Document:

EXHIBIT
10.4

 

REPUBLIC BANCORP, INC

REPUBLIC BANK & TRUST
COMPANY

 

AMENDED AND RESTATED OFFICER
COMPENSATION

CONTINUATION AGREEMENT

 

This
is an Amended and Restated Agreement originally dated as of the 15th
day of June, 2001,  made by and between
Republic Bancorp, Inc., a Kentucky corporation (the “Company”), and Kevin
Sipes (the “Executive”), who is presently Chief Financial Officer of Republic
Bank & Trust Company (the “Bank”) (the “Agreement”), in consideration
of the mutual covenants herein contained and in further consideration of
services performed and to be performed by the Executive for the Company and/or
its subsidiaries.  As of the date of this
Agreement, Bank is a wholly-owned subsidiary of the Company.  This Agreement, as so amended and restated shall
supersede the prior agreements and all amendments thereto, effective as of the
date of its adoption.  The Bank joins in
this Agreement to further accomplish the terms and objectives of this
Agreement.

 

Recitals

 

A.                                   The Company
considers the establishment and maintenance of sound and vital management of
the Company and its subsidiaries to be essential to protecting and enhancing
the best interests of the Company and its shareholders.

 

B.                                     The Company
recognizes that, while not anticipated, the possibility of a change of control
may exist.  Such possibility, and the
uncertainty and questions which it may raise among management of the Company
and its subsidiaries may result in the departure or distraction of key members
of management to the detriment of the Company’s shareholders.

 

C.                                     The Company’s Board
of Directors has determined that appropriate steps should be taken to encourage
key members of management of the Company and its subsidiaries, such as the
Executive, to remain in the employ of the Company and/or its subsidiaries and
perform their assigned duties without distraction in the face of potentially
disturbing circumstances arising from the possibility of a change of control of
the Company.

 

NOW,
THEREFORE, in consideration of the foregoing and of the covenants herein
contained, the parties hereto agree as follows:

 

Section 1 — Definitions

 

For
purposes of this Agreement, the following words and terms shall have the
following meanings:

 

1.1                                 Termination by the
Bank of the Executive’s employment for “Cause” shall
mean termination upon (A) the willful and continued failure by the
Executive substantially to perform the Executive’s duties with the Bank (other
than any such failure resulting from Disability or temporary incapacity due to
physical or mental illness), after a written demand for substantial performance
is delivered to the Executive by the Board of Directors of the Bank (the “Bank
Board”), which demand specifically identifies the manner in which the Bank
Board believes that the Executive has not substantially performed his duties;
or (B) the willful engaging by the Executive in gross misconduct
materially and demonstrably injurious to the Bank or the Company.  For purposes of this definition, no act, or
failure to act, on the Executive’s part shall be considered “willful” unless
done, or omitted to be done, by the Executive not in good faith and without
reasonable belief that the Executive’s action or omission was in the best
interests of the Bank or the Company.

 

 

1.2                                 A “Change in Control” of the Company shall mean (i) an
event or series of events which have the effect of any “person” as such
term is used in Section 13(d) and 14(d) of the Exchange Act,
becoming the “beneficial owner” as defined in Rule 13d-3 under the
Exchange Act, directly or indirectly, of securities of the Company or the Bank
representing a greater percentage of the combined voting power of the Company’s
or Bank’s then outstanding stock, than the Trager Family Members as a group; (ii) an
event or series of events which have the effect of decreasing the Trager Family
Members’ percentage ownership of the combined voting power of the Company’s or
Bank’s then outstanding stock to less than 25%; 
(iii) any person (including the Company or the Bank) publicly
announces an intention to take or to consider taking actions which have
consummated would constitute a Change in Control, or (iv) the Company
Board adopts a resolution to the effect that a Potential Change in Control for
purposes of this Plan has occurred.  For
purposes of this paragraph, “Trager Family Member” shall mean Bernard M.
Trager, Jean S. Trager and any of their lineal descendants, and any
corporation, partnership, limited liability company or trust the majority
owners or beneficiaries of which are directly or indirectly through another
entity Bernard M. Trager, Jean S. Trager, or one or more of their lineal
descendants.

 

1.3                                 “Compensation” shall mean the
Executive’s annual base salary at the greater of (A) the highest rate in
effect at any time during the twelve months immediately preceding the
applicable Date of Termination, or (B) the rate in effect immediately
prior to the applicable Change in Control.

 

1.4                                 “Contract
Period” shall mean the period defined in Section 2 hereof.

