Document:

exv10w5

 

Exhibit 10.5

FIRST FINANCIAL CORPORATION 2005

EXECUTIVES’ DEFERRED COMPENSATION PLAN

Effective Date: January 1, 2005

Krieg DeVault LLP

One Indiana Square, Suite 2800

Indianapolis, IN 46204-2079

www.kriegdevault.com

 

 

FIRST FINANCIAL CORPORATION 2005

EXECUTIVES’ DEFERRED COMPENSATION PLAN

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE	 	PAGE	 
	INTRODUCTION
	 	 	1	 
	 
	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	1.1 “Acceleration Event”
	 	 	1	 
	1.2 “Account”
	 	 	1	 
	1.3 “Adjustment”
	 	 	1	 
	1.4 “Board”
	 	 	1	 
	1.5 “Bonus Compensation”
	 	 	1	 
	1.6 “Code” 
	 	 	1	 
	1.7 “Committee”
	 	 	1	 
	1.8 “Company”
	 	 	1	 
	1.9 “Compensation”
	 	 	1	 
	1.10 “Deferral Account”
	 	 	2	 
	1.11 “Effective Date”
	 	 	2	 
	1.12 “Employee”
	 	 	2	 
	1.13 “Employer”
	 	 	2	 
	1.14 “ESOP”
	 	 	2	 
	1.15 “ESOP Account”
	 	 	2	 
	1.16 “Key Employee”
	 	 	2	 
	1.17 “Participant”
	 	 	2	 
	1.18 “Participant Deferral Contributions”
	 	 	2	 
	1.19 “Plan”
	 	 	3	 
	1.20 “Plan Year”
	 	 	3	 
	1.21 “Separation from Service
	 	 	3	 
	1.22 “Unforeseeable Emergency”
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II ELIGIBILITY AND PARTICIPATION
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III CONTRIBUTIONS AND ALLOCATIONS
	 	 	4	 
	 
	 	 	 	 
	3.1 Participant Deferral Contributions
	 	 	4	 
	3.2 Deferral Elections
	 	 	4	 
	3.3 Supplemental Benefit
	 	 	5	 
	3.4 Allocation of Contributions and Adjustments
	 	 	6	 
	 
	 	 	 	 
	ARTICLE IV INVESTMENT OF CONTRIBUTIONS
	 	 	6	 
	 
	 	 	 	 
	4.1 Investments
	 	 	6	 
	4.2 Unsecured Contractual Rights
	 	 	7	 

 

 

	 	 	 	 	 
	ARTICLE	 	PAGE	 
	ARTICLE V DISTRIBUTIONS
	 	 	7	 
	 
	 	 	 	 
	5.1 Time of Payment of Benefits
	 	 	7	 
	5.2 Method of Payment of Benefits
	 	 	7	 
	5.3 Benefit Payment Elections
	 	 	8	 
	5.4 Death of the Participant and Beneficiary Designation
	 	 	8	 
	5.5 Unforeseeable Emergency
	 	 	9	 
	5.6 Acceleration of Time of Payment
	 	 	10	 
	 
	 	 	 	 
	ARTICLE VI PLAN ADMINISTRATION
	 	 	12	 
	 
	 	 	 	 
	6.1 Administration by the Committee
	 	 	12	 
	6.2 Powers and Responsibilities of the Committee
	 	 	13	 
	6.3 Liabilities
	 	 	13	 
	6.4 Income and Employment Tax Withholding
	 	 	13	 
	 
	 	 	 	 
	ARTICLE VII AMENDMENT AND TERMINATION OF THE PLAN
	 	 	14	 
	 
	 	 	 	 
	7.1 Amendment of the Plan
	 	 	14	 
	7.2 Termination of the Plan
	 	 	14	 
	 
	 	 	 	 
	ARTICLE VIII CLAIMS PROCEDURES
	 	 	14	 
	 
	 	 	 	 
	8.1 Procedures Governing Benefit Claims
	 	 	14	 
	8.2 Notification of Benefit Determinations
	 	 	14	 
	8.3 Manner and Content of Notification of Benefit Determinations
	 	 	14	 
	8.4 Appeal of Adverse Benefit Determinations
	 	 	15	 
	8.5 Benefit Determination on Review
	 	 	15	 
	8.6 Notification of Benefit Determination on Review
	 	 	15	 
	8.7 Manner and Content of Notification of Benefit Determination on Review
	 	 	16	 
	8.8 Court Action
	 	 	16	 
	 
	 	 	 	 
	ARTICLE IX MISCELLANEOUS
	 	 	16	 
	 
	 	 	 	 
	9.1 Governing Law
	 	 	16	 
	9.2 Headings and Gender
	 	 	16	 
	9.3 Participant’s Rights; Acquittance
	 	 	16	 
	9.4 Spendthrift Clause
	 	 	16	 
	9.5 Counterparts
	 	 	17	 
	9.6 No Enlargement of Employment Rights
	 	 	17	 
	9.7 Limitations on Liability
	 	 	17	 
	9.8 Incapacity of Participant or Beneficiary
	 	 	17	 
	9.9 Corporate Successors
	 	 	17	 
	9.10 Evidence
	 	 	17	 
	9.11 Action by Employer
	 	 	17	 
	9.12 Severability
	 	 	17	 

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INTRODUCTION

     The purpose of this Plan is to permit a select group of management or highly compensated
Employees to elect to defer compensation from the Employer without regard to the limitations
imposed by the Code on the benefits which may accrue to those Employees under the Employer’s
tax-qualified retirement plans and to provide supplemental retirement benefits to help recompense
the Employees for benefits lost due to the imposition of Code limitations on tax-qualified
retirement benefits. It is the intention of the Employer that the Plan will constitute a deferred
compensation arrangement that complies with Code Section 409A and an unfunded arrangement
maintained for the purpose of providing deferred compensation for a select group of management or
highly compensated employees for federal income tax purposes and for purposes of Title I of the
Employee Retirement Income Security Act of 1974, as amended.

ARTICLE I

DEFINITIONS

     Whenever the initial letter of a word or phrase is capitalized herein, the following words and
phrases will have the meanings stated below unless a different meaning is plainly required by the
context:

     1.1 “Acceleration Event” means those events described in Section 5.6 which permit acceleration
of the time of payment of a Participant’s benefit under the Plan.

     1.2 “Account” means the Participant’s ESOP Account and Deferral Account.

     1.3 “Adjustment” means the net increases and decreases in the market value of the Deferral
Account and ESOP Account of each Participant. Such increases and decreases will include such items
as realized or unrealized investment gains and losses, if any, and investment income, if any, and
may, in the discretion of the Committee, include expenses properly attributable to administering
the Plan.

     1.4 “Board” means the Board of Directors of First Financial Corporation.

     1.5 “Bonus Compensation” means amounts received by Participant due to an annual bonus where
the amount of, or entitlement to the bonus, is contingent and not part of the Participant’s base
salary.

     1.6 “Code” means the Internal Revenue Code of 1986, as amended.

     1.7 “Committee” means the Compensation Committee of the Board.

     1.8 “Company” means First Financial Corporation.

     1.9 “Compensation” means the Participant’s total compensation from his Employer for a Plan
Year, other than Bonus Compensation or deferred compensation that is currently included in gross
income, but including any salary reduction Employer contributions made on behalf of the Participant
under this Plan or under a plan which qualifies under Code Section

 

 

401(k) and/or Code Section 125.
Compensation taken into account under the Plan will not be limited as provided in Code Section
401(a)(17).

     1.10 “Deferral Account” means the individual bookkeeping account maintained for each
Participant in accordance with subsection 3.4(a) and which is credited with Participant Deferral
Contributions for that Participant.

     1.11 “Effective Date” means January 1, 2005.

     1.12 “Employee” means any individual who is employed by an Employer.

     1.13 “Employer” means the Company, First Financial Bank, NA or any other entity First
Financial Corporation allows to adopt and become a co-sponsor of the Plan.

     1.14 “ESOP” means the First Financial Corporation Employee Stock Ownership Plan, as amended
from time to time.

     1.15 “ESOP Account” means the individual bookkeeping account maintained for each Participant
in accordance with subsection 3.4(b) and which is credited with any Supplemental Benefit
contributed for that Participant pursuant to Section 3.3.

     1.16 “Key Employee” means an Employee who is:

	 	(a)	 	An officer of an Employer having annual compensation greater
than $140,000;
	 
	 	(b)	 	A five-percent owner of the Company; or
	 
	 	(c)	 	A one-percent owner of the Company having annual compensation
greater than $150,000.

The $140,000 amount in subsection 1.16 (a) will be adjusted at the same time and in the same manner
as under Code Section 415(d), except that the base period will be the calendar quarter beginning
July 1, 2001, and any increase under this sentence which is not a multiple of $5,000 will be
rounded to the next lower multiple of $5,000.

     1.17 “Participant” means a salaried executive Employee of an Employer who becomes a
Participant pursuant to the provisions of Article II of the Plan.

