Document:

EX-10.19

 

EXHIBIT 10.19

FIRST FINANCIAL BANCORP

AMENDED AND RESTATED SEVERANCE PAY PLAN

Approved & Effective – April 1, 2005

Approved February 1, 2006

Approved January 1, 2007

Approved April 28, 2008

 

 

Contents

	 	 	 	 	 
	 	 	Page	 
	Section 1. Eligibility
	 	 	1	 
	 
	 	 	 	 
	(a) In General
	 	 	1	 
	(b) Exclusions
	 	 	1	 
	 
	 	 	 	 
	Section 2. Participation
	 	 	1	 
	 
	 	 	 	 
	(a) Involuntary Separation Requirement
	 	 	1	 
	(b) Release Requirements
	 	 	1	 
	 
	 	 	 	 
	Section 3. Ineligibility for Benefits
	 	 	1	 
	 
	 	 	 	 
	(a) Resignation or Discharge
	 	 	1	 
	(b) Changed Decisions
	 	 	2	 
	(c) Substitute Employment
	 	 	2	 
	(d) Transition Assistance
	 	 	2	 
	 
	 	 	 	 
	Section 4. Severance Pay
	 	 	2	 
	 
	 	 	 	 
	(a) Amount
	 	 	2	 
	(b) Definitions
	 	 	3	 
	 
	 	 	 	 
	Section 5. Payment
	 	 	3	 
	 
	 	 	 	 
	(a) Form of Payment
	 	 	3	 
	(b) Time of Payment
	 	 	3	 
	 
	 	 	 	 
	Section 6. Additional Benefits
	 	 	4	 
	 
	 	 	 	 
	Section 7. Integration with Other Payments
	 	 	4	 
	 
	 	 	 	 
	Section 8. Reemployment
	 	 	4	 
	 
	 	 	 	 
	Section 9. Taxes
	 	 	4	 
	 
	 	 	 	 
	Section 10. Relation to Other Plans
	 	 	4	 
	 
	 	 	 	 
	Section 11. Amendment or Termination
	 	 	5	 
	 
	 	 	 	 
	Section 12. Claims Procedures
	 	 	5	 
	 
	 	 	 	 
	(a) Claims Normally Not Required
	 	 	5	 
	(b) Disputes
	 	 	5	 
	(c) Time for Filing Claims
	 	 	5	 
	(d) Procedures
	 	 	5	 

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	 	 	Page	 
	Section 13. Plan Administration
	 	 	6	 
	 
	 	 	 	 
	(a) Discretion
	 	 	6	 
	(b) Finality of Determinations
	 	 	6	 
	(c) Drafting Errors
	 	 	6	 
	(d) Scope
	 	 	6	 
	 
	 	 	 	 
	Section 14. Costs and Indemnification
	 	 	6	 
	 
	 	 	 	 
	Section 15. Limitation on Employee Rights
	 	 	7	 
	 
	 	 	 	 
	Section 16. Governing Law
	 	 	7	 
	 
	 	 	 	 
	Section 17. Miscellaneous
	 	 	7	 
	 
	 	 	 	 
	Appendix Detailed Claim and Arbitration Procedures
	 	 	8	 

ii

 

FIRST FINANCIAL BANCORP

SEVERANCE PAY PLAN

     First Financial Bancorp (“FFBC”) has adopted this Plan to provide separation benefits to
employees of FFBC and its affiliates who are involuntarily separated, as part of the consolidation
of its non-customer support functions (“Consolidation”). The Plan is administered by FFBC’s
Benefits Committee, which is the Plan Administrator. The Plan’s “Plan Year” is the 12-month period
ending December 31. The Plan is intended to be a temporary plan and will expire on December 31,
2008.

	1.	 	Eligibility

	 	(a)	 	In General
	 
	 	 	 	You are eligible for this Plan if you are an employee of FFBC or one of its
subsidiaries and you are not excluded by subsection (b).
	 
	 	(b)	 	Exclusions
	 
	 	 	 	You are not eligible for this plan if : (1) you are a “key employee” under Internal
Revenue Code 416(l); (2) you are on a leave of absence, except as otherwise
required by applicable law; (3) you are a temporary employee; (4) you are working
under a collective bargaining agreement (unless the agreement provides that this
Plan covers you); or (5) FFBC is not treating you as a common-law employee, as
conclusively evidenced by its failure to withhold taxes from your compensation, even
if you are, in fact, a common-law employee.

	2.	 	Participation

     If you are eligible for the Plan, you will become entitled to Plan benefits if you meet all of
the following requirements, except as provided in Section 3.

	 	(a)	 	Involuntary Separation Requirement
	 
	 	 	 	You must be involuntarily separated from FFBC on a date between January 1, 2008 and
December 31, 2008 (“Separation Date”), as part of the Consolidation.
	 
	 	(b)	 	Release Requirements
	 
	 	 	 	You must sign and file a Severance Agreement and Release as prescribed by the Plan
Administrator, and the Severance Agreement and Release must become irrevocable.

	3.	 	Ineligibility for Benefits

	 	(a)	 	Resignation or Discharge
	 
	 	 	 	You will not be eligible for benefits under this Plan if the Plan Administrator
determines, in its sole discretion, that, prior to your Separation Date, your

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	 	 	 	employment terminated by resignation (even if you felt compelled to resign)
retirement, death, disability, or by discharge for poor performance, misconduct, or
any other reason except involuntary separation as part of the Consolidation.
Notwithstanding the foregoing, if you are eligible for benefits under the First
Financial Bancorp Employees’ Pension Plan and Trust, you will be eligible for
benefits under this Plan if you elect to retire on your Separation Date.
	 
	 	(b)	 	Changed Decisions
	 
	 	 	 	FFBC has the right to cancel or reschedule your separation before you terminate
employment. You will not be eligible for separation benefits under this Plan if your
separation is canceled.
	 
