Document:

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Exhibit 10.2 Employment Agreement for Norman L. Lowery

                              EMPLOYMENT AGREEMENT

        THIS EMPLOYMENT AGREEMENT (the "Agreement"), entered into and effective
as of the 1st day of January, 2002 (the "Effective Date"), by and between Terre
Haute First National Bank (the "Bank") and Norman L. Lowery (the "Employee").

        WHEREAS, the Employee has heretofore been employed by the Bank as its
President and Chief Executive Officer and has performed valuable services for
the Bank; and

        WHEREAS, the Board of Directors of the Bank (the "Board") believes it is
in the best interest of the Bank to enter into this Agreement with the Employee
in order to assure continuity of management of the Bank to reinforce and
encourage the continued attention and dedication of the Employee to his assigned
duties; and

        WHEREAS, the parties desire by this writing to set forth the continuing
employment relationship between the Bank and the Employee.

        NOW, THEREFORE, in consideration of the premises contained herein and
for other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Employee and the Bank agree as follows:

        1. Employment. The Employee is employed as the President and Chief
Executive Officer of the Bank. The Employee shall render such administrative and
management services for the Bank as are currently rendered and as are currently
performed by persons situated in a similar executive capacity. The Employee
shall also promote, by entertainment or otherwise, as and to the extent
permitted by law, the business of the Bank. The Employee's other duties shall be
such as the Board may, from time to time, reasonably direct, including normal
duties as an officer of the Bank. During the term of this Agreement, the
Employee shall be nominated and elected to serve as a Director of the Bank or of
any successor to the Bank.

        2. Base Compensation. The Bank agrees to pay the Employee during the
term of this Agreement a base salary at the rate of $371,800 per annum, payable
in cash not less frequently than monthly. Such base salary shall be effective
and calculated commencing as of the Effective Date. The Bank may consider and
declare from time to time increases in the base salary it pays the Employee.
Prior to a Change in Control (as hereinafter defined), the Bank may also declare
decreases in the base salary it pays the Employee if the operating results of
the Bank are significantly less favorable than those for the fiscal year ending
December 31, 2001, and the Bank makes similar decreases in the base salary it
pays to other executive officers of the Bank. After a Change in Control, the
Bank shall consider and declare salary increases in base salary based upon the
following standards:

        Inflation;

        Adjustments to the base salaries of other senior management personnel;

        Past performance of the Employee; and

        The contribution which the Employee makes to the business and profits of
the Bank during the term of this Agreement.

        3. Bonuses. The Employee shall participate in any year end bonus granted
to other employees by the Board. The Employee shall further participate in an
equitable manner with all other senior management employees of the Bank in any
discretionary bonuses that the Board may award from time to time to the Bank's
senior management employees. No other compensation provided for in this
Agreement shall be deemed a substitute for the Employee's right to participate
in such discretionary bonuses.

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        4.     Benefits.

               (a) Participation in Retirement, Medical and Other Benefit Plans.
        During the term of this Agreement, the Employee shall be eligible to
        participate in the following benefit plans; group hospitalization,
        disability, health, dental, sick leave, retirement, supplemental
        retirement, pension, 401(k), employee stock ownership plan, and all
        other present or future qualified and/or nonqualified plans provided by
        the Bank generally, or to executive officers of the Bank, which
        benefits, taken as a whole, must be at least as favorable as those in
        effect on the Effective Date, unless the continued operation of such
        plans or changes in the accounting, legal or tax treatment of such plans
        would adversely affect the Bank's operating results or financial
        condition in a material way, and the Board concludes that modifications
        to such plans are necessary to avoid such adverse effects and such
        modifications apply consistently to all employees of the Bank
        participating in the affected plans. In addition, the Employee shall be
        eligible to participate in any fringe benefits which are or may become
        available to the Bank's senior management employees, including, for
        example, any stock option or incentive compensation (including, but not
        limited to the First Financial Corporation 2001 Long-Term Incentive Plan
        ("LTIP")) or performance-based plans, any insurance programs (including,
        but not limited to, any group and executive life insurance programs),
        and any other benefits which are commensurate with the responsibilities
        and functions to be performed by the Employee under this Agreement. All
        the employee benefits referenced in this Section 4(a) are collectively
        referred to hereinafter as "Employee Benefits."

               (b) Benefits After Retirement. Upon retirement of the Employee
        during the term of this Agreement, the Bank agrees to continue, at no
        greater cost to Employee than is generally allocated to all employees,
        full coverage for the Employee, his spouse and his children living in
        his household under the health, life and disability plans as adopted by
        the Bank which shall be no less favorable than those in effect on the
        Effective Date of this Agreement. The Bank agrees to continue such
        health coverage until both the Employee and his spouse are eligible for
        coverage by Medicare. When both the Employee and his spouse become
        eligible for Medicare coverage, the Bank agrees to pay for supplemental
        coverage for both the Employee and his spouse until the death of the
        Employee and his spouse. The Employee shall be entitled to a life
        insurance policy on his life in the maximum amount established by the
        group life insurance plan from time to time which amount shall be no
        less than the limit on the Effective Date of three times his annual
        salary (subject to a $350,000 maximum), provided at the Bank's cost. The
        Employee shall also be entitled to a life insurance policy on his life
        in the amount established by the Bank's insurance program for executive
        officers from time to time. The Bank shall continue to pay to the
        Employee the annual premiums, which are required to keep the life
        insurance policy in force, on behalf of the Employee pursuant to the
        Bank's insurance program for executive officers.

               (c) Expenses and Membership. The Employee shall be reimbursed for
        all reasonable out-of-pocket business expenses which he shall incur in
        connection with his services under this Agreement, upon substantiation
        of such expenses in accordance with the policies of the Bank. In
        addition, the Employee shall be reimbursed for all reasonable
        out-of-pocket expenses incurred by him to satisfy his continuing legal
        education requirements for his license to practice law in the State of
        Indiana. So long as the Employee is employed by the Bank pursuant to
        this Agreement, the Employee shall be entitled to continue his
        memberships in the American, Indiana and Terre Haute Bar Associations,
        the American and Indiana Trial Lawyers Associations and the Country Club
        of Terre Haute, and Bank shall continue to pay or reimburse the Employee
        for the dues and assessments for such memberships.

               (d) Automobile. So long as the Employee is employed by the Bank
        pursuant to this Agreement, the Employee shall be entitled to continue
        to use a Bank-owned automobile of commensurate quality and value as that
        presently used by him on the same terms and conditions in effect with
        respect to such use on the Effective Date of this Agreement. The Bank
        shall provide and pay the premiums for full insurance coverage on the
        automobile. Such insurance coverage shall be no less than the coverage
        provided on the Effective Date of this Agreement. The Bank shall also
        pay for the cost of maintenance and repair of the automobile. All
        benefits referenced in this Section 4(d) are collectively referred to
        hereinafter as "Automobile Benefits."

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               (e) Vacation, Sick Leave and Disability. The Employee shall be
        entitled to thirty (30) days vacation annually and shall be entitled to
        the same sick leave and disability leave as other employees of the Bank.

               The Employee shall not receive any additional compensation from
        the Bank on account of his failure to take a vacation or sick leave, and
        the Employee shall not accumulate unused vacation or sick leave from one
        fiscal year to the next, except in either case to the extent authorized
        by the Board or permitted for other employees of the Bank.

               In addition to the aforesaid paid vacations, the Employee shall
        be entitled, without loss of pay, to absent himself voluntarily from the
        performance of his employment with the Bank for such additional periods
        of time and for such valid and legitimate reasons as the Board may in
        its discretion determine and to attend the continuing legal education
        seminars contemplated by Section 4(c) hereof. Further, the Board may
        grant to the Employee a leave or leaves of absence, with or without pay,
        at such time or times and upon such terms and conditions as such Board
        in its discretion may determine.
               (f) Other Policies. All other matters relating to the employment
        of the Employee by the Bank not specifically addressed in this Agreement
        shall be subject to the general policies regarding employees of the Bank
        as in effect from time to time.

        5.     Term of Employment. The Bank hereby employs the Employee, and the
Employee hereby accepts such employment under the terms of this Agreement, for
the period commencing on the Effective Date and ending sixty months thereafter
(or such earlier date as is determined in accordance with Section 8).
Additionally, on each annual anniversary date from the Effective Date, the
Employee's term of employment shall be extended for an additional one-year
period beyond the then effective expiration date, provided the Board determines
in a duly adopted resolution that this Agreement shall be extended. Only those
members of the Board who have no personal interest in this Agreement shall
discuss and vote on the approval, subsequent review and extension of this
Agreement. The initial term of this Agreement and all extensions thereof are
hereinafter referred to individually and collectively as the "Term."

