Document:

Exhibit 10.23

 

AMENDED
AND RESTATED INDEMNIFICATION AGREEMENT

 

THIS AMENDED
AND RESTATED INDEMNIFICATION AGREEMENT is made and entered into, effective as
of                                            ,
by and between INSIGHT HEALTH SERVICES CORP., a Delaware corporation (“INSIGHT”),
and                                             
(“INDEMNITEE”) (“Agreement”).

 

RECITALS

 

WHEREAS, it is
essential for INSIGHT to retain and attract as directors and officers the most
capable persons available;

 

WHEREAS,
INDEMNITEE is a director or officer of INSIGHT;

 

WHEREAS, the
Certificate of Incorporation of INSIGHT requires INSIGHT to indemnify its
directors and officers to the fullest extent permitted by law, and the
INDEMNITEE has been serving and continues to serve as a director or officer of
INSIGHT, in part in reliance on the Certificate of Incorporation; and

 

WHEREAS, in
recognition of INDEMNITEE’s need for (i) substantial protection against
personal liability based on INDEMNITEE’s reliance on the Certificate of Incorporation,
(ii) specific contractual assurance that the protection promised by the
Certificate of Incorporation will be available to INDEMNITEE (regardless of,
among other things, any amendment to the Certificate of Incorporation or any
amendment to or revocation of the Bylaws, or any change in the composition of
INSIGHT’s Board or any acquisition transaction relating to INSIGHT), and (iii) an
inducement to continue to provide effective services to INSIGHT as a director
or officer thereof, INSIGHT wishes to provide for the indemnification of
INDEMNITEE and to advance expenses to INDEMNITEE to the fullest extent
permitted by law and as set forth in this Agreement, and, to the extent
insurance is maintained, to provide for the continued coverage of INDEMNITEE under
INSIGHT’s directors’ and officers’ liability insurance policies.

 

NOW,
THEREFORE, in consideration of the premises contained herein and of INDEMNITEE’s
continuing to serve INSIGHT directly or, while a director or officer of
INSIGHT, at its request, with another enterprise, and intending to be legally
bound hereby, the parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.01.                        (a) 
Affiliate:  any Person that,
directly or indirectly through one or more intermediaries, controls or is
controlled by, or is under common control with, the Person specified.

 

(a)  Board:  the Board of Directors of INSIGHT or the
Parent, as the case may be.

 

 

(b)  Bylaws:  the Bylaws of INSIGHT.

 

(c)  Change in Control:  the occurrence of any of the following:

 

(i)  the consummation of any transaction (including, without limitation, any merger or consolidation) (A) prior to a Public Equity Offering by INSIGHT or the Parent, the result of which is that (1) the Parent shall fail to own directly100% of the outstanding capital stock of INSIGHT or (2) the Principals and their Related Parties become the “beneficial owner” (as such term is defined in Rule 13d-3 and Rule 13d-5 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) of less than 50% of the Voting Securities of INSIGHT or the Parent, as the case may be (measured by voting power rather than the number of shares), or (B) after a Public Equity Offering of INSIGHT or the Parent (in either case, the issuer of the stock in the Public Equity Offering being the “IPO Issuer”), the result of which is that (1) if the IPO Issuer is the Parent, the Parent shall fail to own directly 100% of the outstanding capital stock of INSIGHT, (2) the Principals and their Related Parties fail to own beneficially (as defined above), directly or indirectly, at least 35% of the IPO Issuer, or (3) any “person” or “group” (as such terms are used in Section 13(d) and 14(d) of the Exchange Act), other than the Principals and their Related Parties, becomes the beneficial owner (as defined above), directly or indirectly, of a greater percentage of the voting power of the Voting Securities of INSIGHT or the Parent, as the case may be, calculated on a fully diluted basis, than the percentage beneficially owned by the Principals and their Related Parties;
 
(ii)  the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of INSIGHT and its Subsidiaries or the Parent and its Subsidiaries, in each case, taken as a whole, to any “person” (as the term is defined in Section 13(d)(3) of the Exchange Act) other than the Principals or Related Parties of the Principals;
 
(iii)  the first day on which a majority of the members of the Board of INSIGHT or the Parent are not Continuing Directors; or
 
(iv)  INSIGHT or the Parent is liquidated or dissolved or adopts a plan of liquidation or dissolution.
 

(d)  Continuing Directors:  shall mean, as of the date of determination,
any member of the Board of INSIGHT or the Parent, as the case may be, who (i) was
a member of such Board on the date of this Agreement; (ii) was nominated
for election or elected to such Board with the approval of the majority of the
Continuing Directors who were members of such Board at the time of such
nomination or election; or (iii) was nominated by one or more of the
Principals and the Related Parties.

 

(e)  Expense:  includes attorneys’ fees and all other costs,
expenses and obligations paid or incurred in connection with investigating,
defending, being a witness in or participating in (including on appeal), or
preparing to defend, be a witness in or participate in any Proceeding relating
to any Indemnifiable Event.

 

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(f)  Indemnifiable Event:  any event or occurrence that takes place
either prior to or after the execution of this Agreement, related to the fact
that INDEMNITEE is or was a director or officer of INSIGHT, or while a director
or officer, is or was serving at the request of INSIGHT as a director, officer,
employee, trustee, agent or fiduciary of another corporation, partnership,
joint venture, employee benefit plan, trust or other enterprise or by reason of
anything done or not done by INDEMNITEE in any such capacity.

 

(g)  Parent:  InSight Health Services Holdings Corp., a
Delaware corporation and its successors.

 

(h)  Person:  any individual, corporation, limited or
general partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, limited liability company or government or any
agency or political subdivision thereof.

 

(i)  Principals:  J.W. Childs Associates, L.P., J.W. Childs
Equity Partners II, L.P., The Halifax Group, L.L.C.
and Halifax Capital Partners, L.P. and their Affiliates.

 

(j)  Public
Equity Offering:  an offer and sale
of capital stock of INSIGHT or the Parent pursuant to a registration statement
that has been declared effective by the Securities and Exchange Commission
pursuant to the Securities Act of 1933, as amended (other than a registration
statement on Form S-8 or otherwise relating to equity securities issuable
under any employee benefit plan of INSIGHT).

 

(k)  Related
Parties:  shall mean:

 

(i)  any controlling stockholder,
partner, member, 80% (or more) owned Subsidiary, or immediate family member (in
the case of an individual) of any Principal; or

 

(ii)  any trust, corporation,
partnership or other entity, the beneficiaries, stockholders, partners, owners or
Persons beneficially holding an 80% (or more) controlling interest of which
consist of any one or more Principals and/or such other Persons referred to in
the immediately preceding clause.