	 	(c)	 	Substitute Employment
	 
	 	 	 	You will not be considered to have been involuntarily separated, and will not be
entitled to separation benefits under this Plan, if the Plan Administrator
determines, in its sole discretion, that you have been offered substantially
equivalent substitute employment whether you accept the position or not. Substitute
employment is:

	 	(1)	 	an offer of substantially equivalent employment by any entity
that assumes operations or functions formerly carried out by FFBC (such as the
buyer of a facility or any entity to which a FFBC operation or function has
been outsourced);
	 
	 	(2)	 	an offer of substantially equivalent employment by any
subsidiary or affiliate of FFBC;
	 
	 	(3)	 	an offer of substantially equivalent employment by any entity
making the job offer at the request of FFBC (such as a joint venture of which
FFBC or an affiliate is a member); or
	 
	 	(4)	 	an offer of substantially equivalent employment by FFBC.

	 	(d)	 	Transition Assistance

	 	 	 	You will not be entitled to benefits under this Plan unless you satisfy all
transition assistance requests of FFBC to its satisfaction, such as aiding in the
location of files, preparing accounting records, returning all FFBC property in your
possession, or repaying any amounts you owe FFBC.

	4.	 	Severance Pay

	 	(a)	 	Amount

	 	(1)	 	You will receive Severance Pay in an amount, less applicable
deductions and withholding, equal to two (2) Weeks of Pay plus one (1)
additional

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	 	 	 	Week of Pay for each full Year of Service as of your Separation Date, with a
minimum Severance Pay amount equal to four (4) Weeks of Pay.
	 
	 	(2)	 	If you have a transition role which FFBC deems important,
critical or vital to a smooth transition, FFBC will offer you 4, 8, or up to 24
additional weeks of Severance Pay, respectively, in exchange for signing a
Retention Agreement. If you sign a Retention Agreement and comply with its
terms, you will receive the number of additional weeks of Severance Pay
provided therein.

	 	(b)	 	Definitions

	 	(1)	 	“Years of Service” means your full years of employment with
FFBC and its affiliates in your most recent period of employment measured from
your anniversary date. Pro-rated benefits will not be paid for any fractional
Year of Service.
	 
	 	(2)	 	“Week of Pay” means your base weekly rate of pay, excluding
overtime, bonuses, commissions, premium pay, shift differentials, employee
benefits, expense reimbursements, and similar amounts. However, amounts
withheld from your pay for taxes, employee benefits, or other reasons will be
disregarded in calculating pay. If you are paid by the hour, your base weekly
rate of pay is your regular hourly rate multiplied by your scheduled hours per
week. If you are a part-time employee who is not regularly scheduled to work a
specific number of hours per week, your “Week of Pay” will be your average base
weekly pay, excluding overtime, bonuses, commissions, premium pay, shift
differentials, employee benefits, expense reimbursements, and similar amounts,
during the previous calendar year.
	 
	 	(3)	 	Your Years of Service and Weeks of Pay will be determined by
the Plan Administrator, in its sole and exclusive judgment, as of the date
benefits become payable to you.

	5.	 	Payment

	 	(a)	 	Form of Payment
	 
	 	 	 	You may elect to receive your Severance Pay under this Plan in a lump sum or paid
bi-weekly on scheduled pay days (the “Severance Pay Period”),
	 
	 	(b)	 	Time of Payment
	 
	 	 	 	Payment of your Severance Pay will commence as soon as administratively practical
after the date your Severance Agreement and Release becomes irrevocable.

3

 

	6.	 	Additional Benefits

	 	(a)	 	You also may continue your health benefits under the normal COBRA rules.

	 	(i)	 	If you elect to receive your Severance Pay bi-weekly, FFBC will
pay its portion of the premiums for COBRA coverage until the end of the
Severance Pay Period, or until you obtain substitute coverage, whichever, first
occurs, subject to you contribution through deductions from your b-weekly
Severance Payments.
	 
	 	(ii)	 	If you elect to receive your Severance Pay in a lump sum, FFBC
will not contribute to your COBRA premiums, and you will be responsible for
paying the full amount.

	 	(b)	 	You will receive outplacement services of FFBC’s selection.

	7.	 	Integration With Other Payments

     Benefits under this Plan are not intended to duplicate such benefits as workers’ compensation
wage replacement benefits, disability benefits, pay-in-lieu-of-notice, severance pay, or similar
benefits under other benefit plans (with the exception of benefits payable under the First
Financial Bancorp Employees’ Pension Plan and Trust), severance programs, employment contracts, or
applicable laws, such as the WARN Act. Should such other benefits be payable, your benefits under
this Plan will be reduced accordingly or, alternatively, benefits previously paid under this Plan
will be treated as having been paid to satisfy such other benefit obligations. If you have an
Employment Contract, you will not receive any benefits under this Plan unless you waive all
benefits of any kind or nature owed to you under the Employment Contract. In any case, the Plan
Administrator, in its sole discretion, will determine how to apply this provision and may override
other provisions in this Plan in doing so.

	8.	 	Reemployment

     If you are reemployed by FFBC or a Successor Employer while benefits are still payable under
the Plan, all such benefits will cease, except as otherwise specified by the Plan Administrator, in
its sole discretion.

	9.	 	Taxes

     Taxes will be withheld from benefits under the Plan to the extent required by law.

	10.	 	Relation to Other Plans

     Any prior severance or similar plan of FFBC that might apply to you is hereby revoked as to
you while you are eligible for Plan benefits. Benefits under this Plan will not be counted as
“compensation” for purposes of determining benefits under any other benefit plan, pension plan, or
similar arrangement. All such plans or similar arrangements, to the extent inconsistent with this
Plan, are hereby so amended. No benefits that would constitute “excess parachute payments” within
the meaning of Internal Revenue Code Section 280G, or cause any other amounts to be excess
parachute payments, will be paid by this Plan.

4

 

	11.	 	Amendment or Termination

     FFBC, acting through its chief executive officer, has the right, in its nonfiduciary settlor
capacity, to amend the Plan or to terminate it at any time, prospectively or retroactively, for any
reason, without notice and even if currently payable benefits are reduced or eliminated. The Plan
Administrator also has the right to amend the Plan, as elsewhere provided in the Plan. No person
has any vested right to benefits under this Plan. FFBC may amend the Plan to provide greater or
lesser benefits to particular employees by sending affected employees a letter setting forth the
applicable benefit modification.

	12.	 	Claims Procedures

	 	(a)	 	Claims Normally Not Required
	 
	 	 	 	Normally, you do not need to present a formal claim to receive benefits payable
under this Plan.
	 