 

1.5                                 “Date of
Termination” shall mean (A) if the Executive’s employment is
terminated for Good Reason, as defined below, the date specified in the Notice
of Termination, as defined in this Section 1.8 below; and (B) if the
Executive’s employment is terminated for any other reason, the date on which a
Notice of Termination is given; provided that, if within 30 days after
any Notice of Termination is given, the party receiving such Notice of
Termination notifies the other party that a dispute exists concerning the
termination, the Date of Termination shall be the date on which the dispute is
finally determined, either by mutual written agreement of the parties, by a
binding and final arbitration award or by a final judgment, order or decree of
a court of competent jurisdiction (the time for appeal therefrom having expired
and no appeal having been perfected).

 

1.6                                 “Disability” shall mean a
physical or mental incapacity of the Executive which entitles the Executive to
benefits under any long-term disability plan or wage continuation plan
applicable to him and maintained by the Company as in effect immediately prior
to the applicable Change in Control.

 

1.7                                 “Good
Reason” shall mean:

 

(a)                                  Without the
Executive’s express written consent, the assignment to Executive of any duties
inconsistent with, or the reduction of powers or functions associated with, his
positions, duties, responsibilities and status with the Company immediately
prior to a Change in Control, or any removal of Executive from, or any failure
to reelect Executive to, any positions or offices Executive held immediately
prior to a Potential Change in Control, except in connection with the
termination of Executive’s employment at death, for Cause or on account of
Retirement or Disability pursuant to the requirements of this Agreement;

 

(b)

(i) the failure by the Company to continue in effect any employee
welfare or pension benefit plans within the meaning of Sections 3(1) and 3(2) of
the Employee Retirement Income Security Act of 1974 (the “Plans”), in which
Executive was participating immediately prior to a Potential Change in Control
(or substitute plans, programs or arrangements providing Executive with
substantially similar benefits),

 

(ii) the taking of any action, or the failure to take any action,
by the Company which could (A) adversely affect Executive’s participation
in, or materially reduce Executive’s benefits under, any of the Plans, (B) materially
adversely affect the basis for computing benefits under any of the Plans, or (C) deprive
Executive of any material fringe benefit enjoyed by Executive immediately prior
to a Potential Change in Control, or 

 

(iii) the failure by the Company to provide Executive with the
number of paid vacation days to which Executive was entitled immediately prior
to a Potential Change in Control in accordance with the Company’s vacation
policy applicable to Executive then in effect;

 

2

 

except,
in each case, in connection with the termination of Executive’s employment at
death, for Cause or on account of Retirement or Disability pursuant to the
requirements of this Agreement;

 

(c)                                  the failure by the
Company to obtain an assumption of the obligations of the Company under this
Agreement by any successor to the Company;

 

(d)                                 a reduction by the
Bank in the Executive’s base salary as in effect on the date hereof or as the
same may be increased from time to time, except as part of an across-the-board
reduction of base salaries applicable to all salaried employees of the Bank,
provided the reduction (or series of reductions) does not exceed 5% of the
Executive’s base salary prior to such change;

 

(e)                                  the relocation of
the Bank’s principal executive offices to a location outside the metropolitan
Louisville area; or the Company’s requiring the Executive to be based anywhere
other than in the metropolitan Louisville area, except for required travel on
the Bank’s business to an extent substantially consistent with similarly
situated executives’ business travel obligations;

 

(f)                                    any purported
termination of the Executive’s employment during the contract period which is
not effected pursuant to a Notice of Termination satisfying the requirements of
Section 3 below; and for purposes of this Agreement, no such purported
termination shall be effective.

 

1.8                                 A “Notice of Termination” shall mean a notice, from the Bank
or from the Executive, which shall indicate the specific termination provision
in this Agreement relied upon and shall set forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated.

 

1.9                                 “Plans” shall have the
meaning given in Section 1.7(b).

 

1.10                           Any reference to “Subsidiaries” of the Company shall include those
subsidiaries owned by the Company directly or owned by the Company indirectly
through another company which is wholly-owned by the Company.