     1.18 “Participant Deferral Contributions” means contributions made to the Plan pursuant to
Section 3.1 by an Employer, at the election of the Participant, in lieu of Compensation or Bonus
Compensation, under a deferral election filed by the Participant. Although the term “contribution”
is used for ease of reference, credits to Participants’ individual accounts under the Plan are
merely credits to a bookkeeping account.

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     1.19 “Plan” means the deferred compensation plan embodied herein, as amended from time to
time, known as the First Financial Corporation 2005 Executives’ Deferred Compensation Plan.

     1.20 “Plan Year” means the 12-month period beginning each January 1 and ending on the
following December 31.

     1.21 “Separation from Service” means the date on which the Participant dies, retires or
otherwise experiences a Termination of Employment with the Employer. Provided, however, a
Separation from Service does not occur if the Participant is on military leave, sick leave or other
bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so
long as the Participant retains a right to reemployment with the Employer under an applicable
statute or by
contract. For purposes of this Section 1.21, a leave of absence constitutes a bona fide leave
of absence only if there is a reasonable expectation that the Participant will return to perform
services for the Employer. If the period of leave exceeds six months and the Participant does not
retain the right to reemployment under an applicable statute or by contract, the employment
relationship is deemed to terminate on the first date immediately following such six-month period.
Notwithstanding the foregoing, where a leave of absence is due to any medically determinable
physical or mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than six months, where such impairment causes the Participant
to be unable to perform the duties of his position of employment or any substantially similar
position of employment, a 29-month period of absence may be substituted for such six-month period.
The Participant shall incur a “Termination of Employment” for purposes of this Section 1.21 when a
termination of employment has occurred under Treasury Regulation 1.409A-1(h)(ii).

     1.22 “Unforeseeable Emergency” means a severe financial hardship of the Participant resulting
from an illness or accident of the Participant, the Participant’s spouse, the Participant’s
beneficiary, or the Participant’s dependent (as defined in Code Section 152(a), without regard to
Code Sections 152(b)(1), (b)(2) and (d)(1)(B)); loss of the Participant’s property due to casualty
(including the need to rebuild a home following damage to a home not otherwise covered by
insurance, for example, not as a result of a natural disaster); imminent foreclosure of or eviction
from the Participant’s primary residence; the need to pay for medical expenses, including
non-refundable deductibles, as well as for the costs of prescription drug medication; the need to
pay for the funeral expenses of a spouse or a dependent (as defined in Code Section 152(a)) or
other similar extraordinary and unforeseeable circumstances arising as a result of events beyond
the control of the Participant.

ARTICLE II

ELIGIBILITY AND PARTICIPATION

     A member of a select group of management or highly compensated Employees is eligible to become
a Participant in the Plan provided the Employee is designated as a Participant by the Committee in
writing. A designated Employee will become a Participant as of the later of the Effective Date or
the date specified by the Committee. A Participant may be removed as an active Participant by the
Committee effective as of any date, so that the Participant will not be

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entitled to make deferrals
or receive benefit accruals under Article III on or after that date, except that no removal shall
retroactively impair or otherwise adversely affect (without written consent) the rights of a
Participant or beneficiary which have accrued prior to the date of such action.

ARTICLE III

CONTRIBUTIONS AND ALLOCATIONS

     3.1 Participant Deferral Contributions.

	 	(a)	 	Compensation Deferral Elections. Subject to the terms
and limitations of this Article, a Participant may elect to have a portion of
the Participant’s Compensation withheld by the Company and credited as a
Participant Deferral Contribution under this Plan.
	 
	 	(b)	 	Bonus Deferral Elections. Subject to the terms and
limitations of this Article, a Participant may elect to have all or a portion
of the Participant’s Bonus Compensation withheld by the Company and credited as
a Participant Deferral Contribution under this Plan.
	 
	 	(c)	 	Limit on Contributions. The maximum amount of a
Participant’s Compensation or Bonus Compensation that may be subject to
Participant Deferral Contributions for a Plan Year will be (i) 50 percent of
the Participant’s Compensation, and (ii) 100 percent of any Bonus Compensation.

     3.2 Deferral Elections. Participant Deferral Contributions will be withheld from a
Participant’s Compensation or Bonus Compensation in accordance with the following terms and
conditions.

	 	(a)	 	Requirement for Deferral Elections. As a condition to
Bank’s obligation to withhold and the Committee’s obligation to credit
Participant Deferral Contributions for the benefit of a Participant pursuant to
Section 3.1, the Participant must complete and file a deferral election form
with the Committee (in a format prescribed by the Committee).
	 
	 	(b)	 	Timing of Execution and Delivery of Elections. To be
effective to defer any portion of a Participant’s Compensation or Bonus
Compensation, a deferral election form must be filed with the Committee with
respect to that Compensation or Bonus Compensation on or prior to the last day
of the calendar year preceding the Plan Year in which the services giving rise
to the Compensation or Bonus Compensation are performed. For example, to defer
Compensation or Bonus Compensation payable with respect to services performed
during the 2007 Plan Year, an election must be filed on or before December 31,
2006.

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	 	(c)	 	Initial Eligibility. In the case of the first Plan
Year in which an individual becomes a Participant, the deferral election form
may be filed with the Committee at any time within 30 days of the date the
individual becomes a Participant (rather than the date specified under
subsection (b)). This initial election will only apply to Compensation or
Bonus Compensation paid for services performed after the filing of the deferral
election form. This special initial eligibility election rule will not apply
if the Participant is or has been a participant in a deferred compensation
arrangement required to be aggregated with this Plan under the rules of Section
409A.
	 
	 	(d)	 	Modification of Deferral Elections. Subject to the
provisions of subsection 3.2(e), once made, a deferral election will remain in
effect for a Plan Year, unless the election is revoked or a new election filed
prior to the beginning of the Plan Year. The revocation or new election must
be filed in accordance with the requirements of subsection (b) above. No
election may be changed for Compensation or Bonus Compensation payable for a
Plan Year after the last day of the election period described in subsection
(b). For example, any election in place for 2007 Compensation may not be
changed after December 31, 2006, except as provided in subsection 3.2(e).
	 
	 	(e)	 	Unforeseeable Emergency. The Committee, in its sole
discretion, may cancel a Participant’s election to defer Compensation or Bonus
Compensation if the Committee determines the Participant has suffered an
“Unforeseeable Emergency,” as defined in Section 1.22. The cancellation will
apply to the period after the Committee’s determination. The Participant must
submit a signed statement of the facts causing the severe financial hardship
and any other information required by the Committee, in its sole discretion.
An “Unforeseeable Emergency” will be deemed to occur for purposes of this
Section if a Participant receives a hardship withdrawal from the First
Financial Corporation 401(k) Plan pursuant to Code Section 401(k) and Treasury
Regulation 1.401(k)-1(d)(3).

     3.3 Supplemental Benefit. An Employer will make a contribution to each Participant’s
ESOP Account for each Plan Year in an amount equal to the amount that would have been contributed
to the ESOP, but was not, due to the limitation of Code Section 401(a)(17), for the benefit of the
Participant for the ESOP’s plan year that ends with or within that Plan Year.

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     3.4 Allocation of Contributions and Adjustments.

	 	(a)	 	Deferral Account. The Committee will establish and
maintain a Deferral Account in the name of each Participant, to which the
Committee will credit all amounts to be allocated to each Participant pursuant
to Sections 3.1, 3.2 and 4.1 and from which the Committee will debit all
amounts paid to the Participant or his designated beneficiary(ies) pursuant to
Article V.
	 
	 	(b)	 	ESOP Account. The Committee will also establish and
maintain an ESOP account in the name of each Participant, to which the
Committee will credit all amounts to be allocated to each Participant pursuant
to Sections 3.3 and 4.1 and from which the Committee will debit all amounts
paid to the Participant or his designated beneficiary(ies) pursuant to Article
V.
	 
	 	(c)	 	Determination of Adjustments. Following the
allocations made pursuant to the foregoing, the Committee will determine the
Adjustments for December 31st of each Plan Year, and on such other dates as the
Committee deems necessary or advisable, by adding together all income received,
and realized and unrealized gains and losses, and deducting therefrom all
taxes, charges or expenses (unless paid separately by the Employers in the
Committee’s discretion, outside the confines of this Plan) and any realized and
unrealized losses since the most recent allocation of Adjustments to
Participants’ Deferral and ESOP Accounts.
	 
	 	(d)	 	Allocation of Adjustments. The Adjustments will be
allocated as of the allocation date specified in subsection (c) to the Deferral
and ESOP Accounts of Participants who maintain a credit balance in their
Deferral and ESOP Accounts as of such date as provided in Section 1.3.

