Document:

Exhibit
10.1

 

EMPLOYMENT
AGREEMENT

 

THIS AGREEMENT, made as of the 1st day of January 2005,
among LEESPORT FINANCIAL CORP. (“Company”), a Pennsylvania business corporation
having a place of business at 1240 Broadcasting Road, Wyomissing, Pennsylvania,
LEESPORT BANK (“Bank”), a national banking association having a place of
business at 1240 Broadcasting Road, Wyomissing, Pennsylvania, and
RAYMOND H. MELCHER, JR. (“Executive”), an adult individual.

 

WITNESSETH:

 

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

 

WHEREAS, Company, Bank and Executive have
been parties to an employment agreement dated June 15, 1998, as amended January 22,
2002, which is due to expire December 31, 2005;

 

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

 

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

 

AGREEMENT:

 

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

 

1.  Employment.  Company and Bank each hereby employ
Executive, and Executive hereby accepts employment with Company and Bank, on
the terms and conditions set forth in this Agreement.  By entering into this Agreement the parties
agree that Executive’s current employment agreement is null and void as of the
date first above set forth, being superceded in all respects by this Agreement.

 

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

 

1

 

3.  Term of Agreement.

 

(a)  This Agreement shall be for a three
(3) year period (the “Employment Period”) commencing on January 1, 2005
and ending on December 31, 2007; provided, however, that the Employment
Period shall be automatically extended on January 1, 2008 and on December 31
of each subsequent year (the “Annual Renewal Date”) for a period ending one (1)
year from each Annual Renewal Date unless either party shall give written
notice of nonrenewal to the other party at least thirty (30) days prior to an
Annual Renewal Date, in which event this Agreement shall terminate at the end
of the then existing Employment Period.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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(d)  Notwithstanding the provisions of Section 3(a)
of this Agreement, this Agreement shall terminate automatically upon Executive’s
disability and Executive’s rights under this Agreement shall cease as of the
date of such termination; provided, however, that, if Executive becomes
disabled after a Change in Control, as defined in Section 5(b) of this
Agreement, Executive shall nevertheless be absolutely entitled to receive all
of the compensation and benefits provided for in, and for the term set forth
in, Section 6 of this Agreement. 
For purposes of this Agreement, disability shall mean Executive’s
incapacitation by accident, sickness, or otherwise which renders Executive
mentally or physically incapable of performing the services required of
Executive for three hundred sixty (360) consecutive days.

 

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

 

4.  Employment Period
Compensation.

 

(a)  Salary.  For services performed by Executive under
this Agreement, Company and Bank shall pay Executive a salary, in the
aggregate, during the Employment Period, at the rate of $270,000 per year,
payable at the same times as salaries are payable to other executive employees
of Company or of Bank.  Company and/or
Bank may, from time to time, increase Executive’s salary, and any and all such
increases shall be deemed to constitute amendments to this Section 4(a) to
reflect the increased amounts, effective as of the date established for such
increases by the Board of Directors of Company or of Bank or any committee of
such Boards in the resolutions authorizing such increases.

 

(b)  Bonus. 
For services performed by Executive under this Agreement, Company and
Bank shall pay Executive a bonus, in the aggregate, during the Employment
Period, in such amounts and at such times, annually, as is provided in such
executive incentive plan for Executive as shall be approved by the Board of
Directors of Company and in effect from time to time.  In addition, Company and/or Bank may, from
time to time, pay such other bonus or bonuses to Executive as Company and/or
Bank, in their sole discretion, deem appropriate.  The payment of any such bonuses shall not
reduce or otherwise affect any other obligation of Company and/or Bank to
Executive provided for in this Agreement.

 

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

 

(d)  Automobile.  During the term of this Agreement, Company
and Bank shall provide Executive with exclusive use of an automobile.  Company and Bank shall be responsible and
shall pay for all costs of insurance coverage, repairs, maintenance and other
operating and incidental expenses, including license, fuel and oil.  Company and Bank shall provide Executive with
a replacement automobile at approximately the time Executive’s

 

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automobile reaches three (3)
years of age or 50,000 miles, whichever is first, and approximately every three
(3) years or 50,000 miles thereafter, upon the same terms and conditions.

 

(e)  Employee Benefit Plans.  During the term of this Agreement, Executive
shall be entitled to participate in and receive the benefits of any pension or
other retirement benefit plan, profit sharing, stock option, employee stock
ownership, or other plans, benefits and privileges given to employees and
executives of Company and Bank, to the extent commensurate with his then
existing duties and responsibilities, as fixed by the Boards of Directors of
Company and Bank, including without limitation enrollment in Bank’s
Supplemental Executive Retirement Program (SERP).  Company and Bank shall not make any changes
in such plans, benefits or privileges which would adversely affect Executive’s
rights or benefits thereunder, unless such change occurs pursuant to a program
applicable to all executive officers of Company and Bank and does not result in
a proportionately greater adverse change in the rights of or benefits to
Executive as compared with any other executive officer of Company and
Bank.  Nothing paid to Executive under
any plan or arrangement presently in effect or made available in the future
shall be deemed to be in lieu of the salary payable to Executive pursuant to Section 4(a)
hereof.

