FIRST FINANCIAL CORP /IN/ 8-K

What Happened
First Financial Corporation (THFF) filed an 8‑K (Item 5.02) disclosing a new employment agreement with President and CEO Norman D. Lowery, effective July 1, 2026. The agreement establishes an initial 24‑month term and sets Mr. Lowery’s annual base salary at $698,987, with eligibility for bonuses and standard executive benefits.

Key Details

• Effective date: July 1, 2026; initial term: 24 months; Compensation Committee may extend the term by one additional year.
• Base salary: $698,987 annually; eligible to participate in bonus and fringe benefit plans available to other executives.
• Termination pay: If terminated without “just cause” or if he leaves for “good reason” (outside 12 months after a change in control), he would receive salary and bonuses through the remainder of the term plus cash reimbursements for benefits.
• Change‑in‑control protection: If terminated within 12 months after a change in control, payout is the greater of the above or 2.99× the sum of (i) base salary at change in control, (ii) prior‑year bonuses, and (iii) three years of benefit reimbursements.
• Other provisions: confidentiality, non‑solicit, and a one‑year non‑compete within 75 miles of Terre Haute (50 miles if separation is without just cause or for good reason). Payments may be delayed up to six months if he is a “key employee”; Section 280G/Golden Parachute rules may reduce or adjust change‑in‑control payments.

Why It Matters
This filing confirms continuity of leadership by formally extending and clarifying compensation and severance terms for the company’s CEO. Investors should note the fixed salary level, enhanced protection on a change in control (including a near‑3× multiplier), and potential cash obligations if Mr. Lowery’s employment is terminated or a change in control occurs. These provisions can affect executive retention incentives and create potential near‑term or contingent payout obligations that may be relevant for governance and compensation oversight. The full employment agreement is filed as Exhibit 10.1 to the 8‑K for anyone seeking the complete legal terms.