Document:

Exhibit 10.26

 

COWEN GROUP, INC.

 

2008 DEFERRED CASH AWARD AGREEMENT

 

THIS AGREEMENT (the “Agreement”)
is made by and between Cowen Group, Inc.,
a Delaware corporation (the “Company”) and 
[  ] (the “Executive”), as of February 2,
2009.

 

RECITALS

 

WHEREAS, the Company has adopted the Cowen Group, Inc. 2006 Equity
and Incentive Plan (the “2006 Plan”) and the shareholders of the Company, upon
recommendation of the Board of Directors, have approved the Cowen Group, Inc.
2007 Equity and Incentive Plan (the “2007 Plan”, together with the 2006 Plan,
collectively referred to herein as the “Plan”) pursuant to which the Executive
has been granted an award (the “Award”); and

 

WHEREAS, the Award shall consist of a grant of deferred cash in
accordance with and subject to the conditions set forth in this Agreement and
the Plan; and

 

WHEREAS, the Executive has accepted the grant of the Award and hereby
agrees to the terms and conditions hereinafter stated; and

 

WHEREAS, the capitalized terms used herein but not defined in Section 2.1
or elsewhere in this Agreement shall have the respective meanings given to them
in the Plan;

 

NOW THEREFORE, in consideration of the foregoing recitals and of the
promises and conditions contained herein, it is agreed as follows:

 

ARTICLE I

GRANT OF DEFERRED CASH

 

Section 1.1 — Grant of Deferred Cash.

 

The Company has granted as of the date hereof (the “Grant Date”) the
right to receive [  ] Dollars ($[  ]  in
deferred cash, less applicable tax and payroll deductions and subject to the
conditions and restrictions set forth below (the “Deferred Cash”).  The Company expressly reserves the right to
settle the Award in the form of cash or in Cowen Group, Inc. stock, at its
sole election.  In the event the Company
elects to settle the Award in the form of Cowen Group, Inc. stock, such
stock shall be valued as of the Vesting Dates, as defined in Section 1.2
herein.

 

 

Section 1.2 — Vesting Period.

 

Subject to (i) accelerated vesting upon a Change in Control as defined
in Section 7 of the Plan and as determined by the Compensation Committee
of the Company, (ii) the forfeiture and other provisions set forth in Section 1.3
or any other provisions regarding accelerated vesting set forth in the Plan and
as determined by the Compensation Committee of the Company, where applicable, the
Executive shall receive (x) Thirty Three Percent (33%) of the Deferred
Cash subject to this Agreement on May 15, 2010; (y) Thirty Three Percent
(33%) of the Deferred Cash subject to this Agreement on May 15, 2011; and (z) the
remaining Thirty Four Percent (34%) of the Deferred Cash subject to this
Agreement on May 15, 2012 (collectively, the “Vesting Date(s)”, and that
period from Grant Date through the final Vesting Date, the “Restricted Period”).

 

Section 1.3 — Cessation of Employment.

 

(a)                                  Continued
Vesting in the Event of Termination without Cause.  If the Executive’s employment or service with
the Company and its Subsidiaries and Affiliates is terminated other than as a
result of Resignation, death, Disability or Retirement, or for Cause, then any
unvested Deferred Cash shall continue to vest in accordance with, and be
payable according to, the schedule set forth in Section 1.2 above.

 

(b)                                 Continued
Vesting in the event of Retirement. 
In the event that the Executive’s employment or service with the Company
and its Subsidiaries and Affiliates is terminated as a result of the Executive’s
Retirement, then the Deferred Cash shall continue to vest in accordance with, and
be payable according to, the schedule set forth in Section 1.2 above,
provided, however, that if prior to the fourth anniversary of the Grant Date,
the Executive (X) violates any provision of this Agreement or (Y) directly
or indirectly, in one or a series of transactions, owns, manages, operates,
controls, invests or acquires an interest in, whether as a proprietor, partner,
stockholder, member, lender, director, officer, employee, joint venturer,
investor, lessor, supplier, customer, agent, representative or other
participant, or otherwise engages or participates in, whether as a proprietor,
partner, stockholder, member, lender, director, officer, employee, joint
venturer, investor, lessor, supplier, customer, agent, representative or other
participant, any business which competes, directly or indirectly, with any businesses
of the Company or any Subsidiary or any Affiliate of the Company (as determined
by the Company) (“Competitive Business”), then the Executive shall forfeit any unvested
or unpaid Deferred Cash and shall repay to the Company any Deferred Cash that the
Executive received after Retirement under this Agreement. Notwithstanding the
foregoing, ownership by the Executive as a passive investor of less than one
percent (1%) of the stock of a corporation that is traded on an established
exchange shall not constitute a violation of clause (Y) above.

 

(c)                                  Acceleration.  If the Executive’s employment or service with
the Company or any Subsidiaries or any Affiliates of the Company is terminated
as a result of death or Disability, the unvested Deferred Cash shall immediately
vest in full as of the 

 

 

Termination
Date, and become payable within thirty (30) days after the Termination Date.

 

(d)                                 Forfeiture.  If the Executive’s employment or service with
the Company or any Subsidiaries or any Affiliates of the Company is terminated
due to the Executive’s Resignation or by the Company for Cause, then any
unvested or unpaid Deferred Cash shall immediately be forfeited to the Company
as of the Termination Date and neither the Executive nor any of the Executive’s
successors, heirs, assigns, or personal representatives shall thereafter have
any further rights or interests in such Deferred Cash.  In addition, in the event of a Termination
for Cause, the Executive shall pay to the Company an amount equal to the
Deferred Cash previously paid to the Executive under this Agreement.  In the event of Termination without Cause, where
the Executive is permitted to receive payments of the Deferred Cash pursuant to
Section 1.3(a), if the Company reasonably determines that the Executive has
violated any of the provisions of paragraphs (b), (c), (d), (e), (f) or (g) of
Section 2.2 herein, then any unvested or unpaid Deferred Cash shall
immediately be forfeited to the Company as of the Termination Date and neither
the Executive nor any of the Executive’s successors, heirs, assigns, or
personal representatives shall thereafter have any further rights or interests
in such Deferred Cash.