 

(l)  Proceeding:  any threatened, pending or completed action, suit
or proceeding, or any inquiry, hearing or investigation, whether conducted by
INSIGHT or any other party, that INDEMNITEE in good faith believes might lead
to the institution of any such action, suit or proceeding, whether civil,
criminal, administrative, investigative or other.

 

(m)  Reviewing
Party:  shall be any one of the
following:  (i) the stockholders of
INSIGHT, (ii) a quorum of the Board consisting of disinterested directors,
or (iii) the special, independent counsel referred to in Section 2.02
hereof.

 

(n)  Subsidiary:  shall mean with respect to any Person, any
Person a majority of the equity ownership or Voting Securities of which is at
the time owned, directly or indirectly, by such Person and/or one or more its
other Subsidiaries; when used without reference to any particular Person,
Subsidiary means a Subsidiary of INSIGHT.

 

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(o)  Voting
Securities:  shall mean with respect
to any Person, any securities which vote generally in the election of
directors, managers or trustees.

 

ARTICLE II

INDEMNIFICATION

 

2.01.                        Agreement to Indemnify.

 

(a)  In the event INDEMNITEE was, is or
becomes a party to or witness or other participant in, or is threatened to be
made a party to or witness or other participant in, a Proceeding by reason of
(or arising in part out of) an Indemnifiable Event, INSIGHT shall indemnify
INDEMNITEE to the fullest extent permitted by law, as soon as practicable but
in any event no later than thirty (30) days after written request is presented
to INSIGHT, against any and all Expenses, judgments, fines, penalties and
amounts paid in settlement (including all interest, assessments and other
charges paid or payable in connection with or in respect of such Expenses,
judgments, fines, penalties or amounts paid in settlement) of such Proceeding
and any federal, state, local or foreign taxes imposed on INDEMNITEE as a
result of the actual or deemed receipt of any payments under this
Agreement.  INSIGHT shall select counsel
to defend INDEMNITEE (which defense counsel shall be reasonably satisfactory to
INDEMNITEE).  Any written request for
indemnification shall include sufficient documentation or information
reasonably available to INDEMNITEE to support INDEMNITEE’s claim for
indemnification.  The president or
secretary or other appropriate officer of INSIGHT shall promptly, upon receipt
of INDEMNITEE’s request for indemnification, advise
the Board in writing that INDEMNITEE has made such request.  Notwithstanding anything in this Agreement to
the contrary and except as provided in Section 2.03, INDEMNITEE shall not
be entitled to indemnification pursuant to this Agreement in connection with
any Proceeding initiated by INDEMNITEE against INSIGHT or any director, officer
or key employee of INSIGHT, unless INSIGHT has joined in or consented to the
initiation of such Proceeding.  If so
requested by INDEMNITEE, INSIGHT shall advance (within ten (10) business
days of such request) any and all Expenses to INDEMNITEE (an “Expense Advance”);
provided, however, that such Expenses shall be advanced only upon delivery to
INSIGHT of an undertaking by or on behalf of INDEMNITEE to repay such amount if
it is ultimately determined that INDEMNITEE is not entitled to be indemnified
by INSIGHT.  Further, no indemnification
shall be made for the accounting of profits made from the purchase or sale by
INDEMNITEE of any securities of INSIGHT or the Parent within the meaning of Section 16(b) of
the Exchange Act or similar provision of any state statutory or common law.

 

(b)  Notwithstanding the foregoing, (i) the
obligations of INSIGHT under Section 2.01(a) shall be subject to the
condition that the Reviewing Party shall not have determined (in a written
opinion, in any case in which the special, independent counsel referred to in Section 2.02
hereof is involved) that INDEMNITEE would not be permitted to be indemnified
under applicable law, and (ii) the obligation of INSIGHT to make an
Expense Advance pursuant to Section 2.01(a) shall be subject to the
condition that if, when and to the extent that the Reviewing Party determines
that INDEMNITEE would not be permitted to be so indemnified under applicable
law, INSIGHT shall be entitled to be reimbursed by INDEMNITEE (who hereby
agrees to reimburse INSIGHT) for all such amounts theretofore paid; provided,
however, that if INDEMNITEE has commenced legal proceedings in a court of
competent jurisdiction to

 

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secure a determination that INDEMNITEE should
be indemnified under applicable law, any determination made by the Reviewing
Party that INDEMNITEE would not be permitted to be indemnified under applicable
law shall not be binding, and INDEMNITEE shall not be required to reimburse
INSIGHT for any Expense Advance until a final judicial determination is made
with respect thereto (as to which all rights of appeal therefrom have been
exhausted or have lapsed).  INDEMNITEE’s
obligation to reimburse INSIGHT for Expense Advances shall be unsecured and no
interest shall be charged thereon.  If
there has not been a Change in Control, the Reviewing Party shall be selected
by the INSIGHT Board, and if there has been such a Change in Control (other
than a Change in Control which has been approved by a majority of the INSIGHT
Board who were directors immediately prior to such Change in Control), the
Reviewing Party shall be the special, independent counsel referred to in Section 2.02
hereof.  If there has been no
determination by the Reviewing Party within thirty (30) days after written
demand is presented to INSIGHT by INDEMNITEE, or if the Reviewing Party
determines that INDEMNITEE substantively would not be permitted to be
indemnified in whole or in part under applicable law, INDEMNITEE shall have the
right to commence litigation, after giving INSIGHT ten (10) days’ prior
written notice thereof, in any court in the states of California or Delaware
having subject matter jurisdiction thereof and in which venue is proper seeking
an initial determination by the court or challenging any such determination by
the Reviewing Party or any aspect thereof, and INSIGHT hereby consents to
service of process and to appear in any such proceeding.  Any determination by the Reviewing Party
otherwise shall be conclusive and binding on INSIGHT and INDEMNITEE.