 

Section 2 — Application
of Agreement

 

This
Agreement shall apply only to termination of employment of the Executive during
a period (the “Contract Period”) commencing on the date immediately preceding
the date of a Change in Control and terminating on the second anniversary of
the date of that Change in Control; provided, however, that each such Change in
Control occurs during the period commencing as of January 1, 1995 and terminating
at midnight on December 31, 1998 or as further extended pursuant to the
following sentence.  At midnight on December 31,
1998, and on each annual anniversary of that time and date thereafter, such
latter period shall be automatically extended for two additional years, unless
on or before such anniversary the Company notifies the Executive in writing
that it elects not to extend such period. 
There is one Contract Period for each Change in Control and there may be
multiple Change(s) in Control.  With
respect to a termination pursuant to Section 3.2 only, the Contract Period
shall also include the period from and after a Potential Change in
Control.  If a Potential Change in
Control occurs but a Change in Control does not follow within one year of the
Potential Change in Control, the Contract Period shall expire on the one year
anniversary of the Potential Change in Control.

 

Section 3 — Termination

 

3.1                                 Procedure for
Termination.  Any termination by the Bank or by the Executive,
pursuant to this Agreement, shall be communicated by Notice of Termination to
the other parties hereto.  The Executive
shall not be deemed to have been terminated for Cause unless and until there
shall have been delivered to the Executive a copy of a resolution duly adopted
by the affirmative vote of not less than 51% of the entire membership of the
Board of Directors of the Company (the “Company Board”) at a meeting of the
Company Board called and held for that purpose (after reasonable notice to the
Executive and an opportunity for the Executive, together with his counsel, to
be heard before the Company Board), finding that in the good faith opinion of
the Company Board, the Executive was guilty of conduct set forth in Section 1.1
and specifying the particulars thereof in detail.

 

3

 

3.2                                 Termination for
Cause or Before Contract Period.  Upon a termination of the Executive’s
employment for Cause during the Contract Period, the Executive shall have no
right to receive any compensation or benefits hereunder.  Upon a termination of the Executive’s
employment without Cause during the Contract Period, the Executive shall be
entitled to receive the benefits provided in Section 3.4 hereof.  This Agreement shall not apply to, and the
Executive shall have no right to receive any compensation or benefits hereunder
in connection with, any termination of the Executive’s employment by the
Company other than during a Contract Period, and Executive shall remain an “at
will” employee until a Contract Period begins.

 

3.3                                 Termination for
Good Reason.  During the
Contract Period, the Executive shall be entitled to terminate his employment
with the Company and, if such termination is for Good Reason, to receive the
benefits provided in Section 3.4 hereof. 
The Executive shall give the Company Notice of Termination of his
employment pursuant to this Section 3.3, and termination of the Executive’s
employment shall be effective five business days after the Executive gives
notice thereof to the Company.  This
Agreement shall not apply to, and the Executive shall have no right to receive
any compensation or benefits hereunder in connection with, any termination of
the Executive’s employment by the Executive other than during a Contract
Period.  This Agreement shall not apply
to, and the Executive shall have no right to receive any compensation or
benefits hereunder in connection with, a termination of the Executive’s
employment on account of the Executive’s death, whether or not during the
Contract Period.

 

3.4                                 Compensation Upon
Termination.  If during a
Contract Period the Executive’s employment shall be terminated by the Bank
other than pursuant to death or for Cause, or if the Executive shall terminate
his employment for Good Reason, then the Company shall pay, or the Company
shall cause the Bank to pay, to the Executive as severance compensation in a
lump sum (discounted to present value using the interest rate applicable to a
three year certificate of deposit at Republic Bank & Trust Company) on
the fifth day following the Date of Termination (or such later time as is
provided in Section 3.7):

 

(1)                                  the unpaid balance
of the Executive’s full base salary through the Date of Termination at the rate
in effect at the time Notice of Termination is given; and

 

(2)                                  an amount equal to
the Executive’s Compensation, divided  by 12 and multiplied
by the lesser of (i) the number of months remaining in the Contract
Period at the Date of Termination, and (ii) 24 (such multiple hereafter
referred to as the “Payment Period”).

 

In
addition to the severance benefits set forth in (1) and (2) of this Section 3.4,
the Company shall, or the Company shall cause the Bank to:

 

(3)                                  pay as incurred or
reimburse Executive for all legal fees and expenses incurred by the Executive
resulting from termination (including all such fees and expenses, if any,
incurred in contesting any such termination or in seeking to obtain or enforce
any right or benefit provided by this Agreement), as and when the Company is
notified thereof, but in all events within 21⁄2 months following the calendar
year in which such amounts are incurred; and

 

