Document:

knd-ex103_417.htm

 

EXHIBIT 10.3

AMENDMENT NO. 2 TO THE ABL CREDIT AGREEMENT

AMENDMENT NO. 2 dated as of June 3, 2015 (this “Amendment”), by and among KINDRED HEALTHCARE, INC., a Delaware corporation (the “Borrower”), JPMORGAN CHASE BANK, N.A., as Administrative Agent (the “Administrative Agent”), and the CONSENTING LENDERS (as defined below) to the Credit Agreement referred to below.

WHEREAS, the Borrower, the Administrative Agent, the other agents, arrangers and bookrunners party thereto and each Lender from time to time party thereto are parties to  the Third Amended and Restated ABL Credit Agreement dated as of February 2, 2015, as amended by the Incremental Joinder, dated as of December 12, 2014, and effective as of February 2, 2015 (as further amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms thereof, the “Credit Agreement”);

WHEREAS, pursuant to Section 10.02(b) of the Credit Agreement, the consent of the Borrower and the Lenders who comprise at least the “Required Lenders” (as defined in the Credit Agreement) is required to effect this Amendment and the amendments set forth herein; and

WHEREAS, subject to the terms and conditions set forth herein, each Person signing in the capacity of a “Lender” delivering an executed signature page to this Amendment to the Administrative Agent at or prior to 2:00 p.m., New York City time, on June 3, 2015 (each such Person, or its successor or assigns, as applicable, a “Consenting Lender” and, collectively, the “Consenting Lenders”) has consented to this Amendment and agreed to the amendments set forth in Section 2 below, which shall become effective upon the Amendment Effective Date (as defined below).

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Administrative Agent and the Consenting Lenders hereby agree as follows:

Section 1. Defined Terms.  Capitalized terms used herein (including in the recitals hereto) and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement.  The rules of construction specified in Section 1.03 of the Credit Agreement also apply to this Amendment mutatis mutandis.

Section 2. Amendments to Section 7.13.   The Borrower, the Administrative Agent and the Consenting Lenders agree that, upon the Amendment Effective Date (as defined below), Section 7.13 of the Credit Agreement shall be amended by:

	
(i)
	
deleting: “Following the completion of the time period set forth clause (v) of Schedule 5.14(b) (as such time period may be extended in accordance with such clause), the” at the beginning of Section 7.13;

	
(ii)
	
replacing “Restricted Subsidiaries” appearing therein with “Subsidiary Guarantors”;

	
(iii)
	
replacing “$2,000,000” appearing therein with “$10,000,000”;

	
(iv)
	
adding “7.13” after “this Section” and before “shall not apply” appearing in the proviso therein;

 

 

 

 

 

	
(v)
	
adding “(i)” after “apply to” and before “deposits” appearing in the proviso therein; and

	
(vi)
	
adding: “, (ii) zero-balance accounts and accounts used exclusively as payroll, withholding tax, escrow and other fiduciary accounts or (iii) with respect to any Subsidiary Guarantor that is acquired in an Acquisition, any funds or Temporary Cash Investments held by such Subsidiary Guarantor until 60 days (or such longer period as the Administrative Agent shall agree to in its reasonable discretion) after the date such Subsidiary Guarantor becomes a Subsidiary Guarantor” immediately before the “.” appearing at the end of such Section.

Section 3. Representations Correct.  By its execution of this Amendment, the Borrower hereby certifies as of the date hereof that:

(a) This Amendment has been duly authorized by all necessary corporate or other organizational action and has been duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except to the extent the enforceability thereof may be limited by applicable debtor relief laws affecting creditors’ rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law) and implied covenants of good faith and fair dealing.

(b) The execution, delivery and performance of this Amendment and the other documents executed in connection herewith (i) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except for such as (x) have been obtained or made and are in full force and effect, or (y) the failure of which to obtain would not reasonably be expected to result in a Material Adverse Effect, (ii) will not violate any Applicable Laws with respect to the Borrower or the Organizational Documents of the Borrower, except to the extent that such violation would not reasonably be expected to result in a Material Adverse Effect, (iii) will not violate or result in a default under any contractual obligation to which the Borrower is party, except to the extent that such violation or default would not reasonably be expected to result in a Material Adverse Effect and (iv) will not result in the creation or imposition of any Lien on any asset of the Borrower (other than Permitted Liens).