 

2.02.                        Change in Control. 
INSIGHT agrees that if there is a Change in Control of INSIGHT (other
than a Change in Control which has been approved by a majority of the Board who
were directors immediately prior to such Change in Control), then with respect
to all matters thereafter arising concerning the rights of INDEMNITEE to
indemnity payments and Expense Advances under this Agreement or any other
agreement or under applicable law or INSIGHT’s Certificate of Incorporation or
Bylaws now or hereafter in effect relating to indemnification for Indemnifiable
Events, INSIGHT shall seek legal advice only from special, independent counsel
selected by INDEMNITEE and approved by INSIGHT (which approval shall not be
unreasonably withheld).  Such special,
independent counsel shall not have otherwise performed services for INSIGHT or
INDEMNITEE (other than in connection with such matters) within the last five (5) years.  Such special, independent counsel shall not
include any person who, under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either
INSIGHT or INDEMNITEE in an action to determine INDEMNITEE’s rights under this
Agreement.  Such counsel, among other
things, shall render its written opinion to INSIGHT and INDEMNITEE as to
whether and to what extent INDEMNITEE would be permitted to be indemnified
under applicable law.  INSIGHT agrees to
pay the reasonable fees of the special, independent counsel referred to above
and to indemnify fully such counsel against any and all expenses (including
attorneys’ fees), claims, liabilities and damages arising out of or relating to
this Agreement or the engagement of special, independent counsel pursuant
hereto.

 

2.03.                        Indemnification for Expenses
Incurred in Enforcing this Agreement.  INSIGHT shall indemnify
INDEMNITEE against any and all Expenses (including attorneys’ fees) and, if
requested by INDEMNITEE, shall (within ten (10) business days of such
request) advance such expenses to INDEMNITEE, which are incurred by INDEMNITEE
in connection with any claim asserted against or action brought by INDEMNITEE
for (i) indemnification or

 

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advance payment for Expenses by INSIGHT under
this Agreement or any other agreement, or relating to indemnification for
Indemnifiable Events and/or (ii) recovery under any directors’ and
officers’ liability insurance policies maintained by INSIGHT, regardless of
whether INDEMNITEE ultimately is determined to be entitled to such indemnification,
advance expense payment or insurance recovery, as the case may be.  Expenses shall be advanced, however, only
upon delivery to INSIGHT of an undertaking by or on behalf of INDEMNITEE to
repay such amount if it is ultimately determined that INDEMNITEE is not
entitled to be indemnified by INSIGHT.

 

2.04.                        Partial Indemnity. 
If INDEMNITEE is entitled under any provision of this Agreement to
indemnification by INSIGHT for some or a portion of the Expenses, judgments,
fines, penalties and amounts paid in settlement of a Proceeding but not,
however, for all of the total amount thereof, INSIGHT shall nevertheless
indemnify INDEMNITEE for the portion thereof to which INDEMNITEE is
entitled.  Moreover, notwithstanding any
other provision of this Agreement, to the extent that INDEMNITEE has been
successful on the merits or otherwise in defense of any or all Proceedings
relating in whole or in part to an Indemnifiable Event or in defense of any
issue or matter therein, including dismissal without prejudice, INDEMNITEE
shall be indemnified against all Expenses incurred in connection therewith.

 

2.05.                        Defense to Indemnification,
Burden of Proof and Presumptions.  It shall be a
defense to any action brought by INDEMNITEE against INSIGHT to enforce this
Agreement (other than an action brought to enforce a claim for Expenses
incurred in defending a Proceeding in advance of its final disposition where
the required undertaking has been tendered to INSIGHT) that INDEMNITEE has not
met the standard of conduct that makes it permissible under the Delaware
General Corporation Law for INSIGHT to indemnify INDEMNITEE for the amount
claimed.  In connection with any
determination by the Reviewing Party or otherwise as to whether INDEMNITEE is
entitled to be indemnified hereunder, the burden of proving such right to
indemnification shall be on INDEMNITEE. 
Neither the failure of INSIGHT (including the INSIGHT Board, special
independent counsel or its stockholders) to have made a determination prior to
the commencement of such action by INDEMNITEE that indemnification of
INDEMNITEE is proper under the circumstances because he or she has met the
applicable standard of conduct set forth in the Delaware General Corporation
Law, nor an actual determination by INSIGHT (including the INSIGHT Board,
special, independent counsel or its stockholders) that INDEMNITEE has not met
such applicable standard of conduct, shall be a defense to the action or create
a presumption that INDEMNITEE has not met the applicable standard of conduct.  For purposes of this Agreement, the
termination of any Proceeding by judgment, order, settlement (whether with or
without court approval) or conviction, or upon a plea of nolo contendere, or
its equivalent, shall not create a presumption that INDEMNITEE did not meet any
particular standard of conduct or have any particular belief or that a court
has determined that indemnification is not permitted by applicable law.

 

2.06.                        Non-exclusivity. 
The rights of INDEMNITEE hereunder shall be in addition to any other
rights INDEMNITEE may have under INSIGHT’s Certificate of Incorporation or
Bylaws or the Delaware General Corporation Law or otherwise.  To the extent that a change in the Delaware
General Corporation Law (whether by statute or judicial decision) permits greater
indemnification by agreement than would be afforded currently under INSIGHT’s
Certificate of

 

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Incorporation and Bylaws and this Agreement,
it is the intent of the parties hereto that INDEMNITEE shall enjoy by this
Agreement the greater benefits so afforded by such change.

 

ARTICLE III

GENERAL PROVISIONS

 

3.01.                        Liability Insurance. 
To the extent INSIGHT maintains an insurance policy or policies
providing directors’ and officers’ liability insurance, INDEMNITEE shall be
covered by such policy or policies, in accordance with its or their terms, to
the maximum extent of the coverage available for any director or officer.

 

3.02.                        Period of Limitations. 
No legal action shall be brought and no cause of action shall be
asserted by or on behalf of INSIGHT or any Affiliate of INSIGHT against
INDEMNITEE, INDEMNITEE’s spouse, heirs, executors or personal or legal
representatives after the expiration of two (2) years from the date of
accrual of such cause of action, or such longer period as may be required by
state law under the circumstances, and any claim or cause of action of INSIGHT
or its Affiliates shall be extinguished and deemed released unless asserted by
the timely filing of a legal action within such period; provided, however, that
if any shorter period of limitations is otherwise applicable to any such cause
of action, such shorter period shall govern.

 

3.03.                        Amendment of this Agreement. 
No supplement, modification or amendment of this Agreement shall be
binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provisions
hereof (whether or not similar), nor shall such waiver constitute a continuing
waiver.  Except as
specifically provided herein, no failure to exercise or any delay in exercising
any right or remedy hereunder shall constitute a waiver thereof.

 

3.04.                        Subrogation. 
In the event of payment under this Agreement, INSIGHT shall be subrogated
to the extent of such payment to all of the rights of recovery of INDEMNITEE,
who shall execute all papers required and shall do everything that may be
necessary to secure such rights, including the execution of such documents
necessary to enable INSIGHT effectively to bring suit to enforce such rights.

