Document:

Laitinen Fee Agreement

    

      EXHIBIT
        10.3

      

      HOMEFEDERAL
        BANK

      DIRECTOR
        DEFERRED FEE AGREEMENT

      

      WHEREAS
        THIS AGREEMENT AMENDS AND RESTATES the prior HomeFederal Bank Directors Deferred
        Compensation Plan (the “Plan”) between the HomeFederal Bank and the Director
        effective April 1, 1992, as amended by the First Amendment dated February
        18,
        1993, the Second Amendment effective June 1, 1992, and the Third Amendment
        effective July 1, 1996 (collectively, the Plan, the First Amendment and the
        Second Amendment are referred to as the “Prior Agreement”), this DIRECTOR
        DEFERRED FEE AGREEMENT (the “Agreement”) is made this _______ day of
        ________________, 2005, by HOMEFEDERAL BANK (the “Bank”), a federally-chartered
        bank located in Columbus, Indiana and David W. Laitinen (the “Director”). The
        purpose of this Agreement is to encourage the Director to remain a member
        of the
        Bank’s Board of Directors. 

        

      Article
        1

      Definitions

      

      Whenever
        used in this Agreement, the following words and phrases shall have the meanings
        specified:

      

      
        	
                1.1

              	
                “Beneficiary”
                  means each designated person, or the estate of a deceased Director,
                  entitled to benefits, if any, upon the death of the Director determined
                  pursuant to Article 6.

              

      

      

      
        	
                1.2

              	
                “Beneficiary
                  Designation Form”
                  means the form established from time to time by the Plan Administrator
                  that the Director completes, signs and returns to the Plan Administrator
                  to designate one or more
                  beneficiaries.

              

      

      

      
        	
                1.3

              	
                “Board”
                  means the Board of Directors of the Bank as from time to time
                  constituted.

              

      

      

      
        	
                1.4

              	
                “Code”
                  means the Internal Revenue Code of 1986, as
                  amended.

              

      

      

      
        	
                1.5

              	
                “Corporation”
                  means Home Federal Bancorp or its
                  successor.

              

      

      

      
        	
                1.6

              	
                “Deferral
                  Account”
                  means the balance of the Director’s accumulated fee deferrals, plus
                  accrued interest. 

              

      

      

      
        	
                1.7

              	
                “Distribution
                  Period Crediting Rate”
                  means a rate equal to 2.00% over the average yield on the 10-year
                  Treasury
                  Bond for the month prior to commencement of benefit payments, provided
                  that such crediting rate shall not be more than 12.00%, nor less
                  than
                  8.00%.

              

      

      

      
        	
                1.8

              	
                “Early
                  Termination”
                  means Separation from Service before Normal Benefit Age for reasons
                  other
                  than death or Termination for
                  Cause.

              

      

      

      
        	
                1.9

              	
                “Effective
                  Date”
                  means January 1, 2006.

              

      

      

      
        	
                1.10

              	
                “Normal
                  Benefit Age”
                  means the Director attaining age sixty
                  (60).

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                1.11

              	
                “Plan
                  Administrator”
                  means the plan administrator described in Article
                  8.

              

      

      

      
        	
                1.12

              	
                “Plan
                  Year”
                  means the calendar year. 

              

      

      

      
        	
                1.13

              	
                “Pre-Distribution
                  Period Crediting Rate”
                  means an annual rate equal to the trailing 3-year average ROE,
                  provided
                  such average ROE shall not exceed 12.00%, nor be less than 8.00%.
                  For
                  example, the rate for 2006 will be the average ROE for 2003, 2004,
                  and
                  2005. 

              

      

      

      
        	
                1.14

              	
                “Prescribed
                  Form of Payment”
                  shall mean one hundred eighty (180) equal monthly installments.
                  Interest
                  shall be credited on the unpaid Deferral Account balance during
                  the
                  payment period at an annual rate equal to the Distribution Period
                  Crediting Rate, compounded monthly. The Distribution Period Crediting
                  Rate
                  shall be set at the inception of the payment period and shall not
                  be
                  adjusted thereafter.

              

      

      

      
        	
                1.15

              	
                “ROE”
                  means the average return on equity, as reported in the published
                  financial
                  statements of the Corporation. 

              

      

      

      
        	
                1.16

              	
                “Rollover
                  Balance”
                  means the balance of $283,661 from the Prior
                  Agreement.

              

      

      

      
        	
                1.17

              	
                “Secretary”
                  means the Secretary of the United States Department of the
                  Treasury.

              

      

      

      
        	
                1.18

              	
                “Separation
                  from Service”
                  means that the Director’s service, as a director and independent
                  contractor, to the Bank and any member of a controlled group as
                  defined in
                  Section 414 of the Code to which the Bank belongs, has terminated
                  for any
                  reason, other than by reason of a leave of absence approved by
                  the Bank or
                  the death of the Director.

              

      

      

      
        	
                1.19

              	
                “Termination
                  for Cause”
                  has that meaning set forth in Section
                  7.1.

              

      

      

      Article
        2

      Relationship
        of this Agreement to the Prior Agreement

      

      Inasmuch
        as all amounts payable to or on behalf of the Director under this Agreement
        were
        accrued and vested under the Prior Agreement prior to January 1, 2005, it
        is the
        express intent of this Agreement that:

      

      (a)    this
        Agreement and the Prior Agreement shall not be subject to Section 409A of
        the
        Code;

      

      (b)    no
        provision of this Agreement shall be enforceable with respect to the vested
        accrued benefit of the Directors as of December 31, 2004, to the extent it
        would
        constitute a “material modification” under Treasury Regulation section
        1.409A-6(a)(4);

      

      (c)    to
        the
        extent any benefit is deemed to have accrued or vested on or after January
        1,2005, this Agreement shall be deemed to be amended to the extent minimally
        necessary to comply with Section 409A of the Code; and

      

      (d)    except
        for
        the elimination of payment in the event of the Director’s disability, the timing

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

          and
        form of payment of benefits reflected in this Agreement are intended to be
        the
        same as provided in the Prior Agreement (and shall be so
        interpreted).

      

      

      Article
        3

      Deferral
        Account

      

      
        	
                3.1

              	
                Crediting.
                  The Bank shall credit to the Director’s Deferral Account the following
                  amounts:

              

      

      

      
        	 	
                3.1.1

              	
                Rollover.
                  The Rollover Balance from the Prior
                  Agreement.

              

      

      

      
        	 	
                3.1.2

              	
                Interest.
                  On
                  the last day of each month and continuing until the commencement
                  of
                  benefit payments, interest shall be credited on the unpaid Deferral
                  Account balance at an annual rate equal to the Pre-Distribution
                  Period
                  Crediting Rate, compounded monthly.

              

      

      

      
        	
                3.2

              	
                Statement
                  of Accounts.
                  The Plan Administrator shall provide to the Director, within one
                  hundred
                  twenty (120) days after the end of each Plan Year, a statement
                  setting
                  forth the Deferral Account balance.

              

      

      

      
        	
                3.3

              	
                Accounting
                  Device Only.
                  The Deferral Account is solely a device for measuring amounts to
                  be paid
                  under this Agreement. The Deferral Account is not a trust fund
                  of any
                  kind. The Director is a general unsecured creditor of the Bank
                  for the
                  distribution of benefits. The benefits represent the mere Bank
                  promise to
                  pay such benefits. The Director's rights are not subject in any
                  manner to
                  anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
                  attachment, or garnishment by the Director's
                  creditors.

              

      

      

      Article
        4

      Distributions
        During Lifetime

      

      
        	
                4.1

              	
                Normal
                  Retirement Benefit.
                  Upon the Director reaching Normal Benefit Age, the Bank shall pay
                  to the
                  Director the benefit described in this Section 4.1 in lieu of any
                  other
                  benefit under this Article.

              

      

      

      
        	 	
                4.1.1

              	
                Amount
                  of Benefit.
                  The benefit under this Section 4.1 is the Deferral Account balance
                  at the
                  Director's Normal Benefit Age.

              

      

      

      
        	 	
                4.1.2

              	
                Distribution
                  of Benefit.
                  The Bank shall pay the benefit to the Director in the Prescribed
                  Form of
                  Payment commencing as of the first day of the month following the
                  Director’s Normal Benefit Age.

              

      

      

      
        	
                4.2

              	
                Early
                  Termination Benefit.
                  In the event of the Director’s Early Termination, the Bank shall pay to
                  the Director the benefit described in this Section 4.2 in lieu
                  of any
                  other benefit under this Article.

