Document:

exv10w7

 

Exhibit 10.7

FIRST FINANCIAL CORPORATION

2005 LONG-TERM INCENTIVE PLAN

Effective Date: January 1, 2005

Krieg DeVault LLP

One Indiana Square, Suite 2800

Indianapolis, IN 46204-2079

www.kriegdevault.com

 

FIRST FINANCIAL CORPORATION

2005 LONG-TERM INCENTIVE PLAN

TABLE OF CONTENTS

	 	 	 	 	 
	Section	 	Page
	1. PURPOSE OF THE PLAN
	 	 	1	 
	2. DEFINITIONS
	 	 	1	 
	3. AWARDS AND PLAN ADMINISTRATION
	 	 	7	 
	4. ELIGIBILITY
	 	 	8	 
	5. ESTABLISHMENT OF ACCOUNT; NO SEGREGATION OF ASSETS
	 	 	9	 
	6. PERFORMANCE CRITERIA
	 	 	9	 
	7. PAYMENT OF AWARDS
	 	 	9	 
	8. SEPARATION FROM SERVICE
	 	 	12	 
	9. NONASSIGNABILITY
	 	 	13	 
	10. BENEFICIARY DESIGNATION
	 	 	13	 
	11. TAXES
	 	 	14	 
	12. REGULATORY APPROVALS AND RULE 16b-3
	 	 	14	 
	13. CLAIMS
	 	 	14	 
	14. PLAN ADMINISTRATOR
	 	 	18	 
	15. EFFECTIVE DATE OF THE PLAN
	 	 	18	 
	16. LIMITATIONS ON LIABILITY
	 	 	18	 
	17. INCAPACITY OF PARTICIPANT OR BENEFICIARY
	 	 	18	 
	18. MISCELLANEOUS
	 	 	18	 

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FIRST FINANCIAL CORPORATION

2005 LONG-TERM INCENTIVE PLAN

1. PURPOSE OF THE PLAN.

     The purpose of the Plan is to promote the best interests of the Company and its Subsidiaries,
and to enhance stockholder value of the Company by attracting and retaining directors, officers and
other key employees and providing them with an incentive to give their maximum effort to the
continued growth and success of the Company and its Subsidiaries. The Plan is intended to
constitute an unfunded, nonqualified plan of deferred compensation for a select group of management
or highly compensated employees, within the meaning of Section 201(2) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), that is exempt from the requirements of Title 1
of ERISA and that complies with Section 409A of the Internal Revenue Code of 1986, as amended
(“Code”).

2. DEFINITIONS.

     Wherever the initial letter of the following words or phrases is capitalized in the Plan,
including any Appendices or Supplements, they will have the respective meaning set forth below
unless a different meaning is plainly required by the context:

     (a) “Account” means the account established and administered for the benefit of a Participant
under the Plan, reflecting Awards made to the Participant under the Plan and changes in the value
of Awards made hereunder.

     (b) “Award” means the cash compensation payable to a Participant pursuant to the Plan and the
Participant’s Award Document.

     (c) “Award Document” means a written document, including schedules thereto, issued by the
Committee to a Participant, setting forth the terms and conditions of the Award. No Award under
the Plan is valid unless it is set forth in an Award Document. In case of conflict between the
Award Document and the Plan, the terms of the Award Document shall govern unless the inconsistent
term is one for which the Committee lacks authority to vary from the terms set forth in the Plan.

     (d) “Board” means the Board of Directors of the Company.

     (e) “Cause” means any of the following:

     (1) An intentional act of fraud, embezzlement, theft or personal dishonesty; willful
misconduct, or breach of fiduciary duty involving personal profit by the Participant in the
course of his or her employment or director service. No act or failure to act shall be
deemed to have been intentional or willful if it was due primarily to an error
in judgment or negligence. An act or failure to act shall be considered intentional or
willful if it is not in good faith and if it is without a reasonable belief that the action
or failure to act is in the best interest of the Company or its Subsidiaries;

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     (2) Intentional wrongful damage by the Participant to the business or property of the
Company or its Subsidiaries, causing material harm to the Company or its Subsidiaries;

     (3) Breach by the Participant of any confidentiality or non-disclosure and
non-solicitation agreement in effect from time to time with the Company or its Subsidiaries;

     (4) Gross negligence or insubordination by the Participant in the performance of his or
her duties; or

     (5) Removal or permanent prohibition of the Participant from participating in the
conduct of the affairs of the Company or any of its Subsidiaries, by an order issued under
Section 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act, 12 USC 1818(e)(4) and
(g)(1).

     (f) “Change in Control” means any of the following:

     (1) Change in Ownership. A change in the ownership of the Company or an
Employer occurs on the date that any person, or group of persons, as defined below, acquires
ownership of stock of the Company or an Employer that, together with stock held by the
person or group, constitutes more than 50 percent of the total fair market value or total
voting power of the stock of the Company or an Employer. However, if any person or group is
considered to own more than 50 percent of the total fair market value or total voting power
of the stock, the acquisition of additional stock by the same person or group is not
considered to cause a change in the ownership of the Company or an Employer (or to cause a
change in the effective control of the Company or an Employer as defined in subsection
2(f)(2)). An increase in the percentage of stock owned by any person or group, as a result
of a transaction in which the Company or an Employer acquires its stock in exchange for
property will be treated as an acquisition of stock for purposes of this subsection 2(f)(1).
This subsection 2(f)(1) only applies when there is a transfer of stock of the Company or an
Employer (or issuance of stock of a corporation) and stock in the Company or an Employer
remains outstanding after the transaction.

     For purposes of subsections 2(f)(1) and (2), persons will not be considered to be
acting as a group solely because they purchase or own stock of the Company or an Employer at
the same time, or as a result of the same public offering. However, persons will be
considered to be acting as a group if they are owners of a corporation that enters into a
merger, consolidation, purchase or acquisition of stock or similar business transaction with
the Company or an Employer. If a person, including an entity, owns stock in both
corporations that enter into a merger, consolidation, purchase or acquisition of stock or
similar transaction, such shareholder is considered to be acting as a group with other
shareholders only with respect to the ownership in that corporation before the
transaction giving rise to the change and not with respect to the ownership interest in
the other corporation.

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     (2) Change in the Effective Control. A change in the effective control of the
Company or an Employer will occur when: (i) any person or group acquires, or has acquired
during the 12-month period ending on the date of the most recent acquisition by such
person(s), ownership of stock of the Company or an Employer possessing 30 percent or more of
the total voting power; or (ii) a majority of members of the Board is replaced during any
12-month period by directors whose appointment or election is not endorsed by a majority of
the members of the Board prior to the date of the appointment or election. However, if any
person or group is considered to effectively control the Company or an Employer, the
acquisition of additional control of the Company or an Employer by the same person(s) is not
considered to cause a change in the effective control.

     (3) Change in the Ownership of a Substantial Portion of the Employer’s or Company’s
Assets. A change in the ownership of a substantial portion of the Company’s or
Employer’s assets occurs on the date that any person or group acquires, or has acquired
during the 12-month period ending on the date of the most recent acquisition by such
person(s), assets from the Company or an Employer that have a total gross fair market value
equal to or more than 40 percent of the total gross fair market value of all of the assets
of the Company or an Employer immediately prior to such acquisition(s). Gross fair market
value means the value of the assets of the Company or an Employer, or the value of the
assets being disposed of, determined without regard to any liabilities associated with such
assets.

