Document:

EX-10.5

 Exhibit 10.5 

MUTUAL TERMINATION OF EMPLOYMENT AGREEMENT 

This Mutual Termination of Employment Agreement (“Agreement”) is entered into on this 7th day of January, 2019, but effective
as of the Effective Time (as defined below), by and among HopFed Bancorp, Inc., a Delaware corporation (“HopFed”), Heritage Bank USA, Inc. a Kentucky state chartered bank and wholly-owned
subsidiary of HopFed (“Heritage Bank”), and John E. Peck, the current President and Chief Executive Officer of HopFed and Heritage Bank (the “Executive”) (hereinafter collectively referred to as the
“Parties”). First Financial Corporation (“First Financial”), a bank holding company under the Bank Holding Company Act of 1956, as amended, and First Financial Bank, National Association (“First Financial
Bank”), a wholly-owned national banking association subsidiary of First Financial, are Parties for the limited purposes described herein. 

RECITALS 

WHEREAS, HopFed and the Executive and Heritage Bank and the Executive each entered into a certain Employment Agreement dated June 20,
2018 (collectively, the “Employment Agreement”); and 
 WHEREAS, pursuant to that certain Agreement and Plan of Merger,
dated January 7, 2019, by and between HopFed and First Financial (the “Merger Agreement”), HopFed shall be merged with and into First Financial (the “Merger”) effective as of the date and time provided in the
Merger Agreement (the “Effective Time”); and 
 WHEREAS, Heritage Bank will be merged into First Financial Bank at the
Effective Time or shortly thereafter; and 
 WHEREAS, pursuant to the Merger Agreement, as a condition precedent to the Merger, First
Financial has consented to the termination of the Employment Agreement; and 
 WHEREAS, in light of the Merger, the Parties desire to
mutually terminate the Employment Agreement. 
 NOW, THEREFORE, in consideration of the mutual promises herein contained, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 

1.    Termination of Employment Agreement. The Parties hereby agree that the Employment Agreement shall terminate,
and all of the Executive’s rights to compensation, payments and/or benefits under the Employment Agreement shall cease effective as of the Effective Time (except: (i) any vested benefits to which the Executive is entitled under any tax-qualified retirement plan sponsored by HopFed or Heritage Bank that is designed to satisfy the requirements of Section 401(a) of the Internal Revenue Code of 1986, as amended (the “Code”);
(ii) any accrued, but unpaid salary and/or vacation or other paid time off; or (iii) under Section 2 of this Agreement). Notwithstanding the foregoing, the Executive hereby acknowledges and agrees that the Amount (as
defined below) to be paid to the Executive hereunder is in lieu of any severance benefits that would otherwise be available to the Executive under any other agreement or severance pay policy or practice of HopFed or its subsidiaries or affiliates,
or First Financial or its subsidiaries or affiliates, in the event that the Executive’s employment with either HopFed, Heritage Bank, First Financial or First Financial Bank, or any of their subsidiaries or affiliates, terminates for any
reason. 

  
  

			
	MUTUAL TERMINATION OF EMPLOYMENT AGREEMENT	  	PAGE 1

 2.    Consideration. Contingent upon the Executive’s
execution of this Agreement (including the Release in Appendix A), the Merger becoming effective, the Executive not revoking the Release, and the Executive’s continued full compliance with the terms and conditions of this Agreement, HopFed or
Heritage Bank will provide to the Executive the following consideration, and the Executive will make the following acknowledgements regarding such consideration: 

(a)    Subject to Section 4, as consideration for the Executive to enter into
this Agreement and its attachments, appendices and exhibits, to terminate the Employment Agreement with Heritage Bank, Heritage Bank shall pay to the Executive the gross amount of $916,678.00 (the “Amount”), less any withholdings
for applicable taxes required by law. Subject to the foregoing, Heritage Bank shall pay the Amount to the Executive in a lump sum through its payroll system at the first regular payroll date after the Release at Appendix A is executed and the
waiting period has passed without revocation by the Executive.    An Internal Revenue Service Form W-2 shall be issued to the Executive for the Amount. The Executive shall not have any
right to pledge, assign or in any way create a lien upon the Amount. The Amount is not assignable in anticipation of payment, either by voluntary or involuntary acts, or by operation of law. Except for the legally required withholdings and payroll
deductions from the Amount, the Executive agrees that he/she is responsible for paying all taxes that may be owed by him/her on the Amount, and the Executive agrees to indemnify HopFed, and Heritage Bank from any and all liability, including, but
not limited to, taxes, penalties, interest and attorneys’ fees, if it is determined by a state or federal agency or court that tax liability arises from the Amount paid to the Executive, or on his/her behalf, under this Agreement. 

(b)    The Executive hereby acknowledges and agrees that: (i) the Amount is a sum which is equivalent
to the sum to which the Executive would otherwise be entitled under the Employment Agreement in the event of a qualifying termination of the Executive’s employment after a Change of Control; (ii) without executing this Agreement, the
Executive would not be entitled to receive the Amount at this time nor would he be entitled to receive it in a lump sum, which constitutes additional consideration to which Executive otherwise would not be entitled; and (iii) except as provided
in this Agreement, the Executive is not entitled to receive any further compensation, payments and/or employee benefits under the Employment Agreement or pursuant to the Executive’s employment relationship with HopFed and/or Heritage Bank.
Executive therefore acknowledges that he is not owed and will not seek any additional compensation or benefits beyond what is outlined in this Agreement, except that the parties agree and acknowledge that this Agreement does not waive or apply to
Executive’s right to receive any qualified retirement or pension benefits or related plans, the eligibility and entitlement to which shall be governed by the applicable plans. 

