Document:

Authorization Term of the Personal Mobile Service

 Exhibit 10.5.1 
  
 AUTHORIZATION AGREEMENT PVCP/SPV # 012/2002-ANATEL 
  

	
	AUTHORIZATION AGREEMENT FOR PERSONAL MOBILE SERVICE ENTERED INTO BETWEEN AGÊNCIA NACIONAL DE TELECOMUNICAÇÕES (BRAZILIAN TELECOMMUNICATIONS AGENCY) — ANATEL AND
Celular CRT S.A.

  
 By this agreement, on one side
AGÊNCIA NACIONAL DE TELECOMUNICAÇÕES—ANATEL, hereinafter referred to as ANATEL, a FEDERAL GOVERNMENT regulatory agency, under the terms of the General Telecommunications Law—LGT (Federal Law
No. 9,472, dated July 16, 1997), enrolled in the General Taxpayer’s ID (CGC/MF) under No. 02.030.715/0001-12, herein represented by the Chairman of its Direction Board (Conselho Diretor), Mr. LUIZ GUILHERME
SCHYMURA DE OLIVEIRA and its Board member Mr. LUIZ TITO CERASOLI and, on the other side Celular CRT S.A., enrolled in the Corporate Taxpayer’s ID (CNPJ) under No. 02.603.554/0001-09, herein represented by its
Executive Vice President, Mr. PAULO CESAR PEREIRA TEIXEIRA, Brazilian, married, engineer, identity card (Cédula de Identidade—R.G.) No. 301.540.175-9 (SSP/RS) and its Vice President for Planning and
Coordination, Mr. JOSÉ CARLOS DE LA ROSA GUARDIOLA, Spanish, divorced, engineer, alien registration card (Cédula de Identidade para Estrangeiros—RNE) No. V271593-8, hereinafter referred to as the AUTHORIZED
PARTY, enter into this AUTHORIZATION AGREEMENT, Anatel Proceedings No. 53500.001479/2001, which shall be ruled by the following clauses: 
  
  
 Chapter I 
 Purpose, Area and Term of Authorization 
  
 CLAUSE 1.1—The purpose of this Agreement is the issue of Authorization for the exploration of the Personal Mobile Service—SMP, provided on a private basis, in the geographical area comprised by the
regions of the State of Rio Grande do Sul, except for the cities of Pelotas, Morro Redondo, Capão do Leão and Turuçu, in the Region II of the PGA-SMP. 
  
 Paragraph 1—The purpose of this Authorization includes the Personal Mobile Service, provided on a private basis, in compliance
with ANATEL’s regulation, and, in particular, in agreement with the provisions set forth in the SMP Rules and in the SMP General Authorization Plan. 
  
 Paragraph 2—This Authorization is issued based on Article 214, item V, of the LGT and on the Rule for Adaptation of the Concession and Authorization
Agreements from the 

 
Cellular Mobile Service—SMC to the Personal Mobile Service—SMP, approved by ANATEL Resolution No. 318, dated September 27, 2002, as
amended by ANATEL Resolution No. 326, dated November 28, 2002, hereinafter referred to as ADAPTATION RULE in replacement to the CONCESSION AGREEMENT No. 023/97-DOTC/SFO/MC, dated November 4, 1997, D.O.U (Federal Official
Gazette) as of November 5, 1997, hereinafter referred to as REPLACED AGREEMENT. 
  
 CLAUSE 1.2—Personal Mobile Service is a land-based mobile telecommunications service of common interest that enables communication between mobile stations and from mobile stations to other stations, in
compliance with the provisions set forth in the relevant regulations. 
  
 CLAUSE 1.3—The AUTHORIZED PARTY is entitled to the industrial exploration of the means linked to the rendering of the services, in compliance with the provisions of the regulation, as well as with the provisions prescribed in
Articles 154 and 155 of the LGT. 
  
 CLAUSE
1.4—This authorization for exploring the SMP is granted for an undetermined period of time. 
  
 CLAUSE 1.5—The AUTHORIZED PARTY must operate the service with the use of the Subband of radio frequencies provided for by the REPLACED AGREEMENT, set forth below: 
  
 Transmission of the Mobile Station: 824.0 to 835.0 MHz / 845.0 to 846.5
MHz 
 Transmission of the Radio Base Station: 869.0 to 880.0 MHz / 890.0 to 891.5 MHz 
  
 CLAUSE 1.6—The right to use the radio frequencies mentioned in the previous
clause shall be effective until December 17, 2007, which is the remaining period, which may be postponed only, for an additional period of 15 (fifteen) years, and this postponement shall be charged. 
  
 Paragraph 1—The use of the radio frequency shall take place on a primary basis
and restricted to the corresponding Rendering Area. 
  
 Paragraph 2—The right to use the radio frequency is conditional on its efficient and adequate utilization. 
  
 Paragraph 3—The share of the radio frequency, when not implying harmful interference neither imposing limitation to the SMP rendering, may be authorized by
ANATEL. 
  
 CLAUSE 1.7—THE AUTHORIZED PARTY, for the postponement of
the right to use the radio frequencies linked to this Authorization, must pay, every two years, during the postponement period, a bonus corresponding to 2% (two percent) of its income for the year prior to the payment, of the SMP, net of relevant
taxes and social contributions. 
  
 Paragraph 1—In the calculation of
the amount referred to in the caput of this Clause, the net income resulting from the utilization of the Service Plans, Basic and Alternative ones (which is the purpose of this Authorization) shall be all taken into account. 

 Paragraph 2—The calculation of the percentage referred to in the caput of this Clause shall always be
made in relation to the net income from relevant tax deductions and contributions, estimated between January and December of the previous year and obtained from the financial statements prepared in accordance with basic accounting principles
approved by the AUTHORIZED PARTY’s Management and audited by independent auditors, and the payment shall be due on April 30 (thirty) of the year following the determination of the charge. 
  
 Paragraph 3—The first installment of the charge shall be due on April 30
(thirty), 2009, calculated considering the net income determined from January 1 to December 31, 2008, and the subsequent installments shall be due every twenty four months, having as calculation basis the income for the previous year.

  
 Paragraph 4—The overdue payment of the charge provided for by this
Clause shall imply the collection of a late payment fine of 0.33% (zero point thirty three percent) a day, up to the limit of 10% (ten percent), plus the SELIC reference rate for federal securities, to be imposed on the debt amount considering all
the overdue payment days. 
  
 CLAUSE 1.8—The request for the
postponement of the right to use radio frequencies must be submitted to ANATEL up to thirty months prior to the maturity date of the original period. 
  
 Sole paragraph. This shall only be rejected if the interested party fails to make rational and appropriate use of the radio frequencies, if it has committed
repeated violations in its activities or if it shall be necessary to modify the destination of the radio frequency. 
  
