Document:

EX-10.6

    Exhibit
      10.6

    

    EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT ("Agreement"), dated September 6, 2005, is made among
      NATIONAL PENN BANCSHARES, INC., a Pennsylvania business corporation and
      registered bank holding company ("NPB"); NATIONAL PENN BANK, a national banking
      association ("Bank"); and VIRGINIA A. MCADOO ("Executive") (NPB and Bank are
      sometimes referred to herein collectively as "Employer").

    

    BACKGROUND

    

    1.
      Executive is presently employed by Nittany Bank ("Nittany Bank") as its Vice
      President - Retail Banking Support.

    

    2.
      Nittany Bank is a wholly-owned subsidiary of Nittany Financial Corp., a
      Pennsylvania business corporation and registered savings and loan holding
      company ("NF").

    

    3.
      On
      September 6, 2005, NPB and NF entered into an Agreement (the "Merger Agreement")
      providing, among other things, for the merger of NF with and into NPB (the
      "Merger"), to be followed, at the discretion of NPB, by the Bank Merger (as
      defined in the Merger Agreement). The Agreement also provides for Bank to
      establish, immediately after any such Bank Merger, a new banking division to
      be
      called the "Nittany Bank Division of National Penn Bank" (the "Nittany Bank
      Division").

    

    4.
      It is
      the desire of the Boards of Directors of NPB and Bank that Executive continue
      Executive’s employment from and after the effective date of the Merger (the
“Effective Date”), on the terms and conditions set forth herein, in order that
      the experience Executive has gained throughout Executive’s career and the
      management ability Executive has demonstrated will continue to be available
      to
      NPB and Bank, including Nittany Bank or the Nittany Bank Division, if and when
      established. Executive is willing to continue such employment, on the terms
      and
      conditions set forth herein.

    

    AGREEMENT

    

    NOW,
      THEREFORE, in consideration of the mutual promises contained herein, and each
      intending to be legally bound, NPB, Bank and Executive agree as
      follows:

    

    1. Background.
      The
      matters set forth in the "Background" section of this Agreement are incorporated
      by reference herein.

    

    2. Term.
      This
      Agreement shall be for a term of five (5) years (the "Term"), beginning on
      the
      Effective Date, subject to termination at any time as provided in Sections
      9
      through 13.

    

    
      
        
        

      

      
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    3. Position,
      Duties.

    

    (a) During
      the Term, NPB will cause Executive to be employed as Vice President - Retail
      Banking Support of Nittany Bank or of the Nittany Bank Division. Executive
      acknowledges that Executive’s employment as such officer does not give rise to
      an obligation to maintain the Nittany Bank Division beyond that provided in
      the
      Merger Agreement. Executive accepts such employment, with such powers and duties
      as may from time to time be determined by NPB's Chairman or
      President.

    

    (b) Executive
      will devote substantially all of Executive’s time and attention to, and will use
      Executive’s best energies and abilities in the performance of, Executive’s
      duties and responsibilities as prescribed in this Section 3, and will not engage
      in consulting work or any trade or business for Executive’s own account or for
      or on behalf of any other person, firm or corporation which competes, conflicts,
      or interferes with the performance of Executive’s duties hereunder in any way.
      Notwithstanding the foregoing, Executive may perform community service
      consistent with NPB and Bank policy and engage in activities on behalf of NPB
      or
      Bank or for Executive’s own account, including personal investment activities
      (excluding any personal investments in publicly-traded companies (other than
      NPB) with voting power equal to five percent or more); provided, however, that
      all such service or activities do not interfere with performance of Executive's
      responsibilities under this Agreement.

    

    4. Base
      Compensation.
      Except
      as provided in Section 17, for all services to be performed by Executive
      pursuant to Section 3, Employer will pay Executive a base salary of Eighty
      Thousand Dollars ($80,000.00) per year (pro-rated for partial years). Employer
      shall pay such salary to Executive in approximately equal installments during
      each year on the customary salary payment dates of Employer, and such salary
      shall be subject to applicable income tax withholding, deductions required
      by
      law, and other deductions authorized by Executive. Executive shall not be
      entitled to any additional compensation for service as a director or committee
      member of NPB, Bank, the Nittany Bank Division or any other affiliated company.
      Employer will evaluate Executive's performance annually, and Executive shall
      be
      eligible for annual merit increases in base salary in the discretion of NPB
      and
      Bank. A base salary increase (if any) shall, when it takes effect, become the
      new minimum base salary required thereafter by this Section 4.

    

    5. Health
      Insurance, Benefit Plans, Stock Compensation Plans, etc.

    

    (a) In
      addition to the compensation payable to Executive pursuant to Section 4 hereof,
      Executive shall be entitled during the time this Agreement is in effect to
      participate in all health insurance and benefit plans, group insurance, salary
      reduction (401(k)) plans, employee stock purchase plans or other plans (other
      than pension plans) providing benefits applicable generally to employees of
      NPB
      or Bank which are presently in force or which may hereafter be adopted by NPB
      or
      Bank.

    

    
      
        
        

      

      
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    (b) Executive
      shall also be eligible during the time this Agreement is in effect for receipt
      of stock options, restricted stock, or other equity awards, commensurate with
      Executive’s positions with NPB and Bank, pursuant to NPB's Long-Term Incentive
      Compensation Plan or any successor or additional stock option plan or stock
      compensation plan which may hereafter be adopted by NPB for officers and other
      key employees of NPB and its subsidiaries. Any discretionary terms of grants
      or
      awards to Executive (other than with respect to amount) shall be consistent
      with
      grants or awards to other senior officers generally.

    

    6. Bonuses.
      As
      additional compensation for services rendered hereunder, Executive shall be
      entitled to participate in such Financial Performance Incentive Plan as NPB
      may
      establish from time to time for the Nittany Bank Division (the “Nittany
      Incentive Plan”).

    

    7. Other
      Benefits.
      Except
      as provided in Section 17, as additional compensation for services rendered
      hereunder, Executive shall be entitled during the time this Agreement is in
      effect

    

    (a) To
      life
      insurance coverage and long-term disability insurance coverage at no expense
      to
      Executive, in amounts available to others in commensurate positions with
      Employer;

    

    (b) To
      receipt of a cellular telephone allowance, in such amount as shall be determined
      by Employer from time to time, in Employer’s sole discretion, but in no event
      less than $60.00 per month; and

    

    (c) To
      reasonable vacation and sick leave in accordance with Employer policy, as the
      same may be revised from time to time.

    

    8. Change
      in Control.

    

    (a) If
      a
      Change in Control (as defined in Section 8(b)) shall occur, and if thereafter,
      there shall be:

    

    (1)
      At
      any time, any involuntary termination of Executive's employment (other than
      for
      Cause);

    

    (2)
      At
      any time, any reduction in Executive's title, responsibilities or authority,
      including such title, responsibilities or authority as such may be increased
      from time to time;

    

    (3)
      At
      any time, any reduction in Executive's Salary in effect immediately prior to
      a
      Change in Control, or any failure to provide Executive with benefits at least
      as
      favorable as those enjoyed by Executive under any of the pension, life
      insurance, medical, health and accident, disability or other employee plans
      of
      Employer in which Executive participated immediately prior to a Change in
      Control, or the taking of any action that would materially reduce any of such
      compensation or benefits in effect at the time of the Change in Control, unless
      such reduction relates to a reduction applicable to all employees
      generally;

    

    
      
        
        

      

      
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    (4)
      At
      any time, any reassignment of Executive beyond a fifty (50) mile radius from
      Executive's home address set forth on the signature page hereto; or

    

    (5)
      At
      any time, any requirement that Executive travel in performance of Executive’s
      duties on behalf of NPB or an Affiliate for a greater period of time during
      any
      year than was required of Executive during the year preceding the year in which
      the Change in Control occurred;

    

    then,
      at
      the election of Executive, exercisable by Executive within one hundred eighty
      (180) days of the occurrence of any of the foregoing events, Executive may
      resign from employment (or, if involuntarily terminated, give notice of
      intention to collect benefits hereunder) by delivering a notice in writing
      to
      Employer, in which case Executive shall be entitled to a lump sum cash severance
      payment of $80,000, which Employer shall pay to Executive within fifteen (15)
      days of Executive's termination of employment.

