THIS EMPLOYMENT AGREEMENT (this "Agreement") is effective as of November 1, 2000 by and among
HMN Financial, Inc., a Delaware corporation (the "Company"), Home Federal Savings Bank, a federally
chartered savings bank (the "Bank") and a wholly owned subsidiary of the Company and Timothy P. Johnson, a
resident of Stewartville, Minnesota ("Executive").
A. Executive currently holds the positions of Chief Financial Officer of the Bank and Chief Financial Officer of the
B. Executive will continue to serve as the Chief Financial Officer of the Bank and Chief Financial Officer of the
Company, all subject to the terms and conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of the foregoing premises and the respective agreements of the Bank, the
Company and Executive set forth below, the Bank, the Company and Executive, intending to be legally bound,
agree as follows:
1. EMPLOYMENT. Effective as of November 1, 2000 Executive shall perform services for the Company and
the Bank, upon the terms and conditions set forth in this Agreement.
2. TERM OF EMPLOYMENT. Unless terminated at an earlier date in accordance with Section 7 hereof, the
term of Executive's employment with the Company and the Bank under this Agreement shall be for a period of
two years commencing on November 1, 2000 and ending on October 31, 2002, or any one-year extension
hereof (such two year term, the "Employment Period"). Commencing on the first anniversary of the execution of
this Agreement and on each anniversary thereafter, this Agreement shall be extended for a period of twelve (12)
months in addition to the then-remaining term of employment under this Agreement, unless any of the Company,
the Bank or the Executive gives contrary written notice to the others not less than 90 days in advance of the date
on which the term of employment under this Agreement would otherwise be extended, and PROVIDED THAT
no extension shall occur unless prior to each anniversary o