Document:

EX-10(W)

 

Exhibit 10(w)

AGREEMENT TO JOIN IN THE FILING OF

CONSOLIDATED FEDERAL INCOME TAX RETURNS

     This agreement (the “Agreement”) is made and entered into this 27 day of February, 2001,
between LNB Bancorp, Inc. (the “Holding Company”), and The Lorain National Bank and Charleston
Insurance Agency, Inc. (the “Subsidiaries”).

     WITNESSETH:

     WHEREAS, the Holding Company is the owner of 80% or more of the outstanding shares of stock of
these Subsidiaries and may, therefore, include the income and expense of the Subsidiaries in the
Holding Company’s consolidated Federal income tax returns; and

     WHEREAS, the parties desire to set forth their agreement as to the filing of such returns and
the payment of the related consolidated Federal income tax liability;

     NOW, THEREFORE, in consideration of the initial agreements herein set forth, the parties
hereto do hereby agree as follows:

     1. Filing and Preparation of Future Returns. The Subsidiaries agree to consent to
joining with the Holding Company and its consolidated subsidiaries in the filing of consolidated
Federal income tax returns for the taxable year ending December 31, 2001 and each taxable year
thereafter in accordance with applicable income tax laws and regulations. The Holding Company
agrees that it will prepare and file in a timely manner all Federal and other income tax returns
required to be filed on behalf of the Holding Company and its consolidated subsidiaries, including
the Subsidiaries, and will pay the taxes shown to be due thereon.

     2. Estimated Payments. For the taxable year ending December 31, 2001 and each taxable
year thereafter, the parties shall cause to be prepared, on the Subsidiaries’ tax basis of
accounting, a computation of the minimum estimated quarterly income tax payments which would be
required to be paid by the Subsidiaries if it were to report its income and expenses to the
Internal Revenue Service as a separate entity and avoid the imposition of an addition to its tax
for underpayment of estimated income tax payments. The Subsidiary shall pay to the Holding Company
an amount equal to each such estimated income tax payment on the date on which the Subsidiaries
would have been required to make such estimated income tax payment if it were reporting to the
Internal Revenue Service as a separate entity. Such payments shall be made to the Holding Company
irrespective of whether or not the Holding Company shall have any liability for estimated income
tax payments with respect to any

 

 

such period.

	 	3.	 	Year End Taxes

	 	a.	 	For the taxable year ending December 31, 2001 and every taxable year
thereafter, the parties shall cause to be prepared, on the Subsidiaries’ tax basis
of accounting, a computation of the Federal income tax liability for such year of
the Subsidiaries as if the Subsidiaries were reporting its income and expenses to
the Internal Revenue Service as a separate entity.
	 
	 	b.	 	The Subsidiaries shall pay to the Holding Company an amount equal to
the income tax liability computed under paragraph 3(a) above, reduced by the amount
of any credits attributable to the assets or operations of the Subsidiaries and
further reduced by the amount of any estimated tax payments made to the Holding
Company under the provisions of paragraph 2 above.
	 
	 	c.	 	In the event the computation of the Subsidiaries’ income tax liability
under paragraph 3(a) above shall reflect that the Subsidiaries incurred a loss for
any year, and that the Subsidiaries would have been due a Federal income tax refund
as a result of certain loss carry-back provisions of the Internal Revenue Code,
then the Holding Company shall pay to the Subsidiaries an amount equal to such
hypothetical income tax refund plus the amount of any estimated tax payments for
such year made by the Subsidiaries to the Holding Company; provided, however, in no
event shall the Holding Company be required to make any payment hereunder in excess
of the aggregate of all payments made by the Subsidiaries to the Holding Company
under paragraphs 2 and 3(a) hereof.
	 
	 	d.	 	Payments required under paragraph 3(b) or paragraph 3(c) above shall be
made on the date on which the Subsidiaries would have been required to make a final
income tax payment with respect to such year on the assumption that the
Subsidiaries would have had income tax liability for such year.

	 	4.	 	Other Income Taxes. In the event there shall be imposed on the
Subsidiaries any state or local tax based on net income to which the principles of
consolidated income taxation such as those presently in effect under Federal income tax
rules may be applied and practical, the Subsidiary and the Holding Company agree that
the above agreements shall also be applicable with respect to such state or local income
taxes.