    

    Notwithstanding
      the foregoing or any other provision of this Agreement to the contrary, in
      no
      event shall the lump sum payment to Executive pursuant to this Section 8(a)
      be
      greater than an amount equal to an amount ("X") determined pursuant to the
      following formula:

    

    X
      =
      (2.99A - B) x (1 + C)D.

    

    For
      purposes of the foregoing formula:

    

    A
      =Executive's Base Amount on the date of the Change in Control;

    

    B
      =The
      present value of all other amounts which qualify as parachute payments under
      Code Section 280G(b)(2)(A) or (B) (without regard to the provisions of Code
      Section 280G(b)(2)(A)(ii)), such present value to be determined pursuant to
      the
      provisions of Code Section 280G;

    

    C
      =60%
      times the lowest of the semiannual applicable federal rates (determined pursuant
      to Code Section 1274(d)) in effect on the date of the Change in Control;
      and

    

    D
      =The
      number of whole semiannual periods plus any fraction of a semiannual period
      from
      the date of the Change in Control to the date of termination of the Executive's
      employment.

    

    
      
        
        

      

      
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    (b) "Change
      in Control" means:

    

    (1) An
      acquisition by any "person" or "group" (as those terms are defined or used
      in
      Section 13(d) of the Securities Exchange Act of 1934 (the "Exchange Act"))
      of
      "beneficial ownership" (within the meaning of Rule 13d-3 under the Exchange
      Act)
      of securities of NPB representing 24.99% or more of the combined voting power
      of
      NPB's securities then outstanding;

    

    (2) A
      merger,
      consolidation or other reorganization of Bank, except where the resulting entity
      is controlled, directly or indirectly, by NPB;

    

    (3) A
      merger,
      consolidation or other reorganization of NPB, except where shareholders of
      NPB,
      immediately prior to consummation of any such transaction, continue to hold
      at
      least a majority of the voting power of the outstanding voting securities of
      the
      legal entity resulting from or existing after any such transaction and
      a
      majority of the members of the Board of Directors of the legal entity resulting
      from or existing after any such transaction are former members of NPB's Board
      of
      Directors;

    

    (4) A
      sale,
      exchange, transfer or other disposition of substantially all of the assets
      of
      Bank to another entity, except to an entity controlled, directly or indirectly,
      by NPB;

    

    (5) A
      sale,
      exchange, transfer or other disposition of substantially all of the assets
      of
      NPB to another entity, or a corporate division involving NPB; or

    

    (6) The
      following individuals cease for any reason to constitute a majority of the
      number of directors then serving: individuals
      who were directors of NPB on the Effective Date, together with individuals
      elected as directors by not less than a majority of the individuals who were
      directors of NPB on the Effective Date, shall cease to constitute a majority
      of
      the members of the board of directors of NPB.

    

    (c)
      "Affiliate" means any corporation which is included within a "controlled group
      of corporations" including NPB, as determined under Code Section
      1563.

    

    (d)
      "Base
      Amount" means Executive's average annualized taxable compensation from Employer
      for the five years prior to the year in which a Change in Control occurs,
      determined in accordance with the provisions of Code Section 280G.

    

    (e)
      "Code" means the Internal Revenue Code of 1986, as amended, and as the same
      may
      be amended from time to time.

    

    (f)
      "Employer" includes, for purposes of Section 8 only, NPB or any Affiliate which
      employs Executive at any particular time.

    

    
      
        
        

      

      
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    (g)
      "Salary" means Executive's annual base salary, established either by contract
      or
      by the Board of Directors of Employer, prior to any reduction of such salary
      pursuant to any contribution to a tax-qualified plan under Section 401(k) of
      the
      Code.

    

    (h) Executive
      shall not be required to mitigate the amount of any payment provided for in
      Section 8(a) by seeking other employment or otherwise, nor shall the amount
      of
      any payment or benefit provided for in Section 8(a) 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.

    

    9. Termination--Disability.
      Employer may terminate Executive's employment at any time if Executive shall
      be
      "disabled" for a period of 180 consecutive days. "Disability" means that,
      because of Executive's injury or sickness, Executive cannot perform each of
      the
      material duties of Executive’s regular occupation, as determined by Employer in
      good faith. In such event:

    

    (a) This
      Agreement shall remain in effect for the remainder of the Term and terminate
      at
      the end of such Term;

    

    (b) Employer
      shall continue to pay Executive the compensation set forth in Section 4 for
      the
      remainder of the Term, at the times set forth in Section 4; and

    

    (c) Employer
      shall continue to pay Executive the compensation set forth in Section 6, if
      any,
      at the times and for the duration set forth in the Nittany Incentive
      Plan.

    

    10. Termination--Death.
      If
      Executive's employment is terminated because of Executive's death:

    

    (a) This
      Agreement shall terminate at that time; and

    

    (b) Within
      30
      days of the date of death, Employer shall pay to Executive's designated
      beneficiary, in one lump sum, an amount equal to the total amount of
      compensation remaining to be paid to Executive pursuant to Section 4 through
      the
      remaining Term of the Agreement and Section 6 for the remaining period set
      forth
      in the Nittany Incentive Plan.

    

    11. Voluntary
      Termination.
      Executive may terminate Executive’s employment with Employer at any time. In
      such event:

    

    (a) This
      Agreement shall terminate at that time; and

    

    
      
        
        

      

      
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    (b) Employer
      shall not be obligated to pay Executive any further compensation pursuant to
      Section 4 or otherwise, except that the following shall remain due and payable
      by Employer to Executive notwithstanding termination of this
      Agreement:

    

    (1) Section
      4
      compensation, if any, accrued and unpaid through the date of voluntary
      termination;

    

    (2) The
      remaining amount payable to Executive pursuant to Section 6, if any, in
      accordance with the Nittany Incentive Plan; and

    

    (3) The
      amount payable to Executive pursuant to Section 8, if any.

    

    12. Termination--Cause.
      Nothing
      contained in this Agreement shall be construed to prevent Employer from
      terminating the employment of Executive hereunder at any time for
      "cause".

    

    (a) "Cause"
      means the Employer's good faith reasonable belief that the Executive committed
      (1) fraud, theft or embezzlement, (2) falsified corporate records,
      (3) disseminated confidential information concerning customers, NPB, Bank,
      any NPB or Bank subsidiary or any of its or their employees, (4) had
      documented unsatisfactory job performance under NPB's dismissal policy, or
      (5) violated NPB's Code of Conduct. The foregoing definition of "cause" is
      the definition of "cause" used by NPB, Bank and their subsidiaries in the
      ordinary course of business.

    

    (b) If
      Employer terminates Executive's employment for cause:

    

    (1) Employer
      shall give Executive a written notice of termination effective on the date
      specified by Employer in said notice, which notice shall contain a full
      statement of the facts and reasons for such termination;

    

    (2) This
      Agreement shall terminate at such time, and such date of termination shall
      constitute the last date of the Term; and

    

    (3) Employer
      shall not be obligated to pay Executive any further compensation pursuant to
      Section 4 or otherwise, except for (A) Section 4 compensation, if any, accrued
      and unpaid through the date of termination and (B) the remaining amount payable
      to Executive pursuant to Section 6, if any, in accordance with the Nittany
      Incentive Plan.

