Document:

Exhibit
10.35

 

SECOND
AMENDED & RESTATED

EMPLOYMENT AGREEMENT

 

THIS SECOND AMENDED AND RESTATED AGREEMENT is made and
entered into as of August 1, 2003, by and between CHAUTAUQUA AIRLINES, INC.
(hereinafter referred to as the “Company”), an Indiana corporation, and Wayne
C. Heller (hereinafter referred to as the “Executive”).

 

R E C I T A L S

 

WHEREAS, the Executive is party to an Employment
Agreement dated as of July 16, 1999 with the Company (the “Prior Agreement”);
and

 

WHEREAS, the Executive and the Company are parties to
an Amended & Restated Employment Agreement (the “Restated Agreement”), the
effectiveness of which was subject to the condition that Republic Airways
Holdings Inc., the parent of the Company (“RJET”) complete an initial public
offering on or before September 30, 2002 (the “IPO Condition”); and

 

WHEREAS, the Executive and the Company are parties to
an Amendment to the Restated Agreement (the “Restated Agreement Amendment”),
pursuant to which the deadline for satisfaction of the IPO Condition was
extended through and including March 31, 2003; and

 

WHEREAS, the IPO Condition was not satisfied as of the
deadlines set forth in the Restated Agreement or the Restated Agreement
Amendment, and as a result, the Restated Agreement has not become effective and
is null and void in all respects and the Executive shall have no rights
thereunder, including without limitation, any rights to any New Options (as
defined therein); and

 

WHEREAS, the Company and the Executive desire to amend
certain provisions of the Prior Agreement and to enter into this Second Amended
and Restated Employment Agreement,

 

NOW, THEREFORE, in consideration of the foregoing and
the mutual covenants hereinafter set forth and other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound, the parties hereto agree as follows:

 

1.                                       Employment.  The Company agrees to employ the Executive,
and the Executive agrees to render his services to the Company, as its
Executive Vice President and Chief Operating Officer, during the Term (as
defined below).  In connection with his
employment the Executive shall serve without additional payment or compensation
of any kind as an officer of any direct or indirect subsidiary or affiliate of
the Company designated by the Board of Directors of the Company (including
without limitation, RJET, collectively, the “Affiliates”).  The Executive shall render his services at
the direction of the President and the Board of Directors of the Company at the
Company’s offices in Indianapolis, Indiana. 
The Executive agrees to use his best efforts to promote and further the
business, reputation and good name of the Company and the Affiliates
(collectively,

 

 

the “Company Group”) and the Executive shall promptly and faithfully
comply with all instructions, directions, requests, rules and regulations made
or issued from time to time by the Company.

 

2.                                       Term.  The term of employment pursuant to this
Agreement (the “Term”) shall continue until July 31, 2005; provided that either
party may terminate this Agreement by providing the other with 30 days prior
written notice of such termination. 
Notwithstanding the foregoing, this Agreement may be terminated by the
Company or by the Executive in the event that “Cause” for such termination
exists as provided in Section 8 below. 
In the event (i) the Company terminates this Agreement or the
Executive’s employment other than for Cause, or (ii) the Executive terminates
this Agreement or the Executive’s employment for Cause, the Company shall pay
the Executive Severance Compensation as provided in Section 4 hereof.  In the event the Company terminates this
Agreement or the Executive’s employment for Cause, or in the event the Executive
terminates this Agreement or his employment other than for Cause, the Executive
shall not be entitled to any Severance Compensation or other compensation of
any kind following the effective date of such termination.

 

3.                                       Compensation.  As full and complete compensation for all
the Executive’s services hereunder, the Company shall pay the Executive the
compensation described below.

 

(a)                                  Base
Salary.  During the Term, the
Company shall pay the Executive an annual base salary of $140,000 (“Base
Salary”). The Board of Directors shall review the Executive’s Base Salary each
year and shall have the right in its discretion to increase such Base Salary.
In the event this Agreement is terminated prior to the expiration of the Term,
the Company shall pay to the Executive, in addition to any Severance Compensation
payable under Section 4, any accrued but unpaid Base Salary through the
termination date.

 

(b)                                 Annual
Deferred Compensation.  In addition
to the Base Salary, during the Term, the Company shall pay to the Executive an
annual deferred compensation payment (a “Deferred Compensation Payment”) in the
amount of $56,000.  The Deferred
Compensation Payment shall be paid each year during the Term at the end of the
calendar year and shall be prorated for the 2005 calendar year for the period
from January 1, 2005 through the end of the Term.  In the event this Agreement or the Executive’s employment is
terminated, the Executive shall not be entitled to any Deferred Compensation
Payment for such year or any subsequent period.