 

Section 1.4 — Change in Control.

 

In the event of a Change in Control as defined in Section 7
of the Plan and as determined by the Compensation Committee of the Company, any
unvested Deferred Cash shall immediately vest in full as of the date of the
Change in Control and be payable according to the schedule set forth in Section 1.2
above.  However, in the event of a
termination by the Company for Cause subsequent to a Change in Control, any unpaid
Deferred Cash shall immediately be forfeited to the Company as of the
Termination Date and neither the Executive nor any of the Executive’s
successors, heirs, assigns, or personal representatives shall thereafter have
any further rights or interests in such Deferred Cash.  In addition, in the event of a Termination
for Cause subsequent to a Change in Control, the Executive shall pay to the
Company an amount equal to the Deferred Cash previously paid to the Executive
under this Agreement.

 

Section 1.5 — Taxes.

 

Any payments of Deferred Cash will be reduced by all
applicable federal, state, or local tax withholdings and any other required
withholdings.

 

ARTICLE II

MISCELLANEOUS

 

Section 2.1 — Definitions.

 

(a)                                  “Cause” shall have the meaning set forth in the Executive’s
employment or other agreement with the Company or any Subsidiary or any
Affiliate of the Company, 

 

 

provided that if the Executive is not a party to any such
employment or other agreement or such employment or other agreement does not
contain a definition of Cause, then Cause shall mean, when the Company, in good faith and its sole discretion, determines that
any of the following occurs: (x) a breach by the Executive of any
provisions of the Plan or this Agreement, including, but not limited to, any of
the restrictive covenants set forth in paragraphs (a), (b), (c), (d), (e), (f) or
(g) under Section 2.2 of this Agreement, or (y) (i) the Executive has been convicted of any
crime (whether or not related to his or her duties at the Company or any
Subsidiary or Affiliate of the Company); (ii) fraud, dishonesty, gross
negligence or substantial misconduct in the Executive’s performance of his or
her duties and responsibilities; (iii) the Executive’s violation of, or
failure to comply with, the internal policies of the Company or any
Subsidiary or any Affiliate of the Company
or the rules and regulations of any regulatory or self-regulatory
organization with jurisdiction over the Company or any Subsidiary or any
Affiliate of the Company; or (iv) the
Executive’s failure to perform the material duties of his or her position,
including, by way of example and not of limitation, the failure or refusal to
follow instructions reasonably given by the Executive’s superiors in the course
of employment.

 

(b)                                 “Disability” means that the Executive (i) is unable to
engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, or (ii) is, by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected
to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than 3 months under an accident
and health plan covering employees of the Company or any Subsidiary or any
Affiliate of the Company.

 

(c)                                  “Resign” or “Resignation” shall mean any voluntary
termination of employment by the Executive and shall, for vesting purposes,
commence on the earlier of (i) the commencement of the Notice Period, or (ii) the
Termination Date.

 

(d)                                 “Retirement” or “Retire” shall mean any retirement in
accordance with the applicable policies of the Company, if any, as amended from
time to time, and after the retiree having attained the age of fifty-five (55) and
completed five (5) years of continuous service with the Company; provided,
that such retiree shall certify in writing to the Company that the Executive
will permanently retire as of the Termination Date and will not thereafter be
employed by or otherwise engage in any Competitive Business.

 

(e)                                  “Termination Date” shall mean the date of termination of
employment or service, whether by death, Disability or otherwise.

 

Section 2.2 — Notice of
Termination and Restrictive Covenants.

 

(a)                                  Notice of Termination. 
The Executive shall not voluntarily Retire, Resign or otherwise terminate his
or her employment relationship with the Company or any of the Company’s
Subsidiaries or Affiliates, for any reason or no reason, without first giving 

 

 

the Company at least one hundred eighty (180) days’ prior
written notice of the effective date of such Retirement, Resignation or other
termination (the “Notice Period”).   Such written notice shall be sent in
accordance with Section 2.5 of this Agreement.  The Company retains
the right to waive the notice requirement in whole or in part or to place the
Executive on paid leave for all or part of this Notice Period.  In the
alternative, at any time after the Executive gives notice, the Company may, but
shall not be obligated to, provide the Executive with work and (i) require
the Executive to comply with such conditions as it may specify in relation to
transitioning the Executive’s duties and responsibilities; (ii) assign the
Executive other duties; or (iii) withdraw any powers vested in, or duties
assigned to the Executive.  Any vesting or payment of Deferred Cash awarded
pursuant to this Agreement shall cease at the commencement of the Notice
Period.

 

(b)                                 Non-Solicitation.   The Executive agrees that during the
Executive’s employment, or if the Executive voluntarily terminates employment
or if the Executive’s employment is terminated, for any reason or no reason,
the Executive shall not, during the Executive’s employment, Notice Period and
for a period of one hundred eighty (180) days following the expiration of the
Notice Period, without the Company’s prior written consent, directly or
indirectly: (i) solicit or induce, or cause others to solicit or induce,
any director, officer or employee of the Company or any Subsidiary or any
Affiliate of the Company, to leave the Company, such Subsidiary or Affiliate or
in any way modify their relationship with the Company, such Subsidiary or
Affiliate; (ii) hire or cause others to hire any director, officer or
employee of the Company or any Subsidiary or any Affiliate of the Company; (iii) encourage
or assist in the hiring process of any director, officer or employee of the
Company or any Subsidiary or any Affiliate of the Company, or in the
modification of any such person’s relationship with the Company, such
Subsidiary or Affiliate, or cause others to participate, encourage or assist in
the hiring process of any director, officer or employee of the Company or any
Subsidiary or any Affiliate of the Company; (iv) interfere in any way with
the rendering of professional services to the Company or any Subsidiary or any
Affiliate of the Company by any client, prospective client, consultant,
independent contractor or vendor, or their respective individual employees; or (v) solicit
the trade or patronage of any client or customer or any prospective client or
customer of the Company or any Subsidiary or any Affiliate of the Company for
purposes of engaging in any business relationship with respect to any products,
services, trade secrets or other matters in which the Company or such
Subsidiary or such Affiliate of the Company is active.