 

 

     5. Deferred Taxes. The Subsidiaries will not transfer to the Holding Company it’s
deferred tax liabilities along with the cash or earning assets to pay these liabilities, prior to
the reversal of the timing differences generating the deferrals.

     6. Termination. This Agreement shall continue in effect until terminated by mutual
agreement of the parties and supersedes any and all prior agreements, written or oral, concerning
the subject matter thereof.

     7. Amendment. This Agreement is intended to comply with all rules and regulations
pertaining to Financial Holding Companies and related Subsidiaries and in the event the Federal
Reserve Board or other regulatory agency shall promulgate rules and regulations that affect this
Agreement, then this Agreement shall automatically be amended to conform to such rules and
regulations and such amendments shall be submitted to the respective boards for ratification.

     IN WITNESS WHEREOF, we have executed this Agreement this 27th day of February 2001.

	 	 	 	 	 
	 	 	FOR: LNB BANCORP, INC.
	 
	 	 	 	 
	 

	 	BY:	 	 /s/
Gary C. Smith
	 

	 	 	 	 
	 

	 	 	 	Gary C. Smith
	 

	 	 	 	President and
	 

	 	 	 	Chief Executive Officer
	 
	 	 	 	 
	 	 	FOR: THE LORAIN NATIONAL BANK
	 
	 	 	 	 
	 

	 	BY:	 	 /s/ Thomas P. Ryan
	 

	 	 	 	 
	 

	 	 	 	Thomas P. Ryan
	 

	 	 	 	Executive Vice President
	 
	 	 	 	 
	 	 	FOR: CHARLESTON INSURANCE AGENCY, INC.
	 
	 	 	 	 
	 

	 	BY:	 	 /s/ Thomas P. Ryan
	 

	 	 	 	 
	 

	 	 	 	Thomas P. Ryan
	 

	 	 	 	President and
	 

	 	 	 	Chief Executive OfficerEX-10.27

 

EXHIBIT 10.27

SEVERANCE AGREEMENT AND RELEASE

          The following is an agreement between C. Thomas Murrell III (“Mr. Murrell”) and First
Financial Bancorp (“FFBC”) regarding Mr. Murrell’s termination from employment.

     WHEREAS, Mr. Murrell is a party to an Employment Agreement with FFBC effective April 30, 2005,
(hereinafter “Employment Agreement”,) and FFBC is terminating his employment pursuant to Section
4(a) of the Employment Agreement; and

     WHEREAS, the parties desire to resolve all issues related to Mr. Murrell’s employment with
FFBC, his Employment Agreement and his termination; and

     NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement, FFBC and
Mr. Murrell agree as follows:

     1. Pursuant to the Employment Agreement, FFBC gave Mr. Murrell one month’s advance written
notice of termination on November 4, 2005 (the “Notice Period”). Accordingly, Mr. Murrell’s
employment with FFBC will end effective December 4, 2005 (the “Date of Termination”). During the
Notice Period Mr. Murrell shall not report to work, but shall be available to assist with the
transfer of his responsibilities and take such actions as are necessary to assure a smooth
transition.

     2. FFBC will pay Mr. Murrell all salary due through his Date of Termination and will also pay
him a lump sum payment of earned and accrued, banked and/or carryover vacation pay due under
FFBC’s vacation policy, payable at the rate of Mr. Murrell’s current base salary, less appropriate
tax withholdings and deductions.

     3. Severance Benefits. Provided Mr. Murrell fulfills his obligations hereunder, FFBC
will provide him with the following Severance benefits:

          (a) Severance Pay. (i) FFBC will provide Mr. Murrell with severance pay in an amount
equal to his 24 months of his current base pay, payable in equal bi-weekly installments, less
applicable deductions and withholding, commencing after the Date of Termination and ending on or
before March 15, 2006; and (ii) FFBC will pay him a lump sum payment of One Hundred Two Thousand,
Five Hundred Sixty Thousand Dollars and No Cents ($102,560.00) (an amount equal to two (2) times
Mr. Murrell’s most recent payment under the Performance Incentive Plan).