 CLAUSE 1.9—ANATEL is authorized to bring new granting authorization proceedings for the SMP exploration, in the event a postponement request is not timely
formulated up to 24 (twenty four) months prior to the maturity of the original period. 
  
  
 Chapter II 
 Replacement Amount 
  
 CLAUSE 2.1—The replacement
amount of the AGREEMENT REPLACED by this AUTHORIZATION AGREEMENT is R$ 9,000.00 (nine thousand reais). 
  
 Sole paragraph. The nonpayment of outstanding installments, resulting from undertaken commitments, relating to the amounts due by the Concession or Authorization of the Cellular Mobile Service—SMC, shall
imply forfeiture of this Authorization, regardless of the enforcement of other penalties. 
  
  
 Chapter III 
 Manner, Form and Conditions of Service Rendering 
  
 CLAUSE
3.1—The AUTHORIZED PARTY undertakes to provide the service, purpose of the Authorization, by means of fully complying with the obligations inherent to the service 

 
provided on a private basis, in compliance with the criteria, formulas and parameters set forth in this Authorization Agreement. 
  
 Sole paragraph. The noncompliance with the obligations related to the purpose of this
Authorization Agreement shall engender the enforcement of the sanctions set forth herein, enable temporary interruption by ANATEL and, as the case may be, the forfeiture of this Authorization, under the terms of Article 137 of the LGT. 

 
 CLAUSE 3.2—The AUTHORIZED PARTY shall provide the service (purpose of this
Authorization) on its own account and risk, on the wide and fair competition basis set forth in the LGT, and it shall be remunerated by the prices charged in accordance with the provision of this Authorization Agreement. 
  
 Paragraph 1—The AUTHORIZED PARTY shall not be entitled to any type of
exclusivity, any assumption of assurance of financial and economic balance, and may not claim the right as to accept new providers of the same service. 
  
 Paragraph 2—The AUTHORIZED PARTY shall not be entitled to the vested right to the maintenance of the conditions in force upon the issue of this Authorization
or the beginning of the activities, and must comply with the new conditions imposed by the law and the regulations. 
  
 Paragraph 3—The rules shall grant sufficient periods of time for the adaptation to these new conditions. 
  
 CLAUSE 3.3—The AUTHORIZED PARTY must maintain free access to emergency public
services as provided for by the regulations. 
  
 CLAUSE 3.4—The
AUTHORIZED PARTY must ensure its user free exercise of his/her right to choose the STFC (Exchanged Fixed Telephony Service) provider to direct Long Distance calls, in compliance with the provisions in the SMP regulation, in particular, in the
ADAPTATION RULE. 
  
 CLAUSE 3.5—The changes in the corporate control
of the AUTHORIZED PARTY shall be subject to analysis by ANATEL for purposes of verification of the conditions indispensable to the issue and maintenance of the authorization, under the terms of the regulations. 
  
 Sole paragraph. The conditions indispensable to the issue and maintenance of the
authorization, among others, are those provided for by the General Authorization Plan of the SMP, in the Article 10, paragraph 2 of the PGO and in Article 133 of the LGT. 
  
 CLAUSE 3.6—The transfer of the Authorization Agreement shall be subject to ANATEL’s approval, in compliance with the
requirements of the paragraph 2 of Article 136 of the LGT. 

 Sole paragraph. The operation period of the Cellular Mobile Service during the effectiveness of the REPLACED
AGREEMENT shall be taken into account for purposes of item I of the Article 98 of the LGT. 
  
 CLAUSE 3.7—The AUTHORIZED PARTY shall freely establish the prices to be charged in the SMP rendering, defining Services Plans with structures, forms, criteria and amounts that shall be reasonable and
undifferentiated, and that may change due to technical features, specific costs and tools offered to users, as defined in the SMP regulation, in particular, in the ADAPTATION RULE. 
  
  
 Chapter IV 
 Coverage Commitments 
  
 CLAUSE 4.1—The coverage commitments, set forth in the REPLACED AGREEMENT, are maintained, including assistance and coverage obligations. 
  
 CLAUSE 4.2—The noncompliance with these commitments subjects the AUTHORIZED PARTY
to sanctions set forth in this Agreement and in the regulations, and may cause the discontinuance of the authorization. 
  
  
 Chapter V 
 Quality of the Service 
  
 CLAUSE 5.1—The adequate quality of the service provided by the AUTHORIZED PARTY is an assumption of this Authorization, considering as such the service which shall meet the regularity, efficiency, security, upgrade, generality
and politeness conditions. 
  
 Paragraph 1—Regularity shall be
characterized by the continuous exploration of the service, fully complying with the provision in the rules issued by ANATEL. 
  
 Paragraph 2—Efficiency shall be characterized by the achievement and preservation of the parameters in this Authorization Agreement and by the assistance to
the service user in the periods set forth in this Authorization Agreement. 
  
 Paragraph 3—Security in the exploration of the service shall be characterized by the confidentiality of data referring to the use of the service by users, as well as by the full preservation of the confidentiality of information
transmitted within the scope of its rendering. 
  
 Paragraph 4—Upgrade
shall be characterized by the modernity of the equipments, facilities and techniques for exploration of the service, including technological advances that shall permanently bring benefits to users, complying with the provisions in this Authorization
Agreement. 
  
 Paragraph 5—Generality shall be characterized with the
undifferentiated rendering of the service to every and any user, and the AUTHORIZED PARTY undertakes to provide the service to whoever requires it, in accordance with the regulation. 

 Paragraph 6—Politeness shall be characterized by the respectful and immediate assistance to all users of the
authorized service, as well as by the compliance with the obligations to promptly and politely inform and serve everyone that, user or not, require from the AUTHORIZED PARTY information, measures or any type of request as provided for by this
Authorization Agreement. 
  
 CLAUSE 5.2—The AUTHORIZED PARTY must
comply with the quality goals set forth in the General Plan of Quality Goals for the SMP. 
  
 Sole paragraph. For the purposes of the provision set forth in the paragraph 5 of Article 1 of the PGMQ – SMP, the publication date of the summary of this Agreement shall be considered as the beginning of
the SMP commercial operation in a location where the rendering of the SMC already takes place. 
  
 CLAUSE 5.3—The exploration of the authorized service may only be interrupted in conformity with the SMP Regulation issued by ANATEL. 
  
  
 Chapter VI 
 Numbering Plan 
  
 CLAUSE 6.1—The AUTHORIZED PARTY undertakes to comply with the Numbering Rules issued by ANATEL, and must ensure the subscriber of the service the portability
of access codes as provided for by the regulation. 
  
  
 Chapter VII 
 Charging of Users

  
 CLAUSE 7.1—The amount, the measuring form and criteria to
charge the services provided must be set forth by the AUTHORIZED PARTY based on the SMP Regulation, complying with clause 3.7 of this Authorization Agreement. 
  