ARTICLE IV

INVESTMENT OF CONTRIBUTIONS

     4.1 Investments. All contributions under the Plan will be credited to each
Participant’s Deferral Account or ESOP Account as provided in Section 3.4. The Adjustment to each
Participant’s Deferral Account will be determined by the earnings on the investments made under the
Plan through a so-called irrevocable “rabbi” trust established and maintained by the Company to
provide for the benefits created by this Plan. The Participant may direct the trustee of the rabbi
trust to invest his Deferral Account in any investment approved by the Committee from time to time,
including whole shares of Company common stock. The Committee may establish any rule or procedure
it deems necessary or desirable concerning the Participant’s ability to direct or failure to direct
the investment of the rabbi trust funds. A Participant’s ESOP Account will be invested in whole
shares of Company common stock through the rabbi trust. Fractional shares will be invested in
shares of Company common stock or in cash or cash equivalents as determined from time to time by
the Committee. No provision of the Plan will impose or be deemed to impose any obligation upon the
Employers, other than an unsecured contractual obligation to make a payment to a Participant or his
beneficiary(ies) in accordance

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with the terms of the Plan. Benefits payable under the Plan will be
paid directly by the Employers from their general assets to the extent not paid from the rabbi
trust established by the Company.

     4.2 Unsecured Contractual Rights. The Plan at all times will be unfunded and will
constitute a mere promise by the Employers to make benefit payments in the future. Notwithstanding
any other provision of this Plan, neither a Participant nor his designated beneficiary(ies) will
have any preferred claim on, or any beneficial ownership interest in, any assets of the Employers
prior to the time benefits are paid as provided in Article V, including any Compensation or Bonus
Compensation deferred by the Participant. All rights created under this Plan will be mere
unsecured contractual rights of the Participant against the Employers.

ARTICLE V

DISTRIBUTIONS

     5.1 Time of Payment of Benefits. Distribution of all amounts credited to a
Participant’s Deferral and ESOP Accounts, including any Adjustments credited in accordance with
Section 3.4, will commence within 60 days after the Participant’s Separation from Service, except
as provided in Sections 5.4 through 5.6. If at the time of the Participant’s Separation from
Service, for any reason other than death, the Participant meets the definition of a Key Employee,
payment of all amounts under this Section will be suspended for six months immediately following
the Participant’s Separation from Service. If the Participant elected to receive payment of his
benefit in the form of installments, payment of any installments that the Participant was otherwise
entitled to receive during the six-month suspension period will be accumulated and paid in the form
of a lump sum on the first day following the six-month suspension period. The remainder of the
Participant’s benefit will then commence distribution in the manner and at the time elected by the
Participant. If the Participant elected to receive payment of his benefit in the form of a lump
sum, he will receive payment of that amount on the first day following the six-month suspension
period. If the Participant incurs a Separation from Service due to death, regardless of whether
the Participant meets the definition of a Key Employee, payment of his benefit will not be
suspended.

     5.2 Method of Payment of Benefits. The balance of a Participant’s Deferral and ESOP
Accounts will be distributed in cash or kind, as determined by the Committee, in one of the
following methods effectively elected by the Participant in his payment election form:

	 	(a)	 	A single lump sum.
	 
	 	(b)	 	Installments payable at such monthly, quarterly, semi-annual or
annual intervals as will be elected by the Participant, over a period not in
excess of 20 years.
	 
	 	(c)	 	A combination of the methods specified in subsections (a) and (b).

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     5.3 Benefit Payment Elections.

	 	(a)	 	Initial Election. A Participant may elect the manner
in which his Account balance will be paid to him under Section 5.2 and to his
beneficiaries under Section 5.4 in accordance with the terms and conditions of
this Section. To make an election a Participant must file an election with the
Committee (on a form or forms prescribed by the Committee). To be effective,
the election under this Section must be filed with the Committee no later than
the later of: (i) the time the Participant first makes a deferral election
under the Plan (or under any other plan required to be aggregated with this
Plan pursuant to the requirements of Code Section 409A); or (ii) December 31,
2007. If no election is made or if the election is not timely or properly
made, distribution will be made in the form of a single lump sum payment.
	 
	 	(b)	 	Change of Election. An election as to the manner of
payment may not be changed after the payment has been made or installment
payments have commenced. Prior to that time, a Participant may change his
election by filing a new election form with the Committee; provided, however,
that: (i) the new election will not take effect until at least 12 months after
the date the new election is filed; (ii) the single lump sum payment or the
commencement of installment payments with respect to which such election is
made must be deferred for a period of not less than five years from the date
such payment would otherwise have been made; and (iii) the new election is
filed at least 12 months prior to the date of the first scheduled payment under
the Plan.
	 
	 	(c)	 	Installments. If installment distributions are
elected, the initial installment amount will be the Account balance otherwise
payable in a single sum multiplied by a fraction, the numerator of which is one
and the denominator of which is the total number of installment distributions.
Subsequent installments will also be a fraction of the unpaid Account balance,
the numerator of which is always one but the denominator of which is the
denominator used in calculating the previous installment minus one. For
example, if five annual installment payments are elected, the initial
installment will be one-fifth of the vested single sum Account balance, the
second installment will be one-fourth of the remaining Account balance and the
third installment will be one-third of the remaining Account balance, and so
on.

     5.4 Death of the Participant and Beneficiary Designation.

	 	(a)	 	Form and Time of Payment. In the event a Participant
dies prior to the time his benefits under the Plan are distributed, the balance
in his Deferral and ESOP Accounts will be paid to his designated
beneficiary(ies) in a single lump sum. Such distribution will be made within
60 days of the 

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	 	 	 	date of the Participant’s death. If the Participant dies after
distribution of his benefits under the Plan has commenced, his remaining
benefit, if any, will be paid to his designated beneficiary(ies) in a single
lump sum.

	 	(b)	 	Designation of Beneficiaries. The Participant may
designate a primary and contingent beneficiary(ies) to receive any amount
payable under subsection 5.4(a). Such designation may be changed at any time
for any reason by the Participant. If the Participant fails to designate a
beneficiary, or if such designation will for any reason be illegal or
ineffective, or if the designated beneficiary(ies) will not survive the
Participant, his benefits under the Plan will be paid: (i) to his surviving
spouse; (ii) if there is no surviving spouse, to the duly appointed and
qualified executor or other personal representative of the Participant to be
distributed in accordance with the Participant’s will or applicable intestacy
law; or (iii) in the event there is no such representative appointed and
qualified within 45 days after the Participant’s death, then to such persons
as, at the date of death, would be entitled to share in the distribution of the
Participant’s estate under the provisions of the applicable statutes then in
force governing the descent of intestate property, in the proportions specified
in such statute.

     5.5 Unforeseeable Emergency. In the event the Committee determines in its sole
discretion that a Participant has experienced an Unforeseeable Emergency, as defined in Section
1.22, all or a portion of a Participant’s Account may be distributed in a single lump sum payment
no later than 60 days after the Committee’s determination. The Participant must submit a signed
statement of the facts causing the severe financial hardship and any other information required by
the Committee, in its sole discretion. Payment under this section is subject to the following
conditions:

	 	(a)	 	The emergency must not be able to be relieved through
reimbursement or compensation from insurance or otherwise, by liquidation of
the Participant’s assets, to the extent liquidation of such assets would not
cause severe financial hardship, or by cessation of deferrals under this Plan.
	 
	 	(b)	 	The amount of the distribution must be limited to the amount
reasonably necessary to satisfy the emergency need (which may include amounts
necessary to pay any Federal, state, or local income taxes or penalties
reasonably anticipated to result from the distribution) and must take into
account any additional compensation available due to cancellation of a
deferral election under Section 3.2(e). However, the determination of
amounts reasonably necessary to satisfy the emergency need is not required
to take into account any additional compensation that due to the
unforeseeable emergency is available under another nonqualified deferred
compensation plan but has not actually been paid, or that is available due
to the unforeseeable emergency under another plan that would provide for

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	 	 	 	deferred compensation except due to the application of the effective date
provisions of Treasury Regulation 1.409A-6. The payment may be made from
any plan in which the Participant participates that provides for payment
upon an Unforeseeable Emergency, provided that the plan under which the
payment was made must be designated at the time of payment.

     5.6 Acceleration of Time of Payment. Except as provided in Section 5.5 or this
Section 5.6, the time or schedule of payment of a Participant’s Account provided in Sections 5.1
through 5.4 may not be accelerated. The time or schedule of payment of a Participant’s Account may
be accelerated in the following circumstances, each of which is an “Acceleration Event,” to a time
that is no later than 60 days following the Committee’s determination that one of the Acceleration
Events has occurred:

	 	(a)	 	Domestic Relations Order. The time or schedule of a
payment from a Participant’s Account may be accelerated to make a payment to an
individual other than the Participant as may be necessary to fulfill a domestic
relations order (as defined in Code Section 414(p)(1)(B)).
	 
	 	(b)	 	Conflicts of Interest. The time or schedule of a
payment from a Participant’s Account may be accelerated to the extent
reasonably necessary to avoid the violation of an applicable Federal, state,
local, or foreign ethics law or conflicts of interest law (including where such
payment is reasonably necessary to permit the service provider to participate
in activities in the normal course of his or her position in which the service
provider would otherwise not be able to participate under an applicable rule).
A payment is reasonably necessary to avoid the violation of Federal, state,
local, or foreign ethics laws or conflicts of interest law if the payment is a
necessary part of a course of action that results in compliance with a Federal,
state, local, or foreign ethics law or conflicts of interest law that would be
violated absent such course of action, regardless of whether other actions
would also result in compliance with the Federal, state, local, or foreign
ethics law or conflicts of interest law.
	 
