TERMINATION AGREEMENT

This TERMINATION AGREEMENT (“ Agreement ”) is made as of the 23rd day of January, 2007, by and between HomeFederal Bank, an Indiana commercial bank (the “Bank”), Home Federal Bancorp, an Indiana corporation (the “ Corporation ”) and John K. Keach, Jr. (“ Keach ”).

WHEREAS, the Bank, the Corporation, and Keach have entered into an Employment Agreement dated October 15, 1987, as amended by five amendments prior to the date hereof (the “ Agreement ”);

WHEREAS, the parties desire to terminate the Agreement upon the terms and conditions set forth herein.

NOW THEREFORE, for good and valuable consideration and the mutual covenants contained herein, the Bank, the Corporation, and Keach agree as follows:

Section 1. From and after the da