3.    Governing Law and Waiver of Jury Trial. To the extent subject to Section 409A of the Code, this
Agreement will be administered to comply with the provisions thereof and the regulations thereunder. To the extent not inconsistent with the previous sentence, this Agreement shall be governed by and construed in accordance with the laws of the
State of 

  
  

			
	MUTUAL TERMINATION OF EMPLOYMENT AGREEMENT	  	PAGE 2

 
Indiana, without reference to the choice of law principles or rules thereof. EACH OF THE PARTIES WAIVES ANY RIGHTS THAT IT MAY HAVE TO BRING A CAUSE OF ACTION IN ANY COURT OR IN ANY PROCEEDING
INVOLVING A JURY TO THE MAXIMUM EXTENT PERMITTED BY LAW. 
 4.    Limitation of Benefit. Notwithstanding anything
to the contrary in this Agreement, if there are payments to the Executive under this Agreement, the Employment Agreement or any other agreement, plan or arrangement which constitute “parachute payments,” as defined in Section 280G of
the Code, then the payments made to the Executive under all such agreements, plans or arrangements shall be limited to One Dollar ($1.00) less than the amount which would cause the payments to the Executive (including payments to the Executive which
are not included in this Agreement) to be subject to the excise tax imposed by Section 4999 of the Code. To the extent such payments must be reduced, the reduction shall be accomplished by reducing the amount of the lump sum payment otherwise
due under this Agreement. 
 5.    Return of Property. The Executive agrees that, (a) at a date no later
than the Executive’s last date of employment, he will return to HopFed and/or Heritage Bank all equipment, documents, memoranda, records, files, notes, diskettes, copies, credit cards, keys, computers, computer file passwords, and any other
materials and property of HopFed and Heritage Bank, including all Confidential Information in his/her possession or control, whether contained on his/her business, personal or home computer, cellular phone, tablets or other electronic portable
device; and (b) that the Executive will not retain or make any copies of the foregoing materials unless otherwise itemized in writing and provided to HopFed for approval. The Executive further agrees that he will not retain any login
information or passwords to HopFed or Heritage Bank’s computers, accounts or systems that would permit him/her to gain access to their computer systems and that he/he will not attempt to gain access to that information or retain any, emails and
other information or documents, whether in hard copy or electronic format, including those on his/her personal desktop and laptop computer(s) containing Confidential Information or belonging to HopFed or Heritage Bank, and if he/she later discovers
or becomes aware of any hard or electronic record that should have been returned upon the termination of employment, he/she will immediately notify HopFed and Heritage Bank (or its successors and assigns) and follow their instructions for returning
and/or deleting the records in his/her possession and will not retain any copies. 
 For purposes of this Agreement, the term
“Confidential Information” means any and all materials, records, data, documents, lists, writings, and information (whether in writing, printed, electronically stored, computerized, on disk or otherwise, including all copies, summaries,
analyses, drafts, and extracts) relating or referring in any manner to trade secrets (as currently defined under applicable law) of HopFed and/or Heritage Bank, as well as other non-public financial or
proprietary information of HopFed and/or Heritage Bank, including but not limited to business reports, business plans, projections, income statements, profit and loss statements, business strategies and/or strategic plans, internal audits, sales
information, sales techniques, business costs, product pricing, budgets, research and development, intellectual property, software and/or computer programs, marketing strategies or ideas, marketing plans or materials, business development plans or
strategies, records or information relating to customers or account holders of Heritage Bank, customer lists, inventions, and processes, systems, methods, documentation or devices used in or pertaining to the business of HopFed and/or Heritage Bank
which are unique to the business of or services or products of HopFed or Heritage Bank. 

  
  

			
	MUTUAL TERMINATION OF EMPLOYMENT AGREEMENT	  	PAGE 3

 6.    Binding Effect; Assignment. This Agreement shall be binding
upon and inure to the benefit of HopFed and Heritage Bank and their respective successors and assigns. This Agreement may be assigned, without the prior consent of the Executive, to a successor of HopFed or Heritage Bank (and the Executive hereby
consents to the assignment of the covenants under this Agreement to a purchaser of all or substantially all of the stock of HopFed or Heritage Bank, by merger or otherwise) and, upon the Executive’s death, this Agreement shall terminate except
to the extent any payments remain due Executive in which case the payments shall inure to the benefit of and be enforceable by the Executive’s executors, administrators, representatives, heirs, distributees, devisees, and legatees, and all
amounts payable hereunder shall be paid to such persons or the estate of the Executive. 
 7.    Entire
Agreement. This Agreement, including all attachments, appendices and exhibits hereto, comprises the entire agreement between the Parties with respect to the subject matter hereof and supersedes all earlier agreements (whether oral or written)
relating to the subject matter hereof. 
 8.    Waiver; Amendment. No provision or obligation of this Agreement
may be waived or discharged unless such waiver or discharge is agreed to in writing and signed by the parties to be bound. The waiver by any Party hereto of a breach of or noncompliance with any provision of this Agreement shall not operate or be
construed as a continuing waiver or a waiver of any other or subsequent breach or noncompliance hereunder. Except as expressly provided otherwise herein, this Agreement may be amended, modified, or supplemented only by a written agreement executed
by parties to be bound thereto. 
 9.    Severability. All provisions of this Agreement are severable from one
another, and the unenforceability or invalidity of any provision of this Agreement shall not affect the validity or enforceability of the remaining provisions of this Agreement; provided, however, that should any judicial body
interpreting this Agreement deem any provision to be unreasonably broad in time, territory, scope or otherwise, the parties intend for the judicial body, to the greatest extent possible, to reduce the breadth of the provision to the maximum legally
allowable parameters rather than deeming such provision totally unenforceable or invalid. 
 10.    Further
Assurances. Each of the Parties hereto shall do, execute, acknowledge, and deliver or cause to be done, executed, acknowledged and delivered at any time and from time to time upon the request of any other Parties hereto, all such further acts,
documents and instruments as may be reasonably required to affect any of the transactions contemplated by this Agreement. 

11.    Notice. Any notice, request, instruction, or other document to be given hereunder to any Party shall be in
writing and delivered by hand, registered or certified United States mail, return receipt requested, or other form of receipted delivery, with all expenses of delivery prepaid, as follows: 

 

			
	     If to the Executive:
	  	If to Heritage Bank:
		
		  	4155 Lafayette Road,
		  	Hopkinsville, KY42240

 or to such other address as any of the Parties hereto may have furnished to the others in writing in accordance with the
preceding. 

  
  

			
	MUTUAL TERMINATION OF EMPLOYMENT AGREEMENT	  	PAGE 4

 12.    Headings. The headings in this Agreement have been
inserted solely for ease of reference and shall not be considered in the interpretation, construction, or enforcement of this Agreement. 