	 	(b)	 	Disputes
	 
	 	 	 	If any person (Claimant) believes that benefits are being denied improperly, that
the Plan is not being operated properly, that fiduciaries of the Plan have breached
their duties, or that the Claimant’s legal rights are being violated with respect to
the Plan, the Claimant must file a formal claim with the Plan Administrator. This
requirement applies to all claims that any Claimant has with respect to the Plan,
including claims against fiduciaries and former fiduciaries, except to the extent
the Plan Administrator determines, in its sole discretion, that it does not have the
power to grant all relief reasonably being sought by the Claimant.
	 
	 	(c)	 	Time for Filing Claims
	 
	 	 	 	A formal claim must be filed within 90 days after the date the Claimant first knew
or should have known of the facts on which the claim is based, unless the Plan
Administrator in writing consents otherwise. The Plan Administrator shall provide a
Claimant, on request, with a copy of the claims procedures established under
subsection (d).
	 
	 	(d)	 	Procedures
	 
	 	 	 	The Plan Administrator has adopted the procedures for considering claims which are
contained in the Appendix and which it may amend from time to time as it sees fit.
These procedures provide that final and binding arbitration shall be the ultimate
means of contesting a denied claim (even if the Plan Administrator or its delegates
have failed to follow the prescribed procedures with respect to the claim). The
right to receive benefits under this Plan is contingent on a Claimant using the
prescribed claims and arbitration procedures to resolve any claim.

5

 

	13.	 	Plan Administration

	 	(a)	 	Discretion
	 
	 	 	 	The Plan Administrator is responsible for the general administration and management
of the Plan and shall have all powers and duties necessary to fulfill its
responsibilities, including, but not limited to, the discretion to interpret and
apply the Plan and to determine all questions relating to eligibility for benefits.
The Plan shall be interpreted in accordance with its terms and their intended
meanings. However, the Plan Administrator and all Plan fiduciaries shall have the
discretion to interpret or construe ambiguous, unclear, or implied (but omitted)
terms in any fashion they deem to be appropriate in their sole discretion, and to
make any findings of fact needed in the administration of the Plan. The validity of
any such interpretation, construction, decision, or finding of fact shall not be
given de novo review if challenged in court, by arbitration, or in any other forum,
and shall be upheld unless clearly arbitrary or capricious.
	 
	 	(b)	 	Finality of Determinations
	 
	 	 	 	All actions taken and all determinations made in good faith by the Plan
Administrator or by Plan fiduciaries will be final and binding on all persons
claiming any interest in or under the Plan. To the extent the Plan Administrator or
any Plan fiduciary has been granted discretionary authority under the Plan, the Plan
Administrator’s or Plan fiduciary’s prior exercise of such authority shall not
obligate it to exercise its authority in a like fashion thereafter.
	 
	 	(c)	 	Drafting Errors
	 
	 	 	 	If, due to errors in drafting, any Plan provision does not accurately reflect its
intended meaning, as demonstrated by consistent interpretations or other evidence of
intent, or as determined by the Plan Administrator in its sole discretion, the
provision shall be considered ambiguous and shall be interpreted by the Plan
Administrator and all Plan fiduciaries in a fashion consistent with its intent, as
determined in the sole discretion of the Plan Administrator. The Plan Administrator
shall amend the Plan retroactively to cure any such ambiguity.
	 
	 	(d)	 	Scope
	 
	 	 	 	This Section may not be invoked by any person to require the Plan to be interpreted
in a manner inconsistent with its interpretation by the Plan Administrator or other
Plan fiduciaries.

	14.	 	Costs and Indemnification

     All costs of administering the Plan and providing Plan benefits will be paid by FFBC, with one
exception: Any expenses (other than arbitrator fees) incurred in resolving disputes with multiple
Claimants concerning their entitlement to the same benefit may be charged against the benefit,
which will be reduced accordingly. To the extent permitted by applicable law and in addition to any
other indemnities or insurance provided by FFBC, FFBC shall indemnify and

6

 

hold harmless its (and its affiliates’) current and former officers, directors, and employees
against all expenses, liabilities, and claims (including legal fees incurred to defend against such
liabilities and claims) arising out of their discharge in good faith of their administrative and
fiduciary responsibilities with respect to the Plan. Expenses and liabilities arising out of
willful misconduct will not be covered under this indemnity.

	15.	 	Limitation on Employee Rights

     This Plan shall not give any employee the right to be retained in the service of FFBC or
interfere with or restrict the right of FFBC to discharge or retire the employee.

	16.	 	Governing Law

     This Plan is a welfare plan subject to the Employee Retirement Income Security Act of 1974 and
it shall be interpreted, administered, and enforced in accordance with that law. This Plan is
intended to comply with Section 409A of the Code and shall be considered and interpreted in
accordance with such intent. To the extent that the Severance Benefits are subject to Section 409A
of the Code, they shall be provided in a manner that will comply with Section 409A of the Code,
including applicable regulations or any other guidance issued by the Secretary of the Treasury and
the Internal Revenue Service with respect thereto (the “Guidance”). Any provision of this Plan
that would cause the payment of the Severance Benefits to fail to satisfy Section 409A of the Code
shall have no force and effect until amended to comply with Code Section 409A, which amendment may
be retroactive to the extent permitted by the Guidance. To the extent that state law is applicable,
the statutes and common law of the State of Ohio (excluding its choice of laws statutes or common
law) shall apply.

	17.	 	Miscellaneous

     Where the context so indicates, the singular will include the plural and vice versa. Titles
are provided herein for convenience only and are not to serve as a basis for interpretation or
construction of the Plan. Unless the context clearly indicates to the contrary, a reference to a
statute or document shall be construed as referring to any subsequently enacted, adopted, or
executed counterpart.

7

 

APPENDIX

Detailed Claim and Arbitration Procedures

	1.	 	Claims Procedure

	 	(a)	 	Initial Claims

     All claims shall be presented to the Plan Administrator in writing. Within 90 days after
receiving a claim, a claims official appointed by the Plan Administrator shall consider the, claim
and issue his or her determination thereon in writing. The claims official may extend the
determination period for up to an additional 90 days by giving the Claimant written notice. The
initial claim determination period can be extended further with the consent of the Claimant. Any
claims that the Claimant does not pursue in good faith through the initial claims stage shall be
treated as having been irrevocably waived.