 

(c)                                  Non-Disclosure of Confidential Information.  The Executive shall
not at any time, whether during the Executive’s employment or following the
termination of employment, for any reason whatsoever, directly or indirectly,
disclose or furnish to any entity, firm, corporation or person, except as
otherwise required by applicable law, any confidential or proprietary
information of the Company or any Subsidiary or any Affiliate of the Company; provided,
however, that in the event disclosure is required by applicable law, the
Executive shall provide the Company or any Subsidiary or any Affiliate of the
Company, as applicable, with prompt notice of such requirement prior to making
any disclosure, so that the Company, such Subsidiary or Affiliate of the
Company, as applicable, may seek an appropriate protective order.  “Confidential or propriety 

 

 

information” shall mean information generally unknown to the
public to which the Executive gains access by reason of the Executive’s relationship
with the Company or any Subsidiary or any Affiliate of the Company, and
includes, but is not limited to, information relating to all present or
potential customers, business and marketing plans, sales, trading and financial
data and strategies, salaries and employment benefits, and operational costs.

 

(d)                                 Non-Disparagement.  The Executive shall not at any time, whether
during the Executive’s employment or following the termination of employment,
for any reason whatsoever, and shall not cause or induce others to, defame or
disparage the Company or any Subsidiary or any Affiliate of the Company, or the
directors or officers of the Company or any Subsidiary or any Affiliate of the
Company.

 

(e)                                  Company Property.  All records, files, memoranda, reports, customer
information, client lists, documents and equipment relating to the business of
the Company or any Subsidiary or any Affiliate of the Company which the
Executive prepares, possesses or comes into contact with while the Executive is
an employee of the Company or any Subsidiary or any Affiliate of the Company,
shall remain the sole property of the Company, such Subsidiary or
Affiliate.  The Executive agrees that
upon the Executive’s termination of employment, for any reason or no reason,
the Executive shall provide to the Company or any Subsidiary or any Affiliate
of the Company, as applicable, all documents, papers, files or other material
in the Executive’s possession and under the Executive’s control that are
connected with or derived from the Executive’s services to the Company or any
Subsidiary or any Affiliate of the Company. 
The Executive agrees that the Company or the applicable Subsidiary or
Affiliate of the Company, owns all work product, patents, copyrights and other
material produced by the Executive during the Executive’s employment with the
Company or any Subsidiary or any Affiliate of the Company.

 

(f)                                    Compliance with Company Policies.  The Executive agrees
to fully comply with the applicable internal policies of the Company or any
Subsidiary or any Affiliate of the Company, as such policies may be amended
from time to time, at any time, during the Executive’s employment by Company or
any Subsidiary or any Affiliate of the Company.

 

(g)                                 Cooperation.  The Executive agrees to cooperate fully with
the Company or any Subsidiary or any Affiliate of the Company at any time,
whether during the Executive’s employment or following the termination of
employment, taking into account the requirements of any subsequent employment
by the Executive, on all matters relating to the Executive’s employment, which
cooperation shall be provided without additional consideration or compensation
and shall include, without limitation, being available to serve as a witness
and be interviewed and making available any books, records or other documents
within the Executive’s control, provided, however, that the Executive need not
take any action hereunder that would constitute a violation of law or an
obligation to any third party or cause a waiver of attorney-client privilege.  Without limiting the generality of the
foregoing, the Executive shall cooperate in connection with any (i) past,
present or future suit, countersuit, action, arbitration, mediation,
alternative 

 

 

dispute resolution process, claim, counterclaim, demand,
proceeding; (ii) inquiry, proceeding or investigation by or before any
governmental authority; or (iii) arbitration or mediation tribunal, in
each case involving the Company or any Subsidiary or any Affiliate of the
Company.  In connection with the
Executive’s providing such cooperation, the Company or any Subsidiary or any
Affiliate of the Company, as applicable, shall reimburse the Executive for
reasonable travel, lodging and other expenses incurred by the Executive, upon
submission of documentation reasonably acceptable to the Company or any
Subsidiary or any Affiliate of the Company, as applicable.

 

(h)                                 Injunctive Relief.  In the event of a breach by the Executive of
the Executive’s obligations under this Agreement, the Company, in addition to being
entitled to exercise all rights granted by law, including recovery of damages,
will be entitled to specific performance of its rights under this
Agreement.  The Executive acknowledges
that the Company shall suffer irreparable harm in the event of a breach or
prospective breach of paragraphs (a), (b), (c), (d), (e), (f) or (g) of
this Section 2.2 and that monetary damages would not be adequate
relief.  Accordingly, the Company shall
be entitled to seek injunctive relief in any federal or state court of competent
jurisdiction located in New York County, or in any state in which the Executive
resides.  The Executive further agrees
that the Company or any Subsidiary or any Affiliate of the Company shall be
entitled to recover all costs and expenses (including attorneys’ fees) incurred
in connection with the enforcement of the Company’s rights hereunder.

 

Section 2.3 — Offset.

 

In the event that the Executive
voluntarily terminates employment or if the Executive’s employment is
terminated, for any reason or no reason, the Company may offset, to the fullest
extent permitted by law, any amounts of money, Deferred Cash or shares of Stock
due to the Company from the Executive, or advanced or loaned to the Executive
by the Company, from any monies, Deferred Cash or shares of Stock owed to the
Executive or the Executive’s estate by the Company as a result of such
termination of employment.

 

Section 2.4 — Governing Law.

 

This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
other than its laws regarding conflicts of law (to the extent that the
application of the laws of another jurisdiction would be required
thereby).  The Committee shall have final
authority to interpret and construe this Agreement and to make any and all
determinations under them, and its decision shall be binding and conclusive
upon the Executive and the Executive’s legal representative in respect of any
questions arising under this Agreement.

 

Section 2.5 — Notices.

 

Any notice to be given under
the terms of this Agreement shall be in writing and addressed to the Company at
1221 Avenue of the Americas, New York, NY 

 

 

10020, Attention: Head of
Human Resources, and to the Executive at the Executive’s home address as of the
date of this Agreement or at such other address as either party may hereafter
designate in writing to the other by like notice.