 

3.05.                        No Duplication of Payments. 
INSIGHT shall not be liable under this Agreement to make any payment in
connection with any claim made against INDEMNITEE to the extent INDEMNITEE has
otherwise actually received payment (under any insurance policy, Certificate of
Incorporation, Bylaws or otherwise) of the amounts otherwise indemnifiable
hereunder.

 

3.06.                        Settlement of Claims. 
INSIGHT shall not be liable to indemnify INDEMNITEE under this Agreement
for any amounts paid in settlement of any action or claim effected
without INSIGHT’s written consent. 
INSIGHT shall not settle any action or claim in any manner which would
impose any penalty or limitation on INDEMNITEE without INDEMNITEE’s written
consent.  Neither INSIGHT nor INDEMNITEE
will unreasonably withhold their consent to any proposed settlement.  INSIGHT shall not be liable to indemnify
INDEMNITEE under this Agreement with regard to any judicial award if INSIGHT
was not given a reasonable and timely opportunity, at its expense, to
participate in the defense of such action.

 

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3.07.                        Binding Effect. 
This Agreement shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and their respective successors, assigns
(including any direct or indirect successor by purchase, merger, consolidation
or otherwise to all or substantially all of the business and/or assets of
INSIGHT), spouses, heirs and personal and legal representatives.  INSIGHT shall require and cause any successor
(whether directly or indirectly by purchase, merger, consolidation or
otherwise) to all, substantially all or a substantial part of the business
and/or assets of INSIGHT, by written agreement in form and substance
satisfactory to INDEMNITEE, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that INSIGHT would be
required to perform if no such succession had taken place.  This Agreement shall continue in effect
regardless of whether INDEMNITEE continues to serve as a director or officer of
INSIGHT or of any other enterprise at INSIGHT’s request.

 

3.08.                        Severability. 
The provisions of this Agreement shall be severable in the event that
any of the provisions hereof (including any provision within a single section,
paragraph or sentence) is held by a court of competent jurisdiction to be
invalid, void or otherwise unenforceable, and the remaining provisions shall
remain enforceable to the fullest extent permitted by law.  Furthermore, to the fullest extent possible,
the provisions of this Agreement (including, without limitation, each portion
of this Agreement containing any provision held to be invalid, void or otherwise
unenforceable, that is not itself invalid, void or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.

 

3.09.                        Governing Law. 
This
Agreement shall be governed by and construed and enforced in accordance with the
laws of the state of Delaware applicable to contracts made and to be performed
in such state without giving effect to the principles of conflicts of laws.

 

3.10.                        Counterparts. 
This Agreement 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.

 

3.11.                        Notices. 
All notices, demands and other communications required or permitted
hereunder shall be made in writing and shall be deemed to have been duly given
if delivered by hand, against receipt, or mailed, postage prepaid, certified or
registered mail, return receipt requested, or deposited with a reputable
overnight courier with all charges prepaid, and addressed to INSIGHT at:

 

InSight Health Services Corp.

26250 Enterprise Court, Suite 100

Lake Forest, California 92630-8405

Attention: 
General Counsel

Fax: 
(949) 462-3703

 

and
to INDEMNITEE at:

 

Street Address

City, State, Zip

 

8

 

Notice of change of
address shall be effective only when done in accordance with this Section.  All notices complying with this Section shall
be deemed to have been received on the date of delivery if personally
delivered, one (1) day after deposit with an overnight courier, or on the
fourth business day after mailing.

 

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

 

 

	
   

  	
  “INSIGHT”

  
	
   

  	
  INSIGHT HEALTH SERVICES CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “INDEMNITEE”

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [name]

  

 

9Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS
AGREEMENT, made as of the 19th day of September 2005, among LEESPORT
FINANCIAL CORP. (“Company”), a Pennsylvania business corporation having a place
of business at 1240 Broadcasting Road, Wyomissing, Pennsylvania, LEESPORT BANK
(“Bank”), a state banking institution having a place of business at 1240
Broadcasting Road, Wyomissing, Pennsylvania, and ROBERT D. DAVIS (“Executive”),
an adult individual residing at 42 Rosewood Lane, Malvern, Pennsylvania.

 

WITNESSETH:

 

WHEREAS, Bank
is the wholly owned banking subsidiary of Company;

 

WHEREAS,
Company and Bank desire to employ Executive in the capacity of President and
Chief Executive Officer of each of Company and Bank on the terms and conditions
set forth herein;

 

WHEREAS,
Executive desires to accept employment with Company and Bank on the terms and
conditions set forth herein.

 

AGREEMENT:

 

NOW,
THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

 

1.  Employment.  Company and Bank each hereby employ
Executive, and Executive hereby accepts employment with Company and Bank, on
the terms and conditions set forth in this Agreement.

 

2.  Duties of Employee.  Executive shall be employed as President and
Chief Executive Officer of Company and of Bank, and shall hold such additional
titles as may be given to him from time to time by the respective Boards of
Directors of Company and of Bank.  As an
executive officer of Company and of Bank, Executive shall perform and discharge
well and faithfully such duties consistent with his position as may be assigned
to Executive from time to time by the respective Boards of Directors of Company
and of Bank.  Executive shall devote his
full working time, attention and energies to the business of Company and of
Bank during the Employment Period (as defined in Section 3 of this
Agreement); provided, however, that this Section 2 shall not be construed
as preventing Executive from (a) investing Executive’s personal assets in
enterprises that do not compete with Company or Bank or (b) being involved
in any other work activity with the prior approval of the Board of Directors of
Company and Bank.

 

3.  Term of Agreement.

 

(a)  This
Agreement shall be for a period (the “Employment Period”) commencing on September 19,
2005 and ending on December 31, 2008; provided, however, that the
Employment Period shall be automatically extended on January 1, 2009 and
on January 1 of each subsequent year (the “Annual Renewal Date”) for a
period ending one (1) year from each Annual Renewal Date unless either
party shall give written notice of nonrenewal to the other

 

1

 

party at least ninety (90) days prior to an Annual Renewal Date, in
which event this Agreement shall terminate at the end of the then existing
Employment Period.