Section 4. Effectiveness of this Amendment.  The “Amendment Effective Date” shall be the date on which the following conditions shall have been satisfied:

(a) The Administrative Agent (or its counsel) shall have received from (i) the Borrower, (ii) the Consenting Lenders who comprise at least the Required Lenders and (iii) the Administrative Agent, either (x) counterparts of this Amendment signed on behalf of such parties or (y) written evidence satisfactory to the Administrative Agent (which may include facsimile or other electronic transmissions of signed signature pages) that such parties have signed counterparts of this Amendment.

(b) Immediately before and immediately after the Amendment Effective Date, (i) no Event of Default shall have occurred and be continuing and (ii) the representations and warranties (x) of the Borrower set forth in the Financing Documents and (y) in Section 3 of this Amendment shall be true and correct in all material respects as of such date (it being understood that, to the extent that any such representation and warranty specifically refers to an earlier date, it shall be true and correct in all material respects as of such earlier date and any such representation and warranty that is qualified as to “materiality,” “material adverse effect” or similar language shall be true and correct in all respects (after giving effect to any such qualification therein)).

 

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 (c) The Administrative Agent shall have received a certificate of an appropriate officer of the Borrower certifying that the conditions set forth in Section 4(b) of this Amendment have been satisfied.

(d) The Administrative Agent shall have received on or prior to the Amendment Effective Date, in immediately available funds, payment or reimbursement (or the Borrower shall have made arrangements reasonably satisfactory to the Administrative Agent for such payment or reimbursement) of all costs and out-of-pocket expenses then due and payable in connection with this Amendment, including all reasonable invoiced fees and expenses of Cahill Gordon & Reindel LLP, as counsel to the Administrative Agent, to the extent invoiced at least two (2) Business Days prior to the Amendment Effective Date.

(e) The Administrative Agent shall have received a duly executed certificate of an appropriate officer of the Borrower, certifying (i) that the copies of the Borrower’s Organizational Documents (x) as previously certified and delivered to the Administrative Agent, remain in full force and effect as of the Amendment Effective Date without modification or amendment since such original delivery or (y) as certified as of a recent date by the appropriate Governmental Authority of the jurisdiction of the Borrower’s formation and attached to such officer’s certificate, are true, correct and complete and in full force and effect as of the Amendment Effective Date, (ii) that the copies of the Borrower’s resolutions approving and adopting the Financing Documents to which it is party, the transactions contemplated herein, and authorizing the execution and delivery thereof, as attached to such officer’s certificate, are true, correct and complete copies  and in full force and effect as of the Amendment Effective Date and (iii) as to incumbency certificates identifying the officers of the Borrower that are authorized to execute this Amendment and to act on the Borrower’s behalf in connection with this Amendment.

(f) The Administrative Agent shall have received a certificate of good standing for the Borrower from the Borrower’s jurisdiction of formation, certified as of a recent date by the appropriate Governmental Authority. 

The Administrative Agent shall notify the Borrower, the Consenting Lenders and the other Lenders of the Amendment Effective Date and such notice shall be conclusive and binding.

Section 5. Amendment, Modification and Waiver.  This Amendment may not be amended, modified or waived except pursuant to a writing signed by each of the parties hereto.

Section 6. Liens Unimpaired.  After giving effect to this Amendment, neither the modification of the Credit Agreement effected pursuant to this Amendment nor the execution, delivery, performance or effectiveness of this Amendment:

(a) impairs the validity, effectiveness or priority of the Liens granted pursuant to any Financing Document, and such Liens continue unimpaired with the same priority to secure repayment of all Obligations, whether heretofore or hereafter incurred; or

(b) requires that any new filings be made or other action taken to perfect or to maintain the perfection of such Liens.

