Document:

Employment Agreement

 Exhibit 10.17 
 EMPLOYMENT AGREEMENT 
 Effective January 1, 2009 
 THIS EMPLOYMENT AGREEMENT (this “Agreement”) made as of this 1st day of January, 2009 (the “Effective Date”), by and between
SUSQUEHANNA BANCSHARES, INC., a Pennsylvania corporation (the “Company”), and Joseph R. Lizza, an adult individual whose principal residence is at 8 Pittenger Court, Millstone Twp., NJ 08535 (the “Employee”), on the
other side. 
 Background 
 WHEREAS, 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; and 
 WHEREAS, in consideration of the Employee’s valuable services, the Company has agreed to increase the base salary to be paid to the Employee
to a rate of $300,000 per year; and 
 WHEREAS, this Agreement replaces and supersedes all previous employment agreements between the
Employee and the Company or any Affiliate. 
 NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual promises and
covenants herein contained, and for other good and valuable consideration, the Parties, intending to be legally bound, agree as follows: 
 1. Position. The Company hereby agrees to continue the Employee’s employment and the Employee hereby agrees to continue employment with the Company, as Managing Director. 
 2. Duties. 
 2.1 The
Employee agrees to assume such duties and responsibilities as may be consistent with the position of the Managing Director and as may be assigned to the Employee by the Management 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 10, that he or she shall 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: (a) upon the prior
written notice to and consent of the Board, or (b) 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 Ethics, 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. 
 3.1 Unless terminated earlier pursuant to the applicable termination provisions of this Agreement, the period of employment shall commence
on the Effective Date and end on the second December 31 next following the Effective Date (as the same may be extended pursuant to this Paragraph, the “Period of Employment”). 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, or (b) November 1 any subsequent year, if this Agreement has previously been extended pursuant to this Paragraph 3, then the Period of Employment
shall be automatically extended by one year. 
 3.2 Notwithstanding anything to the contrary set forth herein, the Employment
Period shall not extend beyond the Normal Retirement Date. 
 4. Compensation. For all services rendered by the Employee under this
Agreement, the Company shall pay to the Employee compensation as provided below: 
 4.1 Base Salary. The Company shall
pay the Employee a minimum annual base salary at the rate of $300,000 per year in accordance with the Company’s normal payroll practices. 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 1 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 annual base salary. The Employee’s bonus (if any) for a fiscal year shall be paid to him at the time and in the form and manner provided under the terms of the applicable
plan pursuant to which the bonus is awarded. 
  

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 4.3 Annual Review. The determination of compensation payable by the Company
hereunder shall be made by the Compensation Committee or its designee, 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 base salary adjustment and bonus (if any), shall be reported to the Company and shall be memorialized in the minutes of the meetings of the Board or held in a confidential file by the Company’s Human Resources
Department. 
 5. Benefits. 
 5.1 Life Insurance and Disability Benefits. 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. 
 5.2 Health Benefits. 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. 
 5.3 Other Benefits. To
the extent such benefits are not specifically described or duplicated hereinabove in this Paragraph 5, the Employee shall also be entitled to participate in any and all thrift, profit sharing, pension and similar benefit plans (not including
severance, change in control or other similar arrangements), now or hereafter maintained by the Company and offered by the Company to its salaried, employees generally, as the same may change from time to time. 
 5.4 Car. The Company 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. 
 5.5 Expenses. Subject to such general employee expense account policies as the Company may from time to time adopt, the Company shall pay or reimburse the Employee upon presentation of vouchers or invoices for
reasonable 

  

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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, as the case may be, 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. 
 5.6 Vacation. The Employee shall be entitled to paid vacation annually as specified under the Company’s vacation policy, to be
taken at times reasonably convenient to the Company. 
 5.7 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 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. 
 6. Termination. The Company may terminate the Employee’s employment without Cause (as defined below), subject to the requirements of applicable law, on account of the Employee’s Disability (as defined below), in either
case, at any time, with 

  

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90 days’ advance written notice (or pay in lieu thereof). The Company may terminate the Employee’s employment for Cause at any time without notice.
The Employee may terminate his or her employment at any time for any reason, with two months’ advance written notice (or such shorter notice as the Company shall then accept). Upon termination, the Employee shall be entitled only to such
compensation and benefits as described in this Paragraph 6. 
 6.1 Termination by the Company Without Cause or by the
Employee Due to Adverse Change. 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 within 12 months following a
Change in Control if there occurs an Adverse Change within such 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 10 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 6.1, the Company
shall pay to the Employee 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) 18 months (either (A) or (B), whichever as applicable, shall be the “Payment Period”). The Company shall also provide the Employee with benefits in accordance
with Subparagraph 6.6 hereof. Subject to Subparagraph 6.6, the severance amounts described in this Subparagraph 6.1 shall be paid in bi-weekly compensation continuation payments for the Payment Period, with each payment equal to 1/26 of the
Employee’s then current annual salary rate or the rate in effect prior to any reduction which led to the termination. 
 6.2 Section 409A of the Code Payment Requirements. Except as otherwise provided in Paragraph 6, all compensation and benefits shall cease at the time of such termination and the Company shall have no further liability or
obligation by reason of such termination. 
 Notwithstanding anything herein to the contrary, if, at the time of the Employee’s
termination of employment with the Company, the Company has securities which are publicly traded on an established securities market and the Employee is a “specified employee” (as such term is defined in section 409A of the Code) and it is
necessary to postpone the commencement of any payments or benefits otherwise payable under this Agreement as a result of such termination of employment to prevent any accelerated or additional tax under section 409A of the Code, then the Company
shall postpone the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to the Employee) that are not otherwise paid within the “short-term
deferral exception” under Treas. Reg. §1.409A-1(b)(4) and/or the “separation pay exception” under Treas. Reg. §1.409A-1(b)(9)(iii), 

  

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until the first payroll date that occurs after the date that is six months following the Employee’s “separation of service” with the Company.
If any payments are postponed due to such requirements, such postponed amounts shall be paid in a lump sum to the Employee on the first payroll date that occurs after the date that is six months following the Employee’s “separation of
service” with the Company. If the Employee dies during the postponement period prior to the payment of postponed amount, the amounts withheld on account of section 409A of the Code shall be paid to the personal representative of the
Employee’ s estate within 60 days after the date of the Employee’s death. A “specified employee” shall mean an employee who, at any time during the 12-month period ending on the identification date, is a “specified
employee” under section 409A of the Code, as determined by the Compensation Committee or its designee. The determination of specified employees, including the number and identity of persons considered specified employees and the identification
date, shall be made by the Compensation Committee or its designee in accordance with the provisions of sections 416(i) and 409A of the Code and the regulations issued thereunder. 
 6.3 Other Terminations. If the Employee’s employment ceases for any reason other than as described in Subparagraph 6.1, above
(including, but not limited, to (a) termination by the Company for Cause, (b) as a result of the Employee’s death or termination by the Company on account of the Employee’s Disability, (c) resignation by the Employee in the
absence of an Adverse Change or (d) attainment of the Employee’s Normal Retirement Date described in Subparagraph 3.2), then the Employee shall receive payment for his or her accrued and unpaid base salary through the date of such
cessation. All compensation and benefits shall cease at the time of such termination and, except as otherwise provided herein or in the applicable employee benefit plans of the Company, the Company shall have no further liability or obligation by
reason of such termination. 
 6.4 Claims. Any claims for benefits under Paragraph 6 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. 
 6.5 Release. Notwithstanding any other provision of this Agreement, any severance or termination payments or benefits herein
described are conditioned on the Employee’s execution and delivery to the Company of an effective general release and non-disparagement agreement in a form prescribed by the Company and in a manner consistent with the requirements of the Older
Workers Benefit Protection Act and any applicable state law. 
  

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 6.6 Other Rights. Nothing in this Agreement is intended to limit the
Employee’s right to (a) payment or reimbursement for welfare benefit claims incurred prior to the cessation of his or her employment under any group insurance plan, policy or arrangement of the Company in accordance with the terms of such
plan, policy or arrangement, (b) elect COBRA Benefits in accordance with applicable law, or (c) receive a distribution of vested accrued benefits from any employee pension benefit plan in accordance with the terms of that plan. 