              

      

      

      
        	 	
                4.2.1

              	
                Amount
                  of Benefit.
                  The benefit under this Section 4.2 is the Deferral Account
                  

              

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

         
        balance at the Director’s Normal Benefit Age.

      

      
        	 	
                4.2.2

              	
                Distribution
                  of Benefit.
                  The Bank shall pay the benefit to the Director in the Prescribed
                  Form of
                  Payment commencing on the first day of the month following the
                  Director’s
                  Normal Benefit Age.

              

      

      

      
        	
                4.3

              	
                Restriction
                  on Timing of Distribution. 
                  Notwithstanding any provision of this Agreement to the contrary
                  and to the
                  extent this Agreement is subject to Section 409A of the Code, if
                  the
                  Director is considered a “specified employee” under Section
                  409A of the Code and regulations thereunder, benefit
                  distributions that qualify as a "separation from service" under
                  Section 409A of the Code and regulations thereunder may not commence
                  earlier than six (6) months after the date of such separation
                  from service. In the event this Section 4.3 applies, the Prescribed
                  Form of Payment shall be deemed to have commenced when it otherwise
                  would
                  have and any monthly payments that may not be made during the first
                  six
                  (6) months following separation from service shall be paid in a
                  lump sum
                  as of the first month payment is
                  permitted.

              

      

      

      Article
        5

      Distributions
        at Death

      

      
        	
                5.1

              	
                Death
                  During Active Service.
                  If the Director dies while in active service to the Bank, the Bank
                  shall
                  pay to the Beneficiary the greater of the Deferral Account or $539,393.
                  This benefit shall be paid to the Beneficiary, in the Prescribed
                  Form of
                  Payment commencing on the first day of the month following receipt
                  by the
                  Bank of the Director’s death
                  certificate.

              

      

      

      
        	
                5.2

              	
                Death
                  During Distribution of a Benefit.
                  If the Director dies after any benefit distributions have commenced
                  under
                  this Agreement but before receiving all such distributions, the
                  Bank shall
                  pay to the Beneficiary the remaining benefits at the same time
                  and in the
                  same amounts as they would have been paid to the Director had the
                  Director
                  survived. 

              

      

      

      
        	
                5.3

              	
                Death
                  After Separation from Service But Before Benefit Distributions
                  Commence.
                  If the Director is entitled to benefit distributions under this
                  Agreement,
                  but dies prior to the commencement of said benefit distributions,
                  the Bank
                  shall pay to the Beneficiary the same benefits that the Director
                  was
                  entitled to prior to death except that the benefit distributions
                  shall
                  commence on the first day of the month following receipt by the
                  Bank of
                  the Director’s death certificate. 

              

      

      

      Article
        6

      Beneficiaries

      

      
        	
                6.1

              	
                Beneficiary.
                  Each Director shall have the right, at any time, to designate a
                  Beneficiary(ies) to receive any benefits payable under the Agreement
                  to a
                  Beneficiary upon the death of the Director. The Beneficiary designated
                  under this Agreement may be the same as or different from the beneficiary
                  designation under any other plan of the Bank in which the Director
                  participates.

              

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      
        	
                6.2

              	
                Beneficiary
                  Designation Change.
                  The Director shall designate a Beneficiary by completing and signing
                  the
                  Beneficiary Designation Form, and delivering it to the Plan Administrator
                  or its designated agent. The Director's beneficiary designation
                  shall be
                  deemed automatically revoked if the Beneficiary predeceases the
                  Director
                  or if the Director names a spouse as Beneficiary and the marriage
                  is
                  subsequently dissolved. The Director shall have the right to change
                  a
                  Beneficiary by completing, signing and otherwise complying with
                  the terms
                  of the Beneficiary Designation Form and the Plan Administrator’s rules and
                  procedures, as in effect from time to time. Upon the acceptance
                  by the
                  Plan Administrator of a new Beneficiary Designation Form, all Beneficiary
                  designations previously filed shall be cancelled. The Plan Administrator
                  shall be entitled to rely on the last Beneficiary Designation Form
                  filed
                  by the Director and accepted by the Plan Administrator prior to
                  the
                  Director’s death.

              

      

      

      
        	
                6.3

              	
                Acknowledgment.
                  No designation or change in designation of a Beneficiary shall
                  be
                  effective until received, accepted and acknowledged in writing
                  by the Plan
                  Administrator or its designated
                  agent.

              

      

      

      
        	
                6.4

              	
                No
                  Beneficiary Designation.
                  If the Director dies without a valid Beneficiary designation, or
                  if all
                  designated Beneficiaries predecease the Director, then the Director’s
                  spouse shall be the designated Beneficiary. If the Director has
                  no
                  surviving spouse, the benefits shall be made to the personal
                  representative of the Director's
                  estate.

              

      

      

      
        	
                6.5

              	
                Facility
                  of Distribution.
                  If the Plan Administrator determines in its discretion that a benefit
                  is
                  to be paid to a minor, to a person declared incompetent, or to
                  a person
                  incapable of handling the disposition of that person’s property, the Plan
                  Administrator may direct distribution of such benefit to the guardian,
                  legal representative or person having the care or custody of such
                  minor,
                  incompetent person or incapable person. The Plan Administrator
                  may require
                  proof of incompetence, minority or guardianship as it may deem
                  appropriate
                  prior to distribution of the benefit. Any distribution of a benefit
                  shall
                  be a distribution for the account of the Director and the Beneficiary,
                  as
                  the case may be, and shall be a complete discharge of any liability
                  under
                  the Agreement for such distribution
                  amount.

              

      

      

      Article
        7

      General
        Limitations

      

      
        	
                7.1

              	
                Termination
                  for Cause.
                  Notwithstanding any provision of this Agreement to the contrary,
                  the Bank
                  shall not pay any benefit under this Agreement that is in excess
                  of the
                  Director’s Deferrals (i.e. Deferral Account minus interest credited
                  thereon) if Director’s service is terminated by the Board or by the Bank's
                  shareholder(s) for:

              

      

      

      
        	 	
                (a)
                  

              	
                Gross
                  negligence or gross neglect of duties to the Bank;
                  or

              

      

      
        	 	
                (b)
                  

              	
                Conviction
                  of a felony or of a gross misdemeanor involving moral turpitude
                  in
                  connection with the Director’s service to the Bank;
                  or

              

      

      
        	 	
                (c)
                  

              	
                Fraud,
                  disloyalty, dishonesty or willful violation of any law or significant
                  Bank
                  policy committed in connection with the Director's service and
                  resulting
                  in an adverse effect on the Bank;
                  or

              

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      
        	 	
                (d)
                  

              	
                Issuance
                  of a final removal or prohibition order issued by a state or federal
                  banking agency with jurisdiction over the Bank.

              

      

      

      
        	
                7.2

              	
                No
                  Withdrawal Election.
                  Except as expressly provided herein, the Director may not elect,
                  at any
                  time, to withdraw any portion of the Deferral Account balance. 

              

      

      

      Article
        8

      Administration
        of Agreement

      

      

      

      8.1    Plan
        Administrator Duties.
        This
        Agreement shall be administered by a Plan Administrator which shall consist
        of
        the Board, or such committee or person(s) as the Board shall appoint. The
        Plan
        Administrator shall also have the discretion and authority to (i) make, amend,
        interpret and enforce all appropriate rules and regulations for the
        administration of this Agreement and (ii) decide or resolve any and all
        ques-tions including interpretations of this Agreement, as may arise in
        connection with the Agreement.

      

      8.2    Agents.
        In the
        administration of this Agreement, the Plan Administrator may employ agents
        and
        delegate to them such administrative duties as it sees fit (including acting
        through a duly appointed representative), and may from time to time consult
        with
        counsel who may be counsel to the Bank.

      

      8.3    Binding
        Effect of Decisions.
        The
        decision or action of the Plan Administrator with respect to any question
        arising out of or in connection with the administration, interpretation and
        application of the Agreement and the rules and regulations promulgated
hereunder
        shall be final and conclusive and binding upon all persons having any interest
        in the Agreement.

      

      8.4    Indemnity
        of Plan Administrator.
        The
        Bank shall indemnify and hold harmless the members of the Plan Administrator
        against any and all claims, losses, damages, expenses or liabilities arising
        from any action or failure to act with respect to this Agreement, except
        in
        the case of willful misconduct by the Plan Administrator or any of its
        members.