Section 7. Entire Agreement.  This Amendment constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties hereto with respect to the subject matter hereof.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of any party under, the Credit Agreement, nor alter, modify, amend or in any way affect any of the terms, conditions, 

 

-3-

 

obligations, covenants or agreements contained in the Credit Agreement, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  It is understood and agreed that each reference in each Financing Document to the Credit Agreement, whether direct or indirect, shall hereafter be deemed to be a reference to the Credit Agreement as amended hereby and that this Amendment is a “Financing Document.”

Section 8. GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  SECTIONS 10.09 AND 10.10 OF THE CREDIT AGREEMENT ARE HEREBY INCORPORATED BY REFERENCE INTO THIS AMENDMENT AND SHALL APPLY HERETO.

Section 9. Severability.  If any provision of this Amendment is held to be illegal, invalid or unenforceable, the legality, validity and enforceability of the remaining provisions of this Amendment shall not be affected or impaired thereby.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

Section 10. Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery by facsimile or other electronic means of an executed counterpart of a signature page to this Amendment shall be effective as delivery of an original executed counterpart of this Amendment.

Section 11. Headings.  The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

[Remainder of Page Intentionally Left Blank]

 

 

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective authorized signatories as of the day and year first above written.

	
KINDRED HEALTHCARE, INC., as Borrower

	
 
	
 

	
By:
	
/s/ Joseph L. Landenwich

	
Name:
	
Joseph L. Landenwich

	
Title:
	
Co-General Counsel and Corporate Secretary

 

 

 

 

[Signature Page to Amendment No. 2 to ABL Credit Agreement]

 

	
JPMORGAN CHASE BANK, N.A., as Administrative Agent and as a Lender

	
 
	
 

	
By:
	
/s/ Dawn Lee Lum

	
 
	
Name:
	
Dawn Lee Lum

	
 
	
Title:
	
Executive Director

 

 

 

 

[Signature Page to ABL Agreement No. 2]

 

	
BARCLAYS BANK PLC, as Lender

	
 

	
By:
	
/s/ Marguerite Sutton

	
 
	
Name:
	
Marguerite Sutton

	
 
	
Title:
	
Vice President

 

 

 

 

[Signature Page to ABL Agreement No. 2]

 

Consenting Lenders

The undersigned Lender hereby irrevocably and unconditionally approves the Amendment and consents to the certain amendments set forth therein.

 

	
Compass Bank

	
 

	
By:
	
/s/ Michael Sheff

	
 
	
Name:
	
Michael Sheff

	
 
	
Title: 
	
Senior Vice President

 

 

 

 

[Signature Page to ABL Agreement No. 2]

 

Consenting Lenders

The undersigned Lender hereby irrevocably and unconditionally approves the Amendment and consents to the certain amendments set forth therein.

 

	
BMO Harris Bank NA

	
 
	
 

	
By:
	
/s/ Kara Goodwin

	
 
	
Name:
	
Kara Goodwin

	
 
	
Title:
	
Managing Director

 

 

 

 

[Signature Page to ABL Agreement No. 2]

 

	
BOKF, NA dba BANK OF OKLAHOMA

	
 

	
By:
	
/s/ Christopher Rollmann

	
 
	
Name:
	
Christopher Rollmann

	
 
	
Title:
	
Officer

 

	
If a second signature is required:

	
 

	
By:  
	
 

	
 
	
Name:
	
 

	
 
	
Title:
	
 

 

[Signature Page to ABL Agreement No. 2]

 

Consenting Lenders

The undersigned Lender hereby irrevocably and unconditionally approves the Amendment and consents to the certain amendments set forth therein.

 

	
Capital One, N.A.

	
 

	
By:
	
/s/ J. Stephen Klose

	
 
	
Name:
	
J. Stephen Klose

	
 
	
Title:
	
Authorized Signatory

 

	
If a second signature is required:

	
 

	
By:
	
 

	
 
	
Name:
	
 

	
 
	
Title:
	
 

 

[Signature Page to ABL Agreement No. 2]

 

Consenting Lenders

The undersigned Lender hereby irrevocably and unconditionally approves the Amendment and consents to the certain amendments set forth therein.