        6.     Covenants.

               (a)    Loyalty.

                      (i) During the period of his employment hereunder and
               except for illnesses, reasonable vacation periods, and reasonable
               leaves of absence, the Employee shall devote all of his full
               business time, attention, skill and efforts to the faithful
               performance of his duties hereunder; provided, however, from time
               to time, the Employee may serve on the Boards of Directors of,
               and hold any other offices or positions in, companies or
               organizations, and may perform legal services either directly or
               as a result of an of counsel or analogous position with a law
               firm for clients which will not present any conflict of interest
               with the Bank or any of its subsidiaries or affiliates, or
               unfavorably affect the performance of Employee's duties pursuant
               to this Agreement, or will not violate any applicable statute or
               regulation. "Full business time" is hereby defined as that amount
               of time usually devoted to like companies by similarly situated
               executive officers. During the term of his employment under this
               Agreement, the Employee shall not engage in any business or
               activity contrary to the business affairs or interests of the
               Bank, or be gainfully employed in any other position or job other
               than as provided above.

                      (ii) Nothing contained in this Section 6 shall be deemed
               to prevent or limit the Employee's right to invest in the capital
               stock or other securities of any business dissimilar from that of
               the Bank, or, solely as a passive or minority investor, in any
               business.

               (b) Nonsolicitation. The Employee hereby understands and
        acknowledges that, by virtue of his position with the Bank, he will have
        advantageous familiarity and personal contacts with the Bank's
        customers, wherever located, and the business, operations and affairs of
        the Bank. Accordingly, while the Employee is employed by the Bank, and
        at all locations for a period of one (1) year after

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        termination of the Employee's employment with the Bank for any reason
        (whether with or without cause or whether by the Bank or the Employee)
        or the expiration of the Term, the Employee shall not, directly or
        indirectly, or individually or jointly, (i) solicit in any manner, seek
        to obtain or service the business of any party which is a customer of
        the Bank at the time of such termination or any party which was a
        customer of the Bank during the one (1) year period immediately
        preceding such termination, (ii) request or advise any customers or
        suppliers of the Bank to terminate, reduce, limit or change their
        business or relationship with the Bank, or (iii) induce, request or
        attempt to influence any employee of the Bank to terminate his
        employment with the Bank.

               For purposes of this Agreement, the term "solicit" means any
        direct or indirect communication of any kind whatsoever, regardless of
        by whom initiated, which encourages or requests any person or entity, in
        any manner, to cease doing business with the Bank.

               (c) Noncompetition. During the period of his employment
        hereunder, and for a period of two (2) years following the termination
        hereof, the Employee shall not, directly or indirectly:

               (i)    as owner, officer, director, stockholder, investor,
                      proprietor, organizer or otherwise, engage in the same
                      trade or business as the Bank, as conducted on the date
                      hereof, which would conflict with the interests of the
                      Bank or in a trade or business competitive with that of
                      the Bank, which would conflict with the interests of the
                      Bank, as conducted on the date hereof; or

               (ii)   offer or provide employment (whether such employment is
                      with the Employee or any other business or enterprise),
                      either on a full-time or part-time or consulting basis, to
                      any person who then currently is, or who within one (1)
                      year prior to such offer or provision of employment has
                      been, a management-level employee of the Bank. This
                      subsection 6(c)(ii) shall only apply in the event the
                      Employee voluntarily terminates his employment with the
                      Bank.

               The restrictions contained in this paragraph upon the activities
        of the Employee following termination of employment shall be limited to
        the following geographic areas (hereinafter referred to as "Restricted
        Geographical Area"):

               (1)    Terre Haute, Indiana; and

               (2)    The thirty mile radius of Terre Haute, Indiana.

               Nothing contained in this Section 6(c) shall prevent the Employee
        from engaging in the practice of law within the Restricted Geographical
        Area. In addition, nothing contained in this Section 6(c) shall prevent
        or limit the Employee's right to invest in the capital stock or other
        securities of any business dissimilar from that of the Bank, or, solely
        as a passive or minority investor, in any business.

               If the Employee does not comply with the provisions of this
        Section 6, the two (2) year period of non-competition provided herein
        shall be tolled and deemed not to run during any period(s) of
        noncompliance, the intention of the parties being to provide two (2)
        full years of non-competition by the Employee after the termination or
        expiration of this Agreement.

               (d) Nondisclosure. The term "Confidential Information" as used
        herein shall mean any and all customer lists, computer hardware,
        software and related material, trade secrets (as defined in I.C.
        24-2-3-2), know-how, skills, knowledge, ideas, knowledge of customer's
        commercial requirements, pricing methods, sales and marketing
        techniques, dealer relationships and agreements, financial information,
        intellectual property, codes, research, development, research and
        development programs, processes, documentation, or devices used in or
        pertaining to the Bank's business (i) which relate in any way to the
        Bank's business, products or processes; or (ii) which are discovered,
        conceived, developed or reduced to

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        practice by the Employee, either alone or with others either during the
        Term, at the Bank's expense, or on the Bank's premises.

                      (i) During the course of his services hereunder the
               Employee may become knowledgeable about, or become in possession
               of, Confidential Information. If such Confidential Information
               were to be divulged or become known to any competitor of the Bank
               or to any other person outside the employ of the Bank, or if the
               Employee were to consent to be employed by any competitor of the
               Bank or to engage in competition with the Bank, the Bank would be
               irreparably harmed. In addition, the Employee has or may develop
               relationships with the Bank's customers which could be used to
               solicit the business of such customers away from the Bank. The
               Bank and the Employee have entered into this Agreement to guard
               against such potential harm.

                      (ii) The Employee shall not, directly or indirectly, use
               any Confidential Information for any purpose other than the
               benefit of the Bank or communicate, deliver, exhibit or provide
               any Confidential Information to any person, firm, partnership,
               corporation, organization or entity, except as required in the
               normal course of the Employee's service as a consultant or as an
               employee of the Bank. The covenant contained in this Section 6(d)
               shall be binding upon the Employee during the Term and following
               the termination hereof until either (i) such Confidential
               Information becomes obsolete; or (ii) such Confidential
               Information becomes generally known in the Bank's trade or
               industry by means other than a breach of this covenant.

                      (iii) The Employee agrees that all Confidential
               Information and all records, documents and materials relating to
               such Confidential Information, shall be and remain the sole and
               exclusive property of the Bank.

               (e) Remedies. The Employee agrees that the Bank will suffer
        irreparable damage and injury and will not have an adequate remedy at
        law in the event of any breach by the Employee of any provision of this
        Section 6. Accordingly, in the event the Bank seeks, under law or in
        equity, a temporary restraining order, permanent injunction or a decree
        of specific performance of the provisions of this Section 6, no bond or
        other security shall be required. The Bank shall be entitled to recover
        from the Employee, reasonable attorneys' fees and expenses incurred in
        any action wherein the Bank successfully enforces the provisions of this
        Section 6 against the breach or threatened breach of those provisions by
        the Employee.

                      (i) The Employee and the Bank acknowledge and agree that
               in the event of termination of this Agreement for any reason
               whatsoever, the Employee can obtain other engagements or
               employment of a kind and nature similar to that contemplated
               herein outside the Restricted Geographical Area and that the
               issuance of an injunction to enforce the provisions of this
               Section 6 will not prevent him from earning a livelihood.

                      (ii) The covenants on the part of the Employee contained
               in this Section 6 are essential terms and conditions to the Bank
               entering into this Agreement, and shall be construed as
               independent of any other provision in this Agreement.

               (f) Surrender of Records. Upon termination of the Employee's
        employment for any reason, the Employee shall immediately surrender to
        the Bank any and all computer hardware, software and related materials,
        records, notes, documents, forms, manuals, photographs, instructions,
        lists, drawings, blueprints, programs, diagrams or other written or
        printed material (including any and all copies made at any time
        whatsoever) in his possession or control which pertain to the business
        of the Bank or its affiliates including any Confidential Information in
        the Employee's personal notes, address books, calendars, rolodexes,
        personal data assistants, etc.