    

    13. Termination--Without
      Cause.
      Employer may terminate Executive's employment at any time without cause (defined
      in Section 12(a)). In such event:

    

    (a) This
      Agreement shall remain in effect for the remainder of the Term and shall
      terminate thereafter;

    

    
      
        
        

      

      
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    (b) Employer
      shall continue to pay Executive the compensation set forth in Section 4 for
      the
      remainder of the Term at the times set forth in Section 4;

    

    (c) Employer
      shall continue to pay Executive the compensation set forth in Section 6, if
      any,
      at the times and for the duration set forth in the Nittany Incentive
      Plan;

    

    (d) Employer
      shall reimburse Executive for the cost of "COBRA" health care continuation
      coverage for the remainder of the Term;

    

    (e) If
      a
      Change in Control (defined in Section 8(b)) shall occur prior to the end of
      the
      Term, Employer shall pay to Executive the payment to which Executive is entitled
      pursuant to Section 8; 

    

    (f) if
      applicable, during the Tail Period described in Section 14(b)(5) or Section
      14(b)(6) below, Employer shall make cash payments to Executive at a rate of
      Fifty-Two Thousand Dollars ($52,000) per year (pro-rated for partial years),
      in
      approximately equal installments during such Tail Period on the customary salary
      payment dates of Employer, subject to applicable income tax withholding and
      other deductions required by law; and

    

    (g) Executive
      shall not receive any other employee benefits, including the benefits described
      in Section 7 of this Agreement, or be entitled to participate in any other
      plan
      or plans providing benefits generally to employees of Employer which are
      presently in effect or which may hereafter be adopted by Employer, for the
      remainder of the Term.

    

    14. Non-Competition.
      

    

    (a) Executive
      acknowledges that NPB is a registered bank holding company engaged principally
      in the commercial and retail banking business through its ownership, support,
      operation and management of its subsidiaries, including Bank. During the Term
      and thereafter for the applicable Tail Period (as defined in Section 14(b)
      below), if any, Executive shall not, directly or indirectly, acting alone or
      in
      conjunction with others:

    

    (1) Engage
      as
      a director, officer, employee, partner, shareholder, consultant, agent or in
      any
      other capacity, in the commercial or retail banking business in competition
      with
      NPB, Bank or any other future NPB banking subsidiary, in any location whether
      or
      not within the Commonwealth of Pennsylvania that is within either fifty (50)
      miles of Boyertown, Berks County, Pennsylvania, or within fifty (50) miles
      of
      State College, Centre County, Pennsylvania;

    

    (2) Request
      any customers of NPB, Bank or any other future NPB banking subsidiary, to
      curtail or cancel their business with NPB, Bank, or any other future NPB banking
      subsidiary, excluding himself and any customer who is a relative of Executive;
      or

    

    
      
        
        

      

      
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    (3) Induce,
      or attempt to influence, any employee of NPB, Bank, or any other future NPB
      banking subsidiary to terminate employment with NPB, Bank, or any other future
      NPB banking subsidiary, or to enter into any employment or other business
      relationship with any other person (including Executive), firm or
      corporation.

    

    (b) “Tail
      Period” shall have the following meaning, as the case may be: 

    

    (1) If,
      following any Change in Control, either Executive or Employer terminates
      Executive’s employment for any reason, whether voluntarily or involuntary,
      whether pursuant to Section 8(a) or otherwise (but excluding the reasons set
      forth in clause (7) below), then the Tail Period shall be a period of one year
      from the date of such termination.

    

    (2)
       If
      Executive terminates his employment pursuant to Section 11 hereof (other than
      following a Change of Control), then the Tail Period shall be a period of two
      years from the date of such termination.

    

    (3) If
      Employer terminates Executive’s employment pursuant to Section 12 hereof (other
      than following a Change of Control), then the Tail Period shall be a period
      of
      one year from the date of such termination.

    

    (4) If
      Employer terminates Executive’s employment pursuant to Section 13 hereof (other
      than following a Change of Control) and there shall be two years or more
      remaining in the Term, then there shall be no Tail Period.

    

    (5) If
      Employer terminates Executive’s employment pursuant to Section 13 hereof (other
      than following a Change of Control) and there shall be less than two years
      but
      more than one year remaining in the Term, then the Tail Period shall be such
      period of time which, when added to the remainder of the Term, would equal
      a
      period of two years.

    

    Examples:

    

      
        
          	
                  If
                    Employer terminates Executive’s employment pursuant to Section 13 hereof
                    (other than following a Change of Control):

                	 	
                  Then
                    the Tail Period in such case will be: 

                
	
                   

                  Three
                    (3) years and one (1) month after the Effective Date

                	 	
                   

                  One
                    (1) year and eleven (11) months after the end of the
                    Term

                
	 	 	 
	
                  Three
                    (3) years and six (6) months after the Effective Date

                	 	
                  One
                    (1) year and six (6) months after the end of the
                    Term

                

        

         

        
          
            
            

          

          
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                  Three
                    (3) years and eleven (11) months after the Effective Date

                	 	
                  One
                    (1) year and one (1) month after the end of the
                    Term

                

        

      

    

    

    (6) If
      Employer terminates Executive’s employment pursuant to Section 13 hereof (other
      than following a Change of Control) and there shall be one year or less
      remaining in the Term, then the Tail Period shall be a period of one year from
      the end of the Term. 

    

    (7) If
      Employer terminates Executive’s employment pursuant to Section 9 hereof, or upon
      the expiration of the Term, then regardless of whether a Change of Control
      shall
      have previously occurred, there shall be no Tail Period.

    

    (c) Executive
      recognizes that immediate and irreparable damage will result to Employer if
      Executive breaches any of the terms and conditions of this Section 14 and,
      accordingly, Executive hereby consents to the entry by any court of competent
      jurisdiction of an injunction against him to restrain any such breach, in
      addition to any other remedies or claims for money damages which Employer may
      seek. Executive represents and warrants to Employer that Executive’s experience
      and capabilities are such that Executive can obtain employment in business
      without breaching the terms and conditions of this Section 14, and the
      enforcement hereof by injunction or otherwise will not prevent Executive from
      earning a livelihood. This Section 14 shall remain in full force and effect
      in
      accordance with its provisions following any termination of this
      Agreement.

    

    15. Non-Disclosure.
      During
      the Term and for an indefinite period thereafter, Executive shall not, directly
      or indirectly, acting alone or in conjunction with others, disclose to any
      person, firm or corporation any of the following information: any trade secret,
      any details of organization or business affairs, any names of past or present
      customers, consumers or employees, or any other proprietary data or confidential
      information, of NPB, Bank, or of any of NPB's other direct or indirect, present
      or future, subsidiaries or affiliates; provided, however, that disclosure of
      such information within the scope of Executive's employment, disclosure of
      such
      information as is required by law, and disclosure of such information already
      in
      the public domain through no fault of Executive, shall not be prohibited by
      this
      Section 15.

    

    Employer
      may enforce the provisions of this Section 15 by suit for damages, injunction,
      or both. Executive agrees that Employer would be irreparably injured by the
      breach of any provision of this Section 15, and money damages alone would not
      be
      an appropriate measure of the harm to Employer from such continuing breach.
      Therefore, Executive acknowledges and agrees that Employer may seek equitable
      relief, including specific performance of the provisions of this Section 15,
      by
      injunction to remedy a breach of the provisions of this Section 15. This Section
      15 shall remain in full force and effect in accordance with its provisions
      following any termination of this Agreement.

    

    
      
        
        

      

      
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    16. Binding
      Effect, Assignment.

