the Securities Act of 1933, as
Amended (the “Act”), and under Securities and Exchange Commission Release Nos. 33-6383;
34-18524; 35-22407; 39-700; IC-12264; AS-306, or under any similar statute, rule or
regulation. Owner agrees that disposition of the Pledged Shares pursuant to any
private sale may, as provided above, be at prices and on other terms less
favorable than if the Pledged Shares were sold at public sale and that Lender
has no obligation to delay the sale of any Pledged Shares for public sale under
the Act.

 

B.            Exercise all voting and other rights
as a holder of the Collateral.

 

C.            Owner agrees that a private sale or
sales made under the foregoing circumstances shall be deemed to have been made
in a commercially reasonable manner.

 

D.            In the event that Lender elects to
sell the Pledged Shares, or part of them, and there is a public market for the
Pledged Shares, in a public sale, Owner shall use his best efforts to register
and qualify the Pledged Shares, or any applicable part thereof, under the Act
and all State Blue Sky or Securities Laws required by the proposed terms of
sale, and all expenses thereof shall be payable by Owner, including, but not
limited to, all costs of (i) registration or qualification of any Pledged
Shares, under the Act or any State Blue Sky or Securities Laws or pursuant to
any applicable rule or regulation issued pursuant thereto, and (ii) sale
of such Pledged Shares, including, but not limited to, brokers’ or underwriters’
commissions, fees or discounts, accounting and legal fees and disbursements, costs
of printing and other expenses of transfer and sale.

 

E.             If any consent approval or
authorization of any state, municipal or other governmental department, agency
or authority shall be necessary to effectuate any sale or other disposition of
Pledged Shares, or any part thereof, Owner shall execute such applications and
other instruments as may be required in connection with securing any such
consent, approval or authorization, and will otherwise use its best efforts to
secure the same.

 

F.             Owner shall be given ten (10) business
days prior notice of the time and place of any public sale or the time after
which any private sale or any other intended disposition of the Pledged Shares
is to be made, which notice Owner hereby agrees shall be deemed reasonable
notice thereof.

 

THIS EXHIBIT “A” IS EXECUTED ON SEPTEMBER 30, 2009.

 

	
  GRANTOR:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  HF FINANCIAL CORP.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Darrel
  L. Posegate

  	
   

  
	
   

  	
  Darrel
  L. Posegate, Executive Vice President of HF

  	
   

  
	
   

  	
  FINANCIAL CORP.

  	
   

  
	
   

  	
   

  
	
  LENDER:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  UNITED BANKERS’ BANK

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Todd Holzworth

  	
   

  
	
   

  	
  Authorized
  Signer

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