(4)                                  maintain in full
force and effect, for the continued benefit of the Executive for the shorter of
(i) until the Executive’s death (provided that benefits payable to his
beneficiaries shall not terminate upon his death), or (ii) with respect to
any particular Plan, the date he is afforded a comparable benefit at a
comparable cost to the Executive by a subsequent employer, or (iii) the
Payment Period, all Plans in which Executive was entitled to participate
immediately prior to the Change of Control (unless Plans generally available to
employees of the Bank have been modified since the Change in Control in which
case the Plans to be continued shall be those in effect at the Date of
Termination, at the level most comparable to that available to the Executive at
the Change in Control).  In the event
that the Executive’s participation in any Plan of the Company is prohibited,
the Company shall arrange to provide the Executive with benefits substantially
similar to those which the Executive is entitled to receive under that Plan,
for such period.  To the 

 

4

 

extent such Plans or provisions for comparable Plans constitute “deferred
compensation” within the meaning of Section 409A of the Code, the Company
shall not delay or accelerate payment to vendors or third parties for such
coverage on Executive’s behalf, beyond the normal periodic payment periods then
applicable for the Plans for employees generally.  On the last day of the Payment Period (even
if enjoyment of a benefit ceases earlier as provided above), the Executive
shall have assigned to him at no cost and with no apportionment of prepaid
premiums, any assignable insurance policy owned by the Bank or the Company
relating specifically to the Executive, and, if benefits hereunder cease before
the end of the Payment Period, the Company shall use its best efforts, without
requirement to pay additional cash premiums, to maintain any such policy in
full force and effect until such time, or allow the Executive to arrange to do
so; and

 

(5)                                  cause all stock
options and stock appreciation rights and/or the rights held by the Executive
with respect to stock in the Company, immediately prior to the termination, if
not otherwise presently exercisable, to become presently exercisable.

 

3.5                                 Disability.                                          If during the
Contract Period, the Executive’s employment shall be terminated, either by the
Bank or by the Executive, due to the Executive’s Disability, the Company shall
pay the Executive the severance compensation and the same benefits as set forth
in Section 3.4(1)-(5).

 

3.6                                 No Mitigation.                  The Executive shall not be required to mitigate the amount of any
payment provided for in this Section 3 by seeking other employment or
otherwise, nor shall the amount of any payment provided for in this Section 3
be reduced by any compensation earned by the Executive as the result of
employment by another employer after the Date of Termination, or otherwise.

 

3.7                                 Delay in Payments for Specified Employees.       Notwithstanding
the provisions of Section 3.4 hereof, if the Executive is a “key employee”
within the meaning of Section 416(i) (but without regard to Section 416(i)(5))
of the Internal Revenue Code of 1986, as amended (the “Code”), as of the last
identification date thereof and determined in the manner provided in Treasury
Regulation §1.409-1(i) when  the
Executive’s separation from service occurs, and stock of the Company is at such
separation publicly traded on an established securities market or otherwise,
any non-409A-exempt severance compensation and benefits payable pursuant to Section 3.4
shall not be paid earlier than  6 months
following the date of the Executive’s separation from service and shall be
discounted to present value using the interest rate applicable to a three  year certificate of deposit at Republic Bank &
Trust Company on the delayed payment date. 
If the preceding sentence applies to the Executive, then the severance,
reimbursements and benefits required by Section 3.4 shall not be paid or
provided until 6 months following the Executive’s separation from service,
unless such benefits or amounts do not constitute “deferred compensation”
within the meaning given in Section 409A of the Code.  For example, such benefits or amounts might
not be deferred compensation to the extent benefits provided can be excluded
from the Executive’s gross income as is reportable by the Company or the Bank
on wage reports, or if they would be deductible by the Executive under Code Section 162
or 167 (without regard to any limitations based on adjusted gross income), and
are provided or reimbursed prior to the end of the second calendar year
following the calendar year in which the separation occurs.  If a benefit cannot be provided or paid for
by the Company during the 6 month period following the separation from service
as a result of this timing restriction, the Company shall pay to Executive the
amount of compensation that would have been paid during the 6 months, as well
any amount he has expended for benefits during the 6 months delay, within 5
days after the 6 months delay period has expired, and shall pay or provide for
the reimbursements and benefits provided hereunder otherwise at the time and in
the manner provided in Section 3.4.

