Document:

Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 19th
day of November, 2004, by and between CoBiz, Inc., a
Colorado corporation (“Company”), and Steven Bangert
(“Employee”).

 

WITNESSETH:

 

WHEREAS,
Company desires Employee to become employed by Company and Employee desires to
become employed by Company upon the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, the parties agree as follows:

 

1.               EMPLOYMENT.  Company hereby agrees to employ Employee, and
Employee hereby agrees to be employed by Company, as (a) Chairman of the
Company, (b) Chief Executive Officer of the Company and  (c) such other or different executive
capacities as may be determined from time to time by the Boards of Directors of
Company.

 

2.               RESPONSIBILITIES
OF EMPLOYMENT.  During the term of
his employment, Employee:

 

(a)                        shall
diligently and faithfully serve Company and CoBiz
Bank, N.A. (“Bank”) in such executive capacities as may be determined from time
to time by the Boards of Directors of Company and the Bank, and he shall devote
his best efforts and entire business time, services and attention to the
advancement of Company’s interests;

 

(b)                       shall
not, without the prior written consent of the Board of Directors of Company,
engage in any other employment or business, directly or indirectly, as a sole
proprietor, a member of a partnership or limited liability company, as a
director, officer, employee or shareholder of a corporation not affiliated with
Company, or as a consultant or otherwise, whether for compensation or
otherwise, which could reasonably be expected to or does interfere with
Employee’s performance of his duties hereunder or which business is in
competition in any way with the business then being conducted by Company or
the  Bank; provided, however, that the
provisions of this subparagraph (b) shall not be deemed to prohibit Employee’s
ownership of stock in any publicly owned corporation so long as Employee’s
ownership, directly and indirectly, when aggregated with the direct and
indirect ownership of all members of Employee’s family, does not exceed one
percent (1%) of the total outstanding stock of such publicly owned corporation,
measured by reference to either market value or voting power;

 

(c)                        shall
diligently and faithfully carry out the policies, programs and directions of
the Boards of Directors of Company and the Bank;

 

(d)                       shall
fully cooperate with such other officers of the Company and the Bank as may be
elected or appointed by the Boards of Directors of Company and the Bank; and

 

(e)                        shall report to the Board of Directors of Company.

 

3.               COMPENSATION.  Company will compensate Employee for his
services during the term of this Agreement and his employment hereunder as
follows:

 

(a)                        Basic
Compensation.  Company shall pay to
Employee as basic compensation the sum of Four-Hundred Thousand Dollars
($400,000.00) per year, payable in accordance with Company’s normal payroll
schedule.  Employee’s basic compensation
may be increased from time to time in the sole discretion of Company’s Board of
Directors.

 

(b)                       Benefits.  Employee shall be entitled to use a Company
automobile (model and year to be agreed upon from time to time by Employee and
Company’s Chairman of the Compensation Committee) in the course of performing
his duties hereunder and shall be entitled to participate in any and all other
benefits from time to time afforded executive employees of Company, including,
without limitation, health, accident, hospitalization and life insurance
programs.  Company shall additionally pay
the monthly (not initial or initiation) dues for Employee at a country, health
or social club to be agreed upon by Employee and Company’s Chairman of the
Compensation Committee.

 

 

(c)                        Reimbursement
of Expenses.  Employee shall be
entitled to reimbursement of ordinary and necessary out-of-pocket expenses
reasonably incurred by him on behalf of Company in the course of performing his
duties hereunder, subject to his furnishing appropriate documentation relative
to such expenses in form and substance satisfactory to Company.

 

(d)                       Vacations.  Employee shall be entitled to four (4) weeks
paid vacation each year, subject to Company’s general vacation policy.

 

(e)                        Discretionary
Bonus Plan.  Company has a
discretionary bonus plan for key executives. 
Employee shall be entitled to participate in such discretionary bonus
plan.

 

(f)                          Stock
Option.  Company has an Incentive
Stock Option Plan (the “Plan”) for key employees.  Employee shall be entitled to participate in
the Plan.

 

(g)                       Allocations.  As Company and Employee intend that Employee
will be a dual employee of Company and the Bank, and that Employee will be
devoting substantial time and attention to the affairs of the Bank, Company may
allocate to the Bank any portion of Employee’s basic and other compensation
that Company and the Bank deem to be a lawful and appropriate allocation, but
no such allocation will relieve Company of any of its obligations to Employee
under this Agreement.

 

4.               TERM
AND TERMINATION.

 

(a)                        Term.  The term of this Agreement shall commence on
the date hereof and shall continue until employee’s employment hereunder is
terminated by Company or Employee as provided in Section 4(b).

 

(b)                       Termination.  Either Company or Employee may terminate this
Agreement and Employee’s employment with the Company hereunder at any time by
written notice to the other specifying the effective date of the
termination.  In the case of a
termination by Employee, the effective date of termination shall be no less
than 30 days after the notice is given; provided that, at any time after
receipt of a notice of termination from Employee, Company may elect to
accelerate the effective date of termination, but such accelerated termination
shall still be deemed a termination by Employee.  This Agreement and Employee’s employment with
Company shall automatically terminate upon Employee’s death or Disability (as
defined in Paragraph 4(d)).  Upon any
termination, Company shall pay to Employee or Employee’s estate the
compensation and expense reimbursements accrued under Paragraph 3 through the
effective date of termination, but shall not be obligated to make any other
payment to Employee except as expressly provided in Paragraph 4(c).