 

Section 2.6 — Effect of Agreement.

 

Except as otherwise provided
hereunder, this Agreement shall be binding upon and shall inure to the benefit
of any successor or successors of the Company.

 

Section 2.7 — Amendment.

 

This Agreement may not be
amended or modified in any manner (including by waiver) except by an instrument
in writing signed by both parties hereto. 
The waiver by either party of compliance with any provision of this
Agreement shall not operate or be construed as a waiver of any other provision
of this Agreement or of any subsequent breach of such party of a provision of
this Agreement.

 

Section 2.8 — No Right to Continued Employment.

 

Nothing in this Agreement shall be
deemed to confer on the Executive any right to continued employment with the
Company or any Subsidiary or any Affiliate of the Company.

 

Section 2.9 — Section 409A.

 

This
Agreement is intended to comply with the requirements of Section 409A and
shall be interpreted accordingly.  In the
event that any provision of this Agreement would cause this Agreement to become
subject to Section 409A or cause this Agreement to fail to comply with Section 409A,
such provision may be deemed null and void and the Company and the Executive
agree to amend or restructure this Agreement, to the extent necessary and
appropriate to avoid adverse tax consequences under Section 409A.  To the extent (i) any payments to which
the Executive becomes entitled under this agreement, or any agreement or plan
referenced herein, in connection with the Executive’s separation of service
from the Company constitute deferred compensation subject to Section 409A
and (ii) Executive is deemed by the Company at the time of such separation
of service to be a “specified” employee under Section 409A, as determined
by the Company, by which determination the Executive agrees that he is bound,
then such payment or payments shall not be made or commenced until the earliest
of (i) the expiration of the six (6)-month period measured from the date
of the Executive’s “separation from service” (as such term is defined below); (ii) the
date the Executive becomes “disabled” (as defined in Section 409A of the
Code); or (iii) the date of the Executive’s death following such
separation from service; provided, however, that such deferral shall only be
effected to the extent required to avoid adverse tax treatment to the
Executive, including (without limitation) the additional twenty percent (20%)
tax for which the Executive would otherwise be liable under Section 409A(a)(1)(B) of
the Code in the absence of such deferral. 
Upon the expiration of the applicable deferral period, any payments
which would have otherwise been made during that period (whether in a single
sum or in installments) in the absence of this paragraph shall be paid to the
Executive or 

 

 

the Executive’s
beneficiary in one lump sum. With respect to any determination that the
benefits provided for in this Agreement are subject to Section 409A, then
each payment is a separate payment and, to the extent any payment under this
Agreement may be classified as a “short-term deferral” within the meaning of Section 409A,
such payment shall be deemed a short-term deferral, even if it may also qualify
for an exemption from Section 409A under another provision of Section 409A.
For purposes of this Agreement, separation or termination of the Executive’s
employment with, or Resignation from, the Company or any Subsidiary or any
Affiliate of the Company shall mean “separation from service” within the
meaning of Section 409A of the Code and Section 1.409A-1(h) of
the regulations issued under the Code or any successor regulations.  In any event, the Company makes no
representations or warranties and shall have no liability to the Executive or
any other person if any provisions of or payments under this Agreement are
determined to constitute deferred compensation subject to Code Section 409A
but not to satisfy the conditions of that section.

 

Section 2.10 — Entire Agreement.

 

The
Plan is incorporated herein by reference. 
The Plan and this Agreement constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings, agreements, correspondence and term sheets of
or between the Company and the Executive with respect to the subject matter
hereof.  If there is a conflict between
the terms and conditions of the Plan and the terms and conditions of this Award
Agreement, the terms and conditions of the Plan shall govern.

 

Section 2.11 — Arbitration.

 

(a)                                  Any and all disputes arising out of or relating to this
Agreement or to the Executive’s employment with the Company or any Subsidiary
or any Affiliate of the Company, including any statutory claims based on
alleged discrimination, shall be submitted to, and resolved exclusively by, the
American Arbitration Association (“AAA”) pursuant to the AAA’s Employment
Arbitration Rules and Mediation Procedures.  The arbitration shall be held in the City of
New York.  In agreeing to arbitrate these
disputes, the Executive recognizes that the Executive is waiving the Executive’s
right to a trial in court and by a jury. 
The arbitration award shall be final and binding upon both parties, and
judgment upon the award may be entered in a court of competent jurisdiction.

 

(b)                                 The arbitrators shall not have authority to amend, alter,
modify, add to or subtract from the provisions hereof.  The award of the arbitrators, in addition to
granting the relief prescribed above and such other relief as the arbitrators
may deem proper, may contain provisions commanding or restraining acts or
conduct of the parties or their representatives and may further provide for the
arbitrators to retain jurisdiction over this Agreement and the enforcement
thereof.  If either party shall
deliberately default in appearing before the arbitrators, the arbitrators are
empowered, nonetheless, to take the proof of the party appearing and render an
award thereon.

 

 

(c)                                  This Section 2.11 shall not be construed to limit the
Company’s right to obtain relief under Section 2.2(h) (relating to
equitable remedies) with respect to any matter or controversy subject to Section 2.2(h),
and, pending a final determination by the arbitrators with respect to any such
matter or controversy, the Company shall be entitled to obtain any such relief
by direct application to state, federal or other applicable court, without
being required to first arbitrate such matter or controversy.

 

 

IN WITNESS
WHEREOF, the Company has caused this Agreement to be executed on its behalf by
a duly authorized officer, and the Executive has hereunto set the Executive’s
hand on the date indicated below.

 

	
   

  	
  COWEN GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
   

  
	
   

  	
   

  	
  CHRISTOPHER A. WHITE

  
	
   

  	
   

  	
  VICE PRESIDENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   Date:Exhibit 10.11

 

AMENDED AND
RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED AND
RESTATED AGREEMENT is made as of the 2nd day of July 2007, among LEESPORT
FINANCIAL CORP. (“Company”), a Pennsylvania business corporation having a place
of business at 1240 Broadcasting Road, Wyomissing, Pennsylvania 19610,
ESSICK & BARR, LLC (“E&B”), a Pennsylvania limited liability
company having a place of business at 108 South Fifth Street, Reading,
Pennsylvania 19612, and MICHAEL HERR (“Employee”), an individual residing at
3304 Pequot Drive, Sinking Spring, Pennsylvania 19608.