13.    Release. For and in consideration of the foregoing covenants and promises made by HopFed and Heritage Bank,
and the performance of such covenants and promises, the sufficiency of which is hereby acknowledged, the Executive agrees to release HopFed and Heritage Bank and all other persons named in the Release (as defined below) from any and all causes of
action that the Executive has or may have against them before the effective date of the Release, other than a breach of this Agreement. The Executive shall execute a separate Release Agreement substantially in the form attached hereto as Appendix
A (the “Release”). The signing of this Agreement and the payment of the Amount is not an admission of fault or potential liability on the part of any of the Released Parties (as defined in the Release). This Agreement is entered
into in an effort to provide the Executive with certain accommodations and to terminate his Employment Agreement on an amicable basis. THE EXECUTIVE’S RIGHT TO BENEFITS HEREUNDER SHALL BE CONTINGENT ON THE SIGNING, RETURNING, AND NOT REVOKING
THE RELEASE WITHIN THE PERIODS REQUIRED BY LAW AND AS PROVIDED IN THE RELEASE. 
 14.    Review and Consultation.
The Parties hereby acknowledge and agree that each (a) has read this Agreement in its entirety prior to executing it, (b) understands the provisions and effects of this Agreement, (c) has consulted with such attorneys, accountants,
and financial and other advisors as it or he or she has deemed appropriate in connection with their respective execution of this Agreement, and (d) has executed this Agreement voluntarily. THE EXECUTIVE HEREBY UNDERSTANDS, ACKNOWLEDGES, AND
AGREES THAT THIS AGREEMENT HAS BEEN PREPARED BY COUNSEL FOR FIRST FINANCIAL, AND THAT THE EXECUTIVE HAS NOT RECEIVED ANY ADVICE, COUNSEL, OR RECOMMENDATION WITH RESPECT TO THIS AGREEMENT FROM HOPFED, HERITAGE BANK, FIRST FINANCIAL, FIRST FINANCIAL
BANK, OR THEIR RESPECTIVE COUNSEL. EXECUTIVE ACKNOWLEDGES THAT HE/SHE HAS EXECUTED THE AGREEMENT SOLELY IN RELIANCE UPON HIS/HER OWN KNOWLEDGE, BELIEF AND JUDGMENT, AND NOT UPON ANY REPRESENTATION BY HOPFED, HERITAGE BANK, OR ANY AGENT,
REPRESENTATIVE OR PERSON ASSOCIATED WITH HOPFED OR HERITAGE BANK. EXECUTIVE FURTHER REPRESENTS THAT NO PROMIS, INDUCEMENT, OR AGREEMENT, NOT EXPRESSED HEREIN, HAS BEEN MADE OR OFFERED TO HIM/HER, AND THAT THE TERMS OF THIS AGREEMENT ARE CONTRACTUAL
AND NOT MERE RECITALS. 
 15.    Counterparts. This Agreement may be executed in any number of
identical counterparts, each of which shall be deemed a duplicate original but all of which shall constitute one and the same agreement. The Parties agree that signatures transmitted by facsimile or other electronic means are acceptable the same as
original signatures for the execution of the Agreement. 
 16.    Construction. This Agreement is
the result of negotiations between the Parties, and no party shall be deemed to be the drafter of this Agreement; accordingly, this Agreement shall be interpreted and construed without any presumption or inference based upon or against the party
causing this Agreement to be prepared. The language of this Agreement shall in all cases be construed as a whole, according to its fair meaning and not strictly for or against any party. 

  
  

			
	MUTUAL TERMINATION OF EMPLOYMENT AGREEMENT	  	PAGE 5

 17.    Jurisdiction and Venue. The parties agree that all suits,
actions, proceedings, litigation, disputes, or claims relating to or arising out of this Agreement shall be filed and tried in the Superior or Circuit Court, as appropriate, of Vigo County, Indiana, or the United States District Court for the
Southern District of Indiana, Terre Haute Division. In this regard, the parties hereby: (a) agree that venue shall be such stated courts; (b) irrevocably consent to service of process and to the jurisdiction and venue of such courts; and
(c) irrevocably waive any claim of inconvenient forum if any such suit, claim, proceeding, litigation, dispute, or claim has been filed, brought, or made in any of such courts. 

[Signature Page Follows] 

  
  

			
	MUTUAL TERMINATION OF EMPLOYMENT AGREEMENT	  	PAGE 6

 IN WITNESS WHEREOF, the undersigned have
executed this Mutual Termination of Employment Agreement as of the day and year first above written. 
  

									
		 		 		 	 /s/ John E. Peck

		 		 		 	JOHN E. PECK
			
	HOPFED BANCORP, INC.	 	        	 	HERITAGE BANK USA, INC.
					
	By:	 	 /s/ John E. Peck
	 		 	By:	 	 /s/ John E. Peck

					
	Its:	 	 President/CEO
	 		 	Its:	 	 President/CEO

 For the limited purpose of acknowledging its consent, pursuant to the Merger Agreement, to HopFed and Heritage
Bank entering into this Agreement: 
  

									
	FIRST FINANCIAL CORPORATION	 		 	FIRST FINANCIAL BANK, NATIONAL ASSOCIATION
					
	By:	 	 /s/ Norman L. Lowery
	 	        	 	By:	 	 /s/ Norman L. Lowery

					
	Its:	 	 President &CEO
	 		 	Its:	 	 President &CEO

  
  

SIGNATURE PAGE 

MUTUAL TERMINATION OF EMPLOYMENT AGREEMENT 

 APPENDIX A 

RELEASE AGREEMENT 

RELEASE OF CLAIMS 

[DO NOT SIGN UNTIL EFFECTIVE TIME OF MERGER] 

FOR VALUABLE CONSIDERATION, including the payment to the undersigned Executive of certain consideration pursuant to that certain Mutual
Termination of Employment Agreement (“Agreement”) previously executed by and among Executive, HopFed Bancorp, Inc. (the “Holding Company”), and Heritage Bank USA, Inc. (the “Bank”), in connection with the merger
(“Merger”) between HopFed and First Financial Corporation (“First Financial”), Executive hereby freely and voluntarily makes this Release of Claims (“Release”). 