 

(c)                        Severance.  In the event that Employee’s employment is
terminated (A) by the Company without Cause (as defined in Paragraph 4(d)), (B)
by Employee within 60 days after Employee is Constructively Discharged (as
defined in Paragraph 4(d)), (C) by Employee within 24 months after a Change of
Control (as defined in Paragraph 4(d)) or (D) as a result of Employee’s death
or Disability, the Company shall pay to Employee or Employee’s estate, in
addition to amounts accrued under Paragraph 3 through the date of termination,
the following severance benefits in lieu of any other severance pay or similar
plan or policy of the Company:

 

(i)                            Twelve
(12) consecutive monthly payments each equal to one-twelfth (1/12th)
of Employee’s annual basic compensation in effect immediately prior to Employee’s
termination;

 

(ii)                         Twelve
(12) consecutive monthly payments each equal to one-twelfth (1/12th)
of the higher of (A) Employee’s discretionary bonus for the previous calendar
year, or (B) the average of Employee’s discretionary bonus for the previous
three (3) calendar years (or such fewer calendar years as Employee has been
employed), in each case prorated to the date of Employee’s termination;

 

(iii)                      For
the twelve (12) month period following the date of termination of Employee’s
employment, Company will maintain in full force and effect for the continued
benefit of Employee each employee benefit plan in which Employee was a
participant immediately prior to the date of Employee’s termination, unless an
essentially equivalent and no less favorable benefit is provided by a
subsequent employer at no additional cost to Employee.  If the terms of any employee benefit plan of
Company do not permit continued participation by Employee, then Company will
arrange to provide to Employee (at Company’s cost) a benefit substantially
similar to and no less favorable than the benefit Employee was entitled to
receive under such plan at the end of the period of coverage.  (This provision specifically is not
applicable to Employee’s automobile and club dues, which benefits end upon
Employee’s date of termination of employment.)

 

2

 

(iv)                     For
the twelve (12) month period following the date of termination of Employee’s
employment, Company will treat Employee for all purposes as an Employee under
all of Company’s retirement plans in which Employee was a participant on the
date of termination of Employee’s employment or under which Employee would
become eligible during such twelve (12) month period (hereinafter referred to
collectively as the “Plan”) . Benefits due to Employee
under the Plan shall be computed as if Employee had continued to be an Employee
of Company for the twelve (12) month period following termination of
employment.  If under the terms of the
Plan such continued coverage is not permitted, Company will pay to Employee or
Employee’s estate a supplemental benefit in an amount which, when added to the
benefits that Employee is entitled to receive under the Plan, shall equal the
amount that Employee would have received under the Plan had Employee remained
an employee of Company during such twelve (12) month period.

 

(v)                        If
any excise tax imposed under Internal Revenue Code Section 4999 or any
successor provision, as amended after the date hereof, is due and owing by
Employee as a result of any amount paid or payable pursuant to this Paragraph
4(c) , Company shall indemnify and hold Employee
harmless against all such excise taxes and any interest, penalties or costs
with respect thereto.

 

(vi)                     Except
as expressly provided in (iii) above, Company will be obligated to make all
payments that become due to Employee under this Paragraph 4(c) whether or not
he obtains other employment following termination.  The payments and other benefits provided for
in this Paragraph 4(c) are intended to supplement any compensation or other
benefits that have accrued or vested with respect to Employee or his account as
of the effective date of termination.

 

(vii)                  Company
may elect to defer any payments that may become due to Employee under this
Paragraph 4(c) if, at the time the payments become due, Company or the Bank is
not in compliance with any regulatory-mandated minimum capital requirements or
if making the payments would cause Company’s or the Bank’s capital to fall
below such minimum capital requirements. 
In this event, Company will resume making the payments as soon as it can
do so without violating such minimum capital requirements.

 

Notwithstanding the
foregoing, in the event that Employee terminates this Agreement within 24
months after a Change of Control, Employee shall be entitled to receive 299%
(rather than 100%) of the amounts specified in clauses (i)
and (ii) above and the amount specified in clause (ii) above shall be for an
entire year and not prorated to the date of termination.

 

(d)                       Definitions.  As used in this Agreement, the following
terms have the indicated meanings:

 

“Cause”
shall mean the occurrence of any one or more of the following: (1) Employee
willfully fails or neglects to perform his duties as prescribed herein, (2)
Employee is convicted of a crime that constitutes a felony or involves the
theft, embezzlement or improper use of corporate funds by Employee, (3)
Employee engages in self dealing detrimental to Company, (4) Employee attempts
to obtain any personal profit from any transaction in which Company has an
interest, or (5) Employee breaches any of the terms of Paragraphs 6 or 7 of
this Agreement.