	 	(c)	 	Payment of Employment Taxes. The time or schedule of a
payment from a Participant’s Account may be accelerated to pay the Federal
Insurance Contribution Act (“FICA”) tax imposed under Code Sections 3101,
3121(a) and 3121(v)(2) on compensation deferred under the Plan.
Additionally, the time or schedule of a payment from a Participant’s Account
may be accelerated under the Plan to pay the income tax at source on wages
imposed under Code Section 3401 or the corresponding withholding provisions
of state, local or foreign tax laws as a result of payment of the FICA
amount, and to pay the additional income tax at source on wages attributable
to the pyramiding section 3401 wages and taxes. However, the total payment
under this paragraph will not exceed the aggregate of the FICA amount and
the related income tax withholding on such FICA amount.

-10-

 

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

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

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

	 	(ii)	 	The Company’s irrevocable action to terminate
and liquidate the Plan within the 30 days preceding or the 12 months
following a change in control as defined in Treasury Regulation
1.409A-3(i)(5). For purposes of this subsection 5.6(e), the Plan may
be terminated only if all agreements, methods, programs, and other
arrangements sponsored by the Employer immediately after the
time of the change in control with respect to which deferrals of
compensation are treated as having been deferred under a single plan
under Treasury Regulation 1.409A-1(c)(2) are terminated and
liquidated with respect to each Participant that experienced the
change in control, so that under the terms of the termination and
liquidation all such Participants are required to receive all amounts
of compensation deferred under the Plan and other arrangements within
12 months of the date the Company irrevocably takes all necessary
action to terminate and liquidate the Plan and other arrangements.

-11-

 

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

	 	(A)	 	The termination and liquidation
does not occur proximate to a downturn in the financial health
of the Company;
	 
	 	(B)	 	The Company terminates and
liquidates all agreements, programs, and other arrangements that
would be aggregated under Treasury Regulation §1.409A-1(c) if
the Participant had deferrals of compensation under all of the
agreements, methods, programs, and other arrangements that are
terminated and liquidated;
	 
	 	(C)	 	No payments in liquidation of the
Plan are made within 12 months of the date the Company takes all
necessary action to irrevocably terminate and liquidate the plan
other than payments that would be payable under the terms of the
Plan if the action to terminate and liquidate the Plan had not
occurred;
	 
	 	(D)	 	All payments are made within 24
months of the date the Company takes all necessary action to
irrevocably terminate and liquidate the Plan; and
	 
	 	(E)	 	The Company does not adopt a new
plan or arrangement that would be aggregated with any terminated
and liquidated plan or arrangement under Treasury Regulation
§1.409A-1(c) if the same Participant participated in both plans
or arrangements, at any time within three years following the
date the Company takes all necessary action to irrevocably
terminate and liquidate the Plan.

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

ARTICLE VI

PLAN ADMINISTRATION

     6.1 Administration by the Committee. The Committee will be responsible for
administering the Plan. Except as the Company will otherwise expressly determine, the Committee
will be charged with the full power and the responsibility for administering the Plan in all its
details.

-12-

 

     6.2 Powers and Responsibilities of the Committee.

	 	(a)	 	The Committee will have all powers necessary to administer the
Plan, including the power to construe and interpret the Plan documents; to
decide all questions relating to an individual’s eligibility to participate in
the Plan; to determine whether a Participant has actually incurred a Separation
from Service; to determine the amount, manner and timing of any distribution of
benefits or withdrawal under the Plan; to resolve any claim for benefits in
accordance with Article VIII, and to appoint or employ advisors, including
legal counsel, to render advice with respect to any of the Committee’s
responsibilities under the Plan. Any construction, interpretation or
application of the Plan by the Committee will be final, conclusive and binding.
All actions by the Committee will be taken pursuant to uniform standards
applied to all persons similarly situated.
	 
	 	(b)	 	Records and Reports. The Committee will be responsible
for maintaining sufficient records to determine each Participant’s eligibility
to participate in the Plan, and the Compensation and Bonus Compensation of each
Participant for purposes of determining the amount of contributions that may be
made by or on behalf of the Participant under the Plan.
	 
	 	(c)	 	Rules and Decisions. The Committee may adopt such
rules as it deems necessary, desirable or appropriate in the administration of
the Plan. All rules and decisions of the Committee will be applied uniformly
and consistently to all Participants in similar circumstances. When making a
determination or calculation, the Committee will be entitled to rely upon
information furnished by a Participant or beneficiary(ies), the Employers or
the legal counsel of an Employer.
	 
	 	(d)	 	Application and Forms for Benefits. The Committee may
require a Participant or beneficiary to complete and file with it an
application for a benefit, and to furnish all pertinent information requested
by it. The Committee may rely upon all such information so furnished to it,
including the Participant’s or beneficiary’s current mailing address.

     6.3 Liabilities. The individual members of the Committee will be indemnified and held harmless by the
Employers with respect to any actual or alleged breach of responsibilities performed or to be
performed hereunder.

     6.4 Income and Employment Tax Withholding. The Employers will be responsible for
withholding from the Participant’s Compensation or Bonus Compensation or from the distribution of
his benefit under the Plan of all applicable federal, state, city and local taxes.

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ARTICLE VII

AMENDMENT AND TERMINATION OF THE PLAN

     7.1 Amendment of the Plan. The Company will have the right at any time to modify,
alter or amend the Plan in whole or in part, except that no amendment or suspension shall
retroactively impair or otherwise adversely affect (without written consent) the rights of a
Participant or beneficiary which have accrued prior to the date of such action.

     7.2 Termination of the Plan. The Company reserves the right at any time to terminate
the Plan or to reduce or cease benefit accruals at any time, except that no amendment or suspension
shall retroactively impair or otherwise adversely affect (without written consent) the rights of a
Participant or beneficiary which have accrued prior to the date of such action.

ARTICLE VIII

CLAIMS PROCEDURES

     8.1 Procedures Governing Benefit Claims. For purposes of the Plan, a “Benefit Claim”
means a request for a Plan benefit or benefits, made by a Claimant or by an authorized
representative of a Claimant, which complies with the Plan’s procedures for making benefit claims.
“Claimant” means a Participant, a surviving spouse of a Participant, a beneficiary, an Alternate
Payee or a personal representative of the Participant’s estate who is claiming entitlement to the
payment of any benefit under the Plan. “Alternate Payee” means any spouse, former spouse, child or
other dependent of a Participant who is recognized by a domestic relations order as having a right
to receive all, or a portion of, the benefits payable under the Plan with respect to such
Participant.

     8.2 Notification of Benefit Determinations. The Committee will notify a Claimant, in
accordance with Section 8.3, of the Plan’s benefit determination within a reasonable period of time
after a Participant’s Separation from Service or after the Committee’s receipt of a Benefit Claim,
but not later than 90 days after
receipt of the Benefit Claim by the Committee. 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.

     8.3 Manner and Content of Notification of Benefit Determinations. All notices given
by the Committee under this Article 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;

-14-

 

	 	(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; and
	 
	 	(d)	 	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 payable under the Plan.

     8.4 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 after receiving the determination.

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

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

     8.5 Benefit Determination on Review. All appeals by a Claimant of an Adverse Benefit
Determination will receive a full and fair review by the Board.

     8.6 Notification of Benefit Determination on Review. The Board will notify a
Claimant, in accordance with Section 8.7, of the Plan’s benefit determination on review within a
reasonable period of time, but not later than 60 days after the Plan’s receipt of the Claimant’s
request for review of an Adverse Benefit Determination. If, however, special circumstances require
an extension of time for processing the review by the Board, the Claimant will be notified, prior
to the termination of the initial 60 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 after receipt of a request for review.

-15-

 

     8.7 Manner and Content of Notification of Benefit Determination on Review. The Board
will provide a Claimant with notification of its benefit determination on review in the method
described in Section 8.3.

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

	 	(a)	 	The specific reasons for the adverse determination on review;
	 
	 	(b)	 	Reference to the specific Plan provisions (including any
internal rules, guidelines, protocols, criteria, etc.) on which the benefit
determination on review is based;
	 
	 	(c)	 	A statement that the Claimant is entitled to receive, upon
request and free of charge, reasonable access to, and copies of, all documents,
records and other information relevant to the Claimant’s Benefit Claim, without
regard to whether those records were considered or relied upon in making the
Adverse Benefit Determination on review, including any reports, and the
identities, of any experts whose advice was obtained.

     8.8 Court Action. No Participant or beneficiary will have the right to seek judicial
review of a denial of benefits, or to bring any action in any court to enforce a claim for
benefits, prior to filing a claim for benefits and exhausting his rights to review under this
Section.

