Confidentiality Statement

This Agreement, General Release, and Confidentiality Statement (“Agreement”), is between HomeFederal Bank (“ Bank ”) and S. Elaine Pollert (“ Employee ”), a resident of Jackson County, Indiana.

A.   Employee’s positions with the Bank and Home Federal Bancorp, the Bank’s sole shareholder (the “Corporation”), will end effective February 16, 2007.

B.   Bank enters into this Agreement based solely on Employee’s representation that this Agreement will resolve any and all claims Employee has or could have against Bank for any issue relating to her employment or the separation of her employment and that Employee has waived any right to pursue any claim or lawsuit against Bank with respect to her employment, the separation of that employment, or any other issue that arose prior to her execution of this Agreement.

C.   In an effort to end the employment relationship on an amicable basis, and in consideration of the mutual covenants, promises, and obligations contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is mutually acknowledged, the Parties hereby agree as follows:

1.         Definition . Throughout this Agreement, the term “Bank,” when capitalized and used alone, shall encompass the following:

(a)   Bank and any other subsidiary, parent company, affiliated entity, related entity, or division of any of the foregoing; and

(b)   Any current or former officer, director, trustee, agent, employee, insurer, shareholder, representative, or employee benefit or welfare program or plan (including the administrators, trustees, and fiduciaries of such program or plan) of an entity referenced in or encompassed by subparagraph 1(a), whether acting in their representative or individual status.

2.         Employment . Employee’s positions and employment with, and authority to conduct business on behalf of, the Bank and the Corporation shall terminate effective February 16, 2007. Employee agrees that as a condition of this Agreement, she will not seek re-employment with Bank or the Corporation at any time and should she apply in the future, her application for employment will not be considered by Bank or the Corporation and will be null and void. Effective as of February 16, 2007, Employee’s Employment Agreement with Bank and the Corporation dated December 17, 1996, as amended prior to the date hereof (the “ Employment Agreement ”) shall be terminated and no longer of any force or effect. Employee hereby waives and releases any and all claims, demands, or causes of action against the Bank or the Corporation, or its successors and/or assigns, or against the Bank’s or the Corporation’s officers, employees, directors or agents, whether acting in their representative or individual

4.         Legal Fees and Outplacement Services . In addition, the Bank agrees to reimburse Employee for her attorney’s fees incurred in connection with the matters that led to this Agreement and the negotiation of this Agreement as well as for outplacement services utilized by Employee within 12 months following the Effective Date; provided, however, that in no event shall the Bank be obligated for more than a total of Thirty Five Thousand Dollars ($35,000.00) under this Paragraph 4.

5.         Health Insurance . Employee at her cost shall be entitled to any COBRA health benefits to which she and her children are entitled under law (which would permit her and her currently covered family members to continue their group health coverage for the periods specified in COBRA, as a result of her termination of employment as of the Effective Date). To the fullest extent permitted by law and the terms of the applicable plans, she will be permitted to convert her Bank life insurance, long term disability, and accidental death and dismemberment policies to personal policies.

6.         Tax Consequences and Other Matters . In paying the amounts and benefits specified in Paragraphs 3, 4, 5, 8 and 9, makes no representation as to the tax consequences or liability arising from said payments and benefits. Moreover, the parties understand and agree that any tax consequences and/or liability arising from the payments and benefits provided to Employee shall be the sole responsibility of Employee. To this extent, Employee acknowledges and agrees that she will pay any and all income taxes and employment taxes which may be determined to be due from Employee in connection with the payments and benefits described in Paragraphs 3, 4, 5, 8 and 9.

All payments and benefits described in Paragraphs 3, 4, 5, 8 and 9 reflect consideration provided to Employee over and above anything of value to which Employee is already entitled.

7.         General Release and Waiver of Claims . Employee, for herself, her heirs, executors, and administrators, hereby releases and discharges Bank, its officers, directors, employees, affiliates, insurers and agents (either in their representative or individual capacity) from any claim, demand, action, or cause of action, known or unknown, which arose at any time from the beginning of time to the effective date of the Agreement and waives all claims relating to, arising out of or in any way connected with her employment with Bank or the cessation of that employment including, without limitation, any claim, demand, action, cause of action, including money damages and claims for attorneys’ fees, based on but not limited to:

(a)   The Age Discrimination in Employment Act of 1967, as amended (“ADEA”), 29 U.S.C. § 621, et seq ;

(b)   The Americans With Disabilities Act of 1990 (“ADA”), 42 U.S.C. § 12101, et seq .;

(c)   The Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq .;

(d)   The Family and Medical Leave Act of 1993 (“FMLA”), 29 U.S.C. § 2601, et seq .;

(e)   The Civil Rights Act of 1866 and 1964, as amended, 42 U.S.C. § 1981;

(f)   The Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1001, et seq .;

(g)   Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000(e), et seq .;

(h)   The Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq. ;

(i)   The Worker Adjustment and Retraining Notification Act, 29 U.S.C. § 2101 et seq. ;

(j)   The Indiana Civil Rights Law, Ind. Code § 22-9-1-1, et seq. , the Indiana wage payment statute, Ind. Code § 22-2-4-1, et seq. , and any Indiana wage law;

(k)   Any existing or potential entitlement under any Bank program or plan, including wages or other paid leave;

(l)   Any existing or potential agreement, contract, representation, policy, procedure, or statement (whether any of the foregoing are express or implied, oral or written); and 

(m)   Claims arising under any other federal, state and local fair employment practices law, disability benefits law, and any other employee or labor relations statute, executive order, law or ordinance, and any duty or other employment-related obligation, claims arising from any other type of statute, executive order, law or ordinance, claims arising from contract or public policy, as well as tort, tortious cause of conduct, breach of implied covenant of good faith and fair dealing, breach of contract, intentional infliction of emotional distress, negligence, discrimination, harassment, and retaliation, together with all claims for monetary and equitable relief, punitive and compensatory relief and attorneys’ fees and costs.

Employee understands and agrees that she is releasing Bank from any and all claims by which she is giving up the opportunity to recover any compensation, damages, or any other form of relief in any proceeding brought by Employee or on Employee’s behalf. This Paragraph and this Agreement shall not operate to waive or bar any claim or right which -- by express and unequivocal terms of law -- may not under any circumstances be waived or barred. Notwithstanding the foregoing, this Agreement is not intended to operate as a waiver of any retirement or pension benefits that are vested (inc