      

      8.5    Bank
        Information.
        To
        enable the Plan Administrator to perform its functions, the Bank shall supply
        full and timely information to the Plan Administrator on all matters relating
        to
        the date and circumstances of the death or Separation from Service of the
        Director, and such other pertinent information as the Plan Administrator
        may
        reasonably require.

      

      Article
        9

      Claims
        and Review Procedures

      

      
        	
                9.1

              	
                Claims
                  Procedure.
                  The Director or Beneficiary (“claimant”) who has not received benefits
                  under the Agreement that he or she believes should be paid shall
                  make a
                  claim for such benefits as follows:

              

      

      

      
        	 	
                9.1.1

              	
                Initiation
                  - Written Claim.
                  The claimant initiates a claim by submitting to the Bank a written
                  claim
                  for the benefits.

              

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      
        	 	
                9.1.2

              	
                Timing
                  of Bank Response.
                  The Bank shall respond to such claimant within 90 days after receiving
                  the
                  claim. If the Bank determines that special circumstances require
                  additional time for processing the claim, the Bank can extend the
                  response
                  period by an additional 90 days by notifying the claimant in writing,
                  prior to the end of the initial 90-day period, that an additional
                  period
                  is required. The notice of extension must set forth the special
                  circumstances and the date by which the Bank expects to render
                  its
                  decision.

              

      

      

      
        	 	
                9.1.3

              	
                Notice
                  of Decision.
                  If the Bank denies part or all of the claim, the Bank shall notify
                  the
                  claimant in writing of such denial. The Bank shall write the notification
                  in a manner calculated to be understood by the claimant. The notification
                  shall set forth:

              

      

      
        	 	
                (a)

              	
                The
                  specific reasons for the denial, 

              

      

      
        	 	
                (b)

              	
                A
                  reference to the specific provisions of the Agreement on which
                  the denial
                  is based, 

              

      

      
        	 	
                (c)

              	
                A
                  description of any additional information or material necessary
                  for the
                  claimant to perfect the claim and an explanation of why it is needed,
                  and

              

      

      
        	 	
                (d)

              	
                An
                  explanation of the Agreement’s review procedures and the time limits
                  applicable to such procedures.

              

      

      

      
        	
                9.2

              	
                Review
                  Procedure.
                  If the Bank denies part or all of the claim, the claimant shall
                  have the
                  opportunity for a full and fair review by the Bank of the denial,
                  as
                  follows:

              

      

      

      
        	 	
                9.2.1

              	
                Initiation
                  - Written Request.
                  To initiate the review, the claimant, within 60 days after receiving
                  the
                  Bank’s notice of denial, must file with the Bank a written request for
                  review.

              

      

      

      
        	 	
                9.2.2

              	
                Additional
                  Submissions - Information Access.
                  The claimant shall then have the opportunity to submit written
                  comments,
                  documents, records and other information relating to the claim.
                  The Bank
                  shall also provide the claimant, upon request and free of charge,
                  reasonable access to, and copies of, all documents, records and
                  other
                  information relevant to the claimant’s claim for
                  benefits.

              

      

      

      
        	 	
                9.2.3

              	
                Considerations
                  on Review.
                  In considering the review, the Bank shall take into account all
                  materials
                  and information the claimant submits relating to the claim, without
                  regard
                  to whether such information was submitted or considered in the
                  initial
                  benefit determination.

              

      

      

      
        	 	
                9.2.4

              	
                Timing
                  of Bank Response.
                  The Bank shall respond in writing to such claimant within 60 days
                  after
                  receiving the request for review. If the Bank determines that special
                  circumstances require additional time for processing the claim,
                  the Bank
                  can extend the response period by an additional 60 days by notifying
                  the
                  claimant in writing, prior to the end of the initial 60-day period,
                  that
                  an additional period is required. The notice of extension must
                  set forth
                  the special circumstances and the date by which the Bank expects
                  to render
                  its decision.

              

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      
        	 	
                9.2.5

              	
                Notice
                  of Decision.
                  The Bank shall notify the claimant in writing of its decision on
                  review.
                  The Bank shall write the notification in a manner calculated to
                  be
                  understood by the claimant. The notification shall set
                  forth:

              

      

      
        	 	
                (a)

              	
                The
                  specific reasons for the denial, 

              

      

      
        	 	
                (b)

              	
                A
                  reference to the specific provisions of the Agreement on which
                  the denial
                  is based, and

              

      

      
        	 	
                (c)

              	
                A
                  statement that the claimant is entitled to receive, upon request
                  and free
                  of charge, reasonable access to, and copies of, all documents,
                  records and
                  other information relevant to the claimant’s claim for
                  benefits.

              

      

      

      Article
        10

      Amendments
        and Termination

      

      
        	
                10.1

              	
                Amendment. 
                  This Agreement may be amended only by a written agreement signed
                  by the
                  Bank and the Director.  Provided, however, that the Bank may amend
                  this Agreement to conform with legislative requirements or written
                  directives to the Bank from its banking regulators.
                  

              

      

      

      
        	
                10.2

              	
                Termination.
                  This Agreement may be terminated only by a written agreement signed
                  by the
                  Bank and the Director.  Upon such termination, the Deferral Account
                  balance shall be paid to the Director in the form and at the earliest
                  possible time as specified in this Agreement and permitted under
                  Section
                  409A of the Code and any applicable subsequent
                  authority.

              

      

      

      Article
        11

      Miscellaneous

      

      
        	
                11.1

              	
                Binding
                  Effect.
                  This Agreement shall bind the Director and the Bank and their
                  beneficiaries, survivors, executors, administrators and
                  transferees.

              

      

      

      
        	
                11.2

              	
                No
                  Guarantee of Service.
                  This Agreement is not a contract for services. It does not give
                  the
                  Director the right to remain a director of the Bank, nor does it
                  interfere
                  with the Bank's or Bank shareholder(s)' right to discharge the
                  Director.
                  It also does not require the Director to remain a director nor
                  interfere
                  with the Director's right to separate from service at any
                  time.

              

      

      

      
        	
                11.3

              	
                Non-Transferability.
                  Benefits under this Agreement cannot be sold, transferred, assigned,
                  pledged, attached or encumbered in any
                  manner.

              

      

      

      
        	
                11.4

              	
                Tax
                  Withholding.
                  The Bank shall withhold any taxes that are required to be withheld
                  from
                  the benefits provided under this Agreement. The Director acknowledges
                  that
                  the Bank’s sole liability regarding taxes is to forward any amounts
                  withheld to the appropriate taxing
                  authority(ies).

              

      

      

      
        	
                11.5

              	
                Applicable
                  Law.
                  The Agreement and all rights hereunder shall be governed by the
                  laws of
                  the State of Indiana, except to the extent preempted by the laws
                  of the
                  United States of America.

              

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

      
        	
                11.6

              	
                Unfunded
                  Arrangement.
                  The Director and the Beneficiary are general unsecured creditors
                  of the
                  Bank for the distribution of benefits under this Agreement. The
                  benefits
                  represent the mere promise by the Bank to pay such benefits. The
                  rights to
                  benefits are not subject in any manner to anticipation, alienation,
                  sale,
                  transfer, assignment, pledge, encumbrance, attachment, or garnishment
                  by
                  creditors. Any insurance on the Director's life or other informal
                  funding
                  asset is a general asset of the Bank to which the Director and
                  the
                  Beneficiary have no preferred or secured
                  claim.

              

      

      

      
        	
                11.7

              	
                Reorganization.
                  The Bank shall not merge or consolidate into or with another Bank,
                  or
                  reorganize, or sell substantially all of its assets to another
                  bank, firm,
                  or person unless such succeeding or continuing bank, firm, or person
                  agrees to assume and discharge the obligations of the Bank under
                  this
                  Agreement. Upon the occurrence of such event, the term “Bank” as used in
                  this Agreement shall be deemed to refer to the successor or survivor
                  bank.

              

      

      

      
        	
                11.8

              	
                Entire
                  Agreement. This
                  Agreement constitutes the entire agreement between the Bank and
                  the
                  Director as to the subject matter hereof. No rights are granted
                  to the
                  Director by virtue of this Agreement other than those specifically
                  set
                  forth herein.

              

      

      

      
        	
                11.9

              	
                Interpretation.
                  Wherever the fulfillment of the intent and purpose of this Agreement
                  requires, and the context will permit, the use of the masculine
                  gender
                  includes the feminine and use of the singular includes the plural
                  

              

      

      

      
        	
                11.10

              	
                Alternative
                  Action.
                  In the event it shall become impossible for the Bank or the Plan
                  Administrator to perform any act required by this Agreement, the
                  Bank or
                  Plan Administrator may in its discretion perform such alternative
                  act as
                  most nearly carries out the intent and purpose of this Agreement
                  and is in
                  the best interests of the Bank.

