Document:

Term Sheet - Eddie L. Dunklebarger

 Exhibit 10.1 
 SUSQUEHANNA BANCSHARES, INC 
 SUMMARY OF TERMS FOR EMPLOYMENT AGREEMENT 
 FOR EDDIE L. DUNKLEBARGER 
 Summary of terms of
employment of Eddie L. Dunklebarger (the “Executive”) by Susquehanna Bancshares, Inc. (the “Parent”) as of the Closing Date of the Merger: 
  

	 Termination of Company Employment Agreement 
	 The Executive’s existing Employment Agreement with Community Banks, Inc. (the “Company”) shall terminate as of the Closing Date.
The Parent will pay the Executive $1,690,000 in consideration of the termination of the Company Employment Agreement. Payment of such amount shall be made in accordance with section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”). 

  

	 	 The “parachute tax” gross up provision of Section 8 of the existing Employment Agreement shall apply with respect to any excise tax
imposed on the Executive under section 4999 of the Code as a result of the Merger. 

  

	 	 The parachute tax gross up provision under the new Parent Employment Agreement described below shall apply only with respect to amounts payable in
connection with a Change in Control of Parent, and shall not apply in the absence of a Change in Control of Parent. 

  

	 	 The Executive shall be responsible for any tax imposed under section 409A of the Code, and in no event shall the Company or Parent have any
liability with respect to any tax under section 409A of the Code. 

  

	 New Parent Employment Agreement 
	 The Executive and the Parent will enter into a new evergreen three-year Employment Agreement as of the Closing Date (such that the terms is at all
times for three years), which will include the non-competition and non-solicitation covenants described below. The Employment Agreement will be based on the standard Parent employment agreement for executives of Parent with the title of Executive
Vice President, but with the terms described below. 

  

	 	 The Employment Agreement will specifically confirm: 

  

	 	•	 	 Parent assumption of any continuing obligations to the Executive under the Survivor Income Agreement, including the Split Dollar Addendum referenced in the Company
Employment Agreement and the Amended and Restated Salary Continuation Agreement referenced in the Company Employment Agreement. Parent will agree not to take any actions to accelerate the timing of payments under the Amended and Restated Salary
Continuation Agreement prior to Executive’s attaining age 65, absent Executive’s consent; and 

  

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	 	•	 	 Parent’s obligation to, in all events, continue health benefits until age 65 (whether through active employee coverage, continuation after termination of
employment, or payments in lieu of coverage). 

  

	 Position 
	 Vice Chairman of the Board of Directors and an executive management position with Parent. The specific duties and responsibilities will be agreed
upon by the Parent and the Executive commensurate with the Executive’s position, and will be included in the Employment Agreement. 

  

	 Term of Employment Agreement 
	 Commencing on the Closing Date, three year evergreen; the Employment Agreement renews daily such that the term of the Employment Agreement is at
all times three years. 

  

	 Base Salary 
	 $400,000. The Board of Directors will consider merit-based increases annually commencing second full year of employment. Annual base salary cannot
be decreased below then current level, including as it may be increased from time to time during the term. 

  

	 Annual Bonus 
	 The Executive shall participate in the executive incentive plan as applicable to other senior executive employees; bonuses under the plan are
discretionary by Parent Board of Directors or its designee. 

  

	 Benefits 
	 Participation in the Parent’s health, life, disability, retirement, incentive and other benefit plans as applicable to other senior executive
employees, and provision of perquisites (club memberships and car) as available to other senior executive employees, subject in all respects to the terms of the applicable plans and policies of Parent as in effect from time to time.

  

	 	 Reimbursement of expenses in accordance with the Parent’s reimbursement policy, subject to presentation of proper documentation.

  

	 	 Vacation according to Parent vacation policy. 

  

	 Termination without Cause or Resignation due to Adverse Change 
	 If, after the Closing Date, the Executive’s employment is terminated by the Parent without Cause (as defined in the Parent’s standard
employment agreement) or by the Executive due to Adverse Change (as defined in the Parent’s standard employment agreement) and the Executive does not continue as a director of the Parent, the Executive shall receive the following severance
compensation, subject to execution (and non-revocation) of a release: 

  

	 	•	 	 Payment of 3 times average annual salary and bonus (based on the prior three calendar years), in installments in accordance with the Parent’s normal payroll
practices. 