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        7.     Standards. The Employee shall perform his duties under this
Agreement in accordance with such reasonable standards as the Board may
establish from time to time. The Bank will provide the Employee with the working
facilities and staff commensurate with his position or positions and necessary
or advisable for him to perform his duties.

        8.     Termination and Termination Pay.  Subject to Section 10 hereof,
the Employee's employment hereunder may be terminated under the following
circumstances:

               (a) Death. The Employee's employment shall terminate upon his
        death during the Term of this Agreement, in which event the Employee's
        estate or designated beneficiaries shall be entitled to receive the base
        salary, bonuses, vested rights, and Employee Benefits due the Employee
        through the last day of the calendar month in which his death occurred.
        Any benefits payable under insurance, health, retirement, bonus,
        incentive (including, but not limited to, the LTIP), performance or
        other plans as a result of the Employee's participation in such plans
        through such date shall be paid when due under those plans.

               (b)    Disability.

                      (i) The Bank may terminate the Employee's employment, as a
               result of the Employee's Disability, in a manner consistent with
               the Bank's and the Employee's rights and obligations under the
               Americans with Disabilities Act or other applicable state and
               federal laws concerning disability. For the purpose of this
               Agreement, "Disability" means a physical or mental condition
               which substantially limits the Employee's ability to perform the
               essential functions of his position and which results in the
               Employee becoming eligible for long-term disability benefits
               under the Bank's long-term disability plan.

                      (ii) During any period that the Employee shall receive
               disability benefits and to the extent that the Employee shall be
               physically and mentally able to do so, he shall furnish such
               information, assistance and documents so as to assist in the
               continued ongoing business of the Bank.

                      (iii) In the event of Employee's termination of employment
               by the Bank due to Disability, the Employee shall be entitled to
               receive the base salary, bonuses, vested rights, and Employee
               Benefits due the Employee through his date of termination. Any
               benefits payable under insurance, health, retirement, bonus,
               incentive (including, but not limited to, the LTIP), performance
               or other plans as a result of Employee's participation in such
               plans through such date of termination shall be paid when due
               under those plans.

               (c) Just Cause. The Board may, by written notice to the Employee,
        immediately terminate his employment at any time, for Just Cause. The
        Employee shall have no right to receive any base salary, bonuses or
        other Employee Benefits, except as provided by law, whatsoever for any
        period after his termination for Just Cause. However, the vested rights
        of the Employee as of his date of termination shall not be affected.
        Termination for "Just Cause" shall mean termination because of:

                  An intentional act of fraud, embezzlement, theft, or personal
                  dishonesty; willful misconduct, or breach of fiduciary duty
                  involving personal profit by the Employee in the course of his
                  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 Bank;

                  (ii) Intentional wrongful damage by the Employee to the
                  business or property of the Bank, causing material harm to the
                  Bank;

                  (iii) Breach by the Employee of any confidentiality or
                  non-disclosure agreement in effect from time to time with the
                  Bank;

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                  (iv) Gross negligence or insubordination by the Employee in
                  the performance of his duties;

                       (v) Removal or permanent prohibition of the Employee from
               participating in the conduct of Bank's affairs by an order issued
               under Section 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance
               Act, 12USC1818(e)(4) and (g)(1).

               Notwithstanding the foregoing, in the event of termination for
        Just Cause there shall be delivered to the Employee a copy of a
        resolution duly adopted by the affirmative vote of not less than a
        majority of the entire membership of the Board at a meeting of the Board
        called and held for that purpose (after reasonable notice to the
        Employee and an opportunity for the Employee, together with the
        Employee's counsel, to be heard before the Board), such meeting and the
        opportunity to be heard to be held prior to, or as soon as reasonably
        practicable following, termination, but in no event later than 60 days
        following such termination, finding that in the good faith opinion of
        the Board the Employee was guilty of conduct constituting Just Cause and
        specifying the particulars thereof in detail. If, following such
        meeting, the Employee is reinstated, he shall be entitled to receive the
        base salary, bonuses, all Employee Benefits, and all other fringe
        benefits provided for under this Agreement for the period following
        termination and continuing through reinstatement as though he was never
        terminated.

        (d)    Without Just Cause. The Board may, by written notice to the
Employee, immediately terminate his employment at any time for a reason other
than Just Cause, in which event the Employee shall be entitled to receive the
following compensation and benefits (unless such termination occurs within the
time period set forth in Section 10(a) hereof, in which event the benefits and
compensation provided for in Section 10 shall apply):

               (i)     the base salary provided pursuant to Section 2 hereof as
                       in effect on the date of termination, through the
                       Expiration Date of this Agreement as determined pursuant
                       to Section 5 hereof (including any renewal or extension
                       of this Agreement) (the "Expiration Date");

               (ii)    an amount equal to the bonuses received by or payable to
                       the Employee in the calendar year prior to the calendar
                       year in which the Employee is terminated, for each year
                       remaining through the Expiration Date; and

               (iii)   at the Employee's election, either:

                       (A) cash in an amount equal to the cost to the
               Employee of obtaining all Employee Benefits (as defined in
               Section 4(a)) and health insurance coverage for the Employee, his
               spouse and child living in the Employee's household and medicare
               supplement insurance, and life insurance (as described in Section
               4(b)), professional and club dues, the cost of Employee's
               continuing legal education requirements, all Automobile Benefits
               (as defined in Section 4(d)) and other benefits which the
               Employee would have been eligible to participate in or receive
               through the Expiration Date, based upon the benefit levels
               substantially equal to those that the Bank provided for the
               Employee at the date of termination of employment; or

                       (B) continued participation in such benefit plans and
               programs listed in subparagraph A above, which the Employee would
               have been eligible to participate in or receive through the
               Expiration Date, based upon benefit levels substantially equal to
               those that the Bank provided for the Employee at the date of
               termination, but only to the extent the Employee continues to
               qualify for participation therein. In elaboration of, but not in
               limitation of, the foregoing, the Employee shall be entitled to
               receive, in cash, an amount equal to the cost to the Employee of
               obtaining any benefits he would otherwise have been eligible to
               receive under the Bank's benefit plans or programs listed in
               subparagraph A above had he continued to accrue service (for
               vesting and benefit accrual purposes) and compensation under
               those plans through the Expiration Date, if he is not permitted
               to continue to participate in those plans through the Expiration
               Date. The Employee shall also be entitled to receive an amount
               necessary to provide any cash payments received under this
               Section 8(d)(iii)(B) due to his inability to continue
               participation in any of the benefit plans or programs under this
               Section 8(d)(iii)(B), net of all income and payroll taxes that

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               would not have been payable by the Employee had he been able to
               continue participation in the benefit plan or program instead of
               receiving cash in lieu thereof.

               Notwithstanding the foregoing, but only to the extent required
        under federal banking law, the amount payable under Subsection (d) of
        this Section 8 shall be reduced to the extent that on the date of the
        Employee's termination of employment, the present value of the benefits
        payable under Subsections (d)(i),(ii), and (iii) of this Section 8
        exceed any limitation on severance benefits that is imposed by the
        Office of the Comptroller of the Currency (the "OCC") on such benefits.

               All amounts payable to the Employee shall be paid, at the option
        of the Employee, either (1) in periodic payments through the Expiration
        Date, or (2) in one lump sum within ten (10) days of such termination.
        If Employee elects periodic payments and he dies prior to the Expiration
        Date, those payments will continue to be paid to his estate or
        designated beneficiaries, or their successors in interest, through the
        Expiration Date.