	 	(b)	 	Claims Decisions

     If the claim is granted, the benefits or relief the Claimant seeks shall be provided. If the
claim is wholly or partially denied, the claims official shall, within 90 days (or a longer period,
as described above), provide the Claimant with written notice of the denial, setting forth, in a
manner calculated to be understood by the Claimant: (1) the specific reason or reasons for the
denial; (2) specific references to the provisions on which the denial is based; (3) a description
of any additional material or information necessary for the Claimant to perfect the claim, together
with an explanation of why the material or information is necessary; and (4) an explanation of the
procedures for appealing denied claims. If the Claimant can establish that the claims official has
failed to respond to the claim in a timely manner, the Claimant may treat the claim as having been
denied by the claims official.

	 	(c)	 	Appeals of Denied Claims

     Each Claimant shall have the opportunity to appeal the claims official’s denial of a claim in
writing to an appeals official appointed by the Plan Administrator (which may be a person,
committee, or other entity). A Claimant must appeal a denied claim within 60 days after receipt of
written notice of denial of the claim, or within 60 days after it was due if the Claimant did not
receive it by its due date. The Claimant (or his or her duly authorized representative) may review
pertinent documents in connection with the appeals proceeding and may present issues and comments
in writing. The Claimant only may present evidence and theories during the appeal that the Claimant
presented during the initial claims stage, except for information the claims official may have
requested the Claimant to provide to perfect the claim. Any claims that the Claimant does not
pursue in good faith through the appeals stage, such as by failing to file a timely appeal request,
shall be treated as having been irrevocably waived.

	 	(d)	 	Appeals Decisions

     The decision by the appeals official shall be made not later than 60 days after the written
appeal is received by the Plan Administrator, unless special circumstances require an extension of
time, in which case a decision shall be rendered as soon as possible, but not later than 120 days
after the appeal was filed, unless the Claimant agrees to a further extension of time. The

8

 

appeal decision shall be in writing, shall be set forth in a manner calculated to be
understood by the Claimant, and shall include specific reasons for the decision, as well as
specific references to the provisions on which the decision is based, if applicable. If a Claimant
does not receive the appeal decision by the date it is due, the Claimant may deem his or her appeal
to have been denied.

	 	(e)	 	Procedures

     The Plan Administrator shall adopt procedures by which initial claims shall be considered and
appeals shall be resolved; different procedures may be established for different claims. All
procedures shall be designed to afford a Claimant full and fair consideration of his or her claim.

	 	(f)	 	Arbitration of Rejected Appeals

     If a Claimant has pursued his or her claim through the appeal stage of these claims
procedures, the Claimant may contest the actual or deemed denial of that claim through arbitration,
as described below. In no event shall any denied claim be subject to resolution by any means (such
as in a court of law) other than arbitration in accordance with the following provisions.

	2.	 	Arbitration Procedure

	 	(a)	 	Request for Arbitration

     A Claimant must submit a request for arbitration to the Plan Administrator within 60 days
after receipt of the written denial of his or her appeal (or within 60 days after he or she should
have received the determination). The Claimant or the Plan Administrator may bring an action in
any court of appropriate jurisdiction to compel arbitration in accordance with these procedures.

	 	(b)	 	Applicable Arbitration Rules

     The arbitration shall be held under the auspices of the American Arbitration Association (AAA)
in accordance with the AAA’s then-current Employment Dispute Resolution Rules and the Due Process
Protocol for Mediation and Arbitration of Statutory Disputes Arising Out of the Employment
Relationship.

	 	(c)	 	Location

     The arbitration will take place in Hamilton, Ohio, or in such other location as may be
acceptable to both the Claimant or the Plan Administrator.

9EX-10.21

 

EXHIBIT 10.21

FIRST FINANCIAL BANCORP.

AMENDED AND RESTATED KEY MANAGEMENT SEVERANCE PLAN

I. Preamble and Statement of Purpose .

     The purpose of this Plan is to assure First Financial Bancorp. (“First Financial”) and its
subsidiaries (First Financial, together with its subsidiaries, the “Corporation”) of the continued
dedication, loyalty, and service of, and the availability of objective advice and counsel from, key
employees of the Corporation notwithstanding the possibility, threat or occurrence of a bid or
other action to take over control of the Corporation.

     In the event First Financial receives any proposals from a third party concerning a possible
business combination with First Financial, or acquisition of First Financial’s equity securities or
a substantial portion of its assets, the Board of Directors of First Financial (the “Board”)
believes that it would be imperative that the Board, the Corporation and its senior management be
able to rely on the Corporation’s key employees to continue in their positions and be available for
advice, if requested, without concern that those individuals might be distracted by the personal
uncertainties and risks created by such a proposal, or be influenced to consider other employment
opportunities or prospects because of such uncertainties or risks.

     Should First Financial receive any such proposals, in addition to their regular duties, such
key employees, in light of their experience and knowledge gained within that portion of the
business in which they are principally engaged, may be called upon to assist in the assessment of
proposals, advise senior management and the Board as to whether such proposals would be in the best
interest of First Financial and its shareholders, and take such other actions as the Board might
determine to be appropriate.

     This Plan amends and supersedes the First Financial Bancorp Key Management Severance Plan that
was first effective on March 23, 2006.

II. Eligible Executives .

     Eligible employees are those key employees of the Corporation who are from time to time
designated by the Chief Executive Officer of First Financial (the “CEO”) as eligible to participate
in this Plan. The CEO shall provide the Compensation Committee of the Board (the “Compensation
Committee”) a list of those individuals designated as eligible as updated from time-to-time.

     Each eligible employee shall become a Participant in the Plan upon his or her execution of a
letter agreement in the form, or substantially in the form, of Exhibit A, attached to and
incorporated in this Plan (the “Letter Agreement”). The executed Letter Agreement shall constitute
the Participant’s agreement to the terms and conditions of participation in this Plan and shall set
forth the amount of the Lump Sum Cash Payment under Section 3.2.2, the length of the Coverage
Period for welfare benefit continuation

 

 

under Section 3.2.3, and such other terms and conditions as the Compensation Committee may
determine applicable to the Participant.