 

	
CIT Finance, LLC

	
 

	
By:
	
/s/ Edward Shuster

	
 
	
Name:
	
Edward Shuster

	
 
	
Title:
	
Director

 

	
If a second signature is required:

	
 

	
By:
	
 

	
 
	
Name:
	
 

	
 
	
Title:
	
 

 

[Signature Page to ABL Agreement No. 2]

 

Consenting Lenders

The undersigned Lender hereby irrevocably and unconditionally approves the Amendment and consents to the certain amendments set forth therein.

 

	
CITIBANK, N.A.

	
 

	
By:
	
/s/ Christopher Marino

	
 
	
Name:
	
Christopher Marino

	
 
	
Title:
	
Vice President and Director

 

[Signature Page to ABL Agreement No. 2]

 

Consenting Lenders

The undersigned Lender hereby irrevocably and unconditionally approves the Amendment and consents to the certain amendments set forth therein.

 

	
City National Bank, a national banking association

	
 

	
By:
	
/s/ Mia Bolin

	
 
	
Name:
	
Mia Bolin

	
 
	
Title:
	
Vice President

 

[Signature Page to ABL Agreement No. 2]

 

Consenting Lenders

The undersigned Lender hereby irrevocably and unconditionally approves the Amendment and consents to the certain amendments set forth therein.

 

	
DEUTSCHE BANK AG NEW YORK BRANCH

	
 

	
By:  
	
/s/ Michael Winters

	
 
	
Name:
	
Michael Winters

	
 
	
Title:
	
Vice President

 

	
If a second signature is required:

	
 

	
By:
	
/s/ Peter Cucchiara

	
 
	
Name:
	
Peter Cucchiara

	
 
	
Title:
	
Vice President

 

[Signature Page to ABL Agreement No. 2]

 

Consenting Lenders

The undersigned Lender hereby irrevocably and unconditionally approves the Amendment and consents to the certain amendments set forth therein.

 

	
FIRST NIAGARA COMMERCIAL FINANCE, INC., a wholly-owned subsidiary of First Niagara Bank, N.A.

	
 

	
By:
	
/s/ Michael Schwartz

	
 
	
Name:
	
Michael Schwartz

	
 
	
Title:
	
FVP

 

	
If a second signature is required:

	
 

	
By:
	
 

	
 
	
Name:
	
 

	
 
	
Title:
	
 

 

 

[Signature Page to ABL Agreement No. 2]

 

	
GENERAL ELECTRIC CAPITAL CORPORATION, as a Lender

	
 

	
By:  
	
/s/ Verleria King-Jones

	
 
	
Name:
	
Verleria King-Jones

	
 
	
Title:
	
Duly Authorized Signatory

 

 

[Signature Page to ABL Agreement No. 2]

 

Consenting Lenders

The undersigned Lender hereby irrevocably and unconditionally approves the Amendment and consents to the certain amendments set forth therein.

 

	
Morgan Stanley Bank, N.A.

	
 

	
By:
	
/s/ Allen Chang

	
 
	
Name:
	
Allen Chang

	
 
	
Title:
	
Authorized Signatory

 

 

[Signature Page to ABL Agreement No. 2]

 

Consenting Lenders

The undersigned Lender hereby irrevocably and unconditionally approves the Amendment and consents to the certain amendments set forth therein.

 

	
PNC Bank, N.A., as a Lender

	
 

	
By:
	
/s/ William Barry

	
 
	
Name:
	
William Barry

	
 
	
Title:
	
Vice President

 

 

[Signature Page to ABL Agreement No. 2]

 

	
Siemens Financial Services, Inc.

	
 

	
By:
	
/s/ John Finore

	
 
	
Name:
	
John Finore

	
 
	
Title:
	
Vice President

 

	
If a second signature is required:

	
 

	
By:
	
/s/ Uri Sky

	
 
	
Name:
	
Uri Sky

	
 
	
Title:
	
Vice President

 

 

[Signature Page to ABL Agreement No. 2]

 

	
Sun Trust Bank

	
 
	
 

	
By:  
	
/s/ Virginia Singletary

	
 
	
Name:
	
Virginia Singletary

	
 
	
Title:
	
Vice President

 

 

[Signature Page to ABL Agreement No. 2]

 

Consenting Lenders

The undersigned Lender hereby irrevocably and unconditionally approves the Amendment and consents to the certain amendments set forth therein.