        (e)    Voluntary for Good Reason. The Employee may voluntarily terminate
his employment under this Agreement for Good Reason, and the Employee shall
thereupon be entitled to receive the same amount payable under Section 8(d)
hereof, within thirty (30) days following his date of termination. For purposes
of this Agreement, "Good Reason" means the occurrence of any of the following
events, which has not been consented to in advance by the Employee in writing
(unless such voluntary termination occurs within the time period set forth in
Section 10(b) hereof, in which event the benefits and compensation provided for
in Section 10 shall apply):

               (i)     the requirement that the Employee move his personal
        residence;

               (ii)    a reduction of 10% or more in the Employee's base salary,
        unless part of an institution-wide reduction and similar to the
        reduction in the base salary of all other executive officers of the
        Bank;

               (iii) the removal of the Employee from participation in any
        incentive compensation (including, but not limited to, the LTIP) or
        performance-based compensation plans or bonus plans unless the Bank
        terminates participation in the plan or plans with respect to all other
        executive officers of the Bank;

               (iv) the failure by the Bank to continue to provide the Employee
        with the base salary, bonuses or benefits provided for under Sections
        4(a), (c), (d) and (e) of this Agreement, as the same may be increased
        from time to time, or with benefits substantially similar to those
        provided to him under those Sections or under any benefit plan or
        program in which the Employee now or hereafter becomes eligible to
        participate, or the taking of any action by the Bank which would
        directly or indirectly reduce any such benefits or deprive the Employee
        of any such benefit enjoyed by him, unless part of an institution-wide
        reduction and applied similarly to all other executive officers of the
        Bank;

               (v) the assignment to the Employee of duties and responsibilities
        materially different from those normally associated with his position as
        referenced in Section 1;

               (vi) a failure to elect or re-elect the Employee to the Board or
        a failure on the part of First Financial Corporation to honor its
        obligation to nominate Employee to the Board of Directors of First
        Financial Corporation;

               (vii) a material diminution or reduction in the Employee's
        responsibilities or authority (including reporting responsibilities) in
        connection with his employment with the Bank; or

               (viii) a material reduction in the secretarial or administrative
        support of the Employee.

               Notwithstanding the foregoing, but only to the extent required
        under federal banking law, the amount payable under Subsection (e) of
        this Section 8 shall be reduced to the extent that on the date of the
        Employee's termination of employment, the present value of the benefits
        payable under Subsections (d)(i), (ii) and (iii) of this Section 8
        exceed any limitation on severance benefits that is imposed by the OCC
        on such benefits.

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        (f)    Voluntary Termination by Employee. Subject to Section 10 hereof,
the Employee may voluntarily terminate employment with the Bank during the term
of this Agreement, upon at least ninety (90) days' prior written notice to the
Board of Directors, in which case the Employee shall receive only his base
salary, bonuses, vested rights and benefits up to the date of his termination
(unless such termination occurs pursuant to Section 10(b) hereof, in which event
the benefits, bonuses and base salary provided for in Section 10(a) shall
apply).

        (g)    Termination or Suspension Under Federal Law.

               (i) If the Employee is removed and/or permanently prohibited from
        participating in the conduct of the Bank's affairs by an order issued
        under Sections 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act
        ("FDIA") (12 U.S.C. 1818(e)(4) and (g)(1)), all obligations of the Bank
        under this Agreement shall terminate, as of the effective date of the
        order, but vested rights of the Employee shall not be affected.

               (ii) If the Bank is in default (as defined in Section 3(x)(1) of
        the FDIA), all obligations under this Agreement shall terminate as of
        the date of default; but the vested rights of the Employee shall not be
        affected.

               (iii) All obligations under this Agreement shall terminate,
        except to the extent it is determined that the continuation of this
        Agreement is necessary for the continued operation of the Bank; (A) by
        the OCC or its designee, at the time that the Federal Deposit Insurance
        Corporation ("FDIC") enters into an agreement to provide assistance to
        or on behalf of the Bank under the authority contained in Section 13(c)
        of FDIA; or (B) by the OCC, or its designee, at the time that the OCC or
        its designee approves a supervisory merger to resolve problems related
        to operation of the Bank or when the Bank is determined by the OCC to be
        in an unsafe or unsound condition. Such action shall not affect any
        vested rights of the Employee.

               (iv) If a notice served under Section 8(e)(3) or (g)(1) or the
        FDIA (12 U.S.C. 1818(e)(3) or (g)(1)) suspends and/or temporarily
        prohibits the Employee from participating in the conduct of the Bank's
        affairs, the Bank's obligations under this Agreement shall be suspended
        as of the date of such service, unless stayed by appropriate
        proceedings. However, the vested rights of the Employee as of the date
        of suspension will not be affected. If the charges in the notice are
        dismissed, the Bank may in its discretion (A) pay the Employee all or
        part of the compensation withheld while its contract obligations were
        suspended, and (B) reinstate (in whole or in part) any of its
        obligations which were suspended.

        9.     No Mitigation.  The Employee shall not be required to mitigate
the amount of any payment provided for in this Agreement by seeking other
employment or otherwise and no such payment shall be offset or reduced by the
amount of any compensation or benefits provided to the Employee in any
subsequent employment.

        10.    Change in Control.

        (a)    Change in Control; Involuntary Termination.

               (1)     Notwithstanding any provision herein to the contrary, if
        the Employee's employment under this Agreement is terminated by the
        Bank, without the Employee's prior written consent and for a reason
        other than Just Cause, in connection with or within twelve (12) months
        after a Change in Control, as defined in Section 10(a)(4), the Employee
        shall be paid the greater of:

                       (i)    The total amount payable under Section 8(d)
                              hereof; or

                       (ii)   The product of 2.99 times the sum of his base
                              salary in effect as of the date of the Change in
                              Control plus an amount equal to the bonuses
                              received by or payable to the Employee in the
                              calendar year prior to the year in which the
                              Change in Control occurs; and at the Employee's
                              election, either:
<PAGE>

                                    (A)   cash in an amount equal to the cost to
                              the Employee of obtaining all Employee Benefits
                              (as defined in Section 4(a)), medicare
                              supplement insurance (as described in Section
                              4(b)), professional and club dues, the cost of
                              Employee's continuing legal education
                              requirements, all Automobile Benefits (as
                              defined in Section 4(d)) and other benefits
                              which the Employee would have been eligible to
                              participate in or receive, for a period of 3
                              years, commencing on the date of termination, or
                              based upon the benefit levels substantially
                              equal to those that the Bank provided for the
                              Employee at the date of termination of
                              employment; or

                                    (B)   continued participation in the Bank
                              benefit plans and programs listed in Section
                              10(a)(1)(ii)(A) above, but only to the extent the
                              Employee continues to qualify for participation
                              therein, for a period of 3 years, commencing on
                              the date of termination based upon benefit
                              levels substantially equal to those that the
                              Bank provided for the Employee at the date of
                              termination. In elaboration of, but not in
                              limitation of the foregoing, the Employee shall
                              be entitled to receive, in cash, an amount equal
                              to the cost to the Employee of obtaining any
                              benefits he would otherwise have been eligible
                              to receive under the Bank's benefit plans or
                              programs listed in Section 10(a)(1)(ii)(A) above
                              had he continued to accrue service (for vesting
                              and benefit accrual purposes) and compensation
                              under those plans for a period of three (3)
                              years, commencing on the date of termination, if
                              he is not permitted to continue to participate
                              in those plans for the three (3) year period.
                              The Employee shall also be entitled to receive
                              under this Section 10(a)(1)(ii)(B) an amount
                              necessary to provide any cash payments under
                              this Section 10(a)(1)(ii)(B) net of all income
                              and payroll taxes that would not have been
                              payable by the Employee had he been able to
                              continue participation in the benefit plan or
                              program instead of receiving cash in lieu
                              thereof.

        All amounts shall be paid in one lump sum within ten (10) days of such
termination, except to the extent that the Bank is required to permit Employee's
continued participation in the Bank benefit plans and programs through the
Expiration Date or the three (3) year period, as the case may be, as permitted
by their terms.

               (2)    To the extent payments received based on the Employee's
        termination within 12 months after a Change in Control are considered
        "excess parachute payments" pursuant to the Code Section 280G, the
        provisions of "Internal Revenue Code Section 280G Gross-Up" below shall
        apply.
               (3)    Internal Revenue Code Section 280G Gross-Up.

                      (i)     Additional Payment to Account for Excise Taxes.
               If, as a result of a Change in Control, the Employee becomes
               entitled to the amount payable under Section 10(a) of this
               Agreement, or under any other benefit, compensation, or incentive
               plan (including, but not limited to, the LTIP) or arrangement of
               or with the Bank or First Financial Corporation (collectively,
               the Total Benefits), and if any part of the Total Benefits is
               subject to the Excise Tax under Code Sections 280G and 4999 (the
               "Excise Tax"), the Bank or First Financial Corporation shall pay
               to the Employee the following additional amounts, consisting of
               (A) a payment equal to the Excise Tax payable by the Employee on
               the Total Benefits under Code Section 4999 (the "Excise Tax
               Payment"), and (B) a payment equal to the amount necessary to
               provide the Excise Tax Payment net of all income, payroll and
               excise taxes. Together, the additional amounts described in
               clauses (A) and (B) are referred to herein as the "Gross-Up
               Payments."