 

WITNESSETH:

 

WHEREAS, E&B
is a licensed insurance broker and a wholly-owned subsidiary of Company;

 

WHEREAS, E&B has employed Employee in the capacity of Senior Vice
President of the Commercial Property & Casualty Division of
E&B pursuant to an
employment agreement, dated September 1, 2004 (the “Original Agreement”);

 

WHEREAS, Company and E&B are undertaking a reorganization of Leesport’s
insurance operations, commencing July 1, 2007, which reorganization will
result in, among other things, a consolidation of the operations and names of
E&B’s existing insurance divisions or groups; and

 

WHEREAS, in connection with the reorganization of the insurance operations,
Company, E&B, and Employee mutually desire to amend and restate the
Original Agreement on the terms and conditions set forth herein.

 

AGREEMENT:

 

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

 

1.  Employment.  E&B hereby employs Employee and Employee
hereby accepts employment with E&B, on the terms and conditions set forth
in this Agreement.  Leesport agrees that,
throughout the Employment Period, Employee, if he so desires, shall be entitled
to serve on the Board of Directors of E&B.

 

2.  Duties of
Employee.  Employee shall perform and
discharge well and faithfully such duties as an officer of E&B as may be
assigned to Employee from time to time by the Board of Directors of
E&B.  Employee shall be employed as a
Senior Vice President of E&B, and effective July 2, 2007, the Chief
Insurance Operating Officer of E&B, and shall hold such other titles as may
be given to him from time to time by the Board of Directors of E&B.  Employee shall devote his full time,
attention and energies to the business of E&B during the Employment Period
(as defined in Section 3 of this Agreement); provided, however, that this
Section 2 shall not be construed as preventing Employee from (a) investing
Employee’s personal

 

1

 

assets in enterprises
that do not compete with Company or E&B (or any of their affiliates); or (b) being
involved in any other activity with the prior approval of the President or
Board of Directors of E&B.

 

3.  Term of Agreement.

 

(a)          This
Agreement shall be for a period (the “Employment Period”) commencing on July 2,
2007 and ending on December 31, 2010; provided, however, that the
Employment Period shall be automatically extended on January 1, 2011 and
on January 1 of each subsequent year (each an “Annual Renewal Date”) for a
period ending three (3) years from each Annual Renewal Date unless
Company, E&B or Employee shall give written notice of nonrenewal to the
other party at least ninety (90) days prior to an Annual Renewal Date, in
which event this Agreement shall terminate at the end of the then existing
Employment Period.

 

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

 

(i)                       Employee’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
Employee for a period of at least thirty (30) days; or

 

(ii)                    Employee’s
failure to follow the good faith lawful instructions of the Board of Directors
of E&B with respect to its operations following written notice of such
instructions; or

 

(iii)                 Employee’s failure to perform Employee’s
duties to E&B (other than a failure resulting from Employee’s incapacity
because of physical or mental illness, as provided in subsection (d) of
this Section 3), after notice from E&B or Company and a failure to
cure such violation within ten (10) days of said notice, unless it is
apparent under the circumstances that Employee is unable to cure such
violation, which failure results in injury to Company or E&B, monetarily or
otherwise; or

 

(iv)                Employee’s
intentional violation of the provisions of this Agreement; or

 

(v)                   dishonesty
or gross negligence of the Employee in the performance of his duties; or

 

(vi)                conduct
on the part of the Employee which brings public discredit to Company or
E&B; or

 

2

 

(vii)             Employee’s breach of fiduciary duty
involving personal profit; or

 

(viii)          Employee’s
loss or non-renewal of an insurance license; or

 

(ix)                  Employee’s
removal or prohibition from being an institutional-affiliated party by a final
order of an appropriate federal banking agency pursuant to the Federal Deposit
Insurance Act or by the Pennsylvania Department of Banking Commission pursuant
to state law.

 

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

 

(c)          Notwithstanding
the provisions of Section 3(a) of this Agreement, this Agreement
shall terminate automatically upon Employee’s voluntary termination of
employment (other than in accordance with Section 5 of this Agreement),
retirement at Employee’s election, or Employee’s death, and Employee’s rights
under this Agreement shall cease as of the date of such voluntary termination,
retirement at Employee’s election, or death; provided, however, that if Employee
dies after Employee delivers a Notice of Termination (as defined in Section 5(a) of
this Agreement), Employee’s estate shall be absolutely entitled to receive all
of the compensation provided for in, and for the term set forth in Section 6
of this Agreement and the provisions of Section 14(b) of this
Agreement shall apply.

 

(d)         Notwithstanding
the provisions of Section 3(a) of this Agreement, this Agreement
shall terminate automatically upon Employee’s disability and Employee’s rights
under this Agreement shall cease as of the date of such termination; provided,
however, that if Employee becomes disabled after Employee delivers a Notice of
Termination (as defined in Section 5(a) of this Agreement), Employee
shall nevertheless be absolutely entitled to receive all of the compensation
provided for in, and for the term set forth in, Section 6 of this
Agreement.  For purposes of this
Agreement, “disability” shall mean Employee’s incapacitation by accident,
sickness or otherwise which renders Employee mentally or physically incapable
of performing the services required of Employee for the entire period of six (6) consecutive
months.

 

(e)          Employee
agrees that in the event his employment under this Agreement is terminated,
Employee shall resign as a director of E&B and any of its affiliates or
subsidiaries, if he is then serving as a director of any of such entities.

 

3

 

4.  Employment Period
Compensation.

 

(a)          Annual
Base Salary.  For services performed
by Employee under this Agreement, E&B shall pay Employee an annual base
salary (“Annual Base Salary”) in the aggregate during the Employment Period at
the rate of Two Hundred Fifty Thousand Dollars ($250,000) per year, payable at
the same times as salaries are payable to other officer employees of E&B. E&B may, from time to time, increase
Employee’s Annual Base Compensation payable under this Section 4(a), 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 E&B Board or any committee of the E&B Board in the
resolutions authorizing such increase.