     However, there is no Change in Control under this subsection when there is a transfer
to an entity that is controlled by the shareholders of the Company or an Employer
immediately after the transfer. A transfer of assets by the Company or an Employer is not
treated as a change in the ownership of such assets if the assets are transferred to: (i) a
shareholder of the Company or an Employer (immediately before the asset transfer) in
exchange for or with respect to its stock; (ii) an entity, 50 percent or more of the total
value or voting power of which is owned, directly or indirectly, by the Company or an
Employer; (iii) a person, or group of persons, that owns, directly or indirectly, 50 percent
or more of the total value or voting power of all the outstanding stock of the Company or an
Employer or (iv) an entity, at least 50 percent of the total value or voting power of which
is owned, directly or indirectly, by a person described in (iii). For purposes of this
subsection 2(f)(3), except as otherwise provided, a person’s status is determined
immediately after the transfer of the assets. For example, a transfer to a corporation in
which the Company or an Employer has no ownership interest before the transaction, but which
is a majority-owned subsidiary of the Company or an Employer after the transaction, is not
treated as a change in the ownership of the assets of the Company or an Employer.

     For purposes of this subsection 2(f)(3), persons will not be considered to be acting as
a group solely because they purchase assets of the Company or an Employer at the same time.
However, persons will be considered to be acting as a group if they are
owners of a corporation that enters into a merger, consolidation, purchase or
acquisition of assets, or similar business transaction with the Company or an Employer. If
a person, including an entity shareholder, owns stock in both corporations that enter into a
merger,

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consolidation, purchase or acquisition of assets, or similar transaction, such
shareholder is considered to be acting as a group with other shareholders in a corporation
only to the extent of the ownership in that corporation before the transaction giving rise
to the change and not with respect to the ownership interest in the other corporation.

     Notwithstanding the foregoing, the acquisition of Company or Employer stock by any
retirement plan sponsored by the Company or an Employer or an affiliate of the Company or an
Employer will not constitute a Change in Control.

     (g) “Company” means First Financial Corporation.

     (h) “Committee” means the Compensation Committee of the Board.

     (i) “Disability” means if the Participant is covered by a disability policy of the Company or
the Employer, total disability as defined in such policy without regard to any waiting period. If
the Participant is not covered by such a policy, Disability means the Participant suffers a
sickness, accident or injury that, in the judgment of a physician satisfactory to the Committee,
prevents the Participant from performing substantially all of his or her normal duties.

     (j) “Employer” means the Company and any Subsidiary the Company allows to adopt and become a
co-sponsor of the Plan.

     (k) “Good Reason” shall mean, following a Change in Control, the occurrence without the
express prior written consent of the Participant of any of the events or conditions described in
subsections (2)(k)(1) through 2(k)(5):

     (1) Change in Office, Position or Termination as a Director. Failure to elect or
reelect or otherwise to maintain the Participant in the office or position, or a
substantially equivalent office or position, of or with the Company or the Employer, that
the Participant held immediately before the Change in Control, or the removal or failure to
nominate the Participant as a director (excluding participation on a Company or Employer
regional advisory board) of the Company, the Employer or the successor of the Company or the
Employer provided the Participant was a director of the Company or the Employer immediately
before the Change in Control;

     (2) Adverse Change in the Scope of the Participant’s Duties, Compensation or Benefits.

     (a) A significant adverse change in the nature or scope of the authorities,
powers, functions, responsibilities or duties associated with the Participant’s
position compared to the nature or scope of the authorities, powers, functions,
responsibilities or duties associated with the position immediately before the
Change in Control;

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     (b) A material reduction in the aggregate of the Participant’s “annual
compensation,” unless part of an institution-wide reduction. For this purpose,
“material” means a reduction of ten percent or more in such compensation. “Annual
compensation” means the Participant’s total compensation from the Employer for a
calendar year, including compensation deferred at the election of the Participant,
and including any salary reduction contributions made by the Employer for, or on
behalf of, the Participant under a qualified or other compensation, benefit or
retirement plan of the Company or a Subsidiary. Compensation taken into account for
purposes of this subsection shall be calculated without regard to any Internal
Revenue Code limitations;

     (c) The termination or denial of the Participant’s rights to benefits under the
Company’s or Employer’s benefit, compensation or incentive plans and arrangements or
reduction in the scope or value thereof, which situation is not remedied within ten
calendar days after written notice to the Company from the Participant; or

     (d) Termination or denial of the Participant’s rights to benefits under the
Plan and/or the Participant’s Award Document, other than for Cause as provided in
subsection 8(d), which situation is not remedied within ten calendar days after
written notice to the Company from the Participant;

     (3) Adverse Change in Circumstances. The Participant determines that a change in
circumstances has occurred after a Change in Control, including, without limitation, a
change in the scope of the business or other activities for which the Participant is
responsible compared to his or her responsibilities immediately before the Change in Control
or a material reduction in the Participant’s secretarial or administrative support, (a)
which renders the Participant substantially unable to carry out, substantially hinders the
Participant’s performance of, or causes the Participant to suffer a substantial reduction in
any of the authorities, powers, functions, responsibilities or duties associated with the
office or position held by the Participant immediately before the Change in Control, and (b)
which situation is not remedied within ten calendar days after written notice to the Company
from the Participant of such determination. Provided the Participant’s determination is
made in good faith, the Participant’s determination will be conclusive and binding upon the
parties hereto. The Participant’s determination will be presumed to have been made in good
faith, unless the Company establishes by clear and convincing evidence that it was not made
in good faith;

     (4) Liquidation or Merger. The liquidation, dissolution, merger, consolidation or
reorganization of the Company or transfer of all or substantially all of the business or
assets of the Company to a Person not affiliated with the Company, unless the successor or
successors (by liquidation, merger, consolidation, reorganization, transfer or otherwise) to
which all or substantially all of the business or assets have been transferred (directly or
by operation of law) assumes all duties and obligations of the Company and the Employer
under this Plan and Awards hereunder; or

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     (5) Relocation of the Participant. The Company or the Employer relocates its principal
executive offices, or requires the Participant to have his or her personal residence or
principal location of work change, to any location that is more than 30 miles from the
location thereof immediately before the Change in Control, or requires the Participant to
travel away from his or her office in the course of discharging his or her responsibilities
or duties at least ten percent more (in terms of aggregate days in any calendar year or in
any calendar quarter when annualized for purposes of comparison to any prior year) than was
required of the Participant in any of the three full years immediately before the Change in
Control.

     (l) “Key Employee” means a Top Hat Employee who is:

     (1) An officer of an Employer having annual compensation greater than $140,000;

     (2) A five-percent owner of the Company; or

     (3) A one-percent owner of the Company having an annual compensation greater than
$150,000.

     The $140,000 amount in subsection 2(l)(1) will be adjusted at the same time and in the
same manner as under Code Section 415(d), except that the base period shall be the calendar
quarter beginning July 1, 2001, and any increase under this sentence which is not a multiple
of $5,000 shall be rounded to the next lower multiple of $5,000.