 

(b)  Notwithstanding the provisions of Section 3(a) of
this Agreement, this Agreement shall terminate automatically for Cause (as
defined herein) upon written notice from the Board of Directors of each of
Company and Bank to Executive.  As used
in this Agreement, “Cause” shall mean any of the following:

 

(i)  Executive’s conviction of or plea
of guilty or nolo contendere to a felony or the actual incarceration of
Executive for a period of forty-five (45) consecutive days or more;

 

(ii)  Executive’s failure to follow the
good faith lawful instructions of the Board of Directors of Company or Bank
with respect to its operations, following at least fifteen (15) days prior
written notice of such instructions;

 

(iii)  Executive’s willful failure to
substantially perform Executive’s duties to Company or Bank, other than a
failure resulting from Executive’s incapacity because of physical or mental
illness; or

 

(iv)  Executive’s willful failure to
enforce, or willful violation of, the material written policies and procedures
of Company or Bank.

 

(v)  Executive’s commission of an act or
course of conduct constituting fraud or willful malfeasance, dishonesty or
gross negligence as to Company or Bank or as to Executive’s employment hereunder,
or which, in the reasonable judgment of the Board of Directors of Company or
Bank, results in public discredit to Company or Bank; or

 

(vi)  Executive’s removal or prohibition
from being an institution-affiliated party by a final order of an appropriate
federal banking agency pursuant to Section 8(e) of the Federal
Deposit Insurance Act or by the Pennsylvania Department of Banking pursuant to
state law.

 

If this
Agreement is terminated for Cause, Executive’s rights under this Agreement
shall cease as of the effective date of such termination, provided, however,
that Executive shall be entitled to payment of any regular salary accrued, but
not yet paid, through the date of his termination for Cause.  Executive shall not be entitled to any
portion of any bonus that might otherwise have been payable to him for the year
in which such termination occurs.

 

(c)  Notwithstanding the provisions of Section 3(a) of
this Agreement, this Agreement shall terminate automatically upon Executive’s
voluntary termination of employment (other than for Good Reason in accordance
with Section 7(b) or after a Change in Control as defined in Section 5(b) of
this Agreement), retirement at Executive’s election, or Executive’s death.  Except as otherwise specifically provided
herein, if this Agreement is terminated for any such reason, Executive’s rights
under this Agreement shall cease as of the effective date of such termination,
provided, however, that Executive shall be entitled to payment of any regular
salary accrued, but not yet paid, through the date of his termination.

 

2

 

Executive
shall not be entitled to any portion of any bonus that might otherwise have
been payable to him for the year in which such termination occurs.

 

(d)  Notwithstanding the provisions of Section 3(a) of
this Agreement, this Agreement shall terminate automatically 90 days
following Executive’s total disability as defined and determined under the long-term
disability policy referenced in Section 4(f) (“Disability”) and
Executive’s rights under this Agreement shall cease as of the date of such
termination; provided, however, that, if Executive becomes disabled after a
Change in Control, as defined in Section 5(b) of this Agreement,
Executive shall nevertheless be absolutely entitled to receive all of the
compensation and benefits provided for in, and for the term set forth in, Section 6
of this Agreement.  Payment of Disability
benefits, or a written acknowledgement from the insurance carrier that
Disability benefits are payable (without regard to waiting or eligibility
periods), under the long-term disability policy referenced in Section 4(f) shall
be deemed to be a conclusive determination of Disability.

 

(e)  Executive agrees that, in the event
his employment under this Agreement is terminated, Executive shall concurrently
resign as a director of Company or Bank, or any affiliate of Company or Bank,
if he is then serving as a director of any of such entities.

 

4.  Employment Period Compensation.

 

(a)  Salary.  For services performed by Executive under
this Agreement, Company and Bank shall pay Executive a salary, in the
aggregate, during the Employment Period, at the rate of $325,000 per year,
payable at the same times as salaries are payable to other executive employees
of Company or of Bank.  Company and/or
Bank may, from time to time, increase Executive’s salary, and any and all such
increases shall be deemed to constitute amendments to this Section 4(a) to
reflect the increased amounts, effective as of the date established for such
increases by the Board of Directors of Company or of Bank or any committee of
such Boards in the resolutions authorizing such increases.

 

(b)  Bonus.  For services performed by Executive under
this Agreement, Executive shall be eligible to receive an annual bonus during
the Employment Period, in such amounts and at such times, annually, as is
provided in such incentive compensation plan for executive officers of Company
and/or Bank as shall be approved by the Board of Directors of Company and/or
Bank and in effect from time to time. 
Executive shall be eligible to receive a pro-rated bonus for the year
ending December 31, 2005 determined in accordance with such incentive
compensation plan.  The payment of any
such bonus shall not reduce or otherwise affect any other obligation to
Executive provided for in this Agreement.

 

(c)  Vacation.  During the term of this Agreement, Executive
shall be entitled to paid annual vacation in accordance with the policies as
established from time to time by the Boards of Directors of Company and Bank
plus such other personal or bonus days as may be set forth in the policies of
Company and Bank.  Executive shall not be
entitled to receive any additional compensation from Company and Bank for
failure to take a vacation, nor shall Executive be able to accumulate unused
vacation time from one year to the next, except to the extent authorized by the
Boards of Directors of Company and Bank.

 

3

 

(d)  Automobile and Other
Business-Related Expenses.  During
the term of this Agreement, Executive shall be provided with a car allowance of
$1,200 per month.  Executive shall also
be reimbursed for all reasonable expenses associated with the operation,
maintenance and insurance of such automobile, and for all other reasonable
out-of-pocket expenses incurred by Executive in connection with the performance
of his duties under this Agreement in accordance with Bank’s normal expense
reimbursement policies.

 

(e)  Employee Benefit Plans.  During the term of this Agreement, Executive
shall be entitled to participate in and receive the benefits of any pension or
other retirement benefit plan, profit sharing, stock option, employee stock
purchase, employee stock ownership, or other plans, benefits and privileges
provided to employees and executives of Company and Bank, including
participation in health and welfare benefit plans and disability insurance
coverage, to the extent commensurate with his then existing duties and
responsibilities, as fixed by the Boards of Directors of Company and Bank.  Company and Bank shall not make any changes
in such plans, benefits or privileges which would adversely affect Executive’s
rights or benefits thereunder, unless such change occurs pursuant to a program
applicable to all executive officers of Company and Bank and does not result in
a proportionately greater adverse change in the rights of or benefits to
Executive as compared with any other executive officer of Company and Bank.  Nothing paid to Executive under any plan or
arrangement presently in effect or made available in the future shall be deemed
to be in lieu of the salary payable to Executive pursuant to Section 4(a) hereof.