 

                                                3.8                                 Meaning of “Termination” or “Separation from Service.” 
If and to the extent termination of employment, or separation from
service is required to trigger payment rights hereunder, such phrase shall have
the meaning given in Treasury Regulation §1.409A-1(h) as reasonably
interpreted by the Company. Specifically, these phrases mean the date the
Company and the Executive reasonably anticipate that (i) the Executive
will not perform any further services for the Company or any other entity
considered a single employer with the Company under Section 414(b) or
(c) of the Code (the “Employer Group”), or (ii) the level of bona
fide services performed after that date (as an employee or independent
contractor, except that service as a member of the board of directors of an
Employer Group entity is not counted unless termination benefits under this
Agreement are aggregated with benefits 

 

5

 

under any other
Employer Group plan or agreement in which Executive also participates as a
director)  will permanently decrease to
less than 20% of the average level of bona fide services performed over the
previous 36 months (or if shorter over the duration of service).  The Employee will not be treated as having a
termination of employment or separation from service while on military leave,
sick leave or other bona fide leave of absence if the leave does not exceed six
months or, if longer, the period during which the Executive has a reemployment
right with the Company by statute or contract. 
If a bona fide leave of absence extends beyond six months, a termination
of employment or separation from service will be deemed to occur on the first
day after the end of such six month period, or on the day after the Executive’s
statutory or contractual reemployment right lapses, if later.

 

Section 4 — Miscellaneous

 

4.1                                 Successors Shall
Assume.    The Company 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 the Company or the Bank, by agreement in form and substance
satisfactory to the Executive, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company or the
Bank would be required to perform if no such succession had taken place.  Failure of the Company to obtain such
agreement prior to the effectiveness of any such succession shall be a breach
of this Agreement and shall entitle the Executive to compensation from the
Company in the same amount and on the same terms as the Executive would be
entitled hereunder if the Executive terminated the Executive’s employment for
Good Reason, except that for purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Date of
Termination.  As used in this Agreement, “Company”
shall mean the Company as defined in the preamble hereto and any successor to
its business and/or assets as aforesaid or which otherwise becomes bound by all
the terms and provisions of this Agreement by operation of law.  As used in this Agreement, “Bank” shall mean
the Bank as defined in the preamble hereto and any successor to its business
and/or assets as aforesaid or which otherwise becomes bound by all the terms
and provisions of this Agreement by operation of law.

 

4.2                                 Binding Effect.                 This Agreement
shall inure to the benefit of and be enforceable by the Executive’s personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.  If
the Executive should die while any amounts would still be payable to the
Executive hereunder if the Executive had continued to live, all such amounts,
unless otherwise provided herein, shall be paid in accordance with the terms of
this Agreement to the Executive’s devisee, legatee, or other designee or, if
there be no such designee, to the Executive’s estate.

 

4.3                                 Reduction of
Amounts Payable.                      In no event shall any amount
payable under any provision of this Agreement equal or exceed an amount which
would cause the Company to forfeit, pursuant to Section 280G(a) of
the Internal Revenue Code of 1986, as amended, its deduction for any or all
such amounts payable.  Pursuant to this Section 4.3,
the Company’s Compensation Committee has the power to reduce severance benefits
payable under this Agreement, if such benefits alone or in conjunction with
termination benefits provided under any other Company plan or program, would
cause the Company to forfeit otherwise deductible payments; provided, however
that no benefits payable under this Agreement shall be reduced pursuant to this
Section 4.3 to less than $1.00 below the amount of benefits which the
Company can properly deduct under Section 280G(a) of the Internal
Revenue Code of 1986, as amended.

 

4.4                                 Notice.          Any notice or
request required or permitted to be given under this Agreement shall be in
writing and shall be deemed sufficiently given for all purposes if mailed by
certified mail, postage prepaid and return receipt requested, addressed to the
intended recipient at

 

	
   

  	
  (a)

  	
  the
  addresses set forth below:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  If
  to the Company:

  
	
   

  	
   

  	
   

  	
  Republic
  Bancorp, Inc.

  
	
   

  	
   

  	
   

  	
  601
  W. Market St.

  
	
   

  	
   

  	
   

  	
  Louisville,
  Kentucky 40202

  
					

 

All
notices to the Company shall be directed to the attention of the Chief
Executive Officer of the Company with a copy to the Secretary of the Company
and to the Secretary of the Bank.

 

6

 

	
   

  	
  (ii)

  	
  If
  to the Bank:

  
	
   

  	
   

  	
  Republic
  Bank & Trust Company

  
	
   

  	
   

  	
  601
  W. Market Street

  
	
   

  	
   

  	
  Louisville,
  Kentucky 40202

  

 

All
notices to the Bank shall be directed to the attention of the Secretary of the
Bank with a copy to the Secretary of the Company.