     (m) “Normal Retirement Age” means age 65.

     (n) “Participant” means a director or a Top Hat Employee of an Employer designated by the
Committee to be a participant in the Plan. A director who is also an employee of the Company or an
Employer must be a Top Hat Employee in order to participate in the Plan.

     (o) “Person” or “Persons” means individuals, corporations, partnerships, trusts, associations,
joint ventures, pools, syndicates, sole proprietorships, unincorporated organizations or other
entities.

     (p) “Plan” means the First Financial Corporation 2005 Long-Term Incentive Plan.

     (q) “Separation from Service” means the date on which the Participant dies, retires or
otherwise experiences a Termination of Employment with the Employer. Provided, however, a
Separation from Service does not occur if the Participant is on military leave, sick leave or other
bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so
long as the Participant retains a right to reemployment with the Employer under an applicable
statute or by contract. For purposes of this subsection 2(q), a leave of absence constitutes a
bona fide leave of absence only if there is a reasonable expectation that the Participant will
return to perform services for the Employer. If the period of leave exceeds six months and the
Participant does not retain the right to reemployment under an applicable statute or by contract,
the employment relationship is deemed to terminate on the first date immediately following such
six-month period. Notwithstanding the foregoing, where a leave of absence is

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due to any medically determinable physical or mental impairment that can be expected to result
in death or can be expected to last for a continuous period of not less than six months, where such
impairment causes the Participant to be unable to perform the duties of his position of employment
or any substantially similar position of employment, a 29-month period of absence may be
substituted for such six-month period. The Participant shall incur a “Termination of Employment”
for purposes of this subsection 2(q) when a termination of employment has occurred under Treasury
Regulation 1.409A-1(h)(ii).

     (r) “Subsidiary” means a corporation more than 50 percent of whose voting stock is owned or
controlled by the Company. The term shall also mean any other entity or organization of which the
Company owns or controls a majority of its voting power, including, but not limited to, a
partnership, limited partnership, limited liability company, trust, association, joint venture,
pool, syndicate, unincorporated organization or other entity.

     (s) “Top Hat Employee” means an employee of an Employer who is a member of a select group of
management or highly compensated employees within the meaning of ERISA Section 201(2).

3. AWARDS AND PLAN ADMINISTRATION.

     (a) Committee. The Plan shall be administered by the Committee. The Committee may appoint
and employ agents and advisors, including, but not limited to, legal counsel, to render advice and
assistance to the Committee.

     (b) Awards. The Committee shall set forth the terms and conditions of the Participant’s
Awards in an Award Document. The amount of a Participant’s Award may take into account such
factors as the Committee determines in its discretion, including, but not limited to, the nature of
the services rendered by the Participant, his or her current and potential contributions to the
success of the Company, the Participant’s annual compensation or board fees, and such other factors
as the Committee, in its sole discretion, considers relevant. An Award may increase in value as
provided in the Award Document.

     (c) Committee Authority. The Committee is authorized to interpret and construe the Plan and
Award Documents and to adopt such rules, regulations and procedures for the administration of the
Plan as the Committee deems necessary or advisable, provided the Committee may take action only
upon the vote of a majority of its members. The Committee’s interpretations of the Plan and Award
Documents, and all decisions and determinations made by the Committee, shall be conclusive and
binding on all parties, including the Company or an Employer and any person claiming an Award under
the Plan. The Committee shall have sole authority, in its discretion, to select who among eligible
persons shall be Participants, the amount and other terms and conditions of Awards credited to a
Participant’s Account, the performance criteria governing the amount of additional Awards, the
period to which the performance criteria will be applied, which shall consist of one or more
calendar years, and the schedule under subsection 3(d) for vesting of Accounts; provided, however,
that an individual who is a Participant and a member of the Committee must abstain from taking
action on a matter before the Committee that would have a direct effect on his eligibility to
Participate in the Plan, receive Awards under the Plan, or his vesting schedule under the Plan.
No Award or Award Document

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may provide for (1) an Award to a person who is not an outside Director or Top Hat Employee,
(2) an Award for a fiscal year beginning after December 31, 2009, or (3) a vesting schedule that is
inconsistent with subsection 3(d) (or a change in the vesting schedule originally stated in the
Award Document) in the case of an Award to a Participant who does not have five years of continuous
employment or director service. The performance criteria and other terms and conditions stated in
Award Documents may, but need not be, uniform from one Award Document to the next.

     Neither the Committee nor the Board shall have any authority to repeal or revoke the terms and
provisions of an Award stated in an Award Document or reduce the amount of any Award without the
Participant’s written consent, except in the case of a Participant who is terminated for Cause (as
defined in subsection 8(d) of the Plan). The Committee shall have the authority to terminate a
Participant’s participation in the Plan and his or her right to previous Awards hereunder if the
Committee determines that Cause exists.

     (d) Vesting Schedule for Participant’s Who Do Not Have Five Years of Continuous Employment or
Director Service. Unless otherwise determined in connection with a Participant’s initial
designation as a Participant, a Participant’s Account shall be subject to a vesting schedule
established by the Committee if the Participant has been employed by or has served as a director of
the Company or an Employer for fewer than five continuous years. The vesting schedule shall be
stated in the Award Document. The vesting schedule stated in the Award Document may not be changed
by the Committee without the Participant’s written consent.

     (e) Annual Account Statement. The Committee may, but shall not be obligated to, issue to each
Participant an annual statement or more frequent statement of a Participant’s Account. The
statement of a Participant’s Account may take the form of an updated Award Document, in which case
the updated Award Document shall supersede the Award Documents previously issued to the Participant
by the Committee.

4. ELIGIBILITY.

     With the exception of those Participants exempted from the age requirement of this Section by
the Committee, only outside directors and Top Hat Employees of the Company or an Employer who are
age 65 or under shall be eligible to be Participants under the Plan, provided that the outside
director or Top Hat Employee is designated as a Participant by the Committee in writing. A
director who is also an employee of the Company or an Employer must be a Top Hat Employee in order
to be eligible to participate in the Plan. A designated director or Top Hat Employee of the
Company or an Employer shall become a Participant as of the later of the effective date or the date
specified by the Committee. Except as otherwise provided in the first sentence of this Section, a
Participant who remains employed with or continues to serve as a director for the Company or an
Employer will not be eligible to receive Awards under the Plan for the years beginning after the
year in which he or she attains Normal Retirement Age. Except as otherwise provided in the first
sentence of this Section, the Committee shall have no authority to change the eligibility criteria
of this Section 4.

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5. ESTABLISHMENT OF ACCOUNT; NO SEGREGATION OF ASSETS.

     The Company shall establish on its books of account a separate Account for each Participant.
Accounts shall be maintained solely for record keeping purposes. No assets of the Company or any
Subsidiaries shall be segregated or subject to any trust for any Participant’s benefit by reason of
the establishment of the Participant’s Account. This Plan and Awards made hereunder shall be
unfunded and shall constitute a mere unsecured promise by the Company to make benefit payments in
the future. Notwithstanding any other provision of this Plan or the Award Document, neither a
Participant nor his or her designated beneficiary(ies) shall have any preferred claim on, or any
beneficial ownership interest in, any assets of the Company or any Subsidiary prior to the time
benefits are paid as provided herein and in the Award Document. All rights created under this Plan
and the Award Documents shall be mere unsecured contractual rights of the Participant against the
Company or any Subsidiary.