                      (ii)    Calculating the Excise Tax. Determination of
               whether any of the Total Benefits will be subject to the Excise
               Tax and the determination of the amount of the Excise Tax shall
               be made in accordance with the following:

<PAGE>

                             (A)    Determination of Parachute Payments Subject
                     to the Excise Tax. Any payments or benefits received or to
                     be received by the Employee in connection with a Change in
                     Control or the Employee's termination of employment
                     (whether under the terms of this Agreement or any benefit
                     plan or arrangement with First Financial Corporation, the
                     Bank, any person whose actions result in a Change in
                     Control or any person affiliated with First Financial
                     Corporation, the Bank or such person) shall be treated as
                     "parachute Payments" within the meaning of Code Section
                     280G(b)(2), and all "excess parachute payments" within the
                     meaning of Code Section 280G(b)(1) shall be treated as
                     subject to the Excise Tax, unless in the opinion of the
                     nationally recognized certified public accounting firm,
                     retained by the Bank or First Financial Corporation as of
                     the date immediately before the change in Control (the
                     "Accounting Firm"), such payments or benefits do not
                     constitute, in whole or in part, parachute payments, or
                     such excess parachute payments represent, in whole or in
                     part, reasonable compensation for services actually
                     rendered within the meaning of Code Section 280G(b)(4) or
                     are otherwise not subject to the Excise Tax.

                             (B)    Calculation of Benefits Subject to Excise
                     Tax. The amount of the Total Benefits that shall be treated
                     as subject to the Excise Tax shall be equal to the lesser
                     of (1) the total amount of the Total Benefits reduced by
                     the amount of such Total Benefits that in the opinion of
                     the Accounting Firm are not parachute payments, or (2) the
                     amount of excess parachute payments within the meaning of
                     Code Section 280G(b)(1) (after applying clause (A), above).

                             (C)    Value of Noncash Benefits and Deferred
                     Payment. The value of any noncash benefits or any deferred
                     payment or benefit shall be determined by the Accounting
                     Firm in accordance with the principles of Code Sections
                     280G(d)(3) and (4).

                     (iii)   Assumed Marginal Income Tax Rate. For purposes of
               determining the amount of the Gross-Up Payments, the Employee
               shall be deemed to pay federal income taxes at the highest
               marginal rate of federal income taxation in the calendar years in
               which the Gross-Up Payments are to be made and state and local
               income taxes at the highest marginal rate of taxation in the
               state and locality of the Employee's residence on the date on
               which such gross up payments are to be made, net of the reduction
               in federal income taxes that can be obtained from deduction of
               such state and local taxes (calculated by assuming that any
               reduction under Code Section 68 in the amount of itemized
               deductions allowable to the Employee applies first to reduce the
               amount of such state and local income taxes that would otherwise
               be deductible by the Employee, and applicable federal FICA and
               Medicare withholding taxes.)

                      (iv)   The Accounting Firm Shall Determine Whether a
               Gross-Up Payment is Required. Subject to paragraphs (i) through
               (iii) above, all determinations required to be made under
               paragraphs (i) through (viii), including whether and when a
               Gross-Up Payment is required, the amount of the Gross-Up Payment
               and the assumptions to be used to arrive at the determination
               (collectively, the "Determination"), shall be made by the
               Accounting Firm. The Accounting Firm shall provide detailed
               supporting calculations both to the Bank or First Financial
               Corporation and to the Employee within 15 business days after the
               Determination has been made, or such earlier time as is requested
               by the Bank, First Financial Corporation or the Employee.

                      (v)    Fees and Expenses of the Accounting Firm and
               Agreement with the Accounting Firm. All fees and expenses of the
               Accounting Firm shall be borne solely by the Bank or First
               Financial Corporation.

                      (vi)   Accounting Firm's Opinion. If the Accounting Firm
               determines that no Excise Tax is payable by the Employee, the
               Accounting Firm shall furnish the Employee with a written opinion
               to that effect, and to the effect that failure to report Excise
               Tax, if any, on the

<PAGE>
               Employee's applicable federal income tax return will not result
               in the imposition of a negligence or similar penalty.

                      (vii)  Accounting Firm's Determination is Binding.  The
               Determination by the Accounting Firm shall be binding on the
               Bank, First Financial Corporation and the Employee.

                      (viii) Underpayment and Overpayment. Because of the
               uncertainty in determining whether any of the Total Benefits will
               be subject to the Excise Tax at the time of the Determination, it
               is possible that Gross-Up Payments that should have been made
               will not have been made by the Bank or First Financial
               Corporation ("Underpayment"), or that Gross-Up Payments will be
               made that should not have been made by the Bank or First
               Financial Corporation ("Overpayment").

                      If, after a Determination by the Accounting Firm, the
               Employee is required to make a payment of additional Excise Tax,
               the Accounting Firm shall determine the amount of the
               Underpayment that has occurred. The Underpayment (together with
               any interest and penalties imposed by the Internal Revenue
               Service shall be paid promptly by the Bank or First Financial
               Corporation to or for the benefit of the Employee.

                      If the amount of the Gross-Up Payments exceeds the amount
               necessary to reimburse the Employee for his Excise Tax, the
               Accounting Firm shall determine the amount of the Overpayment
               that has been made. The Overpayment shall be repaid promptly by
               the Employee. Provided that his expenses are reimbursed by the
               Bank or First Financial Corporation, the Employee shall cooperate
               with any reasonable requests by the Bank or First Financial
               Corporation in any contests or disputes with the Internal Revenue
               Service relating to the Excise Tax.

                      (ix) Accounting Firm Conflict of Interest. If the
               Accounting Firm is serving as accountant or auditor for the
               individual, entity or group effecting the Change in Control, the
               Employee may appoint another nationally recognized certified
               public accounting firm to make the Determinations required
               hereunder (in which case the term "Accounting Firm" as used
               herein shall be deemed to refer to the accounting firm appointed
               by the Employee under this paragraph). The Bank or First
               Financial Corporation shall pay all fees and expenses of the
               Accounting Firm appointed by the Employee.

               (4)    "Change in Control" shall be deemed to have occurred if:
                      (i)    During any period of two consecutive years,
               individuals who constitute the Bank's or First Financial
               Corporation's Board of Directors at the beginning of the two-year
               period cease for any reason to constitute at least a majority
               thereof; provided, however, that - for purposes of this
               Subsection 10(4)(i) - each Director who, by a vote of at least
               two-thirds (2/3) of the Directors who were Directors at the
               beginning of the period, is first (i) nominated by the Bank's or
               First Financial Corporation's Board of Directors for election by
               stockholders, or (ii) elected to fill a vacancy on the respective
               Board of Directors, shall be deemed to have been a Director at
               the beginning of the two-year period.

                      (ii)   the Bank or First Financial Corporation transfers
               substantially all of its assets to another corporation which is
               not a wholly owned subsidiary of the Bank or First Financial
               Corporation;

                      (iii)  the Bank or First Financial Corporation sells
               substantially all of the assets of a subsidiary or affiliate
               which, at the time of such sale, is the principal employer of the
               Employee; or

                      (iv)   any "person" including a "group", who as of the
               Effective Date of this Agreement owns less than 20% of the
               combined voting power of the outstanding equity securities of the
               Bank or First Financial Corporation, is or becomes the
               "beneficial owner," directly or indirectly, of equity securities
               of the Bank or First Financial Corporation representing

<PAGE>

               20% or more of the combined voting power of the outstanding
               equity securities of the Bank or First Financial Corporation
               (with the terms in quotation marks having the meaning set forth
               in the federal securities laws); or

                      (v)    the Bank or First Financial Corporation is merged
               or consolidated with another corporation and, as a result of the
               merger or consolidation, less than fifty percent (50%) of the
               outstanding voting securities of the surviving or resulting
               corporation is owned in the aggregate by the former stockholders
               of the Bank or First Financial Corporation.

        Notwithstanding the foregoing, but only to the extent required under
federal banking law, the amount payable under Subsection(a) of this Section 10
shall be reduced to the extent that on the date of the Employee's termination of
employment, the amount payable under Subsection(a) of this Section 10 exceeds
any limitation on severance benefits that is imposed by the OCC.