              

      

      

      
        	
                11.11

              	
                Headings.
                  Article and section headings are for convenient reference only
                  and shall
                  not control or affect the meaning or construction of any of its
                  provisions.

              

      

      

      
        	
                11.12

              	
                Validity.
                  In case any provision of this Agreement shall be illegal or invalid
                  for
                  any reason, said illegality or invalidity shall not affect the
                  remaining
                  parts hereof, but this Agreement shall be construed and enforced
                  as if
                  such illegal and invalid provision has never been inserted
                  herein.

              

      

      

      
        	
                11.13

              	
                Notice.
                  Any notice or filing required or permitted to be given to the Plan
                  Administrator under this Agreement shall be sufficient if in writing
                  and
                  hand-delivered, or sent by registered or certified mail, to the
                  address
                  below:

              

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      
        	 	
                HomeFederal
                  Bank

              	 
	 	
                501
                  Washington St.

              	 
	 	
                P.O.
                  Box 408

              	 
	 	
                Columbus,
                  IN 47201-6229

              	 

      

       

      Such
        notice shall be deemed given as of the date of delivery or, if delivery is
        made
        by mail, as of the date shown on the postmark or the receipt for registration
        or
        certification.

       

      

      Any
        notice or filing required or permitted to be given to the Director under
        this
        Agreement shall be sufficient if in writing and hand-delivered, or sent by
        mail,
        to the last known address of the Director.

      

      

      IN
        WITNESS WHEREOF, the Director and the Bank have signed this Agreement as
        of
        __________________________, 2005.

      

      

      

      
        	
                DIRECTOR:

              	
                BANK:

              	 
	 	 	 
	 	
                HOMEFEDERAL
                  BANK

              
	 	 	 
	 	
                By:

              	 
	
                David
                  W. Laitinen

              	 	 
	 	
                Title:

              	 

      

      
10Gorski Retirement Agreement

    EXHIBIT 10.4

    

    HOMEFEDERAL
      BANK 

    Supplemental
      Executive Retirement Plan

    

    

    HOMEFEDERAL
      BANK

    SUPPLEMENTAL
      EXECUTIVE RETIREMENT AGREEMENT

    

    

    THIS
      SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT (the “Agreement”) is adopted this
      3rd day of November, 2005, by and between HOMEFEDERAL BANK, an Indiana-chartered
      commercial
      bank located in Columbus, Indiana (“Bank”) and
      Mark
      T. Gorski (the “Executive”). The purpose of this Agreement is to provide
      specified benefits to the Executive, a member of a
      select
      group of management or highly compensated employees who contribute materially
      to
      the continued growth, development, and future business success of the
Bank.
      This Agreement shall be unfunded for tax purposes and for purposes of Title
      I of
      the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended from
      time to time. 

    

    Article
      1

    Definitions

    

    Whenever
      used in this Agreement, the following words and phrases shall have the meanings
      specified:

     

    
      	1.1  	
              “Beneficiary”
                means each designated person, or the estate of the deceased Executive,
                entitled to benefits, if any, upon the death of the Executive determined
                pursuant to Article 4.

            

    

    

    
      	1.2  	
              “Beneficiary
                Designation Form”
                means the form established from time to time by the Plan Administrator
                that the Executive completes, signs, and returns to the Plan Administrator
                to designate one or more
                Beneficiaries.

            

    

    

    
      	1.3  	
              “Board”
                means the Board of Directors of the Bank as from time to time
                constituted.

            

    

    

    
      	1.4  	
              “Change
                in Control”
                means a change in the ownership or effective control of the Bank,
                or in
                the ownership of a substantial portion of the assets of the Bank,
                as such
                change is defined in Section 409A of the Code and regulations thereunder.
                

            

    

    

    
      	1.5  	
              “Code”
                means the Internal Revenue Code of 1986, as
                amended.

            

    

    

    
      	1.6  	
              “Disability”
                means Executive (i) is unable to engage in any substantial gainful
                activity by reason of any medically determinable physical or mental
                impairment which can be expected to result in death or can be expected
                to
                last for a continuous period of not less than 12 months, or (ii)
                is, by
                reason of any medically determinable physical or mental impairment
                which
                can be expected to result in death or can be expected to last for
                a
                continuous period of not less than 12 months, receiving income replacement
                benefits for a period of not less than 3 months under an accident
                and
                health plan covering employees of the Executive’s employer. Medical
                determination of Disability may be made by either the Social Security
                Administration or by the provider of an accident or health plan covering
                employees of the Executive’s employer. Upon the request of the Plan
                Administrator, the 

            

    

    
      
        
        

      

      
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    HOMEFEDERAL
      BANK 

    Supplemental
      Executive Retirement Plan

    

    

    Executive
      must submit proof to the Plan Administrator of Social Security Administration’s
      or the provider’s determination.

    

    
      	1.7  	
              “Early
                Termination”
                means Separation from Service before Normal Retirement Age for reasons
                other than death, Disability, Termination for Cause, or following
                a Change
                in Control.

            

    

    

    
      	1.8  	
              “Effective
                Date”
                means July 1, 2005.

            

    

    

    
      	1.9  	
              “Normal
                Retirement Age”
                means the Executive attaining age sixty-five
                (65).

            

    

    

    
      	1.10  	
              “Plan
                Administrator”
                means the plan administrator described in Article
                6.

            

    

    

    
      	1.11  	
              “Plan
                Year”
                means each twelve-month period commencing on July 1 and ending on
                June 30
                of each year. The initial Plan Year shall commence on the Effective
                Date
                of this Agreement and end on the following June 30,
                2006.

            

    

    

    
      	1.12  	
              “Schedule
                A”
                means the schedule attached to this Agreement and made a part hereof.
                Schedule A shall be updated upon a change in any of the benefits
                under
                Articles 2 or 3.

            

    

    

    
      	1.13  	
              “Separation
                from Service”
                means
                that the Executive’s service, as an employee and independent contractor,
                to the Bank and any member of a controlled group as defined in Section
                414
                of the Code to which the Bank belongs, has terminated for any reason,
                other than by reason of a leave of absence approved by the Bank or
                the
                death of the Executive.

            

    

    

    
      	1.14  	
              “Termination
                for Cause”
                has that meaning set forth in Article
                5.

            

    

    

    Article
      2

    Distributions
      During Lifetime

    

    
      	
              2.1

            	
              Normal
                Retirement Benefit.
                If the Executive has a Separation from Service on or after Normal
                Retirement Age, the Bank shall distribute to the Executive the benefit
                described in this Section 2.1 in lieu of any other benefit under
                this
                Article.

            

    

    
      
        	 	 	 

      

      
        	 	
                2.1.1

              	
                Amount
                  of Benefit.
                  The annual benefit under this Section 2.1 is Fifty Thousand Dollars
                  ($50,000). 

              

      

    

    

    
      	 	
              2.1.2

            	
              Distribution
                of Benefit.
                The Bank shall distribute the annual benefit to the Executive in
                twelve
                (12) equal monthly installments commencing on the first day of the
                month
                following the Executive’s Normal Retirement Age. The annual benefit shall
                be distributed to the Executive for fifteen (15)
                years.

            

    

    

    
      	
              2.2

            	
              Early
                Termination Benefit.
                Upon the Executive’s Early Termination, the Bank shall distribute to the
                Executive the benefit described in this Section 2.2 in lieu of any
                other
                benefit under this Article.

            

    

    
      
        
        

      

      
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      BANK 

    Supplemental
      Executive Retirement Plan

    

    
      	 	
              2.2.1

            	
              Amount
                of Benefit.
                The
                annual benefit under this Section 2.2 is the Early Termination benefit
                set
                forth on Schedule A for the Plan Year that ended immediately prior
                to the
                date on which Separation from Service occurs.  

            

    

    

    
      	 	
              2.2.2

            	
              Distribution
                of Benefit.
                The Bank shall distribute the annual benefit to the Executive in
                twelve
                (12) equal monthly installments commencing within Sixty (60) days
                following Separation from Service. The annual benefit shall be distributed
                to the Executive for fifteen (15)
                years.