  

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	 	•	 	 If the Executive participates in a Parent defined benefit plan, the benefit that would have been earned under the defined benefit plan had the Executive remained
employed for the remainder of the term of the Employment Agreement. 

  

	 	•	 	 A monthly payment equal to 150% of the Company’s actual premium cost of group term life insurance for the remainder of the term of the Employment Agreement.

  

	 	•	 	 Group health benefits until the Executive’s attainment of age 65 (through active employee coverage, continuation after termination of employment, or payments
in lieu of coverage) as described above. 

  

	 	 The payments are subject to a six month delay if required under section 409A of the Internal Revenue Code. 

  

	 	 If the Executive continues as a director of Parent after termination of employment, none of the foregoing payments shall be made.

  

	 Termination six months after Closing 
	 The Executive may elect to terminate employment during the 30 day period beginning six months after the Closing Date for any reason other than
Cause, in which case the Executive shall receive the severance compensation described above with respect to a “Termination without Cause” upon execution (and non-revocation) of a release, provided the Executive resigns as a director.

  

	 	 If the Executive continues as a director of Parent, none of the foregoing payments shall be made. 

  

	 Other Termination 
	 No severance benefits. 

  

	 Non-competition, non-solicitation and other covenants 
	 The Executive agrees to execute the Restrictive Covenants Agreement (in the form attached) containing non-competition, non-solicitation (of
employees and customers), intellectual property, confidentiality and non-disparagement covenants that are effective on the Closing Date. The non-competition and non-solicitation covenants will be effective for a three year period after the
Executive’s termination of employment for any reason (or, if the Executive terminates employment at or before the Closing Date, for a three year period following the Closing Date). The covenants shall apply without regard to whether the
Executive enters into the new Parent Employment Agreement as of the Closing Date. 

  

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	 	 If the Executive does not enter into the new Parent Employment Agreement as of the Closing Date, if the Executive’s employment with the
Company terminates without Cause on or before the Closing Date, and if the Executive does not become a director of the Parent, the Parent will pay the Executive $1,200,000 in bi-weekly installments over the three-year non-competition period. The
foregoing payment will not be made if the Executive’s employment with the Company is terminated for Cause or if the Executive serves as a director of the Parent following the Closing Date. 

  

	 	 The new Parent Employment Agreement will include the foregoing covenants. The non-competition and non-solicitation covenants will apply during the
period of the Executive’s employment with the Parent and will continue for the three year period following the Executive’s date of termination for any reason. 

  

	 Change in Control of Parent 
	 In the event of a Change in Control (as defined in the Parent’s standard employment agreement) of Parent: 

  

	 	•	 	 The Executive will become fully vested in his outstanding incentive awards, which will be paid at target levels. 

  

	 	•	 	 If the Executive is participating in a defined benefit plan, the Executive will accrue an additional non-qualified pension benefit as if the Executive had remained
employed for three years after the Change in Control. 

  

	 	•	 	 The non-competition and non-solicitation periods shall extend to the third anniversary of the Change in Control. 

  

	 	•	 	 The Executive will remain available for transition services for two years after termination of employment. 

  

	 Excise Tax 
	 The Employment Agreement will contain a conditional parachute tax gross up provision, which shall apply with respect to amounts payable in
connection with a Change in Control of Parent. 

  

	 Indemnity 
	 Indemnification provisions as in the Parent’s standard employment agreement. 

  

	 Preemptive Considerations 
	 Provisions addressing suspension, prohibition or removal of the Executive from participating in the Parent’s affairs pursuant to the Federal
Deposit Insurance Act, as in the Parent’s standard employment agreement. 

  

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 IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed this Term Sheet the day
and year first above written. 
  

											
		 		 		 	SUSQUEHANNA BANCSHARES, INC.
						