    

    (a) This
      Agreement shall be binding upon and inure to the benefit of NPB and Bank, and
      it
      shall be assignable to any corporation, limited liability company or other
      entity which may be or become the legal employer of all of NPB's and Bank's
      current employees in which case both NPB and Bank shall be guarantors of the
      due
      performance of all obligations set forth herein and the term "Employer" used
      herein shall include such assignee. This Agreement shall also be assignable
      to
      any corporation, bank or other entity which may acquire NPB's or Bank's business
      or all or substantially all of the assets of NPB or Bank, or with or into which
      NPB or Bank may be merged or consolidated, as provided in Section
      16(b).

    

    (b) Each
      of
      NPB and Bank shall require any successor (whether direct or indirect, by
      purchase, merger, consolidation or otherwise) to all or substantially all of
      the
      business and/or assets of NPB or Bank to expressly assume and agree to perform
      this Agreement in the same manner and to the same extent that NPB or Bank would
      be required to perform it if no such succession had taken place. Failure to
      obtain such assumption and agreement prior to the effectiveness of any such
      succession shall constitute a breach of this Agreement, in which case a "Change
      in Control" (as defined in Section 8(b)) shall be deemed to have occurred and
      Executive shall have the immediate right to take the actions and receive the
      payments provided in Section 8. As used in this Agreement, "NPB" and "Bank"
      shall mean NPB and Bank as previously defined and any successor to the business
      and/or assets of NPB or Bank as aforesaid which assumes and agrees to perform
      this Agreement by operation of law or otherwise.

    

    (c) This
      Agreement shall be binding upon and inure to the benefit of Executive,
      Executive’s personal and legal representatives, heirs, distributees, devisees
      and assigns. Notwithstanding the foregoing, the obligations and duties of
      Executive hereunder shall be personal and not assignable or delegable by
      Executive in any manner whatsoever.

    

    17. Exception
      for Across-the-Board Actions.
      If,
      during the Term, the Boards of Directors of NPB and Bank shall determine, acting
      in good faith and with a reasonable basis, that it is in the best interests
      of
      NPB, Bank and NPB's shareholders to implement one or more broad,
      across-the-board cost-cutting measures for all members of senior management
      of
      NPB and its subsidiaries, then, notwithstanding Sections 4 and 7, Executive's
      base compensation and other benefits may be reduced in accordance with such
      cost-cutting measures in a manner consistent with any such reductions in base
      compensation and/or other benefits for other senior officers
      generally.

    

    18.
      Employment
      After Term; Survival of Provisions.
      Upon
      expiration of the Term, as it may be extended from time to time and Executive's
      employment status shall convert to "at will" employment status and the
      provisions of Section 15 relating to non-disclosure shall remain in full force
      and effect in accordance with its provisions.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    19. Notices.
      All
      notices or other communications hereunder shall be in writing and shall be
      deemed given upon delivery if delivered personally or two business days after
      mailing if mailed by prepaid, registered or certified mail, return receipt
      requested, addressed as follows:

    

    If
      to
      NPB, to:

    

    Wayne
      R.
      Weidner

    Chairman
      and Chief Executive Officer

    National
      Penn Bancshares, Inc.

    Reading
      and Philadelphia Avenues

    Boyertown,
      PA 19512

    

    If
      to
      Bank, to:

    

    Glenn
      E.
      Moyer

    President
      and Chief Executive Officer

    National
      Penn Bank

    Reading
      and Philadelphia Avenues

    Boyertown,
      PA 19512

    

    If
      to
      Executive, at the address set forth on the signature page hereto;

    

    or
      to
      such other address as may have been previously furnished by the party to the
      other by notice given in the manner provided herein.

    

    20. Entire
      Agreement.
      This
      Agreement is intended by the parties to constitute and does constitute the
      entire agreement between NPB, Bank and Executive with respect to the subject
      matter hereof. This Agreement supersedes any and all prior agreements,
      understandings, negotiations and discussions of the parties, whether oral or
      written.

    

    21. Amendment.
      This
      Agreement may be amended, modified, waived, discharged or terminated only by
      an
      instrument in writing signed by Executive, an authorized officer of NPB or
      an
      authorized officer of Bank, as the case may be, against whom or which
      enforcement of the amendment, modification, waiver, discharge or termination
      is
      sought.

    

    22. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the domestic
      internal law of the Commonwealth of Pennsylvania.

    

    23. Interpretation
      of Provisions.
      Wherever possible, each provision of this Agreement shall be interpreted in
      such
      manner as to be effective and valid under applicable law, but if any provision
      of this Agreement shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provision or the remaining provisions
      of this Agreement. Without limiting the generality of the foregoing, if a court
      of competent jurisdiction shall determine that the time or geography provisions
      of Section 14 are not reasonable, then such provision(s) shall be reformed
      to
      reflect such period of time or geographical areas as the court shall determine
      to be reasonable and enforceable.

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    24. Captions.
      The
      captions contained in this Agreement are for reference purposes only and are
      not
      part of this Agreement.

    

    25. Joint
      and Several Obligations.
      All
      obligations of NPB and Bank herein shall be joint and several
      obligations.

    

    26. Deferred
      Compensation.
      Notwithstanding
      anything herein to the contrary, in no event shall this Agreement be construed
      to cause a payment of deferred compensation (as defined for purposes of Section
      409A of the Code and any guidance or regulations promulgated thereunder) to
      be
      made on any date (or upon the occurrence of any event) which would cause the
      imposition of an excise tax under Section 409A of the Code. In the event that
      this Agreement purports to provide that such a payment is to be made on any
      date
      (or upon the occurrence of any event) which would cause the imposition of an
      excise tax under Section 409A of the Code, such payment shall not be made until
      the earliest date on which (or upon the occurrence of the next event upon which)
      such payment can be made without causing the imposition of such an excise
      tax.

    

    27. Effective
      Date.
      This
      Agreement shall terminate and be of no further force and effect if for any
      reason the Merger Agreement is terminated prior to a Merger.

    

    [Signature
      Page Follows]

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

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

    

    

      
        	 	
                NATIONAL
                  PENN BANCSHARES, INC.

              
	 	 
	 	 
	 	
                By:
                  /s/
                  Wayne R. Weidner

              
	 	
                Name:
                  Wayne R. Weidner

              
	 	
                Title:
                  Chairman/CEO

              
	 	 
	 	
                NATIONAL
                  PENN BANK

              
	 	 
	 	 
	 	
                By:
                  /s/
                  Glenn E. Moyer

              
	 	
                Name:
                  Glenn E. Moyer

              
	 	
                Title:
                  President/CEO

              
	 	 
	 	 
	
                Witness:
                  /s/ Lisa M. Williams

              	
                /s/
                  Virginia A. McAdoo

              
	 	
                Virginia
                  A. McAdoo

              
	 	 
	 	
                Address:

                 

              
	 	
                _____________________________

                 

              
	 	
                _____________________________

                 

              
	 	
                _____________________________

                 

              

      

    

     

    14Exhibit 10.1

                             SUBSCRIPTION AGREEMENT

Las Vegas Resorts Corporation
211 West Wall Street
Midland, Texas 79701-4556

Ladies and Gentlemen:

         The   undersigned   subscriber   ("Subscriber")   hereby  tenders  this
Subscription  Agreement (this "Agreement") in accordance with and subject to the
terms and conditions set forth herein:

1.       Subscription.

         1.1 Subscriber  hereby subscribes for and agrees to purchase the number
of shares  (the  "Shares")  of  common  shares,  $.001 par value per share  (the
"Common Shares"),  of Las Vegas Resorts  Corporation,  a Nevada corporation (the
"Company"),  indicated on the  signature  page  attached  hereto at the purchase
price set forth on such  signature page (the  "Purchase  Price"),  such Purchase
Price being equal to the product of (i) the number of Common  Shares  subscribed
for by the Subscriber and (ii) current fair market value of the shares of Common
Shares.  Subscriber  has made or will make payment by wire  transfer of funds in
accordance with instructions from the Company in the full amount of the Purchase
Price of the Common Shares for which Subscriber is subscribing (the "Payment").

