The Board of Directors (the Board) of Home Federal Savings Bank has reviewed
your performance evaluation performed by selected members of the Board. In
connection therewith and pursuant to Section 1 of your contract on May 23,
2000, the Board determined to extend your employment contract until the May
Board meeting, 2003.


                                   Home Federal Savings Bank

                                   By:  /s/ M.F. Schumann
                                      --------------------------------
                                      M.F. Schumann
                                           Director

                         EMPLOYEE ACKNOWLEDGEMENT

     I hereby acknowledge receipt of this notice of extension of the above-
referenced contract and accept the extension of the term of such contract.

                         EMPLOYEE



     Dated: 5/23/00           By:   /s/ James B. Gardner
            ---------              --------------------------
                                   James B. Gardner