 

(c)                                  Bonus.  In addition to the Base Salary and Deferred
Compensation Payment, during the Term, the Company may pay to the Executive an
annual bonus (a “Bonus”) in an amount, if any, as the Board of Directors of the
Company shall determine in its discretion. 
The Bonus, if any, may be paid each year during the Term at the end of
the calendar year and may be prorated for the 2005 calendar year for the period
from January 1, 2005 through the end of the Term.  In the event this Agreement or the  Executive’s employment is
terminated, the  Executive shall not be entitled to any Bonus Compensation for
such year or any subsequent period.

 

2

 

4.                                       Severance
Compensation.  In the event (i) the
Company terminates this Agreement or the Executive’s employment with the
Company other than for Cause, or (ii) the Executive terminates this Agreement
or his employment with the Company for Cause, the Company shall pay to the
Executive as Severance Compensation $140,000, provided that in the event the
remainder of the Term is less than 12 months, such Severance Compensation shall
be prorated for the remainder of the Term. 
For example, if the Company terminates this Agreement other than for
Cause with 4 months remaining in the Term, the Company shall pay the Executive
Severance Compensation of $46,667.  The
Executive shall also receive as Severance Compensation continuation of medical
benefits for the lesser of 12 months or the remainder of the Term.

 

5.                                       No
Other Compensation.  Except as
otherwise expressly provided herein, or in any other written document executed
by the Company and the Executive, no other compensation or other consideration
shall become due or payable to the Executive on account of the services
rendered to the Company Group.  The
Company shall have the right to deduct and withhold from the compensation
payable to the Executive hereunder any amounts required to be deducted and
withheld under the provisions of any statute, regulation, ordinance, order or
any other amendment thereto, heretofore or hereafter enacted, requiring the
withholding or deduction of compensation.

 

6.                                       Medical
& 401K Benefits.    The Company
agrees that the Executive shall be entitled to participate in any retirement,
401K, disability, medical, pension, profit sharing, group insurance, or any
other plan or arrangement, or in any other benefits now or hereafter generally
available to executives of the Company, in each case to the extent that the
Executive shall be eligible under the general provisions thereof.

 

7.                                       Vacation.  The Executive shall be entitled to take
three weeks of paid vacation which shall accrue monthly during each 12 months
of the Executive’s employment hereunder, and which vacation shall be taken on
dates to be selected by mutual agreement of the Company and the Executive.

 

8.                                       Termination
for Cause.

 

(a)                                  Termination
for Cause by the Company.  The
Company, by written notice to the Executive, may immediately terminate this
Agreement and the Executive’s employment hereunder for Cause. As used herein, a
termination by the Company “for Cause” shall mean that the Executive has (i)
willfully or materially refused to perform a material part of his duties
hereunder, (ii) materially breached the provisions of Sections 9, 10 or 11
hereof, (iii) acted fraudulently or dishonestly in his relations with the
Company, (iv) committed larceny, embezzlement, conversion or any other act
involving the misappropriation of Company funds or assets in the course of his
employment, or (v) been indicted or convicted of any felony or other crime
involving an act of moral turpitude.

 

(b)                                 Termination
for Cause by the Executive.  The
Executive, by 20 business days prior written notice to the Company, may
terminate this Agreement and his employment hereunder for Cause, provided that
the Company shall have the right to cure such Cause within such 20 business day

 

3

 

period.  As used herein, a termination by the
Executive “for Cause” shall mean that (i) the Company has materially diminished
the duties and responsibilities of the Executive with respect to the Company,
(ii) the Company has required the Executive to relocate his residence from
Indianapolis to another location without the consent of the Executive or (iii)
a Change of Control has occurred.  As used
herein, a “Change of Control” shall mean a transaction, other than a public or
private offering of Common Stock by RJET pursuant to which a shareholder other
than Wexford Capital LLC (“Wexford”) and its Affiliates acquires majority
voting control of RJET.