 

	
   

  	
  (iii)

  	
  If
  to the Executive:

  
	
   

  	
   

  	
  at
  his last known

  
	
   

  	
   

  	
  address
  in the Bank’s

  
	
   

  	
   

  	
  employment
  records

  

 

(b)                                 Such other address
as any of the parties shall specify by written notice to the other parties of
this Agreement.

 

4.5                                 Payment Obligations
Absolute.  The Company’s
obligation to pay the Executive the amounts provided for hereunder shall be
absolute and unconditional and shall not be affected by any circumstances,
including, without limitation, any set-off, counterclaim, recoupment, defense
or other right which the Company may have against him or anyone else, except
with respect to tax withholding required pursuant to Section 4.11.  All amounts payable by the Company hereunder
shall be paid without notice or demand. 
Except as expressly provided herein, the Company waives all rights which
it may now have or may hereafter have conferred upon it, by statute or
otherwise, to amend, terminate, cancel or rescind this Agreement in whole or in
part.  Each and every payment made
hereunder by the Company shall be final and the Company shall not seek to
recover all or any part of such payment from the Executive or from whomsoever
may be entitled thereto, for any reason whatsoever.

 

4.6                                 Modifications and
Waivers.                                           No provisions of
this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by the Executive
and such officer as may be specifically designated by the Board of Directors of
the Company.  No waiver by either party
hereto at any time of any breach by the other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or any prior or subsequent time.

 

4.7                                 Entire Agreement. No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not set forth expressly in this Agreement.

 

4.8                                 Governing Law.            The validity,
interpretation, construction and performance of this Agreement shall be
governed by the laws of the Commonwealth of Kentucky.

 

4.9                                 Validity.    The invalidity or
unenforceability of any provisions of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.

 

4.10                           Counterparts.                       This Agreement may
be executed in one or more counterparts, each of which shall be deemed to be an
original but all of which together will constitute one and the same instrument.

 

4.11                           Payroll and
Withholding Taxes.  The Company may
withhold from any amounts payable to the Executive hereunder all federal,
state, city or other taxes that the Company may reasonably determine are
required to be withheld pursuant to any applicable law or regulation.

 

IN
WITNESS WHEREOF the parties hereto have executed this Agreement, as of the day
and year first above written.

 

7

 

	
   

  	
  REPUBLIC
  BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/
  Kevin Sipes

  	
   

  	
  By:  /s/
  Steve Trager

  
	
  Kevin
  Sipes

  	
   

  
	
   

  	
  Title:

  	
  Vice
  Chairman, CEO Republic Bancorp, Inc.

  
	
   

  	
   

  	
  Chairman &
  CEO: Republic Bank & Trust Company

  
	
   

  	
   

  
	
   

  	
  Date:
  April 23, 2008

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  REPUBLIC
  BANK & TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  /s/
  Steve Trager

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice
  Chairman, CEO Republic Bancorp, Inc.

  
	
   

  	
   

  	
  Chairman &
  CEO: Republic Bank & Trust Company

  
	
   

  	
   

  
	
   

  	
  Date:
  April 23, 2008

  
				

 

8EXHIBIT 10.5

 

AGREEMENT AND RELEASE

 

This Agreement and Release is
made by and between Republic Bank & Trust Company, its subsidiaries,
affiliates and related entities (hereinafter, “Republic”) and David Vest (“Employee”).

 

W I T N E S S E T H :

 

WHEREAS, Employee has previously
been employed by Republic, and the parties have mutually agreed to sever
Employee’s employment; and

 

WHEREAS, the parties wish to
clarify and memorialize certain agreements made between them in regard to
Employee’s employment and the termination of Employee’s employment;

 

NOW THEREFORE, in consideration
of the foregoing premises and the terms stated herein, it is mutually agreed
between the parties as follows:

 

Employee resigns from employment with Republic
effective May 16, 2008 (the “Separation Date”).

 

As specific consideration for the release and waiver
contained in Paragraph 0 of this Agreement and Release and not as a
replacement for any other benefit or compensation owed Employee, Republic shall
provide the following benefits to which Employee is otherwise not
entitled:  Republic shall pay Employee
through November 15, 2008 his base pay at the rate of pay in effect on the
Separation Date in regular payments on the 15th and last day of each
month.  Payment of such sums will begin
and be payable within ten days after the revocation period described in
Paragraphs 0 and 12 below has expired without a revocation.  Employee shall receive any and all payments
which have not been paid to Employee after the revocation period described in Paragraphs
0 and 12 below has expired without a revocation.  This payment will not include any bonuses,
commissions, incentives or any other remuneration other than base pay.  Republic shall withhold from this payment any
taxes or payroll deductions required by law to be withheld. All other payroll
deductions will cease and Employee will not be eligible for participation in
any employee benefit plans.  On or before
the Separation Date Employee will receive a COBRA notice and may elect to
continue his participation in the health and dental plans at his own cost
through COBRA.