         1.2 This  Agreement  is part of an isolated  offering of Common  Shares
being  conducted  by the  Company  in  reliance  upon  the  exemption  from  the
registration  requirements  of the  Securities  Act of 1933,  as  amended  ( the
"Act"), afforded by Section 4(2) thereunder.

         1.3 The Company will hold closing of the offering  (the  "Closing")  at
any mutually  agreeable time,  hereinafter  sometimes  referred to as a "Closing
Date."  Upon  receipt by the  Company of the  requisite  payment  for all Common
Shares to be purchased by the Subscriber, the Common Shares so purchased will be
issued  in the  name of  Subscriber,  and the  name  of the  Subscriber  will be
registered  on the stock  transfer  books of the Company as the record  owner of
such Common Shares. The Company will promptly thereafter issue to the Subscriber
participating  in such  closing a stock  certificate  for the  Common  Shares so
purchased.

         1.4 Subscriber  hereby agrees to be bound hereby upon (i) execution and
delivery to the Company of the signature page to this Agreement and (ii) written
acceptance  on the  Closing  Date by the Company of  Subscriber's  subscription,
which shall be confirmed by faxing to the  Subscriber the signature page to this
Agreement that has been executed by the Company (the "Subscription").

2.       Offering Material.

         2.1  Subscriber  represents  and warrants  that it is in receipt of and
that  it has  carefully  read  all  documents  filed  by the  Company  with  the
Commission prior to the date of this Agreement.

         Said  documents   shall  be  referred  to  herein  as  the  "Disclosure
Documents."

3.       Conditions to Subscriber's Obligations.

         3.1 The obligation of Subscriber to close the transaction  contemplated
by this Agreement (the "Transaction") is subject to the satisfaction on or prior
to the Closing  Date of the  conditions  set forth in  Sections  3.2 through 3.5
hereof and the satisfaction of Section 3.6 on and as of the Closing Date.

         3.2 The Company shall have  executed  this  Agreement and delivered the
same to the Subscriber.

         3.3  The  Board  of  Directors  of  the  Company   shall  have  adopted
resolutions consistent with Section 4.1(e) below in a form reasonably acceptable
to the Subscriber.

         3.4  Subscriber  shall  have  received  copies  of  all  documents  and
information  which it may  have  reasonably  requested  in  connection  with the
Offering.

                                       1
<PAGE>

         3.5 No stop order or  suspension  of trading shall have been imposed by
the Securities and Exchange  Commission (the "SEC"),  or any other  governmental
regulatory body with respect to public trading in Common Shares of the Company.

         3.6 The representations and warranties of the Company shall be true and
correct on and as of the Closing Date as though made on and as of such date.

4.       Representations and Warranties; Covenants; Survival.

         4.1 The Company represents and warrants to Subscriber that, at the date
of this Agreement and at the Closing Date on which  Subscriber  purchases Common
Shares:

                  (a) The  Company has the full power and  authority  to execute
and deliver  this  Agreement  and to perform  its  obligations  hereunder.  This
Agreement  constitutes the valid and legally binding  obligation of the Company,
enforceable in accordance  with its terms.  The Company need not give any notice
to, make any filings with, or obtain any authorization,  consent, or approval of
any government or  governmental  agency in order to consummate the  transactions
contemplated by this Agreement.

                  (b) The Company and each of its  subsidiaries are corporations
duly  organized,  validly  existing and in good standing under the laws of their
states of  incorporation,  with all requisite  corporate  power and authority to
carry on the business in which they are engaged and to own the  properties  they
own,  and the  Company  has all  requisite  power and  authority  to execute and
deliver this Agreement and to consummate the transactions  contemplated  hereby.
The Company and each of its  subsidiaries  are duly qualified and licensed to do
business and are in good standing in all jurisdictions where the nature of their
business  makes such  qualification  necessary,  except  where the failure to be
qualified or licensed  would not have a material  adverse effect on the business
of the Company and its subsidiaries, taken as a whole.

                  (c) Except as set forth in the Company's filings with the SEC,
there are no legal  actions  or  administrative  proceedings  or  investigations
instituted,  or to the best  knowledge  of the Company  threatened,  against the
Company,  that could reasonably be expected to have a material adverse effect on
the Company or any subsidiary,  any of the Common Shares, or the business of the
Company  and its  subsidiaries,  if any,  or  which  concerns  the  transactions
contemplated by this Agreement.

                  (d) The Company, by appropriate and required corporate action,
has, or will have prior to the Closing,  duly  authorized  the execution of this
Agreement and the issuance and delivery of the Common Shares.  The Common Shares
are not subject to preemptive or other rights of any stockholders of the Company
and when issued in accordance  with the terms of this Agreement and the Articles
of Incorporation of the Company,  as amended and currently in effect, the Common
Shares will be validly issued,  fully paid and  nonassessable and free and clear
of all  pledges,  liens and  encumbrances.  The  issuance  of the Common  Shares
hereunder will not trigger any outstanding antidilution rights.

                  (e)  Performance  of this  Agreement and  compliance  with the
provisions hereof will not violate any provision of any applicable law or of the
Articles  of  Incorporation  or  Bylaws  of  the  Company,  or  of  any  of  its
subsidiaries,  and, will not conflict with or result in any breach of any of the
terms,  conditions or provisions of, or constitute a default under, or result in
the creation or imposition of any lien,  charge or encumbrance  upon, any of the
properties or assets of the Company, or of any of its subsidiaries,  pursuant to
the  terms of any  indenture,  mortgage,  deed of trust  or other  agreement  or
instrument binding upon the Company, or any of its subsidiaries, other than such
breaches,  defaults or liens which would not have a material  adverse  effect on
the Company and its subsidiaries taken as a whole. The Company is not in default
under any provision of its charter or by-laws or other organizational  documents
or under any  provision of any  agreement or other  instrument  to which it is a
party  or by  which it is  bound  or of any  law,  governmental  order,  rule or
regulation  so as to affect  adversely  in any  material  manner its business or
assets or its condition, financial or otherwise.

                  (f) The Disclosure  Documents,  taken together, do not contain
any  untrue  statement  of a  material  fact or omit to  state a  material  fact
required  to be stated  therein to make the  statements  contained  therein  not
misleading.

                                       2
<PAGE>

                  (g) The  Company has  provided  Subscriber  with all  material
public  information  in  connection  with the  business  of the  Company and the
transactions  contemplated by this Agreement,  and no representation or warranty
made, nor any document,  statement, or financial statement prepared or furnished
by the Company in connection  herewith contains any untrue statement of material
fact,  or omits to state a material  fact  necessary to make the  statements  or
facts contained herein or therein not misleading.

                  (h) This Agreement has been duly executed and delivered by the
Company  and  constitutes  a  valid  and  binding  obligation  of  the  Company,
enforceable against the Company in accordance with its terms.

                  (i) No registration, authorization, approval, qualification or
consent  of any  court or  governmental  authority  or agency  is  necessary  in
connection  with the execution  and delivery of this  Agreement or the offering,
issuance or sale of the Common Shares under this Agreement.

                  (j) The  Company is not now,  and after the sale of the Common
Shares under this Agreement and under all other  agreements and the  application
of the net  proceeds  from  the  sale  of the  Common  Shares  will  not be,  an
"investment  company" within the meaning of the Investment  Company Act of 1940,
as amended.

                  (k) The Company has filed all material tax returns required to
be filed, which returns are true and correct in all material  respects,  and the
Company is not in default in the payment of any taxes,  including  penalties and
interest,  assessments,  fees and other charges,  shown thereon due or otherwise
assessed,  other than those being contested in good faith and for which adequate
reserves have been provided or those currently  payable  without  interest which
were payable pursuant to said returns or any assessments with respect thereto.