          (b) Employment Benefits. FFBC will continue Mr. Murrell’s Employment Benefits, as
defined in the Employment Agreement, through December 4, 2007, subject to the rights and
limitations specified in the Employment Agreement. Mr. Murrell shall qualify for full COBRA health
benefit continuation coverage thereafter, unless otherwise prohibited by law.

 

 

          (c) Pay in Lieu of Outplacement Services. FFBC will pay to Mr. Murrell in lieu of
outplacement services an amount equal to five percent (5%) of his annual base salary.

     4. Mr. Murrell’s Obligations. In consideration of the payments and benefits provided
in Section 3 above, Mr. Murrell will:

          (a) transfer his responsibilities in an appropriate manner and take such actions as are
necessary to assure a smooth transition;

          (b) not represent or bind FFBC or enter into any agreement on behalf of FFBC at any time after
November 4, 2005;

          (c) return to FFBC on November 4, 2005 all FFBC property and materials, including but not
limited to credit cards, office keys, files, books, documents, records and memoranda;

          (d) return to FFBC his company car and cell phone no later than the Date of Termination. Mr.
Murrell will also file a final expense report and repay outstanding cash advances no later than the
Date of Termination, if he has any unreimbursed expenses or unpaid advances;

          (e) not use or disclose, directly or indirectly, to anyone not connected with FFBC any
confidential, commercial or financial information, or trade or business secrets obtained during the
term of employment, or make copies of any memoranda, books, records, customer lists, price lists or
other documents (whether on computer or not) for use outside FFBC, except as specifically
authorized in writing by an officer of FFBC, or as may be required by applicable law;

          (f) fully cooperate and assist FFBC with any litigation matters or agency proceedings for
which his testimony or cooperation is requested, provided that he is compensated for his time at
his current rate of pay and for any reasonable and necessary expenses incurred as a result of his
cooperation and assistance;

          (g) sign all necessary resignations from the Boards of Directors and/or officer positions of
FFBC and its subsidiaries; and

          (h) not solicit or directly or indirectly interfere with or disrupt, or attempt to interfere
with or disrupt, any relationship, contractual or otherwise, between FFBC and any third party,
including but not limited to its employees, customers, and community members.

     5. Confidentiality. Mr. Murrell acknowledges he is bound by the provisions concerning
confidentiality and a covenant not to compete for a six month time period set forth in paragraph 8
and 10 of the Employment Agreement, with the exception that FFBC agrees to waive the covenant not
to compete (but not confidentiality) with respect to Commonwealth Bank and Trust, located in
Louisville, Kentucky. Mr. Murrell will hold in confidence, and will not disclose to anyone, any of
the terms of Severance other than

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immediate family members and advisors, except as required by law. Mr. Murrell acknowledges
that FFBC may be required to disclose certain terms of this Agreement in filings with the
Securities and Exchange Commission. Such partial disclosure should in no way be interpreted as a
waiver of the remaining terms of this Section. Mr. Murrell shall not make any public derogatory
remarks concerning FFBC or any of its officers, directors, employees or shareholders, and shall not
initiate any contact with the press or any other media.

     6. General Release. In exchange for the payments and benefits identified in the
Agreement, Mr. Murrell hereby releases, settles and forever discharges FFBC, its parent,
subsidiaries, affiliates, successors and assigns, together with their past and present directors,
officers, employees, agents, insurers, attorneys, and any other party associated with FFBC, to the
fullest extent permitted by applicable law, from any and all claims, causes of action, rights,
demands, debts, liens, liabilities or damages of whatever nature, whether known or unknown,
suspected or unsuspected, which Mr. Murrell ever had or may now have against FFBC or any of the
foregoing. This includes, without limitation, any claims, liens, demands, or liabilities arising
out of or in any way connected with Mr. Murrell’s employment with FFBC and the termination of that
employment, pursuant to any federal, state or local laws regulating employment such as the Civil
Rights Act of 1964, the Civil Rights of 1991, the Americans with Disabilities Act of 1990, the
Family and Medical Leave Act of 1993, the Civil Rights Act known as 42 USC 1981, the Employee
Retirement Income Security Act of 1974 (“ERISA”), the Worker Adjustment and Retraining Notification
Act (“WARN”), the Fair Labor Standards Act of 1938, as well as all federal, state and local laws,
except that this release shall not affect any rights of Mr. Murrell for benefits payable under any
FFBC benefit plans, Social Security, Worker’s Compensation or Unemployment laws or rights arising
out of any breach of this Agreement by FFBC.