ARTICLE IX

MISCELLANEOUS

     9.1 Governing Law. The Plan will be construed, regulated and administered according
to the laws of the State of Indiana, except in those areas preempted by the laws of the United
States of America in which case such laws will control.

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

     9.3 Participant’s Rights; Acquittance. No Participant will acquire any right to be
retained in an Employer’s employ by virtue of the Plan, nor, upon his Separation from Service, will
he have any right or interest in or to any Plan assets other than as specifically provided herein.

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

-16-

 

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

     9.6 No Enlargement of Employment Rights. Nothing contained in the Plan will be
construed as a contract of employment between an Employer and any person, nor will the Plan be
deemed to give any person the right to be retained in the employ of an Employer or limit the right
of an Employer to employ or discharge any person with or without cause, or to discipline any
Employee.

     9.7 Limitations on Liability. Notwithstanding any of the preceding provisions of the Plan, none of the Employer, the
Committee and each individual acting as an employee or agent of any of them will be liable to any
Participant, Employee, Alternate Payee or beneficiary(ies) for any claim (other than a claim for
benefits), loss, liability or expense incurred in connection with the Plan, except when the same
will have been judicially determined to be due to the gross negligence or willful misconduct of
such person.

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

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

     9.10 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.

     9.11 Action by Employer. Any action required of or permitted by an Employer under the
Plan will be by resolution of its board or, for the Company, by resolution of the Board or the
Committee or by a person or persons authorized by resolution of the Board or the Committee.

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

-17-

 

SIGNATURES

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

	 	 	 	 	 
	 	FIRST FINANCIAL CORPORATION

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

	 	 	 	 	 
	ATTEST:	 	 
	 
	 	 	 	 
	By:

	 	/s/ Michael A. Carty
 

Michael A. Carty, Secretary and Treasurer
	 	 

-18-exv10w6

 

Exhibit 10.6

FIRST FINANCIAL CORPORATION 2005

EXECUTIVES’ SUPPLEMENTAL RETIREMENT PLAN

Effective Date: January 1, 2005

Krieg DeVault LLP

One Indiana Square, Suite 2800

Indianapolis, IN 46204-2079

www.kriegdevault.com

 

 

FIRST FINANCIAL CORPORATION 2005

EXECUTIVES’ SUPPLEMENTAL RETIREMENT PLAN

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE	 	PAGE
	INTRODUCTION
	 	 	i	 
	 
	 	 	 	 
	Article I DEFINITIONS
	 	 	i	 
	 
	 	 	 	 
	1.1 “2005 EDCP”
	 	 	i	 
	1.2 “Board”
	 	 	i	 
	1.3 “Code”
	 	 	i	 
	1.4 “Committee”
	 	 	i	 
	1.5 “Company”
	 	 	i	 
	1.6 “Effective Date”
	 	 	i	 
	1.7 “Employee”
	 	 	i	 
	1.8 “Employer”
	 	 	i	 
	1.9 “ESOP”
	 	 	i	 
	1.10 “Frozen EDCP”
	 	 	i	 
	1.11 “Frozen ESRP”
	 	 	i	 
	1.12 “Key Employee”
	 	 	i	 
	1.13 “Participant”
	 	ii
	1.14 “Participant Benefit”
	 	ii
	1.15 “Pension Plan”
	 	ii
	1.16 “Plan”
	 	ii
	1.17 “Plan Year”
	 	ii
	1.18 “Separation from Service”
	 	ii
	 
	 	 	 	 
	Article II ELIGIBILITY AND PARTICIPATION
	 	iii
	 
	 	 	 	 
	Article III BENEFITS
	 	iii
	 
	 	 	 	 
	3.1 Amount of Benefit
	 	iii
	3.2 Sample Calculation of Benefit
	 	iv
	 
	 	 	 	 
	Article IV INVESTMENT OF CONTRIBUTIONS
	 	iv
	 
	 	 	 	 
	4.1 Investments
	 	iv
	4.2 Unsecured Contractual Rights
	 	iv
	 
	 	 	 	 
	Article V DISTRIBUTIONS
	 	iv
	 
	 	 	 	 
	5.1 Time of Payment of Benefits
	 	iv
	5.2 Method of Payment of Benefits
	 	 	v	 
	5.3 Benefit Payment Elections
	 	 	v	 
	5.4 Death of the Participant and Beneficiary Designation
	 	 	v	 
	5.5 Acceleration of Time of Payment
	 	vi

-i-

 

	 	 	 	 	 
	ARTICLE	 	PAGE
	Article VI PLAN ADMINISTRATION
	 	ix
	 
	 	 	 	 
	6.1 Administration by the Committee
	 	ix
	6.2 Powers and Responsibilities of the Committee
	 	ix
	6.3 Liabilities
	 	 	x	 
	6.4 Income and Employment Tax Withholding
	 	 	x	 
	 
	 	 	 	 
	Article VII AMENDMENT AND TERMINATION OF THE PLAN
	 	 	x	 
	 
	 	 	 	 
	7.1 Amendment of the Plan
	 	 	x	 
	7.2 Termination of the Plan
	 	 	x	 
	 
	 	 	 	 
	Article VIII CLAIMS PROCEDURES
	 	 	x	 
	 
	 	 	 	 
	8.1 Procedures Governing Benefit Claims
	 	 	x	 
	8.2 Notification of Benefit Determinations
	 	 	x	 
	8.3 Manner and Content of Notification of Benefit Determinations
	 	 	x	 
	8.4 Appeal of Adverse Benefit Determinations
	 	xi
	8.5 Benefit Determination on Review
	 	xi
	8.6 Notification of Benefit Determination on Review
	 	xi
	8.7 Manner
and Content of Notification of Benefit Determination on Review
	 	xii
	8.8 Court Action
	 	xii
	 
	 	 	 	 
	Article IX MISCELLANEOUS
	 	xii
	 
	 	 	 	 
	9.1 Governing Law
	 	xii
	9.2 Headings and Gender
	 	xii
	9.3 Participant’s Rights; Acquittance
	 	xiii
	9.4 Spendthrift Clause
	 	xiii
	9.5 Counterparts
	 	xiii
	9.6 No Enlargement of Employment Rights
	 	xiii
	9.7 Limitations on Liability
	 	xiii
	9.8 Incapacity of Participant or Beneficiary
	 	xiii
	9.9 Corporate Successors
	 	xiii
	9.10 Evidence
	 	xiii
	9.11 Action by Employer
	 	xiv
	9.12 Severability
	 	xiv
	 
	 	 	 	 
	SIGNATURES
	 	xiv
	 
	 	 	 	 
	APPENDIX A SAMPLE CALCUATION DESCRIPTION
	 	 	1	 

 -ii- 

 

 

INTRODUCTION

     The purpose of this Plan is to provide supplemental retirement benefits for a select group of
management or highly compensated Employees to help recompense the Employees for benefits lost due
to the imposition of Code limitations on benefits under the Company’s tax-qualified defined benefit
pension plan. It is the intention of the Employers that the Plan will constitute a deferred
compensation arrangement that complies with Code Section 409A and an unfunded arrangement
maintained for the purpose of providing deferred compensation for a select group of management or
highly compensated employees for federal income tax purposes and for purposes of Title I of the
Employee Retirement Income Security Act of 1974, as amended.

ARTICLE I

DEFINITIONS

     Whenever the initial letter of a word or phrase is capitalized herein, the following words and
phrases will have the meanings stated below unless a different meaning is plainly required by the
context:

     1.1 “2005 EDCP” means the First Financial Corporation 2005 Executives’ Deferred Compensation
Plan, that was originally effective January 1, 2005, as amended from time to time.

     1.2 “Board” means the Board of Directors of First Financial Corporation.

     1.3 “Code” means the Internal Revenue Code of 1986, as amended.

     1.4 “Committee” means the Compensation Committee of the Board.

     1.5 “Company” means First Financial Corporation.

     1.6 “Effective Date” means January 1, 2005.

     1.7 “Employee” means any individual who is employed by an Employer.

     1.8 “Employer” means the Company, First Financial Bank N.A. and any other entity First Financial
Corporation
allows to adopt and become a co-sponsor of the Plan.

     1.9 “ESOP” means the First Financial Corporation Employee Stock Ownership Plan, as amended
from time to time.

     1.10 “Frozen EDCP” means the First Financial Executive’s Deferred Compensation Plan that was
originally effective January 1, 1996, and frozen effective December 31, 2004.

     1.11 “Frozen ESRP” means the First Financial Executives’ Supplemental Retirement Plan that was
originally effective January 1, 1997, and frozen effective December 31, 2004.

     1.12 “Key Employee” means an Employee who is:

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

 -i- 

 

 

	 	(b)	 	A five-percent owner of the Company; or
	 
	 	(c)	 	A one-percent owner of the Company having an annual
compensation greater than $150,000.

The $140,000 amount in subsection 1.12(a) will be adjusted at the same time and in
the same manner as under Code Section 415(d), except that the base period will be
the calendar quarter beginning July 1, 2001, and any increase under this sentence
which is not a multiple of $5,000 will be rounded to the next lower multiple of
$5,000.