 

Employee, for himself and his heirs, personal
representatives, estate, successors and assigns, does hereby release, forever
discharge and covenant not to sue Republic, its subsidiaries, affiliates and
related entities, their branches, successors, assigns, agents, representatives,
employees, officers, managers, insurers, partners, shareholders, directors and
trustees, from any and all causes of action, claims, demands, suits, damages, sums
of money and/or judgments (hereinafter “damages”) arising at any time prior to
and through the date of the execution of this Agreement and Release which might
have been asserted against them by Employee, or on Employee’s behalf,
including, but not limited to, any damages which may have been asserted by or
on behalf of Employee relating to Employee’s employment by Republic or the
termination of Employee’s employment, including reinstatement, back or front
pay, profit sharing plans, retirement plans or any benefits plans of any type
or nature, all tort and common law claims, claims for breach of contract,
wrongful discharge, public policy and any claims for discrimination of any type
under any federal, state or local law, ordinance or regulation, including, but
not limited to claims under the Age Discrimination in Employment Act of 1967 as
amended (including the Older Workers Benefit Protection Act), the Equal Pay
Act, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of
1991, Americans with Disabilities Act, Family Medical Leave Act, ERISA and the
Kentucky Civil Rights Act, except for any claims arising under this Agreement
and Release.  Employee understands that
Employee may be giving up some claim, demand or cause of action, which Employee
now has or may have, and of which Employee may be unaware.  Employee understands and agrees that this
Agreement and Release shall be a complete defense and bar to any legal action
that Employee may take regarding Employee’s employment or separation from employment
with Republic, that any such action will be in violation of this Agreement and
that Republic will be entitled to recover any and all damages which it may
incur as a result of such action, including recovery of the severance amount
and its costs and attorney’s fees.

 

1

 

Employee agrees to keep the terms, conditions and
existence of this Agreement and Release confidential.  Employee agrees that Employee may discuss
such matters only with Employee’s spouse, attorney and accountant or tax
preparer.  To the extent Employee is
permitted to disclose and does disclose such information, Employee agrees to
require that the person receiving such information shall maintain its confidentiality.

 

Employee understands and agrees that he must continue
to report any transactions in Republic Bancorp shares to Republic and file all
necessary reports for a period of six months from the Separation Date.

 

Employee agrees not to disparage Republic, its
employees or customers.

 

It is understood and agreed that this Agreement and
Release does not and shall not constitute an admission by Republic of any
violation of any law or right of Employee.

 

Employee acknowledges that Employee has seven days
after execution of this Agreement and Release to revoke it.  If Employee desires to revoke this Agreement
and Release after execution, Employee must notify Republic in writing on or
before 11:59 p.m. on the seventh day after Employee’s execution of this
agreement.  This agreement shall not become
effective or enforceable, and the consideration described above shall not be
payable, until the revocation period described in this Paragraph has expired
without a revocation.

 

Employee agrees that beginning on date of this
agreement and for period of six (6) months following the Separation Date,
Employee shall not become employed, directly or indirectly, whether as an
employee, independent contractor, consultant, or otherwise, with any
federally-insured financial institution, financial holding company, bank
holding company, or other financial services provider located in the
Louisville, Kentucky area or within 100 miles thereof, or with any Person whose
intent it is to organize another such company or entity located in such area.  Employee further agrees that during a period of one (1) year
following the Separation Date, Employee will not: (i) directly or
indirectly solicit or divert or attempt to solicit or divert from Republic or
its branches, subsidiaries or affiliates, any banking business of any customer
which is now, or which was at any time during Employee’s employment, a customer
of or specifically targeted by Republic or its branches, subsidiaries or
affiliates; or (ii) directly or indirectly, individually or on behalf of
any other person, corporation, firm or other entity, solicit, recruit or
encourage any employee of Republic, its branches, subsidiaries or affiliates to
terminate his or her employment with Republic, its branches, subsidiaries or
affiliates. Employee agrees that the duration of the non-competition and
non-solicitation covenants set forth herein is reasonable, that their
geographic scope is not unduly restrictive and that the covenants will not
prevent him from finding other gainful employment.