 

5. 
Termination of Employment Following Change in Control.

 

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

 

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

 

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

 

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

 

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

 

(a)  In the event that there is a Change in
Control and the Executive’s employment terminates voluntarily or involuntarily
other than for the reasons set forth in Section 3(b) or 3(d) of this
Agreement, Executive shall be absolutely entitled to receive the compensation
and benefits set forth below:

 

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(i) 
Company and Bank shall pay (or cause to be paid), in the aggregate, to
Executive in cash, within thirty (30) days following termination, an amount
equal to three (3.0) multiplied by the sum of (i) the highest annualized
base salary paid or payable to Executive at any time during the three (3) years
preceding such termination (including the year in which termination occurs) and
(ii) the highest annual bonus paid or payable with respect to any of the
three (3) years (including the year in which termination occurs) preceding such
termination; and

 

(ii) 
for a period of three (3) years following termination, the Executive
shall be entitled to continue participation in Company’s health and other
welfare benefit plans; provided, however, that, if the Executive is not
permitted to participate in any of such plans in accordance with the
administrative provisions of those plans and applicable federal and state law,
Company and Bank shall pay (or cause to be paid) to the Executive in cash an
amount equal to the after-tax cost to Executive to obtain substantially similar
benefits.

 

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

 

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

 

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

 

(a)  In the event that Executive’s employment is
involuntarily terminated by Company and/or Bank without Cause and no Change in
Control shall have occurred at the date of such termination, Company and Bank
shall pay (or cause to be paid), in the aggregate, to Executive in cash, within
thirty (30) days following termination, an amount equal to (i) Executive’s
monthly base salary in effect on the date of termination multiplied by the
number of months remaining in the Employment Period (but no less than eighteen
(18) months in any case) plus (ii) a portion of the projected bonus otherwise
payable to Executive for the year in which such termination occurs pro-rated
for the period of time Executive is employed during such year.

 

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

 

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(c)  The amounts payable pursuant to this Section 7
shall constitute Executive’s sole and exclusive remedy in the event of
involuntary termination of Executive’s employment by Company and/or Bank in the
absence of a Change in Control.

 

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

 

9.  Covenant Not to Compete
and Non-Solictation.

 

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

 

(i)  be
engaged, directly or indirectly, either for his own account or as agent,
consultant, employee, partner, officer, director, proprietor, investor (except
as an investor owning less than 5% of the stock of a publicly owned company) or
otherwise

 

6

 

of any person, firm, corporation, or enterprise engaged, in
(1) the banking (including bank holding company) or financial services
industry, or (2) any other activity in which Company or any of its
subsidiaries is engaged at the date of termination of the Executive’s
employment, in any county in which, at that date, a branch, office or other
facility of Company or any of its subsidiaries is located or in which is
located any such facility as to which Company or any of its subsidiaries is
party to a binding commitment, letter of intent, memorandum of understanding or
some other document that evidences its acquisition of such facility, or in any
county contiguous to such a county, including contiguous counties located
outside of the Commonwealth of Pennsylvania (the “Non-Competition Area”);

 

(ii) 
provide financial or other assistance to any person, firm, corporation,
or enterprise engaged in (1) the banking (including bank holding company)
or financial services industry, or (2) any other activity in which Company
or any of its subsidiaries is engaged at the date of termination of the
Executive’s employment, in the Non-Competition Area; provided, however, that
Executive shall not be prevented from operating, working for or otherwise being
affiliated with a person, firm, corporation, or enterprise that provides
consulting services to the banking or financial services industry, so long as
Executive does not himself, directly or indirectly, provide consulting services
to an entity in such industry within the Non-Competition Area;

 

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

 

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

 

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

 

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

 

(i)  if
Executive’s employment terminates in accordance with the provisions of Section 3
(other than Section 3(b) relating to termination for Cause) or upon
Company and Bank giving notice of non-renewal of this Agreement and Company or
Bank continuing to pay Executive’s salary and provide him with medical benefits
for a

 

7

 

period of eighteen (18) months, eighteen (18) months after the
effective date of termination of termination of employment;

 

(ii) 
if Executive’s employment terminates in accordance with the provisions
of Section 3(b) (relating to termination for Cause), Executive’s
employment is involuntarily terminated in accordance with Section 7 prior
to a Change in Control and the Executive actually receives the payments
described in Section 7, Executive voluntarily terminates his employment
other than after a Change in Control as defined in Section 5(b) hereof, or
upon Executive giving notice of non-renewal of this Agreement, eighteen (18)
months after the effective date of termination of employment; or

 

(iii) 
if Executive voluntarily terminates his employment after a Change in
Control as defined by Section 5(b) hereof or Executive’s employment is
involuntarily terminated after a Change in Control, the effective date of
termination of employment.

 

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

 

11.  Waiver.  No provision of this Agreement may be
modified, waived, or discharged unless such waiver, modification, or discharge
is agreed to in writing and signed by Executive and an executive officer
specifically designated by the Boards of Directors of Company and Bank.  No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.