 

9.                                       Confidential
Information.  The Executive
recognizes and acknowledges that he shall receive in the course of his
employment hereunder certain confidential information and trade secrets
concerning the Company Group’s business and affairs which may be of great value
to the Company Group.  The Executive
therefore agrees that he will not disclose any such information relating to the
Company Group, the Company Group’s personnel or their operations other than in
the ordinary course of business or in any way use such information in any
manner which could adversely affect the Company Group’s business.  For purposes of this Agreement, the terms
“trade secrets” and “confidential information” shall include any and all information
concerning the business and affairs of the Company Group and any division or
other affiliate of the Company Group that is not generally available to the
public.

 

10.                                 Non-Competition.  The Executive agrees that without the prior
written consent of the Board of Directors during the Term and for a period of
12 months following the termination or expiration of this Agreement, he will
not participate as an advisor, partner, joint venturer, investor, lender,
consultant or in any other capacity in any business transaction or proposed
business transaction (a) with respect to which the Executive had a material
personal involvement on behalf of the Company Group during the last 12 months
of his employment with the Company, or (b) that could reasonably be expected to
compete with the Company Group’s business or operations or proposed or
contemplated business or transactions of the Company Group that are (I) known
by the Executive as of the date of such termination or expiration, and (II)
contemplated by the Company Group to proceed during the 12 month period
following such termination or expiration. 
For these purposes, the mere ownership by the Executive of securities of
a public company not in excess of 2% of any class of such securities shall not
be considered to be competition with the Company Group.

 

11.                                 Non-Solicitation.  The Executive agrees that during the Term,
and for a period of 12 months following the termination or expiration of this
Agreement, he shall not, without the prior written consent of the Company,
directly or indirectly, employ or retain, or have or cause any other person or
entity to employ or retain, any person who was employed by the Company Group or
any of its divisions or affiliates while the Executive was employed by the
Company.

 

12.                                 Breach
of this Agreement.  If the Executive
commits a breach, or threatens to commit a breach, of any of the provisions of
Sections 9, 10 or 11of this Agreement, then the Company shall have the right
and remedy to have those provisions specifically enforced by any court having
equity jurisdiction, it being acknowledged and agreed by the Executive that the
rights and privileges of the Company granted in Sections 9, 10 and 11 are of a
special, unique and extraordinary character and

 

4

 

any such breach or threatened breach will cause great and irreparable
injury to the Company and that money damages will not provide an adequate
remedy to the Company.

 

13.                                 Notices.  All notices and other communications
required or permitted hereunder shall be in writing (including facsimile,
telegraphic, telex or cable communication) and shall be deemed to have been
duly given when delivered by hand or mailed, certified or registered mail,
return receipt requested and postage prepaid:

 

	
  If to the Company:

  	
   

  	
  Chautauqua Airlines,
  Inc.

  
	
   

  	
   

  	
  2500 South High School Road

  
	
   

  	
   

  	
  Suite 160

  
	
   

  	
   

  	
  Indianapolis, IN 
  46421

  
	
   

  	
   

  	
  Attention: 
  Bryan K. Bedford, President

  
	
   

  	
   

  	
   

  
	
  If to the Executive:

  	
   

  	
  Wayne C. Heller

  
	
   

  	
   

  	
  14039 Honeytree Drive

  
	
   

  	
   

  	
  Carmel, IN 
  46032

  

 

14.                                 Applicable
Law.  This Agreement was negotiated
and entered into within the State of Indiana. All matters pertaining to this
Agreement shall be governed by the laws of the State of Indiana applicable to
contracts made and to be performed wholly therein.  Nothing in this Agreement shall be construed to require the
commission of any act contrary to law, and wherever there is any conflict
between any provision of this Agreement and any material present or future
statute, law, governmental regulation or ordinance as a result of which the
parties have no legal right to contract or perform, the latter shall prevail,
but in such event the provision(s) of this Agreement affected shall be
curtailed and limited only to the extent necessary to bring it or them within
the legal requirements.

 

15.                                 Entire
Agreement; Modification; Consents and Waivers.  This Agreement contains the entire agreement of the parties with
respect to the subject matter hereof and supersedes any and all prior
agreements or understandings, written or oral, between the parties with respect
to the subject matter hereof.  No
interpretation, change, termination or waiver of or extension of time for
performance under any provision of this Agreement shall be binding upon any
party unless in writing and signed by the party intended to be bound
thereby.  Except as otherwise provided
in this Agreement, no waiver of or other failure to exercise any right under or
default or extension of time for performance under any provision or this
Agreement shall affect the right of any party to exercise any subsequent right
under or otherwise enforce said provision or any other provision hereof or to
exercise any right or remedy in the event of any other default, whether or not
similar.