            

    

    

    

    
      	
              2.3

            	
              Disability
                Benefit.
                If
                the Executive’s Disability results in Separation from Service prior to
                Normal Retirement Age, the Bank shall distribute to the Executive
                the
                benefit described in this Section 2.3 in lieu of any other benefit
                under
                this Article.

            

    

    

    
      	 	
              2.3.1

            	
              Amount
                of Benefit. The
                annual benefit under this Section 2.3 is the Disability benefit set
                forth
                on Schedule A for the Plan Year that ended immediately prior to the
                date
                on which Separation from Service due to Disability occurs.
                

            

    

    

    
      	 	
              2.3.2

            	
              Distribution
                of Benefit.
                The Bank shall distribute the annual benefit to the Executive in
                twelve
                (12) equal monthly installments commencing within Sixty (60) days
                following Normal Retirement Age. The annual benefit shall be distributed
                to the Executive for fifteen (15)
                years.

            

    

     

     

    
      	
              2.4

            	
              Change
                in Control Benefit.
                If a Change in Control occurs while the Executive is a full time
                employee
                and prior to his Normal Retirement Age, the Bank shall distribute
                to the
                Executive the benefit described in this Section 2.4 in lieu of any
                other
                benefit under this Article. 

            

    

     

    
      	 	
              2.4.1

            	
              Amount
                of Benefit. The
                annual benefit under this Section 2.4 is the Change in Control benefit
                set
                forth on Schedule A for the Plan Year that ended immediately prior
                to the
                date on which Separation from Service occurs.

            

    

    

    
      	2.4.2  	
              Distribution
                of Benefit.
                The Bank shall distribute the annual benefit to the Executive in
                twelve
                (12) equal monthly installments commencing within Sixty (60) days
                following Separation from Service. The annual benefit shall be distributed
                to the Executive for fifteen (15)
                years.

            

    

    

    
      	2.4.3  	
              Parachute
                Payments.
                Notwithstanding
                any provision of this Agreement to the contrary, to the extent any
                distribution(s), if made, under this Section 2.4 would be treated
                as an
                “excess parachute payment” under Section 280G of the Code, the Bank shall
                reduce or delay the distribution(s) to the extent it would not be
                an
                excess parachute payment.

            

    

    
      
        
        

      

      
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      BANK 

    Supplemental
      Executive Retirement Plan

    

    
      	
              2.5

            	
              Restriction
                on Timing of Distribution. 
                Notwithstanding any provision of this Agreement to the contrary,
                if the
                Executive is considered a “specified employee” under Section
                409A of the Code  and regulations thereunder, benefit
                distributions that qualify  as a "separation from service" 
                under Section 409A of the Code and regulations thereunder may not
                commence
                earlier than six (6) months after the date of such  separation
                from service.

            

    

    

    Article
      3

    Distribution
      at Death

    

    
      	
              3.1

            	
              Death
                During Active Service.
                If the Executive dies while in the active service to the Bank, the
                Bank
                shall distribute to the Beneficiary the benefit described in this
                Section
                3.1. This benefit shall be distributed in lieu of the benefits under
                Article 2.

            

    

    

    
      	3.1.1  	
              Amount
                of Benefit.
                The
                benefit under this Section 3.1 is the death benefit set forth on
                Schedule
                A for the most recent Plan Year prior to the Executive’s date of death.
                

            

    

    

    
      	 	
              3.1.2

            	
              Distribution
                of Benefit.
                Unless
                otherwise elected by the Executive on the Election Form, the Bank
                shall
                pay the benefit to the Beneficiary in a lump sum, within Sixty (60)
                days
                following receipt by the Bank of the Executive's death certificate.
                If the
                Executive elects an alternative form of payment, the benefit shall
                be
                determined by calculating an annuity for the elected number of years,
                crediting interest on the unpaid balance at an annual rate equal
                to the
                yield on a 10-year U.S. Treasury Note, measured as of the end of
                the month
                prior to the date of the Executive’s
                death.

            

    

    

    
      	
              3.2

            	
              Death
                During Distribution of a Benefit.
                If the Executive dies after any benefit distributions have commenced
                under
                this Agreement but before receiving all such distributions, the Bank
                shall
                distribute to the Beneficiary the remaining benefits at the same
                time and
                in the same amounts they would have been distributed to the Executive
                had
                the Executive survived.

            

    

    

    
      	
              3.3

            	
              Death
                After Separation from Service But Before Benefit Distributions
                Commence. If
                the Executive is entitled to benefit distributions under this Agreement,
                but dies prior to the commencement of said benefit distributions,
                the Bank
                shall distribute to the Beneficiary the same benefits that the Executive
                was entitled to prior to death except that the benefit distributions
                shall
                commence within Sixty (60) days following receipt by the Bank of
                the
                Executive’s death certificate.

            

    

    

    Article
      4

    Beneficiaries

    

    
      	
              4.1

            	
              Beneficiary.
                The
                Executive shall have the right, at any time, to designate a Beneficiary(ies)
                to receive any benefit distributions under this Agreement to a
                Beneficiary

            

    

    
 

    
      
        
        

      

      
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    HOMEFEDERAL
      BANK 

    Supplemental
      Executive Retirement Plan

    

    

       
      upon the death of the Executive. The Beneficiary designated under this Agreement
      may be the same as or different from the beneficiary designation under any
      other
      plan of the Bank in which the Executive participates. 

    

    
      	
              4.2

            	
              Beneficiary
                Designation: Change.
                The Executive shall designate a Beneficiary by completing and signing
                the
                Beneficiary Designation Form, and delivering it to the Plan Administrator
                or its designated agent. The Executive's beneficiary designation
                shall be
                deemed automatically revoked if the Beneficiary predeceases the Executive
                or if the Executive names a spouse as Beneficiary and the marriage
                is
                subsequently dissolved. The Executive shall have the right to change
                a
                Beneficiary by completing, signing and otherwise complying with the
                terms
                of the Beneficiary Designation Form and the Plan Administrator’s rules and
                procedures, as in effect from time to time. Upon the acceptance by
                the
                Plan Administrator of a new Beneficiary Designation Form, all Beneficiary
                designations previously filed shall be cancelled. The Plan Administrator
                shall be entitled to rely on the last Beneficiary Designation Form
                filed
                by the Executive and accepted by the Plan Administrator prior to
                the
                Executive’s death.

            

    

    

    
      	
              4.3

            	
              Acknowledgment.
                No designation or change in designation of a Beneficiary shall be
                effective until received, accepted and acknowledged in writing by
                the Plan
                Administrator or its designated
                agent.

            

    

    

    
      	
              4.4

            	
              No
                Beneficiary Designation.
                If the Executive dies without a valid beneficiary designation, or
                if all
                designated Beneficiaries predecease the Executive, then the Executive’s
                spouse shall be the designated Beneficiary. If the Executive has
                no
                surviving spouse, the benefits shall be made to the personal
                representative of the Executive's
                estate.

            

    

     

    
      	
              4.5

            	
              Facility
                of Distribution.
                If
                the Plan Administrator determines in its discretion that a benefit
                is to
                be distributed to a minor, to a person declared incompetent, or to
                a
                person incapable of handling the disposition of that person’s property,
                the Plan Administrator may direct distribution of such benefit to
                the
                guardian, legal representative or person having the care or custody
                of
                such minor, incompetent person or incapable person. The Plan Administrator
                may require proof of incompetence, minority or guardianship as it
                may deem
                appropriate prior to distribution of the benefit. Any distribution
                of a
                benefit shall be a distribution for the account of the Executive
                and the
                Executive’s Beneficiary, as the case may be, and shall be a complete
                discharge of any liability under the Agreement for such distribution
                amount.

            

    

    

    Article
      5

    General
      Limitations

    

    
      	5.1
                	
              Termination
                for Cause.
                Notwithstanding any provision of this Agreement to the contrary,
                the Bank
                shall not distribute any benefit under this Agreement if Executive’s
                service is terminated by the Board
                for:

            

    

    

    
      	(a)
                	
              Gross
                negligence or gross neglect of duties to the Bank;
                or

            

    

    
      
        
        

      

      
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      BANK 

    Supplemental
      Executive Retirement Plan

    

    

    
      	(b)
                	
              Conviction
                of a felony or of a gross misdemeanor involving moral turpitude in
                connection with the Executive’s service with the Bank; or
                

            

    

    
      	(c)
                	
              Fraud,
                disloyalty, dishonesty or willful violation of any law or significant
                Bank
                policy committed in connection with the Executive's service and resulting
                in a material adverse effect on the
                Bank.

