Exhibit 5a
Amendment #5 to the Home Federal Savings Bank 401(k) Plan
20
AMENDMENT #5
TO THE
HOME FEDERAL SAVINGS BANK 401(K) PLAN
WHEREAS, Home Federal Savings Bank (hereinafter referred to as the
"Employer") did establish a 401(K) Plan on the 1st day of January, 1992; and,
WHEREAS, Article VIII of said plan does allow for amendments to said
Plan;
NOW, THEREFORE, the Employer does hereby amend the Home Federal Savings
Bank 401(K) Plan, effective the 1st day of January, 1995, as follows:
ARTICLE X
PARTICIPATING EMPLOYERS
10.1 ADOPTION BY OTHER EMPLOYERS
Notwithstanding anything herein to the contrary, with the consent of the
Employer, any other corporation or entity, whether an affiliate or subsidiary
or not, may adopt this Plan and all of the provisions hereof, and Participate
herein and be known as a Participating Employer, by a properly executed
document evidencing said intent and will of such Participating Employer.
10.2 REQUIREMENTS OF PARTICIPATING EMPLOYERS
(a) Each such Participating Employer shall be required to use the same
Trustee as provided in this Plan.
(b) The Trustee may, but shall not be required to, commingle, hold and
invest as one Trust Fund all contributions made by Participating Employers, as
well as all increments thereof. However, the assets of the Plan shall, on an
ongoing basis, be available to the Employer or Participating Employer who
contributed such assets.
(c) The transfer of any Participant from or to an Employer participating
in this Plan, whether he be an Employee of the Employer or a Participating
Employer, shall not affect such Participant's rights under the Plan, and all
amounts credited to such Participant's Combined Account as well as his
accumulated service time with the transferor or predecessor, and his length of
participation in the Plan, shall continue to his credit.
(d) All rights and values forfeited by termination of employment shall
inure only to the benefit of the Participants of the Employer or Participating
Employer by which the forfeiting Participant was employed, except if the
Forfeiture is for an Employee whose Employer is an Affiliated Employer then
said Forfeiture shall inure to the benefit of the Participants of those
Employers who are Affiliated Employers. Should an Employee of one ("First")
Employer be transferred to an associated ("Second") Employer which is an
Affiliated Employer, such transfer shall not cause his account balance
(generated while an Employer of "First" Employer) in any manner, or by any
amount to be forfeited. Such Employee's Participant Combined Account balance
for all purposes of the Plan, including length of service, shall be considered
as though he had always been employed by the "Second" Employer and as such had
received contributions, forfeitures, earnings or losses, and appreciation or
depreciation in value of assets totaling the amount so transferred.
(e) Any expenses of the Trust which are to be paid by the Employer or to
be borne by the Trust Fund shall be paid by each Participating Employer in the
same proportion that the total amount standing to the credit of all
Participants employed by such Employer bears to the total standing to the
credit of all Participants.
10.3 DESIGNATION OF AGENT
Each Participating Employer shall be deemed to be a party to this Plan;
provided, however, that with respect to all of its relations with the Trustee
and Administrator for the purpose of this Plan, each Participating Employer
shall be deemed to have designated irrevocably the Employer as its agent.
Unless the context of the Plan clearly indicates the contrary, the word
"Employer" shall be deemed to include each Participating Employer as related to
its adoption of the Plan.
10.4 EMPLOYEE TRANSFERS
It is anticipated that an Employee may be transferred between
Participating Employers, and in the event of any such transfer, the Employee
involved shall carry with him his accumulated service and eligibility. No
such transfer shall effect a termination of employment hereunder, and the
Participating Employer to which the Employee is transferred shall thereupon
become obligated hereunder with respect to such Employee in the same manner as
was the Participating Employer from whom the Employee was transferred.
10.5 PARTICIPATING EMPLOYER'S CONTRIBUTION
Any contribution subject to allocation during each Plan Year shall be
allocated only among those Participants of the Employer or Participating
Employer making the contribution, except if the contribution is made by an
Affiliated Employer, in which event such contribution shall be allocated among
all Participants of all Participating Employers who are Affiliated Employers in
accordance with the provisions of this Plan. On the basis of the information
furnished by the Administrator, the Trustee shall keep separate books and
records concerning the affairs of each Participating Employer hereunder and as
to the accounts and credits of the Employees of each Participating Employer.
The Trustee may, but need not, register Contracts so as to evidence that a
particular Participating Employer is the interested Employer hereunder, but in
the event of an Employee transfer from one Participating Employer to another,
the employing Employer shall immediately notify the Trustee thereof.
10.6 AMENDMENT
Amendment of this Plan by the Employer at any time when there shall be a
Participating Employer hereunder shall only be by the written action of each
and every Participating Employer and with the consent of the Trustee where such
consent is necessary in accordance with the terms of this Plan.