     1.13 “Participant” means a salaried executive Employee of an Employer who becomes a
Participant pursuant to the provisions of Article II of the Plan.

     1.14 “Participant Benefit” means the benefit payable to a Participant under the Plan.

     1.15 “Pension Plan” means the First Financial Corporation Employees’ Pension Plan, as amended
from time to time.

     1.16 “Plan”
means the deferred compensation plan embodied herein, as amended from time to time, known as
the First Financial Corporation 2005 Executives’ Supplemental Retirement Plan.

     1.17 “Plan Year” means the 12-month period beginning each January 1 and ending on the
following December 31.

     1.18 “Separation from Service” means the date on which the Participant dies, retires or
otherwise experiences a Termination of Employment with the Employer. Provided, however, a
Separation from Service does not occur if the Participant is on military leave, sick leave or other
bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so
long as the Participant retains a right to reemployment with the Employer under an applicable
statute or by contract. For purposes of this Section, a leave of absence constitutes a bona fide
leave of absence only if there is a reasonable expectation that the Participant will return to
perform services for the Employer. If the period of leave exceeds six months and the Participant
does not retain the right to reemployment under an applicable statute or by contract, the
employment relationship is deemed to terminate on the first date immediately following such
six-month period. Notwithstanding the foregoing, where a leave of absence is due to any medically
determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than six months, where such impairment causes
the Participant to be unable to perform the duties of his position of employment or any
substantially similar position of employment, a 29-month period of absence may be substituted for
such six-month period. The Participant shall incur a “Termination of Employment” for purposes of
this Section when a termination of employment has occurred under Treasury Regulation
1.409A-1(h)(ii).

 -ii- 

 

 

ARTICLE II

ELIGIBILITY AND PARTICIPATION

     A member of a select group of management or highly compensated Employees is eligible to become
a Participant in the Plan provided the Employee is designated as a Participant by the Board or the
Committee in writing. A designated Employee will become a Participant as of the later of the
Effective Date or the date specified by the Committee. A Participant may be removed as an active
Participant by the Committee effective as of any date, so that the Participant will not be entitled
to accrue additional benefits under the Plan on or after that date.

ARTICLE III

BENEFITS

     3.1 Amount of Benefit. The amount, if any, of the Participant Benefit payable to or
on account of a Participant pursuant to the Plan will, subject to subsection 5.5(a), equal the
excess of (a) less (b) less (c) less (d), adjusted for the factors in (e), as determined by the
Committee, where:

	 	(a)	 	is the Participant’s Normal Benefit (as defined by Section 3.1
of the
Pension Plan, but prior to reduction of such amount by the ESOP Monthly
Benefit, as also defined by the Pension Plan) that would otherwise be
payable to or on account of the Participant under the Pension Plan,
calculated as of the Participant’s Normal Retirement Date (as defined by
the Pension Plan) and ending on his death, on the basis of a “monthly
retirement income,” which is the normal form of payment (as defined by the
Pension Plan), determined as if the provisions of the Pension Plan were
administered without regard to the limitations imposed by Code Sections
401(a)(17) and 415. For purposes of determining the Normal Benefit under
this subsection (a), any salary deferral made by or on account of the
Participant under the Frozen EDCP or the 2005 EDCP from the definition of
compensation used to determine the Normal Benefit under the Pension Plan are
to be included as compensation; and
	 
	 	(b)	 	is the Participant’s Normal Benefit (as defined by the Pension
Plan, but prior to reduction of such amount by the ESOP Monthly Benefit, as
also defined by the Pension Plan) that is payable to or on account of the
Participant under the Pension Plan, calculated as of the Participant’s Normal
Retirement Date (as defined by the Pension Plan) and ending on his death, on
the basis of a monthly retirement income,” which is the normal form of payment
(as defined by the Pension Plan); and
	 
	 	(c)	 	is the Participant’s accrued benefit under the Frozen ESRP that
is payable to or on account of the Participant under the Frozen ESRP,
calculated as of the Participant’s Normal Retirement Date (as defined by the
Pension Plan) on the basis of a monthly retirement income, which is the normal
form of payment (as defined by the Pension Plan)(such Frozen ESRP benefit being

 -iii- 

 

 

	 	 	 	calculated in similar manner, but with such benefit accruals being frozen in
accordance with the Second Amendment to the Frozen ESRP; and
	 
	 	(d)	 	is the Participant’s Supplemental Benefit under Section 3.3 of
the 2005 EDCP, converted to a monthly annuity in the same manner as provided
for in the Pension Plan with regard to the Participant’s benefit under the
ESOP; and
	 
	 	(e)	 	the result of calculating subsection (a) less subsection (b)
less subsection (c) less subsection (d), above, will be adjusted by:

	 	(i)	 	applying the actuarial factors provided by the
Pension Plan, to reduce the Participant’s benefit for payments prior to
or after the Participant’s Normal Retirement Date (as defined by the
Pension Plan), if applicable; and
	 
	 	(ii)	 	applying the actuarial factors provided by the
Pension Plan, to convert the monthly retirement income to the form of
payment elected by the Participant pursuant to Section 5.3.

     3.2 Sample Calculation of Benefit.
A sample calculation of the amount payable under the Plan is provided in Appendix A.

ARTICLE IV

INVESTMENT OF CONTRIBUTIONS

     4.1 Investments. Contributions to fund the benefits that may become payable under the
Plan may be made to a so-called irrevocable “rabbi” trust established and maintained by the Company
to provide for the benefits created by this Plan. The amount of contributions to be made by the
Employers to the rabbi trust will be determined from time to time by the Committee in its sole
discretion. No provision of the Plan will impose or be deemed to impose any obligation upon the
Employers, other than an unsecured contractual obligation to make a cash payment to Participants
and their beneficiaries in accordance with the terms of the Plan. Benefits payable under the Plan
will be paid directly by the Employers from their general assets to the extent not paid from the
rabbi trust established by the Company.

     4.2 Unsecured Contractual Rights. The Plan at all times will be unfunded and will
constitute a mere promise by the Employers to make benefit payments in the future. Notwithstanding
any other provision of this Plan, neither a Participant nor his beneficiary will have any preferred
claim on, or any beneficial ownership interest in, any assets of the Employers prior to the time
benefits are paid as provided in Article V. All rights created under this Plan will be mere
unsecured contractual rights of the Participant against the Employers.

ARTICLE V

DISTRIBUTIONS

     5.1 Time of Payment of Benefits. Except as provided in Section 5.5, a Participant or
his beneficiary will receive or begin to receive payment of his Participant Benefit within 120

 -iv- 

 

 

days
after the Participant’s Separation from Service. If at the time of the Participant’s Separation
from Service, for any reason other than death, the Participant meets the definition of a Key
Employee at the time of the Participant’s Separation from Service, payment of all amounts under
this Section will be suspended for six months immediately following the date of his Separation from
Service for reasons other than death. Payment of any installments that the Participant was
otherwise entitled to receive during the six-month suspension period will be accumulated and paid
in the form of a lump sum on the first day following the six-month suspension period. The
remainder of the Participant’s Benefit will then commence distribution in the manner and at the
time elected by the Participant. If the Participant incurs a Separation from Service due to death,
regardless of whether the Participant meets the definition of a Key Employee, payment of his
Participant Benefit will not be suspended.

     5.2 Method of Payment of Benefits. Except as provided in Sections 5.4 and 5.5, a
Participant’s Benefit will be distributed in cash, in the number of installments effectively
elected by the Participant. Installments will be
payable at monthly, quarterly, semi-annual or annual intervals over a period not less than 3
years and not in excess of 20 years.

     5.3 Benefit Payment Elections.

	 	(a)	 	Initial Election. A Participant may elect the manner
in which his Participant Benefit under the Plan will be paid to him under
Section 5.2 in accordance with the terms and conditions of this Section. To
make an election a Participant must file an election with the Committee (on a
form or forms prescribed by the Committee). To be effective, the election
under this Section must be filed with the Committee no later than the later of:
(i) the time the Participant first begins participating in the Plan (or under
any other plan required to be aggregated with this Plan pursuant to the
requirements of Code Section 409A); or (ii) December 31, 2007. If no election
is made or if the election is not timely or properly made, distribution will be
made in the form of five annual installments.
	 
	 	(b)	 	Change of Election. An election as to the manner of
payment may not be changed after the payment has been made or installment
payments have commenced. Prior to that time, a Participant may change his
election by filing a new election form with the Committee; provided, however,
that: (i) the new election will not take effect until at least 12 months after
the date the new election is filed; (ii) the commencement of installment
payments with respect to which such election is made must be deferred for a
period of not less than five years from the date such payment would otherwise
have been made; and (iii) the new election is filed at least 12 months prior to
the date of the first scheduled payment under the Plan.