     A Participant who is no longer employed by the Corporation shall cease to be a Participant in
the Plan, unless the Participant’s employment ceases (i) within twelve (12) months after the
Effective Date (as defined in Section 3.1.3) or (ii) during any period of time when the Board has
knowledge that any third person has taken steps reasonably calculated to effect a Change of Control
(as defined in Section 3.1.2) until, in the opinion of the Board, the third party has abandoned or
terminated its efforts to effect a Change of Control. Any decision by the Board that, in its
opinion, a third party has or has not taken steps reasonably calculated to effect a Change of
Control, or that, in its opinion, the third person has abandoned or terminated its efforts to
effect a Change of Control, shall be conclusive and binding on the Participants.

III. Plan Provisions .

     3.1 Definitions. The following terms, as used in this Plan with capitalized first
letters, shall have the meanings as provided in this Section 3.1:

     3.1.1. “Cause”. “Cause” means (i) the Participant’s willful and continued failure
substantially to perform the duties of his or her position (other than as a result of disability,
as defined in Section 72(m)(7) of the Internal Revenue Code of 1986, as amended (the “Code”), or as
a result of termination by the Participant for Good Reason) after written notice to the Participant
by the CEO or his/her designate specifying such failure, provided that such “Cause” shall have been
found by the CEO in consultation with legal counsel after at least ten (10) days’ written notice to
the Participant specifying the failure on the part of the Participant and after an opportunity for
the Participant to be heard at a meeting with the CEO or his/her designate; (ii) any willful act or
omission by the Participant constituting dishonesty, fraud or other malfeasance, and any act or
omission by the Participant constituting immoral conduct, which in any such case is injurious to
the financial condition or business reputation of the Corporation; or (iii) the Participant’s
indictment of a felony under the laws of the United States or any state thereof or any other
jurisdiction in which the Corporation conducts business. For purposes of this definition, no act or
failure to act shall be deemed “willful” unless effected by the Participant not in good faith and
without a reasonable belief that such action or failure to act was in or not opposed to the best
interests of the Corporation.

     3.1.2. “Change of Control”. “Change of Control” means the earliest to occur of any of
the following events, construed in accordance with Code section 409A:

     (i) Any one person or more than one person acting as a group acquires, or has acquired during
the twelve (12) month period ending on the date of the most recent acquisition by such person or
group, beneficial ownership of more than fifty percent (50%) of the total voting power of First
Financial’s then outstanding voting securities;

     (ii) A majority of the members of the Board is replaced during any twelve (12) month period by
directors whose appointment or election is not endorsed or

2

 

approved by a majority of the members of the Board who were members of the Board prior to the
initiation of the replacement; or

     (iii) Any one person or more than one person acting as a group acquires, or has acquired
during the twelve (12) month period ending on the date of the most recent acquisition by such
person or group, assets of First Financial that have a total gross fair market value of fifty
percent (50%) or more of the total gross fair market value of all of the assets of First Financial
immediately prior to the initiation of the acquisition.

     3.1.3. “Effective Date”. “Effective Date” means the date on which a Change of Control
occurs. In the event of a Change of Control occurring within twelve (12) months after a prior
Change of Control, “Effective Date” shall mean, for a Participant whose employment terminates prior
to the subsequent Change of Control, the date on which the prior Change of Control occurs, and for
all other Participants, the date on which the subsequent Change of Control occurs. Notwithstanding
anything in this Plan to the contrary, if a Participant’s employment with the Corporation had
terminated prior to the date on which the Change of Control occurred, and if it is reasonably
demonstrated by the Participant to the Board that such termination of employment either was at the
request of a third party who had taken steps reasonably calculated to effect the Change of Control
or otherwise arose in connection with or in anticipation of the Change of Control, then, for all
purposes of this Plan, “Effective Date” shall mean, with respect to such Participant only, the date
immediately prior to the date of such termination of employment.

     3.1.4. “Good Reason”. “Good Reason” means, without the Participant’s consent, (i)
removal from, or failure to be reappointed or reelected to, the Participant’s principal positions
immediately prior to the Change of Control (other than as a result of a promotion); (ii) a material
diminution in the Participant’s title, position, duties or responsibilities, or the assignment to
the Participant of duties that are inconsistent, in a material respect, with the scope of duties
and responsibilities associated with the Participant’s position immediately prior to the Change of
Control; (iii) a material reduction in the Participant’s base compensation, as in effect
immediately preceding the Effective Date, or target bonus opportunity; (iv) relocation of the
Participant’s principal workplace to a location which is more than fifty (50) miles from the
Participant’s principal workplace on the Effective Date; or (v) any material failure by First
Financial to comply with and satisfy the requirements of Section 3.5.6, provided that the successor
shall have received at least ten (10) days’ prior written notice from First Financial or the
Participant of the requirements of Section 3.5.6, and shall have failed to remedy such material
failure within thirty (30) days after receipt of such notice. For purposes of clauses (i), (ii) or
(iii) of the preceding sentence, an isolated and inadvertent action not taken in bad faith and
which is remedied by First Financial promptly after receipt of notice thereof given by the
Participant shall be excluded. For purposes of clause (ii), no material diminution of title,
position, duties or responsibilities shall be deemed to occur solely because First Financial
becomes a subsidiary of another corporation or change in the reporting hierarchy incident thereto.
For the purposes of clauses (i), (ii), (iii), and (iv), Good Reason shall not exist unless the
Participant notifies the Corporation of the existence of the condition specified under the
applicable clause no later than ninety (90) days after the initial existence of any such condition,
and the Corporation fails to

3

 

remedy such condition within thirty (30) days after receipt of such notice. Notwithstanding
the foregoing, Good Reason shall not exist unless the termination of employment from the
Corporation occurs no later than one year following the initial existence of any of the conditions
provided under this Section 3.1.4.