 

12.  Assignment.  This Agreement shall not be assignable by any
party, except by Company and Bank to any successor in interest to their
respective businesses.

 

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

 

14.  Successors; Binding
Agreement.

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

	
   

  	
  LEESPORT FINANCIAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Karen A. Rightmire

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Jenette L. Eck

  	
   

  
	
   

  	
   

  	
  “Company”

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LEESPORT BANK

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Karen A.
  Rightmire

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Jenette L. Eck

  	
   

  
	
   

  	
   

  	
  “Bank”

  	
   

  
	
   

  	
   

  
	
  Witness:

  	
   

  	
   

  
	
   

  
	
  /s/ Stephen A. Murray

  	
   

  	
  /s/ Raymond H. Melcher, Jr.

  	
  (SEAL)

  	
   

  
	
   

  	
   

  	
  Raymond H.
  Melcher, Jr.

  	
   

  
	
   

  	
  “Executive”

  	
   

  
												

 

10EXHIBIT 10.10

 

SUPPLEMENTARY AGREEMENT No. 6

to the General Loan Agreement

(bank loan contract)

No. 2-0402-2 dated February 04,
2002

 

The present Supplementary Agreement No.6 (hereinafter – Supplementary Agreement) to the General
Loan Agreement (bank loan contract) No. 2-0402-2 dated February 04, 2002 (hereinafter
– Agreement) has been concluded in
Almaty on January 28, 2005 between:

 

 

Joint-Stock Company “Bank TuranAlem”, hereinafter referred to as
the «Creditor», in the person of Vice Chief
Executive Officer Mr. Saparov Arsen Kuandykovich acting on the basis of the
Power of Attorney No. 07/1 dated January 05, 2005,

 

 

Subsidiary Open Joint-Stock Company “Caspi Neft TME”, hereinafter referred to as the «Borrower», in the person of Chief Executive Officer Mr.
Anatole Kunevich, acting on the basis the Charter ,

 

TransMeridian Exploration Inc. (BVI), hereinafter referred to as the «Seller», in the person of President Mr. Lorrie Olivier
acting on the basis the Charter, and

 

Bramex Management Inc., hereinafter referred to as
the «Buyer», in the person of authorized
representative Mr. Sadykov Kairat Aryngaziyevich., acting on the basis of the
Power of Attorney dated October 18, 2004.

 

Hereinafter the Creditor, the Borrower, the Seller and the Buyer under the
present Supplementary Agreement jointly referred to as the «Parties», and separate as the «Party».

 

Taking into consideration Agreement dated January 28,
2005, the Parties have agreed to amend and modify the Agreement as
follows:

 

1. The Creditor grants
to the Borrower an extension for payment of all next payments under the
Agreement until July 15, 2005, including the principal amount of a debt
under the outstanding Credits allotted to the Borrower, subject to be paid
within the limits of the specified period of the extension, accrued Interest
for using the Credits (at the standard rate of 15% per annum), any other
payments which are subject to payment within the limits of the specified period
of the extension according to contracts and agreements which have been executed
between the Parties within the framework of the Agreement.

 

2. All payments of the
principal amount of a debt under the Credits and the Interest, which should
have been paid by the Borrower for the period of extension discussed in
paragraph 1 of herein, according to the terms of the Agreement shall be made by
the Borrower in full on July 15, 2005.

 

3.
The Creditor within the period of extension stipulated by paragraph 1 of this
Supplementary Agreement, accrues the Interest for the total amount of the
principal debt under the Agreement, basing on the actual debt amount. At that,
the Borrower undertakes to make payments on the Interests accrued according to
the provisions of this sub-paragraph, in full measure.

 

4. To add sub-item
8.1.9. to the Item 8.1. of the article 8 of the Agreement as follows:

«8.1.9.              Failure to fulfill by the
Seller of its obligations determined in items 2.1.1-2.1.3., item.2.1. and/or
item 2.2. of the Agreement dated January 28, 2005.»

 

5. All other
conditions of the Agreement unaffected by the present Supplementary Agreement
shall remain 

 

1

 

unchanged.

 

6. This Agreement
shall become effective immediately upon it’s signing by the authorized
representatives of the Parties and shall remain in effect till the date of
complete performance of obligations by the Parties.

 

7. This Supplementary
Agreement is an integral part of the Agreement.

 

8. This Agreement has
been executed in 5 (five) original exemplars having equal legal force, two exemplars
are for the Creditor and one for the Borrower, Seller and Buyer.

 

The present
Supplementary Agreement has been signed by the authorized hereto:

 

	
   

  	
   

  	
  On behalf
  of the CREDITOR

  	
   

  	
   

  
	
   

  	
   

  	
  Vice Chief Executive
  Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ : Saparov A.K.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  stamp
  here

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  On behalf
  of the BORROWER

  	
   

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/: Kunevich A.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  stamp
  here

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  On behalf
  of the SELLER

  	
   

  	
   

  
	
   

  	
   

  	
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/: L. Olivier

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  stamp
  here

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  On behalf
  of the BUYER

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized representative

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/:Sadykov K.A.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  stamp
  here

  	
   

  	
   

  
												

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]