6. PERFORMANCE CRITERIA.

     The Committee shall: (a) establish performance criteria governing Awards; (b) the length of
the performance period, which may be one or more calendar years; (c) the performance objectives to
be achieved during the performance period (including defining terms, the exclusion of extraordinary
items or any other adjustments considered proper); and (d) determine the measure of whether and to
what degree the objectives have been attained, which determination shall be conclusive.

7. PAYMENT OF AWARDS.

     (a) Cash Payments Only. The Committee shall cause the value of the Participant’s Account to
be paid in cash only. No Award shall be made if the Committee concludes that the performance
criteria to which the Award is subject were not satisfied and no payment of an Award shall be made
if the Participant is terminated for Cause. This subsection may not be superceded by any action of
the Board or the Committee in an Award Document or otherwise.

     (b) When Payments Begin. Payment of the cash value of the vested portion of a Participant’s
Account shall be paid in the manner specified in the Award Document and begin on the earlier of (1)
January 1, 2015, or (2) the date specified in the Award Document on or after Normal Retirement Age.
Provided, further, however, if the Participant is a Key Employee at the time the Participant has a
Separation from Service, payment of his Account shall be suspended, for a period of six months
immediately following the date of his Separation from Service for reasons other than death.
Amounts that would otherwise have been paid during the six-month suspension period will be accrued
and will be paid on the first day following the end of the six-month suspension period. The
remainder of the Participant’s Account will be paid as provided in the Award Document. It is not
necessary for a Participant to experience a Separation from Service as a condition to receiving
payment of the cash value of his or her Account.

     (c) Acceleration of Time of Payment. Except as provided in this Section, the time or schedule
of payment of a Participant’s Account provided in subsection 7(b) may not be accelerated. The time
or schedule of payment of a Participant’s Account may be accelerated in the following
circumstances, each of which is an “Acceleration Event,” to a time that is no later

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than 60 days
following the Committee’s determination that one of the Acceleration Events has occurred:

     (1) Domestic Relations Order. The time or schedule of a payment from a
Participant’s Account may be accelerated to make a payment to an individual other than the
Participant as may be necessary to fulfill a domestic relations order (as defined in Code
Section 414(p)(1)(B)).

     (2) Conflicts of Interest. The time or schedule of a payment from a
Participant’s Account may be accelerated to the extent reasonably necessary to avoid the
violation of an applicable Federal, state, local, or foreign ethics law or conflicts of
interest law (including where such payment is reasonably necessary to permit the Participant
to participate in activities in the normal course of his or her position in which the
Participant would otherwise not be able to participate under an applicable rule). A payment
is reasonably necessary to avoid the violation of Federal, state, local, or foreign ethics
laws or conflicts of interest law if the payment is a necessary part of a course of action
that results in compliance with a Federal, state, local, or foreign ethics law or conflicts
of interest law that would be violated absent such course of action, regardless of whether
other actions would also result in compliance with the Federal, state, local, or foreign
ethics law or conflicts of interest law.

     (3) Payment of Employment Taxes. The time or schedule of a payment from a
Participant’s Account may be accelerated to pay the Federal Insurance Contribution Act
(“FICA”) tax imposed under Code Sections 3101, 3121(a) and 3121(v)(2) on compensation
deferred under the Plan. Additionally, the time or schedule of a payment from a
Participant’s Account may be accelerated under the Plan to pay the income tax at source on
wages imposed under Code Section 3401 or the corresponding withholding provisions of state,
local or foreign tax laws as a result of payment of the FICA amount, and to pay the
additional income tax at source on wages attributable to the pyramiding section 3401 wages
and taxes. However, the total payment under this paragraph will not exceed the aggregate of
the FICA amount and the related income tax withholding on such FICA amount.

     (4) Income Inclusion Under Code Section 409A. The time or schedule of a
payment from a Participant’s Account may be accelerated to pay the income tax, interest and
penalties imposed if the Plan fails to meet the requirements of Code Section 409A and
related regulations; provided, however, such payment will not exceed the amount required to
be included in income as a result of the failure to comply with the requirements of Code
Section 409A and related regulations.

     (5) Plan Termination. The time or schedule of payment or commencement of
payments from a Participant’s Account may be accelerated when the Plan is terminated in
accordance with one of the following:

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     (a) The Company terminates the Plan within 12 months of a corporate dissolution
taxed under Code Section 331, or with the approval of a bankruptcy court pursuant to
11 U.S.C. §503(b)(1)(A), provided that the amounts deferred under the Plan are
included in the Participants’ gross incomes in the latest of the following years
(or, if earlier, the taxable year in which the amount is constructively received).

	 	(i)	 	The calendar year in which the
Plan termination and liquidation occurs;
	 
	 	(ii)	 	The first calendar year in which
the amount is no longer subject to a substantial risk of
forfeiture; or
	 
	 	(iii)	 	The first calendar year in which
the payment is administratively practicable.

     (b) The Company’s irrevocable action to terminate and liquidate the Plan within
the 30 days preceding or the 12 months following a Change in Control. For purposes
of this subsection 7(c)(5)(b), the Plan may be terminated only if all agreements,
methods, programs, and other arrangements sponsored by the Employer immediately
after the time of the Change in Control with respect to which deferrals of
compensation are treated as having been deferred under a single plan under Treasury
Regulation 1.409A-1(c)(2) are terminated and liquidated with respect to each
Participant that experienced the Change in Control, so that under the terms of the
termination and liquidation all such Participants are required to receive all
amounts of compensation deferred under the Plan and other arrangements within 12
months of the date the Company irrevocably takes all necessary action to terminate
and liquidate the Plan and other arrangements.

     (c) The Company’s termination and liquidation of the Plan, provided that:

	 	(i)	 	The termination and liquidation
does not occur proximate to a downturn in the financial health
of the Company;
	 
	 	(ii)	 	The Company terminates and
liquidates all agreements, programs, and other arrangements that
would be aggregated under Treasury Regulation §1.409A-1(c) if
the Participant had deferrals of compensation under all of the
agreements, methods, programs, and other arrangements that are
terminated and liquidated;
	 
	 	(iii)	 	No payments in liquidation of
the Plan are made within 12 months of the date the Company takes
all necessary action to irrevocably terminate and liquidate the
plan other than payments that would be payable under the terms
of the Plan if the action to terminate and liquidate the Plan
had not occurred;

11

 

	 	(iv)	 	All payments are made within 24
months of the date the Company takes all necessary action to
irrevocably terminate and liquidate the Plan; and
	 
	 	(v)	 	The Company does not adopt a new
plan or arrangement that would be aggregated with any terminated
and liquidated plan or arrangement under Treasury Regulation
§1.409A-1(c) if the same Participant participated in both plans
or arrangements, at any time within three years following the
date the Company takes all necessary action to irrevocably
terminate and liquidate the Plan.