                  (l) The Company has not taken any action  outside the ordinary
course of business  designed to or that might reasonably be expected to cause or
result in  stabilization  or  manipulation  of the price of the Common Shares to
facilitate   the  sale  or  resale  of  the  Common  Shares  in  any  manner  in
contravention of applicable securities laws.

                  (m)   Subject   to   the   accuracy   of   the    Subscriber's
representations and warranties in Section 7 of this Agreement,  the offer, sale,
and issuance of the Common Shares in conformity with the terms of this Agreement
constitute  transactions exempt from the registration  requirements of Section 5
of the Act and from the registration or  qualification  requirements of the laws
of any applicable state or United States jurisdiction.

                  (n) Neither the Company,  nor any of its  affiliates,  nor any
person acting on its or their behalf, has directly or indirectly made any offers
or sales in any  security  or  solicited  any offers to buy any  security  under
circumstances  that would require  registration  under the Securities Act of the
issuance  of the Shares to the  Subscriber.  The  issuance  of the Shares to the
Subscriber  will not be  integrated  with any other  issuance  of the  Company's
securities  (past,  current or future) for purposes of the  Securities  Act. The
Company will not make any offers or sales of any security (other than the Common
Shares) that would cause the offering of the Common Shares to be integrated with
any other offering of securities by the Company for purposes of any registration
requirement under the Securities Act or any applicable rules of Nasdaq.

                  (o) The Company is in material  compliance with all applicable
securities (or "Blue Sky") laws of the states of the United States in connection
with the issuance and sale of the Common Shares to Subscriber.

                  (p) The Company shall use all commercially  reasonable efforts
to keep the Common Shares quoted on the OTC Bulletin Board.

5.       Transfer and Registration Rights.

         5.1 Subscriber  acknowledges that it is acquiring the Common Shares for
its own  account and for the  purpose of  investment  and not with a view to any
distribution  or resale thereof within the meaning of the Act and any applicable
state or other securities laws ("State Acts"). Subscriber further agrees that it
will not sell, assign, transfer or otherwise dispose of any of the Common Shares
in  violation  of the  Act or  State  Acts  and  acknowledges  that,  in  taking
unregistered  Common Shares, it must continue to bear economic risk in regard to
its  investment  for an indefinite  period of time because of the fact that such
Common Shares have not been  registered  under the Act or State Acts and further
realizes that such Common Shares cannot be sold unless  subsequently  registered
under  the  Act and  State  Acts  or an  exemption  from  such  registration  is
available.  Subscriber  further  recognizes that the Company is not assuming any

                                       3
<PAGE>

obligation to register such Common Shares.  Subscriber  also  acknowledges  that
appropriate legends reflecting the status of the Common Shares under the Act and
State Acts may be placed on the face of the  certificates for such Common Shares
at the time of their transfer and delivery to the holder thereof. This Agreement
is made with Subscriber in reliance upon Subscriber's above representations.

         5.2  Mandatory  Registration.  Upon  receipt of  written  demand by the
Subscriber,  the Company shall prepare,  and, as soon as  practicable  but in no
event later than 60 calendar  days after the date of such notice,  file with the
SEC a  Registration  Statement or  Registration  Statements (as is necessary) on
Form S-3 (or if such form is  unavailable,  such other form as is available  for
registration) covering the resale of all of the Shares. The initial Registration
Statement  prepared  pursuant  hereto  shall  register  for resale at least that
number of Company  common  stock  shares equal to the number of Shares as of the
date  immediately  preceding  the date the  Registration  Statement is initially
filed  with the SEC,  subject  to  adjustment.  The  Company  shall use its best
efforts to have the Registration Statement declared effective by the SEC as soon
as  practicable,  but in no event  later than 120  calendar  days after the date
notice is received.

         5.3 Piggy Back Registration Rights.

                  (a) If the Company  decides,  including as required  under any
demand  registration  rights  agreement,  to register any of its common stock or
securities   convertible  into  or  exchangeable  for  common  stock  under  the
Securities Act on a form which is suitable for an offering for cash or shares of
the  Company  held by third  parties and which is not a  registration  solely to
implement an employee  benefit  plan, a  registration  statement on Form S-4 (or
successor  form) or a transaction to which Rule 145 or any other similar rule of
the SEC is  applicable,  the Company will  promptly  give written  notice to the
Subscriber  of its intention to effect such a  registration.  Subject to Section
4(b) below,  the  Company  shall  include all of the Shares that the  Subscriber
requests to be included in such a registration by a written notice  delivered to
the Company within fifteen (15) days after the notice given by the Company.

                  (b) If the registration, as described in Section 5.3(a) above,
involves an underwritten  offering, the Company will not be required to register
Shares in excess of the amount that the principal underwriter  reasonably and in
good faith  recommends  may be included in such  offering (a  "Cutback"),  which
recommendation,  and supporting reasoning, shall be delivered to the Subscriber.
If such a Cutback occurs,  the number of shares that are entitled to included in
the registration and  underwriting  shall be allocated in the following  manner:
(i) first,  to the  Company for any  securities  it proposes to sell for its own
account,  (ii) second, to the Subscriber requiring such registration,  and (iii)
third,  to other  holders of stock of the Company  requesting  inclusion  in the
registration,  pro rata among the respective holders thereof on the basis of the
number  of  shares  for  which  each  such   requesting   holder  has  requested
registration.

         5.4 The Common  Shares  issued  pursuant to this  Agreement  may not be
transferred  except in a  transaction  which is in  compliance  with the Act and
State Acts.

6.       Closing.

         6.1 The Closing of the sale of the Common  Shares to  Subscriber  shall
take  place at the  offices  of the  Company  at such  time as the  Company  and
Subscriber shall mutually agree.

7.       Subscriber Representations.  Subscriber hereby represents, warrants and
acknowledges and agrees with the Company as follows:

         7.1  Subscriber  has been  furnished  with and has  carefully  read the
Disclosure Documents as set forth in Section 2.1 hereto and is familiar with the
terms of the Offering.  With respect to individual or partnership  tax and other
economic considerations  involved in this investment,  Subscriber is not relying
on the  Company  (or  any  agent  or  representative  of  any  of the  Company).
Subscriber has carefully  considered and has, to the extent Subscriber  believes
such discussion  necessary,  discussed with Subscriber's  legal, tax, accounting
and financial advisers the suitability of an investment in the Common Shares for
Subscriber's particular tax and financial situation.

         7.2 Subscriber has had an  opportunity  to inspect  relevant  documents
relating  to  the  organization  and  operations  of  the  Company.   Subscriber
acknowledges that all documents, records and books pertaining to this investment
which  Subscriber  has  requested  have been made  available  for  inspection by
Subscriber and Subscriber's attorney, accountant or other adviser(s).

                                       4
<PAGE>

         7.3 Subscriber and/or Subscriber's advisor(s) has/have had a reasonable
opportunity  to ask questions of and receive  answers and to request  additional
relevant  information  from a person or persons  acting on behalf of the Company
concerning the offering.

         7.4 Subscriber is not  subscribing for the Common Shares as a result of
or  subsequent  to any  advertisement,  article,  notice or other  communication
published  in any  newspaper,  magazine  or  similar  media  or  broadcast  over
television or radio or presented at any seminar.

         7.5  Subscriber,  by  reason  of  Subscriber's  business  or  financial
experience or the business or financial experience of Subscriber's  professional
advisers who are unaffiliated with and who are not compensated by the Company or
any  affiliate  of either of them,  directly or  indirectly,  can be  reasonably
assumed to have the capacity to protect Subscriber's own interests in connection
with the transaction.  Subscriber further  acknowledges that Subscriber has read
the written materials provided by the Company.