3.2 Benefits.

     3.2.1. Triggering Event. In the event the Participant’s employment with the
Corporation is terminated without Cause by the Corporation, or for Good Reason by the Participant,
on or within twelve (12) months after the Effective Date, First Financial shall (in addition to any
compensation or benefits to which the Participant may otherwise be entitled under any other
agreement, plan or arrangement with the Corporation, other than amounts excluded by Section 3.5.2)
make the payments and provide the benefits to the Participant as specified under Sections 3.2.2
through 3.2.6, subject to Section 3.4 and 3.5.2. Solely for purposes of this Section 3.2.1, a
Participant’s employment with the Corporation will be deemed to have terminated on the earlier of
the date the Participant’s employment with the Corporation ceases or the date that written notice
of any such termination is received by the Participant or by the Corporation, as the case may be,
even though the parties may agree in connection therewith that the Participant’s employment with
the Corporation will continue for a specified period thereafter. The failure by the Participant or
the Corporation to set forth in any such notice sufficient facts or circumstances showing Good
Reason or Cause, as the case may be, shall not waive any right of the Participant or the
Corporation or preclude either party from asserting such facts or circumstances in the enforcement
of any such right.

     3.2.2. Lump Sum Cash Payment. On or within 30 days after the Participant’s termination
of employment from the Corporation, First Financial shall pay to the Participant as compensation
for services rendered to the Corporation a Lump Sum Cash Payment (subject to any applicable payroll
or other taxes required to be withheld) equal to the sum of (a) six (6) to twelve (12) months (such
period to be determined by the CEO) of the Participant’s then current annual base salary; and (b)
accrued but unused vacation allotment for the current year, such amount determined in accordance
with the Letter Agreement.

     3.2.3. COBRA Coverage. The Participant may elect to continue the Participant’s (and,
where applicable, the Participant’s dependents’) health benefits pursuant to COBRA. If the
Participant elects to do so, the Corporation will pay the portion of the COBRA premiums which it
paid for the Participant’s insurance premiums which it did while Participant was an employee of the
Corporation for up to twelve (12) months, and the Participant’s portion will be deducted from the
Lump Sum Cash Benefit.

     3.2.4. Accelerated Vesting of Stock Awards. If Participant’s employment is terminated
within twelve (12) months of the Effective Date of a Change of Control as defined in Section 3.1.2,
any unvested stock options and restricted stock will vest subject to the terms of the applicable
stock benefit plan. The preceding sentence shall not apply with respect to any stock award if:
(i) in connection with the Change of Control, another

4

 

entity (a) shall have assumed or will assume the obligations of First Financial with respect
to such stock award, or (b) shall have issued or will issue one or more stock awards of equivalent
economic value with equivalent vesting conditions to replace such stock award; and (ii) the assumed
or replacement option as set forth in clause (i), pursuant to its terms, shall vest as of the date
the Participant’s employment with the Corporation is terminated without Cause by the Corporation,
or for Good Reason by the Participant, on or within eighteen (18) months after the Effective Date.
The Board shall have sole discretion in the determination of whether a replacement option is of
equivalent economic value to the replaced option.

     3.2.5. Outplacement Assistance. Participant shall be entitled to outplacement
assistance with an agency selected by First Financial with the fee paid by First Financial in an
amount not to exceed two (2) to five (5) percent of the Participant’s annual base salary as
determined by the CEO, such amount determined in accordance with the Letter Agreement.

     3.2.6. Target Bonus Payment. Participant shall be entitled to his/her target bonus
(“Target Bonus”) as defined in the Short Term Bonus Plan for the year of the Effective Date. The
Target Bonus will be paid on the date when annual bonuses for other key management employees are
normally paid. In no event shall the Target Bonus be paid later than March 15 in the year
following the Effective Date.

3.3 Adjustment of Lump Sum Cash Payment.

     3.3.1. Adjustment. Notwithstanding anything in this Plan or any Letter Agreement to
the contrary, in the event the Law or Accounting Firm (as defined in Section 3.3.2) shall determine
that the Lump Sum Cash Payment and any other payment or distribution in the nature of compensation
by the Corporation to or for the benefit of the Participant, whether paid or payable or distributed
or distributable pursuant to the terms of this Plan or otherwise (the Lump Sum Cash Payment,
together with such other payments and distributions, the “Payments”), would cause any portion of
such Payments to be subject to the excise tax imposed by Section 4999 (or any successor provision)
of the Code (the “Parachute Payments”), the Participant’s Lump Sum Cash Payment shall be reduced to
the extent necessary (but not below zero) so that no portion of the Payments shall be subject to
the excise tax imposed by Section 4999 of the Code, provided that no such reduction shall be made
if the Participant’s Payments, after the reduction and after the application of Federal income tax
at the highest rate applicable to individual taxpayers, would not be greater than the present value
(determined in accordance with Section 280G of the Code) of the Payments before the reduction but
after the application of (i) excise tax under Section 4999 of the Code and (ii) Federal income tax
at the highest rate applicable to individual taxpayers.

     3.3.2. Determination. All determinations required to be made under this Section 3.3,
including the assumptions to be utilized in arriving at such determination, shall be made by a
nationally recognized law or accounting firm (the “Law or Accounting Firm”), which shall provide
detailed supporting calculations both to First Financial and

5

 

the Participant (i) within fifteen (15) business days after the receipt of a notice from the
Participant that he or she may have a Parachute Payment, or (ii) at such earlier time as may be
requested by First Financial. The Law or Accounting Firm may employ and rely upon the opinions of
actuarial or accounting professionals to the extent it deems necessary or advisable. All fees and
expenses of the Law or Accounting Firm shall be borne solely by First Financial. Any determination
by the Law or Accounting Firm shall be binding upon First Financial and the Participant.

3.4 Terms and Conditions of Participation 

     3.4.1. Conditions of Participation. As a condition to being covered by the Plan, each
Participant, by executing the Letter Agreement, shall acknowledge and agree that (i) except as may
otherwise be expressly provided under any other executed agreement between the Participant and the
Corporation, nothing contained in this Plan (including, but not limited to, using the term “Cause”
to determine benefits under this Plan) is intended to change the fact that the employment of the
Participant by the Corporation is “at will” and, prior to the Effective Date, may be terminated by
either the Participant or the Corporation at any time, (ii) the Participant shall be bound by, and
comply with, the requirements of Sections 3.5.3 and 3.5.4, and (iii) the Participant consents to
the modifications to the options as provided in Section 3.2.4. Moreover, except as provided in
Section 3.1.3, if prior to the Effective Date, the Participant’s employment with the Corporation
terminates, then the Participant shall have no further rights under this Plan.