     (d) Such other events and conditions as the Internal Revenue Service may
prescribe in generally applicable guidance published in the Internal Revenue
Bulletin.

8. SEPARATION FROM SERVICE.

     (a) No Additional Awards After Separation from Service. A Participant whose employment or
director service terminates, resulting in a Separation from Service, shall not be entitled to any
additional Awards under this Plan on and after Separation from Service.

     (b) Payment Upon Separation from Service After Specified Date. Subject to subsection 7(b),
any Participant who Separates from Service with the Company or an Employer on or after January 1,
2015 or attains Normal Retirement Age, shall be entitled to continue to receive payment of the
vested portion of the cash value of his or her Account with interest as specified in the Award
Document.

     (c) Payment Upon Separation from Service Prior to Specified Date. Subject to subsection 7(b)
with regard to time of payment, any Participant who Separates from Service with the Company or an
Employer for reasons other than death, Disability, Cause or within 12 months after a Change in
Control prior to January 1, 2015 or attainment of Normal Retirement Age, shall be entitled to
receive payment of the vested portion of the cash value of his or her Account balance as of
December 31 of the year immediately before the year in which the Separation from Service occurred,
with interest credited on the Account balance at the rate specified in the Participant’s Award
Document. Payment of the vested portion will be made in the manner prescribed in the Participant’s
Award Document.

     (d) Participant’s Death. In the event any Participant Separates from Service with the Company
or an Employer because of the Participant’s death prior to full payment of the vested portion of
his or her Account balance, the Participant’s designated beneficiary(ies), as provided in Section
10, or the Participant’s estate, if there is no valid beneficiary designation on file at the time
of the Participant’s death, shall receive payment of the Participant’s vested death benefit in the
amount provided for in the Participant’s Award Document in a single sum within 90 days following
the receipt by the Committee of acceptable proof of the Participant’s death.

12

 

     (e) Payment Upon Separation from Service due to Disability. Subject to subsection 7(b), a
Participant who Separates from Service with the Company or an Employer prior to January 1, 2015 or
attainment of Normal Retirement Age as a result of a Disability shall be entitled to receive
payment of the vested portion of the cash value of his or her Disability benefit set forth in his
or her Award Document. Payment will be made according to the Participant’s Award Document.

     (f) Payment Upon Termination for Cause. A Participant’s participation in this Plan may be
terminated by the Committee and his or her right to Awards hereunder, including Awards and the cash
value of Awards previously made to the Participant’s Account shall be forfeited if the
Participant’s service is terminated for Cause. The Committee’s determination that a Participant’s
participation shall be terminated for Cause shall be conclusive and binding on the Company, the
Employer, the Participant, his or her beneficiary(ies) and all other persons. If a Participant’s
participation is terminated for Cause, he or she shall forfeit all rights and interests in this
Plan, and in his or her right to Awards hereunder, including Awards and the cash value of Awards
previously made or that may be made thereafter.

     (g) Payment Upon Termination Within 12 Months after a Change in Control. Subject to
subsection 7(b), any Participant whose employment or director service with the Company terminates
within 12 months after a Change in Control but before the date specified in subsection 7(b), shall
receive the Change in Control benefit set forth in his or her Award Document provided that
termination is not for Cause or because of death or Disability. Termination of a Participant’s
service within 12 months after a Change in Control includes, but is not limited to, termination by
the Participant for Good Reason within 12 months after a Change in Control. Payment shall be made
according to the Participant’s Award Document.

9. NONASSIGNABILITY.

     No benefit, interest, Accounts or any payment under this Plan shall be subject in any manner
to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or
garnishment by creditors of the Participant or the Participant’s designated beneficiary(ies),
either voluntarily or involuntarily. Any attempt to alienate, sell, transfer, assign, pledge,
attach, garnish or otherwise encumber any benefit, interest, account or any payment under the Plan
shall be void and of no legal effect.

10. BENEFICIARY DESIGNATION.

     If a Participant dies before distribution to him or her of all amounts payable under the Plan,
the amounts otherwise distributable to the Participant, if living, shall be distributed to his or
her designated beneficiary(ies). All beneficiary designations shall be made in the form prescribed
by the Committee from time to time and shall be delivered to the Committee. The Participant shall
designate a beneficiary or beneficiaries by filing a written designation with the Committee. The
Participant may revoke or modify the designation at any time by filing a new designation.
Designations shall be effective only if signed by the Participant and accepted by the Committee
during the Participant’s lifetime. The Participant’s beneficiary designation shall be deemed
automatically revoked if the beneficiary predeceases the Participant or if the Participant

13

 

names a spouse as beneficiary and the marriage is subsequently dissolved. If there is no
effective beneficiary designation on file at the time of the Participant’s death, or if the
designated beneficiary(ies) will not survive the Participant, his benefits under the Plan will be
paid: (i) to his surviving spouse; (ii) if there is no surviving spouse, to the duly appointed and
qualified executor or other personal representative of the Participant to be distributed in
accordance with the Participant’s will or applicable intestacy law; or (iii) in the event there is
no such representative appointed and qualified within 45 days after the Participant’s death, then
to such persons as, at the date of death, would be entitled to share in the distribution of the
Participant’s estate under the provisions of the applicable statutes then in force governing the
descent of intestate property, in the proportions specified in such statute. The Committee shall
have no responsibility for the validity of any beneficiary designation made by a Participant.

11. TAXES.

     The Company shall be entitled to pay or withhold the amount of any tax it believes is required
as a result of the payment of any amounts under this Plan. The Company may defer making payments
hereunder until arrangements satisfactory to the Company have been made with respect to any such
withholding obligations. The Company shall have the right to rely on a written opinion of legal
counsel, which may be independent legal counsel or legal counsel regularly employed by the Company,
if any question should arise as to the payment or withholding of taxes.

12. REGULATORY APPROVALS AND RULE 16b-3.

     It is intended that the Plan and any Award made to a person subject to Section 16 of the
Securities Exchange Act of 1934, and any transaction or election hereunder by any such person, meet
all the requirements of Rule 16b-3, if the Plan or Awards made hereunder are subject to Section 16
of the Securities Exchange Act of 1934. If Section 16 of the Securities Exchange Act is applicable
and if any provision of the Plan or any Award hereunder would disqualify the Plan or such Award
under, or would not comply with, Rule 16b-3, such provision or Award shall be construed or deemed
to conform to Rule 16b-3.

13. CLAIMS.

     (a) Claims Procedure.

     (1) Procedures Governing the Filing of Benefit Claims. All Benefit Claims must
be filed on the appropriate claim forms available from the Committee or in accordance with
the procedures established by the Committee for claim purposes. A “Benefit Claim” means a
request for a Plan benefit or benefits, made by a Claimant or by an authorized
representative of a Claimant, that complies with the Plan’s procedures for making benefit
claims. “Claimant” means a Participant, a surviving spouse of a Participant, a beneficiary,
an Alternate Payee or a personal representative of the Participant’s estate who is claiming
entitlement to the payment of any benefit under the Plan. “Alternate Payee” means any
spouse, former spouse, child or other dependent of a

14

 

Participant who is recognized by a domestic relations order as having a right to
receive all, or a portion of the benefits payable under the Plan with respect to such
Participant.