 

(b)         Semi-Annual
Bonus.  For any consecutive six-month
period, commencing with the six-month period beginning on July 1, 2007 and
ending on December 31, 2007, in which Employee is serving as Chief
Insurance Operating Officer of E&B and in which the actual EBITA of E&B
(as defined and determined in accordance with E&B’s customary practices) is
at least 90% of the pre-determined budgeted amount for the applicable six-month
period, Employee shall be entitled to receive a cash bonus expressed as a
percentage of actual EBITA for such six-month period.  For total actual EBITA equal to 90% or more, but
less than 99%, of the pre-determined amount budgeted for the applicable
six-month period, Employee shall receive a cash bonus of 1% of actual EBITA for
such six-month period, and for total actual EBITA equal to 100% or more of the
pre-determined amount budgeted for the applicable six-month period, Employee
shall receive a cash bonus equal to the sum of (i) 1% of the actual amount
of EBITA budgeted for such six-month period plus (ii) 10% of the amount by
which actual EBITA for such six-month period exceeds the amount budgeted for
such six-month period.  Any bonus payable
under this Section 4(b) shall be paid within 60 days of the end of
the applicable six-month period.  An
example of the manner of calculation of the quarterly bonus in accordance with
this Section 4(b) is attached as Exhibit A hereto.

 

(c)          Corporate
Bonus and Referral Programs.  In
addition to the other compensation and benefits payable in accordance with this
Section 4, Employee shall be eligible to participate in accordance with
their terms and any commercial referral plan in effect from time to time for
employees of Leesport and its affiliates and in any corporate bonus plan or
program maintained from time to time for employees of Leesport and its
affiliates.

 

(d)         Vacations.  During the term of this Agreement, Employee
shall be entitled to four (4) weeks paid annual vacation in addition to
personal and short-

 

4

 

term absence in accordance with the policies
established for E&B employees.  Employee
shall not, however, be entitled to receive any additional compensation from
E&B for failure to take a vacation, nor shall Employee be able to
accumulate unused vacation time from one year to the next, except to the extent
authorized in writing by the Board of Directors of E&B.

 

(e)          Automobile.  During the term of this Agreement, Employee
shall be entitled to receive a monthly car allowance of Five Hundred Dollars
($500.00) towards all expenses, including lease and insurance payments, fuel
and other operating expenses, of an automobile for use in connection with
Employee’s duties under this Agreement.

 

(f)            Employee
Benefit Plans.  During the term of
this Agreement, Employee shall be entitled to participate in and receive the
benefits of any employee benefit plan available from time to time to employees
of E&B; provided, however, that nothing contained herein shall be construed
as prohibiting Company, E&B or any other subsidiary of Company from
eliminating or limiting a plan or benefit provided that such elimination or
limitation is applicable to employees generally.  Nothing paid to Employee 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 Employee pursuant to Section 4(a) of
this Agreement.

 

(g)         Stock
Options.  Employee shall be eligible
to participate in Company’s stock option plans and programs in effect from time
to time and will be eligible for consideration for grants under such plans on
the same basis as other officers of Company and its subsidiaries.

 

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 during the term of this Agreement
there shall be:

 

(i)                       any
involuntary termination of Employee’s employment (other than for the reasons
set forth in Section 3(b) or 3(d) of this Agreement);

 

(ii)                    any
reduction in Employee’s responsibilities, including reporting responsibilities,
or authority, including such title, responsibilities or authority as such
title, responsibilities or authority may be increased from time to time during
the term of this Agreement;

 

(iii)                 the assignment to Employee of duties
inconsistent with Employee’s office on the date of the Change in Control or as
the same may be increased from time to time after the Change in Control;

 

5

 

(iv)                any
reassignment of Employee to a location greater than fifty (50) miles from the
location of Employee’s office on the date of the Change in Control;

 

(v)                   any
reduction in Employee’s Annual Base Salary in effect on the date of the Change
in Control or as the same may be increased from time to time after the Change
in Control;

 

(vi)                any
failure to continue Employee’s participation in any of E&B’s commission
compensation or bonus plans in which Employee participated at the time of the
Change in Control or any change or amendment to any provisions of any of such
plans which would materially decrease the potential benefits to Employee under
any of such plans;

 

(vii)             any failure to provide Employee with
benefits at least as favorable as those enjoyed by Employee under any
retirement or pension, life insurance, medical, health and accident, disability
or other employee plans in which Employee participated at the time of the
Change in Control, or the taking of any action that would materially reduce any
of such benefits in effect at the time of the Change in Control;

 

(viii)          any requirement that Employee travel in
performance of his duties on behalf of E&B for a significantly greater
period of time during any year than was required of Employee during the year
preceding the year in which the Change in Control occurred; or

 

(ix)                  any
sustained pattern of interruption or disruption of Employee for matters
substantially unrelated to Employee’s discharge of Employee’s duties on behalf
of E&B;

 

then, at the
option of Employee, exercisable by Employee within ninety (90) days of the
occurrence of any of the foregoing events, Employee may resign from employment
with E&B (or, if involuntarily terminated, give notice of intention to
collect benefits under this Agreement) if (i) Employee delivers a notice
in writing (the “Notice of Termination”) to Company and E&B and (ii) E&B
or Leesport fails to cure the condition giving rise to such right to terminate
within thirty (30) days of receipt of the Notice of Termination.  In the event of termination by Executive as a
result of any of the foregoing events, such termination shall be effective no
more than sixty (60) days after the end of the 30-day cure period described
above and the provisions of Section 7 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 

 

6

 

assets of Company, or (C) a purchase by Company of
substantially all of the assets of another entity, unless 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;

 

(ii)                    any
other change in control of Company designated as such by the Board of Directors
of Company similar in effect to any of the foregoing; or

 

(iii)                 the sale, exchange or other
disposition by Company (or an affiliate of Company) of a majority of the voting
stock, or all or substantially all of the assets, of E&B to a person
unrelated to Company (or an affiliate of Company).