 

	
WEBSTER BUSINESS CREDIT CORPORATION

	
 

	
By:  
	
/s/ Steven Schuit

	
 
	
Name:
	
Steven Schuit

	
 
	
Title:
	
Vice President

 

	
If a second signature is required:

	
 

	
By:
	
 

	
 
	
Name:
	
 

	
 
	
Title:
	
 

 

 

[Signature Page to ABL Agreement No. 2]

 

Consenting Lenders

The undersigned Lender hereby irrevocably and unconditionally approves the Amendment and consents to the certain amendments set forth therein.

 

	
WELLS FARGO CAPITAL FINANCE, LLC as a Lender

	
 

	
By:
	
/s/ Garrett L. Leider

	
 
	
Name:
	
Garrett L. Leider

	
 
	
Title:
	
Vice President

 

 

[Signature Page to ABL Agreement No. 2]EXHIBIT 10.1

 

REPUBLIC BANCORP, INC.

2015 STOCK INCENTIVE PLAN

 

OPTION AWARD AGREEMENT

 

This is an Option Award Agreement (this “Agreement”) dated as of               (the “Grant Date”) by and between Republic Bancorp, Inc., a Kentucky corporation (the “Company”), and «First_Name» «Last_Name»(“Optionee”).

 

Recitals

 

A.                                    Subject to shareholder approval, the Board of Directors of the Company adopted the Republic Bancorp, Inc. 2015 Stock Incentive Plan (the “Plan”).

 

B.                                    The Committee (as defined in the Plan) has determined that it is in the best interests of the Company and appropriate to the stated purposes of the Plan that the Company grant to the Optionee an option to purchase shares of the Company’s Class A common stock (“Stock”) pursuant and subject to the terms, definitions, and conditions of the Plan.

 

Agreement

 

NOW, THEREFORE, the Company and the Optionee do hereby agree as follows:

 

SECTION 1 — GRANT OF OPTION

 

Pursuant to the Plan and subject to the terms and conditions of this Agreement, the Company hereby grants to Optionee an option (the “Option”) to purchase all or any part from time to time of the aggregate shares set forth below:

 

	
 
    	
 
    	
NUMBER OF SHARES
    
	
TYPE OF OPTION
    	
 
    	
OF STOCK
    
	
 
    	
 
    	
 
    
	
Nonqualified Stock Options
    	
 
    	
«Total_Shares»
    

 

SECTION 2 — EXERCISE PRICE

 

The option Exercise Price hereunder is $«Price» per share of Stock (the “Exercise Price”), which equals 100% of the Fair Market Value of a share of Stock on the Grant Date.

 

1

 

SECTION 3 — DURATION OF OPTION

 

Unless accelerated pursuant to Section 11.8 of the Plan (upon a Change in Control) and subject to such shorter period provided in Section 6.8 of the Plan (regarding the lapse of the exercise right 6 months following a Termination of Employment or Service on account of death or Disability, and the lapse of the exercise right immediately upon any other Termination) and Section 6.6 of the Plan (must be in good standing at Exercise Date), the Option shall be exercisable in full upon the Optionee’s death or Disability while employed or in the Service of the Company, and, absent such an event, with respect to 50% of the Shares of Stock subject to this Option on the 4th anniversary of the Grant Date, and until no later than the 5th Anniversary the Grant Date; with respect to the other 50% of the Shares of the Stock subject to this Option on the 5th anniversary of the Grant Date, and until no later than the 6th anniversary of the Grant Date, after which dates the respective portions of the Options shall expire (the “Option Period”).