6.7 Parachute Payments. 
 6.7.1 Anything in this Agreement to the contrary notwithstanding, in the event that a Change in Control occurs and it shall be determined that any payment or distribution by the Company or its Affiliates 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 section 280G of the Code (each such
payment, a “Parachute Payment”) and would result in the imposition on the Employee of an excise tax under section 4999 of the Code, 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 6.7.1) as if no
excise taxes had been imposed with respect to Parachute Payments (the “Parachute Gross-up”). In no event shall a Parachute Gross-up be payable under this subparagraph 6.7.1 in the absence of a Change in Control. Any Parachute Gross-up
otherwise required by this Subparagraph 6.7.1 shall not be made later than the time of the corresponding payment or benefit hereunder giving rise to the underlying section 4999 of the Code 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 6.7.1 shall be made, whether or not payments or benefits are payable
under this Agreement, and whether or not the Employee’s employment with the Company shall have been terminated. 
 6.7.2
All determinations to be made under this Subparagraph 6.7 shall be made by an independent public accounting firm chosen by the Company (the “Accounting Firm”). 
 6.7.3 In the event the Internal Revenue Service notifies the Employee of an inquiry with respect to the applicability of sections 280G or
4999 of the Code to any payment by the Company or its Affiliates, or assessment of tax under section 4999 of the Code with respect to any payment by the Company or its Affiliates, 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 

  

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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. 
 6.7.4 All of the fees and expenses of the Accounting Firm in performing the determinations referred to in subparagraphs 6.7.1 and 6.7.2 above, or of the representative appointed pursuant to Subparagraph
6.7.3 above, shall be borne solely by the Company. 
 6.7.5 Notwithstanding the foregoing, if the imposition of a section 4999
of the Code excise tax could be avoided by a reduction of the payments due to the Employee (determined before application of Subparagraph 6.7.1) by an amount of 10% or less, then the total of all such payments shall be reduced to an amount one
dollar ($1.00) below the amount that would cause a section 4999 of the Code excise tax to be imposed, and Subparagraph 6.7.1 shall not apply. 
 6.7.6 To the extent necessary to eliminate a Parachute Payment, the amounts payable or benefits to be provided to the Employee shall be reduced such that the economic loss to the Employee as a result of the Parachute
Payment elimination is minimized. In applying this principle, the reduction shall be made in a manner consistent with the requirements of section 409A of the Code and where two economically equivalent amounts are subject to reduction but payable at
different times, such amounts shall be reduced on a pro rata basis but not below zero. 
 6.7.7 Notwithstanding any provision
of this Subparagraph 6.7 to the contrary, in accordance with the requirements of section 409A of the Code, any Parachute Gross-Up payable hereunder shall be paid not later than the end of the calendar year next following the calendar year in which
the Employee or Company (as applicable) remits the taxes for which the Parachute Gross-Up is being paid. 
 6.8
Enforcement. Following any Change in Control, the Company shall pay all legal fees and costs incurred by the Employee to enforce his or her rights under this Agreement if (a) he or she is required to initiate a proceeding to enforce such
rights and (b) he or she is awarded any relief in that proceeding. 
 7. 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, 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. 
  

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 8. 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. 
 9. Non-Disparagement. Upon termination of employment hereunder, the Employee shall not malign,
criticize or otherwise disparage the Company, the Affiliates or their respective officers, employees or directors. 
 10.
Non-Competition. 
 10.1 During the Period of Employment hereunder and then for one year following the Employee’s
termination of employment for any reason: 
 10.1.1 the Employee shall 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 or any of its Affiliates, 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 its 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 10% of the outstanding capital stock of such institution. 
 10.1.2 the Employee shall not solicit any person
who was a customer of the Company or any of its Affiliates 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 or any of its Affiliates within any area of 100 miles of any office or facility of the Company or any of its Affiliates. 
  

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 10.1.3 the Employee shall not directly for himself or any third party, solicit, induce,
recruit or cause another person in the employment of the Company or any of its 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 the Company or any of its Affiliates. 
 10.1.4 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 Employee understands that the Company may suspend future payments of the compensation continuation payments and benefits provided in Section 6.1 and may seek, as a remedy, a return
of any prior compensation continuation payments made under Section 6.1. 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
and the Company or any of its Affiliates, 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.

 10.1.5 In the event of a Change in Control, the Employee acknowledges that the provisions of Paragraph 10 hereof shall
extend to any offices or facilities of any business that becomes an affiliate of or successor to the Company or any of its Affiliates on account of such Change in Control and that the period specified in Subparagraph 10.1 shall be two years instead
of one year. 
 11. Preemptive Considerations. Notwithstanding anything to the contrary set forth herein: 
 11.1 If the Employee is suspended and/or temporarily prohibited from participating in the conduct of the Company’s or any of its
Affiliates’ 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. 
 11.2 If the Employee is removed and/or permanently prohibited from participating in the conduct of the Company’s or its Affiliates’ affairs by an order issued under Section 8(e)(4) or (g)(1) of the
Federal Deposit Insurance Act (12 U.S.C. 1818 (e)(4) or (g)(1)) or any amendments or supplements thereto, or equivalent provisions 

  

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relating to a regulator with supervisory authority over the Company or its Affiliates, all obligations of the Company and its Affiliates under the contract
shall terminate as of the effective date of the order, but vested rights of the parties shall not be affected. 
 11.3 If the
Company or any Affiliate is in default (as defined in Section 3(x)(1) of the Federal Deposit Insurance Act or equivalent provisions relating to a regulator with supervisory authority over the Company or its Affiliates), all obligations under
this Agreement shall terminate as of the date of default, but this Subparagraph 11.3 shall not affect any vested rights of the parties. 
 12. 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
12, 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 12 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. 
 13. Survival. Notwithstanding anything to the contrary in this Agreement, the parties agree that the Employee’s obligations under Paragraphs
7, 8, 9, and 10 of this Agreement shall continue despite the expiration of the term of this Agreement or its termination. 
 14.
Definitions. For purposes of this Agreement: 
 14.1 The term “Adverse Change” 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 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 20%, as compared to the average of the two preceding years, (B) a material reduction in the Employee’s base compensation, (C) any other material and willful breach by the Company of any other provision of this
Agreement, or (D) delivery by the Company of notice of its intention not to renew this Agreement; 

  

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provided that Employee is willing and able to execute a new contract providing terms and conditions substantially similar to those in this Agreement and to
continue providing services to the Company. 
 However, none of the foregoing events or conditions shall constitute an Adverse Change unless:
(x) the Employee provides the Company with written objection to the event or condition within 60 days following the occurrence thereof, (y) the Company does not reverse or otherwise cure the event or condition within 30 days of receiving
that written objection, and (z) the Employee resigns his or her employment within 60 days following the expiration of the 30-day cure period. If the Employee’s termination occurs after such time, the termination shall be treated as a
termination other than for Adverse Change and the Employee shall not be entitled to severance benefits under this Agreement. 
 14.2 The term “Affiliate” shall mean with respect to the Company, persons or entities controlling, controlled by or under common control with the Company. 
 14.3 The term “Board” shall mean the Board of Directors of the Company. 
 14.4 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. 
 14.5 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; 
 (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 

  

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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 shareholders 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. 
 14.6 The term “Code” shall mean the Internal Revenue Code of 1986, as amended and the regulations promulgated thereunder. 
 14.7 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. 
 14.8 The term “Compensation Committee” shall mean the Compensation Committee of the Board. 
  

 - 13 - 

 14.9 The terms “COBRA” and “COBRA Benefits” shall refer to continued
group health insurance benefits under sections 601-607 of the Employee Retirement Income Security Act of 1974, as amended, (29 U.S.C. part 6) Act and the regulations promulgated thereunder. 
 14.10 The term “Disability” means a condition entitling the Employee to benefits under the Company’s long term disability
plan, policy or arrangement; provided, however, that if no such plan, policy or arrangement is then maintained by the Company and applicable to the Employee, “Disability” will mean the Employee’s inability to perform his
or her duties under this Agreement due to a mental or physical condition that can be expected to result in death or that can be expected to last (or has already lasted) for a continuous period of 180 days or more. Termination as a result of a
Disability will not be construed as a termination “without Cause.” 
 14.11 The term “Normal Retirement
Date” shall mean the last business day in the calendar year in which the Employee attains the age of 65. 
 14.12 The
term “Period of Employment” shall have the meaning described in Paragraph 3. 
 14.13 The term “Person”
shall have the meaning ascribed thereto by Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (“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 Exchange Act) which includes the Employee). 
 15.
Miscellaneous. 
 15.1 Assignment. This Agreement (including, without limitation, Paragraph 11 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. 
 15.2 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. 
  

 - 14 - 

 15.3 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. 
  

	 	(a)	Notices to the Company shall be sent to: 

 Susquehanna
Bancshares, Inc. 
 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 the most recent address on file with the Company. 

 15.4 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. 
 15.5 Construction. This Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of Pennsylvania, without application of the principles of conflicts of laws. 
 15.6 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. 
 15.7 Section 409A of the Code. This Agreement shall
be interpreted to avoid any penalty sanctions under section 409A of the Code. If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under section 409A of the Code, then such benefit or payment
shall be provided in full at the earliest time thereafter when such sanctions shall not be imposed. The Employee shall be solely responsible for any tax imposed under section 409A of the Code and in no event shall the Company have any liability with
respect to any tax, interest or other penalty imposed under section 409A of the Code. For purposes of section 409A of the Code, all payments to be made upon a termination of employment under this Agreement may only be made upon the Employee’s
“separation from service” (within the meaning of such term under section 409A of the Code) In no event shall the Employee, directly or indirectly, designate the calendar year of payment, except as permitted under section 409A of the Code.
All reimbursements and in kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement shall be
for expenses incurred during the Employee’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement, or in kind benefits provided, during a calendar year may not
affect the 

  

 - 15 - 

 
expenses eligible for reimbursement, or in kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense
shall be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement or in kind benefits is not subject to liquidation or exchange for another benefit. 

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.
					
	Attest:	 	/s/ Sandra L. Barrett	 		 	By:	 	/s/ Edward Balderston, Jr.
				