 

(f)  Term Life Insurance; Long-Term
Disability Insurance.  During the
term of this Agreement, Company or Bank shall maintain a term life insurance
policy on the life of Executive in the amount of $1,000,000.  The beneficiary of such term life insurance
policy shall be designated by Executive. 
Company or Bank shall pay (or reimburse Executive for) the premiums on
the existing Provident Life and Accident Insurance Company long-term disability
policy (No. 06-600-7877618) maintained for the benefit of Executive or, at
the option of Company or Bank, pay (or reimburse Executive for) the premiums
payable on a substitute long-term disability policy providing comparable
benefits and coverage and reasonably acceptable to Executive.

 

(g)  Stock Options.  Concurrently with the execution of this
Agreement, Leesport shall grant Employee incentive stock options (the “Options”)
to purchase fifty thousand (50,000) shares of common stock of Leesport
(the “Common Stock”) under Leesport’s stock option plan existing on the date of
this Agreement.  The exercise price of
the Options shall equal the fair market value of the Common Stock (as defined
in the option plan) as of the grant date. 
The Options shall be subject to a three (3) year vesting provision,
with one-third (1/3)
of the total number of Options vesting on September 19, 2006, one-third (1/3) of the total number of
Options vesting on September 19, 2007, and one-third (1/3) of the total number of Options vesting on September 19,
2008.  The Options shall provide for a
term of ten (10) years and shall otherwise be subject to the terms and
conditions of Company’s stock option plan. 
As permitted by Company’s stock option plan, the option agreement
evidencing grant of the Options shall provide that (i) vesting of the
Options shall automatically accelerate in the events that Executive’s employment
is terminated involuntarily other than for Cause or Disability, or Executive
terminates his employment voluntarily for Good Reason, (ii) Executive
shall have 3 months following termination of employment to exercise such
Options

 

4

 

in the events that Executive’s employment is terminated involuntarily
other than for Cause or Disability, or Executive terminates his employment
voluntarily for Good Reason, and (iii) Executive, or Executive’s estate or
qualified personal representatives, as the case may be, shall have 12 months
following termination of employment to exercise Options vested at the date of
termination of employment in the event that Executive’s employment is
involuntarily terminated for Disability or in the event of Executive’s death.

 

(h)  Country Club Membership.  During the term of this Agreement, Company or
Bank shall pay or reimburse Executive for the cost of membership and annual
dues at a country club mutually acceptable to Company and Executive.

 

5.  Termination of Employment Following Change in Control.

 

(a)  If a Change in Control (as defined
in Section 5(b) of this Agreement) shall occur and if thereafter at
any time there shall be any voluntary or involuntary termination of Executive’s
employment (other than for the reasons set forth in Section 3(b) or 3(d) of
this Agreement), then the provisions of Section 6 of this Agreement shall
apply.

 

(b)  As used in this Agreement, “Change
in Control” shall mean the occurrence of any of the following:

 

(i)  (A)  a merger, consolidation,
or division involving Company or Bank, (B) a sale, exchange, transfer, or
other disposition of substantially all of the assets of Company, or (C) a
purchase by Company of substantially all of the assets of another entity,
unless (x) such merger, consolidation, division, sale, exchange, transfer,
purchase or disposition is approved in advance by eighty percent (80%) or more
of the members of the Board of Directors of Company or Bank, as applicable, who
are not interested in the transaction and (y) a majority of the members of
the Board of Directors of the legal entity resulting from or existing after any
such transaction and of the Board of Directors of such entity’s parent
corporation, if any, are former members of the Board of Directors of Company or
Bank, as applicable; or

 

(ii)  any other change in control of
Company similar in effect to any of the foregoing.

 

6.  Rights in Event of Termination of Employment Following Change in Control.

 

(a)  In the event that there is a Change
in Control and the Executive’s employment terminates voluntarily or
involuntarily other than for Cause or prior Disability, Executive shall be
absolutely entitled to receive the compensation and benefits set forth below:

 

(i)  Company and Bank shall pay (or
cause to be paid), in the aggregate, to Executive in cash, within thirty (30)
days following termination, an amount equal to two (2.0) multiplied by the
highest annualized base salary paid or payable to Executive at any time during
the three (3) years preceding such termination (including the year in
which termination occurs); and

 

5

 

(ii)  for a period of twenty-four (24)
months following termination, the Executive shall be entitled to continued
participation in Company’s health and other welfare benefit plans; provided,
however, that, if the Executive is not permitted to participate in any of such
plans in accordance with the administrative provisions of those plans and
applicable federal and state law, Company and Bank shall pay (or cause to be
paid) to Executive in cash an amount equal to the after-tax cost to Executive
to obtain substantially similar benefits.

 

(b)  Executive shall not be required to
mitigate the amount of any payment provided for in this Section 6 by
seeking other employment or otherwise. 
The amount of payment or the benefit provided for in this Section 6
shall not be reduced by any compensation earned by Executive as the result of
employment by another employer or by reason of Executive’s receipt of or right
to receive any retirement or other benefits after the date of termination of
employment or otherwise.

 

(c)  Except as otherwise provided in Section 4(g),
the amounts payable pursuant to this Section 6 shall constitute Executive’s
sole and exclusive remedy in the event of involuntary termination of Executive’s
employment by Company and/or Bank following a Change in Control.

 

7.  Rights in Event of Termination of Employment Absent Change in Control.

 

(a)  In the event that Executive’s
employment is involuntarily terminated by Company and/or Bank other than for
Cause or Disability and no Change in Control shall have occurred at the date of
such termination, Company and Bank shall continue to pay (or cause to be paid)
Executive’s monthly base salary in effect on the date of termination for a
period of months equal to the lesser of (i) the number of months remaining
in the Employment Period or (ii) 18.

 

(b)  In the event that Executive’s
employment terminates voluntarily for Good Reason (as defined in this
subsection) and no Change in Control shall have occurred at the date of
termination; Company and Bank shall continue to pay (or cause to be paid)
Executive’s monthly base salary in effect on the date of termination for a period
of 12 months.  For purposes of this
subsection, “Good Reason” shall mean the occurrence of any of the following
without Executive’s consent:  (i) a
material adverse change in Executive’s title, job description, or duties
(including a change resulting from the assumption by Company’s Chairman of the
Board of Directors of an active role in the day-to-day operations of Company or
Bank); (ii) a reduction in Executive’s base salary; or (iii) a
material breach of this Agreement by Company or Bank, which breach is not cured
within 15 days of written notice from Executive to Company and Bank.