1.    Subject to the carve-out provisions set forth below, Executive, for his/her
own behalf and on behalf of his/her heirs, personal representatives, executors, administrators, agents, and assigns, hereby forever and fully releases, acquits, and discharges the Holding Company, the Bank, First Financial, First Financial Bank
National Association, and each of their subsidiaries, affiliates, and divisions, officers, directors, shareholders, managers, agents, representatives, employees, attorneys, insurers, successors and assigns (collectively the “Released
Parties”), of and from any and all claims, actions, suits, debts, expenses, accounts, covenants, contracts, agreements, promises, obligations, warranties, trespasses, torts, injuries, losses, damages, attorneys’ fees, court costs, demands
or other liability or relief of any nature whatsoever arising prior to the execution of the Release, whether known or unknown, foreseen or unforeseen, fixed or contingent, brought at law, in equity, or before any administrative agency or department,
that Executive ever had or now has, including but not limited to all matters arising out of or in any way relating to Executive’s employment by the Bank and/or any other occurrence or event up to and including the signing of this Release. No
rights or claims arising after the execution of this Release are waived hereby. 
 The above release provision includes, but is not limited
to, those claims arising under: (a) The Civil Rights Act of 1866, 42 U.S.C. §1981; (b) Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, 42 U.S.C. §2000e, et. seq.; (c) the Age Discrimination in
Employment Act of 1967 (“ADEA”); (d) the Older Workers Benefit Protection Act (“OWBPA”); (e) the Americans with Disabilities Act, as amended by the Americans with Disabilities Act Amendment Act; (f) the Family and Medical
Leave Act; (g) the Indiana Wage Payment and Indiana Wage Claims Acts and/or any Kentucky wage statutes; (h) the Indiana Civil Rights Act and/or Kentucky civil rights laws; (i) the Fair Labor Standards Act; (j) the Employee
Retirement Income Security Act (“ERISA”), except to the extent unrelated to Executive’s separation from employment to enforce any right to vested benefits; (k) any other federal, state, or local statutes or ordinances;
(l) any and all tort or contract claims, including but not limited to breach of contract, breach of good faith and fair dealing, infliction of emotional distress, or wrongful termination or discharge; and, (m) any and all claims which
could have been alleged or pleaded in any litigation or other legal proceeding between Executive and any of the Released Parties by reason of, arising out of or in any way relating to Executive’s employment by the Bank or the Merger. 

  
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 Nothing contained in this Release, including the release set forth above, is intended to or
shall preclude or prohibit Executive from filing a claim or charge with the Equal Employment Opportunity Commission (EEOC) or a corresponding state or local administrative body, or any another other federal, state, or local governmental agency
charged with enforcement of any law. Executive retains the right to participate in any such action; however, Executive shall not be entitled to any individual relief (monetary, equitable, or otherwise) as a result of any such claim, action, or
charge. Furthermore, Executive retains the right to communicate with any governmental authority and such communication can be initiated by Executive or in response to the governmental authority and is not limited by any obligation Executive has
under this Release or the Agreement, including any nondisclosure or confidentiality provisions. 
 2.    In the event
Executive is forty (40) years of age or older, Executive understands that he/she is covered by the provisions of the ADEA and OWBPA. Accordingly, Executive has been given a period of at least twenty-one
(21) days, within which to consider and execute the Release (“Review Period). Executive may use as much or as little of the Review Period as he/she desires. Executive’s signature on the Release constitutes a waiver of any days
remaining in the Review Period. Furthermore, Executive has been advised that after he/she signs this Release, he/she has an additional seven (7) days within which to revoke the Release. The Release shall become final and binding on the eighth
day after Executive signs the Release, provided that he/she does not timely revoke the Release (“Effective Date”). Executive may timely revoke his/her signature of the Release if he/she provides written notice by 5:00 PM on or before the
seventh day after signing the Release, provided that Executive’s written notice is either: (1) hand-delivered to and receipted by the Chairman of the Board, Heritage Bank USA, Inc., 4155 Lafayette Road, Hopkinsville, Kentucky, 42240; or
(2) delivered by receipted overnight delivery service to the Chairman of the Board, Heritage Bank USA, Inc., 4155 Lafayette Road, Hopkinsville, Kentucky, 42240. 

3.    This Release cannot be modified, amended or changed, without the written consent of the Bank, the Holding Company,
and First Financial and First Financial Bank, National Association. 
 4.    The invalidity or unenforceability of any
provision or provisions in the Release shall not affect the validity or enforceability of any other provision of the Release, which shall remain in full force and effect. 

5.    The laws of the States of Indiana shall govern the validity, interpretation, construction, performance and
enforcement of the Release regardless of where Executive resides. Executive agrees that any action related to the Release shall be brought and tried in either state court located in Terre Haute, Indiana, or federal court in the Southern District of
Indiana, Terre Haute Division, as appropriate. Executive hereby: (a) agrees that venue shall be in such courts; (b) irrevocably consents to service of process and to the jurisdiction and venue of such courts; and (c) irrevocably
waives any claim of inconvenient forum if any such suit, claim, proceeding, litigation, dispute, or claim has been brought, filed, or made in any such court. 

  
 9 

 

 6.    In the event any of the Released Parties assert the Release as a
defense to an action brought by or on behalf of Executive, and the Released Parties prevail, the Released Parties shall be entitled to recover its or their reasonable attorneys’ and paralegal fees, costs and expenses, unless otherwise
prohibited under federal or state law. This provision does not apply to any action or claim Executive may assert under the ADEA, or any other federal or state statute or law that prohibits the recovery of such fees, costs and expenses by the
Released Parties. 
 7.    Executive represents that he/she has read this Release, fully understands each and every
provision of this Release; and has voluntarily, of her own accord, executed this Release. Executive acknowledges that in consideration of accepting the payment of the amount specified in the Agreement, he/she is releasing certain legal claims.
EXECUTIVE HAS BEEN AFFIRMATIVELY ADVISED TO SEEK LEGAL COUNSEL OF HIS/HER OWN CHOOSING BEFORE EXECUTING THIS RELEASE. Executive acknowledges that he/she has carefully read and fully understands the provisions of the Release and that he/she
has executed this Release based upon advice of his/her attorney. Executive further acknowledges that the Release has been executed solely in reliance upon Executive’s own knowledge, belief and judgment, and not upon any representations by the
Holding Company or the Bank, or any individual or party associated with the Holding Company or the Bank or its successors or assigns. Executive further declares and represents that no promise, inducement or agreement, not herein expressed, has been
made to him/her, and that the terms of the Release are contractual and not mere recitals. 
 I, the undersigned Executive, hereby
expressly state that if I decide to execute this Release prior to the expiration of the twenty-one (21) day Review Period, it has been done on a knowing and voluntary basis, and has not been induced by
the Holding Company, Bank, First Financial, First Financial Bank, National Association, or its or their attorneys, representatives or agents, through fraud, misrepresentation, a threat to withdraw or alter the offer, or by providing different terms
to me for signing the Release prior to the expiration of the Review Period. 
 EXECUTIVE HAS READ THE ENTIRE RELEASE BEFORE SIGNING BELOW. 