		 		 		 	Joseph R. Lizza
	Witness:	 		 		 	
			
	/s/ Barbara A. Lizza	 		 	/s/ Joseph R. Lizza

  

 - 16 -Susquehanna's Executive Deferred Income Plan

 EXHIBIT 10.21 
 SUSQUEHANNA BANCSHARES BANKS AND AFFILIATES 
 2005 EXECUTIVE DEFERRED INCOME PLAN 

 TABLE OF CONTENTS 
  

					
	 ARTICLE I
	  	ESTABLISHMENT, PURPOSE AND STATUS OF THE PLAN	  	1
			
	 1.1.
	  	Establishment of Plan	  	1
			
	 1.2.
	  	Purpose of Plan	  	1
			
	 1.3.
	  	Status of Plan	  	2
			
	 ARTICLE II
	  	DEFINITIONS	  	2
			
	 2.1.
	  	Administrator	  	2
			
	 2.2.
	  	Beneficiary	  	2
			
	 2.3.
	  	Board	  	2
			
	 2.4.
	  	Bonus	  	3
			
	 2.5.
	  	Claimant	  	3
			
	 2.6.
	  	Code	  	3
			
	 2.7.
	  	Company	  	3
			
	 2.8.
	  	Compensation	  	3
			
	 2.9.
	  	Compensation Committee	  	4
			
	 2.10.
	  	Deferral Agreement	  	4
			
	 2.11.
	  	Deferred Compensation Ledger	  	4
			
	 2.12.
	  	Determination Date	  	5
			
	 2.13.
	  	Disabled or Disability	  	5
			
	 2.14.
	  	Employee	  	5
			
	 2.15.
	  	ERISA	  	6
			
	 2.16.
	  	Employment	  	6
			
	 2.17.
	  	Financial Emergency	  	6
			
	 2.18.
	  	Investment Experience	  	7
			
	 2.19.
	  	Losses	  	8
			
	 2.20.
	  	Outside Director	  	8
			
	 2.21.
	  	Participant	  	8
			
	 2.22.
	  	Person	  	8
			
	 2.23.
	  	Plan	  	8

  

 -i- 

					
	 2.24.
	  	Plan Administration Employee	  	8
			
	 2.25.
	  	Plan Year	  	9
			
	 2.26.
	  	Qualified Plan	  	9
			
	 2.27.
	  	Retirement Date	  	9
			
	 2.28.
	  	Subsidiary	  	9
			
	 2.29.
	  	Trust	  	10
			
	 2.30.
	  	Trust Agreement	  	10
			
	 2.31.
	  	Trustee	  	10
			
	 ARTICLE III
	  	ADMINISTRATION	  	10
			
	 3.1.
	  	Administrator	  	10
			
	 3.2.
	  	Administration of Plan	  	11
			
	 3.3.
	  	Delegation	  	11
			
	 3.4.
	  	Reliance Upon Information	  	11
			
	 3.5.
	  	Responsibility and Indemnity	  	12
			
	 ARTICLE IV
	  	PARTICIPATION	  	14
			
	 4.1.
	  	Eligibility of Employees and Outside Directors	  	14
			
	 4.2.
	  	Notification of Eligible Employees and Outside Directors	  	14
			
	 4.3.
	  	Participant Compensation Deferral	  	15
			
	 4.4.
	  	Bonus Deferral	  	17
			
	 4.5.
	  	Suspension of Deferrals	  	18
			
	 4.6.
	  	Vesting	  	19
			
	 ARTICLE V
	  	ACCOUNTS	  	19
			
	 5.1.
	  	Deferral of Compensation and/or Bonus	  	19
			
	 5.2.
	  	Investment of Accounts	  	19
			
	 5.3.
	  	Allocation of Investment Experience to Accounts	  	20
			
	 5.4.
	  	Participants’ Rights Under the Trust	  	20
			
	 5.5.
	  	Determination of Account	  	20
			
	 ARTICLE VI
	  	DISTRIBUTIONS	  	21
			
	 6.1.
	  	Amount of Deferred Compensation Subject to Distribution	  	21
			
	 6.2.
	  	Form of Distributions	  	21
			
	 6.3.
	  	Timing of Distributions	  	22

  

 -ii- 

					
	 6.4.
	  	Advance Distribution Election Required	  	23
			
	 6.5.
	  	Distributions upon Termination of Employment	  	24
			
	 6.6.
	  	Distributions in connection with Community Banks Deferred Income Plan	  	24
			
	 6.7.
	  	Withdrawals Due to Financial Emergency	  	24
			
	 6.8.
	  	Payor of Deferred Compensation	  	25
			
	 6.9.
	  	Claims Procedures	  	26
			
	 6.10.
	  	Facility of Payments	  	28
			
	 6.11.
	  	Beneficiary Designations	  	29
			
	 6.12.
	  	Withholding of Taxes	  	30
			
	 ARTICLE VII
	  	RIGHTS OF PARTICIPANTS	  	30
			
	 7.1.
	  	Annual Statement to Participants	  	30
			
	 7.2.
	  	Limitation of Rights	  	30
			
	 7.3.
	  	Nonalienation of Benefits	  	31
			
	 7.4.
	  	Prerequisites to Benefits	  	32
		
	ARTICLE VIII MISCELLANEOUS	  	32
			
	 8.1.
	  	Amendment or Termination of the Plan	  	32
			
	 8.2.
	  	Powers of the Company	  	33
			
	 8.3.
	  	Waiver	  	33
			
	 8.4.
	  	Separability	  	34
			
	 8.5.
	  	Gender, Tense and Headings	  	34
			
	 8.6.
	  	Governing Law	  	34
			
	 8.7.
	  	Notice	  	34

  

 -iii- 

 ARTICLE I 
 ESTABLISHMENT, PURPOSE AND STATUS OF THE PLAN 
 1.1. Establishment of Plan. Susquehanna
Bancshares, Inc. (the “Company”) has previously established the Susquehanna Bancshares Banks and Affiliates Executive Deferred Income Plan (the “Prior Plan”), to enable certain executives to supplement their retirement income by
deferring the receipt of compensation for services performed while such plan was in effect. In order to preserve the favorable tax treatment available to amounts credited and vested under the Prior Plan pursuant to the American Jobs Creation Act of
2004 (the “AJCA”), which added Section 409A to the Internal Revenue Code (the “Code”), the Company hereby establishes an unfunded deferred compensation plan to be known as the “Susquehanna Bancshares Banks and
Affiliates 2005 Executive Deferred Income Plan” (the “Plan”), effective January 1, 2005 (the “Effective Date”). Amounts which have accrued or become vested in the Prior Plan as of December 31, 2004 shall be subject
to the terms and conditions of the Prior Plan. All amounts which have accrued or become vested (including earnings) on or after the Effective Date are subject to the terms of the Plan. 
 The Plan retains many of the attributes of the Prior Plan, but is modified to achieve compliance with the requirements of Section 409A of the Code.
The Company reserves the right to amend the Plan, either retroactively or prospectively, in whatever respect is required to achieve compliance with the requirements of Section 409A of the Code. 
 1.2. Purpose of Plan. The Plan is maintained for the purpose of providing Participants the opportunity to defer all or a portion of base
compensation that would otherwise be received in an earlier year. In addition, the Plan provides a mechanism through which Participants may defer all or a portion of any annual bonus that would otherwise be received in an earlier year. 

 1.3. Status of Plan. The Plan is intended as an unfunded plan maintained primarily for the purpose
of providing deferred compensation for (i) outside directors and (ii) a select group of management or highly compensated employees within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Income Retirement Security
Act of 1974, as amended (“ERISA’), and as such it is intended that the Plan be exempt from the participation and vesting, funding, and fiduciary responsibility requirements of Title I of ERISA and that the Plan qualify for simplified
reporting under U.S. Department of Labor regulation Section 2530.1(14)-23, which provides for an alternative method of compliance for plans described in such regulation. The Plan is not intended to satisfy the qualification requirements of
Section 401 of the Internal Revenue Code (the “Code”). 
 ARTICLE II 
 DEFINITIONS 
 Each term below shall have the meaning assigned thereto for all
purposes of the Plan unless the context reasonably requires a broader, narrower or different meaning. 
 2.1. Administrator.
“Administrator” means the Person or Persons designated by the Compensation Committee pursuant to Section 3.1. 
 2.2.
Beneficiary. “Beneficiary” means the beneficiary or beneficiaries designated by the Participant to receive any amounts distributable under the Plan upon the death of the Participant. 
 2.3. Board. “Board” means the Board of Directors of the Company. 
  

 -2- 

 2.4. Bonus. “Bonus” means any amount paid to the Employee during the Plan Year as an
award granted under any bonus program of the Company or a Subsidiary. 
 2.5. Claimant. “Claimant” means the Person or
Persons described in Section 6.9 who apply for benefits that may be payable under the Plan. 
 2.6. Code. “Code” means
the Internal Revenue Code of 1986, as amended, and the regulations and other authority issued thereunder by the appropriate governmental authority. References herein to any section of the Code shall include references to any successor section or
provision of the Code. 
 2.7. Company. “Company” means Susquehanna Bancshares, Inc. or any successor thereto. 