 

“Change
of Control” will be deemed to have occurred if: (1) any person (as such term is
defined in Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as
amended (the “1934 Act”) other than a person who is a shareholder of Company as
of the date of this Agreement acquires beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the 1934 Act) of fifty percent (50%) or more of
the combined voting power of the then outstanding voting securities of Company;
(2) the individuals who were members of Company’s Board of Directors as of the
date of this Agreement (the “Current Board Members”) cease for any reason to
constitute a majority of the Board of Directors of Company or its successor;
however, if the election or the nomination for election of any new director of
Company or its successor is approved by a vote of a majority of the individuals
who are Current Board Members, such new director shall, for the purposes of
this paragraph, be considered a Current Board Member; or (3) Company’s
stockholders approve (a) a merger or consolidation of Company or the Bank and
the stockholders of Company immediately before such merger or consolidation do
not, immediately after such merger or consolidation, own, directly or
indirectly, more than fifty percent (50%) of the combined voting power of the
then outstanding voting securities of the entity surviving or

 

3

 

resulting
from such merger or consolidation in substantially the same proportion as their
ownership of the combined voting power of the outstanding securities of Company
immediately before such merger or consolidation; or (b) a complete liquidation
or dissolution or an agreement for the sale or other disposition of all or
substantially all of the assets of Company or the Bank.  Notwithstanding the foregoing, a Change of
Control will not be deemed to have occurred: (1) solely because fifty percent
(50%) or more of the combined voting power of the then outstanding voting
securities of Company are acquired by (a) a trustee or other fiduciary holding
securities under one or more employee benefit plans maintained for employees of
Company or the Bank, (b) any person pursuant to the will or trust of any
existing stockholder of Company, or who is a member of the immediate family of
such stockholder, or (c) any corporation which, immediately prior to such
acquisition, is owned directly or indirectly by the stockholders in the same
proportion as their ownership of stock immediately prior to such acquisition;
or (2) if Employee agrees in writing to waive a particular Change of Control
for the purposes of this Agreement.

 

“Constructively
Discharged” means the occurrence of any one or more of the following: (A)
Employee is removed from all of the offices described in Paragraph 1 hereof;
(B) Company fails to vest with or removes from Employee the duties,
responsibilities, authority or resources that he reasonably needs to competently
perform the duties of his office; (C) Company decreases Employee’s basic
compensation or arbitrarily and capriciously decreases Employee’s bonus; or (D)
Company transfers Employee to a location outside the Denver metropolitan area;
and in any such case, Company fails to cure any of the above within thirty (30)
days after Employee gives Company written notice of the occurrence of such
event or events.

 

“Disability”
shall mean Employee’s inability due to illness or other physical or mental
disability to substantially perform his duties as prescribed herein for a
period of forty-five (45) days within any consecutive six (6) month period, and
any action to be taken hereunder based on disability shall not be effective
until the expiration of such forty-five (45) day period.

 

(e)          Conditions
to Receipt of Severance; Continuing Obligations of Employee.  Notwithstanding anything to the contrary
contained herein, termination of Employee’s employment hereunder, for
whatsoever reason or for no reason at all, by Company or otherwise, shall not
be deemed in any way to affect Employee’s obligations under Paragraphs 6 and 7
of this Agreement, with respect to which he shall remain bound.  In the event that Employee is at any time in
violation of Paragraph 6 or 7, all rights of Employee and his estate to receive
payments or other benefits under Paragraph 4(c) shall immediately
terminate.  Further, Employee’s right to
receive payments and benefits under Paragraph 4(c) shall be conditioned upon
Employee or Employee’s estate signing releases, waivers or other documents and
following procedures that, in the reasonable judgment of Company and its
counsel, are legally effective to waive all claims that Employee may have
against Company relating in any way to the employment relationship, and if
Employee fails or refuses to do so within a reasonable time after Company’s
request, all right to receive such payments and benefits shall terminate.

 

5.               SALE
OR REORGANIZATION OF COMPANY.  This
Agreement shall not restrict the sale, transfer, consolidation, liquidation,
reorganization or disposition of the assets of Company and to the extent that
the business of Company is conducted in another form or through another entity
or entities, such entity or entities shall be obligated to fulfill Company’s
obligations hereunder.

 

6.               RESTRICTIVE
COVENANTS.  It is mutually recognized
and agreed that the services to be rendered pursuant to this Agreement by
Employee are special, unique and of extraordinary character.  Therefore, as a condition to Company’s
obligations hereunder, Employee agrees that without Company’s prior written
consent, during the term of this Agreement and for a period ending on the first
anniversary of the date of termination of his employment hereunder, whether for
Cause or otherwise, he will not in any manner, directly or indirectly, solicit
or induce any person who is or was, during the six (6) month period preceding
such solicitation or inducement, an employee or agent of Company, the Bank or
any affiliate thereof, to terminate such person’s employment or agency
relationship with Company, the Bank, or such affiliate, as the case may be, or
solicit or induce any customer of Company, the Bank or any affiliate thereof,
to become

 

4

 

a customer of any
person, firm, partnership, corporation, trust or other entity that owns,
controls or is a bank, savings and loan association, credit union, investment
advisor or similar financial institution. 
Furthermore, Employee will at no time during or subsequent to the term
of his employment by Company make any statements or take any actions which
could reasonably be expected to damage the reputation or business of Company,
the Bank or any affiliate thereof.  It is
further recognized and agreed that irreparable injury will result to Company,
its businesses and property in the event of a breach of this covenant by
Employee, that such injury would be difficult if not impossible to ascertain,
and therefore, any remedy at law for any breach by Employee of this covenant
will be inadequate and Company shall be entitled to temporary and permanent
injunctive relief without the necessity of proving actual damage to Company by
reason of any such breach.  In addition, in
the event of a breach of this covenant by Employee, Company shall also be
entitled to recover reasonable costs and attorneys’ fees incurred in connection
with the enforcement of its rights hereunder. 
Whenever used herein, Company shall be deemed to include any successors
or any other person or entity which may hereafter acquire the business of
Company or the Bank.  The foregoing
notwithstanding, should the assets of Company he disposed of in such a manner
that no purchaser thereof has acquired a going business, then Employee shall
not be bound by the covenants expressed in this paragraph.