 
 Chapter VIII 
 Rights and Obligations of the Users 
  
 CLAUSE 8.1—Rights and obligations of the users are those set forth in the LGT and in the regulations without prejudice to the rights provided for by Law No. 8,078, dated September 11, 1990, in
the cases ruled by it, or to the ones in the SMP rendering agreements. 
  
  
 Chapter IX 
 Rights and Obligations of
the AUTHORIZED PARTY 
  
 CLAUSE
9.1—Rights and obligations of the AUTHORIZED PARTY are those set forth in the LGT and in the regulations. 
  
 CLAUSE 9.2—In the contracting of services and in the acquisition of equipments and materials linked to the purpose of this Authorization Agreement, the
AUTHORIZED 

 
PARTY undertakes to consider offers from independent suppliers, inclusively national ones, and base its decisions, regarding different offers presented, on
the compliance with objective price criteria, delivery conditions and technical specifications set forth in the pertinent regulation. 
  
 Sole paragraph. In the contracting in question, the procedures of the Rule on Procedures of Contracting of Services and Acquisition of Equipments or Materials by
the Providers of Telecommunications Services are put into practice, approved by ANATEL Resolution No.155, dated August 5, 1999. 
  
  
 Chapter X 
 Obligations and Prerogatives of ANATEL 
  
 CLAUSE 10.1—In addition to the other prerogatives inherent to its function of regulation body and the other obligations arising from this Authorization Agreement, it shall be incumbent upon ANATEL to:

  
 I—observe and supervise the
exploration of the service, aiming at the compliance with the regulation; 
  
 II—control the exploration of the authorized service; 
  
 III—impose penalties set forth in the regulation of the service and, specifically, in this Authorization Agreement;

  
 IV—care for the good quality of the service, receive, analyze and
solve the user’s complaints and claims, making them aware, up to 90 (ninety) days, of the measures taken with a view to the constraint of violations to their rights; 
  
 V—declare the Authorization extinguished in the events set forth in the LGT; 
  
 VI—care for the assurance of interconnection, settling possible loose ends
arising between the AUTHORIZED PARTY and other providers; 
  
 VII—permanently observe the relationship between the AUTHORIZED PARTY and other providers, settling conflicts that may arise; 
  
 VIII—prevent conducts of the AUTHORIZED PARTY contrary to the competition system, complying with the jurisdictions of the Brazilian Administrative Council for
Economic Defense (CADE), the regulation and, in particular, the provision of Clauses 10.2. and 10.3. of this Chapter; 
  
 IX—supervise the service as set forth in this Authorization Agreement; and 
  
 X—collect the charges related to the Brazilian Telecommunications Supervision
Fund (FISTEL), adopting measures provided for by the law. 
  
 CLAUSE
10.2—ANATEL may institute Proceedings for Verification of Noncompliance with Obligations (PADO), aimed at verifying the untruth or the lack of foundation of the conditions declared by the AUTHORIZED PARTY, regarding the non participation in
the control of other companies or regarding other preventive prohibitions of economic concentration, whenever there is evidence of the relevant influence of the AUTHORIZED PARTY, its affiliated companies, subsidiaries or parent companies on the
legal entity which provides the SMP, under the terms of the Regulation for Verification of Control and Transfer of Control in Companies that Provide Telecommunications Services, approved by ANATEL Resolution No. 101, dated February 4,
1999. 

 Sole paragraph. After the procedure set forth in this Clause, the proof of existence of any situation that
evidences untruth or lack of foundation of the conditions declared by the AUTHORIZED PARTY shall cancel this Authorization, under the terms of Article 139 of the LGT. 
  
 CLAUSE 10.3—ANATEL may also institute administrative proceedings aimed at verifying violation against the economic policy
provided for by Law No. 8,884/94. 
  
  
 Chapter XI 
 Supervision System 
  
 CLAUSE 11.1—ANATEL shall conduct the supervision of the services in order to
ensure the compliance with the commitments in this Authorization Agreement. 
  
 Paragraph 1—The supervision to be conducted by ANATEL shall include the inspection and verification of the activities, equipments and facilities of the AUTHORIZED PARTY, implying wide access to all data and information of the
AUTHORIZED PARTY or third parties. 
  
 Paragraph 2—The information
collected during the supervision shall be published in the Library, except the information that, by the AUTHORIZED PARTY’s request, shall be considered by ANATEL as confidential. 
  
 Paragraph 3—The information that shall be considered as confidential under the terms of the previous paragraph shall only be
used in the procedures linked to this Authorization Agreement, and ANATEL and those indicated by it are responsible for any disclosure, wide or limited ones, of such information out of this scope of use. 
  
 CLAUSE 11.2—The AUTHORIZED PARTY, by means of an appointed representative, may
verify all and any supervision activity of ANATEL, and may not prevent or hinder the supervision, under penalty of incurring punishments provided for by the regulation. 
  
  
 Chapter XII 
 Telecommunications Networks and Access to Visiting Users 
  
 CLAUSE 12.1—With regard to the implementation and operation of Telecommunications Networks aimed at giving support to the rendering of the SMP, the AUTHORIZED
PARTY must comply with the provision in the regulations, in particular, in the provisions of the Rule of Telecommunications Services, issued by the Resolution No. 73, dated November 25, 1998; in the General Rule of Interconnection,
approved by the Resolution No. 40, dated July 23, 1998; and in the SMP regulation. 
  
 Sole paragraph. The change in the technology standards, made by the AUTHORIZED PARTY, may not impose high charges on users in a unilateral and arbitrary manner, inclusively in relation to the existing
assistance conditions to visiting users. 

 CLAUSE 12.2—The remuneration for the use of networks among the AUTHORIZED PARTY and the other providers of
telecommunications services shall comply with the provision of Article 152 of the LGT and in the SMP regulation, in particular in the ADAPTATION RULE. 
  
 Sole paragraph. The document set forth in the item 7 of the ADAPTATION RULE shall compose Annex I of this Agreement. 

 
  
 Chapter XIII 
 Sanctions 
  
 CLAUSE 13.1—The AUTHORIZED PARTY is subject to ANATEL’s supervision, complying with the pertinent legal and regulatory provisions, and it must, when
required, account for them as provided for by the SMP regulation, enabling free access to its technical resources and accounting records. 
  
 CLAUSE 13.2—The noncompliance with the conditions or commitments made linked to the authorization shall subject the AUTHORIZED PARTY to the sanctions of
warning, fine, temporary interruption or forfeiture, as provided for by the SMP regulation. 
  
  
 Chapter XIV 
 Cancellation of the Authorization 
  
 CLAUSE 14.1—The
Authorization shall be considered cancelled by annulment, forfeiture, deterioration, relinquishment or cancellation, as provided for by the Articles 138 to 144 of the LGT and in conformity with the procedures in the regulation. 
  
