Exhibit 10.18
CONFIDENTIAL
SEPARATION
AGREEMENT
This Separation Agreement
(“Agreement”) is made by and between Home Federal Bank
(“the Company”), a federally chartered savings
institution, and Gene F. Uher (“Employee”).
RECITALS
Employee has been employed by Home Federal Bank
as an Officer and Employee in the position of President/Home
Federal Bank. The purpose of this Separation Agreement is to
set forth the terms and conditions under which their employment
relationship will be terminated.
AGREEMENT
In
consideration of the recitals stated above and the mutual promises
made below, the
parties agree as follows:
1.
Termination of
Employment : Employee will be relieved of all of his
responsibilities as an Officer effective 12:00 noon, February 26,
2002 and as an Employee of the Company as of 12:00 midnight, March
29,2002. Employee will be relieved of his daily
responsibilities no later than 12:00 noon, February 26, 2002,
unless mutually agreed to an earlier date. Employee shall
provide consultation and information to the Company when requested
through the March 29, 2002.
2.
Final Wages
: On March 29, 2002,
the Employee will receive a final payroll earnings payment,
including any accrued but unused Personal Time Off
(“PTO”) as of March 15, 2002. The Company shall
deduct customary withholdings, including Federal Income tax,
Medicare tax and Social Security tax from this final earnings
check. In addition, Employee will be reimbursed by the
Company for any ordinary/reasonable expenses advanced or incurred
in the performance of his duties up to February 26, 2002. In
addition, in accordance with Section 6 (b) of the Employment
Agreement dated March 3rd, 1997, Employee shall receive his current
base salary ($148,000 annual) through April 8, 2003, on the current
semi-monthly cycle. The Company shall deduct customary
withholdings, including FICA, Medicare tax and Federal income tax
from these earnings.
3.
Employee Benefit
Plans :
Health
Coverage : Employee may continue his health
coverage under the Company’s group health plan, with the
Company paying the Employer portion of
the
monthly rate, with the Employee portion deducted from his
semi-monthly salary payments through April 30, 2003. On that
date, Employee will incur a qualifying event for COBRA continuation
of health coverage and at that time will be notified of the
opportunity available to him to elect to continue to participate in
the Company’s group health benefits program as a COBRA
continuee as allowed by law and the terms of those Employee benefit
plans, and subject to Employee’s payment of the monthly COBRA
rates by the 1st of the month for which the
coverage is provided during the continuation
period provided by law, for a period of up to eighteen (18) months
from April 30, 2003. Any payment by the Company of health
plan monthly rates shall cease if/when the Employee later obtains
other group medical coverage (without pre-existing conditions being
excepted). The Employee is under an affirmative obligation to
immediately notify the Company when he becomes covered under
another group health plan.
Other Benefits : Employee’s dental, short-term,
long-term disability and life insurance will be terminated as of
March 31, 2002. The
Company currently provides Employee with a membership in a local
country club. The Company will not continue paying the
membership dues after March 29, 2002.
Retirement Plans : The Employee shall be 100% vested in
the HF Financial Corp. Pension Plan and the HF Financial Corp.
Retirement Savings Plan as