 

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

 

(a)          Except as provided in Section 6(b) below
(relating to a Board Approved Change in Control), in the event that Employee
delivers a Notice of Termination to Company and E&B, E&B shall make (or
cause to be made) a lump sum cash payment to Employee no later than
thirty (30) days following the date of such termination in an amount equal
to two (2) times Employee’s then Annual Base Salary.

 

(b)         Notwithstanding the provisions of Section 6(a) hereof,
in the event Employee delivers a Notice of Termination to Company and E&B
after the occurence of a Change in Control which was approved in advance by at
least two-thirds (2/3) of the directors of Company then in office who are not
interested in the transaction (a “Board Approved Change in Control”), E&B shall
make (or cause to be made) a lump sum cash payment to Employee no later than
thirty (30) days following the date of such termination in an amount equal
to the the sum of (i) Employee’s then Annual Base Salary and (ii) the
average of the amount(s) paid to him (or otherwise accrued) annually
during the Employment Period as bonuses under Section 4 or otherwise.  The provisions of this Section 6(b) shall
apply only in the event Employee delivers a Notice of Termination after July 1,
2010.  In the event Employee delivers a
Notice of Termination on or before July 1, 2010, the provisions of Section 6(a) shall
apply whehter or not the Change in Control is a Board Approved Change in
Control.

 

(c)          In no event shall the termination payment
otherwise required under this Section be made to the extent it would
trigger a reduction in tax deductions under Code Section 280G.  If Code Section 280G would apply to such
payment when made, the amount of such payment shall be reduced to the maximum
amount that can be paid without triggering the reduction 

 

7

 

in tax deductions.  If Code Section 280G would become
applicable to the termination payment after it is made, Employee shall be
obligated to repay such amount as may be necessary to avoid such application,
determined as provided in the last sentence of Section 7(a) hereof.

 

(d)         Employee
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
Employee as the result of employment by another employer or by reason of
Employee’s receipt of or right to receive any retirement or other benefits
after the date of termination of employment or otherwise.

 

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

 

(a)          In
the event that Employee’s employment is involuntarily terminated by E&B
without Cause and no Change in Control shall have occurred at the date of such
termination, E&B shall continue to pay (or cause to be paid) Employee’s
Annual Base Salary in effect on the date of termination for the remainder of
the then existing Employment Period, paid at the same intervals as the salary
is payable under Section 4(a) of this Agreement.  Notwithstanding the preceding sentence, in
the event that the payments described in the preceding sentence, when added to
all other amounts or benefits provided to or on behalf of Employee in connection
with his termination of employment, would result in the reduction of tax
deductions under Code Section 280G, such sum will be reduced
(retroactively, if necessary) to the extent necessary to avoid such
reduction.  Upon written notice to
Employee, together with calculations of E&B’s independent auditors,
Employee shall remit to E&B the amount of the reduction plus such interest
as may be necessary to avoid the imposition of such excise tax.

 

(b)         Employee
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
Employee as the result of employment by another employer or by reason of
Employee’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 7 shall constitute Employee’s
sole and exclusive remedy in the event of involuntary termination of Employee’s
employment by E&B in the absence of a Change in Control.

 

8

 

(d)        Severance
benefits paid pursuant to Section 7(a) above, to the extent of
payments made from the date of termination of the Employee’s employment through
March 15th of the calendar year following such termination, are intended
to constitute separate payments for purposes of Section 1.409A-2(b)(2) of
the Treasury Regulations and thus payable pursuant to the “short-term deferral”
rule set forth in Section 1.409A-1(b)(4) of the Treasury
Regulations; to the extent such payments are made following said March 15th,
they are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of
the Treasury Regulations made upon an involuntary termination from service and
payable pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury
Regulations, to the maximum extent permitted by said provision. Notwithstanding
the foregoing, if Company or E&B determines that any other payments
hereunder fail to satisfy the distribution requirement of Section 409A(a)(2)(A) of
the Code, the payment of such benefit shall be delayed to the minimum extent
necessary so that such payments are not subject to the provisions of Section 409A(a)(1) of
the Code.

 

8.               Covenant Not to Compete.

 

(a)         Employee
hereby acknowledges and recognizes the highly competitive nature of the business
of Company and E&B and accordingly agrees that, during and for the
applicable period set forth in Section 8(c) hereof, as applicable,
Employee 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 of any person, firm, corporation or enterprise engaged in (1) the
banking (including bank holding company) or financial services industry, or (2) the
insurance agency or brokerage industry, or (3) any other activity in which
Company or E&B, or any of their respective affiliates, is engaged during
the Employment Period, in any county in which, at any time during the
Employment Period or at the date of termination of the Employee’s employment, a
branch, office or other facility of Company or E&B, or any of their
respective affiliates, is located, or in any county contiguous to such a
county, including contiguous counties located outside of the Commonwealth of
Pennsylvania (the “Non-Competition Area”); or

 

(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) the insurance agency or brokerage industry, or (3) any
other activity in which Company or

 

9

 

E&B, or any of their
respective affiliates is engaged during the Employment Period, in the
Non-Competition Area; or

 

(iii)            solicit
any person, firm, corporation, or enterprise who or which at any time during
the Employment Period were customers of Company, E&B or any of their
subsidiaries or affiliates for the purpose of providing them with products or
services competitive with those provided by any of such entities; or

 

(iv)           solicit
or hire any persons who were, at the time of termination of Employee’s
employment or at the time of any such solicitation or proposed hiring,
employees of Company, E&B or any of their subsidiaries or affiliates or
induce any of such employees to terminate their employment relationship with
Company, E&B or any of their subsidiaries or affiliates.