        (b)    Change in Control; Voluntary Termination. Notwithstanding any
other provision of this Agreement to the contrary, the Employee may voluntarily
terminate his employment under this Agreement within twelve (12) months
following a Change in Control of the Bank or First Financial Corporation, as
defined in paragraph (a)(4) of this Section 10, and the Employee shall thereupon
be entitled to receive the payment described in Sections 10(a)(1), (2) and (3)
of this Agreement, within thirty (30) days following the occurrence of any of
the following events, which has not been consented to in advance by the Employee
in writing. However, during such thirty (30) day period, the Bank shall not
allow the Employee's participation in any Employee Benefits to lapse and shall
continue to provide the Employee with the Automobile Benefits described in
Section 4(d), reimbursement or payment of professional and club dues, and the
cost of the Employee's continuing legal education requirements.

               (i)     the requirement that the Employee perform his principal
        executive functions more than thirty (30) miles from his Terre Haute,
        Indiana office.

               (ii)    a reduction of 10% or more in the Employee's base salary
        as in effect on the date of the Change in Control or as the same may be
        changed by mutual agreement from time to time, unless part of an
        institution-wide reduction and similar to the reduction in the base
        salary of all other executive officers of the Bank;

               (iii)   the removal of the Employee from participation in any
        incentive (including, but not limited to, the LTIP) or performance-based
        compensation plans or bonus plans unless the Bank terminates
        participation in the plan or plans with respect to all other executive
        officers of the Bank;

               (iv)    the failure by the Bank to continue to provide the
        Employee with the base salary, bonuses or benefits provided for under
        Sections 4(a), (c), (d) and (e) of this Agreement, as the same may be
        increased from time to time, or with benefits substantially similar to
        those provided to him under those Sections or under any benefit plan or
        program in which the Employee now or hereafter becomes eligible to
        participate, or the taking of any action by the Bank which would
        directly or indirectly reduce any such benefits or deprive the Employee
        of any such benefit enjoyed by him, unless part of an institution-wide
        reduction and applied similarly to all other executive officers of the
        Bank;

               (v)     the assignment to the Employee of duties and
        responsibilities materially different from those normally associated
        with his position as referenced in Section 1;

               (vi)    a failure to elect or re-elect the Employee to the Board
        or a failure on the part of First Financial Corporation or its successor
        to honor any obligation to nominate Employee to the Board of Directors
        of First Financial Corporation or its successor;

               (vii)   a material diminution or reduction in the Employee's
        responsibilities or authority (including reporting responsibilities) in
        connection with his employment with the Bank; or

               (viii)  a material reduction in the secretarial or administrative
        support of the Employee.

<PAGE>

        (c)    Compliance with 12 U.S.C. Section 1828(k). Any payments made to
               the Employee pursuant to this Agreement, or otherwise, are
               subject to and conditioned upon their compliance with 12 U.S.C.
               Section 1828(k) and any regulations promulgated thereunder.

        (d)    Trust.

               (1)     Within five business days before or after a Change in
        Control as defined in Section 10(a)(4) of this Agreement which was not
        approved in advance by a resolution of a majority of the Directors of
        the Bank, the Bank shall (i) deposit, or cause to be deposited, in a
        grantor trust (the "Trust"), designed to conform with Revenue Procedure
        93-64 (or any successor) and having a trustee independent of the Bank,
        an amount equal to the amounts which would be payable in a lump sum
        under Sections 10(a)(1), (2) and (3) hereof if those payment provisions
        become applicable, and (ii) provide the trustee of the Trust with a
        written direction to hold said amount and any investment return thereon
        in a segregated account for the benefit of the Employee, and to follow
        the procedures set forth in the next paragraph as to the payment of such
        amounts from the Trust.

               (2)     During the twelve (12) consecutive month period following
        the date on which the Bank makes the deposit referred to in the
        preceding paragraph, the Employee may provide the trustee of the Trust
        with a written notice requesting that the trustee pay to the Employee,
        in a single sum, the amount designated in the notice as being payable
        pursuant to Sections 10(a)(1), (2) and (3). Within three business days
        after receiving said notice, the trustee of the Trust shall send a copy
        of the notice to the Bank via overnight and registered mail, return
        receipt requested. On the tenth (10th) business day after mailing said
        notice to the Bank, the trustee of the Trust shall pay the Employee the
        amount designated therein in immediately available funds, unless prior
        thereto the Bank provides the trustee with a written notice directing
        the trustee to withhold such payment. In the latter event, the trustee
        shall submit the dispute, within ten (10) days of receipt of the notice
        from the Bank, to non-appealable binding arbitration for a determination
        of the amount payable to the Employee pursuant to Sections 10(a)(1), (2)
        and (3) hereof, and the party responsible for the payment of the costs
        of such arbitration (which may include any reasonable legal fees and
        expenses incurred by the Employee) shall be determined by the
        arbitrator. The trustee shall choose the arbitrator to settle the
        dispute, and such arbitrator shall be bound by the rules of the American
        Arbitration Association in making his or her determination. The
        Employee, the Bank and the trustee shall be bound by the results of the
        arbitration and, within three (3) days of the determination by the
        arbitrator, the trustee shall pay from the Trust the amounts required to
        be paid to the Employee and/or the Bank, and in no event shall the
        trustee be liable to either party for making the payments as determined
        by the arbitrator.

               (3)     Upon the earlier of (i) any payment from the Trust to the
        Employee, or (ii) the date twelve (12) months after the date on which
        the Bank makes the deposit referred to in the first paragraph of this
        subsection (d)(1), the trustee of the Trust shall pay to the Bank the
        entire balance remaining in the segregated account maintained for the
        benefit of the Employee. The Employee shall thereafter have no further
        interest in the Trust pursuant to this Agreement. However, the
        termination of the Trust shall not operate as a forfeiture or
        relinquishment of any of the Employee's rights under the terms of this
        Agreement. Furthermore, in the event of a dispute under Section 10(d)(2)
        above, the trustee of the Trust shall continue to hold, in trust, the
        deposit referred to in Section 10(b)(1) until a final decision is
        rendered by the arbitrator pursuant to Section 10(b)(2) above.

        (e)    In the event that any dispute arises between the Employee and the
Bank as to the terms or interpretation of this Agreement or the obligations
thereunder, including this Section 10, whether instituted by formal legal
proceedings or submitted to arbitration pursuant to Section 10(d)(2), including
any action that the Employee takes to enforce the terms of this Section 10 or to
defend against any action taken by the Bank, the Employee shall be reimbursed
for all costs and expenses, including reasonable attorneys' fees, arising from
such dispute, proceedings or actions, provided that the Employee shall obtain a
final judgment by a court of competent jurisdiction in favor of the Employee or,
in the event of arbitration pursuant to Section 10(d)(2), a determination is
made by the arbitrator that the expenses should be paid by the Bank. Such
reimbursement shall be paid within ten (10) days of Employee's furnishing to the
Bank written evidence, which may be in the form, among other things, of a
canceled check or receipt, of any costs or expenses incurred by the Employee.

<PAGE>

        Should the Employee fail to obtain a final judgment in favor of the
Employee and a final judgment or arbitration decision is entered in favor of the
Bank and if decided by arbitration, the arbitrator, pursuant to Section
10(d)(2), determines the Employee to be responsible for the Bank's expenses,
then the Bank shall be reimbursed for all costs and expenses, including
reasonable attorneys' fees arising from such dispute, proceedings or actions.
Such reimbursement shall be paid within ten (10) days of the Bank furnishing to
the Employee written evidence, which may be in the form, among other things, of
a canceled check or receipt, of any costs or expenses incurred by the Bank.

        11.    Stock Options. First Financial Corporation will permit the
Employee or his personal representative(s) or heirs, during a period of three
months following Employee's termination of employment by the Bank for the
reasons set forth in Subsections 8(d), 8(e), 10(a) or 10(b), to require First
Financial Corporation, upon written request, to purchase all outstanding,
unexpired stock options previously granted to the Employee under any stock
option plan then in effect to the extent the options are vested at a cash
purchase price equal to the amount by which the aggregate "fair market value" of
the shares subject to such options exceeds the aggregate option price for such
shares. For purposes of this Agreement, the term "fair market value" shall mean
the higher of (a) the average of the highest asked prices for shares in the
over-the-counter market as reported on the NASDAQ system or other exchange if
the shares are traded on such system for the 30 business days preceding such
termination, or (b) the average per share price actually paid for the most
highly priced 1% of the shares acquired in connection with the Change of Control
by any person or group acquiring such control.