     5.4 Death of the Participant and Beneficiary Designation.

	 	(a)	 	Form and Time of Payment. In the event a Participant
dies prior to the time his Participant Benefit under the Plan is distributed,
his Participant Benefit will be paid to his designated beneficiary(ies) in five
annual

 -v- 

 

 

	 	  	 	installments. Such distribution will commence within 120 days of the
date of the Participant’s death. If the Participant dies after distribution of
his Participant Benefit has commenced, his remaining installments, if any, will
be paid to his designated beneficiary(ies).
	 
	 	(b)	 	Designation of Beneficiaries. The Participant may
designate a primary and contingent beneficiary(ies) to receive any amount
payable under subsection 5.4(a). Such designation may be changed at any time
for any reason by the Participant. If the Participant fails to designate a
beneficiary, or if such designation will for any reason be illegal or
ineffective, or if the designated beneficiary(ies) will not survive the
Participant, his Participant Benefit under the Plan will be paid: (i) to
his surviving spouse; (ii) if there is no surviving spouse, to the duly
appointed and qualified executor or other personal representative of the
Participant to be distributed in accordance with the Participant’s will or
applicable intestacy law; or (iii) in the event there is no such
representative appointed and qualified within 45 days after the
Participant’s death, then to such persons as, at the date of death, would be
entitled to share in the distribution of the Participant’s estate under the
provisions of the applicable statutes then in force governing the descent of
intestate property, in the proportions specified in such statute.

     5.5 Acceleration of Time of Payment. Except as provided in this Section, the schedule
of payment of a Participant’s Benefit provided in Sections 5.1 through 5.4 may not be accelerated.
The time of payment of a Participant’s Benefit may be accelerated in the following circumstances,
each of which is an “Acceleration Event,” to payment in a single lump sum at a time that is no
later than 60 days following the Committee’s determination that one of the Acceleration Events has
occurred:

	 	(a)	 	Domestic Relations Order. The time or schedule of a
payment of a Participant’s Benefit may be accelerated to make a payment to an
individual other than the Participant as may be necessary to fulfill a domestic
relations order (as defined in Code Section 414(p)(1)(B)).
	 
	 	(b)	 	Conflicts of Interest. The time or schedule of a
payment of a Participant’s Benefit may be accelerated to the extent reasonably
necessary to avoid the violation of an applicable Federal, state, local, or
foreign ethics law or conflicts of interest law (including where such payment
is reasonably necessary to permit the service provider to participate in
activities in the normal course of his or her position in which the service
provider would otherwise not be able to participate under an applicable rule).
A payment is reasonably necessary to avoid the violation of Federal, state,
local, or foreign ethics laws or conflicts of interest law if the payment is a
necessary part of a course of action that results in compliance with a Federal,
state, local, or foreign ethics law or conflicts of interest law that would be
violated absent such course of action, regardless of whether

 -vi- 

 

 

	 		 	other actions
would also result in compliance with the Federal, state, local, or foreign
ethics law or conflicts of interest law.
	 
	 	(c)	 	Payment of Employment Taxes. The time or schedule of a
payment of a Participant’s Benefit may be accelerated to pay the Federal
Insurance Contribution Act (“FICA”) tax imposed under Code Sections 3101,
3121(a) and 3121(v)(2) on compensation deferred under the Plan. Additionally,
the time or schedule of a payment of a Participant’s Benefit may be accelerated
under the Plan to pay the income tax at source on wages imposed under Code
Section 3401 or the corresponding withholding provisions of state, local or
foreign tax laws as a result of payment of the FICA amount, and to pay the
additional income tax at
source on wages attributable to the pyramiding section 3401 wages and taxes.
However, the total payment under this paragraph will not exceed the
aggregate of the FICA amount and the related income tax withholding on such
FICA amount.
	 
	 	(d)	 	Income Inclusion Under Code Section 409A. The time or
schedule of a payment of a Participant’s Benefit under the Plan may be
accelerated to pay the income tax, interest and penalties imposed if the Plan
fails to meet the requirements of Code Section 409A and related regulations;
provided, however, such payment will not exceed the amount required to be
included in income as a result of the failure to comply with the requirements
of Code Section 409A and related regulations.
	 
	 	(e)	 	Plan Termination. The time or schedule of payment or
commencement of payments from a Participant’s Benefit may be accelerated when
the Plan is terminated in accordance with one of the following and the
Participant’s Benefit is calculated as if the Participant Separated from
Service on the date of the Plan termination:

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

	 	A.	 	The calendar year in which the
Plan termination and liquidation occurs;
	 
	 	B.	 	The first calendar year in which
the amount is no longer subject to a substantial risk of
forfeiture; or
	 
	 	C.	 	The first calendar year in which
the payment is administratively practicable.

 -vii- 

 

 

	 	(ii)	 	The Company’s irrevocable action to terminate
and liquidate the Plan within the 30 days preceding or the 12 months
following a change in control (as defined in Treasury Regulation
1.409A-3(i)(5)). For purposes of this subsection 5.5(b), the Plan may
be terminated only if all agreements, methods, programs, and other
arrangements sponsored by the Employer immediately after the time of
the change in control with respect to which deferrals of compensation
are treated as having been deferred under a single plan under Treasury
Regulation 1.409A-1(c)(2) are terminated and liquidated with respect to
each Participant that experienced the change in control, so that under
the terms of the termination and liquidation all such Participants are
required to receive all amounts
of compensation deferred under the Plan and other arrangements within
12 months of the date the Company irrevocably takes all necessary
action to terminate and liquidate the Plan and other arrangements.
	 
	 	(iii)	 	The Company’s termination and liquidation of
the Plan, provided that:

	 	A.	 	The termination and liquidation
does not occur proximate to a downturn in the financial health
of the Company;
	 
	 	B.	 	The Company terminates and
liquidates all agreements, programs, and other arrangements that
would be aggregated under Treasury Regulation §1.409A-1(c) if
the Participant had deferrals of compensation under all of the
agreements, methods, programs, and other arrangements that are
terminated and liquidated;
	 
	 	C.	 	No payments in liquidation of the
Plan are made within 12 months of the date the Company takes all
necessary action to irrevocably terminate and liquidate the plan
other than payments that would be payable under the terms of the
Plan if the action to terminate and liquidate the Plan had not
occurred;
	 
	 	D.	 	All payments are made within 24
months of the date the Company takes all necessary action to
irrevocably terminate and liquidate the Plan; and
	 
	 	E.	 	The Company does not adopt a new
plan or arrangement that would be aggregated with any terminated
and liquidated plan or arrangement under Treasury Regulation
§1.409A-1(c) if the same Participant participated in both plans
or arrangements, at any time within three years following the
date the Company takes all necessary action

 -viii- 

 

 

to irrevocably
terminate and liquidate the Plan.

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

ARTICLE VI

PLAN ADMINISTRATION

     6.1 Administration by the Committee. The Committee will be responsible for
administering the Plan. Except as the Company will otherwise expressly determine, the Committee
will be charged with the full power and the responsibility for administering the Plan in all its
details.

     6.2 Powers and Responsibilities of the Committee.

	 	(a)	 	The Committee will have all powers necessary to administer the
Plan, including the power to construe and interpret the Plan documents; to
decide all questions relating to an individual’s eligibility to participate in
the Plan; to determine whether a Participant has actually retired; to determine
the amount, manner and timing of any distribution of benefits or withdrawal
under the Plan; to resolve any claim for benefits in accordance with Article
VIII, and to appoint or employ advisors, including legal counsel, to render
advice with respect to any of the Committee’s responsibilities under the Plan.
Any construction, interpretation or application of the Plan by the Committee
will be final, conclusive and binding. All actions by the Committee will be
taken pursuant to uniform standards applied to all persons similarly situated.
	 
	 	(b)	 	Records and Reports. The Committee will be responsible
for maintaining sufficient records to determine each Participant’s eligibility
to participate in the Plan.
	 
	 	(c)	 	Rules and Decisions. The Committee may adopt such
rules as it deems necessary, desirable or appropriate in the administration of
the Plan. All rules and decisions of the Committee will be applied uniformly
and consistently to all Participants in similar circumstances. When making a
determination or calculation, the Committee will be entitled to rely upon
information furnished by a Participant or beneficiary, the Employers or the
legal counsel of an Employer.
	 
	 	(d)	 	Application and Forms for Benefits. The Committee may
require a Participant or beneficiary to complete and file with it an
application for a benefit, and to furnish all pertinent information requested
by it. The Committee may rely upon all such information so furnished to it,
including the Participant’s or beneficiary’s current mailing address.

-ix-

 

     6.3 Liabilities. The individual members of the Committee will be indemnified and held
harmless by the Employers with respect to any actual or alleged breach of responsibilities
performed or to be performed hereunder.

     6.4 Income and Employment Tax Withholding. The Employers will be responsible for
withholding, and the Participant and each beneficiary will agree to such withholdings from the
distribution of his Participant Benefit under the Plan of all applicable federal, state, city and
local taxes.