2.8. Compensation. “Compensation” means (i) the base salary proposed to be paid in cash during the Plan Year by the Company or a
Subsidiary to the Employee for services rendered or labor performed for the Company or Subsidiary, without regard to any amounts that the Employee has deferred or does defer under this Plan pursuant to Section 4.3, or under a plan subject to
Section 401(k), 403(b), or 457(b) of the Code, or has applied or does apply to tax-exempt benefits under a salary reduction agreement pursuant to Sections 125 or 132(f) of the Code or (ii) in the case of an Outside Director, the cash
remuneration proposed to be paid in cash during the Plan Year as fees for services rendered to the Company as a member of the Board, without regard to any amounts that the Outside Director has deferred or does defer under this Plan pursuant to
Section 4.3. In the case of an Employee who is also a director, Compensation means the total of (i) and (ii) above received by such an Employee during the Plan Year. 
  

 -3- 

 2.9. Compensation Committee. “Compensation Committee” means the Executive Compensation
Committee of the Board. 
 2.10. Deferral Agreement. “Deferral Agreement” means a separate written agreement entered into by
and between the Company or a Subsidiary and a Participant, which agreement describes the terms and conditions of such Participant’s deferred compensation arrangement hereunder for the Plan Year. This Deferral Agreement shall be executed and
dated by the Participant and shall specify (i) the amount of Compensation and/or Bonus, by percentage or dollar amount, to be deferred and (ii) the date or dates for payment of deferred amounts. 
 2.11. Deferred Compensation Ledger. “Deferred Compensation Ledger” means the appropriate accounting records maintained by the
Administrator for the Participants, which set forth the name of each Participant and separate accounts reflecting for each Participant the amount of Compensation and Bonus deferred pursuant to Article Four of the Plan and (ii) the amount of
Investment Experience credited or charged to the Participant’s accounts pursuant to Article Five. The Deferred Compensation Ledger shall be utilized solely as a device for the measurement and determination of the contingent amounts to be paid
to Participants under the Plan. The Deferred Compensation Ledger shall not constitute or be treated as an escrow, trust fund, or any other type of funded 
 account of whatever kind for Code or ERISA purposes and, moreover, contingent amounts credited thereto shall not be considered “plan assets” for ERISA purposes. In addition, no economic benefit or constructive receipt of income
shall be provided to any Participant for purposes of the Code unless and until cash payments under the Plan are actually made to the Participant. The Deferred Compensation Ledger merely provides a record of the bookkeeping entries relating to the
contingent benefits that the Company or a designated Subsidiary intends to provide to Participants and shall thus reflect a mere unsecured promise to pay such amounts in the future. 
  

 -4- 

 2.12. Determination Date. “Determination Date” means, with respect to all or a portion
of a Participant’s deferrals for a given Plan Year, as specified by the Participant in his Deferral Agreement, either (i) the termination of his Employment due to his death, Disability, retirement or another reason (as set forth in
Sections 6.5 ) or (ii) the first day of any calendar year that may be specified by the Participant in his Deferral Agreement which date shall not be earlier than the first day of the calendar month following the third anniversary of the last
day of the Plan Year with respect to which the relevant deferral(s) was (were) made. 
 2.13. Disabled or Disability.
“Disabled” or “Disability” is defined in accordance with Section 409A of the Code and means any medically determinable physical or mental impairment of a Participant that can be expected to result in death or last for a
continuous period of not less than twelve (12) months, which: 
 (a) results in the Participant’s inability to
engage in substantial gainful activity; or 
 (b) causes the Participant to receive income replacement benefits for at least
three (3) months under an accident and health plan of the Company. 
 2.14. Employee. “Employee” means (i) a
member of a select group of management or highly compensated common-law employees of the Company or a designated Subsidiary or (ii) any person described in (i) above that is a director, other than an Outside Director, who is also a member
of the Board of the Company or any Subsidiary. 
  

 -5- 

 2.15. ERISA. “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended, and the regulations and other authority issued thereunder by the appropriate governmental authority. References herein to any section of ERISA shall include references to any successor section or provision of ERISA. 
 2.16. Employment. “Employment” means either (i) employment as an Employee or (ii) Board service as an Outside Director,
whichever is applicable. In cases involving an Employee, all periods of employment by the Company or a Subsidiary shall be taken into account whether or not consecutive, and neither the transfer of the Employee from employment by the Company to
employment by a Subsidiary nor the transfer of the Employee from employment by a Subsidiary to employment by the Company shall be deemed to be a termination of Employment by the Employee. Moreover, the Employment of an Employee shall not be deemed
to have been terminated because of an absence from active employment on account of temporary illness or authorized vacation, or during temporary leaves of absence from active employment granted by the Company or a 
 Subsidiary for reasons of professional advancement, education, health, or government service, or during military leave for any period if the Employee returns to active
employment in accordance with Section 414(u) of the Code after the termination of his military leave, or during any period required to be treated as a leave of absence by virtue of (i) any enforceable employment or other agreement or
(ii) any applicable law, such as the federal Family and Medical Leave Act of 1993. 
 2.17. Financial Emergency. “Financial
Emergency” means an unforeseeable emergency and severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or of a dependent (as defined in Section 152 of 

  

 -6- 

 
the Code, and, for taxable years beginning on or after January 1, 2005, without regard to Sections 152(b)(1),(b)(2), and (d)(1)(B)) of the Participant,
loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, which satisfies the definition of “unforeseeable
emergency” in Section 409A of the Code. The circumstances that will constitute an unforeseeable emergency will depend upon the facts of each case, but a Financial Emergency shall not be deemed to exist to the extent that such hardship is
or may be relieved; 
 (i) Through reimbursement or compensation by insurance or otherwise, 
 (ii) By liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe financial
hardship, or 
 (iii) By cessation of Compensation or Bonus deferrals under the Plan. 
 By way of example, the need to send a Participant’s child to college or the desire to purchase a home would not be considered a Financial Emergency.
As a further example, a Financial Emergency that may be relieved by a cessation of Compensation or Bonus deferrals will be considered to be a Financial Emergency until such time as it is relieved by cessation of Compensation or Bonus deferrals or by
other means. 
 2.18. Investment Experience. “Investment Experience” means the hypothetical amounts credited (as income,
gains or appreciation on any hypothetical investments that may be permitted under the Plan) or charged (as losses or depreciation on any such hypothetical investments) to the balances in the Participant’s accounts under the Deferred
Compensation Ledger pursuant to Article Five. 
  

 -7- 

 2.19. Losses. “Losses” mean any and all losses, claims, damages, judgments, settlements,
liabilities, expenses and costs (and all actions in respect thereof and any legal or other costs and expenses in giving testimony or furnishing documents in response to a subpoena or otherwise), including the cost of investigating, preparing or
defending any pending threatened or anticipated possible action, claim, suit or other proceeding, whether or not in connection with litigation in which any Plan Administration Employee is a party. 
 2.20. Outside Director. “Outside Director” means a member of the Board who is not at the time an Employee of the Company or any
Subsidiary. 
 2.21. Participant. “Participant” means for a given Plan Year an Employee or Outside Director who meets the
requirements set forth in Section 4.1. Notwithstanding the preceding sentence, an Employee or Outside Director shall be considered a Participant hereunder as long as he has any balance credited to his accounts under the Deferred Compensation
Ledger, regardless of whether he is eligible to authorize Compensation and/or Bonus deferrals hereunder for any Plan Year. 
 2.22.
Person. “Person” means any natural person, firm, partnership, association, corporation company, trust, business trust or other legal entity. 
 2.23. Plan. “Plan” means the Susquehanna Bancshares Banks and Affiliates 2005 Executive Deferred Income Plan as set forth herein, and as the same may hereafter be amended from time to time.

 2.24. Plan Administration Employee. “Plan Administration Employee” means each past, present and future Administrator and
each other employee who acts in the capacity of an agent, delegate or representative of the Administrator or the Company under the Plan. 
  

 -8- 

 2.25. Plan Year. “Plan Year” means the twelve consecutive month calendar year.

 2.26. Qualified Plan. “Qualified Plan” means the Susquehanna Bancshares 401(k) Plan or any successor deemed contribution
plan maintained by the Company which is intended to qualify under Section 401(a) and 401(k) of the Code. 
 2.27. Retirement Date. “Retirement Date” means, for an Employee, the first day of the month coincident with or next following the termination of a Participant’s Employment after the
earlier of: (i) the fifty-fifth (55th) birthday of the Participant and completion of at least fifteen (15) years of
Employment; or (ii) the sixty-fifth birthday (65th) of a Participant. 
 “Retirement Date” means, for a Director, the first day of the month coincident with or
next following the termination of a Participant’s Employment after the later of: (1) the seventieth (70th) birthday of
a Participant; or (ii) a date after a Participant’s seventieth birthday as determined by the Committee. 
 “Retirement
Date” means, for a Participant who is both an Employee and a Director, the first day of the month coincident with or next following a Participant’s eligibility for retirement as both an Employee and a director. 
 2.28. Subsidiary. “Subsidiary” means any majority owned subsidiary of the Company or any majority-owned subsidiary thereof, or any other
corporation, partnership or business venture to be a Subsidiary in which the Company owns, directly or indirectly, a significant financial interest provided that (i) the Board designates such corporation, partnership or business venture to be a
Subsidiary for the purposes of this Plan for any Plan Year and (ii) the Board of Directors (or equivalent governing authority) of such corporation, partnership or business venture consents to being designated as a Subsidiary. 
  