 

7.               TRADE
SECRETS AND CONFIDENTIAL INFORMATION. 
Employee hereby covenants and agrees that he will not, except as may be
required in connection with his employment under this Agreement, directly or
indirectly, use or disclose to any other person, firm or corporation, whether
during or subsequent to the term of his employment by Company, irrespective of
the time, manner or cause of the termination of his employment, any information
of a proprietary nature belonging to Company or any of its affiliates, or which
could be reasonably expected to have an adverse effect on Company, its
businesses, property or financial condition, including but not limited to
records, data, documents, processes, specifications, methods of operation,
techniques and know-how, plans, policies, customer lists, the names and
addresses of suppliers or representatives, investigations or other matters of
any kind or description relating to the products, services, suppliers,
customers, sales or businesses of Company. 
All records, files, documents, equipment and the like relating to
Company’s businesses which Employee shall prepare, use or observe shall be and
remain the sole property of Company, and upon termination of this Agreement or
his employment hereunder for any reason, Employee shall return to the
possession of Company any items of that nature and any copies thereof which he
may have in his possession.

 

8.               INDEMNITY.

 

(a)          Indemnification.  Company will indemnify Employee (and, upon
his death, his heirs, executors and administrators) to the fullest extent
permitted by law against all expenses, including reasonable attorneys’ fees,
court and investigative costs, judgments, fines and amounts paid in settlement
(collectively, “Expenses”) reasonably incurred by him in connection with or
arising out of any pending, threatened or completed action, suit or proceeding
in which he may become involved by reason of his having been an officer or
director of Company or the Bank.  The
indemnification rights provided for herein are not exclusive and will
supplement any rights to indemnification that Employee may have under any
applicable bylaw or charter provision of Company or the Bank, or any resolution
of Company or the Bank, or any applicable statute.

 

(b)         Advancement
of Expenses.  In the event that
Employee becomes a party, or is threatened to be made a party, to any pending,
threatened or completed action, suit or proceeding for which Company or the
Bank is permitted or required to indemnify him under this Agreement, any
applicable bylaw or charter provision of Company or the Bank, any resolution of
Company or the Bank, or any applicable statute, Company will, to the fullest
extent permitted by law, advance all Expenses incurred by Employee in connection
with the investigation, defense, settlement or appeal of any threatened,
pending or completed action, suit or proceeding, subject to receipt by Company
of a written undertaking from Employee to reimburse Company for all Expenses
actually paid by Company to or on behalf of Employee in the event it shall be
ultimately determined that Company or the Bank cannot lawfully indemnify
Employee for such Expenses, and to assign to Company all rights of Employee to
indemnification under any policy of directors, and officers, liability
insurance to the extent of the amount of Expenses actually paid by Company to
or on behalf of Employee.

 

5

 

(c)          Litigation.  Unless precluded by an actual or potential
conflict of interest, Company will have the right to recommend counsel to
Employee to represent him in connection with any claim covered by this Section
8. Further, Employee’s choice of counsel, his decision to contest or settle any
such claim, and the terms and amount of the settlement of any such claim will
be subject to Company’s prior reasonable approval in writing.

 

9.               ARBITRATION.  Any disputes arising out of this Agreement or
connected with Employee’s employment shall be submitted by Employee and Company
to arbitration by the American Arbitration Association or its successor, and
the determination of the American Arbitration Association or its successor
shall be final and absolute.  The
arbitrator shall be governed by the duly promulgated rules and regulations of
the American Arbitration Association or its successor, and the pertinent
provisions of the laws of the State of Colorado relating to arbitration.  The decision of the arbitrator may be entered
as a judgment in any court in the State of Colorado or elsewhere.  The prevailing party shall be entitled to
receive reasonable attorneys’ fees incurred in connection with such arbitration
in addition to such other costs and expenses as the arbitrators may award.

 

10.         INTERPRETATION.  This Agreement shall be construed in accordance
with the internal laws of the State of Colorado.  The titles of the paragraphs have been
inserted as a matter of convenience of reference only and shall not be
construed to control or affect the meaning or construction of this Agreement.

 

11.         SEVERABILITY.  In the event that any portion of this
Agreement is found to be in violation of or conflict with any federal or state
law, the parties agree that said portion shall be modified only to the extent
necessary to enable it to comply with such law.

 

12.         ASSIGNMENT.  This Agreement shall not be assignable by
Employee, but shall be binding upon and inure to the benefit of the successors
and assigns of Company.

 

13.         NOTICES.  All notices or other communications in
connection with this Agreement shall be in writing and shall be deemed to have
been duly given when delivered, sent by professional courier or mailed first
class, postage prepaid and addressed as follows:

 

(i)                                     If
to Company, addressed to:

 

CoBiz
Inc.