 

SECTION 4 — EXERCISE OF OPTION

 

During the Option Period, the Optionee may exercise the Option upon compliance with the following additional terms:

 

(a)                                 Method of Exercise.  The Optionee shall exercise portions of the Option by written notice, which shall:

 

(i)                                     state the election to exercise the Option, the number of shares in respect of which it is being exercised (the “Option Shares”), and the Optionee’s address and Social Security Number;

 

(ii)                                  contain such representations and agreements, if any, as the Company’s counsel may require concerning the holder’s investment intent regarding the Option Shares,

 

(iii)                               include an acknowledgement and acceptance of the restrictions on transfer of the Option Shares contained in the Plan;

 

(iv)                              be signed by the Optionee; and

 

(v)                                 be in writing and delivered to the Company’s Accounting Department for action on behalf of the Committee (the date of such delivery shall be the “Exercise Date”).

 

(b)                                 Payment Upon Exercise of Option.  Optionee shall deliver with the written notice of exercise described above payment of the full Exercise Price for the Option Shares plus any tax withholding due upon exercise which shall be made (a) in cash, (b) by delivery or attestation of ownership of a number of shares of Stock having a Fair Market Value as of the Exercise Date equal to the product of the Exercise Price multiplied by the number of shares of Stock the Optionee desires to purchase upon exercise, plus the related tax withholding; (c) by requesting at exercise to use a net exercise procedure under which the Exercise Price and/or related tax withholdings are subtracted from the Shares otherwise issuable on exercise; or (d) by any combination of the foregoing.

 

2

 

(c)                                  Stock Certificates.  Assuming the Committee concludes that the above deliveries fully comply with the conditions for exercise and that the Optionee was in good standing (in the Committee’s sole discretion) as of the Exercise Date, the Company shall cause to be issued and delivered either by book-entry registration or a stock certificate or certificates registered in the name of the Optionee, in either case including a legend reflecting the Plan’s restrictions on transfer in Section 11.13 thereof) as soon as practicable following the receipt of notice and payment described above.

 

SECTION 5 — NONTRANSFERABILITY OF OPTION

 

The Option shall not be transferable or assignable by the Optionee.  The Option shall be exercisable, during the Optionee’s lifetime, only by the Optionee.  The Option shall not be pledged or hypothecated in any way, and shall not be subject to execution, attachment or similar process.  Any attempted transfer, assignment, pledge, hypothecation or other disposition of the Option contrary to the provisions hereof, and the levy of any process upon the Option, shall be null, void and without effect.

 

SECTION 6 — RESTRICTIONS ON ISSUING SHARES AND ON DISPOSITION OF SHARES ACQUIRED UPON EXERCISE

 

(a)                                 Shares shall not be issued pursuant to the exercise of the Option, unless the issuance and transferability of the shares shall comply with all relevant provisions of law, including, but not limited to, the (i) limitations, if any, imposed by the Commonwealth of Kentucky; and (ii) restrictions, if any, imposed by the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder by the United States Securities and Exchange Commission.  The Committee may, in its discretion, determine if such restrictions or such issuance of shares so complies with all relevant provisions of law.

 

(b)                                 This Award is subject to restrictions on transfer set forth in more detail in Section 11.13 of the Plan, which section generally provides that any transfer must be preceded by a written notice to the Company that allows the Company to take up to 10 days to decide whether to buy the Shares from you instead of your transferring them as you propose.

 

SECTION 7 — RESTRICTIVE COVENANTS

 

(a)                                 Confidentiality.  The Optionee acknowledges that Confidential Information (as defined below) is the exclusive property of the Company and except for authorized use in the performance of the Optionee’s duties on behalf of and for the benefit of the Company, the Optionee shall not disclose or use, at any time, in any way, or anywhere, either during or subsequent to employment with the Company, any trade secret or other Confidential Information.  “Confidential Information” means information, not generally known in the industry in which the Company or its subsidiaries is or may be engaged, about the Company’s or its subsidiaries, costs, pricing, marketing, ideas, problems, developments, research records, technical data, processes, products, plans for products or service improvement and development, business and strategic plans, financial information, forecasts, customer records and any other information which derives independent economic value, actual or potential, and all other information of a trade secret or confidential nature.  Confidential Information shall not include information which is or becomes generally available to the public other than as a result of a disclosure by the Optionee which results in a breach of this Agreement.