 Sole paragraph. The statement of cancellation shall not suppress the imposition of the
appropriate penalties, in conformity with the provision of the Authorization Agreement, for the violations incurred in by the AUTHORIZED PARTY. 
  
  
 Chapter XV 
 Legal System and Applicable Documents 
  
 CLAUSE 15.1—This Authorization is ruled, without prejudice to the other rules included in Brazilian system of laws, by LGT and the regulations arising therefrom. 
  
 CLAUSE 15.2—In the exploration of the service authorized herein, ANATEL’s
regulation must be complied with, as an integral part of this Authorization Term, in particular, the documents referred to in the SMP Regulation. 
  
 CLAUSE 15.4—In the interpretation of the rules and provisions in this Authorization Agreement, in addition to the documents referred to in this Chapter, the
general rules of hermeneutics and the rules and principles in the LGT must be taken into account. 

 Chapter XVI 
 Temporary Provisions 
  
 CLAUSE
16.1—Until the ratification or celebration of the VU-M, pursuant to the option of the SMP provider, both the remuneration amount of the network and the criteria for the processing and passing on of amounts among the providers of the
Cellular Mobile Service and Exchanged Fixed Telephony Service, must be maintained. 
  
  

Chapter XVII 
 Jurisdiction

  
 CLAUSE 17.1—The court venue of the Judicial Section of the
Federal Courts of Brasília, in the Federal District, shall be chosen for the settlement of issues arising from this Authorization Agreement. 
  
  
 Chapter XVIII 
 Final Provisions 
  
 CLAUSE 18.1—This Authorization Agreement shall become effective as from the publication of its summary in the Federal Official Gazette. 
  
 CLAUSE 18.2—Except for the provisions expressly stated in this Agreement, the other provisions of the REPLACED AGREEMENT, referred to in the paragraph 2 of
the Clause 1.1, shall become ineffective. 
  
 In witness whereof, the parties,
having fully agreed upon the provisions and conditions hereof, sign this agreement in three (3) copies of equal tenor and form in the presence of the undersigned witnesses, so that all its legal effects are produced. 

 Brasília, December 10, 2002. 
  
 By ANATEL: 
  
  
  

 LUIZ GUILHERME SCHYMURA DE OLIVEIRA 
 Chairman of the Board

  
  
  

 LUIZ TITO CERASOLI 
 Board member 
  
  
  
 By the AUTHORIZED PARTY: 
  
  
  

 PAULO CESAR PEREIRA TEIXEIRA 
 Executive Vice President 
  
  
  

 JOSÉ CARLOS DE LA
ROSA GUARDIOLA 
 Vice President for Planning and Coordination 
  
  
  
 Witnesses: 
  
  
  

 JARBAS JOSÉ VALENTE 
 4.346/D CREA-DF 
  
  
  

 BRUNO DE CARVALHO RAMOS 
 5.060.107.391/D CREA-SP 

 ANNEX I 
 OPTION STATEMENT 
  
 In conformity with the
provision in the item 7 of the ADAPTATION RULE, Celular CRT S.A., Corporate Taxpayer’s ID (CNPJ) # 02.603.554/0001-09, herein represented by its Executive Vice President, PAULO CESAR PEREIRA TEIXEIRA, a Brazilian
citizen, married, engineer, identity card # 301.540.175-9 SSP/RS, opts for the submission to the item 5 and its subitems of the Remuneration Criteria Rule for the Use of Networks of Providers of Personal Mobile Service—SMP, approved by the
Resolutions # 319, as of September 27, 2002, requesting the ratification of the TU-M, maximum amount of which shall be the maximum amount of the initial VU-M of its Rendering Area. 
  
  
 Brasília, December 10, 2002.

  
  
  

 PAULO CESAR PEREIRA TEIXEIRA 
 Executive Vice PresidentEmployment Agreement, dated January 10, 2006 - Peter J. Sahd

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  
 AGREEMENT made this 10th day of January, 2006, by and between SUSQUEHANNA BANCSHARES, INC., a Pennsylvania corporation (the “Company”), and PETER J.
SAHD, an adult individual whose principal residence is at 44 Field Lane, Lititz, PA 17543 (the “Employee”), on the other side. 
  
 Background 
  
 The Company desires to induce the Employee to remain in its employment, and the Employee hereby agrees to accept continuation of employment with the
Company on the terms and subject to the conditions hereinafter set forth. 
  
 1. Position. The Company hereby agrees to continue the Employee’s employment, and the Employee hereby agrees to continue employment with the Company, as Senior Vice President and Group Executive.

  
 2. Duties. 
  
 2.1. The Employee agrees to assume such duties and responsibilities as may
be consistent with the position of Senior Vice President and Group Executive, and as may be assigned to the Employee by the Board of Directors, the President or the Chief Executive Officer of the Company or by the by-laws of the Company, from time
to time. No change in the duties of the Employee shall in any way diminish the compensation payable to him or her pursuant to the provisions of paragraph 4 hereof. 
  
 2.2. The Employee agrees to devote his or her full time, skill, attention and energies, and his or her best efforts to the
performance of his or her duties under this Agreement consistent with practices and policies established from time to time by the Company. The Employee agrees, in addition to the covenants concerning Non-Competition contained in Paragraph 14, that
he or she will not engage in any other business activity (including, without limitation, participation by the Employee on any unaffiliated profit or non-profit board of directors) except: (i) upon the prior written notice to and consent of the
Company’s Board of Directors, or (ii) solely as an investor in real or personal property, the management of which shall not detract from the performance of his or her duties hereunder; provided, however, that the engagement by the Employee
in any such business activity shall at all times be in conformity with the Company’s Code of Conduct, as the same may be amended or supplemented from time to time. Notwithstanding anything herein to the contrary, the Employee shall terminate
any such activity upon reasonable request by the Company. 
  
 3.
Period of Employment. Unless terminated earlier pursuant to subparagraph 7.3, 10.1, 10.2, 10.3, 10.5 or 10.7 hereof, the period of employment (the “Period of Employment”) shall commence on the date of this Agreement and end on the
second December 31 next following the date of this Agreement (the “Termination Date”). If written election not to renew by either party is not received by the other party by (a) November 1 of the year of the effective date
of this Agreement, or (b) November 1 any subsequent year, if this Agreement has previously been extended pursuant to this paragraph 3, then the Period of Employment will be automatically extended to the next anniversary of the Termination
Date. 

 4. Compensation. For all services rendered by the Employee under this Agreement, the Company shall
pay, or shall cause to pay, to the Employee compensation as provided below: 
  
 4.1. Base Salary. Commencing on the date hereof and continuing for the next twelve (12) months of employment hereunder, the Company shall pay the Employee, in equal monthly installments, a minimum base
salary at the rate of $188,300.00 per year. In connection with the annual review required by subparagraph 4.3 hereof, the Employee’s base salary shall be reviewed and in light of such review may be increased (but not decreased), taking into
account any change in the Employee’s responsibilities, performance of the Employee and other pertinent factors. Payment of any increase in the Employee’s base salary (if any) shall commence no later than July 1st of the year in which the increase is granted. 
  