            

    

    

    
      	
              5.2

            	
              Suicide
                or Misstatement.
                No benefits shall be distributed if the Executive commits suicide
                within
                two years after the Effective Date of this Agreement, or if an insurance
                company which issued a life insurance policy covering the Executive
                and
                owned by the Bank denies coverage (i) for material misstatements
                of fact
                made by the Executive on an application for such life insurance,
                or (ii)
                for any other reason; provided, however that the Bank shall evaluate
                the
                reason for the denial, and upon advice of legal counsel and in its
                sole
                discretion, consider judicially challenging any
                denial.

            

    

    

    
      	5.3  	
              Removal. Notwithstanding
                any provision of this Agreement to the contrary, the Bank shall not
                distribute any benefit under this Agreement if the Executive is subject
                to
                a final removal or prohibition order issued by an appropriate federal
                banking agency pursuant to Section 8(e) of the Federal Deposit Insurance
                Act ("FDIA").

            

    

    

    
      	5.4  	
              Non-compete
                Provision.
                The Executive shall forfeit any non-distributed benefits under this
                Agreement if during the term of this Agreement and for within twenty-four
                (24) months following a Separation from Service, the Executive, directly
                or indirectly, either as an individual or as a proprietor, stockholder,
                partner, officer, director, employee, agent, consultant or independent
                contractor of any individual, partnership, corporation or other entity
                (excluding an ownership interest of three percent (3%) or less in
                the
                stock of a publicly-traded company):

            

    

    

    (i)           
      becomes
      employed by, participates in, or becomes connected in any manner with the
      ownership, management, operation or control of any bank, savings and loan or
      other similar financial institution if the Executive’s responsibilities will
      include providing banking or other financial services within the twenty-five
      (25) miles of any office maintained by the Bank as of the date of the
      Executive’s Separation from Service;

    

    (ii)          
      participates
      in any way in hiring or otherwise engaging, or assisting any other person or
      entity in hiring or otherwise engaging, on a temporary, part-time or permanent
      basis, any individual who was in the service of the Bank as of the date of
      the
      Executive’s Separation from Service; 

     

    (iii)         
assists,
      advises, or serves in any capacity, representative or otherwise, any third
      party
      in any action against the Bank or transaction involving the
      Bank;

    

    (iv)         
      sells,
      offers to sell, provides banking or other financial services, assists any other
      person in selling or providing banking or other financial services, or solicits
      or otherwise competes for, either directly or indirectly, any orders,

    
      
        
        

      

      
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      BANK 

    Supplemental
      Executive Retirement Plan

    

    

    contract,
      or accounts for services of a kind or nature like or substantially similar
      to
      the financial services performed or financial products sold by the Bank (the
      preceding hereinafter referred to as “Services”), to or from any person or
      entity from whom the Executive or the Bank, to the knowledge of the Executive
      provided banking or other financial services, sold, offered to sell or solicited
      orders, contracts or accounts for Services during the three (3) year period
      immediately prior to the Executive’s Separation from Service;

    

    (v)         
      divulges,
      discloses, or communicates to others in any manner whatsoever, any confidential
      information of the Bank, to the knowledge of the Executive, including, but
      not
      limited to, the names and addresses of customers or prospective customers,
      of
      the Bank, as they may have existed from time to time, of work performed or
      services rendered for any customer, any method and/or procedures relating to
      projects or other work developed for the Bank, earnings or other information
      concerning the Bank. The restrictions contained in this subparagraph (v) apply
      to all information regarding the Bank, regardless of the source who provided
      or
      compiled such information. Notwithstanding anything to the contrary, all
      information referred to herein shall not be disclosed unless and until it
      becomes known to the general public from sources other than the
      Executive.

    

    
      	 	
              5.4.1

            	
              Judicial
                Remedies.
                In the event of a breach or threatened breach by the Executive of
                any
                provision of these restrictions, the Executive recognizes the substantial
                and immediate harm that a breach or threatened breach will impose
                upon the
                Bank, and further recognizes that in such event monetary damages
                may be
                inadequate to fully protect the Bank. Accordingly, in the event of
                a
                breach or threatened breach of these restrictions, the Executive
                consents
                to the Bank’s entitlement to such ex parte,
                preliminary, interlocutory, temporary or permanent injunctive, or
                any
                other equitable relief, protecting and fully enforcing the Bank’s rights
                hereunder and preventing the Executive from further breaching any
                of his
                obligations set forth herein. Nothing herein shall be construed as
                prohibiting the Bank from pursuing any other remedies available to
                the
                Bank at law or in equity for such breach or threatened breach, including
                the recovery of damages from the Executive. The Executive expressly
                acknowledges and agrees that: (i) the restrictions set forth in Section
                5.4 hereof are reasonable, in terms of scope, duration, geographic
                area,
                and otherwise, (ii) the protections afforded the Bank in Section
                5.4
                hereof are necessary to protect its legitimate business interest,
                (iii)
                the restrictions set forth in Section 5.4 hereof will not be materially
                adverse to the Executive’s service with the Bank, and (iv) his agreement
                to observe such restrictions forms a material part of the consideration
                for this Agreement.

            

    

    

    
      	 	
              5.4.2

            	
              Overbreadth
                of Restrictive Covenant.
                It is the intention of the parties that if any restrictive covenant
                in
                this Agreement is determined by a court of competent jurisdiction
                to be
                overly broad, then the court should enforce such restrictive
                

            

    

    
      
        
        

      

      
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      BANK 

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      Executive Retirement Plan

    

    

    covenant
      to the maximum extent permitted under the law as to area, breadth and duration.
      

    

    
      	 	
              5.4.3

            	
              Change
                in Control.
                The non-compete provision detailed in Section 5.4 hereof shall not
                be
                enforceable following a Change in
                Control.

            

    

    

    Article
      6

    Administration
      of Agreement

    

    
      	
              6.1

            	
              Plan
                Administrator Duties.
                This Agreement shall be administered by a Plan Administrator which
                shall
                consist of the Board, or such committee or person(s) as the Board
                shall
                appoint. The Plan Administrator shall also have the discretion and
                authority to (i) make, amend, interpret and enforce all appropriate
                rules
                and regulations for the administra-tion of this Agreement and (ii)
                decide
                or resolve any and all ques-tions including interpretations of this
                Agreement, as may arise in connection with the
                Agreement.

            

    

    

    
      	
              6.2

            	
              Agents.
                In the administration of this Agreement, the Plan Administrator may
                employ
                agents and delegate to them such administrative duties as it sees
                fit,
                (including acting through a duly appointed representative), and may
                from
                time to time consult with counsel who may be counsel to the
                Bank.

            

    

    

    
      	
              6.3

            	
              Binding
                Effect of Decisions.
                The decision or action of the Plan Administrator with respect to
                any
                question arising out of or in connection with the administration,
                interpretation and application of the Agreement and the rules and
                regulations promulgated hereunder shall be final and conclusive and
                binding upon all persons having any interest in the Agreement.
                

            

    

    

    
      	
              6.4

            	
              Indemnity
                of Plan Administrator.
                The Bank shall indemnify and hold harmless the members of the Plan
                Administrator against any and all claims, losses, damages, expenses
                or
                liabilities arising from any action or failure to act with respect
                to this
                Agreement, except in the case of willful misconduct by the Plan
                Administrator or any of its
                members.

            

    

    

    
      	
              6.5

            	
              Bank
                Information.
                To enable the Plan Administrator to perform its functions, the Bank
                shall
                supply full and timely information to the Plan Administrator on all
                matters relating to the date and circum-stances of the retirement,
                Disability, death, or Separation from Service of the Executive, and
                such
                other pertinent information as the Plan Administrator may reasonably
                require.

            

    

    

    
      	
              6.6

            	
              Annual
                Statement.
                The Plan Administrator shall provide to the Executive, within one
                hundred
                twenty (120) days after the end of each Plan Year, a statement setting
                forth the benefits to be distributed under this
                Agreement.

            

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    HOMEFEDERAL
      BANK 

    Supplemental
      Executive Retirement Plan

    

    

    Article
      7

    Claims
      and Review Procedures

    

    
      	
              7.1

            	
              Claims
                Procedure.
                An Executive or Beneficiary (“claimant”) who has not received benefits
                under the Agreement that he or she believes should be distributed
                shall
                make a claim for such benefits as
                follows:

            

    

    

    
      	 	
              7.1.1

            	
              Initiation
                - Written Claim.
                The claimant initiates a claim by submitting to the Plan Administrator
                a
                written claim for the benefits.