IN WITNESS WHEREOF, the Executive has executed this Release on the date stated below. 

Executive 
  

					
	 Printed Name: John E. Peck
	  	 Date:
                            

			
	 Signature:
	  	  
	  	

  
 10EX-10.6

 Exhibit 10.6 

NON-DISCLOSURE AND NON-SOLICITATION AGREEMENT

 THIS NON-DISCLOSURE AND NON-SOLICITATION
AGREEMENT (“Agreement”) is made and entered into, effective as of the date first written below, by and among First Financial Corporation (“First Financial”), First Financial Bank, N.A.
(“Bank”), a wholly-owned subsidiary of First Financial, HopFed Bancorp, Inc. (“HopFed”), Heritage Bank USA, Inc., (“Heritage”), a wholly-owned subsidiary of HopFed, and John E.
Peck (“Employee”). “Banking Organization” shall mean First Financial, the Bank, HopFed, and/or Heritage. “Financial Institution” shall mean the Bank and/or Heritage. First Financial, the Bank, HopFed, Heritage and
Employee may be collectively referenced as the “parties” or individually as a “party.” 
 WHEREAS, pursuant to that
certain Agreement and Plan of Merger, dated January 7, 2019, by and between HopFed and First Financial (the “Merger Agreement”), HopFed shall be merged with and into First Financial (the “Merger”) effective as
of the date and time provided in the Merger Agreement (the “Effective Time”); and 
 WHEREAS, Heritage will be merged into
the Bank at the Effective Time or shortly thereafter; and 
 WHEREAS, Employee is currently an employee of Heritage and the Bank intends to
offer employment to the Employee to provide services for and on behalf of the Bank immediately upon the Effective Time; 
 WHEREAS, as a
result of employment with Heritage up to the Effective Time and with the Bank thereafter, Employee had, has and will have access to Confidential Information (as defined below) and may have acquired or will acquire knowledge regarding Confidential
Information, including, but not limited to, information regarding Customers or Potential Customers (as defined below), and a Banking Organization could be harmed if such Confidential Information were to be used, divulged or become known to any
competitor of a Banking Organization or to any other Person (as defined below) or to any entity outside of a Banking Organization; 

WHEREAS, Employee has developed or may develop contacts and business relationships with Customers or Potential Customers which could be used
to the detriment of a Banking Organization and/or to solicit employees away from a Banking Organization; and 
 WHEREAS, each Banking
Organization desires reasonable protection of its respective confidential business and customer information which such Banking Organization has developed and will develop over the years at substantial expense. 

  
 1 

 NOW, THEREFORE, the parties incorporate the above recitals, and in consideration of the
mutual promises, covenants and agreements made herein, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

1.    Consideration/Employment. 
  

	 	a.	 This Agreement neither constitutes an employment contract or agreement to Employee for a stated period of time,
nor does it alter Employee’s existing employment status. 

  

	 	b.	 In consideration of Employee’s promises, covenants and agreements set forth in this Agreement, (i) as
of the date of this Agreement and up to the Effective Time Heritage shall maintain Employee’s employment with the compensation and benefits commensurate therewith, and (ii) effective as of the Effective Time, the Bank shall offer or
maintain Employee’s employment pursuant to that certain Employment Agreement dated January 7, 2019, and effective as of the Effective Time, with the compensation and benefits commensurate therewith. 

2.    Duties. Employee shall devote his/her full working time and attention to the performance of those services
for the Banking Organization which are assigned to him/her from time to time and to perform such services in a faithful, honest and diligent manner and in the best interest of such Banking Organization. 

3.    Definitions of Key Terms. 
  

	 	a.	 “Banking and Financial Services” shall mean those banking and related financial services of a Banking
Organization or subsidiary thereof, including but not limited to, checking and savings accounts, health savings accounts, money market accounts, loans, credit cards, cash management services, lines of credit, investment services (such as IRAs,
college savings plans, estate planning, investment planning, business planning), and trust services, provided during any period in which Employee served or will serve in any capacity for a Financial Institution and all banking and related financial
services substantially similar to such banking and related financial services. 

  

	 	b.	 “Confidential Information” shall mean any and all materials, records, data, documents, lists,
writings, and information (whether in writing, printed, electronically stored, computerized, on disk or otherwise, including, but not limited to, all copies, summaries, analyses, drafts, and extracts) relating or referring in any manner to trade
secrets (as currently defined under applicable law, including, but not limited to, the Indiana Uniform Trade Secrets Act and any amendments or successor statutes) of a Banking Organization, as well as other
non-public financial or proprietary information of a Banking Organization including, but not limited to, business reports, business plans, projections, income statements, profit and loss statements, business
strategies and/or strategic plans, internal audits, sales information, sales techniques, business costs, product pricing, budgets, research and development, intellectual property, software and/or computer programs, marketing strategies or ideas,
marketing plans or materials, business development plans or strategies, records or information relating to customers or account holders , customer lists, inventions, and processes, systems, methods, documentation or

  
 2 

	 	
devices which are unique or proprietary to the business of or services or products of a Banking Organization. Confidential Information shall not include information that: (i) is or becomes
readily or publicly available, not as a result of a violation of this Agreement or other obligation of confidence, directly or indirectly, of the disclosing party; (ii) is developed by other parties, including, but not limited to, subsequent
employers of the Employee, independent of the knowledge or resources of the Employee based upon his or her prior access to a Banking Organization’s Confidential Information; (iii) is independently developed after the Employee’s
termination of employment without reference to or use of the Confidential Information or materials based thereon; (iv) is based on the Employee’s personal experience, knowledge, enterprise and expertise in the delivery of Banking and
Financial Services and which is general knowledge concerning the industry, not specific to a Banking Organization; or (v) is disclosed pursuant to the requirements of a court, administrative agency or other governmental agency.