        12.    Federal Income Tax Withholding.  The Bank may withhold all
federal and state income or other taxes from any benefit payable under this
Agreement as shall be required pursuant to any law or governmental regulation or
ruling.

        13.    Successors and Assigns.

               (a)     Bank. This Agreement shall not be assignable by the Bank,
        provided that this Agreement shall inure to the benefit of and be
        binding upon any corporate or other successor of the Bank which shall
        acquire, directly or indirectly, by merger, consolidation, purchase or
        otherwise, all or substantially all of the assets or stock of the Bank.

               (b)     Employee. Since the Bank is contracting for the unique
        and personal skills of the Employee, the Employee shall be precluded
        from assigning or delegating his rights or duties hereunder without
        first obtaining the written consent of the Bank; provided, however, that
        nothing in this paragraph shall preclude (i) the Employee from
        designating a beneficiary to receive any benefit payable hereunder upon
        his death, or (ii) the executors, administrators, or other legal
        representatives of the Employee or his estate from assigning any rights
        hereunder to the person or persons entitled thereunto.

               (c)     Attachment. Except as required by law, no right to
        receive payments under this Agreement shall be subject to anticipation,
        commutation, alienation, sale, assignment, encumbrance, charge, pledge,
        or hypothecation or to exclusion, attachment, levy or similar process or
        assignment by operation of law, and any attempt, voluntary or
        involuntary, to effect any such action shall be null, void and of no
        effect.

        14.    Amendments.  No amendments or additions to this Agreement shall
be binding unless made in writing and signed by the Bank, First Financial
Corporation and the Employee, except as herein otherwise specifically provided.

        15.    Applicable Law. Except to the extent preempted by federal law,
the laws of the State of Indiana, without regard to that State's choice of law
principles, shall govern this Agreement in all respects, whether as to its
validity, construction, capacity, performance or otherwise.

        16.    Severability.  The provisions of this Agreement shall be deemed
severable and the invalidity or unenforceability of any provision shall not
affect the validity or enforceability of the other provisions hereof.

<PAGE>

        17.    Entire Agreement.  This Agreement, together with any
understanding or modifications thereof as agreed to in writing by the parties,
shall constitute the entire Agreement between the parties hereto.

        18.    Construction.  The rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of this Agreement.

        19.    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.

        20.    Notices. For purposes of this Agreement, notices and all other
communications provided for herein shall be in writing and shall be deemed to
have been given (a) if hand delivered, upon delivery to the party, or (b) if
mailed, two (2) days following deposit of the notice or communication with the
United States Postal Service by registered or certified mail, return receipt
requested, postage prepaid, addressed as follows:

               If to the Employee:  Norman L. Lowery
                                    93 Allendale
                                    Terre Haute, Indiana 47802

               If to the Bank:      Terre Haute First National Bank
                                    Attn: Michael A. Carty
                                    One First Financial Plaza
                                    P.O. Box 540
                                    Terre Haute, Indiana 47808-0540

or to such other address as either party hereto may have furnished to the other
party in writing in accordance herewith, except that notices of change of
address shall be effective only upon receipt.

<PAGE>

        IN WITNESS WHEREOF, the parties have executed this Agreement on this
10th day of July, 2002.

                                    TERRE HAUTE FIRST NATIONAL BANK

                                    SIGNATURE
                                    Michael A. Carty, Secretary/Treasurer
ATTEST
Signature
Thomas G. Woodason
Title: Controller

                                    EMPLOYEE

                                    Signature
                                    Norman L. Lowery

        The undersigned, First Financial Corporation, sole shareholder of the
Bank, agrees that if it shall be determined for any reason that any obligation
on the part of the Bank is unenforceable for any reason, First Financial
Corporation agrees to honor the terms of this Agreement and continue to make any
such payments due hereunder to Employee or to satisfy any such obligation
pursuant to the terms of this Agreement. The undersigned further agrees to
nominate Employee to the Board of Directors of First Financial Corporation
during the term of this Agreement.

                                    FIRST FINANCIAL CORPORATION

                                    Signature
                                    Donald E. Smith, President

ATTEST
Signature Michael A. Carty
Title: Secretary /Treasurer<PAGE>

Exhibit 10.3 2001 Long-Term Incentive Plan of the Corporation

                           FIRST FINANCIAL CORPORATION
                          2001 LONG-TERM INCENTIVE PLAN

1.      PURPOSE OF THE PLAN.

        The purpose of this Plan is to promote the best interests of First
Financial Corporation and its Subsidiaries, and to enhance stockholder value of
First Financial Corporation 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 First Financial Corporation 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.

2.      DEFINITIONS.

        Wherever the initial letter of the following words or phrases is
capitalized in the Plan, including any Exhibits or Supplements, they will have
the respective meaning set forth below unless otherwise defined herein:

        (a)    "ACCOUNT" shall mean the account established and administered for
the benefit of a Participant under this Plan, reflecting Awards made to the
Participant under this Plan and changes in the value of Awards made hereunder.

        (b)    "AWARD" shall mean the cash compensation payable to a Participant
pursuant to the Plan and the Participant's Award Document.

        (c)    "AWARD DOCUMENT" shall mean 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 this plan is valid unless it
is set forth in an Award Document in substantially the form attached hereto as
Appendix A. In case of conflict between the Award Document and this 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 this
Plan.

        (d)    "BOARD OF DIRECTORS" shall mean the Board of Directors of First
Financial Corporation.

        (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;

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

<PAGE>

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

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

               (5)     Removal or permanent prohibition of the Participant from
        participating in the conduct of Company's affairs by an order issued
        under Section 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act,
        12USC1818(e)(4) and (g)(1).

        (f)    "CHANGE IN CONTROL" shall mean any of the following:

               (1)     MERGER. The Company merges into or consolidates with
        another corporation or business entity, or merges another corporation or
        business entity into the Company, and as a result less than 50% of the
        combined voting power of the resulting corporation or business entity
        immediately after the merger or consolidation is held by persons who
        were the holders of the Company's voting securities immediately before
        the merger or consolidation;

               (2)     ACQUISITION OF SIGNIFICANT SHARE OWNERSHIP. A report on
        Schedule 13D, another form or schedule (other than Schedule 13G), or a
        successor form or schedule is filed or is required to be filed under
        Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, if the
        report discloses that the filing person or persons acting in concert has
        or have become the beneficial owner of 20% or more of a class of the
        Company's voting securities after the effective date of this Plan, but
        this subsection 2(f)(2) shall not apply to beneficial ownership of
        voting shares of the Company held in a fiduciary capacity by a
        Subsidiary of Company or to beneficial ownership of voting shares of the
        Company held by an employee stockownership plan of the Company or a
        Subsidiary;

               (3)     CHANGE IN BOARD COMPOSITION. During any period of two
        consecutive years, individuals who constitute the Company's Board of
        Directors at the beginning of the two-year period cease for any reason
        to constitute at least a majority thereof; provided, however, that - for
        purposes of this Subsection 2(f)(3) - each director who is first elected
        by the Company's Board of Directors (or first nominated by the Company's
        Board of Directors for election by stockholders) by a vote of at least
        two-thirds (2/3) of the directors who were directors at the beginning of
        the period, shall be deemed to have been a director at the beginning of
        the two-year period.

               (4)     SALE OF ASSETS.  The Company sells to any third party all
        or substantially all of the Company's assets.

        (g)    "COMPANY" shall mean First Financial Corporation and its
Subsidiaries.

        (h)    "COMMITTEE" shall mean the Compensation Committee of the Board of
Directors of the Company.