 

(b)        It
is expressly understood and agreed that, although Employee and Company and
E&B consider the restrictions contained in Section 8(a) hereof
reasonable for the purpose of preserving for Company and E&B and their
respective affiliates their goodwill 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 8(a) hereof
is an unreasonable or otherwise unenforceable restriction against Employee, the
provisions of Section 8(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. It is further expressly agreed and understood that, in the event of
a judicial determination that any restriction contained in Section 8(a) hereof
is invalid at a time when Company or E&B is required to make continuing
payments under this Agreement, the obligation to make such continuing payments
shall cease and be of no further force or effect as of the date of such
determination.

 

(c)         The
provisions of this Section 8 shall be applicable commencing on the date of
this Agreement and ending on one of the following dates, as applicable:

 

(i)                  if
Employee’s employment terminates in accordance with the provisions of Section 3(a) hereof
following delivery of a notice of nonrenewal by Company or E&B, the ending
date of the then existing Employment Period;

 

(ii)               if
Employee’s employment terminates in accordance with the provisions of Section 3(a) hereof
following delivery of a notice of nonrenewal by Employee, the first anniversary
date of the effective date of termination of employment;

 

10

 

(iii)            if
the Employee’s employment terminates in accordance with the provisions of Section 3(b) hereof
(relating to termination for Cause), the second anniversary date of the
effective date of termination of employment;

 

(iv)           if
Employee voluntarily terminates his employment in accordance with the provisions
of Section 6 hereof following a Change in Control (which is not a Board Approved Change in Control),
the effective date of termination of employment;

 

(v)              if Employee voluntarily terminates his
employment in accordance with the provisions of Section 6 hereof following
a Board Approved Change in Control, the first anniversary date of the effective
date of termination of employment; provided, however, that in the event
Employee volutarily terminates his employment in accordance with the provisions
of Section 6 by delivery of a Notice of Termination prior to July 1,
2010, the provisions of this Section 8 shall terminate on the effective
date of termination of employment whether or not the Change in Control is a
Board Approved Change in Control;

 

(vi)           if Employee’s
employment is involuntarily terminated in accordance with the provisions of Section 3(d) or
Section 7, the date of the final payment made in accordance with Section 7;
or

 

(vii)        if
Employee voluntarily terminates his employment other than under the circumstances
described in (ii), (iv), (v) (vi) above, the second anniversary date
of the effective date of termination of employment.

 

9.               Unauthorized Disclosure. During the term of his employment hereunder, or
at any later time, the Employee shall not, without the written consent of the
Board of Directors of Company and E&B or a person authorized thereby,
knowingly disclose to any person, other than an employee of Company and E&B
or a person to whom disclosure is reasonably necessary or appropriate in connection
with the performance by the Employee of his duties as an employee of E&B,
any material confidential information obtained by him while in the employ of
E&B with respect to any of Company’s or E&B’s services, products,
improvements, formulas, designs or styles, processes, customers, methods of
business or any business practices the disclosure of which could be or will be
damaging to Company or E&B; provided, however, that confidential
information shall not include any information known generally to the public
(other than as a result of unauthorized disclosure by the Employee or any
person with the assistance, consent or direction of the Employee) or any
information of a type not otherwise considered confidential by persons engaged
in the same business of a business similar to that conducted by Company or
E&B or any information that must be disclosed as required by law.

 

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

 

11

 

Employee’s
residence, in the case of notices to Employee, and to the principal executive
offices of Company and E&B, in the case of notices to Company and E&B.

 

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 Employee and an Employee officer specifically designated by the Board
of Directors of E&B. 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 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 E&B 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 E&B 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 E&B to expressly assume and
agree to perform this Agreement in the same manner and to the same extent that
Company and E&B would be required to perform it if no such succession had
taken place. Failure by Company and E&B 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 “E&B” shall mean
Company and E&B as defined previously and any successor to their respective
businesses and/or assets as aforesaid which assumes and agrees to perform this
Agreement by operation of law or otherwise.

 

(b)        This
Agreement shall inure to the benefit of and be enforceable by Employee’s
personal or legal representatives, executors, administrators, heirs,
distributees, devisees and legatees. If Employee should die after a Notice of
Termination is delivered by Employee, or following termination of Employee’s
employment without Cause, and any amounts would be payable to Employee under
this Agreement if Employee had continued to live, all such amounts shall be
paid in accordance with the terms of this Agreement to Employee’s devisee,
legatee, or other designee, or, if there is no such designee, to Employee’s
estate.

 

15.         Damages for Breach of Contract. In the event of a breach of this Agreement by
either Company, E&B or Employee resulting in damages to another party to
this Agreement, that party may recover from the party breaching the Agreement
only those damages as set forth

 

12

 

herein.
In the event any dispute arises regarding this Agreement, each party shall bear
its own attorney’s fees and costs.

 

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.

 

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

 

 

	
   

  	
  LEESPORT
  FINANCIAL CORP.

  
	
   

  	
   

  
	
   

  	
  By

  	
         /s/
  Robert D. Davis

  
	
   

  	
   

  
	
   

  	
  “Company”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ESSICK &
  BARR, LLC

  
	
   

  	
   

  
	
   

  	
  By

  	
         /s/
  Robert D. Davis

  
	
   

  	
   

  
	
   

  	
  “E&B”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Michael Herr

  
	
   

  	
  Michael Herr

  
	
   

  	
  “Employee”

  

 

13

 

EXHIBIT
A

 

ILLUSTRATIVE
EXAMPLE OF SEMI-ANNUAL BONUS

 

	
  When the actual E&B EBITA
  is X% of

  budget for applicable 6-month period

  	
   

  	
  Then Bonus is X% of EBITA for
  such

  period

  
	
   

  	
   

  	
   

  
	
  90-99%

  	
   

  	
  1%

  
	
  100% and above

  	
   

  	
  10% of
  incremental EBITA

  
	
   

  	
   

  	
   

  
	
  Example:

  	
   

  	
   

  
	
  Semi-Annual EBITA Goal

  	
   

  	
  $1,500,000

  
	
  Actual EBITA for semi-annual period

  	
   

  	
  $1,650,000 or
  110% of goal

  
	
   

  	
   

  	
   

  
	
  Semi-Annual bonus

  	
   

  	
  1% x $1,500,000
  = $15,000

  
	
   

  	
   

  	
  10%x $150,000=
  $15,000

  

 

14

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