821 - 17th Street

Denver, Colorado 80202

 

Attn: Noel
Rothman, Chairman of Compensation Committee

 

(ii)                                  If
to Employee, addressed to:

 

	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
   

  
	
   

  	
   

  

 

6

 

or such other address or
addressed to the attention of such other person or persons as either of the parties
may notify the other in accordance with the provisions of this paragraph.

 

14.         ENTIRE
AGREEMENT.  This Agreement is the
entire agreement and understanding of the parties hereto with respect to the
subject matter hereof and supersedes any and all prior and contemporaneous
negotiations, understandings and agreements with regard to the subject matter
hereof, whether oral or written.  No
representation, inducement, agreement, promise or understanding altering,
modifying, taking from or adding to the terms and conditions hereof shall have
any force or effect unless the same is in writing and validly executed by the
parties hereto.

 

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

 

	
   

  	
   

  	
   

  	
  CoBiz,
  Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  :/s/

  	
  Steven Bangert

  	
   

  	
  By:/s/

  	
  Noel Rothman

  	
   

  
	
   

  	
   

  	
  Steven Bangert

  	
   

  	
  Noel Rothman

  
	
   

  	
   

  	
   

  	
   

  	
  Chairman of the Compensation Committee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
							

 

7Exhibit 10.1

 

REPUBLIC BANCORP, INC.

NON-EMPLOYEE DIRECTOR AND KEY EMPLOYEE

DEFERRED COMPENSATION PLAN

 

1.             General.  This Republic Bancorp, Inc. Non-Employee
Director and Key Employee Deferred Compensation Plan (the “Plan”) is intended
to more closely align board and executive compensation with the interests of
Republic Bancorp, Inc. (the “Company”) and its shareholders, by making
available to eligible participants tax-deferred investments in Company
stock.  It is intended that the Plan be
in compliance with Section 409A of the Internal Revenue Code of 1986, as
amended, and the regulations promulgated thereunder (“Section 409A”).  It is also intended that the Plan be an
unfunded arrangement maintained for non-employee directors and for a select
group of management or highly compensated employees.  Effective upon the time that a Key Employee
Participant (as defined below) is first named on Exhibit A attached hereto, the
Plan shall be considered a 
“top hat plan” for purposes of the Employee Retirement Income Security
Act of 1974, as amended.

 

2.             Eligibility.  Eligibility in the Plan shall be granted to
the members of the Board of Directors of the Company who are not also employees
of the Company (the “Director Participants”). 
In addition, eligibility in the Plan shall be granted to the employees
of the Company who have been designated by the Compensation Committee of the
Board of Directors of the Company (the “Committee”) as being eligible for the
Plan (the “Key Employee Participants” and, together with Director Participants,
the “Participants”).  The initial Key
Employee Participants (if any) are listed in Exhibit A attached
hereto.  The Committee shall have full
power and discretion to name additional employees of the Company as Key
Employee Participants and to remove such employees as Key Employee Participants
at such times as it shall decide in its sole discretion.

 

3.             Election.

 

(a)           Director Participant Elections.  Each Director Participant may elect to defer
under the Plan up to 100% of his annual board and committee meeting fees
(collectively, “Company Board Fees”).  A
Director Participant’s election to defer a portion of his Company Board Fees
shall be made in writing and shall be effective upon receipt and acceptance by
the Company.  A new written election must
be submitted to the Company each year. 
Except in the case of a newly eligible Director Participant who may file
an election to defer within 30 days of his being eligible to participate in the
Plan, an election to defer shall be made no later than 10 days preceding
commencement of a calendar year with respect to any deferral of Company Board
Fees to be earned in such year, provided, however, that such elections shall be
made at an earlier time if required under Section 409A.  Any election may be changed in writing and
shall be effective upon receipt by the Company, but only as to fees to be
earned at and after commencement of the next succeeding calendar year.

 

(b)           Key
Employee Participant Elections.  Each
Key Employee Participant may elect to defer under the Plan up to 50% of his base salary and up to 100% of his annual
incentive compensation (collectively, “Company Compensation”).  A Key Employee Participant’s election to
defer a portion of his Company Compensation shall be made in writing

 

1

 

and shall be effective upon
receipt and acceptance by the Company.  A
new written election must be submitted to the Company each year.  Except in the case of a newly eligible Key Employee
Participant who may file an election to defer within 30 days of his designation
by the Committee as being eligible to participate in the Plan, an election to
defer shall be made no later than 10 days preceding commencement of a calendar
year with respect to any deferral of compensation to be earned in such year,
provided, however, that such elections shall be made at an earlier time if
required under Section 409A.  Any
election may be changed in writing and shall be effective upon receipt by the
Company, but only as to compensation to be earned or granted at and after
commencement of the next succeeding calendar year.

 

4.             Duration
of Deferral.  Each Participant’s
election shall specify the period of the deferral, which shall be a specified
period of years ranging from two to five years. 
Each Participant will be permitted to request one change in the period
of a deferral, provided, however, that the request shall not take effect for 12
months following the requested change and the request must be made at least 12
months before the scheduled distribution with respect to the deferral, and,
provided further, that the change must provide for an additional deferral of
five years from the original payment date.