	Attest:	 	    /s/ Lisa M. Cavage	 		 	By:	 	    /s/ Edward Balderston, Jr.	 	
	Secretary	 		 	 Edward Balderston, Jr.
 Executive Vice
President
	 	
					
		 		 		 	EMPLOYEE	 	
	Witness:	 		 		 		 	
				
	            /s/ Timothy A. Hoy	 		 	            /s/ Eddie L. Dunklebarger	 	(Seal)
	Name: Timothy A. Hoy	 		 	Eddie L. Dunklebarger	 	

  

 5Term Sheet - Jeffrey L. Siebert

 Exhibit 10.2 
 SUSQUEHANNA BANCSHARES, INC 
 SUMMARY OF TERMS FOR EMPLOYMENT AGREEMENT 
 FOR JEFFREY M. SEIBERT 
 Summary of terms of employment
of Jeffrey M. Seibert (the “Executive”) by Susquehanna Bank PA (the “Bank”) as of the Closing Date of the Merger: 
  

	 Termination of Company Employment Agreement 
	 The Executive’s existing Employment Agreement with Community Banks, Inc. (the “Company”) shall terminate as of the Closing Date.
The Bank will pay the Executive $807,500 in consideration of the termination of the Company Employment Agreement. Payment of such amount shall be made in accordance with section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”). 

  

	 	 The “parachute tax” gross up provision of Section 8 of the existing Employment Agreement shall apply with respect to any excise tax
imposed on the Executive under section 4999 of the Code as a result of the Merger. 

  

	 	 The Executive shall be responsible for any tax imposed under section 409A of the Code, and in no event shall the Company, the Bank or Parent have
any liability with respect to any tax under section 409A of the Code. 

  

	 New Parent Employment Agreement 
	 The Executive and the Bank will enter into a new three-year Employment Agreement as of the Closing Date, which will include non-competition and
non-solicitation covenants described below. The Employment Agreement will be based on the standard Bank employment agreement for executives of the Bank with the title Executive Vice President, but with the terms described below.

  

	 	 The Employment Agreement will specifically confirm: 

  

	 	•	 	 Parent assuming or causing the Bank to assume any continuing obligations to Executive under the Survivor Income Agreement, including the Split Dollar Addendum
referenced in the Company Employment Agreement and the Amended and Restated Salary Continuation Agreement referenced in the Employment Agreement. Parent (or Bank) will agree not to take any actions to accelerate the timing of payments under the
Amended and Restated Salary Continuation Agreement prior to Executive’s attaining age 65, absent Executive’s consent; and 

  

	 	•	 	 Parent’s (or Bank’s) obligation to, in all events, continue health benefits until age 65 (whether through active employee coverage, continuation after
termination of employment, or payments in lieu of coverage). 

  

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	 Position 
	 Executive Vice President and Chief Operating Officer of the Bank. Specific duties, responsibilities, and reporting lines will be agreed upon by
the Bank and Executive commensurate with Executive’s position, and included in the Employment Agreement. 

  

	 Term of Employment Agreement 
	 The term of the agreement will be three years from the Closing Date. The term will automatically renew for an additional year if neither party has
given notice to the other party of its intention not to renew the agreement at least sixty days prior to any scheduled termination of the agreement. 

  

	 Base Salary 
	 $250,000. The Bank’s Board of Directors will consider merit-based increases annually commencing second full year of employment. Annual base
salary cannot be decreased below then current level, including as it may be increased from time to time during the term. 

  

	 Annual Bonus 
	 The Executive shall participate in the executive incentive plan as applicable to other senior executive employees; bonuses under the plan are
discretionary by the Parent’s Board of Directors or its designee. 

  

	 Benefits 
	 Participation in the Parent’s and the Bank’s health, life, disability, retirement, incentive and other benefit plans as applicable to
other senior executive employees of the Bank and provision of perquisites (club memberships and car) as available to other senior executive employees of the Bank, subject in all respects to the terms of the applicable plans and policies of the
Parent and the Bank as in effect from time to time. 

  

	 	 Reimbursement of expenses in accordance with the Bank’s reimbursement policy, subject to presentation of proper documentation.

  

	 	 Vacation according to the Bank’s vacation policy. 

  

	 Termination without Cause or Resignation due to Adverse Change 
	 If the Executive’s employment is terminated by the Bank without Cause (as defined in the Bank’s standard employment agreement) or by the
Executive due to Adverse Change (as defined in the Bank’s standard employment agreement; provided that the definition of Adverse Change shall be modified to provide that Adverse Change shall exist if the Executive is asked to relocate his
principal business location from Lancaster County, Pennsylvania), the Executive shall receive the following severance compensation, subject to execution (and non-revocation) of a release: 

  

	 	•	 	 Payment of average annual salary and bonus (based on the prior three calendar years) for the remainder of the term of the Employment Agreement, in installments in
accordance with the Bank’s normal payroll practices. 