  

	 	c.	 “Customers” or “Customer” shall mean any Person to whom a Banking Organization rendered or
provided Banking and Financial Services at any time during the one-year period prior to Employee’s termination of employment with a Financial Institution: (i) with whom Employee had any material
contact (either directly or indirectly); (ii) which Employee managed, had responsibility for or regularly serviced while employed by the Financial Institution, provided, however, this shall not be construed to include supervising those who
have such a relationship to the Customer; or, (iii) about which Employee obtained Confidential Information. 

  

	 	d.	 “Employees,” “Agents,” and “Independent Contractors” shall mean any and all
persons employed or contracted by a Banking Organization or who were employed or contracted by a Banking Organization, as an employee, agent or independent contractor, within the six (6) month period prior to Employee’s termination of
employment with either Financial Institution. 

  

	 	e.	 “Person” shall mean any individual, partnership, corporation, organization, bank, credit union, firm,
association, limited liability company, trust, joint venture, company or other entity, body, agency or department thereof. 

  

	 	f.	 “Potential Customer” shall mean any Person that Employee directly solicited, targeted or specifically
identified as a prospective or potential customer, or about which Employee obtained information on behalf of a Banking Organization for purposes of directly soliciting, targeting or specifically identifying as a prospective or potential customer,
during the one (1) year period prior to Employee’s termination of employment with either Financial Institution. 

  

	 	g.	 “Solicit”, “Solicited” or “Solicitation” means any direct or indirect
communication of any kind whatsoever, regardless of by whom initiated, inviting, advising, inducing, encouraging, enticing, or requesting either expressly or implicitly, any Person, in any manner, to take or refrain from taking action, provided,
however, this definition does not include communications initiated by Customers or Potential Customers of their own initiative, without prompting or encouragement by Employee or anyone acting on Employee’s behalf. 

  
 3 

 4.    Non-Disclosure of
Confidential Information. During the course of Employee’s employment with a Financial Institution, Employee agrees that Employee has or will continue to become knowledgeable about, or come to be in possession of, Confidential Information.
If such Confidential Information were to be divulged or become known to any competitor of a Banking Organization, or to any other Person outside of a Banking Organization, or if Employee were to consent to be employed by any competitor of a Banking
Organization, or to engage in competition with a Banking Organization, such Banking Organization will be harmed. In addition, Employee has or may develop relationships with Customers or Potential Customers so that the Confidential Information could
be used to Solicit the business of such Customer or Potential Customer away from a Banking Organization. 
 Employee shall not, directly or
indirectly, use any Confidential Information for any purpose other than the benefit of a Banking Organization, and shall not directly or indirectly, disclose, communicate, deliver, exhibit or provide any Confidential Information to any Person,
except other Employees or Agents of a Banking Organization who have a need to know such Confidential Information for a proper corporate or business purpose, as required in the normal course of Employee’s service as an employee. Nothing in
this Section 4, or any other provision of this Agreement, shall be construed to prohibit Employee from reporting conduct to, providing truthful information to, or participating in any
investigation or proceeding brought or conducted by any federal or state government agency or self-regulatory organization. 
 Employee
specifically acknowledges that the Confidential Information, whether reduced to writing or maintained electronically or in the mind or memory of Employee and, whether compiled by a Banking Organization and/or the Employee, derives independent
economic value from not being readily known to or ascertainable by proper means by others who can obtain economic value from its disclosure or use, that reasonable efforts have been put forth by each Banking Organization to maintain the secrecy of
such information, that such information is the sole property of such Banking Organization and that any retention and/or use of such information during or after Employee’s employment with either Financial Institution (except in the course of
performing the Employee’s duties of employment with a Financial Institution and except as otherwise set forth above) constitutes a misappropriation of a Banking Organization’s Confidential Information. 

Employee agrees that all Confidential Information and all records, documents and materials relating to all Confidential Information (including
all copies thereof) shall be and remain the sole and exclusive property of a Banking Organization, and upon Employee’s termination of employment, all such Confidential Information, whether in paper or electronic form, shall be returned to a
Financial Institution in good condition, without Employee retaining a copy thereof, including, but not limited to, retaining an electronic copy on any electronic device regardless of whether such device is owned by Employee. At a Financial
Institution’s request, Employee shall provide written verification, under the penalties for perjury, of his/her compliance with this covenant. 

5.    Non-Solicitation of Customers and Potential Customers. Employee
acknowledges and agrees that by virtue of Employee’s position with a Banking Organization, Employee has or will have advantageous familiarity and personal contacts with Customers and Potential Customers and will have advantageous familiarity
with the business operations and affairs of a Banking Organization. Employee 

  
 4 

 
further acknowledges and agrees that Employee has been or will be placed in a position that, were Employee to leave a Financial Institution to compete with the business of a Banking Organization,
such entity from which the Employee departed would, upon violation of this Agreement, suffer irreparable harm and financial loss, as well as lost goodwill and Confidential Information. Therefore, in consideration of the covenants of all Financial
Institutions contained herein, Employee agrees that during Employee’s employment with a Financial Institution, and for a period of one (1) year immediately following the termination of Employee’s employment with a Financial
Institution (“Restriction Period”), for whatever reason and regardless of how Employee’s employment was terminated, Employee shall not, directly or indirectly (including, but not limited to, through other individuals, any partnership,
corporation or business entity in which Employee has an ownership interest or serves as an officer, employee, independent contractor, representative, agent or consultant), either for Employee’s own benefit or the benefit of any other Person:

  

	 	a.	 Solicit, divert, or take away (or attempt to Solicit, divert or take away) any Banking and Financial Services
to or from any Customer or Potential Customer; or 

  

	 	b.	 advise, persuade or induce (or attempt to advise, persuade or induce) any Customer or Potential Customer to
terminate, reduce, limit, or change the Customer’s services or business relationship, or the Potential Customer’s contemplated services or business relationship, with a Financial Institution; or 

 

	 	c.	 directly provide Banking and Financial Services to, or directly accept Banking and Financial Services from, any
Customer or Potential Customer. 