            

    

    

    
      	 	
              7.1.2

            	
              Timing
                of Plan Administrator Response.
                The Plan Administrator shall respond to such claimant within 90 days
                after
                receiving the claim. If the Plan Administrator determines that special
                circumstances require additional time for processing the claim, the
                Plan
                Administrator can extend the response period by an additional 90
                days by
                notifying the claimant in writing, prior to the end of the initial
                90-day
                period, that an additional period is required. The notice of extension
                must set forth the special circumstances and the date by which the
                Plan
                Administrator expects to render its
                decision.

            

    

    

    
      	 	
              7.1.3

            	
              Notice
                of Decision.
                If the Plan Administrator denies part or all of the claim, the Plan
                Administrator shall notify the claimant in writing of such denial.
                The
                Plan Administrator shall write the notification in a manner calculated
                to
                be understood by the claimant. The notification shall set
                forth:

            

    

    

    
      	 	
              (a)

            	
              The
                specific reasons for the denial;

            

    

    
      	 	
              (b)

            	
              A
                reference to the specific provisions of the Agreement on which the
                denial
                is based;

            

    

    
      	 	
              (c)

            	
              A
                description of any additional information or material necessary for
                the
                claimant to perfect the claim and an explanation of why it is
                needed;

            

    

    
      	 	
              (d)

            	
              An
                explanation of the Agreement’s review procedures and the time limits
                applicable to such procedures; and

            

    

    
      	 	
              (e)

            	
              A
                statement of the claimant’s right to bring a civil action under ERISA
                Section 502(a) following an adverse benefit determination on
                review.

            

    

    

    
      	
              7.2

            	
              Review
                Procedure.
                If the Plan Administrator denies part or all of the claim, the claimant
                shall have the opportunity for a full and fair review by the Plan
                Administrator of the denial, as
                follows:

            

    

    

    

    
      	 	
              7.2.1

            	
              Initiation
                - Written Request.
                To initiate the review, the claimant, within 60 days after receiving
                the
                Plan Administrator’s notice of denial, must file with the Plan
                Administrator a written request for
                review.

            

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    HOMEFEDERAL
      BANK 

    Supplemental
      Executive Retirement Plan

    

    
      	 	
              7.2.2

            	
              Additional
                Submissions - Information Access.
                The claimant shall then have the opportunity to submit written comments,
                documents, records and other information relating to the claim. The
                Plan
                Administrator shall also provide the claimant, upon request and free
                of
                charge, reasonable access to, and copies of, all documents, records
                and
                other information relevant (as defined in applicable ERISA regulations)
                to
                the claimant’s claim for benefits.

            

    

    

    
      	 	
              7.2.3

            	
              Considerations
                on Review.
                In considering the review, the Plan Administrator shall take into
                account
                all materials and information the claimant submits relating to the
                claim,
                without regard to whether such information was submitted or considered
                in
                the initial benefit determination.

            

    

    

    
      	 	
              7.2.4

            	
              Timing
                of Plan Administrator Response.
                The Plan Administrator shall respond in writing to such claimant
                within 60
                days after receiving the request for review. If the Plan Administrator
                determines that special circumstances require additional time for
                processing the claim, the Plan Administrator can extend the response
                period by an additional 60 days by notifying the claimant in writing,
                prior to the end of the initial 60-day period, that an additional
                period
                is required. The notice of extension must set forth the special
                circumstances and the date by which the Plan Administrator expects
                to
                render its decision.

            

    

    

    
      	 	
              7.2.5

            	
              Notice
                of Decision.
                The Plan Administrator shall notify the claimant in writing of its
                decision on review. The Plan Administrator shall write the notification
                in
                a manner calculated to be understood by the claimant. The notification
                shall set forth:

            

    

    

    
      	 	
              (a)

            	
              The
                specific reasons for the denial;

            

    

    
      	 	
              (b)

            	
              A
                reference to the specific provisions of the Agreement on which the
                denial
                is based;

            

    

    
      	 	
              (c)

            	
              A
                statement that the claimant is entitled to receive, upon request
                and free
                of charge, reasonable access to, and copies of, all documents, records
                and
                other information relevant (as defined in applicable ERISA regulations)
                to
                the claimant’s claim for benefits;
                and

            

    

    
      	 	
              (d)

            	
              A
                statement of the claimant’s right to bring a civil action under ERISA
                Section 502(a). 

            

    

    

    Article
      8

    Amendments
      and Termination

     

    
      	
              8.1

            	
              Amendment. 
                This Agreement may be amended only by a written agreement signed
                by the
                Bank and the Executive.  Provided, however, that the Bank may amend
                this Agreement to conform with legislative requirements or written
                directives to the Bank from its banking regulators.
                

            

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    HOMEFEDERAL
      BANK 

    Supplemental
      Executive Retirement Plan

    

    
      	
              8.2
                

            	
               Termination.
                This Agreement may be terminated only by a written agreement signed
                by the
                Bank and the Executive.  Upon such termination, the applicable
                benefits under this Agreement shall be paid to the Executive in the
                form
                and at the earliest possible time as specified in this Agreement
                and
                permitted under Section 409A of the Code and any applicable subsequent
                authority.

            

    

    

    Article
      9

    Miscellaneous

    

    
      	
              9.1

            	
              Binding
                Effect.
                This Agreement shall bind the Executive and the Bank, and their
                beneficiaries, survivors, executors, administrators and
                transferees.

            

    

    

    
      	
              9.2

            	
              No
                Guarantee of Employment.
                This Agreement is not a contract for employment. It does not give
                the
                Executive the right to remain as an employee of the Bank, nor does
                it
                interfere with the Bank's right to discharge the Executive. It also
                does
                not require the Executive to remain an employee nor interfere with
                the
                Executive's right to separate from service at any
                time.

            

    

    

    
      	
              9.3

            	
              Non-Transferability.
                Benefits under this Agreement cannot be sold, transferred, assigned,
                pledged, attached or encumbered in any
                manner.

            

    

    

    
      	
              9.4

            	
              Tax
                Withholding.
                The Bank shall withhold any taxes that are required to be withheld,
                under
                Section 409A of the Code and regulations thereunder, from the benefits
                provided under this Agreement. The Executive acknowledges that the
                Bank’s
                sole liability regarding taxes is to forward any amounts withheld
                to the
                appropriate taxing authority(ies). 

            

    

    

    
      	
              9.5

            	
              Applicable
                Law.
                The Agreement and all rights hereunder shall be governed by the laws
                of
                the State of Indiana, except to the extent preempted by the laws
                of the
                United States of America.

            

    

    

    
      	
              9.6

            	
              Unfunded
                Arrangement.
                The Executive and Beneficiary are general unsecured creditors of
                the Bank
                for the distribution of benefits under this Agreement. The benefits
                represent the mere promise by the Bank to distribute such benefits.
                The
                rights to benefits are not subject in any manner to anticipation,
                alienation, sale, transfer, assignment, pledge, encumbrance, attachment,
                or garnishment by creditors. Any insurance on the Executive's life
                or
                other informal funding asset is a general asset of the Bank to which
                the
                Executive and Beneficiary have no preferred or secured
                claim.

            

    

    

    
      	
              9.7

            	
              Reorganization. The
                Bank shall not merge or consolidate into or with another bank, or
                reorganize, or sell substantially all of its assets to another bank,
                firm,
                or person unless such succeeding or continuing bank, firm, or person
                agrees to assume and discharge the obligations of the Bank under
                this
                Agreement. Upon the occurrence of such event, the term “Bank” as used in
                this Agreement shall be deemed to refer to the successor or survivor
                bank.

            

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    HOMEFEDERAL
      BANK 

    Supplemental
      Executive Retirement Plan

    

    

    

    
      	
              9.8

            	
              Entire
                Agreement. This
                Agreement constitutes the entire agreement between the Bank and the
                Executive as to the subject matter hereof. No rights are granted
                to the
                Executive by virtue of this Agreement other than those specifically
                set
                forth herein.

            

    

    

    
      	
              9.9

            	
              Notice.
                Any notice or filing required or permitted to be given to the Bank
                or Plan
                Administrator under this Agreement shall be sufficient if in writing
                and
                hand-delivered, or sent by registered or certified mail, to the address
                below: 

            

    

     

    

    

    HomeFederal
      Bank

    Attn:
      ___________

    501
      Washington Street

    Columbus,
      IN 47201

    

     

    Such
      notice shall be deemed given as of the date of delivery or, if delivery is
      made
      by mail, as of the date shown on the postmark on the receipt for registration
      or
      certification.