ARTICLE VII

AMENDMENT AND TERMINATION OF THE PLAN

     7.1 Amendment of the Plan. The Company will have the right at any time to modify,
alter or amend the Plan in whole or in part, except that no amendment or suspension shall
retroactively impair or otherwise adversely affect (without written consent) the rights of a
Participant or beneficiary which have accrued prior to the date of such action.

     7.2 Termination of the Plan. The Company reserves the right at any time to terminate
the Plan or to reduce or cease benefit accruals at any time, except that no amendment or suspension
shall retroactively impair or otherwise adversely affect (without written consent) the rights of a
Participant or beneficiary which have accrued prior to the date of such action.

ARTICLE VIII

CLAIMS PROCEDURES

     8.1 Procedures Governing Benefit Claims. For purposes of the Plan, a “Benefit Claim”
means a request for a Plan benefit or benefits, made by a Claimant or by an authorized
representative of a Claimant, which complies with the Plan’s procedures for making benefit claims.
“Claimant” means a Participant, a surviving spouse of a Participant, a beneficiary, an Alternate
Payee or a personal representative of the Participant’s estate who is claiming entitlement to the
payment of any benefit under the Plan. “Alternate Payee” means any spouse, former spouse, child or
other dependent of a Participant who is recognized by a domestic relations order as having a right
to receive all, or a portion of, the Participant Benefits payable under the Plan with respect to
such Participant.

     8.2 Notification of Benefit Determinations. The Committee will notify a Claimant, in
accordance with Section 8.3, of the Plan’s benefit determination within a reasonable period of time
after a Separation from Service or after the Committee’s receipt of a Benefit Claim, but not later
than 90 days after receipt of the Benefit Claim by the Committee. 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.

     8.3 Manner and Content of Notification of Benefit Determinations. All notices given
by the Committee under this Article will be given to a Claimant, or to his authorized

 -x- 

 

 

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), (ii), (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; and
	 
	 	(d)	 	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 payable under the Plan.

     8.4
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 after receiving the determination.

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

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

     8.5 Benefit Determination on Review. All appeals by a Claimant of an Adverse Benefit
Determination will receive a full and fair review by the Board.

     8.6 Notification of Benefit Determination on Review. The Board will notify a
Claimant, in accordance with Section 8.7, of the Plan’s benefit determination on review within a

 -xi- 

 

 

reasonable period of time, but not later than 60 days 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 named
fiduciary, the Claimant will be notified, prior to the termination of the initial 60 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 after receipt of
a request for review. Provided, however, in the case of a Plan with a committee or other group
designated as the appropriate named fiduciary that holds regularly scheduled meetings at least
quarterly, the time limit of this subsection will be modified in accordance with 29 CFR
2560.503-1(i)(1)(ii) or 29 CFR 2560.503-1(i)(3)(ii), whichever is applicable.

     8.7 Manner and Content of Notification of Benefit Determination on Review. The Board
will provide a Claimant with notification of its benefit determination on review in a method
described in Section 8.3.

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

	 	(a)	 	The specific reasons for the adverse determination on review;
	 
	 	(b)	 	Reference to the specific Plan provisions (including any
internal rules, guidelines, protocols, criteria, etc.) on which the benefit
determination on review is based;
	 
	 	(c)	 	A statement that the Claimant is entitled to receive, upon
request and free of charge, reasonable access to, and copies of, all documents,
records and other information relevant to the Claimant’s Benefit Claim, without
regard to whether those records were considered or relied upon in making the
Adverse Benefit Determination on review, including any reports, and the
identities, of any experts whose advice was obtained.

     8.8 Court Action. No Participant or beneficiary will have the right to seek judicial
review of a denial of benefits, or to bring any action in any court to enforce a claim for
benefits, prior to filing a claim for benefits and exhausting his rights to review under this
Section.

ARTICLE IX

MISCELLANEOUS

     9.1 Governing Law. The Plan will be construed, regulated and administered according
to the laws of the State of Indiana, except in those areas preempted by the laws of the United
States of America in which case such laws will control.

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

 -xii- 

 

 

     9.3 Participant’s Rights; Acquittance. No Participant will acquire any right to be
retained in an Employer’s employ by virtue of the Plan, nor, upon his dismissal, or upon his
voluntary termination of employment, will he have any right or interest in or to any Plan assets
other than as specifically provided herein.

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

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

     9.6 No Enlargement of Employment Rights. Nothing contained in the Plan will be
construed as a contract of employment between an Employer and any person, nor will the Plan be
deemed to give any person the right to be retained in the employ of an Employer or limit the right
of an Employer to employ or discharge any person with or without cause, or to discipline any
Employee.

     9.7 Limitations on Liability. Notwithstanding any of the preceding provisions of the
Plan, none of the Employers, the Committee and each individual acting as an employee or agent of
any of them will be liable to any Participant, Employee or beneficiary for any claim (other than a
claim for the Participant’s benefit), loss, liability or expense incurred in connection with the
Plan, except when the same will have been judicially determined to be due to the gross negligence
or willful misconduct of such person.

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

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

     9.10 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.

 -xiii- 

 

 

     9.11 Action by Employer. Any action required of or permitted by an Employer under the
Plan will be by resolution of its board or, for the Company, by resolution of the Board or the
Committee or by a person or persons authorized by resolution of the Board or the Committee.

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

SIGNATURES

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

	 	 	 	 	 
	 	FIRST FINANCIAL CORPORATION

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

ATTEST:

	 	 	 	 	 
	By:

	 	/s/ Michael A. Carty	 	 
	 

	 	 

Michael A. Carty, Secretary/Treasurer
	 	 

 -xiv- 

 

 

APPENDIX A

SAMPLE CALCULATION DESCRIPTION

	 	 	 
	Item 1.

	 	Determine the vested Normal Benefit payable to the
Participant under the Pension Plan, calculated as of the
Participant’s Normal Retirement Date on the basis of the
normal form of payment as defined in the Pension Plan
(monthly retirement income) without taking into account the
offset by the Participant’s ESOP Monthly Benefit, and without
regard to the limitations imposed by Code Sections 401(a)(17)
and 415 and including deferrals to the Frozen EDCP and 2005
EDCP as compensation.
	 
	 	 
	Item 2.

	 	Determine the vested Normal Benefit payable to the
Participant under the Pension Plan, calculated as of the
Participant’s Normal Retirement Date, on the basis of the
normal form of payment as defined in the Pension Plan
(monthly retirement income) without taking into account the
offset by the Participant’s ESOP Monthly Benefit (as defined
in Section 3.6 of the Pension Plan).
	 
	 	 
	Item 3.

	 	Subtract Item 2 from Item 1 to determine the amount of the
monthly retirement income benefit that is not payable to the
Participant under the Pension Plan due to the restrictions
imposed by the Code.
	 
	 	 
	Item 4.

	 	Determine the unadjusted monthly benefit that would be
payable to the Participant under the Frozen ESRP.
	 
	 	 
	Item 5.

	 	Subtract Item 4 from Item 3.
	 
	 	 
	Item 6.

	 	Determine the Participant’s Supplemental Benefit payable due
to contributions under Section 3.3 of the 2005 EDCP and
earnings thereon and convert it to a monthly annuity in the
same manner as provided for in the Pension Plan with regard
to the Participant’s benefit under the ESOP.
	 
	 	 
	Item 7.

	 	Subtract Item 6 from Item 5 to determine the unadjusted
benefit payable under this Plan.
	 
	 	 
	Item 8.

	 	Adjust the amounts determined in Item 7 by the actuarial
adjustments provided in the Pension Plan to convert the
monthly retirement income to the form of benefit elected by
the Participant and to adjust for payments prior to or after
the Participant’s Normal Retirement Date, if applicable.

1

 

Sample Payment of Benefit Calculation

	 	 	 	 	 	 	 
	 	 	Pension Payments Exceed ESOP Payments	 	 	 	 
	Item 1	 	Calculate Pension Plan Monthly Benefit without Code Limits
	 	$	 	 
	 	 	 
	 	 	 	 
	Item 2	 	Calculate Pension Plan Monthly Benefit with normal limits under the Code
	 	$	 	 
	 	 	 
	 	 	 	 
	Item 3	 	Subtract Item 2 from Item 1
	 	$	 	 
	 	 	 
	 	 	 	 
	Item 4	 	Calculate the benefit payable under the frozen ESRP
	 	$	 	 
	 	 	 
	 	 	 	 
	Item 5	 	Subtract Item 4 from Item 3
	 	$	 	 
	 	 	 
	 	 	 	 
	Item 6	 	Calculate the unadjusted monthly benefit payable under the 2005 EDCP
	 	$	 	 
	 	 	 
	 	 	 	 
	Item 7	 	Subtract Item 6 from Item 5
	 	$	 	 
	 	 	 
	 	 	 	 
	Item 8	 	Adjust Item 7 by the actuarial factors provided by the Pension Plan to convert the monthly retirement income to the form of benefit selected by the Participant and to adjust for payments received prior to or after Normal Retirement Date.
	 	$	 	 
	 	 	 
	 	 	 	 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]