 -9- 

 2.29. Trust. “Trust” means a grantor trust of the type commonly referred to as a
“rabbi trust” created under the Trust Agreement to “informally fund” contingent benefits payable under the Plan. 
 2.30.
Trust Agreement. “Trust Agreement” means the Trust under the Susquehanna Bancshares Banks and Affiliates 2005 Executive Deferred Income Plan. 
 2.31. Trustee. “Trustee” means the duly appointed and acting trustee of the Trust, and any successor thereto. 
 ARTICLE III 
 ADMINISTRATION 
 3.1. Administrator. The Administrator shall be the Person or Persons as may be chosen by the Compensation Committee from time to time. In the
event of a vacancy in the office of Administrator, the Compensation Committee shall be the Administrator. The Administrator shall serve at the pleasure of the Compensation Committee and the Compensation Committee may remove or replace the
Administrator pursuant to procedures established by the Compensation Committee. 
 The Administrator may also be a Participant. Any
Administrator who is also a Participant shall not act on any matter relating solely to himself. Any action required under such circumstances shall be taken by the Compensation Committee. 
 The Administrator shall not receive any special compensation for serving as Administrator, but shall be reimbursed by the Company for any reasonable
expenses incurred in connection therewith. No bond or other security need be required of the Administrator. 
  

 -10- 

 3.2. Administration of Plan. The Administrator shall operate, administer, interpret, construe and
construct the Plan, including, without limitation, correcting any error or defect, supplying any omission or reconciling any inconsistency. The Administrator reserves all powers necessary or appropriate to implement and administer the terms and
provisions of the Plan, including the power to make findings of fact. The determination of the Administrator as to the proper interpretation, construction, or application of any term or provision of the Plan shall be final, binding, and conclusive
with respect to all interested persons and entities. 
 In addition, the Administrator shall implement the provisions of Section 5.2
regarding investment of accounts. Furthermore, the Administrator shall direct the Trustee in matters relating to the payment to the Participants of amounts from their accounts maintained under the Plan in accordance with the terms of the Plan.

 3.3. Delegation. The Administrator may, in his discretion, delegate one or more of his ministerial duties to his designated agents
or to employees of the Company or a Subsidiary, but may not delegate his discretionary authority to make the determinations specified in Section 3.2. 
 3.4. Reliance Upon Information. The Administrator shall not be liable for any decision, action, omission, or mistake in judgment, provided that he acted in good faith in connection with the administration of
the Plan. Without limiting the generality of the foregoing, any decision or action taken by, the Administrator in reasonable reliance upon any information supplied to him by the Board, the Compensation Committee, any employee of the Company or a
Subsidiary, the Company’s legal counsel, or the Company’s independent accountants shall be deemed to have been taken in good faith. 
  

 -11- 

 The Administrator may consult with legal counsel, who may be counsel for the Company or other counsel,
with respect to his obligations or duties hereunder, or with respect to any action, proceeding or question at law, and shall not be liable with respect to any action taken, or omitted, in good faith pursuant to the advice of such counsel.

 3.5. Responsibility and Indemnity. To the full extent permitted by law, the Company shall indemnify and hold harmless each Plan
Administration Employee against, and each Plan Administration Employee shall be entitled without further act on his part to indemnity from the Company for, any and all Losses, as and when incurred, directly or indirectly, relating to, based upon,
arising out of, or resulting, from his being or having been a Plan Administration Employee; provided, however, that such indemnity shall not include any Losses incurred by such Plan Administration Employee with respect to any matters as to which he
is finally adjudged in any such action, suit or proceeding to have been guilty of criminal misconduct in the performance of his duties as a Plan Administration Employee. Any such Plan Administration Employee shall give Company prompt written notice
of his actual receipt of service of process in any such action, suit or other proceeding. Notwithstanding the foregoing, the right to indemnification hereunder shall not be affected by any failure of a Plan Administration Employee to give such
notice (or by delay by a Plan Administration Employee in giving such notice) unless, and then only to the extent that, the rights and remedies of the Company shall have been prejudiced as a result of the failure to give, or delay in giving, such
notice. In addition, any such Plan Administration Employee shall, upon request of the Company, offer the Company in writing, the opportunity to handle and defend same at its sole expense. The decision by the Company to handle such proceeding shall
conclusively determine that the Plan Administration Employee is entitled to the indemnity provided herein. The foregoing right of indemnification shall be in addition to any liability that the Company may otherwise have to the Plan Administration
Employee. 
  

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 The Company’s obligation hereunder to indemnify the Plan Administration Employee shall exist without
regard to the cause or causes of the matters for which indemnity is owed and expressly includes (but is not limited to) the Losses, directly or indirectly, relating to, based upon, arising out of, or resulting from any one or more of the following:

 (i) the sole negligence or fault of any Plan Administration Employee or combination of Plan Administration Employees;

 (ii) the sole negligence or fault of the Company; 
 (iii) the sole negligence or fault of third parties; 
 (iv) the concurrent negligence or fault or any combination of the Plan Administration Employee and/or the Company and/or any third party;
and 
 (v) any other conceivable or possible combination of fault or negligence, it being the specific intent of the Company
to provide the maximum possible indemnification protection hereunder, but excluding any such Losses that are finally adjudged by a court of competent jurisdiction to have resulted from the criminal misconduct of the Plan Administration Employee.

 The Plan Administration Employee shall have the right to retain counsel of its own choice to represent him, however, such counsel shall be
acceptable to the Company which acceptance shall not be unreasonably withheld. The Company shall pay the fees and expenses of such counsel and such counsel shall to the full extent consistent with its professional 

  

 -13- 

 
responsibilities cooperate with the Company and any counsel designated by it. The Company shall be liable for any settlement of any claim against the Plan
Administration Employee made with the written consent of the Company which consent shall not be unreasonably withheld. 
 The foregoing right
of indemnification shall inure to the benefit of the successors and assigns, and the heirs, executors, administrators and personal representatives of each Plan Administration Employee, and shall be in addition to all other rights to which the Plan
Administration Employee may be entitled as a matter of law, contract, or otherwise. 
 ARTICLE IV 
 PARTICIPATION 
 4.1. Eligibility of
Employees and Outside Directors. The only individuals who shall be eligible to authorize Compensation and/or Bonus deferrals under the Plan for the Plan Year are (i) Outside Directors scheduled for Board service during the Plan Year and
(ii) Employees who are (1) determined by the Company’s Chief Executive Officer (and any other officers of the Company appointed for this purpose by such Chief Executive Officer) to be included in a select group of management or highly
compensated Employees of the Company or a Subsidiary, (2) nominated by such officer or officers to participate in the Plan for such Plan Year and (3) approved for such participation by the Compensation Committee. A Participant’s
deferral election for a given Plan Year shall continue to be fully operative during any paid leave of absence granted in accordance with Company or Subsidiary policies. 
 4.2. Notification of Eligible Employees and Outside Directors. Not less than thirty (30) days prior to the beginning of each Plan Year, the Administrator shall notify in writing each of the affected
Employees and Outside Directors that they are eligible to elect to defer Compensation and/or Bonus under the Plan. Employees or Outside Directors may be 

  

 -14- 

 
nominated and approved as new Participants at any time during a Plan Year. As soon as practicable (but in all events within thirty (30) days) after the
effective date on which an Employee or Outside Director described in the preceding sentence first becomes eligible, the Administrator shall notify in writing each of the designated persons of their initial eligibility to defer Compensation and/or
Bonus under the Plan. An Employee or Outside Director shall be a Participant hereunder as long as he has any balance credited to his accounts under the Deferred Compensation Ledger, regardless of whether he is eligible to authorize Compensation
and/or Bonus deferrals hereunder for any Plan Year. 
 4.3. Participant Compensation Deferral. The following provisions of this
Section 4.3 shall apply for such period or periods as determined by the Compensation Committee from time to time in its sole discretion. After an Employee or Outside Director has been notified by the Administrator that he is eligible to
authorize deferrals under the Plan, he must, in order to defer Compensation with respect to a given Plan Year, notify the Administrator of his deferral election by completing and executing a Deferral Agreement which shall be irrevocable after the
commencement of the Plan Year. The Employee may defer up to seventy-five percent (75%) of his Compensation that is paid during the Plan Year or the portion hereof that he is a Participant who satisfies the eligibility requirements of Sections
4.1 and 4.2; except that, an Employee who is also a director and wishes to defer compensation under the Plan, must elect to defer one-hundred percent (100%) of his Compensation attributable to director’s fees paid for services
rendered to the Company as a member of the Board. An Outside Director who wishes to defer compensation under the Plan, must elect to defer one-hundred percent (100%) of his Compensation that is paid during the Plan Year or the portion
hereof that he is a Participant who satisfies the eligibility requirements of Sections 4.1 and 4.2. 
  