 This Agreement is not intended to prevent Employee from accepting employment with an
organization that competes with the Banking Organizations by offering Banking and Financial Services to Customers or Potential Customers. The Parties acknowledge that Employee may be associated with such an Organization and that such association may
place Employee in a senior or supervisory role to those in the organization that have contact with Customers or Potential Customers. Employee shall not be in violation of this Agreement merely by engaging in such a role, which may include: 

 

	 	a.	 supervising those who provide Banking and Financial Services to Customers or Potential Customers;

  

	 	b.	 engaging in credit review, underwriting, loan approval, or financial analysis of a Customer or Potential
Customer’s business as a part of a supervisory or management role, so long as such activity does not require the disclosure of Confidential Information, direct contact with the Customer or Potential Customer, or the disclosure of
Employee’s role to the Customer or Potential Customer; 

  

	 	c.	 performing or supervising those that perform data processing, accounting, rate review, document review or
similar “back room” services related to a Customer or Potential Customer so long as the services do not require the disclosure of Confidential Information or contact with the Customer or Potential Customer. 

6.    Non-Solicitation of Employees and Others. In consideration of the
covenants of all Financial Institutions contained herein, Employee agrees that during Employee’s employment with a 

  
 5 

 
Financial Institution, and for a period of two (2) years immediately following the termination of Employee’s employment with a Financial Institution, for whatever reason and regardless
of how Employee’s employment was terminated, Employee shall not, directly or indirectly (including, but not limited to, through other individuals, any partnership, corporation or business entity in which Employee has an ownership interest or
serves as an officer, employee, independent contractor, representative, agent or consultant), either for Employee’s own benefit or the benefit of any other Person: 
  

	 	c.	 Solicit, entice or persuade (or attempt to Solicit, entice or persuade) any Employee to terminate his or her
employment with a Banking Organization, or offer or provide employment (whether such employment is with Employee or any other Person) either on a full-time or part-time, consulting or Independent Contractor basis; or 

 

	 	d.	 Solicit, entice or persuade (or attempt to Solicit, entice or persuade) any Independent Contractors or Agents
to terminate their contract or relationship with a Banking Organization or discontinue providing services to a Banking Organization and/or Customers; or 

  

	 	e.	 Solicit, entice or persuade (or attempt to Solicit, entice or persuade) any suppliers, vendors or others who
were supplying services or goods to a Banking Organization during the one year period prior to Employee’s termination, to terminate, reduce, limit or change their business or relationship with a Banking Organization. 

7.    Tolling of Covenants. Employee acknowledges that a Banking Organization is entitled to the full
post-termination restrictions on the activities set forth in Sections 5 and 6, as applicable. Therefore, in the event any of the provisions of these Sections are breached by Employee, the commencement of the applicable post-termination
restriction will not begin until Employee is in full compliance with Section 5 and/or 6. 

8.    Severability/Blue Pencil. Each of the provisions of this Agreement, including, but not limited to, the
restrictive covenants in Sections 5 and 6, are distinct and severable, notwithstanding that the covenants may be set forth in one section for convenience. If any provision of this Agreement shall be determined to be invalid, illegal or
unenforceable in whole or in part, for any reason, neither the validity of the remaining part of such provision nor the validity of any other provision of this Agreement shall in any way be affected. Should any particular restrictive covenant,
provision or clause of this Agreement be held unreasonable or unenforceable for any reason, including without limitation, the time period, geographic area and/or scope of activity covered by such covenant, provision or clause, the parties
acknowledge and agree that such covenant, provision or clause shall be given effect and enforce to whatever extent would be reasonable and enforceable under applicable law. The parties expressly authorize a court of competent jurisdiction to modify
or revise such provision to limit the covenants to cover the maximum period of time, range of activities or other restrictions as would be enforceable under Indiana law. 

9.    Available Relief. Employee agrees that a Banking Organization, or its successor or assigns, will suffer
irreparable damage and injury and will not have an adequate remedy at law in the event of any breach by Employee of any provision of Sections 4, 5 or 6, herein. Accordingly, in the event of a breach or of a threatened or attempted breach by
Employee of Sections 4, 5, or 6, in addition to all other remedies to which a Banking Organization is entitled under law, in equity, or otherwise (including, but not limited 

  
 6 

 
to, monetary damages), a Banking Organization or its assigns and successors, shall be entitled to a temporary restraining order and/or preliminary or permanent injunction (without the necessity
of showing any actual damage) or a decree of specific performance and no bond or other security shall be required in that connection. 

10.    Enforcement/Attorneys’ Fees. In any action that is brought to enforce or interpret this Agreement, the
prevailing party or its assigns and successors, shall be entitled to recover their reasonable attorneys’ and paralegal fees and expenses incurred in connection therewith. If a Banking Organization or its assigns and successors, institute any
action or proceeding to enforce the provisions of this Agreement, Employee hereby waives all claims or defenses that a Banking Organization or its assigns and successors, have an adequate remedy at law, and Employee shall not urge in any such action
or proceeding the claim or defense that such a remedy at law exists. 
 11.    Assignments; Successors and
Assigns. The rights and obligations of Employee hereunder are not assignable or delegable by Employee, and any prohibited assignment or delegation will be null and void. The Banking Organization may, without the consent of the Employee, assign
this Agreement to any successor or in connection with any merger, consolidation, share exchange, combination, sale of stock or assets or similar transaction. The provisions hereof shall inure to the benefit of and be binding upon the successors and
assigns of a Banking Organization. 
 12.    Governing Law. This Agreement shall be interpreted under, subject to
and governed by the laws of the State of Indiana, without consideration of the choice of law principles thereof, and all questions concerning its validity, construction and administration shall be determined in accordance with Indiana law. 

13.    Entire Agreement/Modification/Waiver. This Agreement constitutes the entire agreement among the parties
relating to the subject matter hereof and expressly supersedes any prior agreements between the parties relating to the subject matter hereof. This Agreement shall not be terminated, amended or modified without the prior written consent of the
Bank’s President and Chief Executive Officer and Employee. No failure or delay by a Banking Organization in exercising any right or remedy under this Agreement shall operate as a waiver thereof, nor shall any waiver by a Banking Organization
under this Agreement operate or be construed as a continuing waiver or a waiver of any subsequent breach or noncompliance hereunder. No single or partial exercise of any right or remedy by a Banking Organization shall preclude any other or further
exercise thereof or the exercise of any other right or remedy. Any waiver by a Banking Organization under this Agreement shall be in writing and signed by the Bank’s President and Chief Executive Officer. A waiver shall operate only as to the
specific term or condition waived and will not constitute a waiver for the future or act on anything other than that which is specifically waived. 