         7.6 Subscriber has adequate means of providing for Subscriber's current
financial  needs and  contingencies,  is able to bear the  substantial  economic
risks of an investment  in the Common  Shares for an indefinite  period of time,
has no need for liquidity in such  investment  and, at the present  time,  could
afford a complete loss of such investment.

         7.7 Subscriber has such knowledge and experience in financial,  tax and
business  matters  so as to  enable  Subscriber  to  use  the  information  made
available to Subscriber  in connection  with the offering to evaluate the merits
and  risks  of an  investment  in the  Common  Shares  and to make  an  informed
investment decision with respect thereto.

         7.8 Subscriber  acknowledges  that the Common Shares herein  subscribed
for have not been  registered  under the Act or under any State Act.  Subscriber
understands further that in absence of an effective Registration Statement,  the
Common Shares can only be sold  pursuant to some  exemption  from  registration,
such as Rule 144 of the Act, which requires,  among other  conditions,  that the
Common Shares must be held for a minimum of one (1) year.

         7.9 Subscriber recognizes that investment in the Common Shares involves
substantial risks. Subscriber acknowledges that Subscriber has reviewed the risk
factors   identified  within  the  Disclosure   Documents.   Subscriber  further
recognizes  that no Federal or state  agencies have passed upon this offering of
the Common  Shares or made any finding or  determination  as to the  fairness of
this investment.

         7.10 Subscriber  acknowledges  that each  certificate  representing the
Common Shares shall contain a legend substantially in the following form:

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
         ACT OF 1933 (THE  "SECURITIES  ACT") OR UNDER APPLICABLE STATE
         SECURITIES LAWS AND MAY NOT BE SOLD,  TRANSFERRED OR OTHERWISE
         DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND ANY
         APPLICABLE  STATE  SECURITIES  LAWS OR PURSUANT  TO  AVAILABLE
         EXEMPTIONS  FROM SUCH  REGISTRATION,  PROVIDED THAT THE SELLER
         DELIVERS TO THE COMPANY AN OPINION OF COUNSEL  (WHICH  OPINION
         AND  COUNSEL  ARE  REASONABLY  SATISFACTORY  TO  THE  COMPANY)
         CONFIRMING  THE  AVAILABILITY  OF  SUCH  EXEMPTION.  INVESTORS
         SHOULD  BE  AWARE  THAT  THEY  MAY BE  REQUIRED  TO  BEAR  THE
         FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
         TIME.

         7.11 If this  Agreement  is  executed  and  delivered  on  behalf  of a
partnership,  corporation,  trust or estate: (i) such partnership,  corporation,
trust or  estate  has the full  legal  right and  power  and all  authority  and
approval  required  (a) to execute  and  deliver,  or  authorize  execution  and
delivery of, this Agreement and all other instruments  executed and delivered by
or on behalf of such  partnership,  corporation,  trust or estate in  connection
with the purchase of the Common Shares,  (b) to delegate authority pursuant to a
power of attorney  and (c) to purchase  and hold such  Common  Shares;  (ii) the
signature of the party signing on behalf of such partnership, corporation, trust
or estate is binding upon such partnership,  corporation,  trust or estate;  and

                                       5
<PAGE>

(iii)  such  partnership,  corporation  or  trust  has not been  formed  for the
specific purpose of acquiring the Common Shares, unless each beneficial owner of
such  entity is  qualified  as an  "accredited  investor"  within the meaning of
Regulation  D and  has  submitted  information  substantiating  such  individual
qualification.

         7.12 If Subscriber is a retirement  plan or is investing on behalf of a
retirement plan,  Subscriber  acknowledges  that investment in the Common Shares
poses risks in addition to those  associated with other  investments,  including
the  inability to use losses  generated by an investment in the Common Shares to
offset taxable income.

8.       Understandings.

         Subscriber  understands,  acknowledges  and agrees  with the Company as
follows:

         8.1  Subscriber  hereby  acknowledges  and agrees  that upon  notice of
acceptance from the Company pursuant to Section 1.4, the Subscription  hereunder
is irrevocable by Subscriber, that, except as required by law, Subscriber is not
entitled to cancel,  terminate  or revoke this  Agreement or any  agreements  of
Subscriber  hereunder  and that  this  Subscription  Agreement  and  such  other
agreements  shall survive the death or  disability  of  Subscriber  and shall be
binding upon and inure to the benefit of the parties hereto and their respective
heirs,  executors,   administrators,   successors,   legal  representatives  and
permitted  assigns.  If Subscriber is more than one person,  the  obligations of
Subscriber   hereunder   shall  be  joint  and  several   and  the   agreements,
representations, warranties and acknowledgments herein contained shall be deemed
to be made  by and be  binding  upon  each  such  person  and his or her  heirs,
executors,  administrators,  successors,  legal  representatives  and  permitted
assigns.

         8.2 No federal or state agency has made any  findings or  determination
as to the  fairness  of the  terms  of  this  offering  for  investment  nor any
recommendations or endorsement of the Common Shares.

         8.3 The Offering is intended to be exempt from  registration  under the
Securities  Act by  virtue  of  Section  4(2)  of the  Securities  Act  and  the
provisions of Rule 506 of Regulation D thereunder

         8.4 It is  understood  that in order not to jeopardize  the  offering's
exempt status under  Section 4(2) of the  Securities  Act and  Regulation D, any
transferee  may, at a minimum,  be required to fulfill the investor  suitability
requirements thereunder.

         8.5 No person or entity acting on behalf,  or under the  authority,  of
Subscriber  is or will be entitled to any  broker's,  finder's or similar fee or
commission in connection with this Subscription.

         8.6  Subscriber  acknowledges  that the  information  furnished in this
Agreement by the Company to Subscriber  or its advisers in  connection  with the
Offering,  is  confidential  and  nonpublic  and  agrees  that all such  written
information  which is material and not yet publicly  disseminated by the Company
shall be kept in  confidence by  Subscriber  and neither used by Subscriber  for
Subscriber's personal benefit (other than in connection with this Subscription),
nor disclosed to any third party,  except  Subscriber's legal and other advisers
who shall be advised of the  confidential  nature of such  information,  for any
reason;  provided,  however,  that this  obligation  shall not apply to any such
information  that (i) is part of the public  knowledge or literature and readily
accessible  at the date hereof,  (ii) becomes a part of the public  knowledge or
literature and readily accessible by publication (except as a result of a breach
of this provision) or (iii) is received from third parties (except third parties
who disclose such information in violation of any confidentiality  agreements or
obligations,  including,  without limitation, any subscription agreement entered
into with the  Company).  The  representations,  warranties  and  agreements  of
Subscriber and the Company  contained herein and in any other writing  delivered
in  connection  with the  offering  shall be true and  correct  in all  material
respects on and as of the Closing Date of such Subscription as if made on and as
of the date the Company  executes this Agreement and shall survive the execution
and delivery of this Agreement and the purchase of the Common Shares.

         8.7 IN MAKING AN INVESTMENT  DECISION,  SUBSCRIBER MUST RELY ON ITS OWN
EXAMINATION  OF THE COMPANY AND THE TERMS OF THE OFFERING,  INCLUDING THE MERITS
AND RISKS INVOLVED.  THE COMMON SHARES HAVE NOT BEEN  RECOMMENDED BY ANY FEDERAL
OR STATE SECURITIES  COMMISSION OR REGULATORY  AUTHORITY.  ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

                                       6
<PAGE>

9.       Miscellaneous.

         9.1 Except as set forth  elsewhere  herein,  any notice or demand to be
given or served in connection  herewith shall be deemed to be sufficiently given
or served for all purposes by being sent as registered or certified mail, return
receipt requested,  postage prepaid, in the case of the Company, addressed to it
at the address set forth above.  As to the  Subscriber  to the address set forth
below:

                        Halter Financial Investments, L.P.
                        12890 Hilltop Road
                        Argyle, Texas  76226
                        Attn: Timothy P. Halter, Chairman

         9.2 This  Agreement  shall be enforced,  governed and  construed in all
respects in accordance with the laws of the State of Texas, and shall be binding
upon and  inure to the  benefit  of the  parties  hereto  and  their  respective
successors  and  assigns.  If any  provision  of this  Agreement  is  invalid or
unenforceable  under any applicable  statute or rule of law, then such provision
shall be deemed  inoperative  to the extent that it may conflict  therewith  and
shall be deemed to be modified to conform  with such statute or rule of law. Any
provision hereof that may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision hereof.