 

16.                                 Severability.
The parties acknowledge that, in their view, the terms of this Agreement are
fair and reasonable as of the date signed by them, including as to the scope
and duration of post-termination activities. 
Accordingly, if any one or more of the provisions contained in this Agreement
shall for any reason, whether by application of existing law or law which may
develop after the date of this Agreement, be determined by an arbitrator or
court of competent jurisdiction to be excessively

 

5

 

broad as to scope of activity, duration or territory, or otherwise
unenforceable, the parties hereby jointly request such court to construe any
such provision by limiting or reducing it so as to be enforceable to the
maximum extent in favor of the Company compatible with then-applicable
law.  If any one or more of the terms,
provisions, covenants or restrictions of this Agreement shall nonetheless be
determined by an arbitrator or court of competent jurisdiction to be invalid,
void or unenforceable, then the remainder of the terms, provisions, covenants
and restrictions of this Agreement shall remain in full force and effect and
shall in no way be affected, impaired or invalidated.

 

17.                                 Assignment.  The Company may, at its election, assign
this Agreement or any of its rights hereunder. 
This Agreement may not be assigned by the Executive.

 

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

 

19.                                 Arbitration.  Each of the parties hereby irrevocably and
unconditionally consents to arbitrate any dispute arising out of or relating in
any manner to this Agreement or the employment relationship contemplated hereby
or the termination thereof, or any alleged breach of any term or provision of
this Agreement.  Such arbitration shall
be conducted in Indianapolis, Indiana by a single arbitrator in accordance with
the rules of the American Arbitration Association then in effect.  Judgement may be entered on the arbitrator’s
award in any federal or state court in Indiana (and the parties expressly
consent to the jurisdiction of such court), or in any other court having
jurisdiction. Each of the Parties agrees that in any arbitration arising out of
or relating to this Agreement or the employment relationship contemplated
hereby or the termination thereof, or any alleged breach of any term or
provision of this Agreement or in any action to enter judgment on an award in
such arbitration each party shall bear its own fees and expenses.

 

20.                                 Survival.  The provisions of Sections 9 through 19 of
this Agreement shall survive any expiration or termination of this Agreement.

 

21.                                 Options
Under Prior Agreement.  The vesting
of any options to purchase stock of RJET previously granted to the Executive
under the terms of the Prior Agreement or any agreement entered into
contemporaneously with the Prior Agreement shall be governed by the terms of
such agreement notwithstanding any provision of this Agreement.

 

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

 

6

 

	
   

  	
  CHAUTAUQUA AIRLINES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bryan K. Bedford

  	
   

  
	
   

  	
   

  	
  Name: Bryan K.
  Bedford

  
	
   

  	
   

  	
  Title: President
  & CEO

  
	
   

  	
   

  
	
   

  	
  WAYNE C. HELLER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Wayne C. Heller

  	
   

  

 

7QuickLinks
 -- Click here to rapidly navigate through this document
  

Exhibit 10.9  

 
 

CHANGE IN CONTROL AGREEMENT    
    

        THIS AGREEMENT ("Agreement") made as of the 11th day of February, 2004, by and among Leesport Financial Corp., a
Pennsylvania business corporation ("Leesport"), Leesport Bank, a Pennsylvania banking institution (the "Bank"), and Edward C.
Barrett, an adult individual (the "Employee"). 

W
I T N E S S E T H: 

        WHEREAS,
the Employee will initially be serving as Executive Vice President and Chief Administrative Officer of both Leesport and the Bank; and 

        WHEREAS,
Leesport and the Bank consider the continued services of the Employee to be in the best interest of Leesport, the Bank, their affiliated companies and the shareholders of
Leesport; and 

        WHEREAS,
Leesport and the Bank desire to induce the Employee to remain in the employ of his then employer (whether it be Leesport or any company affiliated with Leesport (the
"Employer")) on an impartial and objective basis in the event of a proposed transaction pursuant to which a Change in Control (as defined in Section 2(c)) will occur, if completed. 

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

        1.
Term of Agreement and Related Matters. 

        (a)    In General.    Except as otherwise provided herein, the term of this Agreement will be for a period commencing
on the date of this Agreement and ending on December 31, 2006; provided, however, that this Agreement will automatically be renewed on January 1, 2007 and on January 1 of each
subsequent year (each an "Annual Renewal Date") for a period of one (1) additional year from the applicable Annual Renewal Date unless either the Employee or the Employer gives written notice
of nonrenewal of this Agreement to the other at least ninety (90) days prior to an Annual Renewal Date (in which case this Agreement will expire on the Annual Renewal Date immediately following
such notice). 