 

Employee will return to Republic the original and any
copies of all keys, identification cards, charge cards, equipment, papers,
reports, memoranda, confidential information in any form, files or documents or
other items of Republic’s property on or before the date of Employee’s
execution of this agreement.  Employee
acknowledges that the Company has returned to Employee all items of Employee’s
personal property.

 

Any claims concerning the meaning, application and/or
interpretation of this Agreement and Release, any matter which relates to Employee’s
employment and arises after the date of this Agreement and Release (except any
claims arising from the violation of the Agreement described in Paragraph 9
above), or any claim of breach of or failure to perform this Agreement and
Release shall be settled solely by binding arbitration in accordance with the
Employment Dispute Resolution Rules of the American Arbitration
Association.  Any arbitration decision
shall be fully binding on both parties and judgment on the award rendered by
the arbitrator may be entered in any court having jurisdiction thereof.  Each party shall pay the fees and costs of
presenting its case in arbitration.  All
other costs of arbitration, including the cost of any transcript of the
proceedings, administrative fees, and the arbitrator’s fees shall be borne
equally by the parties.  Any arbitration
hearing shall take place in the Louisville metropolitan area (unless otherwise
agreed by the parties), and Kentucky law shall govern.  The parties, and each of them, agree that the
remedy, if any, awarded by such arbitrator shall be the sole and exclusive
remedy for each and every claim which is subject to arbitration pursuant to
this paragraph.  Any award by the
arbitrator shall, unless both parties agree in writing otherwise, be in writing
and shall set forth the factual and legal basis for such award.

 

Employee understands that this agreement includes a
complete waiver of claims, including but not limited to claims under the Age
Discrimination in Employment Act of 1967 as amended.  Employee specifically acknowledges the
following:

 

2

 

(a)           Employee has read this Agreement including the full release of claims
and fully understands its terms;

 

(b)           This Agreement and the full release of claims are written in a manner
Employee can understand, and Employee fully understands this Agreement and the
full release of claims;

 

(c)           Employee is voluntarily entering into this Agreement knowingly of
Employee’s own free will;

 

(d)           The waiver specifically refers to rights or claims arising under the
Age Discrimination in Employment Act of 1967 as amended;

 

(e)           Employee has not waived any rights arising after the date that Employee
executes this Agreement;

 

(f)            The payments and benefits and other consideration
provided by this Agreement are in addition to anything of value to which
Employee is already entitled;

 

(g)           Employee has been advised in writing to consult with an attorney prior
to executing this Agreement and has had an opportunity to review this Agreement
with an attorney;

 

(h)           Employee has been given a period of twenty-one days to consider this
Agreement;

 

(i)            The Agreement provides Employee with a period of
seven days to revoke the Agreement; and

 

(j)            The Agreement will not become effective until the
eighth day following its execution by Employee.

 

If Employee signs the agreement prior to the expiration of the
twenty-one days given to Employee within which to consider this Agreement,
Employee does so voluntarily and of Employee’s own free will.

 

This Agreement and Release constitutes the entire
understanding and agreement between the parties as to the subject matter hereof
and supersedes all other oral or written promises or representations.

 

The invalidity, illegality or unenforceability of any
provision of this Agreement shall not affect the validity, legality or
enforceability of the remaining provisions. 
Should this Agreement and Release be held invalid or unenforceable (in
whole or in part) with respect to any particular claims or circumstances, it
shall remain fully valid and enforceable as to all other claims and
circumstances.

 

This Agreement and Release shall be construed in
accordance with the laws of the Commonwealth of Kentucky.

 

I ACKNOWLEDGE THAT I HAVE READ AND FULLY UNDERSTAND ALL OF THE
PROVISIONS OF THIS AGREEMENT AND RELEASE AND THAT I AM ENTERING INTO THIS
AGREEMENT AND RELEASE FREELY AND VOLUNTARILY. 
I UNDERSTAND THIS AGREEMENT AND RELEASE INCLUDES A FULL GENERAL RELEASE
OF ALL CLAIMS.

 

3

 

	
  David
  Vest 

  	
   

  	
  Republic
  Bank & Trust Company 

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ David Vest 

  	
   

  	
  By

  	
  :/s/
  John Rippy 

  
	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
   David
  Vest 

  	
   

  	
  Its

  	
  :
  SVP and Risk Management Officer 

  
	
   

  	
   

  	
   

  
	
  Date
  :

  	
   4-30-08

  	
   

  	
  Date
  :

  	
   4/30/08

  
									

 

4

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