 

(c)  In addition to the continued
compensation to Executive provided by Section 7(a) or 7(b), as
applicable, Executive shall be entitled to continued participation in Company’s
health and other welfare benefit plans during the period in which Executive is
receiving continued compensation in accordance with Section 7(a) or
7(b), as applicable; provided, however, that, if Executive is not permitted to
participate in any of such plans in accordance with the administrative
provisions of those plans and applicable federal and state

 

6

 

law, Company
and Bank shall pay (or cause to be paid) to Executive in cash an amount equal
to the after-tax cost to Executive to obtain substantially similar benefits.

 

(d)  Executive shall not be required to
mitigate the amount of any payment provided for in this Section 7 by
seeking other employment or otherwise. 
The amount of payment or the benefit provided for in this Section 7
shall not be reduced by any compensation earned by Executive as the result of
employment by another employer or by reason of Executive’s receipt of or right
to receive any retirement or other benefits after the date of termination of
employment or otherwise.

 

(e)  Except as otherwise provided in Section 4(g),
the amounts payable pursuant to this Section 7 shall constitute Executive’s
sole and exclusive remedy in the event of involuntary termination of Executive’s
employment by Company and/or Bank in the absence of a Change in Control.

 

8.  Potential Additional Termination Benefit.  In the event that the amounts and benefits
payable under Sections 6 or 7 this Agreement, when added to other amounts
and benefits which may become payable to the Executive by Company or Bank, are
such that Executive becomes subject to the excise tax provisions of Section 4999
of the Internal Revenue Code of 1986, as amended (the “Code”), Company shall
pay Executive such additional amount or amounts as will result in the Executive’s
retention (after the payment of all federal, state and local excise,
employment, and income taxes on such payments and the value of such benefits)
of a net amount equal to the net amount the Executive would have retained had
the initially calculated payments and benefits been subject only to income and
employment taxation.  For purposes of the
preceding sentence, the Executive shall be deemed to be subject to the highest
marginal federal, state, local and (if relevant) foreign tax rates.  All calculations required to be made under
this subsection shall be made by Company’s independent public accountants,
subject to the right of the Executive’s representatives to review the
same.  All such amounts required to be
paid shall be paid at the time any withholding may be required under applicable
law, and any additional amounts to which the Executive may be entitled shall be
paid or reimbursed no later than fifteen (15) days following confirmation of
such amount by Company’s independent accountants.  In the event that any amounts paid hereunder
by Company are subsequently determined to be in excess of the amounts owed
because estimates were required or otherwise, the Executive will reimburse Company
to correct the error upon written notice from Company, together with written
confirmation of the same by Company’s independent accountants, as appropriate,
and to pay interest thereon at the applicable federal rate (as determined under
Code Section 1274 for the period of time such erroneous amount remained
outstanding and unreimbursed).  In the
event that any amounts paid hereunder by Company are subsequently determined to
be less than the amounts owed (or paid later than when due) for any reason,
Company will pay to the Executive the deficient amount, together with (i) interest
at the greater of the above-referenced rate or the interest he is required to
pay taxing authorities plus (ii) any penalties assessed against the
Executive by such authorities.  Prior to
its payment to the Executive, Company shall be entitled to request the delivery
of proof (by calculations made by the Executive’s accountant or, in the case of
tax assessments, the Executive’s delivery of copies of such assessments) of the
underpaid amounts and any interest or penalties assessed by taxing
authorities.  The parties recognize that
the actual implementation of the provisions of this

 

7

 

subsection are
complex and agree to deal with each other in good faith to resolve any questions
or disagreements arising hereunder.

 

9.  Covenant Not to Compete
or Solicit.

 

(a)  Executive hereby acknowledges and
recognizes the highly competitive nature of the business of Company and Bank
and accordingly agrees that, during and for the applicable period set forth in Section 9(c) hereof,
Executive shall not (except in connection with the performance of his duties
hereunder):

 

(i)  be engaged, directly or indirectly,
either for his own account or as agent, consultant, employee, partner, officer,
director, proprietor, investor (except as an investor owning less than 5% of
the stock of a publicly owned company) or otherwise of any person, firm,
corporation, or enterprise engaged, in (1) the banking (including bank
holding company), insurance brokerage or financial services industry, or (2) any
other activity in which Company or any of its subsidiaries is engaged at the
date of termination of the Executive’s employment, in any county in which, at
that date, a branch, office or other facility of Company, Bank or any of their
respective direct or indirect subsidiaries is located or in which is located
any such facility as to which Company, Bank or any of their respective direct
or indirect subsidiaries is party to a binding commitment, letter of intent, memorandum
of understanding or some other document that evidences its acquisition of such
facility, or in any county contiguous to such a county, including contiguous
counties located outside of the Commonwealth of Pennsylvania (the “Non-Competition
Area”);

 

(ii)  directly or indirectly solicit the
sale of or sell any financial service or product offered by Company or Bank to
any current customer or client of Company or Bank or any customer or client who
did business with Company or Bank at any time within the twelve (12)-month
period preceding the effective date of termination; or

 

(iii)  directly or indirectly solicit
any employee of Company or Bank or induce any such employee to terminate their
employment relationship with Company or Bank.

 

(b)  It is expressly understood and
agreed that, although Executive and Company consider the restrictions contained
in Section 9(a) hereof reasonable for the purpose of preserving for
Company and its subsidiaries their good will and other proprietary rights, if a
final judicial determination is made by a court having jurisdiction that the
time or territory or any other restriction contained in Section 9(a) hereof
is an unreasonable or otherwise unenforceable restriction against Executive,
the provisions of Section 9(a) hereof shall not be rendered void but
shall be deemed amended to apply as to such maximum time and territory and to
such other extent as such court may judicially determine or indicate to be
reasonable.

 

(c)  The provisions
of this Section 9 shall be applicable commencing on the date of
this Agreement and ending on one of the following dates, as applicable:

 

8

 

(i)  if Company and/or Bank terminate
Executive’s employment involuntarily other than for Cause and no Change in
Control shall have occurred at the date of termination, the date of termination
of any severance payments under Section 7(a) of this Agreement;

 

(ii)  if Executive voluntarily
terminates his employment with Company and/or Bank for Good Reason and no
Change in Control shall have occurred, the date of termination of any severance
payments under Section 7(b) of this Agreement;

 

(iii)  if Executive voluntarily
terminates his employment with Company and/or Bank without Good Reason and no
Change in Control shall have occurred or if Company and/or Bank terminate
Executive’s employment for Cause, 18 months from the date of termination of
Executive’s employment;

 

(iv)  if Company and/or Bank terminate
Executive’s employment other than for Cause following a Change in Control or if
Executive voluntarily terminates his employment following a Change in Control,
the effective date of termination of Executive’s employment;

 

(v)  if Executive’s employment
terminates as a result of Company and/or Bank giving notice of nonrenewal of
the Employment Period in accordance with Section 3(a), the effective date
of termination of Executive’s employment; or

 

(vi)  if Executive’s employment
terminates as a result of Executvie giving notice of nonrenewal of the
Employment Period in accordance with Section 3(a), 6 months from the date
of termination of Executive’s employment with respect to the provisions of Section 9(a)(i) and
18 months from the date of termination of Executive’s employment with respect
to the provisions of Section 9(a)(ii) and 9(a)(iii).