 -15- 

 Notwithstanding the foregoing, deferrals of Compensation (and Bonus) for any Plan Year, shall not be less
than three thousand dollars ($3,000) in the aggregate and shall be deferred to a Determination Date as specified by the Participant in the Deferral Agreement. An effective Deferral Agreement, completed and signed by the Participant, must be received
by the Administrator within a time period established by the Administrator and in all events prior to the commencement of the Plan Year in order for the Participant to make a deferral during such Plan Year. Failure to have a completed and signed
Deferral Agreement on file with the Administrator at the commencement of any Plan Year shall be treated as the Participant’s election not to defer Compensation for that Plan Year. 
 Should any minimum level of participation established by the Compensation Committee not be met for a given Plan Year, deferrals of Compensation under
this Section 4.3 shall not be permitted and, as soon as practicable after he determines that such minimum level of participation for such year has not been met, the Administrator shall appropriately notify in writing each of the affected
Employees and Outside Directors. 
 Notwithstanding any provisions hereof to the contrary, if pursuant to Section 4.1 an Employee or
Outside Director is eligible to become a Participant for the first time as of a date that occurs after the Plan Year has begun, the newly eligible Participant, in order to defer Compensation hereunder, must complete and execute a Deferral Agreement
and return it to the Administrator within thirty (30) days after the date on which the individual first was notified by the Administrator that he became eligible to be a Participant. Such Deferral Agreement shall only apply to defer
Compensation for services to be performed for the remainder of the Plan Year by the Participant provided that such services are to be performed subsequent to receipt of his Deferral Agreement by the Administrator. 
  

 -16- 

 Deferrals will commence on the first day of the pay period next following the Administrator’s
receipt of the Participant’s Deferral Agreement or, if later, the first day of the Plan Year to which the Deferral Agreement relates. 
 The amount of Compensation elected to be deferred pursuant to a Deferral Agreement shall be withheld on a pro rata basis from the Participant’s regular payments of Compensation for each pay period during the Plan Year. 
 4.4. Bonus Deferral. Subject to approval of the Compensation Committee, the following provisions of this Section 4.4 shall apply for such
period or periods as determined by the Compensation Committee from time to time in its sole discretion. A Participant who wishes to make a deferral election with respect to the amount of any Bonus that may be payable to him during a given Plan Year
must make such deferral election when completing his Deferral Agreement effective for the following Plan Year. The Participant may defer up to one hundred percent (100%) (seventy-five percent (75%) for Plan Years beginning on and after
January 1, 2009) of his Bonus for any Plan Year. 
 Notwithstanding the foregoing, deferrals of Bonus (and Compensation) for any Plan
Year shall not be less than three thousand dollars ($3,000) in the aggregate and shall be deferred to a Determination Date as specified by the Participant. Should any minimum level of participation established by the Compensation Committee not be
met for a given Plan Year, deferrals of any Bonus under this Section 4.4 shall not be permitted and, as soon as practicable after he determines that such minimum level of participation for such year has not been met, the Administrator shall
appropriately notify in writing each of the affected Employees. 
  

 -17- 

 The dollar amount or percentage of a Bonus elected to be deferred under this option shall be deferred in
one lump sum and shall be deemed to have been deferred on the date the deferred portion of the Bonus would otherwise have been paid to the Participant in the absence of his deferral election. Any Bonus deferral election hereunder shall be void and
ineffective to the extent that no Bonus is awarded to the Participant with respect to the Plan Year. 
 4.5. Suspension of Deferrals.
All deferrals of Compensation and Bonuses hereunder for a Plan Year shall be irrevocable, except that a Participant’s deferral election shall be canceled upon a finding that the Participant has suffered a Financial Emergency. A Participant who
believes he has suffered a Financial Emergency must petition the Administrator in writing to request a cancellation of his deferrals hereunder. Any later election will be subject to the provisions governing initial deferral elections of Treas.Reg.
1.409A-2. 
 A Participant’s deferral election shall also be canceled upon a
finding that the Participant has incurred a Disability, as defined below. Such cancellation must be made by the later of the end of the Participant’s tax year or the fifteenth (15th) day of the third month following the date the Participant incurred the Disability. 
 For purposes of this Section 4.5, Disability means any medically determinable physical or mental impairment resulting in the Participant’s inability to perform the duties of his or her position or any
substantially similar position, where such impairment can be expected to result in death or can be expected to last for a continuous period of at least six (6) months. 
  

 -18- 

 4.6. Vesting. For any Determination Date, amounts attributable to deferral of Compensation or
Bonus which are credited to the Participant’s account maintained in the Deferred Compensation ledger shall be fully vested. 
 ARTICLE V

 ACCOUNTS 
 5.1.
Deferral of Compensation and/or Bonus. If a Participant has elected to defer Compensation and/or a Bonus hereunder for a Plan Year, the deferred amounts shall not be paid when they otherwise would have been paid in the absence of such
election. A bookkeeping entry to reflect the deferred amounts shall be credited by the Administrator to the Participant’s accounts under the Deferred Compensation Ledger. With respect to Compensation and Bonuses deferred hereunder for a Plan
Year, each such deferred amount shall be credited to the Participant’s accounts under the Deferred Compensation Ledger as of the date it otherwise would have been paid to the Participant. 
 5.2. Investment of Accounts. Subject to the terms of the Plan, the Administrator shall provide for direction by Participants of amounts credited
to their accounts in the Deferred Compensation Ledger, in any one or a combination of hypothetical investment funds that shall be maintained in connection with the Plan. In either event, the investment funds shall be at least as diverse as the
investment funds that are made available from time to time to participants in the Qualified Plan; provided, however, no direct investment in securities issued by the Company or any Subsidiary shall be permitted under the Plan. Except as otherwise
provided below, each Participant shall direct the Administrator (or its delegate) as to how the amounts credited to his account in the Deferred Compensation Ledger shall be hypothetically invested in the investment fund or funds made available under
the Plan. The Participant’s directions, if any, 

  

 -19- 

 
shall be in a form and manner and in the minimum increments prescribed by the Administrator. The Administrator may prescribe the fund in which the
Participants’ amounts shall be hypothetically invested in the absence of a direction by any such Participant. 
 5.3. Allocation of
Investment Experience to Accounts. As of the last day of each Plan Year (or such shorter period as may be determined to be appropriate by the Administrator in the Administrator’s sole discretion), the Administrator shall determine the
Investment Experience of the hypothetical investment or investments for the applicable accounting period and as soon as practicable after such period, shall post the amount of Investment Experience to the Participant’s accounts, effective as of
the end of such period. If the Participant validly elects installment payments, then Investment Experience shall continue to be credited by the Administrator to undistributed amounts allocated to the Participant’s accounts under the Deferred
Compensation Ledger. 
 5.4. Participants’ Rights Under the Trust. The assets of the Trust shall be held for the benefit of the
Participants in accordance with the terms of the Plan and Trust Agreement. In accordance with the provisions of the Trust Agreement, the assets of the Trust that are attributable to the Company or a Subsidiary shall remain subject to the claims of
the general creditors of the Company or the Subsidiary and not otherwise, and the rights of the affected Participants to the amounts in the Trust shall be limited as provided in the Trust Agreement in the event that the Company or the Subsidiary
that employs such Participants becomes insolvent. 
 5.5. Determination of Account. The aggregate amount credited to a
Participant’s accounts under the Deferred Compensation Ledger shall consist of (i) the amounts of Compensation and Bonuses that were deferred pursuant to Article Four, plus (or minus) (ii) the amounts of Investment Experience credited
(or charged) to such accounts pursuant to Article Five, minus (iii) the aggregate amount of any distributions made from such accounts pursuant to Article Six. 
  

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 ARTICLE VI 
 DISTRIBUTIONS 
 6.1. Amount of Deferred Compensation Subject to Distribution. As of the
Participant’s Determination Date, the aggregate distributable vested amount credited to his accounts maintained under the Deferred Compensation Ledger shall be distributable in accordance with the provisions of Section 6.2. Any amount that
is to be distributed to a Participant or Beneficiary pursuant to this Article Six shall be fixed and determined as is provided in Sections 6.3(a) and 6.3(b). 
 6.2. Form of Distributions. Upon the occurrence of the Participant’s Determination Date with respect to all or a portion of amounts deferred under the Plan for a given Plan Year, the amounts credited to a
Participant’s accounts maintained under the Deferred Compensation Ledger with respect to such Plan Year shall become distributable to such Participant in one of the forms set forth under Section 6.2(a) or Section 6.2(b), as elected in
writing by such Participant at the time the election was made to defer the Compensation and/or Bonus. 
 (a) Lump Sum.
If elected by the Participant in his Deferral Agreement for a given Plan Year, the affected portion of the Participant’s accounts pertaining to such Plan Year shall be paid in a lump-sum distribution of the entire vested balance credited to the
Participant’s accounts maintained under the Deferred Compensation Ledger with respect to the affected Plan Year(s) measured as of the applicable Determination Date plus any deferrals of 

  

 -21- 

 
Compensation or Bonus that were subsequently credited to the affected accounts of the Participant up to the date benefits are paid pursuant to
Section 6.3(a), less any distributions that were subsequently made from such accounts up to the date benefits are paid pursuant to Section 6.3(a). 
 (b) Installment Payments. If elected by the Participant in his Deferral Agreement for a given Plan Year, the affected portion of
the Participant’s accounts pertaining to a given Plan Year shall be paid in annual installments, to be paid during a specified period of not less than five (5) years nor more than ten (10) years, as elected by the Participant in his
Deferral Agreement. Should a Participant die prior to receiving all installments due under the Plan, all unpaid installments shall be paid to the Beneficiary of the deceased Participant within sixty (60) days of the date on which the
Compensation Committee is notified of the Participant’s death. 
 6.3. Timing of Distributions. The following provisions are
subject to Section 6.4. 
 (a) Lump Sum Distribution. Lump sum distributions shall be made within sixty
(60) days after the Participant’s elected Determination Date. 
 (b) Installment Payments. Installment
payments shall commence as of the date selected by the Participant which date must be (i) the first day of any calendar month and (ii) within sixty (60) days after the Participant’s Determination Date as elected by the
Participant. The initial installment will be based on the amount credited to the recipient’s account as of the Determination Date. Thereafter, the remaining installment payments shall be made as of the anniversary of the first installment date
and will be based on the recipient’s account balance as of the anniversary of the Determination Date last preceding the date of such 

  

 -22- 

 
installment payment. Installment payments shall be determined by determining the recipient’s account balance as of the relevant anniversary and
multiplying the recipient’s account balance as of the relevant anniversary by a fraction, the numerator of which is one, and the denominator of which is the remaining number of years of the term for which payments have not been made.