 

5.             Deferred
Compensation Account.  The Company
shall maintain a bookkeeping account to which deferred compensation of each
Participant shall be credited at the end of each calendar month after such
compensation is earned (each a “Deferred Compensation Account”).  At the end of each fiscal quarter, the
amounts credited to each Deferred Compensation Account shall be converted into
stock units (“Stock Units”) equivalent in value to shares of Class A common
stock of the Company (“Stock”).  The
conversion of deferred compensation into Stock Units will be made on the basis
of the fair market value of the Stock on the last business day of each fiscal
quarter.  For purposes of the Plan, fair
market value of the Stock on any given date shall mean the closing price of the
Stock as reported on the NASDAQ National Market on such date or, if there is no
closing price reported on such date, on the last date preceding
such date for which a closing price was reported.

 

6.             Dividend
Equivalent.  During the term of
deferral, the Stock Units standing to the credit of each Participant’s Deferred
Compensation Account shall be credited with an amount equal to the cash
dividends that would have paid on the number of Stock Units in such Deferred
Compensation Account if such Stock Units were deemed to be outstanding shares
of Stock (“Dividend Equivalents”).  Dividend
Equivalents credited to Stock Units shall be converted to additional Stock
Units and credited to the Participant’s Deferred Compensation Account at the
end of each fiscal quarter.  The
conversion of Dividend Equivalents into Stock Units shall be made on the basis
of the fair market value of the Stock on the last business day of each fiscal
quarter.

 

7.             Changes
in Stock.  In the event of a stock
dividend, stock split, reverse stock split or similar change in capitalization
affecting the Stock, the Committee shall make appropriate adjustments in the
number of Stock Units credited to each Participant’s Deferred Compensation
Account.  The adjustment by the Committee
shall be final, binding and conclusive. 
No fractional shares of Stock shall be issued under the Plan resulting
from any such adjustment, but the Committee in its discretion may make a cash payment in lieu of fractional shares.

 

2

 

8.             Rights
of Participants.  Participation in
the Plan, and any actions taken pursuant to the Plan, shall not create or be
deemed to create a trust or fiduciary relationship of any kind between the
Company and the Participant.  The Company
may, but shall have no obligation to, establish any separate fund, reserve, or
escrow or to provide security with respect to any amounts deferred under the
Plan.  Any assets of the Company which
are set aside in any separate fund, reserve or escrow shall continue for all
purposes to be a part of the general assets of the Company, with title to the
beneficial ownership of any such assets remaining at all times in the
Company.  No Participant, nor his legal
representatives, nor any of his beneficiaries shall have any right, other than
the right of an unsecured general creditor of the Company, in respect of the
Deferred Compensation Account established hereunder, and such persons shall
have no property interest whatsoever in any specific assets of the
Company.  A Participant shall have no
rights as a stockholder, and shall not be entitled to vote, with respect to the
Stock Units credited to his Deferred Compensation Account.

 

9.             Distributions.

 

(a)           Normal
Distributions.

 

(i)            Director Participants.  Each Director Participant (or his beneficiary
in the event of his death) shall be entitled to receive all Stock Units
standing to the credit of his Deferred Compensation Account upon the earliest
to occur of: (A) the end of the deferral period; and (B) the Director
Participant’s death or total and permanent disability.  All distributions shall be paid in a single
lump sum in Stock.

 

(ii)           Key Employee Participants.  Each Key Employee Participant (or his
beneficiary in the event of his death) shall be entitled to receive all Stock
Units standing to the credit of his Deferred Compensation Account upon the earliest
to occur of: (A) the end of the deferral period; and (B) the Key Employee
Participant’s death or total and permanent disability.  All distributions shall be paid in a single
lump sum in Stock.

 

For purposes hereof, the
term “disability” shall have the meaning given such term in Section 409A.

 

(b)           Early
Distributions.  A Participant will
only be permitted to receive a distribution of his Deferred Compensation
Account prior to the times specified in Section 9(a) above in accordance with
the applicable provisions of Section 409A.

 

(c)           Change in Control. 
A Participant will be permitted to receive a distribution of his
Deferred Compensation Account to the extent permitted under Section 409A upon a
change of ownership or effective control of the Company or in the ownership of
a substantial portion of the assets of the Company.

 

(d)           Fractional
Shares.  In the Committee’s
discretion, a cash payment (based on the fair market value of the Stock on the
last business day prior to a distribution) shall be made in lieu of any
fractional shares.

 

3

 

10.           Tax
Withholding.

 

(a)           Payment
by Participant.  Each Participant
shall, no later than the date as of which his Stock Units or payments received
thereunder first become includible in the gross income of the Participant for
Federal income or employment tax purposes, pay to the Company, or make
arrangements satisfactory to the Committee regarding payment of, any Federal,
state, or local taxes of any kind required by law to be withheld with respect
to such income.  The Company shall, to
the extent permitted by law, have the right to deduct any such taxes from any
payment of any kind otherwise due to the Participant.  The Company’s obligation to make any payments
to any Participant is subject to and conditioned on tax obligations being
satisfied by the Participant.  The
Company shall report amounts deferred hereunder to the Internal Revenue Service
in accordance with the requirements of Section 409A.