    

    Any
      notice or filing required or permitted to be given to the Executive under this
      Agreement shall be sufficient if in writing and hand-delivered, or sent by
      mail,
      to the last known address of the Executive.

    

    

    IN
      WITNESS WHEREOF, the Executive and a duly authorized representative of the
      Bank
      have signed this Agreement.

    

    

    
      	
              EXECUTIVE:

            	
              BANK:

            	 
	 	 	 
	 	
              HOMEFEDERAL
                BANK

            
	 	 	 
	
              /s/
                Mark T. Gorski

            	
              By

            	
              /s/
                John K. Keach, Jr.

            
	
              Mark
                T. Gorski

            	 	 
	 	
              Title

            	
              President
                and CEO

            

    

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    HOMEFEDERAL
      BANK 

    Supplemental
      Executive Retirement Plan

    BENEFICIARY
      DESIGNATION FORM

    

    I,
      Mark
      T. Gorski ,
      designate the following as Beneficiary under the Agreement:

    

    
      	
              Primary:

              ___________________________________________________________

               

              ___________________________________________________________

            	
               

              _____%

               

              _____%

            
	
              Contingent:

              ___________________________________________________________

               

              ___________________________________________________________

            	
               

              _____%

               

              _____%

            

    

    Notes:
      

    
      	·  	
              Please
                PRINT CLEARLY or TYPE the names of the
                beneficiaries.

            

    

    
      	·  	
              To
                name a trust as Beneficiary, please provide the name of the trustee(s)
                and
                the exact
                name and date of the trust
                agreement.

            

    

    
      	·  	
              To
                name your estate as Beneficiary, please write “Estate of
                _[your
                name]_”.

            

    

    
      	·  	
              Be
                aware that none of the contingent beneficiaries will receive anything
                unless ALL of the primary beneficiaries predecease
                you.

            

    

    

    I
      understand that I may change these beneficiary designations by delivering a
      new
      written designation to the Plan Administrator, which shall be effective only
      upon receipt and acknowledgment by the Plan Administrator prior to my death.
      I
      further understand that the designations will be automatically revoked if the
      Beneficiary predeceases me, or, if I have named my spouse as Beneficiary and
      our
      marriage is subsequently dissolved.

    

    

    
      	
              Name:

            	 	 
	 	 
	
              Signature:

            	 	
              Date:

            	 
	 	 
	 	 
	 	 
	
              Received
                by the Plan Administrator this ________ day of ___________________,
                2___

            
	 	 
	
              By:

            	 	 
	 	 
	
              Title:

            	 	 

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    HOMEFEDERAL
      BANK 

    Supplemental
      Executive Retirement Plan

    ELECTION
      FORM

    

    

    I,
      ______Mark
      T. Gorski_______,
      elect the following methods for payment of death benefits under Section 3.1
      of
      this Agreement:

    

    

    
      	
              Initial

            	
              Form
                of Benefit

            
	
              _____

            	
              Lump
                sum

            
	
              _____

            	
              Installments
                over 60 months

            
	
              _____

            	
              Installments
                over 120 months

            
	
              _____

            	
              Installments
                over 180 months

            

    

    

    

    During
      any applicable installment period, interest shall be credited as set forth
      in
      Section 3.1.2. 

    

    I
      understand I may change this election by delivering a new written election
      with
      the Plan Administrator, which shall be effective only upon receipt and
      acknowledgment by the Plan Administrator prior to my death.

    

    

    
      	
              Name:

            	 	 
	 	 
	
              Signature:

            	 	
              Date:

            	 
	 	 
	 	 
	 	 
	
              Received
                by the Plan Administrator this ________ day of ___________________,
                2___

            
	 	 
	
              By:

            	 	 
	 	 
	
              Title:

            	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    HOMEFEDERAL
      BANK 

    Supplemental
      Executive Retirement Plan

    BENEFICIARY
      DESIGNATION FORM

    

    SCHEDULE
      A

    HOMEFEDERAL
      BANK

    SUPPLEMENTAL
      EXECUTIVE RETIREMENT PLAN AGREEMENT

    

    MARK
      T. GORSKI

    

    

    
      	 	 	 	 	 	
              Pre-

            
	 	 	
              Early

            	 	
              Change
                in

            	
              Retirement

            
	 	 	
              Termination

            	
              Disability

            	
              Control

            	
              Lump
                Sum

            
	 	 	
              Annual

            	
              Annual

            	
              Annual

            	
              Death

            
	
              Date

            	
              Age

            	
              Benefit
                (1)

            	
              Benefit
                (2)

            	
              Benefit
                (1)

            	
              Benefit

            
	
              06/30/2005

            	
              41

            	
              $   
                0

            	
              $      
                0

            	
              $19,570

            	
              $496,233

            
	
              06/30/2006

            	
              42

            	
              $192

            	
              $3,792

            	
              $20,353

            	
              $496,233

            
	
              06/30/2007

            	
              43

            	
              $793

            	
              $7,364

            	
              $21,167

            	
              $496,233

            
	
              06/30/2008

            	
              44

            	
              $1,841

            	
              $10,728

            	
              $22,014

            	
              $496,233

            
	
              06/30/2009

            	
              45

            	
              $3,375

            	
              $13,896

            	
              $22,894

            	
              $496,233

            
	
              06/30/2010

            	
              46

            	
              $5,441

            	
              $16,881

            	
              $23,810

            	
              $496,233

            
	
              06/30/2011

            	
              47

            	
              $6,739

            	
              $19,692

            	
              $24,762

            	
              $496,233

            
	
              06/30/2012

            	
              48

            	
              $8,117

            	
              $22,340

            	
              $25,753

            	
              $496,233

            
	
              06/30/2013

            	
              49

            	
              $9,579

            	
              $24,834

            	
              $26,783

            	
              $496,233

            
	
              06/30/2014

            	
              50

            	
              $11,132

            	
              $27,183

            	
              $27,854

            	
              $496,233

            
	
              06/30/2015

            	
              51

            	
              $12,781

            	
              $29,396

            	
              $28,968

            	
              $496,233

            
	
              06/30/2016

            	
              52

            	
              $14,531

            	
              $31,480

            	
              $30,127

            	
              $496,233

            
	
              06/30/2017

            	
              53

            	
              $16,389

            	
              $33,443

            	
              $31,332

            	
              $496,233

            
	
              06/30/2018

            	
              54

            	
              $18,362

            	
              $35,292

            	
              $32,585

            	
              $496,233

            
	
              06/30/2019

            	
              55

            	
              $20,457

            	
              $37,034

            	
              $33,889

            	
              $496,233

            
	
              06/30/2020

            	
              56

            	
              $22,681

            	
              $38,674

            	
              $35,244

            	
              $496,233

            
	
              06/30/2021

            	
              57

            	
              $25,042

            	
              $40,220

            	
              $36,654

            	
              $496,233

            
	
              06/30/2022

            	
              58

            	
              $27,548

            	
              $41,675

            	
              $38,120

            	
              $496,233

            
	
              06/30/2023

            	
              59

            	
              $30,209

            	
              $43,046

            	
              $39,645

            	
              $496,233

            
	
              06/30/2024

            	
              60

            	
              $33,035

            	
              $44,337

            	
              $41,231

            	
              $496,233

            
	
              06/30/2025

            	
              61

            	
              $36,034

            	
              $45,553

            	
              $42,880

            	
              $496,233

            
	
              06/30/2026

            	
              62

            	
              $39,219

            	
              $46,699

            	
              $44,595

            	
              $496,233

            
	
              06/30/2027

            	
              63

            	
              $42,600

            	
              $47,778

            	
              $46,379

            	
              $496,233

            
	
              06/30/2028

            	
              64

            	
              $46,189

            	
              $48,794

            	
              $48,234

            	
              $496,233

            
	
              06/04/2029

            	
              65

            	
              $50,000

            	
              $50,000

            	
              $50,000

            	
              $496,233

            

    

    

    

    
      	(1)  	
              Payments
                are made in 12 equal monthly installments for a period of 180 months
                commencing within 60 days following Separation from Service. Refer
                to
                Section 2.2 for Early Termination and Section 2.4 for Change in
                Control.

            

    

    
      	(2)  	
              Payments
                are made in 12 equal monthly installments for a period of 180 months
                commencing at Normal Retirement Age. Refer to Section 2.3 for
                Disability.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}]]