 (c) Payment to a Specified Employee. If a Participant is a “Specified Employee” of the Company as defined
in 26 C.F.R. §1.409A-1(i), then any payment due under the Plan will not be paid for at least six months following the Participant’s separation from service as defined in 26 C.F.R. §1.409A-1(h). 
 6.4. Advance Distribution Election Required. The Participant’s election as to the form and timing of his distribution hereunder must be made
at the same time the Participant’s Deferral Agreement is completed and signed by the Participant prior to the last day of the Plan Year immediately preceding the Plan Year to which the Deferral Agreement applies or, if applicable, within thirty
(30) days after the date on which an Employee or Outside Director was first notified of eligibility to become a Participant after the beginning of a Plan Year. Notwithstanding the preceding language of this Section, the Participant may submit a
subsequent election regarding the form or time of payout, provided however, such election shall only be effective if (i) the change is not effective until twelve (12) months after the date the new election is made; (ii) the new
election must defer payment for at least five (5) years beyond the date payment was previously elected to begin; and (iii) if the election changes a payment previously elected to be paid at a specified time or pursuant to a fixed schedule
then the subsequent election must be made at least twelve (12) months before payment was scheduled to begin. 
  

 -23- 

 6.5. Distributions upon Termination of Employment. In the event of a Participant’s
termination of Employment for any reason before qualifying for retirement, the full amount of any remaining unpaid vested benefits credited to the accounts maintained under the Deferred Compensation Ledger for such Participant shall be paid in a
lump sum no later than sixty (60) days after the termination date, subject to the requirements of Section 6.3(c). 
 6.6.
Distributions in connection with Community Banks Deferred Income Plan. A time and form of payment election made by a Participant in the former Community Banks Deferred Income Plan (“Community Banks Plan”) prior to the merger of the
Community Banks Plan into the Plan, will continue to be honored by the Plan so long as such election and the terms of the Community Banks Plan are compliant with the requirements of Section 409A of the Code. All such elections made after the
effective date of the merger must be made in accordance with the provisions of the Plan. The Trustees of the former Community Banks Plan have certified that the Community Banks Plan is compliant with the requirements of Section 409A of the Code
as of the effective date of the merger. 
 6.7. Withdrawals Due to Financial Emergency. A Participant who believes he has suffered a
Financial Emergency may in writing request a withdrawal of the portion of his account balances needed to satisfy the emergency need. The Administrator will review the Participant’s request to determine whether, in his discretion, a Financial
Emergency has occurred and, if so, the amount reasonably needed to satisfy the emergency need. The Participant must provide the Administrator with all relevant information needed to make these determinations. All deferrals of Compensation and/or
Bonuses authorized by the Participant for the remainder of the Plan Year shall be canceled before any withdrawal is made hereunder on account of the Financial Emergency. 
  

 -24- 

 In his discretion, the Administrator shall authorize a withdrawal to the Participant in the amount
reasonably necessary to satisfy the Financial Emergency. No Investment Experience shall be credited (or charged) to the Participant’s accounts during an applicable accounting period with respect to the amount withdrawn to satisfy the Financial
Emergency. Withdrawals will be made with respect to the first amounts available for distribution for each Plan Year; provided, however, if access must be had to amounts credited under the Plan for a Plan Year where all amounts credited with respect
to such Plan Year will not be exhausted, amounts will be withdrawn pro rata between and among any hypothetical investment funds that may be operative with respect to such year. Payment will be made in a lump sum within sixty (60) days of the
Administrator’s authorization. 
 6.8. Payor of Deferred Compensation. Benefits payable under the Plan with respect to a
Participant’s accounts maintained under the Deferred Compensation Ledger shall be the obligation of, and payable by, the Company and any Subsidiary that employed that Participant with respect to the periods for which deferrals are made
hereunder; provided, however, should the Company pay any portion of a Subsidiary’s obligation hereunder, the Company may seek reimbursement from any Subsidiary which employed the Participant. Adoption and maintenance of the Plan by the Company
and any Subsidiary shall not, for that reason, create a joint venture or partnership relationship between or among such entities for purposes of payment of benefits under the Plan or for any other purpose. 
  

 -25- 

 Neither the Company nor any Subsidiary shall set aside any assets or otherwise create any type of fund in
which any Participant, or any person claiming under such Participant, has an interest other than that of an unsecured general creditor of the Company or Subsidiary, or which would provide any Participant, or any person claiming under such
Participant, with a legally enforceable right to priority over any general creditor of the Company or Subsidiary in the event of insolvency of the Company or Subsidiary. For all purposes of the Plan, the Company or Subsidiary shall be considered
insolvent if it is unable to pay its debts as they mature or if it is subject to a pending proceeding as a debtor under the U.S. Bankruptcy Code. 
 During any period in which a Trust which conforms to the prior paragraph is in existence, benefits payable under the Plan shall be payable by the Trustee in accordance with the terms, provisions, conditions and limitations of the Plan and
Trust. To the extent that any distribution described in the immediately preceding sentence does not fully satisfy the obligation for any benefit due under the Plan, the Company or Subsidiary shall remain fully liable and obligated for full payment
of any unpaid benefit due and payable under the Plan. 
 6.9. Claims Procedures. A Participant or Beneficiary (“Claimant”
for purposes of this section) must file a written claim to receive benefits payable under the Plan. The Administrator or Trustee, as applicable, shall pay benefits due under the Plan in accordance with the terms of the various Deferral Agreements. A
decision on a Claimant’s claim for benefits shall be made within ninety (90) days (forty-five (45) days for disability benefits) after receipt of the claim, unless special circumstances require an extension of time of not more than an
additional 90 days (thirty (30) days for disability benefits). In the event an extension of time is necessary, the Claimant shall be notified of the delay during the first 90 day (45 day for disability benefits) period. 
  

 -26- 

 In the event that a claim is wholly or partially denied, the Claimant shall receive written notification
of the denial, which shall include the specific reason or reasons for the adverse determination, reference to the specific Plan provisions on which the determination is based, a description of any additional information necessary to perfect the
claim and why such information is necessary, and the Plan’s review procedures. If written notice of the denial of a claim has not been furnished to a claimant, and such claim has not been granted within the time prescribed above (including any
applicable extension), the claim for benefits shall be deemed to be denied. 
 If a claim is denied, a Claimant desiring a review must submit
a written request to the Compensation Committee requesting such a review within sixty (60) days (one-hundred eighty (180) days for a claim involving disability benefits) of the date of the denial, which includes whatever comments or
arguments that the Claimant wishes to make. Incident to the review, the Claimant may represent himself or appoint a representative. Upon request and free of charge, a Claimant will be provided reasonable access to and copies of all documents,
records and other information relevant to the Claimant’s claim. The Compensation Committee, in its discretion, may schedule any meeting with the Claimant and/or the Claimant’s representative that it deems to be necessary or appropriate to
facilitate or expedite its review of the amount in dispute. 
 If a request for review is not timely filed, the Plan’s initial
determination will be final. For claims other than those involving disability benefits, if a request for review is timely filed, the Compensation Committee must render its decision under normal circumstances within sixty (60) days after any
appeal is received, unless special circumstances require an extension of time of not more than an additional 60 days (in which event the claimant shall be notified during the first 60-day period). 
  

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 For disability benefit claims, the Compensation Committee or its delegate shall promptly, within 45 days
after any appeal is received, notify the claimant of its decision. All appeal decisions of the Compensation Committee shall be in writing and shall include specific reasons for whatever action has been taken, as well as the Plan provisions on which
the decision is based. A claimant who has exhausted the Plan’s claims and appeals procedures and disagrees with the Plan’s decision (or lack thereof) may file suit in Federal court following an adverse benefit determination on appeal or
the lack of a timely response. 
 6.10. Facility of Payments. Every person receiving or claiming benefits under the Plan shall be
conclusively presumed to be mentally competent until the date on which the Administrator receives written notice, in a form and manner acceptable to the Administrator, that such person is incompetent, and that a guardian, conservator, or other
person legally vested with the care of such person’s person or estate has been appointed; provided, however, that if the Administrator shall find that any person to whom a benefit is payable under the Plan is unable to care for such
person’s affairs because of incompetency, any payment due (unless a prior claim therefore shall have been made by a duly appointed legal representative) may be paid as provided in the Qualified Plan. Any such payment so made shall be a complete
discharge of liability therefore under the Plan. 
  

