Exhibit 5f
Service Agreement for Home Federal Savings Bank
Employee Stock Ownership Plan
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SERVICE AGREEMENT
FOR
HOME FEDERAL SAVINGS BANK
EMPLOYEES' STOCK OWNERSHIP PLAN
THIS AGREEMENT made as of June 17 , 199 6 by and between Pentegra
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Services, Inc. ("Pentegra") and Home Federal Savings Bank (the
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"Employer").
W I T N E S S E T H:
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WHEREAS, the Employer sponsors the HOME FEDERAL SAVINGS BANK
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Employees' Stock Ownership Plan and the related Trust Agreement
(collectively the "Plan"); and
WHEREAS, the Employer desires to contract with Pentegra to provide certain
administrative services.
NOW, THEREFORE, Pentegra, and the Employer agree as follows:
STANDARD SERVICES
Pentegra will provide the following services*:
- -Administrative manual and the forms and descriptive materials you will need to
ease administration of your Plan.
- -Participant and transaction recordkeeping.
- -Contribution and share allocation processing.
- -Earnings allocations.
- -Annual participant benefit statements.
- -Calculation of distributions and tax data for Trustee.
- -Compliance testing for ESOP and other qualified plans administered by
Pentegra.
- -Toll-free telephone support from designated Account Representative.
- -Assistance with annual government reporting requirements.
OPTIONAL SERVICES
Pentegra can also provide for additional elective services, such as the
following:
- -Preparation of IRS Form(s) 5300, 5500 and/or 5500-C/R.
- -Combined compliance testing for all IRS Qualified plans.
- -Legislative and administrative consulting.
* PLEASE NOTE: IN THIS AGREEMENT, THE TERMS "YOU" AND "YOUR" MEAN THE
EMPLOYER. "WE", "US" OR "OUR" MEANS PENTEGRA SERVICES, INC.
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STANDARD FEES
The employer-paid administration fee of $1,000 plus $10 per eligible employee
covers all of the standard services described above. Any special service
requests related to your specific Plan not listed as STANDARD will be priced in
accordance with the optional services fees schedule.
OPTIONAL SERVICE FEES
Fees for optional services you elect will be billed at the rate in effect at
the time the service is contracted for. An employer may contract at a later
date for any optional services.
CONVERSION SERVICE FEES
Where Pentegra is being retained to assume the recordkeeping for an existing
ESOP, there will also be a one-time fee for plan set-up and conversion. The
fees for this service are based on the following schedule:
$25.00 per participant, with a minimum fee of $500.00 and a maximum fee of
$2,000.00.
PAYMENT METHODS
Payment of the fees for services selected shall be paid directly by you.
This Agreement will be effective as of the later of: (I) the date executed
below, or (ii) upon receipt in our Office, unless you are otherwise notified
within 60 days after our receipt that the Agreement is not acceptable.
PLEASE NOTE:
1. SERVICES NOT REFLECTED IN THIS AGREEMENT MAY BE PROVIDED UPON MUTUAL
CONSENT BETWEEN PENTEGRA AND THE EMPLOYER. THE SERVICES PROVIDED IN
ACCORDANCE WITH THIS AGREEMENT AND THE FEES AND EXPENSES ASSOCIATED
THEREWITH CAN BE MODIFIED OR TERMINATED UPON 60 DAYS WRITTEN NOTICE FROM
PENTEGRA TO THE EMPLOYER.
2. Pentegras' agreement to provide the services described herein is based on
the Employer's adoption of the Service Agreement. We shall be entitled to
rely upon the information provided by the Employer in the interpretation
of the Plan. The Employer agrees to indemnify and hold Pentegra, the
Financial Institutions Retirement Fund ("FIRF") and any director, officer
or employee of either such entity harmless from any damages, liabilities
or losses of whatever kind which result from or arise in connection with
any inaccurate or incorrect information provided to us or any other action
for which the Employer is responsible.
3. The Employer acknowledges that neither Pentegra nor any director, officer
or employee thereof provides legal or tax advice to the Employer, any
affiliate of the Employer, or any employee thereof. Pentegra advises the
Employer to obtain its own legal or tax counsel for advice on the Plan
design and specifications appropriate for its situation as well as on
legal or tax issues which may arise during the operation of the Plan. The
Employer acknowledges that it is solely responsible for certain functions
under the Plan, including, but not limited to:
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a) INFORMATION. The Employer shall be responsible for providing to
Pentegra, on a timely basis, all member enrollment information and
such other information relating to member accounts as Pentegra may
require, including any amendments made to such information by a
member.
b) INTERPRETATION OF THE PLAN. The Employer shall be responsible
generally for resolving questions relating to any interpretation of
the Plan's terms and conditions.
c) PARTICIPANT CLAIMS. The Employer shall be responsible for handling
claims of members relating to the Plan and their accounts established
thereunder.
d) PLAN QUALIFICATION. The Employer shall be responsible for
maintaining the qualification of the Plan, both in its terms and
conditions and in its operation pursuant to the Code, the Employee
Retirement Income Security Act of 1974 ("ERISA") and all other
applicable Federal or state laws.
e) INVESTMENT DECISIONS. The Employer is responsible for monitoring
the Investments in the Trust and for complying with any and all
applicable federal and/or state securities laws.
4. If Pentegra is taking over recordkeeping from a prior plan administration
firm, we are not responsible for losses resulting from a prior firm's
administration, or which are incurred as a result of actions or decisions
which were undertaken or made by the prior firm. Pentegra is under no
obligation to review prior plan administration work or related tax
filings. Where we are retained to provide services during a Plan Year, we
shall not be required to verify the accuracy or correctness of work
performed in the prior portion of the Plan Year. The Employer agrees to
indemnify and hold Pentegra, FIRF and any director, officer or employee of
either such entity harmless from any and all liabilities, losses or
damages which are the result of or which may arise in connection with any
plan administration work performed prior to its retention.
This Agreement may be mutually terminated on the date which is the first day of
the month immediately following 60 days after receipt of a written notice of
termination of the Agreement from either party.
PENTEGRA SERVICES, INC. HOME FEDERAL SAVINGS BANK
By: /s/ Robert D. Alin By: /s/ Roger P. Weise
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Name: Robert D. Alin Name: Roger P. Weise
Title: Senior Vice President Title: President & CEO
-Legal & Secretary
Date of Execution: August 1, 1996 Date of Execution: June 17, 1996
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