        (i)    "DISABILITY" shall mean if the Participant is covered by a
disability policy of the Company, 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)    "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 clauses (2)(j)(1) through 2(j)(5)
below:
<PAGE>

                      (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, that the
               Participant held immediately before the Change in Control, or the
               removal or failure to nominate the Participant as a director of
               the Company, provided the Participant was a director of the
               Company 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;

                             (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 10% or more in such compensation, and
                      annual compensation means the Participant's total
                      compensation from the Company for a calendar year,
                      including compensation deferred at the election of the
                      Participant, and including any salary reduction
                      contributions made by the Company, for, or on behalf of
                      the Participant under a qualified or other compensation,
                      benefit, or retirement plan of the Company. Compensation
                      taken into account for purposes of this Subsection
                      2(j)(2)(b) 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
                      benefit, compensation or incentive plans and
                      arrangements or reduction in the scope or value thereof,
                      which situation is not remedied within 10 calendar days
                      after written notice to the Company from the
                      Participant; or

                             (d)    Termination or denial of the Participant's
                      rights to benefits under this Plan and/or the
                      Participant's Award Document, other than for Cause as
                      provided in Subsection 8(d), which situation is not
                      remedied within 10 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 10
               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 either 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
<PAGE>
               law) assumes all duties and obligations of the Company under this
               Plan and Awards hereunder; or

                      (5)    RELOCATION OF THE PARTICIPANT. The Company
               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 10% 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.

        (k)    "NORMAL RETIREMENT AGE" shall mean age 65.

        (l)    "PARTICIPANT" shall mean a director or Top Hat Employee of the
Company designated by the Committee to be a participant in the Plan. A director
who is also an employee of the Company must be a Top Hat Employee in order to
participate in the Plan.

        (m)    "PERSON" or "PERSONS" shall mean individuals, corporations,
partnerships, trusts, associations, joint ventures, pools, syndicates, sole
proprietorships, unincorporated organizations or other entities.

        (n)    "PLAN" shall mean the First Financial Corporation 2001 Long-Term
Incentive Plan.

        (o)    "SUBSIDIARY" shall mean a corporation more than 50% 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.

        (p)    "TOP HAT EMPLOYEES" shall mean employees who are members of a
select group of management or highly compensated employees within the meaning of
Section 201(2) of ERISA.

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 in substantially the form attached
hereto as Appendix A. 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.

<PAGE>

        (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 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 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 of Directors 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 Section 8(d) of this 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 for fewer than five

<PAGE>

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 at the Plan's inception, only
outside directors and Top Hat Employees of the Company who are age 65 or under
shall be eligible to be Participants under the Plan, provided that said 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 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 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 will
not be eligible to receive Awards under 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.

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 accounting
purposes. No assets of the Company 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 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.

<PAGE>

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
was not satisfied and no payment of an Award shall be made if the Participant is
terminated for Cause. This subsection 7(a) may not be superceded by any action
of the Board of Directors or the Committee in an Award Document or otherwise.

        (b)    WHEN PAYMENTS BEGIN. Payment of the cash value of a Participant's
Account shall begin on the earlier of: (1) January 1, 2015, or (2) "Normal
Retirement Age." It is not necessary for a Participant to terminate his or her
employment or director service as a condition to receiving payment of the cash
value of his or her Account. Notwithstanding the preceding sentence, if a
Participant terminates due to "Disability", the Committee, in its discretion,
may defer payment of the cash value of a Participant's Account until such time
as the benefits paid under this Plan will not offset or reduce the amount of
benefits received by the Participant under the Company's disability plan if the
two following conditions exist: (1) Participant's service with the Company
terminates because of "Disability", as provided in Subsection 8(b)(3) and, (2)
payment of the cash value of the Participant's Account would have the effect of
offsetting or reducing disability benefits otherwise payable to the Participant
under the Company's disability plan.

8.      TERMINATION.

        (a)    NO ADDITIONAL AWARDS AFTER TERMINATION.  A Participant whose
employment or director service terminates shall not be entitled to any
additional Awards under this Plan on and after termination.

<PAGE>

        (b)    EXISTING AWARDS AFTER TERMINATION.  Pursuant to Subsection 7(b)
of this Plan, any Participant whose employment or director service with the
Company terminates:

        (1)    On or after the date specified according to Subsection 7(b) of
    this Plan (which date may be January 1, 2015, or "Normal Retirement Age")
    shall receive payment of the vested portion of the cash value of his or her
    Account, with interest on the Account balance credited at the rate specified
    in the Award Document;

        (2)    Before the date specified according to Subsection 7(b) of this
    Plan, (which date may be January 1, 2015, or "Normal Retirement Age")
    excepting termination because of death, Disability or Cause and termination
    within twelve months after a Change in Control, shall 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 termination
    occurred. Payment shall be made according to the Participant's Award
    Document;

        (3)    Because of Disability occurring before the date specified
    according to Subsection 7(b) of this Plan (which date may be January 1,
    2015, or "Normal Retirement Age") shall receive payment according to the
    Participant's Award Document, however, pursuant to Subsection 7(b), the
    Committee may, in its discretion, defer payment of the cash value of the
    Participant's Account until such time as the benefits paid under this Plan
    will not offset or reduce the amount of benefits received by the Participant
    under the Company's disability plan. Notwithstanding the preceding sentence,
    if a Participant's Award Document specifies the form of payment (single sum
    payment or 180 monthly installment payments) to be made to a
    beneficiary(ies), the Committee may not change the form of payment without
    the consent of the beneficiary(ies).

        (4)    Within 12 months after a Change in Control, but before the date
    specified according to Subsection 7(b) of this Plan (which date may be
    January 1, 2015, or "Normal Retirement Age"), 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 employment or director 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.

<PAGE>

        (c)    PARTICIPANT'S DEATH. If a Participant's employment or director
service with the Company terminates because of Participant's death prior to
payment of his 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 Account in either a single sum or
180 monthly payments, as determined by the Committee in its sole discretion.
Notwithstanding the preceding sentence, if a Participant's Award Document
specifies the form of payment (lump sum or 180 monthly installments), the
Committee may not change the form of payment without the written consent of the
beneficiary(ies).

    (d) 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 may be forfeited 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 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.

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 or
beneficiaries. 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

<PAGE>

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 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, distribution of the amounts otherwise payable to the deceased Participant
under the Plan shall be made to the personal representative of his or her
estate. If the beneficiary designated by the Participant survives the
Participant but dies before receiving all distributions hereunder, all amounts
otherwise payable to the deceased beneficiary shall be paid to the deceased
beneficiary's estate, unless the Participant's beneficiary designation provides
otherwise. 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.

<PAGE>

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, or a beneficiary who
is claiming entitlement to the payment of any benefit under the Plan.

        (2) NOTIFICATION OF BENEFIT DETERMINATIONS. The Committee will notify a
Claimant, in accordance with Section 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;

        (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.

<PAGE>

        (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 Committee. Upon
receiving the written request for review, the Committee 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, 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
Committee. In the case of a Disability Claim, the Committee will not be: (i) the
party who made the Adverse Benefit Determination that is the subject of the
appeal, nor (ii) the subordinate of that party. In performing this review for a
Disability Claim, the Committee 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 Committee 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 subordinate of such an individual if
the named fiduciary believes that such a consultation is necessary to properly
complete the review process.

        (6) NOTIFICATION OF BENEFIT DETERMINATION ON REVIEW. The Committee 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 Committee, 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 Committee will provide a Claimant with notification of its benefit
determination on review in a 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;

<PAGE>

        (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.

        (5)    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 13.

14.     PLAN ADMINSTRATOR.

        The Company shall be the plan administrator under this 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, 2001.

16.     LIMITATIONS ON LIABILITY.

        Notwithstanding any of the proceeding provisions of this Plan, none of
the Company and each individual acting as an employee or agent of any of them
shall be liable to any Participant or beneficiary for any claim, 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, officer 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

<PAGE>

or providing for the care and maintenance of such person. Any such payment shall
be a payment for the account of such person and a complete discharge of any
liability of the Company under the Plan with respect to the amount of such
payment.

18.     MISCELLANEOUS.

        (a)    TERMINATION AND AMENDMENT. The Plan may be terminated, modified
or amended by the Board of Directors, 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.

        (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, 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 Directors of
the Company, or the right of the Company's stockholder(s) to decline to elect
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)    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.
<PAGE>

        (f)    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.

        (g)    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.

        (h)    ACTION BY COMPANY. Any action required of or permitted by the
Company shall be by resolution of its Board of Directors or the Committee or by
a person or persons duly authorized by resolution of the Board of Directors or
the Committee.

        IN WITNESS WHEREOF, the Company has caused this 2001 Long-Term Incentive
Plan to be executed by its officers thereunder duly authorized, this 5th day of
February, 2002, but effective as of January 1, 2001.

                                           FIRST FINANCIAL CORPORATION

                                           By: /s/ Norman L. Lowery

                                               Norman L. Lowery, Vice President

ATTEST:

By: /s/ Michael Carty

    Michael Carty, Secretary

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