ITEM 1.02. TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT.

On September 18, 2012, Republic Bank & Trust Company (the "Bank"), a wholly owned subsidiary of Republic Bancorp, Inc. (the "Company"), received a termination notice to the Amended and Restated Program Agreement, dated August 3, 2011 (the "Program Agreement"), with Jackson Hewitt Inc. and Jackson Hewitt Technology Services LLC ("JHTSL") related to the Bank's Electronic Refund Check and Electronic Refund Deposit products (collectively, referred to as "Bank Products"), as well as the Bank's previously offered Refund Anticipation Loan ("RAL") product. Prior to its termination, the Program Agreement had, among other things, set the term of the Program Agreement to expire on October 14, 2014.

JHTSL provides preparation services of federal, state and local individual income tax returns in the United States through franchised and company-owned tax offices. The Bank Products essentially comprise the products offered through the Company's Republic Processing Group ("RPG") business segment.

JHTSL's termination letter states that it is terminating the Program Agreement pursuant to Sections 8.2(i) and 8.2(ii) because, among other reasons, the Bank "cannot offer and provide RALs to customers of designated EROs during Tax Seasons 2013 and 2014 as required by the Agreement." The Bank believes there has been no occurrence that would give rise to termination of the Program Agreement and it is currently evaluating possible legal actions and has made demand for mediation and arbitration as required under the Program Agreement.

Approximately 40% of RPG's gross revenue for the six months ended June 30, 2012 and 2011 was derived from JHTSL tax offices. Termination of this contract will have a material adverse impact to the Company's results of operations in 2013 and beyond.

The foregoing description of the Program Agreement is qualified in its entirety by reference to the Program Agreement which is filed as an exhibit to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 5, 2011.