     3.4.2. Non-Duplication. As a condition to being covered by this Plan, and
notwithstanding any other prior agreement to the contrary, each Participant, by executing the
Letter Agreement, shall agree that the payments under this Plan shall be in lieu of any severance
or similar payments that otherwise might be payable under any plan, program, policy or agreement.

     3.4.3. Amendment and Termination. The Plan may not be amended or terminated after the
Effective Date. Prior to the Effective Date, the Compensation Committee of the Board (the
“Compensation Committee”) may, in its sole discretion, modify or amend this Plan in any respect, or
terminate the Plan (including with respect to individuals then participating in the Plan), provided
such action is taken and becomes effective at least one (1) year prior to the Effective Date and
such action is communicated to the Participants prior to the Effective Date. First Financial may
amend the Plan to provide greater or lesser benefits to particular employees by sending the
affected employees a letter setting forth the applicable benefit modification. Notwithstanding the
foregoing provisions of this Section 3.4.3, the Plan may be amended by the Compensation Committee
at any time, retroactively if required, if found necessary, in the opinion of the Compensation
Committee, in order to conform the Plan to the provisions of section 409A of the Code and the
Treasury Regulations or other authoritative guidance issued thereunder and to conform the Plan to
the provisions and other requirements of any applicable law. No such amendment shall be considered
prejudicial to any interest of a Participant under the Plan or require the Participant’s written
consent. The Corporation

6

 

shall promptly notify affected Participants of any such amendment adopted by the Compensation
Committee.

3.5 General

     3.5.1. Indemnification. If litigation or arbitration shall be brought to enforce or
interpret any provision of this Plan which relates to First Financial’s obligation to make payments
hereunder, then First Financial, to the extent permitted by applicable law and First Financial’s
Articles of Incorporation, shall indemnify the Participant for his or her reasonable attorneys’
fees and disbursements incurred in such proceedings, and shall pay pre-judgment interest on any
money judgment obtained by the Participant calculated at the prime rate of interest published from
time to time by The Wall Street Journal , northeast edition (“Prime Rate”) from the date that
payment(s) to him or her should have been made under this Plan.

     3.5.2. Payment Obligations; Overdue Payments . The Corporation’s obligations to make
the payments and provide the benefits to the Participant under this Plan shall be absolute and
unconditional and shall not be affected in any way by any circumstances, including, without
limitation, any offset, counterclaim, recoupment, defense or other right which First Financial may
have against the Participant or anyone else, provided, however, that as a condition
to payment of amounts under this Plan, the Participant shall execute by no later than the scheduled
payment date a general release and waiver (the “Waiver”), in form and substance reasonably
satisfactory to First Financial, of all claims relating to the Participant’s employment by the
Corporation and the termination of such employment, including, but not limited to, discrimination
claims, employment-related tort claims, contract claims and claims under this Plan (other than
claims with respect to benefits under the Corporation’s tax-qualified retirement plans,
continuation of coverage or benefits solely as required by Part 6 of Title I of the Employee
Retirement Income Security Act of 1974, or any obligation of First Financial to provide future
performance under Section 3.2.3). All amounts payable by First Financial hereunder shall be paid
without notice or demand, except as may be required with respect to the Waiver. Each and every
payment made hereunder by First Financial shall be final. The Corporation shall not seek to recover
all or any part of such payment from the Participant or from whosoever may be entitled thereto, for
any reason whatsoever. The Participant shall not be obligated to seek other employment in
mitigation of the amounts payable or arrangements made under any provision of this Plan, and the
obtaining of any such other employment shall in no event effect any reduction of First Financial’s
obligations to pay the Lump Sum Cash Payment. The Participant shall be entitled to receive interest
at the Prime Rate on any payments under this Plan that are overdue, provided,
however, that no payments shall be deemed to be overdue until the Participant executes the
Waiver and any rescission period with respect to such Waiver has expired or to the extent that
payments are delayed pursuant to the requirements of Section 409A of the Code.

     3.5.3. Confidential Information. The Participant shall at all times hold in a
fiduciary capacity for the benefit of the Corporation all secret, confidential or proprietary
information, knowledge or data relating to the Corporation, and its respective businesses,

7

 

which shall have been obtained by the Participant during the Participant’s employment by the
Corporation and which shall not be or become public knowledge (other than by acts by the
Participant or representatives of the Participant in violation of this Plan) including, but not
limited to, the following: (i) performance characteristics of the Corporation’s products;
(ii) marketing plans, business plans, strategies, forecasts, budgets, projections and costs;
(iii) personnel information; (iv) customer, vendor and supplier lists; (v) customer, vendor and
supplier needs, transaction histories, contacts, volumes, characteristics, agreements and prices;
(vi) promotions, operations, sales, marketing, and research and development; (vii) business
operations, internal structures, and financial affairs; (viii) systems and procedures; (ix) pricing
structure of the Corporation’s services and products; (x) proposed services and products;
(xi) contracts with other parties; and (xii) any other information that the Corporation is
obligated by law, rule or regulation to maintain as confidential (the “Confidential Information”).
During the Participant’s employment with the Corporation and after termination of such employment
at any time or for any reason, and regardless of whether any payments are made to the Participant
under this Plan as a result of such termination, the Participant shall not, without the prior
written consent of the Corporation or as may otherwise be required by law or legal process,
communicate or divulge any Confidential Information to any person other than the Corporation, its
employees and those designated by it or use any Confidential Information except for the benefit of
the Corporation. Immediately upon termination of the Participant’s employment with the Corporation
at any time or for any reason, the Participant shall return to the Corporation all Confidential
Information, including, but not limited to, any and all copies, reproductions, notes or extracts of
Confidential Information. “Confidential Information” shall not include (v) Confidential Information
which at the time of disclosure is already in the public domain; (w) Confidential Information which
the Participant can demonstrate by written evidence was in his possession or known to him prior to
his employment with the Corporation which is not subject to an obligation of confidentiality to the
Corporation; (x) Confidential Information which subsequently becomes part of the public domain
through no fault of the Participant; (y) Confidential Information which becomes known to the
Participant through a third party who is under no obligation of confidentiality to the Corporation;
and (z) Confidential Information which is required to be disclosed by law or by judicial
administrative proceedings. Upon service to the Participant, or anyone acting on the Participant’s
behalf, of any subpoena, court order, or other legal process requiring the Participant to disclose
information that would be Confidential Information but for the preceding sentence, the Participant
shall immediately provide written notice to the Corporation of such service and of the content of
any testimony or information to be disclosed.