        (b)    Termination for Cause.    Notwithstanding the provisions of Section 1(a), this Agreement will terminate
automatically upon Termination for Cause of the Employee's employment by the Employer. As used in this Agreement, the term "Termination for Cause" means: 

	(i)
	prior
to the public announcement of a transaction involving an actual or potential Change in Control, termination for any reason; and

	(ii)
	concurrent
with or following the public announcement of a transaction involving an actual or potential Change in Control, termination following: (A) except if
attributable to physical or mental illness or injury, the willful failure of the Employee to materially perform the Employee's duties, but only after written demand specifically identifying the basis
for the Employee's alleged non-performance and the Employee's continued failure to perform thereafter, and, if the termination is before the actual occurrence of a Change in Control, only
after a vote of at least two-thirds of Leesport's directors then in office; (B) a willful material violation by the Employee of any applicable code of conduct or similar policy
applicable to Employees of the Employer; (C) the conviction of the Employee of, or plea of nolo contendere to, a felony or a crime of moral turpitude; or (D) the removal or prohibition
of the Employee 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 any other
provision of applicable law. 

1

 

        If,
following a public announcement involving an actual or potential Change in Control, a proposed transaction is terminated without completion, this Agreement shall thereafter be
construed as though no such announcement had ever been made; provided, however, that the rights associated with any termination of employment during the interim period shall be determined by reference
to subsection (ii) above. 

        Notwithstanding
the preceding provisions of this subsection, prior to the public announcement of a transaction involving an actual or potential Change in Control, a transfer of the
Employee to a new Employer which is Leesport, the Bank or an affiliate of either shall not be deemed a Termination for Cause and this Agreement shall continue in force. 

        If
the Employee's employment is terminated for Cause, the Employee's rights under this Agreement shall cease as of the effective date of such termination. 

        (c)    Voluntary Termination, Retirement, or Death.    Notwithstanding the provisions of Section 1(a), this
Agreement will terminate automatically upon the voluntary termination of the Employee's employment (other than in accordance with Section 2), the Employee's retirement on or after age
sixty-five (65) or the Employee's death. In any such event, the Employee's rights under this Agreement shall cease as of the effective date of such termination; provided, however,
that if the Employee dies after a Notice of Termination (as defined in Section 2(b)) is delivered by the Employee in accordance with such section, the payments described in Section 3
will nonetheless be made to the person or persons determined pursuant to Section 9(b). 

        (d)    Disability.    Notwithstanding the provisions of Section 1(a), this Agreement will terminate
automatically upon the termination of the Employee's employment by reason of the Employee's Disability. In such event, the Employee's rights under this Agreement will cease as of the effective date of
such termination; provided, however, that if the Employee becomes disabled after a Notice of Termination is delivered by the Employee in accordance with Section 2(b), the Employee will
nonetheless be entitled to receive the payments described in Section 3. As used in this Agreement, the term "Disability" means incapacitation, by accident, sickness or otherwise, such that the
Employee is rendered unable to perform the essential duties required of the Employee by the Employee's then position with the Employer, notwithstanding reasonable accommodation, for a period of six
(6) consecutive months. 

        2.
Termination Following a Change in Control. 

        (a)    Events Giving Right To Terminate For Good Reason.    If a public announcement of a transaction involving an
actual or potential Change in Control occurs and, concurrently therewith or during a period of eighteen (18) months thereafter, an event constituting Good Reason also occurs with respect to the
Employee, the Employee may terminate the Employee's employment in accordance with the provisions of Section 2(b) and, thereupon, will become entitled to the payments described in
Section 3. As used in this Agreement, the term "Good Reason" means any of the following events: 

	(i)
	the
involuntary termination of the Employee's employment, other than an involuntary termination permitted in Sections 1(b) and (d);

	(ii)
	a
material reduction in the Employee's duties or responsibilities as the same existed immediately prior to public announcement of a transaction involving an actual or
potential Change in Control, or as the same may be increased thereafter;

	(iii)
	a
reduction in the Employee's base compensation below a level that was in effect immediately prior to the public announcement of an actual or potential Change in
Control, or as may be increased thereafter; 