 

10.  Notices.  Except as otherwise provided in this
Agreement, any notice required or permitted to be given under this Agreement
shall be deemed properly given if in writing and if mailed by registered or
certified mail, postage prepaid with return receipt requested, to Executive’s
residence, in the case of notices to Executive, and to the principal executive
offices of Company and Bank, in the case of notices to Company and Bank.

 

11.  Waiver.  No provision of this Agreement may be
modified, waived, or discharged unless such waiver, modification, or discharge
is agreed to in writing and signed by Executive and an executive officer
specifically designated by the Boards of Directors of Company and Bank.  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 at any prior or subsequent time.

 

12.  Assignment.  This Agreement shall not be assignable by any
party, except by Company and Bank to any successor in interest to their
respective businesses that expressly assumes and agrees to perform this
Agreement as described in Section 14(a) hereof.

 

9

 

13.  Entire Agreement.  This Agreement contains the entire agreement
of the parties relating to the subject matter of this Agreement.

 

14.  Successors; Binding Agreement.

 

(a)  Company and Bank will require any successor (whether
direct or indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the businesses and/or assets of Company and Bank to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that Company and Bank would be required to perform it if no
such succession had taken place.  Failure
by Company and Bank to obtain such assumption and agreement prior to the
effectiveness of any such succession shall constitute a breach of this
Agreement and the provisions of Section 6 of this Agreement shall
apply.  As used in this Agreement, “Company”
and “Bank” shall mean Company and Bank as defined previously and any successor
to their respective businesses and/or assets as aforesaid which assumes and
agrees to perform this Agreement by operation of law or otherwise.

 

(b)  This Agreement shall inure to the benefit of and be
enforceable by Executive’s personal or legal representatives, executors,
administrators, heirs, distributees, devisees, and legatees.  If Executive should die following termination
of Executive’s employment, and any amounts would be payable to Executive under
this Agreement if Executive had continued to live, all such amounts shall be paid
in accordance with the terms of this Agreement to Executive’s devisee, legatee,
or other designee, or, if there is no such designee, to Executive’s estate.

 

15.  Arbitration.  Company, Bank and Executive recognize that,
in the event a dispute should arise between them concerning the interpretation
or implementation of this Agreement, lengthy and expensive litigation will not
afford a practical resolution of the issues within a reasonable period of
time.  Consequently, each party agrees
that all disputes, disagreements and questions of interpretation concerning
this Agreement are to be submitted for resolution, in Reading, Pennsylvania, to
the American Arbitration Association (the “Association”) in accordance with the
Association’s National Rules for the Resolution of Employment Disputes or
other applicable rules then in effect (“Rules”).  Company and Bank or Executive may initiate an
arbitration proceeding at any time by giving notice to the other in accordance
with the Rules.  Company, Bank and
Executive, may, as a matter of right, mutually agree on the appointment of a
particular arbitrator from the Association’s pool.  The arbitrator shall not be bound by the rules of
evidence and procedure of the courts of the Commonwealth of Pennsylvania but
shall be bound by the substantive law applicable to this Agreement.  The decision of the arbitrator, absent fraud,
duress, incompetence or gross and obvious error of fact, shall be final and
binding upon the parties and shall be enforceable in courts of proper jurisdiction.  Following written notice of a request for
arbitration, Company, Bank and Executive shall be entitled to an injunction
restraining all further proceedings in any pending or subsequently filed
litigation concerning this Agreement. 
Notwithstanding the foregoing, Company and/or Bank may pursue injunctive
relief for breaches or alleged breaches by Executive of the provisions of Section 9
or Section 16 of this Agreement only in courts of proper jurisdiction.

 

10

 

16.  Unauthorized Disclosure of Confidential Information.  During
the term of Executive’s employment hereunder, or at any later time, Executive
shall not, without the written consent of the Board of Directors of Company or
a person authorized by such Board, knowingly disclose to any person, other than
an employee of Company or a person to whom disclosure is reasonably necessary
or appropriate in connection with the performance by Executive of his duties on
behalf of Company, any material confidential information obtained by Executive
while employed by Company and Bank with respect to any services, products,
improvements, formulas, designs or styles, processes, customers, methods of
business or any business practices of Company, Bank or any of their respective
subsidiaries the disclosure of which could be damaging to Company, Bank or any
of such subsidiaries; provided, however, that confidential information shall
not include any information known generally to the public (other than as a
result of unauthorized disclosure by Executive or any person with the
assistance, consent or direction of Executive) or any information of a type not
otherwise considered confidential by persons engaged in the same business or a
business similar to that conducted by Company, Bank or any of their respective
subsidiaries, Executive’s “know-how,” or any information that must be disclosed
as required by law.

 

17.  Validity.  The invalidity or unenforceability of any
provision 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.

 

18.  Applicable Law.  This Agreement shall be governed by and
construed in accordance with the domestic, internal laws of the Commonwealth of
Pennsylvania, without regard to its conflicts of laws principles.

 

11

 

19.  Headings.  The section headings of this Agreement
are for convenience only and shall not control or affect the meaning or
construction or limit the scope or intent of any of the provisions of this
Agreement.

 

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the date first above
written.

 

	
   

  	
  LEESPORT
  FINANCIAL CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alfred
  J. Weber

  	
  (SEAL)

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Jenette
  L. Eck

  
	
   

  	
   

  	
  “Company”

  
	
   

  	
   

  
	
   

  	
  LEESPORT
  BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alfred
  J. Weber

  	
  (SEAL)

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Jenette
  L. Eck

  
	
   

  	
   

  	
  “Bank”

  
	
   

  	
   

  
	
  Witness:

  	
   

  
	
   

  	
   

  
	
  /s/ Jenette L. Eck

  	
   

  	
  /s/ Robert D. Davis

  	
  (SEAL)

  
	
   

  	
  Robert D.
  Davis

  
	
   

  	
   

  	
  “Executive”

  
										

 

12

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