 

(b)           Payment
in Stock.  Subject to approval by the
Committee, a Participant may elect to have the minimum required Federal, state,
other income and employment tax statutory withholding obligation satisfied, in
whole or in part, by (i) authorizing the Company to withhold from shares of
Stock to be issued pursuant to the Plan a number of shares with an aggregate
fair market value (as of the date the withholding is effected) that would
satisfy the withholding amount due, or (ii) transferring to the Company shares
of Stock owned by the Participant, and that have been held by the Participant
for at least six months, with an aggregate fair market value (as of the date
the withholding is effected) that would satisfy the withholding amount due.

 

11.           Beneficiary.  If a Participant dies before he has received
full payment of the amount credited to his Deferred Compensation Account, such
unpaid portion shall be paid to the Participant’s primary or contingent
beneficiary as designated by the Participant in writing.  If no beneficiary has been designated or if a
designated beneficiary has predeceased the Participant, such unpaid portion
shall be paid first to the Participant’s spouse, or, if there is no spouse, to
the Participant’s children per stirpes, or, if there are no
spouse or children, to the Participant’s estate.

 

12.           No
Assignment.  The deferred
compensation payable under this Plan shall not be subject to alienation,
assignment, garnishment, execution, or levy of any kind, and any attempt to
cause any compensation to be so subjected shall not be recognized.

 

13.           Expenses.  All expenses incurred, or taxes paid by the Company, and attributable to a Participant’s Deferred
Compensation Account shall be borne by the Company and shall not reduce the
amount credited to such Deferred Compensation Account.

 

14.           Amendment
and Termination.  This Plan may be
amended in any way or may be terminated, in whole or in part, at any time, and
from time to time, by the Board of Directors of the Company.  The foregoing provisions of this paragraph
notwithstanding, no amendment or termination of the Plan shall adversely reduce
the number of Stock Units credited to the Deferred Compensation Accounts prior
to the effective date of such amendment or termination or, except to the extent
permitted under Section 409A, accelerate the timing of payment from the
Deferred Compensation Accounts. 
Notwithstanding the foregoing, the Board of Directors specifically
reserves the right to amend the Plan as necessary to comply with Section 409A.

 

15.           Plan
Administration.  The Board of
Directors of the Company shall have the exclusive discretionary authority to
determine the amounts of benefits under the Plan, make factual determinations,
construe and interpret terms of the Plan, supply omissions and determine

 

4

 

any questions which may arise in connection with its
operation and administration.  Its
decisions or actions in respect thereof, including any determination of any
amount credited or charged to the Participants’ Deferred Compensation Accounts
or the amount or recipient of any payment to be made therefrom, shall be
conclusive and binding for all purposes upon the Company and upon any and all
Participants, their beneficiaries, and their respective heirs, distributees,
executors, administrators and assignees. 
In the case of the administration of the Plan with respect to Key
Employee Participants only, the authority of the Board of Directors described
herein may be exercised by the Committee.

 

16.           Binding
Effect.  The terms of this Plan shall
be binding upon and shall inure to the benefit of the Company and its
successors or assigns and each Participant and his Beneficiaries, heirs,
executors, and administrators.

 

17.           Limitation
of Liability.  Subject to its
obligation to pay the amount credited to the Participant’s Deferred
Compensation Account at the time distribution is called, neither the Company,
any person acting on behalf of the Company, the Board of Directors, nor the
Committee shall be liable for any act performed or the failure to perform any
act with respect to the terms of the Plan, except in the event that there has
been a judicial determination of willful misconduct on the part of the Company,
such person, the Board of Directors or the Committee.

 

18.           Governing
Law.  This Plan, and all actions
taken hereunder, shall be governed by and construed in accordance with the laws
of the State of Kentucky, except as such laws
may be superseded by any applicable Federal laws.

 

19.           Accounting.  The Company shall provide statements to Participants
showing the amounts standing to the credit of their Deferred Compensation
Accounts no less frequently than once a year.

 

20.           Claims
Procedure.

 

(a)           All
claims for benefits under this Plan shall be filed in writing with the Board of
Directors in accordance with such procedures as the Board shall reasonably
establish.

 

(b)           The
Board of Directors shall, within 90 days of submission of a claim, provide
adequate notice in writing to any claimant whose claim for benefits under the
Plan has been denied.  Such notice shall
contain the specific reason or reasons for the denial and references to
specific Plan provisions on which the denial is based.  The Board shall also provide the claimant
with a description of any material or information which is necessary in order
for the claimant to perfect his claim and an explanation of why such
information is necessary.  If special
circumstances require an extension of time for processing the claim, the Board
shall furnish the claimant a written notice of such extension prior to the
expiration of the 90-day period.  The
extension notice shall indicate the reasons for the extension and the expected
date for a final decision, which date shall not be more than 180 days from the
initial claim.

 

(c)           The
Board of Directors shall, upon written request by a claimant within 60 days of
receipt of the notice that his claim has been denied, afford a reasonable
opportunity to such claimant for a full and fair review by the Board of the
decision denying the claim.  The

 

5

 

Board
will afford the claimant an opportunity to review pertinent documents and
submit issues and comments in writing. 
The claimant shall have the right to be represented.

 

(d)           The
Board of Directors shall, within 60 days of receipt of a request for a review,
render a written decision on its review. 
If special circumstances require extra time for the Board to review its
decision, the Board will attempt to make its decision as soon as practicable,
and in no event will the Board take more than 120 days to send the claimant a
written notice of its decision.