14.    “No-Defense” Provision. The covenants set forth in this
Agreement are essential terms and conditions to a Banking Organization employing or continuing to employ Employee, and shall be construed as independent of any other obligations or agreements between Employee and a Banking Organization. The
existence of any claim or cause of action Employee may have against a Banking Organization, including, but not limited to, the alleged material breach by a Banking Organization of any agreement with Employee, shall not constitute a defense to the
enforcement by a Banking Organization of the covenants and obligations in this Agreement and shall not relieve Employee of his or her obligations under this Agreement. 

  
 7 

 15.    Jurisdiction and Venue. The parties agree that all suits,
actions, proceedings, litigation, disputes, or claims relating to or arising out of this Agreement shall be filed and tried in the Superior or Circuit Court, as appropriate, of Vigo County, Indiana, or the United States District Court for the
Southern District of Indiana, Terre Haute Division. In this regard, the parties hereby: (a) agree that venue shall be such stated courts; (b) irrevocably consent to service of process and to the jurisdiction and venue of such courts; and
(c) irrevocably waive any claim of inconvenient forum if any such suit, claim, proceeding, litigation, dispute, or claim has been filed, brought, or made in any of such courts. 

16.    Construction. This Agreement is the result of negotiations between the parties, and no party shall be deemed
to be the drafter of this Agreement; accordingly, this Agreement shall be interpreted and construed without any presumption or inference based upon or against the party causing this Agreement to be prepared. The language of this Agreement shall in
all cases be construed as a whole, according to its fair meaning and not strictly for or against any party. 

17.    Review and Consultation. Employee acknowledges and agrees that he/she has read this Agreement in its
entirety prior to executing it, understands the provisions and effects of this Agreement, and has consulted with or had the opportunity to consult with an attorney or other advisers as he/she deemed appropriate in connection with the execution of
this Agreement. 
 18.    Section Headings. Section headings are inserted into this Agreement for convenience
only and shall not affect any construction or interpretation of this Agreement. 
 19.    Reasonableness.
Employee agrees and acknowledges that the covenants, restrictions and obligations set forth in this Agreement, including Sections 5 and 6, are reasonable and necessary to protect a Banking Organization. Employee agrees that the covenants,
restrictions and obligations will not affect Employee’s ability to make a living. 
 20.    Counterparts.
This Agreement may be executed in any number of identical counterparts, each of which shall be deemed a duplicate original but all of which shall constitute one and the same agreement. The parties agree that signatures transmitted by facsimile or
other electronic means are acceptable the same as original signatures for the execution of the Agreement. 

21.    Miscellaneous. Any change in Employee’s duties, responsibilities, title, position, compensation, or
status, with a Financial Institution will not affect the validity or enforceability of this Agreement. 

22.    Representations. Employee represents and warrants that he/she is not a party to an agreement with his or her
prior employer(s) (other than Heritage or HopFed) or any other Person that prohibits Solicitation of business or competing with that employer or other Person. Employee affirms and represents that performance of his/her job duties and
responsibilities for a Financial Institution does not, and will not, breach any agreement or covenant not to Solicit business, compete in business, or keep in confidence proprietary or confidential information acquired in confidence or in trust
prior to Employee’s employment with a Financial Institution. Employee further represents that he/she has not retained any documents or information relating to Employee’s prior employers (other than Heritage or HopFed) that may be
considered confidential or proprietary information and that Employee has not disclosed or used, and will not disclose or use, any information relating to his or her prior employer(s) in connection with Employee’s employment with a Financial
Institution. 

  
 8 

 23.    Return of Property. Upon termination of
Employee’s employment, Employee shall immediately return to the Bank (if subsequent to the Effective Time) or Heritage (if prior to the Effective Time), all Banking Organizations documents and property, including, but not limited to,
Confidential Information, computer discs, manuals, reports, files, memoranda, records, door and file keys, passwords and access codes, and any other physical or tangible things that Employee received, prepared, or helped prepare in connection with
the Employee’s employment, and Employee shall not retain any copies, duplicates, reproductions or excerpts thereof. At the Bank’s or Heritage’s request, Employee shall provide written verification under the penalties for perjury of
his/her compliance with this covenant. 
 24.    Survival. Except as set forth below, the covenants in
Sections 4, 5, 6 and 23 shall survive the termination of Employee’s employment with a Financial Institution regardless of the reason for termination. If the Merger is not consummated and the Merger Agreement is terminated, Sections 4,
5, 6 and 23 shall survive with respect to First Financial and the Bank, but shall not survive with respect to HopFed or Heritage. 

[Signature Page to Follow] 

  
 9 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of
the date indicated below. 
  

							
	FIRST FINANCIAL CORPORATION	  		  	
				
	By:	  	 /s/ Norman L. Lowery
	  		  	Date: January 7, 2019
	Printed Name:	  	 Norman L. Lowery
	  		  	
	Title:	  	 President & CEO
	  		  	
			
	FIRST FINANCIAL BANK, N.A.	  		  	
				
	By:	  	 /s/ Norman L. Lowery
	  		  	Date: January 7, 2019
	Printed Name:	  	 Norman L. Lowery
	  		  	
	Title:	  	 President & CEO
	  		  	
			
	HOPFED BANCORP, INC.	  		  	
				
	By:	  	 /s/ John E. Peck
	  		  	Date: January 7, 2019
	Printed Name:	  	 John E. Peck
	  		  	
	Title:	  	 President/CEO
	  		  	
			
	HERITAGE BANK USA, INC.	  		  	
				
	By:	  	 /s/ John E. Peck
	  		  	Date: January 7, 2019
	Printed Name:	  	 John E. Peck
	  		  	
	Title:	  	 President/CEO
	  		  	
			
	EMPLOYEE	  		  	
				
	Printed Name:	  	 John E. Peck
	  		  	Date: January 7, 2019
	Signature:	  	 /s/ John E. Peck
	  		  	

  
 10

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