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 6.11. Beneficiary Designations. Each Employee or Outside Director upon becoming a Participant
shall file with the Administrator a designation of one or more Beneficiaries to whom benefits otherwise payable to the Participant shall be made in the event of his death prior to the complete distribution of the amount credited to his accounts
under the Deferred Compensation Ledger. Such designation shall be effective when received in writing by the Administrator subject to the subsequent provisions of this paragraph. Subject to the following provisions of this Section 6.11, a
Participant may, from time to time, revoke or change his Beneficiary designation without the consent of any prior Beneficiary by filing a new designation with the Administrator. The last valid designation received by the Administrator shall be
controlling; provided, however, that no Beneficiary designation, or change or revocation thereof, shall be effective unless received by the Administrator prior to the Participant’s death and in no event shall it be effective as of a date prior
to its receipt. Notwithstanding any contrary provision of this paragraph, no Beneficiary designation made by a married Participant, other than one under which the spouse of such Participant is designated as the sole Beneficiary, shall be valid
without the written consent of the spouse of such Participant. Unpaid amounts credited to the accounts maintained under the Deferred Compensation Ledger for a Participant who dies prior to receiving such amounts in full shall be paid to the deceased
Participant’s Beneficiary as soon as administratively practicable following the Participant’s death in the form of a lump sum cash distribution. 
 If no valid Beneficiary designation is in effect at the time of a Participant’s death, or if no designated Beneficiary survives the Participant, or if such designation conflicts with applicable law, the payment
of the Participant’s death benefits under the Plan shall be made to the Participant’s estate. If the Administrator is in doubt as to the right of any person to receive such amount, the Administrator may direct that the amount be paid into
any court of competent jurisdiction, and such payment shall be a full and complete discharge of any liability or obligation of the Plan, Trust, Company, Administrator, Compensation Committee, Board and other interested parties, therefore.

  

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 6.12. Withholding of Taxes. The Company or, if appropriate, the Trustee, shall withhold from the
amount of benefits payable under the Plan all federal, state and local taxes required to be withheld under any applicable law or governmental regulation or ruling. Without limiting the scope of the immediately preceding sentence, the Employee
portion of any employment taxes due on deferrals hereunder shall be withheld from the Participant’s compensation or under such other arrangement as may be acceptable to the 
 Administrator. 
 ARTICLE VII 
 RIGHTS OF PARTICIPANTS 
 7.1. Annual Statement to Participants. As soon as practicable after
the end of each Plan Year, or at such other time as the Administrator determines to be appropriate, the Administrator shall cause to be prepared and delivered to each Participant a written statement showing such information as the Administrator
decides is appropriate. 
 7.2. Limitation of Rights. Nothing in this Plan shall be construed to: 
 (a) Give any individual who is employed by the Company or any Subsidiary any right to be a Participant in the Plan unless and until such
person meets applicable eligibility requirements; 
 (b) Give a Participant or any other person any interests or rights, other
than as an unsecured general creditor of the Company or any Subsidiary, with respect to the Compensation, Bonuses and Investment Experience credited or charged to his accounts under the Deferred Compensation Ledger until such amounts are actually
distributed to him; 
  

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 (c) Limit in any way the right of the Company or any Subsidiary to terminate a
Participant’s Employment with the Company or any Subsidiary; 
 (d) Give a Participant or any other person any interest
in any fund or in any specific asset of the Company or any Subsidiary; 
 (e) Be evidence of any agreement or understanding,
express or implied, that the Company or any Subsidiary will employ a Participant in any particular position, at any particular rate of remuneration, or for any particular time period; or 
 (f) Create a fiduciary relationship between the Participant and the Company, Subsidiary, Compensation Committee, Board, and/or
Administrator. 
 7.3. Nonalienation of Benefits. No right or benefit under this Plan shall be subject to anticipation, alienation,
sale, assignment, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, assign, pledge, encumber, or charge the same will be void and without effect. No right or benefit hereunder shall in any manner be liable for or subject
to any debts, contracts, liabilities or torts of the person entitled to such benefits. If any Participant or Beneficiary hereunder shall become bankrupt or attempt to anticipate, alienate, assign, sell, pledge, encumber, or charge any right or
benefit hereunder, or if any creditor shall attempt to subject the same to a writ of garnishment, attachment, execution, sequestration, or any other form of process or involuntary lien or seizure, then such right or benefit shall be held by the
Company for the sole benefit of the Participant or Beneficiary, his spouse, children, or other dependents, or any of them, in such manner as the Administrator shall deem proper, free and clear of the claims of any party. 
  

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 The first paragraph of this section shall not preclude (i) the Participant from designating a
Beneficiary to receive any benefit payable hereunder upon his death, or (ii) the executors, administrators, or other legal representatives of the Participant or his estate from assigning any rights hereunder to the person or persons entitled
thereto. In addition, the Plan will honor a “qualified domestic relations order” under Section 414(p) of the Code to the extent required by law. 
 7.4. Prerequisites to Benefits. No Participant, nor any person claiming through a Participant, shall have any right or interest in the Plan, or any benefits hereunder, unless and until all the terms, conditions
and provisions of the Plan which affect such Participant or such other person shall have been complied with as specified herein. 
 ARTICLE
VIII 
 MISCELLANEOUS 
 8.1. Amendment or Termination of the Plan. The Board may amend or terminate the Plan at any time effective as of the date specified by the Board, including amendments with a retroactive effective date; provided, however, the
provisions of Section 8.2 may not be amended without the consent of at least two-thirds of all affected Participants. In addition, unless the particular Participant (or his Beneficiary in the event of the Participant’s death) consents in
writing, no such amendment or termination shall adversely affect any rights of such Participant or Beneficiary to any amounts which are required to be allocated and credited hereunder to his accounts maintained under the Deferred Compensation
Ledger, to the extent credited as of the date of the amendment. However, in the event that incident to any such amendment or termination, payment of any benefit accrued under the Plan is accelerated, the acceleration of payment will be made in
compliance with 26 C.F.R. §1.409A-3(j)(4)(ix). Such 

  

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benefits shall be paid by the Company or Subsidiary if payment of the benefit would otherwise be made by the Trustee from assets of the Trust under
circumstances which would at any time when the Company or Subsidiary is insolvent as defined in Section 6.8 treat the Participant, or any person claiming under the Participant, as other than a general unsecured creditor of the Company or
Subsidiary or (ii) provide the Participant, or any person claiming under the Participant, with a legally enforceable right to priority over any general unsecured creditor of the Company or Subsidiary. Notwithstanding the foregoing, the Board
may amend the Plan at any time to change the hypothetical investment funds referenced in Section 5.2, with respect to future crediting of Investment Experience to amounts previously credited to Participant accounts. 
 8.2. Powers of the Company. The existence of outstanding and unpaid benefits under the Plan shall not affect in any way the right or power of the
Company or any Subsidiary to make or authorize any adjustments, recapitalization, reorganization or other changes in the Company’s or Subsidiary’s capital structure or in its business, or any merger or consolidation of the Company or any
Subsidiary, or any issue of bonds, debentures, common or preferred stock, or the dissolution or liquidation of the Company or any Subsidiary, or any sale or transfer of all or any part of their assets or business, or any other act or corporate
proceeding, whether of a similar character or otherwise. 
 8.3. Waiver. No term or condition of this Plan shall be deemed to have
been waived, nor shall there be an estoppel against the enforcement of any provision of this Plan, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver unless
specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.

  

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 Any waiver by either party hereto of a breach of any provision of this Plan by the other party shall not
operate or be construed as a waiver by such party of any subsequent breach thereof. 
 8.4. Separability. In the event that any
provision of this Plan is declared invalid and not binding on the parties hereto in a decree or order issued by a court of competent jurisdiction, such declaration shall not affect the validity of the other provisions of this Plan to which such
declaration of invalidity does not relate and such other provisions shall remain in full force and effect. 
 8.5. Gender, Tense and
Headings. Whenever the context requires, words of the masculine gender used herein shall include the feminine and neuter, and words used in the singular shall include the plural. The words ‘hereof’, ‘hereunder’,
‘herein,’ and similar compounds of the word ‘here’ shall refer to the entire Plan and not to any particular term or provision of the Plan. Headings of Articles and Sections, as used herein, are inserted solely for convenience and
reference and shall not affect the meaning, interpretation or scope of the Plan. 
 8.6. Governing Law. The Plan shall be subject to
and governed by the laws of the Commonwealth of Pennsylvania (other than such laws relating to choice of laws), except to the extent preempted by ERISA or other applicable federal law. 
 8.7. Notice. Any notice required or permitted to be given under this Plan shall be sufficient if in writing and hand-delivered with appropriate
proof of same, or sent by registered or certified mail, return receipt requested, to the Company, Administrator, Compensation Committee, Participant, Beneficiary or other person or entity at the address last furnished by such person or entity. Such
notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification. 
  

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 IN WITNESS WHEREOF, this Plan document is executed this 10th day of October, 2008 by a duly authorized
officer of the Company, to be effective as of January 1, 2009. 
  

			
	SUSQUEHANNA BANCSHARES, INC.
		
	By:	 	/s/ Edward Balderston, Jr.
	Name:	 	Edward Balderston , Jr.
	Title:	 	 Executive Vice President &
 Chief Administration
Officer

  

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