 

21.           Source
of Shares.  Shares of Stock reserved
under the Company’s 1995 Stock Option Plan shall be used to satisfy any
obligations to distribute Stock under this Plan; provided, however, that such
Stock when issued shall not be governed by the restrictions on transfer
provided in Section 9 of the 1995 Stock Option Plan.

 

22.           Effective
Date.  This Plan shall be effective
as of January 1, 2005.

 

IN WITNESS WHEREOF, this Plan has been signed and
sealed for and on behalf of the Company by its duly authorized officer this 18th
day of November, 2004.

 

	
   

  	
  REPUBLIC
  BANCORP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Kevin Sipes

  	
   

  
	
   

  	
   

  	
  Name:
  Kevin Sipes

  
	
   

  	
   

  	
  Title:
  Executive Vice President & CFO

  

 

6

 

REPUBLIC BANCORP, INC.

NON-EMPLOYEE DIRECTOR AND KEY EMPLOYEE

DEFERRED COMPENSATION PLAN

Director
Participant Election to Defer Compensation

 

A.            The undersigned Director Participant hereby elects,
pursuant to Paragraph 3 of the Republic Bancorp, Inc. Non-Employee Director and
Key Employee Deferred Compensation Plan (the “Plan”), to defer payment of fees
becoming payable by Republic Bancorp, Inc. (the “Company”) to the undersigned
as follows:

 

The amount of 20      Board
fees to be deferred is                 %.

 

The amount of 20     
Committee fees to be deferred is                 %.

 

The above election shall take effect for the indicated
calendar year upon receipt and acceptance of this election by the Company, and
it shall remain in effect during the indicated calendar year.  This deferral election is only valid for the
indicated year above.  A new deferral
election must be completed for each subsequent year.  Such election must be submitted to and
accepted by the Company prior to December           
of the year prior to the year in which such deferral election relates.

 

B.            Pursuant to Paragraph 4 of the Plan, the undersigned
hereby elects the following payment option:

 

             Single
lump sum payment on January 31,              .  [Two to five years.]

 

C.            Pursuant to Paragraph 11 of the Plan, the undersigned
hereby designates the following as his beneficiary or beneficiaries under the
Plan:

 

	
  Primary Beneficiary(ies)*

  Name and Address

  	
   

  	
  Relationship

  	
   

  	
  Share

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

*In community property states, need spouse’s consent to name an
individual other than the spouse.

 

	
  Contingent Beneficiary(ies)

  Name and Address

  	
   

  	
  Relationship

  	
   

  	
  Share

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

7

 

Executed this                
day of                              ,
2004.

 

	
   

  	
   

  	
   

  
	
   

  	
  Participant

  
	
   

  	
   

  	
   

  
	
   

  	
  Receipt
  of a copy of the foregoing election

  form is hereby acknowledged.

  
	
   

  	
   

  	
   

  
	
   

  	
  REPUBLIC
  BANCORP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Date:

  
					

 

8

 

REPUBLIC BANCORP, INC. 

NON-EMPLOYEE DIRECTOR AND KEY EMPLOYEE

DEFERRED COMPENSATION PLAN

Key
Employee Participant Election to Defer Compensation

 

A.            The
undersigned Key Employee Participant hereby elects, pursuant to Paragraph 3 of
the Republic Bancorp, Inc. Non-Employee Director and Key Employee Deferred
Compensation Plan (the “Plan”), to defer payment of compensation becoming
payable by Republic Bancorp, Inc. (the “Company”) to the undersigned as
follows:

 

The amount of 20       
base salary to be deferred is                %
(not to exceed 50%).

 

The amount of 20       
incentive compensation to be deferred is              %
(not to exceed 100%) but not more than $               .

 

The above election shall take effect for the indicated
calendar year upon receipt and acceptance of this election by the Company, and
it shall remain in effect during the indicated calendar year.  This deferral election is only valid for the
indicated year above.  A new deferral
election must be completed for each subsequent year.  Such election must be submitted to and
accepted by the Company prior to December             
of the year prior to the year in which such deferral election relates.

 

B.            Pursuant
to Paragraph 4 of the Plan, the undersigned hereby elects the following payment
option:

 

             Single lump sum payment on January 31,             
[Two to five years].

 

C.            Pursuant
to Paragraph 11 of the Plan, the undersigned hereby designates the following as
his beneficiary or beneficiaries under the Plan:

 

	
  Primary Beneficiary(ies)*

  Name and Address

  	
   

  	
  Relationship

  	
   

  	
  Share

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Contingent Beneficiary(ies)

  Name and Address

  	
   

  	
  Relationship

  	
   

  	
  Share

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

*In community property states, need spouse’s consent to name an
individual other than the spouse.

 

9

 

Executed this              
day of                                    ,
2004.

 

	
   

  	
   

  	
   

  
	
   

  	
  Participant

  
	
   

  	
  Receipt
  of a copy of the foregoing election

  form is hereby acknowledged.

  
	
   

  	
   

  	
   

  
	
   

  	
  REPUBLIC
  BANCORP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Date:

  
						

 

10

 

REPUBLIC BANCORP, INC.

EMPLOYEE DIRECTOR AND KEY EMPLOYEE

DEFERRED COMPENSATION PLAN

EXHIBIT
A

Key
Employee Participants

 

None.

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}]]