 4.2. Bonus. The Company may but shall not be required to pay to the Employee annual bonus compensation in such amount
as may be determined by the appropriate Board of Directors or its designee within guidelines established by the Company. Such bonus shall not exceed the amount of the Employee’s base compensation. 
  
 4.3. Annual Review. The determination of compensation payable by the
Company hereunder shall be made by the Compensation Committee of the Company, or its nominee, which shall perform an annual review of this Agreement, the Employee’s performance with the Company, and compensation payable hereunder. The results
of such review, including recommendation as to salary adjustment and bonus, shall be reported to the Company and shall be memorialized in the minutes of the meetings of the Company’s Board of Directors or held in a confidential file by the
Company’s Human Resources Department. 
  
 5. Employee
Expenses. Subject to such general employee expense account policies as the Company may from time to time adopt, the Company will pay or reimburse the Employee upon presentation of vouchers or invoices for reasonable expenses incurred by the
Employee in the performance of his or her duties in carrying out the terms and provisions of this Agreement, including, without limitation, expenses for such items as entertainment, travel, meals, hotel and similar items. In the event that any
reimbursed expenses are disallowed by the Internal Revenue Service as deductions to the Company, the Employee shall retain such reimbursed expense amounts which the Employee shall treat and report as additional compensation and which the Company
shall treat as deductible salary expense. 
  
 The Bank also shall
provide the Employee during his or her employment under this Agreement with the full time use of a car selected by the Employee and comparable to the car available at present. Such car shall be used by the Employee in accordance with any and all
general car policy(ies) as the Company may from time to time adopt. Such car shall be selected, maintained and replaced in accordance with the Company’s general policy on cars for employees having need of a car for such use. 
  

 -2- 

 6. Vacations. The Employee will be entitled to paid vacation annually as specified under the
Company’s Vacation Policy, to be taken at times reasonably convenient to the Company. 
  
 7. Benefits. 
  
 7.1. The
Employee shall be entitled to group term life insurance insuring the Employee’s life during the term of employment, disability insurance coverage, and accidental death and dismemberment benefits, including death benefit, in such amounts and in
such coverage as shall be consistent with the insurance coverage programs available to other salaried employees of the Company, as the same may change from time to time. The Employee shall designate the beneficiary of such policy and benefits.

  
 7.2. The Employee shall be entitled to major medical and
health insurance coverage for the Employee and his or her immediate family on such terms, in such amounts and in such coverage as shall be consistent with the insurance coverage programs available to other salaried employees of the Company
generally, as the same may change from time to time. 
  
 7.3. If
the Employee becomes and continues to be permanently disabled, such disability to be defined as the Employee’s inability, as a result of illness, incapacity, disease or calamity to perform a substantial part of his or her reasonable duties as
set forth herein, with no reasonable expectation that the Employee will be able to resume the performance of his or her reasonable duties, the Company shall continue to pay, or shall cause the Company to pay, to the Employee the base salary set
forth in paragraph 4, above, and, except as provided in the next sentence of this paragraph, all other benefits as set forth in this Agreement for a period of no less than six (6) months following the commencement of such permanent disability.
Any provision of this Agreement notwithstanding, the Employee shall be conclusively deemed to be permanently disabled if he or she is physically or mentally unable to perform his or her duties or a substantial part thereof for a period of six
consecutive months. The Employee shall have no right to earn any bonus compensation during such period of time. Thereafter, if such permanent disability continues, this Agreement shall terminate and the Company (i) shall have no further
obligation to the Employee under this Agreement other than in connection with such benefits as may be available under such disability insurance programs, and (ii) shall not be obligated to provide or pay for any benefits under the programs or
policies listed in subparagraphs 7.1 and 7.2 above, except as provided in subparagraph 10.11. 
  
 7.4. To the extent such benefits are not specifically described or duplicated hereinabove in this paragraph 7, the Employee shall also be entitled to participate in any and all thrift, profit sharing, benefit and
pension and similar plans, now or hereafter maintained by the Company and offered by the Company to its salaried, non-union employees generally; provided, however, that if such participation in any such plan is terminated by the Company’s Board
of Directors, or any committee thereof, then the Employee shall have no automatic entitlement to participate in the same. 
  
 8. Confidential Information. During the term of employment, and at any time thereafter, the Employee shall not, without the consent of a senior
officer of the Company, 

  

 -3- 

 
disclose to any person, firm or corporation (except, during the term of his or her employment, to the extent necessary to perform his or her duties
hereunder) any customer lists, trade secrets, reports, correspondence, mailing lists, manuals, price lists, employee lists, prospective employee lists, letters, records or any other confidential information relating to the business of the Company or
any Affiliate of the Company and shall not, without the consent of a senior officer of the Company, deliver any oral address or speech or publish, or knowingly permit to be published, any written matter in any way relating to confidential
information regarding the business of the Company or any Affiliate of the Company. 
  
 9. Property Rights. The Employee agrees that all literary work, copyrightable material or other proprietary information or materials developed by the Employee during the term of this Agreement and relating to,
or capable of being used or adopted for use in, the business of the Company shall inure to and be the property of the Company and must be promptly disclosed to the Company. Both during employment by the Company, and thereafter, the Employee shall,
at the expense of the Company, execute such documents and do such things as the Company reasonably may request to enable the Company or their nominee (i) to apply for copyright or equivalent protection in the United States, Canada and elsewhere
for any literary work hereinabove referred in this paragraph, or (ii) to be vested with any such copyright protection in the United States, Canada and elsewhere. 
  
 10. Termination. 
  
 10.1. Effect of Non-Renewal. If the Employee receives written election not to renew from the Company in accordance with paragraph 3 at least sixty
(60) days prior to the beginning of the calendar year containing the Termination Date (or, if applicable, any subsequent anniversary of the Termination Date), then the Agreement shall expire upon the Termination Date or such other date as the
parties may agree to in writing. After receipt of written election not to renew from the Company, the Employee may elect to treat such failure to renew as notice of termination by delivering written notice to the Company within thirty
(30) calendar days thereafter. This election to treat a failure to renew as a notice of termination shall not affect the Period of Employment unless the parties agree otherwise in writing. Unless the parties agree otherwise in writing, the
effective date of the notice of termination shall be the date of delivery of such election to the Company. Upon the effective date of a notice of termination under this subparagraph 10.1, the Company may request the Employee to, and if requested,
the Employee shall continue to perform his or her duties as set forth in this Agreement for a period not to exceed three (3) months from the effective date of notice of termination. In addition to such period, the Employee shall be reasonably
available for a period of nine (9) additional months for advice and consultation as requested by the Company. The Employee shall be entitled to receive all salary and benefits to which the Employee is entitled under this Agreement until the
applicable Termination Date; provided, however, that in the event the Employee obtains other employment during the period prior to the Termination Date, then the amount of base salary due hereunder shall be decreased by the salary and benefits
received by the Employee attributable to other employment during such period. However, if the Company gives the Employee a written election not to renew and simultaneously or subsequently terminates the Employee for Cause in accordance with
subparagraph 10.3, the Employee’s termination shall be governed by subparagraphs 10.3 and 10.4, and not by this subparagraph. 
  