  

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	 	•	 	 If the Executive participates in a Parent or Bank defined benefit plan, the benefit that would have been earned under the defined benefit plan had the Executive
remained employed for the remainder of the term of the Employment Agreement. 

  

	 	•	 	 A monthly payment equal to 150% of the Bank’s actual premium cost of group term life insurance for the remainder of the term of the Employment Agreement.

  

	 	•	 	 Group health benefits until the Executive’s attainment of age 65 (through active employee coverage, continuation after termination of employment, or payments
in lieu of coverage) as described above. 

  

	 	 The payments are subject to six month delay if required under section 409A of the Internal Revenue Code. 

  

	 Other Termination 
	 No severance benefits. 

  

	 Non-competition, non-solicitation and other covenants 
	 The Executive agrees to execute the Restrictive Covenants Agreement (in the form attached) containing non-competition, non-solicitation (of
employees and customers), intellectual property, confidentiality and non-disparagement covenants that are effective on the Closing Date. Following termination of the Executive’s employment, the non-competition and non-solicitation covenants
will be effective for the greater of one year or the remainder of the term of the Employment Agreement as of the date of the Executive’s termination of employment for any reason (or, if the Executive terminates employment at or before the
Closing Date, for a three year period following the Closing Date). The covenants shall apply without regard to whether the Executive enters into the new Bank Employment Agreement as of the Closing Date. 

  

	 	 If the Executive does not enter into the new Bank Employment Agreement as of the Closing Date or if the Executive’s employment terminates
with the Company terminates without Cause on or before the Closing Date, the Bank will pay the Executive $750,000 in bi-weekly installments over the three-year non-competition period. The foregoing payment will not be made if the Executive’s
employment with the Company is terminated for Cause. 

  

	 	 The new Bank Employment Agreement will include the foregoing covenants. The non-competition and non-solicitation covenants will apply during the
period of the Executive’s employment with the Bank and will continue following the Executive’s termination of employment for any reason for the greater of one year or the remainder of the term of employment at the time of termination.

  

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	 	 In the event of a Change in Control (as defined in the Bank’s standard employment agreement) of Parent while the Executive is employed by the
Bank, the non-competition and non-solicitation covenants extend until the third anniversary of the Change in Control. 

  

	 Change in Control of Parent 
	 In the event of a Change in Control of Parent: 

  

	 	•	 	 The Executive will become fully vested in his outstanding incentive awards, which will be paid at target levels. 

  

	 	•	 	 If the Executive is participating in a defined benefit plan, the Executive will accrue an additional non-qualified pension benefit as if the Executive had remained
employed for three years after the Change in Control. 

  

	 	•	 	 The Executive will remain available for transition services for two years after termination of employment. 

  

	 Excise Tax 
	 The Employment Agreement will contain a conditional parachute tax gross up provision, which shall apply with respect to amounts payable in
connection with a Change in Control of Parent. 

  

	 Indemnity 
	 Indemnification provisions as in the Bank’s standard employment agreement. 

  

	 Preemptive Considerations 
	 Provisions addressing suspension, prohibition or removal of the Executive from participating in the Parent’s or Bank’s affairs pursuant
to the Federal Deposit Insurance Act, as in the Bank’s standard employment agreement. 

  

 4 

 IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed this Term Sheet the day
and year first above written. 
  

											
		 		 		 	SUSQUEHANNA BANCSHARES, INC.
						
	Attest:	 	    /s/ Lisa M. Cavage	 		 	By:	 	    /s/ Edward Balderston, Jr.	 	
	Secretary	 		 	 Edward Balderston, Jr.
 Executive Vice
President
	 	
					
		 		 		 	EMPLOYEE	 	
	Witness:	 		 		 		 	
				
	            /s/ Timothy A. Hoy	 		 	            /s/ Jeffrey M. Seibert	 	(Seal)
	Name: Timothy A. Hoy	 		 	Jeffrey M. Seibert	 	

  

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