2

 

	(iv)
	the
failure to provide the Employee with a total compensation package (salary, welfare and pension benefits, stock options and a bonus plan evaluated on the basis of
bonus potential) reasonably comparable to the compensation package provided to the Employee immediately prior to the public announcement of an actual or potential Change in Control, or as may be
increased thereafter;

	(v)
	the
reassignment of the Employee to a principal office which is more than thirty-five (35) miles from the Employee's primary residence as of the date
of the public announcement of an actual or potential Change in Control; or

	(vi)
	any
material breach of this Agreement by the Employee's Employer at the relevant time, coupled with the failure to cure the same within thirty (30) days after
receipt of written notice of such breach from the Employee. 

        (b)    Notice of Termination.    Upon the occurrence of an event of Good Reason subject to Section 2(a), the
Employee may, within ninety (90) days of the occurrence of any such event, resign from employment by a notice in writing ("Notice of Termination") delivered to Leesport, whereupon the Employee
will become entitled to the payments and benefits described in Section 3. In the case of a termination described in Section 2(a)(i), the Employee shall confirm the Employee's involuntary
termination, in writing, within ninety (90) days of the date of such termination, and such confirmation will be deemed a Notice of Termination. 

        (c)    Change in Control Defined.    As used in this Agreement, the term "Change in Control" means any of the
following: 

	(i)
	any
"person" (as such term is used for purposes of Section 13(d) of the Securities Exchange Act of 1934 (the "Exchange Act") as in effect on the date hereof),
other than Leesport, a subsidiary of Leesport, or an employee benefit plan of Leesport or a subsidiary of Leesport (including a related trust), becomes the beneficial owner (as determined pursuant to
Rule 13d-3 under the Exchange Act), directly or indirectly of securities of Leesport representing more than 24.9% of (A) the combined voting power of Leesport's then
outstanding stock and securities or (B) the aggregate number of shares of Leesport's then outstanding common stock;

	(ii)
	the
occurrence of a sale of all or substantially all of the assets of Leesport or the Bank to an entity which is not a direct or indirect subsidiary of Leesport;

	(iii)
	the
occurrence of a reorganization, merger, consolidation or similar transaction involving Leesport, unless (A) the shareholders of Leesport immediately prior
to the consummation of any such transaction initially thereafter own securities representing at least a majority of the voting power of the surviving or resulting corporation and (B) the
directors of Leesport immediately prior to the consummation of such transaction initially thereafter represent at least a majority of the directors of the surviving or resulting corporation;

	(iv)
	a
plan of liquidation or dissolution, other than pursuant to bankruptcy or insolvency, is adopted for Leesport or the Bank;

	(v)
	during
any period of two consecutive years, individuals who, at the beginning of such period, constituted the Board of Directors of Leesport cease to constitute the
majority of such Board (unless the election of each new director was expressly or by implication approved by a majority of the Board members who were still in office and who were directors at the
beginning of such period); and

	(vi)
	the
occurrence of any other event which is irrevocably designated as a "change in control" for purposes of this Agreement by resolution adopted by a majority of the
then non-employee directors of Leesport. 

3

 

        Notwithstanding
the foregoing, a Change in Control will not be deemed to have occurred if a person becomes the beneficial owner, directly or indirectly, of stock and securities
representing more than 24.9% of the combined voting power of Leesport's then outstanding stock and securities or the aggregate number of shares of Leesport's then outstanding common stock solely as a
result of an acquisition by Leesport of its stock or securities which, by reducing the number of securities or stock outstanding, increases the proportionate number of securities or stock beneficially
owned by such person; provided, however, that if a person becomes the beneficial owner of more than 24.9% of the combined voting power of stock and securities or the aggregate number of shares of
common stock by reason of such acquisition and thereafter becomes the beneficial owner, directly or indirectly, of any additional voting stock or securities or common stock (other than by reason of a
stock split, stock dividend or similar transaction), then a Change in Control will thereupon be deemed to have occurred. 

        (d)    Termination of Proposed Change in Control Transaction.    If, following a public announcement described in
subsection (a), a proposed transaction is terminated without completion, this Agreement shall thereafter be construed as though no such announcement had ever been made; provided, however, that the
rights associated with any termination of employment or the giving of a Notice of Termination during the interim period shall be determined without regard to this subsection. 