10.7 DISCONTINUANCE OF PARTICIPATION
Any Participating Employer shall be permitted to discontinue or revoke its
participation in the Plan. At the time of any such discontinuance or
revocation, satisfactory evidence thereof and of any applicable conditions
imposed shall be delivered to the Trustee. The Trustee shall thereafter
transfer, deliver and assign Contracts and other Trust Fund assets allocable to
the Participants of such Participating Employer to such new Trustee as shall
have been designated by such Participating Employer, in the event that it has
established a separate pension plans for its Employees, provided however, that
no such transfer shall be made if the result is the elimination or reduction of
any "Section 411(d)(6) protected benefits" in accordance with Section 8.1.
If no successor is designated, the Trustee shall retain such assets for the
Employees of said Participating Employer pursuant to the provisions of the
Trust, Article VII hereof. In no such event shall any part of the corpus or
income of the Trust as it relates to such Participating Employer be use for or
diverted to purposes other than for the exclusive benefit of the Employees of
such Participating Employer.
10.8 ADMINISTRATOR'S AUTHORITY
The Administrator shall have authority to make any and all necessary rules
or regulations, binding upon all Participating Employers and all Participants,
to effectuate the purpose of this Article.
NOW, THEREFORE, the Bank and the Trustees of the Home Federal Savings Bank
401(k) Plan (the "Plan") do hereby adopt the following resolutions regarding
the Plan.
WHEREAS, Home Federal Savings Bank (the "Bank"), sponsors the Plan; and,
WHEREAS, the assets of the Plan have heretofore been invested in a group
annuity contract offered by Nationwide Life Insurance Company (the "Group
Annuity Contract"); and,
WHEREAS, the Group Annuity Contract has permitted Plan participants to
elect among investment alternatives, consisting of a Interest Bearing Fund,
Bond Fund, Balanced Fund, Stock Fund and Growth Stock Fund; and,
WHEREAS, the Trustees have determined to cancel the Group Annuity Contract
because the Group Annuity Contract does not have the administrative flexibility
to satisfy the needs of the Plan's participants, has difficulty meeting the
Plan's needs for liquidity, and otherwise no longer meets the needs of the Plan
and its participants; and,
WHEREAS, the payment of the early cancellation penalty has diminished the
investment return of the accounts of Plan participants in proportion to the
investment alternative(s) which they have selected, and has generally
diminished the accounts of rank and file employees more than the accounts of
highly compensated employees (as defined in Section 414 of the Internal Revenue
Code of 1986, as amended (the "Code"); and,
WHEREAS, the Trustees have determined that the payment of such early
cancellation penalties by the accounts of participants is detrimental to the
intended purpose of the Plan to provide retirement benefits to its employees,
and thus the Bank desires to make a special contribution to the Plan in order
to mitigate the effects of the early cancellation penalties; and,
WHEREAS, the Bank contributed to the Plan the sum of Nine Thousand Four
Hundred Ninety One and 37/100 Dollars ($9,491.37) which is approximately equal
to the total amount of the early cancellation penalties paid by the accounts of
Plan participants upon cancellation of the Group Annuity Contract; it is
RESOLVED, that such contribution shall be allocated to the accounts of
participants as provided in Schedule l, which is attached hereto and
incorporated by reference, in an amount equal to the early cancellation
penalties paid by each participant's separate investment account; and,
RESOLVED FURTHER, that, notwithstanding the foregoing, said special
contribution shall be reduced, and no special allocation to the account of a
participant shall be made, if and to the extent that such an allocation would
cause the "annual additions" to a participant's account to exceed the
limitation of Section 404 or Section 415 of the Code; and,
RESOLVED FURTHER, that such special contribution shall be invested as part
of the Participant's Elective Account, and, notwithstanding any other
provision of the Plan to the contrary, shall be fully (100%) vested at all
times; and,
RESOLVED FURTHER, that the President of the Bank, Roger Weise, is hereby
authorized and directed to take such other and further action in connection
with the foregoing, as shall be deemed necessary or helpful in connection with
the foregoing, including but not limited to the submission of the Plan, as
amended by the Written Action, to the Internal Revenue Service for a ruling as
to the Plan's continued qualification under the Code; and,
RESOLVED FURTHER, in the event that the Internal Revenue Service rules
that the allocation of the special contribution to the Plan contemplated by
this written action is in violation of Section 401(a)(4) or any other section
of the Code, then the special allocation contemplated herein shall be allocated
to the accounts of participants in the same proportion that each such
participant's Plan Compensation for the plan year bears to the total Plan
Compensation of all participants for such year.
Dated this 9th day of May, 1995.
Home Federal Savings Bank
By /s/ Roger P. Weise 5-9-95
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Roger P. Weise DATE
TRUSTEES
/s/ Roger P. Weise 5-9-95
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Roger P. Weise
/s/ James B. Gardner 5-9-95
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James B. Gardner
/s/ Dwain C. Jorgensen 5-9-95
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Dwain C. Jorgensen