 -4- 

 10.2. Termination by the Employee. This Agreement may be terminated upon action of the Employee by
not less than two (2) months notice to the Company. The Employee agrees in the event of termination under this subparagraph to cooperate, advise and consult the Company as needed to assist in the transition of the Employee’s replacement
during such two (2) month period and thereafter for a period of four (4) months during reasonable times and under reasonable circumstances. 
  
 10.3. Termination by the Company for Cause. Nothing in this Agreement shall be construed to prevent immediate termination by the Company of the
Employee’s employment under this Agreement for Cause, as defined in this Agreement. 
  
 10.4. Effect of Termination by Employee or Termination by the Company for Cause. If this Agreement is terminated under subparagraphs 10.2 or 10.3 hereof, the Company shall be obligated to pay the Employee his
or her base salary to the date of such termination, plus any accrued bonus. The Bank or the Company shall not be obligated to provide or pay for any further benefits under the programs or policies listed in paragraph 7 above except to the extent
that any of the benefits available under such programs or policies survive termination of the Employee’s employment by their express terms, or as required by law (e.g., COBRA Benefits), in which event they shall continue only as required by
their express terms or as required by law, whichever is applicable. The qualifying event for determining COBRA Benefits shall be the date on which the Employee terminates employment or suffers a reduction of hours that would otherwise cause him to
lose coverage under the applicable group health plan but for the extension of benefits hereunder. 
  
 10.5. Termination by the Company Without Cause or by the Employee Due to Adverse Change. In addition to termination under subparagraphs 10.1, 10.2
and 10.3 above, the Employee’s employment under this Agreement may be terminated by the Company at any time without cause during the term provided in this Employment Agreement or by the Employee as follows: (i) within twelve
(12) months following the effective date of this Agreement if there occurs an Adverse Change in the Employee’s Circumstances within such twelve month period; or (ii) within twelve (12) months following a Change in Control if
there occurs an Adverse Change in the Employee’s Circumstances within such twelve (12) month period. In the event of and in consideration for all amounts and benefits payable hereunder by reason of a Change in Control, the Employee
acknowledges that the provisions of paragraph 14 hereof shall extend to any offices or facilities of any business that becomes an affiliate of or successor to the Company on account of such Change in Control. 
  
 In any such event of termination under this subparagraph 10.5, the Company
shall pay to the Employee in a lump sum an amount equal to the greater of the Employee’s then current monthly salary rate or the rate in effect prior to any reduction which led to the termination times the greater of (A) the number of
months otherwise remaining in the Period of Employment set forth in paragraph 3, or (B) 12 months. The Company shall also provide the Employee with benefits in accordance with subparagraph 10.11 hereof. 
  

 -5- 

 10.6. (a) Anything in this Agreement to the contrary notwithstanding, in the event that it shall be
determined that any payment or distribution by the Company to or for the benefit of the Employee, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, would constitute an “excess
parachute payment” within the meaning of §280G of the Internal Revenue Code of 1986, as amended (the “Code”) (each such payment, a “Parachute Payment”) and would result in the imposition on the Employee of an excise tax
under Code §4999, then, in addition to any other benefits to which the Employee is entitled under this Agreement or otherwise, the Employee shall be paid an amount in cash equal to the sum of the excise taxes payable by the Employee by reason
of receiving Parachute Payments plus the amount necessary to place the Employee in the same after-tax position (taking into account any and all applicable federal, state and local excise, income or other taxes at the highest possible applicable
rates on such Parachute Payments (including, without limitation, any payments under this subparagraph 10.6(a)) as if no excise taxes had been imposed with respect to Parachute Payments (the “Parachute Gross-up”). Any Parachute Gross-up
otherwise required by this subparagraph 10.6(a) shall not be made later than the time of the corresponding payment or benefit hereunder giving rise to the underlying Code §4999 excise tax (to the extent such determination has been made prior to
such time), even if the payment of the excise tax is not required under the Code until a later time. Any Parachute Gross-up otherwise required under this subparagraph 10.6(a) shall be made whether or not there is a Change in Control, whether or not
payments or benefits are payable under this Agreement, whether or not the payments or benefits giving rise to the Parachute Gross-up are made in respect of a Change in Control and whether or not the Employee’s employment with the Employer shall
have been terminated. 
  
 (b) All determinations to be made under
this subparagraph 10.6 shall be made by an independent public accounting firm chosen by the Company (the “Accounting Firm”). 
  
 (c) In the event the Internal Revenue Service notifies the Employee of an inquiry with respect to the applicability of Code §280G or Code §4999
to any payment by the Company, or assessment of tax under Code §4999 with respect to any payment by the Company, the Employee shall provide notice to the Company of such inquiry or assessment within 10 days, and shall take no action with
respect to such inquiry or assessment until the Company has responded thereto (provided such response is timely with respect to the inquiry or assessment). The Company shall have the right to appoint an attorney or accountant to represent the
Employee with respect to such inquiry or assessment, and the Employee shall fully cooperate with such representative as a condition of receiving a Parachute Gross-up with respect to such inquiry or assessment. 
  
 (d) All of the fees and expenses of the Accounting Firm in performing the
determinations referred to in subparagraphs (a) and (b) above, or of the representative appointed pursuant to subparagraph (c) above, shall be borne solely by the Company. 
  
 (e) Notwithstanding the foregoing in this subparagraph 10.6, if the imposition of a Code §4999 excise tax could be
avoided by a reduction of the payments due to the Employee under this paragraph 10 (determined before application of subparagraph 10.6(a)) by an amount of 10% or less, then the total of all such payments will be reduced to an amount one dollar
($1.00) below the amount that would cause a Code §4999 excise tax to be imposed, and subparagraph 10.6(a) will not apply. 
  

 -6- 

 10.7. Notwithstanding anything to the contrary set forth above, this Agreement shall terminate
immediately upon the close of business on the last business day in the calendar year in which the Employee attains the age of 65. Upon such termination, the Employee shall be entitled, to the extent he or she is covered by such at the time, to all
retirement, pension, insurance and other benefits available to the Company’s employees. 
  
 10.8. Upon termination of employment hereunder, the Employee shall not malign, criticize or otherwise disparage the Company or its officers, directors or Affiliates. 
  