        3.
Rights in the Event of Certain Terminations Following Change in Control. In the event the Employee validly and timely delivers a Notice of Termination to Leesport, the Employee shall
be entitled to receive the following payments and benefits: 

        (a)    Basic Payments.    The Employee shall be paid an amount equal to one (1.0) times the sum of (i) the
Employee's highest annualized base salary paid to the Employee during the year of termination of employment or the immediately preceding two (2.0) calendar years and (ii) the highest cash bonus
paid to the Employee in or with respect to the year of termination of employment or the immediately preceding two (2.0) calendar years. Payments under this Section 3(a) shall be made monthly in
twenty-four (24) equal installments (without interest) beginning on the first day of the month immediately following the month in which the Employee delivers the Notice of
Termination and continuing on the first day of each month thereafter. 

        (b)    Health and Medical Benefits.    For a period of one (1.0) year from the date of termination of employment, the
Employee shall be provided, at no charge, with a continuation of health and medical
benefits no less favorable than the health and medical benefits in effect on the date of termination of the Employee's employment. To the extent such benefits cannot be provided under a plan because
the Employee is no longer an employee of the Employer, a dollar amount equal to the after-tax cost (estimated in good faith by Leesport) of obtaining such benefits, or substantially
similar benefits, shall be paid to the Employee periodically, as appropriate. 

        (c)    Excise Tax Matters.    Notwithstanding anything in this section or elsewhere in this Agreement to the contrary,
in the event the payments and benefits payable hereunder to or on behalf of the Employee, when added to all other amounts and benefits payable to or on behalf of the Employee, would result in the
imposition of an excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended, the amounts and benefits payable hereunder shall be reduced to such extent as may be necessary
to avoid such imposition. The Employee shall have the right, within thirty (30) days of receipt of written notice from Leesport, to specify which amounts and benefits shall be reduced to
satisfy the requirements of this subsection. All calculations required to be made under this subsection will be made by Leesport's independent public accountants, subject to the right of the
Employee's representative to review the same. The parties recognize that the actual implementation of the provisions of this subsection are complex and agree to deal with each other in good faith to
resolve any questions or disagreements arising hereunder. 

4

 

        (d)    Primary Obligor.    The obligation to make payments and provide benefits under this section shall primarily be
those of the Employee's Employer as of the date of the Employee's termination of employment. In the event the Employer is not Leesport or the Bank, Leesport will cause such Employer to make required
payments and provide required benefits. To the extent Leesport fails or is unable to do so, it shall make such payments and provide such benefits. 

        4.
Legal Expenses. Leesport will pay (or cause to be paid) to the Employee all reasonable legal fees and expenses when incurred by the Employee in seeking to obtain or enforce any right
or benefit provided by this Agreement, provided the Employee acts in good faith with respect to issues raised. 

        5.
Notices. Any notice required or permitted to be given under this Agreement will, to be effective hereunder, be given to Leesport, in the case of notices given by the Employee, and
will, to be effective hereunder, be given by Leesport, in the case of notices given to the Employee. Any such notice will be deemed properly given if in writing and if mailed by registered or
certified mail, postage prepaid with return receipt requested, to the last known residence address of the Employee, in the case of notices to the Employee, and to the principal office of Leesport, in
the case of notices to Leesport. 

        6.
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 the Employee and an
Employee officer of Leesport designated for such purpose by the Board of Directors of Leesport. No waiver by any party
hereto at any time of any breach by another party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party will be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent time. 

        7.
Assignment. This Agreement is not assignable by any party hereto, except by Leesport and the Bank to any successor in interest to the respective businesses of Leesport and the Bank. 

        8.
Entire Agreement. This Agreement contains the entire agreement of the parties relating to the subject matter hereof and, in accordance with the provisions of Section 18,
supersedes any prior agreement of the parties. 

        9.
Successors; Binding Effect. 

        (a)    Successors.    Leesport will require any successor (whether direct or indirect, by purchase, merger,
consolidation, or otherwise) to all or substantially all of the business and/or assets of Leesport and/or the Bank to expressly assume and agree to perform this Agreement (or cause it to be performed)
in the same manner and to the same extent that Leesport, the Bank or any affiliated company of either would be required to perform it if no such succession had taken place. Failure by Leesport to
obtain such assumption and agreement prior to the effectiveness of any such succession shall constitute a material breach of this Agreement under Section 2(a)(vi). As used in this Agreement,
"Leesport" and the "Bank" mean Leesport and the Bank as hereinbefore defined and any successor to the business and/or assets of Leesport and/or the Bank as aforesaid which assumes and agrees to
perform this Agreement by operation of law, or otherwise. 