 

3

 

(b)                                 Nonsolicitation of Customers or Employees.  The Optionee further agrees that during the Optionee’s employment or service with the Company and for a period of two years following the date of the Optionee’s Termination of Employment or Service, the Optionee shall not (i) solicit or divert or attempt to divert from the Company or its subsidiaries, any customer’s business now or at any time during the Optionee’s employment or service with the Company enjoyed by or specifically targeted by the Company or its subsidiaries; and (ii) directly or indirectly, solicit to employ or engage, offer employment or engagement to, hire, employ or engage any employee or independent contractor of the Company or any of its subsidiaries.

 

(c)                                  Forfeiture of Option or Profits.  The Company and the Optionee each acknowledge and agree that any breach of the covenants in this Section 7 would cause irreparable harm to the Company or its subsidiaries.  In the event of a breach or threatened breach by the Optionee of the covenants in this Section, the Company shall be entitled to, in addition to any other legal or equitable remedies available to it, declare the Option and the Option Shares forfeited.  Any stock certificates representing such Option Shares shall be returned to the Company.  The Company and the Optionee further agree that upon breach, the Company is entitled to recover, and the Optionee will disgorge to the Company, any profits realized from the prior disposition of the Option Shares.

 

(d)                                 Survival; Other Remedies.  The provisions of this Section 7 shall survive the termination of this Agreement and will be construed as independent of any other provision of this Agreement, and the existence of any claim or cause of action by the Optionee against the Company, whether predicated on this Agreement or otherwise, will not constitute a defense to the enforcement by the Company of such covenants and agreements.  If any provision of this Agreement, including this Section 7, is invalid in part or in whole, it will be deemed to have been amended, whether as to time, area covered or otherwise, as and to the extent required for its validity under applicable law and, as so amended, will be enforceable.  The parties will execute all documents necessary to evidence such amendment.

 

SECTION 8 — ACKNOWLEDGEMENTS

 

The Optionee acknowledges receipt contemporaneously herewith of a copy of the Plan, and the Optionee represents that he is familiar with the terms and provisions thereof and hereby accepts the Option subject to all the terms and provisions thereof.  Any capitalized term used herein and not otherwise defined shall have the meaning given in the Plan.  The Optionee acknowledges that nothing contained in the Plan or this Agreement shall (a) confer upon the Optionee any additional rights to continued employment by the Company or any corporation related to the Company; or (b) interfere in any way with the right of the Company to terminate the Optionee’s employment or change the Optionee’s compensation at any time.

 

SECTION 9 — AMENDMENT

 

The Committee may amend the terms and conditions of this Agreement as provided in the Plan; provided, however, no amendment may impair the rights of the Optionee without the consent of the Optionee, and no amendment may extend the Option Period or change the exercise price of the Option issued hereunder except in accordance with adjustments in authorized shares as provided in Section 3.3 of the Plan.

 

4

 

SECTION 10 — TERM OF AGREEMENT

 

This Agreement shall terminate (except with respect to Section 7) upon the earlier of (i) Failure of the Optionee to execute and return a counter-signed copy of this Agreement to the Company within ten (10) days after its presentation to Optionee; (ii) complete exercise, lapse or termination of the Option; (ii) mutual agreement of the parties; or (iii) the end of the Option Period.

 

IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date set forth in the preamble hereto, but actually on the dates set forth below.

 

	
 
    	
REPUBLIC BANCORP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Optionee  «First_Name» «Last_Name»
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Presenter’s Initials:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Date Presented:
    	
 
    
				

 

IMPORTANT NOTE: IF THIS AGREEMENT IS NOT SIGNED AND RETURNED TO THE DIRECTOR OF HUMAN RESOURCES OF THE COMPANY BY OPTIONEE WITHIN TEN (10) DAYS AFTER RECEIPT, IT SHALL BE DEEMED REJECTED BY OPTIONEE AND THE COMPANY’S OFFER SHALL BE IMMEDIATELY WITHDRAWN AND BECOME NULL AND VOID.

 

5

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