Document:

Exhibit
10.9

 

CHANGE IN CONTROL
AGREEMENT

THIS AGREEMENT (“Agreement”) made as of the 4th day of
February, 2004, by and among Leesport Financial Corp.,
a Pennsylvania business corporation (“Leesport”), Leesport
Bank, a Pennsylvania banking institution (the “Bank”), and Stephen A. Murray, an adult individual (the “Employee”).

W I T N E S S E T H:

WHEREAS, the Employee will initially be serving as
Senior Vice President and Chief Financial 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

 

1

 

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.

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

 

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;

(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.

 

3

 

(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.

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

 

4

 

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.

 

5

 

 

(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

6

 

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.

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.

 

7

 

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.

 

8

 

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.

  
	
   

  	
   

  	
  Raymond H. Melcher, Jr.

  
	
   

  	
   

  	
  Chairman, President and

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  

 

	
  (SEAL)

  	
  Attest: 

  	
  /s/ Jenette L.
  Eck

  
	
   

  	
   

  	
  Secretary

  

 

 

	
   

  	
  LEESPORT BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By 

  	
  /s/ Raymond H. Melcher,
  Jr.

  
	
   

  	
   

  	
  Raymond H. Melcher, Jr.

  
	
   

  	
   

  	
  Chairman, President and

  
	
   

  	
   

  	
  Chief Executive Officer

  

 

 

	
  (SEAL)

  	
  Attest: 

  	
  /s/ Jenette L.
  Eck

  
	
   

  	
   

  	
  Secretary

  

 

 

	
  Witness:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Jenette L.
  Eck

  	
   

  	
   

  	
  /s/ Stephen A.
  Murray

  	
  (SEAL)

  
	
   

  	
   

  	
  Stephen A. Murray

  
					

 

 

9Exhibit
10.10

 

CHANGE IN CONTROL
AGREEMENT

THIS AGREEMENT (“Agreement”) made as of the 5th day of
February, 2004, by and among Leesport Financial Corp.,
a Pennsylvania business corporation (“Leesport”), Leesport
Bank, a Pennsylvania banking institution (the “Bank”), and Jenette L. Eck, an adult individual (the “Employee”).

W I T N E S S E T H:

WHEREAS, the Employee will initially be serving as
Vice President of Shareholder Relations and Corporate Secretary of Leesport and
Corporate Secretary of 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 the Employee’s 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 

 

1

 

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.

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

 

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;

(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.

 

3

 

(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.

 

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 

 

4

 

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.

 

5

 

(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 

 

6

 

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.

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.

 

7

 

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.

 

8

 

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.

  	
   

  
	
   

  	
   

  	
  Raymond H. Melcher, Jr.

  	
   

  
	
   

  	
   

  	
  Chairman, President and

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (SEAL)

  	
  Attest:

  	
   /s/ Laurie Heyer

  	
   

  
	
   

  	
   

  	
  Assistant Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LEESPORT BANK

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By 

  	
  /s/ Raymond H. Melcher,
  Jr.

  	
   

  
	
   

  	
   

  	
  Raymond H. Melcher, Jr.

  	
   

  
	
   

  	
   

  	
  Chairman, President and

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (SEAL)

  	
  Attest:

  	
   /s/ Laurie Heyer

  	
   

  
	
   

  	
   

  	
  Assistant Secretary

  	
   

  
	
  Witness:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Laurie Heyer

  	
   

  	
  /s/ Jenette L. Eck

  	
  (SEAL)

  
	
   

  	
   

  	
  Jenette L. Eck

  	
   

  

 

 

 

 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]