        (b)    Binding Effect.    This Agreement shall inure to the benefit of and be enforceable by the Employee's personal
or legal representatives, executors, administrators, heirs, distributees, devisees, and legatees. If the Employee should die while any amount is payable to the Employee under this Agreement if the
Employee had continued to live, all such amounts, unless otherwise provided herein, will be paid in accordance with the terms of this Agreement to the Employee's surviving spouse or, if there is no
such person, to the Employee's estate. 

        10.
Continuation of Certain Provisions. Any termination of the Employee's employment under this Agreement or of this Agreement will not affect the benefit provisions of Section 3
or 4, which will, if relevant, survive any such termination and remain in full force and effect in accordance with their respective terms. 

5

 

        11.
Other Rights. Except as provided in Sections 3(c) and 18, nothing herein shall be construed as limiting, restricting or eliminating any rights the Employee may have under any plan,
contract or arrangement to which the Employee is a party or in which the Employee is a vested participant; provided, however, that any termination payments required hereunder will be in lieu of any
severance benefits to which the Employee may be entitled under a severance plan or arrangement of Leesport, the Bank, an affiliate of either, or an entity which is the successor of any of them or an
affiliate thereof; and provided further, that if the benefits under any such plan or arrangement may not legally be eliminated, then the payments hereunder will be correspondingly reduced in such
equitable manner as the Board of Directors of Leesport may determine. 

        12.
No Mitigation or Offset. The Employee shall not be required to mitigate the amount of any payment or benefit provided for in this Agreement by seeking employment or otherwise; nor
shall any amounts or benefits payable or provided hereunder be reduced in the event the Employee does secure employment. 

        13.
Validity. The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which will
remain in full force and effect. 

        14.
Applicable Law. Except to the extent preempted by federal law, this Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania
without regard to its conflicts of law principles. 

        15.
Number. Words used herein in the singular shall be construed as being used in the plural, as the context requires, and vice versa. 

        16.
Headings. The headings of the sections and subsections 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. 

        17.
References to Entities. All references to Leesport shall be deemed to include references to the Bank, or any affiliate of either, as appropriate in the relevant context, and vice
versa; provided, however, that this section shall not be construed in a manner that results in a determination that a transaction constitutes a Change in Control unless such transaction is literally
described in the definition of such term. 

        18.
Effective Date; Termination of Prior Agreements. This Agreement shall become effective immediately upon the execution and delivery of the same by the parties hereto. Upon the
execution
and delivery of this Agreement, any prior agreement relating to the subject matter hereof will be deemed automatically terminated and be of no further force or effect. 

        19.
Withholding For Taxes. All amounts and benefits paid or provided hereunder shall be subject to withholding for taxes as required by law. 

        20.
Nonsolicitation of Employees and Customers. During the period of time that any payments and benefits are to be provided to Employee under Section 3, the Employee shall refrain
from directly or indirectly soliciting for employment or business relationship purposes pertaining to the financial services business of Leesport or the Bank employees or customers of Leesport, the
Bank or any affiliate of either or any successor to either as of the date of the Employee's termination of employment. In the event of a breach of this section, the Employee's right to payments and
benefits under Sections 3 and 4 shall immediately terminate. Leesport or any successor shall be entitled to recover any payments or benefits made following the commencement of the prohibited conduct,
but before discovery of the same, and may commence an action in any court of competent jurisdiction for such additional legal and equitable relief as it may deem necessary or appropriate to recover
damages incurred by reason of such conduct and to preclude continued violation of this section. 

6

 

        IN
WITNESS WHEREOF, the parties have executed this Agreement, or caused it to be executed, as of the date first above written. 

	 	 	LEESPORT FINANCIAL CORP.
	

 	
 	
By:	

/s/  RAYMOND H. MELCHER, JR.      

	

(SEAL)	
 	

Attest:	

/s/  JENETTE L. ECK      
 Secretary

	

 	
 	
LEESPORT BANK
	

 	
 	
By:	

/s/  RAYMOND H. MELCHER, JR.      

	

(SEAL)	
 	

Attest:	

/s/  JENETTE L. ECK      
 Secretary
	

 	
 	

 	

/s/  EDWARD C. BARRETT      
Edward C. Barrett

7

QuickLinks

CHANGE IN CONTROL AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]