     3.5.4. Solicitation of Employees and Customers. (a) During the Participant’s
employment with the Corporation and for a period of six (6) to twelve (12) months after termination
of such employment at any time and for any reason, and regardless of whether any payments are made
to the Participant under this Plan as a result of such termination, the Participant shall not
solicit, participate in or promote the solicitation of any person who was employed by the
Corporation at the time of the Participant’s termination of employment with the Corporation to
leave the employ of the Corporation,

8

 

or, on behalf of himself or any other person, hire, employ or engage any such person. The
Participant further agrees that, during such time, if an employee of the Corporation contacts the
Participant about prospective employment, the Participant will inform such employee that he or she
cannot discuss the matter further without informing the Corporation.

     (b) During the Participant’s employment with the Corporation, and for a period of six (6) to
twelve 12) months after termination of such employment and at any time and for any reason, and
regardless of whether any payments are made to the Participant under this Plan as a result of such
termination, the Participant will not, directly or indirectly, on behalf of himself or herself or
on behalf of any other individual, association or entity, as an agent or otherwise:

	 	(i)	 	contact any of the customers of Corporation for whom the Participant directly
performed any services or had any direct business contact for the purpose of
soliciting business or inducing such customer to acquire any product or service that
currently is provided or under development by the Corporation; or
	 
	 	(ii)	 	contact any of the customers or prospective customers of the Corporation
whose identity or other customer specific information the Participant discovered or
gained access to as a result of his/her access to the Confidential Information for the
purpose of soliciting or inducing any of such customers or prospective customers to
acquire any product or service that currently is provided or under development by the
Corporation; or
	 
	 	(iii)	 	utilize the Confidential Information to solicit, influence, or encourage any
customers or prospective customers of the Corporation to divert or direct their
business to me or any other person, association or entity by or with whom the
Participant is employed, associated, engaged as agent or otherwise affiliated.

     (c) The six (6) to twelve (12) month period described in Sections 3.5.4(a) and (b) above
shall correlate with the number of months set forth pursuant to Section 3.2.2(a).

     3.5.5. Application of Restrictions Respecting Confidential Information and Solicitation of
Employees. The requirements and obligations of the Participant under Sections 3.5.3 and 3.5.4
shall be in addition to, and not a limitation under, any other requirements and obligations of the
Participant, at law or otherwise. The term “person” for purposes of Sections 3.5.3 and 3.5.4 shall
include any individual or entity, including any corporation, trust or partnership.

     3.5.6. Successors. All right under this Plan are personal to the Participant and
without the prior written consent of First Financial shall not be assignable by the Participant
otherwise than by will or the laws of descent and distribution. This Plan shall inure to the
benefit of and be enforceable by the Participant’s legal representative. This Plan shall inure to
the benefit of and be binding upon First Financial and its successors

9

 

and assigns. First Financial will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of First Financial to assume expressly and agree to perform this Plan in the same manner and
to the same extent that First Financial would be required to perform it.

     3.5.7. Controlling Law; Jurisdiction. This Plan shall in all respects be governed by,
and construed in accordance with, the laws of the State of Ohio (without regard to the principles
of conflicts of laws). The Corporation and the Participants irrevocably consent and submit to the
jurisdiction of the Common Please Court for the county in the State of Oho in which the
Corporation’s principal place of business is located, or in any Federal court sitting in the State
of Ohio, for the purposes of any controversy, claim, dispute or action arising out of or related to
this Plan, and hereby waive any defense of an inconvenient forum and any right of jurisdiction on
account of the parties’ place of residence or domicile.

     3.5.8. Severability. Any provision in this Plan which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such
prohibition or unenforceability without invalidating or affecting the remaining provisions hereof,
and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     3.5.9. 409A Compliance.

     (i) This Plan is intended to comply with, or otherwise be exempt from, Section 409A of the
Code and any regulations and Treasury guidance promulgated thereunder.

     (ii) The Corporation and Participant agree that they will execute any and all amendments to
this Plan as they mutually agree in good faith may be necessary to ensure compliance with the
provisions of Section 409A of the Code.

     (iii) The preceding provisions, however, shall not be construed as a guarantee by the
Corporation of any particular tax effect to Participant under this Plan. The Corporation shall not
be liable to Participant for any payment made under this Plan, at the direction or with the consent
of Participant, which is determined to result in an additional tax, penalty, or interest under
Section 409A of the Code, nor for reporting in good faith any payment made under this Plan as an
amount includible in gross income under Section 409A of the Code.

     (iv) For purposes of Section 409A of the Code, the right to a series of installment payments
under this Plan shall be treated as a right to a series of separate payments.

     (v) With respect to any reimbursement of expenses of, or any provision of in-kind benefits to,
Participant, as specified under this Plan, such reimbursement of expenses or provision of in-kind
benefits shall be subject to the following conditions: (1) the expenses eligible for reimbursement
or the amount of in-kind benefits provided in one taxable year shall not affect the expenses
eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year,
except for any medical reimbursement arrangement providing for the reimbursement of expenses
referred to in Section 105(b) of the Code; (2) the reimbursement of an eligible expense shall be
made no later than the end of the

10

 

year after the year in which such expense was incurred; and (3) the right to reimbursement or
in-kind benefits shall not be subject to liquidation or exchange for another benefit.

     (vi) For purposes of Section 409A of the Code, the date as of which the Corporation and the
Participant reasonably anticipate that no further services would be performed by the Participant
shall be construed as the date that the Participant first incurs a “separation from service” as
defined under Section 409A of the Code.

     (vii) If a payment obligation under this Plan arises on account of Participant’s termination
of employment while he is a “specified employee” (as defined under Section 409A of the Code and
determined in good faith by the Compensation Committee), any payment of “deferred compensation” (as
defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in
Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) shall accrue at the Prime Rate of
interest and shall be made within 15 days after the end of the six-month period beginning on the
date of such termination of employment or, if earlier, within 15 days after appointment of the
personal representative or executor of Participant’s estate following his death.

Date: February 26, 2008

11

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