     (2) Notification of Benefit Determinations. The Committee will notify a
Claimant, in accordance with Section 13(a)(3) below, of the Plan’s benefit determination
within a reasonable period of time after receipt of a Benefit Claim, but not later than 90
days (45 days in the case of a Disability Claim) after receipt of the Benefit Claim by the
Plan.

     If special circumstances require an extension of time for processing the Benefit Claim,
the Committee will notify the Claimant of the extension prior to the termination of the
initial period described above. The notice will indicate the special circumstances
requiring the extension of time and the date by which the Plan expects to make the benefit
determination. In no event will the extension exceed a period of 90 days from the end of
the initial period.

     In the case of a Disability Claim, the extension period will not exceed 30 days, unless
prior to the end of first 30-day extension period, the Committee determines that, due to
matters beyond its control, a decision cannot be rendered within the extension period, in
which case the period for making the determination may be extended for an additional 30
days. Every Disability Claim notice will specifically explain the standards on which
entitlement to a benefit is based, the unresolved issues that prevent a decision on the
claim, the additional information needed to resolve those issues and the Claimant’s right to
provide the specified information within 45 days. If the extension is in effect due to the
Claimant’s failure to submit information necessary to decide a Disability Claim, the period
for making the benefit determination will be tolled from the date on which the notice of the
extension is sent to the Claimant until the date on which the Claimant responds to the
request for information. The term “Disability Claim” means a request for a Plan benefit
made by a Claimant due to the purported Disability of a Plan Participant.

     (3) Manner And Content of Notification of Benefit Determinations. All notices
given by the Committee under the Plan will be given to a Claimant, or to his authorized
representative, in a manner that satisfies the standards of 29 CFR 2520.104b-1(b) as
appropriate with respect to the particular material required to be furnished or made
available to that individual. The Committee may provide a Claimant with either a written or
an electronic notice of the Plan’s benefit determination. Any electronic notification will
comply with the standards imposed by 29 CFR 2520.104b-1(c)(1)(i), (iii) and (iv). In the
case of an Adverse Benefit Determination, the notice will set forth, in a manner calculated
to be understood by the Claimant:

     (a) The specific reasons for the adverse determination;

     (b) Reference to the specific Plan provisions (including any internal rules,
guidelines, protocols, criteria, etc.) on which the determination is based;

15

 

     (c) A description of any additional material or information necessary for the
Claimant to complete the claim and an explanation of why such material or
information is necessary;

     (d) For a Disability Claim, the identification of any medical or vocational
experts whose advice was obtained on behalf of the Plan in connection with
Claimant’s Adverse Benefit Determination, without regard to whether the advice was
relied upon; and

     (e) A description of the Plan’s review procedures and the time limits
applicable to such procedures.

     The term “Adverse Benefit Determination” means a denial, reduction, or termination of,
or a failure to provide or make payment (in whole or in part) for, any benefit claimed to be
payable under the Plan.

     (4) Appeal of Adverse Benefit Determinations. A Claimant who receives an
Adverse Benefit Determination and desires a review of that determination must file, or his
authorized representative must file on his behalf, a written request for a review of the
Adverse Benefit Determination, not later than 60 days (180 days for a Disability Claim)
after receiving the determination.

     The written request for a review must be filed with the Board. Upon receiving the
written request for review, the Board will advise the Claimant, or his authorized
representative, in writing that:

     (a) The Claimant, or his authorized representative, may submit written
comments, documents, records, and any other information relating to the claim for
benefits; and

     (b) The Claimant will be provided free of charge, upon request of the Claimant
or his authorized representative, reasonable access to, and copies of, all
documents, records, and other information relevant to the Claimant’s Benefit Claim,
without regard to whether those documents, records, and information were considered
or relied upon in making the Adverse Benefit Determination that is the subject of
the appeal.

     (5) Benefit Determination on Review. All appeals by a Claimant of an Adverse
Benefit Determination will receive a full and fair review by the Board. In performing this
review for a Disability Claim, the Board will take into account all comments, documents,
records, and other information submitted by the Claimant (or the Claimant’s authorized
representative) relating to the claim, without regard to whether the information was
submitted or considered in the initial benefit determination, and will not afford deference
to the initial Adverse Benefit Determination. For a Disability Claim, the Board will
consult with a healthcare professional who has appropriate training and experience in the
field of medicine involved in the medical judgment and who was not consulted in connection
with the Adverse Benefit Determination and who is not the

16

 

subordinate of such an individual if the Board believes that such a consultation is
necessary to properly complete the review process.

     (6) Notification of Benefit Determination on Review. The Board will notify a
Claimant, in accordance with Section 13(a)(7) below, of the Plan’s benefit determination on
review within a reasonable period of time, but not later than 60 days (45 in the case of a
Disability Claim) after the Plan’s receipt of the Claimant’s request for review of an
Adverse Benefit Determination. If, however, special circumstances require an extension of
time for processing the review by the Board, the Claimant will be notified, prior to the
termination of the initial 60 (or 45) day period, of the special circumstances requiring the
extension and the date by which the Plan expects to render the Plan’s benefit determination
on review, which will not be later than 120 days (90 days in the case of a Disability Claim)
after receipt of a request for review.

     If the extension period is in effect for a Disability Claim but the extension is due to
the Claimant’s failure to submit information necessary to decide a claim, the period for
making the benefit determination on review will be tolled from the date on which
notification of the extension is sent to the Claimant until the date on which the Claimant
responds to the request for additional information.

     (7) Manner and Content of Notification of Benefit Determination on Review. The
Board will provide a Claimant with notification of its benefit determination on review in
the method described in Section 13(a)(3) above.

     In the case of an Adverse Benefit Determination on review, the notification must set
forth, in a manner calculated to be understood by the Claimant:

     (a) The specific reasons for the adverse determination on review;

     (b) Reference to the specific Plan provisions (including any internal rules,
guidelines, protocols, criteria, etc.) on which the benefit determination on review
is based;

     (c) A statement that the Claimant is entitled to receive, upon request and free
of charge, reasonable access to, and copies of, all documents, records and other
information relevant to the Claimant’s Benefit Claim, without regard to whether
those records were considered or relied upon in making the Adverse Benefit
Determination on review, including any reports, and the identities, of any experts
whose advice was obtained.

     (8) Court Action. No Participant or beneficiary shall have the right to seek
judicial review of a denial or limitation of benefits, or to bring any action in any court
to enforce a claim for benefits, prior to filing a claim for benefits or exhausting his or
her rights to review under this Section.

17

 

14. PLAN ADMINISTRATOR.

     The Company shall be the plan administrator under the Plan. The Company may delegate aspects
of the management and operation responsibilities of the Plan, including the employment of advisors
and the delegation of ministerial duties to qualified individuals.

15. EFFECTIVE DATE OF THE PLAN.

     The Plan is effective January 1, 2005.