     7. Waiver and Release Under ADEA and OWBPA. Mr. Murrell further expressly and
specifically waives any and all rights or claims under the Age Discrimination in Employment Act of
1967 and the Older Workers Benefit Protection Act (collectively the “Act”). Mr. Murrell
acknowledges and agrees that this waiver of any right or claim under the Act (the “Waiver”) is
knowing and voluntary, and specifically agrees as follows: (a) that this Agreement and this Waiver
is written in a manner which he understands; (b) that this Waiver specifically relates to rights or
claims under the Act; (c) that he does not waive any rights or claims under the Act that may arise
after the date of execution of this Agreement; (d) that he waives rights or claims under the Act in
exchange for consideration in addition to anything of value to which he is already entitled; and
(e) that he is hereby advised in writing to consult with an attorney prior to executing this
Agreement.

     8. It is understood and agreed that for purposes of this Agreement, the term “FFBC” as used
herein, shall include not only First Financial Bancorp, but also all of its direct or indirect
subsidiaries or affiliated companies, including but not limited to First Financial Bank, N.A.,
First Financial Capital Advisors, LLC, First Financial Insurance, and all officers, directors, and
employees of any of the foregoing.

     9. This Agreement shall bind Mr. Murrell’s heirs, executors, administrators, personal
representatives, spouse, dependents, successors and assigns.

Page 3 of 5

 

     10. This Agreement shall not be construed as an admission by FFBC of any wrongdoing or any
violation of any federal, state or local law, regulation or ordinance, and FFBC specifically
disclaims any wrongdoing whatsoever against Mr. Murrell on the part of itself, its employees,
representatives or agents.

     11. Neither this Agreement, nor any right or interest hereunder, shall be assignable by Mr.
Murrell, his beneficiaries or legal representatives, without the prior written consent of an
officer of FFBC.

     12. This Agreement sets forth the entire agreement between the parties with the exception of
any obligations under the Employment Agreement which continue after Mr. Murrell’s termination, and
any other previous Agreement(s) regarding confidentiality, non-solicitation and non-competition.
The terms of this Agreement may not be modified other than in a writing signed by the parties.

     13. This Agreement shall in all respects be interpreted, enforced and governed by the laws of
the State of Ohio. All parties to this Agreement agree they are bound by the arbitration provision
set forth in Paragraph 7 of the Employment Agreement, in interpreting any disputes concerning the
Agreement or otherwise arising from Mr. Murrell’s employment with FFBC.

     14. If any provision of this Agreement is determined to be unenforceable by any court, then
such provision will be modified or omitted to the extent necessary to make the remaining provisions
of this Agreement enforceable.

     15. Mr. Murrell acknowledges that he understands that he has forty-five (45) days after
receipt of this Agreement to decide whether to accept it and that he may revoke any acceptance of
this Agreement within (7) days of such acceptance. This Agreement shall not become effective until
the seven (7) day revocation period has expired.

TAKE THIS AGREEMENT HOME, READ IT AND CAREFULLY CONSIDER ALL OF ITS
PROVISIONS BEFORE SIGNING IT. IT INCLUDES A RELEASE OF KNOWN AND
UNKNOWN CLAIMS.

IN WITNESS WHEREOF, FFBC hereby offers this Agreement to
Mr. Murrell on this 30th day of November, 2005.

	 	 	 	 	 
	 	FIRST FINANCIAL BANCORP

 	 
	 	By:  	/s/ Regina P. Brackett
 	 
	 	 	 	 
	 	 	 	 

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     ACCEPTANCE

I hereby agree to the terms of this Agreement and
acknowledge my acceptance of it this 4 day of December,
2005.

WITNESS:

	 	 	 	 	 	 
	 	 	 	 
	 	 	/s/ C. Thomas Murrell, III
 	 
	 	 	C. Thomas Murrell III 	 
	 	 	 	 

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