 10.9. Any claims for benefits under paragraph 10 of the Agreement shall be
governed by the claims procedures in the Susquehanna Bancshares, Inc. Key Employee Severance Pay Plan, as amended from time to time. However, the severance benefit provisions of this Agreement shall govern in lieu of the severance provisions of such
Plan. Except as specifically provided in this Agreement, the benefits provided under this Agreement in the case of a termination shall be in lieu of those provided by the Company and its Affiliates under any other severance plans. 
  
 10.10. Prior to receiving any lump sum payments to which the Employee is
entitled under this Agreement, the Employee agrees to sign an acknowledgment of receipt and release of claims in a form acceptable to the Company. 
  
 10.11. If the Employee ceases to be an active employee of the Company or any Affiliate, but the Employee is still entitled to receive salary and benefits
under one or more provisions of this Agreement other than this subparagraph, the Employee will receive the following benefits, but only to the extent the Employee is entitled under such other provisions of this Agreement: applicable salary, COBRA
Benefits, life insurance, and any payments due under any non-qualified pension or savings plans under which the Employee already participates. 
  
 11. Records. Upon the termination of employment hereunder, the Employee shall deliver to the Company all correspondence, reports, customer lists,
office keys, manuals, advertising brochures, sample contracts, price lists, employee lists, prospective employee lists, mailing lists, letters, records and any and all other documents pertaining to or containing information relative to the business
of the Company, and the Employee shall not remove any of such records either during the course of employment or upon the termination thereof. 
  
 The Employee understands that in the event of a violation of the provisions of this paragraph 11, the Company, shall have the right to seek injunctive
relief, in addition to any other existing rights provided herein or by operation of law, without the requirement of posting bond. The remedies provided in this paragraph 11 shall be in addition to any legal or equitable remedies existing between the
Employee and the Company, and shall not be construed as a limitation upon, or as alternative or in lieu of, such remedies. 
  

 -7- 

 12. Prohibited Assignment. The Employee shall have no right to exchange, convert, encumber or
dispose of the rights to receive the benefits or payments under this Agreement, which payments, benefits and rights thereto are expressly declared to be non-assignable and non-transferable. 
  
 13. Indemnification. To the extent permitted by law, the Company shall
indemnify the Employee and hold him or her harmless from all liability and claims, whether meritorious or not, including the cost of defense thereof (including reasonable attorneys’ fees) which have arisen or accrued or which hereafter may
arise or accrue and are based upon any act or omission which the Employee has taken or committed or hereafter may take or commit on behalf of or in connection with the Company in his or her official capacity, so long as the following conditions are
met with respect to such claim or liability: (a) if such action was taken in the exercise of reasonable business judgment and was taken in an area within the scope of responsibility of the Employee, or (b) if not within the scope of the
Employee’s responsibility, (i) at the time of such act or omission the Board of Directors of the Company had knowledge of the facts or circumstances pursuant to which such act was taken or such omission occurred and (ii) no written
objection to such act or omission was duly made by the Board. 
  
 Actions taken by the Employee which are covered by this Agreement specifically include (by way of illustration), but are not limited to, (a) the payment of any salary, bonus or other compensation to any officer, director, or employee,
(b) the reimbursement or payment of any expenses incurred by any such officer, director or employee, (c) the making or retention of any investments (including, without limitation, loans) by the Company, or (d) injury claims against
the Company or the Employee based on negligence or other alleged tortious actions and which arise in connection with the conduct of the Company’s business. 
  

The Employee shall indemnify the Company and hold it harmless from all liability and claims, whether meritorious or not, including the cost of the
defense thereof (including reasonable attorneys’ fees) which have arisen or accrued or which hereafter may arise or accrue and are based upon acts taken without the consent or approval of the Board of Directors of the Company and which
represent the Employee’s deliberate malfeasance or gross negligence. 
  
 14. Non-Competition. During the Period of Employment hereunder, and in the event the Employee’s employment is terminated pursuant to subparagraphs 10.2 or 10.3 hereof, then for the later of (a) one
year thereafter or (b) the period during which compensation or benefits are being provided pursuant to this Agreement after its termination, the Employee will not directly for himself or herself or any third party, become engaged in any
business or activity which is directly in competition with any services or financial products sold by, or any business or activity engaged in by, the Company, including, without limitation, any business or activity engaged in by any federally or
state chartered bank, savings bank, savings and loan association, trust company and/or credit union, and/or any services or financial products sold by such entities, including, without limitation, the taking and accepting of deposits, the provision
of trust services, the making of loans and/or the extension of credit, brokering loans and/or leases and the provision of insurance and investment services, within a 25 mile radius of any office or facility of the Company or any of their Affiliates.
This provision shall not restrict the Employee from owning or investing in publicly traded securities of financial institutions, so long as his or her aggregate holdings in any financial institution do not exceed ten percent (10%) of the
outstanding capital stock of such institution. 
  

 -8- 

 During the Period of Employment hereunder, and for a period of two years thereafter no matter the reason
of termination, the Employee will not solicit any person who was a customer of the Company during the period of the Employee’s employment hereunder, or solicit potential customers who are or were identified through leads developed during the
course of employment with the Company, or otherwise divert or attempt to divert any existing business of the Company within any area of 100 miles of any office or facility of the Company or any of their Affiliates. 
  
 The Employee will not, either during the Period of Employment hereunder or
for a period of two years thereafter directly for himself or any third party, solicit, induce, recruit or cause another person in the employment of the Company or any of their Affiliates to terminate his or her employment for the purposes of
joining, associating, or becoming employed with any business or activity which is in competition with any services or financial products sold, or any business or activity engaged in, by Company. 
  
 The Employee understands that in the event of a violation of any provision of
this Agreement, the Company shall have the right to seek injunctive relief, in addition to any other existing rights provided in this Agreement or by operation of law, without the requirement of posting bond. The remedies provided in this paragraph
shall be in addition to any legal or equitable remedies existing at law or provided for in any other agreement between the Employee or the Company, and shall not be construed as a limitation upon, or as an alternative or in lieu of, any such
remedies. If any provisions of this paragraph shall be determined by a court of competent jurisdiction to be unenforceable in part by reason of it being too great a period of time or covering too great a geographical area, it shall be in full force
and effect as to that period of time or geographical area determined to be reasonable by the court. 
  
 15. Survival. Notwithstanding anything to the contrary in this Agreement, the parties agree that the Employee’s obligations under paragraphs 8
and 9 of this Agreement will continue despite the expiration of the term of this Agreement or its termination. 
  
 16. Preemptive Considerations. Notwithstanding anything to the contrary set forth herein: 
  
 16.1. If the Employee is suspended and/or temporarily prohibited from
participating in the conduct of the Company’s affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(3) and (g)(1)) or any amendments or supplements thereto, the Company’s
obligations under this Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Company may in its discretion (i) pay the Employee all or part of the
compensation withheld while this Agreement’s obligations were suspended, and (ii) reinstate (in whole or in part) any of its obligations which were suspended. 
  