16. LIMITATIONS ON LIABILITY.

     Notwithstanding any of the preceding provisions of this Plan, none of the Company, its
Subsidiaries, any Employer, the Committee and each individual acting as an employee or agent of any
of them shall be liable to any Participant or beneficiary for any claim (other than a claim for
benefits), loss, liability or expense incurred in connection with the Plan, except when the same
shall have been judicially determined to be due to the gross negligence or willful misconduct of
such person. By participating in the Plan, each Participant agrees to release and hold harmless
the Company and its Subsidiaries (and their respective directors, officers and employees) and the
Committee from and against any tax liability, including, but not limited to, interest and
penalties, incurred by the Participant in connection with his receipt of Awards under this Plan and
the deferral, and payment thereof.

17. INCAPACITY OF PARTICIPANT OR BENEFICIARY.

     If any person entitled to receive a distribution or payment under the Plan is physically or
mentally incapable of personally receiving and giving a valid receipt for any payment due (unless
prior claim therefore shall have been made by duly qualified guardian or other legal
representative), then, unless and until claim therefore shall have been made by duly appointed
guardian or other legal representative of such person, the Committee may provide for such payment
or any part thereof to be made to any other person or institution then contributing toward or
providing for the care and maintenance of such person.

18. MISCELLANEOUS.

     (a) Termination and Amendment. The Plan may be terminated, modified or amended by the Board,
provided, however, that no termination, modification, or amendment of the Plan may, without the
prior written consent of the Participant, adversely affect the rights of a Participant in or to his
or her Account.

     (b) Governing Law. The Plan shall be construed, regulated and administered according to the
laws of the State of Indiana without reference to that state’s choice of law principles, except in
those areas preempted by the laws of the United States of America in which case such laws will
control.

18

 

     (c) Headings and Gender. The headings and subheadings in the Plan have been inserted for
convenience of reference only and shall not affect the construction of the provisions hereof. In
any necessary construction, the masculine shall include the feminine and the singular, the plural,
and vice versa.

     (d) No Right to Employment or Director Service. Neither the Plan or Award Document confers
upon any Participant: (1) any right to continued employment by the Company or any Employer, nor
shall it interfere in any way with the right of the Company to terminate any Participant’s
employment at any time, with or without cause; (2) the right to continued service on the Board of
the Company or any Employer, the right to be nominated for service on the Board or the right of the
Company’s stockholder(s) to decline to elect a Participant or the right of the stockholder(s) of a
Subsidiary of the Company to decline to elect a Participant as a director of the Subsidiary.

     Neither this Plan nor any Award Document under this Plan is an employment policy or employment
contract.

     No Participant shall have any right or interest in or to the Plan assets other than as
specifically provided in the Plan or in the Award Document.

     (e) Spendthrift Clause. No benefit or interest available hereunder will be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or
garnishment by creditors of the Participant or the Participant’s designated beneficiary(ies),
either voluntarily or involuntarily.

     (f) Counterparts. This Plan may be executed in any number of counterparts, each of which
shall constitute but one and the same instrument and may be sufficiently evidenced by any one
counterpart.

     (g) Evidence. Evidence required of anyone under the Plan may be by certificate, affidavit,
document or other information which the person relying thereon considers pertinent and reliable,
and signed, made or presented by the proper party or parties.

     (h) Severability. In the event any provisions of the Plan or Award Document shall be held to
be illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining
parts of the Plan or Award Document and the Plan or Award Document shall be construed and endorsed
as if such illegal or invalid provisions had never been contained in the Plan or Award Document.

     (i) Action by Company. Any action required of or permitted by the Company shall be by
resolution of the Board or the Committee or by a person or persons duly authorized by resolution of
the Board or the Committee.

     (j) Corporate Successors. The Plan will not be automatically terminated by a transfer or sale
of assets of the Company or by the merger or consolidation of the Company into or with any other
corporation or other entity (“Transaction”), but the Plan will be continued after the Transaction
only if and to the extent that the transferee, purchaser or successor entity agrees to continue the
Plan.

19

 

     IN WITNESS WHEREOF, the Company has caused the Plan to be executed by its officers thereunder
duly authorized, this 29th day of August, 2007, but effective as of January 1, 2005.

	 	 	 	 	 
	 	FIRST FINANCIAL CORPORATION

 	 
	 	By:  	/s/ Norman L. Lowery
 	 
	 	 	Norman L. Lowery, Chief Executive Officer 	 
	 	 	 	 
	 

ATTEST:

	 	 	 	 	 
	By:

	 	/s/ Michael A. Carty	 	 
	 

	 	 

Michael A. Carty, Secretary
	 	 

20exv10w1

 

Exhibit 10.1

			
	EXECUTION COPY
	 	Contract No. #205132-3

AMENDMENT NO. 3

to 

Yahoo! Publisher Network Agreement

THIS AMENDMENT NO. 3 (this “Third Amendment”) is entered into as of August 1, 2007 (the
“Third Amendment Effective Date”) by and between Overture Services, Inc.
(“Overture”) and Local.com Corporation, formerly known as Interchange Corporation,
(“Publisher”), and amends the Yahoo! Publisher Network Agreement between Overture and
Publisher entered into as of October 17, 2005, as amended by Amendment No. 1 dated as of December
8, 2005 and Amendment No. 2 dated as of March 31, 2006 (collectively, the “Agreement”).

In consideration of the mutual covenants and conditions, the receipt and sufficiency is of which
are hereby acknowledged, Publisher and Overture hereby agree as follows:

	 	1.	 	The “End Date” on the first page of the Agreement is amended to be ***.
	 
	 	2.	 	The “Site” Section on the first page of the Agreement is deleted in its entirety and
replaced with the following:
	 
	 	 	 	“Site = www.local.com, www.localconnect.com, www.mrlocal.com and www.premierguide.com
(sometimes referred to herein individually or collectively as “Results Hosting Sites”);
and *** (as defined in the *** Attachment attached to this Third Amendment). Use of the
term “Site” throughout the Agreement shall include the aforementioned collectively, or
each such website on an individual basis, as context indicates.”
	 
	 	3.	 	The “Implementation” section on the first page of the Agreement is hereby amended to
add the following:
	 
	 	 	 	“Publisher will abide by the provisions of the *** Attachment.”
	 
	 	4.	 	The “Compensation” section on the first page of the Agreement is hereby deleted in its
entirety and replaced with the following:

	 	 	 	“For Paid Results, Overture will pay Publisher a percentage of Adjusted Gross Revenue
as follows:
	 
	 	 	 	As of the Third Amendment Effective Date through ***, the following table shall be
applicable for determining compensation hereunder:

	 	 	 	 	 	 
	 
	 	Adjusted Gross Revenue in the	 	 	 	 
	 	applicable calendar month	 	 	Percentage of Adjusted Gross Revenue	 
	 	***

	 	 	***	 
	 	***

	 	 	***	 
	 

	 	 	 	Adjustment: ***
	 
	 	 	 	As of ***, the following table shall be applicable for determining compensation
hereunder:

	 	 	 	 	 	 
	 
	 	Adjusted Gross Revenue in the	 	 	 	 
	 	applicable calendar month	 	 	Percentage of Adjusted Gross Revenue	 
	 	***

	 	 	***	 
	 	***

	 	 	***	 
	 	***

	 	 	***	 
	 	***

	 	 	***	 
	 

	 	 	 	Adjustment: ***

Overture Confidential

*** — Portions of this page have been omitted pursuant to a request for confidential treatment and
filed separately with the Securities and Exchange Commission

1

 

			
	EXECUTION COPY
	 	Contract No. #205132-3

	 	 	 	The figures in the tables above are in U.S. dollars. Gross Revenue with respect to
countries other than the U.S. in the Territory will be converted to U.S. dollars to
determine the applicable tier of Adjusted Gross Revenue during the Term, and payments
will be made pursuant to Section 6 of Attachment B.”
	 