         9.3 In any action, proceeding or counterclaim brought to enforce any of
the  provisions of this Agreement or to recover  damages,  costs and expenses in
connection  with any breach of the  Agreement,  the  prevailing  party  shall be
entitled  to be  reimbursed  by the  opposing  party  for all of the  prevailing
party's  reasonable  outside  attorneys'  fees,  costs and  other  out-of-pocket
expenses incurred in connection with such action, proceeding or counterclaim.

         9.4 This Agreement  constitutes the entire  agreement among the parties
hereto with respect to the subject  matter  hereof.  There are no  restrictions,
promises,  warranties or  undertakings,  other than those set forth herein.  The
Company acknowledges that all material facts upon which it has relied in forming
its decision to enter into this  Agreement  are  expressly  set forth herein and
further  acknowledges  that the  Subscriber  has not  made any  representations,
express or implied, which are not set expressly set forth herein. This Agreement
supercedes all prior agreements and understandings among the parties hereto with
respect to the subject matter hereof.

         9.5 The Company shall  indemnify,  defend and hold harmless  Subscriber
and each of its agents, partners, members, officers, directors, representatives,
or affiliates  (collectively,  the "Subscriber Indemnities") against any and all
losses, liabilities,  claims and expenses,  including reasonable attorneys' fees
("Losses"),  sustained by Subscriber Indemnities resulting from, arising out of,
or connected with any material  inaccuracy in, breach of, or  nonfulfillment  of
any representation,  warranty, covenant or agreement made by or other obligation
of the Company  contained  in this  Agreement  or in any  document  delivered in
connection herewith.

         9.6 The Company shall not issue any public  statement or press release,
or  otherwise  disclose  in any manner the  identity of the  Subscriber  or that
Subscriber has purchased the Common Shares, without the prior written consent of
the Subscriber, except as may be required by applicable law.

         10.  Signature.  The signature  page of this  Agreement is contained as
part of the applicable Subscription Package, entitled "Signature Page."

                                       7
<PAGE>

                   SUBSCRIPTION AGREEMENT GENERAL INSTRUCTIONS

General Instructions

         These  Subscription   Documents  contain  all  documents  necessary  to
subscribe for Common  Shares,  $.001 par value ("Common  Shares"),  of Las Vegas
Resorts Corporation, a Nevada corporation (the "Company").

         You may  subscribe for Common  Shares by  completing  the  Subscription
Agreement in the following manner:

         1. On line (a) of the signature  page state the number of Common Shares
you wish to purchase.

         2. On line (b) of the signature page state the total cost of the Common
Shares you wish to purchase.  To obtain the cost,  multiply the number of Common
Shares you desire to purchase by the  purchase  price per Common Share set forth
therein.

         3. Sign and state your address, telephone number and social security or
other taxpayer identification number on the lines provided on the signature page
to the Subscription  Agreement and deliver the completed  Subscription Agreement
with payment of the entire purchase price of the Common Shares subscribed for as
set forth below. Payment should be made in United States Dollars:

         The Subscription Agreement Signature Page must be completed and signed.

Acceptance of Delivery

         All questions as to the validity,  form, eligibility (including time of
receipt)  and  acceptance  of  the  completed  Subscription  Agreement  will  be
reasonably determined by the Company. The Company reserves the absolute right to
reject  the  completed  Subscription   Agreement,   in  its  sole  and  absolute
discretion.  The Company also reserves the right to waive any irregularities in,
or  conditions  of, the  submission  of completed  Subscription  Agreement.  The
Company shall be under no duty to give any  notification  of  irregularities  in
connection  with any  attempted  subscription  for  Common  Shares  or incur any
liability for failure to give such notification.  Until such irregularities have
been cured or waived,  no subscription for Common Shares shall be deemed to have
been made.  If the  Subscription  Agreement is not properly  completed and as to
which  defects  have not been cured or waived will be returned by the Company to
the Subscriber as soon as practicable.

                                       8
<PAGE>

                      SUBSCRIPTION AGREEMENT SIGNATURE PAGE

         The  undersigned  investor  hereby  certifies  that  he or she  (i) has
received and relied solely upon information provided by the Company, (ii) agrees
to all the terms and conditions of this Subscription Agreement,  (iii) meets the
suitability  standards  set forth in this  Subscription  Agreement and (iv) is a
resident of the state or foreign jurisdiction indicated below.

         (a)      The undersigned subscribes for 1,070,000 Common Shares.
         (b)      The total cost of the Common  Shares  subscribed  for, at $.25
                  per Common Share, is $267,500 (the "Purchase Price").

Halter Financial Investments, L.P.
Name of Subscriber (Print)       If other than Individual check one and indicate
                                 capacity of signatory under the signature:

_____________________________    [_] Trust
Name of Joint Subscriber         [_] Estate
(if any) (Print)                 [_] Uniform Gifts to Minors Act of State of____
                                 [_] Attorney-in-fact
                                 [_] Corporation
/s/ Timothy P. Halter, Chairman  [_] Other______________________________________
Signature of Subscriber

                                 If Joint Ownership, check one:
_____________________________
Signature of Joint Subscriber
(if any)                         [_] Joint Tenants with Right of Survivorship
                                 [_] Tenants in Common
Chairman                         [_] Tenants by Entirety
Capacity of Signatory            [_] Community Property
(if applicable)

_____________________________    Backup Withholding Statement:
Social Security or               Please check this box only if the investor
Taxpayer Identification Numbe    is subject to:

                                 [_] backup withholding.
12890 Hilltop Road
Residence Address                Foreign Person:
                                 Please check this box only if
                                 the investor is a:
Argyle     TX         76226
City      State     Zip Code     [_] nonresident  alien,  foreign  corporation,
                                     foreign  partnership,   foreign  trust  or
                                     foreign estate.

Telephone (   )__________________________
Telecopy No. (940) 455-7337

The investor agrees to the terms of this Subscription Agreement and, as required
by the  Regulations  pursuant to the  Internal  Revenue  Code,  certifies  under
penalty  of  perjury   that  (1)  the  Social   Security   Number  or   Taxpayer
Identification Number and address provided above is correct, (2) the investor is
not subject to backup withholding  (unless the Backup Withholding  Statement box
is checked) either because he has not been notified that he is subject to backup
withholding  as a result of a failure to report all  interest  or  dividends  or
because  the  Internal  Revenue  Service has  notified  him that he is no longer
subject to backup  withholding  and (3) the investor  (unless the Foreign Person
box above is checked) is not a nonresident alien, foreign  partnership,  foreign
trust or foreign estate.

                                       9
<PAGE>

        THE SUBSCRIPTION FOR 1,070,000 COMMON SHARES OF LAS VEGAS RESORTS
CORPORATION BY THE ABOVE NAMED SUBSCRIBER(S) IS ACCEPTED AS OF November 4, 2005.

                                     LAS VEGAS RESORTS CORPORATION

                                     By: /s/ Glenn A. Little
                                        ----------------------------------------
                                        Glenn A. Little, Chief Executive Officer

                                       10

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