 16.2. If the Employee is removed and/or permanently prohibited from participating in the conduct of the Company’s
affairs by an order issued under Section 8(e)(4) or 

  

 -9- 

 
(g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818 (e)(4) or (g)(1)) or any amendments or supplements thereto, all obligations of the Company under
the contract shall terminate as of the effective date of the order, but vested rights of the parties shall not be affected. 
  
 16.3. If the Company is in default (as defined in Section 3(x)(1) of the Federal Deposit Insurance Act), all obligations under this Agreement shall
terminate as of the date of default, but this subparagraph 16.3 shall not affect any vested rights of the parties. 
  
 17. Definitions. For purposes of this Agreement: 
  
 The term “Adverse Change in the Employee’s Circumstances” shall include and be limited to (a) a significant change in the nature or
scope of the Employee’s duties as set forth in the first sentence of paragraph 2 hereof such that the Employee has been reduced to a position of materially lesser authority, status or responsibility (provided, however, for purposes of this
subparagraph, in circumstances not involving a Change in Control, so long as the Employee remains a senior officer (which shall mean and include any officer position with the Company above the position of vice president), an Adverse Change in the
Employee’s Circumstances shall not be deemed to have occurred), or the time required to be spent by the Employee 60 miles or more beyond the Company’s geographic market area shall be increased without the Employee’s consent by more
than twenty percent (20%), as compared to the average of the two (2) preceding years, or (b) a reduction in the Employee’s base compensation or (c) any other material and willful breach by the Company of any other provision of
this Agreement. 
  
 The term “Affiliate” shall mean with
respect to the Company, persons or entities controlling, controlled by or under common control with the Company. 
  
 The term “Board” shall mean the board of directors of the Company. 
  
 The term “Cause” shall mean any of the following: (a) the Employee’s personal dishonesty; (b) the
Employee’s incompetence; (c) the Employee’s willful misconduct; (d) the Employee’s breach of fiduciary duty involving personal profit; (e) the Employee’s intentional failure to perform stated duties; (f) the
Employee’s willful violation of any law, rule or regulation (other than traffic violations or similar offenses); (g) the issuance of a final cease-and-desist order by a state or federal agency having jurisdiction over the Company or any
entity which controls the Company to the extent such cease-and-desist order requires the termination of the Employee; or (h) a material breach by the Employee of any provision of this Agreement. 
  
 The term “Change in Control” shall mean the first to occur, after
the date hereof, of any of the following: 
  
 (a)
if any Person is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any
securities acquired directly from the Company or its subsidiaries) representing 25% or more of either the then outstanding shares of stock of the Company or the combined voting power of the Company’s then outstanding securities; 
  

 -10- 

 (b) if during any period of 24 consecutive months during the existence of this Agreement
commencing on or after the date hereof, the individuals who, at the beginning of such period, constitute the Board (the “Incumbent Directors”) cease for any reason other than death to constitute at least a majority thereof; provided that a
director who was not a director at the beginning of such 24-month period shall be deemed to have satisfied such 24-month requirement (and be an Incumbent Director) if such director was elected by, or on the recommendation of or with the approval of,
at least two-thirds of the directors who then qualified as Incumbent Directors either actually (because they were directors at the beginning of such 24-month period) or by prior operation of this clause (b); 
  
 (c) the consummation of a merger or consolidation of the
Company with any other corporation other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 60% of the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding
immediately after such merger or consolidation, or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the beneficial owner, as defined in clause (a),
directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its subsidiaries) representing 40% or more of either the then outstanding
shares of stock of the Company or the combined voting power of the Company’s then outstanding securities; or 
  
 (d) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company, or there is consummated an
agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 60% of the
combined voting power of the voting securities of which are owned by Persons in substantially the same proportion as their ownership of the Company immediately prior to such sale. 
  
 Upon the occurrence of a Change in Control, no subsequent event or condition shall constitute a Change in
Control for purposes of this Agreement, with the result that there can be no more than one Change in Control hereunder. 
  
 The term “Company” shall mean the Company as hereinbefore defined or any entity succeeding to substantially all of the assets and business of
the Company. 
  
 The term “COBRA Benefit” shall refer to
the right to continue group health insurance benefits under sections 601-607 of the federal Employee Retirement Income Security Act, as amended, (29 U.S.C. part 6) Act and regulations promulgated thereunder. 
  

 -11- 

 The term “Period of Employment” shall have the meaning described in paragraph 3. 
  
 The term “Person” shall have the meaning ascribed thereto by
Section 3(a)(9) of the Securities Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof (except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any of its subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, (iv) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportion as their ownership of stock of the Company, or (v)such Employee or any “group” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act) which
includes the Employee). 
  
 The term “Termination Date”
shall have the meaning described in paragraph 3. 
  
 18.
Miscellaneous. 
  
 18.1. Assignment. This Agreement
(including, without limitation, paragraph 14 hereof relating to non-competition) shall be binding upon the parties hereto, the heirs and legal representatives of the Employee and the successors and assigns of the Company. 
  
 18.2. Notices. Any notice required, permitted or intended to be given
under this Agreement shall be in writing and shall be deemed to have been given only if delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid to the appropriate address shown below, or such revised
address as is delivered to the other party by the same means; except as provided in subparagraph 10.3 hereinabove with regard to constructive notice. 
  

			
	(a)	  	Notices to the Company or to shall be sent to:
	 	  	Susquehanna Bancshares
	 	  	Attn. Director of Human Resources
	 	  	26 North Cedar Street
	 	  	P.O. Box 1000
	 	  	Lititz, PA 17543-7000
		
	(b)	  	Notices to the Employee shall be sent to:
	 	  	Peter J. Sahd
	 	  	44 Field Lane
	 	  	Lititz, PA 17543

  
 18.3. Entire
Agreement. This Agreement constitutes the entire agreement between the parties in connection with the subject matter hereof, supersedes any and all prior agreements or understandings between the parties and may only be changed by agreement in
writing between the parties. 
  
 18.4. Construction. This
Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of Pennsylvania. 
  

 -12- 

 18.5. Paragraph Headings. The paragraph headings herein have been inserted for convenience of
reference only and shall in no way modify or restrict any of the terms or provisions hereof. 
  
 IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed this Agreement the day and year first above written. 
  

					
	 	 	SUSQUEHANNA BANCSHARES, INC.
			
	 	 	By:	 	 /s/ EDWARD BALDERSTON, JR.

	 	 	Name:	 	Edward Balderston, Jr.
	 	 	Title:	 	 Executive Vice President &
 Chief Administrative
Officer

		
	Witness:	 	EMPLOYEE
		
	 /s/ GREGORY A. DUNCAN

	 	 /s/ PETER J.
SAHD                                      
                                   (Seal)

	Name: Gregory A. Duncan	 	Peter J. Sahd

  

 -13-

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