	 	5.	 	The notice section on the first page of the Agreement is hereby amended by deleting
Overture’s address and facsimile information and replacing it with the following:
	 
	 	 	 	“3333 W. Empire Ave., Burbank, CA 91504, Fax: 818 524 3001, Attn: General Counsel”
	 
	 	6.	 	Section A of Attachment A — Additional Implementation Requirements shall be amended by
adding the following as a new paragraph 8 to Section A:
	 
	 	 	 	“8. Overture reserves the right for certain keywords, in Overture’s sole discretion, to
deliver no Results and provide a response that no Results are being delivered.”
	 
	 	7.	 	Section A of Attachment A — Additional Implementation Requirements shall be amended by
adding the following as a new paragraph 9 to Section A:
	 
	 	 	 	“9. Publisher will host all Results. For the avoidance of doubt and except as otherwise
agreed by the parties in writing, users submitting *** (as defined in the ***) will ***
the Results Hosting Sites, which for the avoidance of doubt are owned, operated and
hosted by Publisher; and all Results *** will be hosted on a Results Hosting Site.”
	 
	 	8.	 	Section B of Attachment A — Additional Implementation Requirements shall be amended by
deleting the last sentence of paragraph 1 of such Section B and replacing it with the
following:
	 
	 	 	 	“Overture reserves the right to require Publisher to remove Hyperlinks from any webpage.”
	 
	 	9.	 	Section 8 (“Exclusivity”) of the Terms and Conditions to the Agreement shall be amended
by adding the following sentence after the third sentence of such Section:
	 
	 	 	 	“Notwithstanding anything to the contrary contained in this Section 8, with respect only
to ***.”
	 
	 	10.	 	Section 12 (“Traffic Quality”) of the Terms and Conditions to the Agreement is hereby
amended by deleting the first two sentences of such Section and replacing them with the
following as follows:
	 
	 	 	 	“For each Query and each click on a Paid Result, Publisher will provide: *** Publisher
will provide this information at the time a Query is sent to Overture and when a user
clicks on a Paid Result.”
	 
	 	11.	 	Section 17 (“Limitation of Liability”) of the Terms and Conditions to the Agreement is
hereby amended by adding the following to the end of item (iii) of the third paragraph of
such Section:
	 
	 	 	 	“***”
	 
	 	12.	 	Section 18 (“Abuse of Services”) of the Terms and Conditions to the Agreement is hereby
amended by adding the following:
	 
	 	 	 	“(g) ***;
	 
	 	(h)	 	***; or
	 
	 	(i)	 	***.”
	 
	 	13.	 	Section 18 (“Abuse of Services”) of the Terms and Conditions to the Agreement is hereby
amended by adding the following (changes in italics) to the last sentence of the final
paragraph of such Section 18:
	 
	 	 	 	“If Publisher violates the same provision of this Section 18 more than once *** or any of
the provisions of this Section 18 more than twice, Overture may terminate this Agreement
without providing opportunity to cure.”

Overture Confidential

*** — Portions of this page have been omitted pursuant to a request for confidential treatment and
filed separately with the Securities and Exchange Commission

2

 

			
	EXECUTION COPY
	 	Contract No. #205132-3

	 	14.	 	Section 27 (“Expiration/Termination”) is hereby amended to add Sections *** of the ***
to those Sections that will survive expiration or termination of the Agreement.
	 
	 	15.	 	Section 30 (“Definitions”) is hereby amended such that the definition of each of
“Links” and “Territory” in such Section reads as follows (changes in italics):
	 
	 	 	 	“Links: Search Boxes *** and Hyperlinks ***, to the extent included in the SO.”
	 
	 	 	 	“Territory: the United States, Canada and any other market upon which the parties
mutually agree in writing pursuant to the terms of this Agreement.”
	 
	 	16.	 	The Agreement is amended to add the *** (attached hereto as Exhibit 1) to the
Agreement.
	 
	 	17.	 	The Agreement is amended to add the mockups (attached hereto as Exhibit 2) to the
Mockups section of Attachment A to the Agreement.
	 
	 	18.	 	This Third Amendment may be executed in one or more counterparts, each of which when
executed shall be deemed to be the original but all of which taken together shall
constitute one and the same instrument.
	 
	 	19.	 	The Agreement is amended to provide that references in the Agreement to “this
Agreement” or “the Agreement” (including indirect references such as “hereunder”, “hereby”,
“herein” and “hereof”) shall be deemed references to the Agreement as amended hereby.
Capitalized terms not defined herein have the meanings set forth in the Agreement, except
as amended by this Third Amendment.
	 
	 	20.	 	Except as amended by this Third Amendment, the Agreement will remain in full force and
effect in accordance with its terms. In the event of a conflict between the terms of this
Third Amendment and the Agreement, the terms of this Third Amendment shall govern.

This Third Amendment has been executed by the duly authorized representatives of the parties as of
the Third Amendment Effective Date.

	 	 	 	 	 	 	 	 	 
	LOCAL.COM CORPORATION	 	 	 	OVERTURE SERVICES, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Stanley B. Crair
	 	 	 	By:
	 	/s/ Scott Bushman
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	Stanley B. Crair
	 	 	 	Name:
	 	Scott Bushman
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	COO/President
	 	 	 	Title:
	 	Senior Director
	 

	 	 
	 	 	 	 	 	 

Overture Confidential

*** — Portions of this page have been omitted pursuant to a request for confidential treatment and
filed separately with the Securities and Exchange Commission

3

 

			
	EXECUTION COPY
	 	Contract No. #205132-3

EXHIBIT 1

*** ATTACHMENT

***

Overture Confidential

*** — Portions of this page have been omitted pursuant to a request for confidential treatment and
filed separately with the Securities and Exchange Commission

4

 

			
	EXECUTION COPY
	 	Contract No. #205132-3

Exhibit 2

Mockups

www.localconnect.com

Overture Confidential

5

 

			
	EXECUTION COPY
	 	Contract No. #205132-3

www.mrlocal.com

Overture Confidential

*** — Portions of this page have been omitted pursuant to a request for confidential treatment and
filed separately with the Securities and Exchange Commission

6

 

			
	EXECUTION COPY
	 	Contract No. #205132-3

www.local.com

Overture Confidential

7

 

			
	EXECUTION COPY
	 	Contract No. #205132-3

Links

Overture Confidential

8

 

			
	EXECUTION COPY
	 	Contract No. #205132-3

Exhibit 3

List of *** approved by Overture

***

Overture Confidential

9

 

			
	EXECUTION COPY
	 	Contract No. #205132-3

Exhibit 4

*** approved by Overture as of the Third Amendment Effective Date

	 	 	 
	***

	 	***

***

Overture Confidential

10

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