Document:

Application for Letter of Credit and Reimbursement Agreement

 Exhibit 10.02 

 
  
 APPLICATION FOR LETTER OF CREDIT AND 

REIMBURSEMENT AGREEMENT 
 BETWEEN 
 JPMORGAN CHASE
BANK, N.A. 
 AND 

NUSTAR LOGISTICS, L.P. 

DATED AS OF DECEMBER 29, 2010 

 
  

 APPLICATION FOR LETTER OF
CREDIT AND 
 REIMBURSEMENT AGREEMENT

 APPLICATION FOR LETTER OF CREDIT
AND REIMBURSEMENT AGREEMENT, dated as of December 29, 2010 (as may be amended, supplemented or otherwise modified from time to time, this “Agreement”), is
by and between NUSTAR LOGISTICS, L.P., a Delaware limited partnership (including its successors and assigns, the “Applicant”), and JPMORGAN CHASE BANK, N.A., a national banking association (including its
successors and assigns, the “Bank”). 
 W I T N E S S E T H: 

WHEREAS, the Applicant desires to secure a source of funds to be devoted exclusively to the payment by the Trustee (such term and each
other capitalized term used herein having the meaning set forth in Article One hereof), when and as due, of the principal of and interest on the Bonds (or the portion of the Purchase Price (as defined in the Indenture) corresponding to the principal
of and interest on the Bonds), and has applied to the Bank for issuance by the Bank of the Letter of Credit in an Original Stated Amount of $86,117,809. 
 WHEREAS, the Bank has agreed to issue the Letter of Credit subject to the following terms and conditions. 
 Accordingly, the Applicant and the Bank hereby agree as follows: 
 Article One

 Definitions 
 Section 1.1. Definitions. As used in this Agreement: 
 “Agreement” -
shall have the meaning set forth in the preamble hereto. 
 “Applicant” - shall have the meaning set forth in the preamble
hereto. 
 “Available Amount” - shall have the meaning set forth in the Letter of Credit. 

“Bank” - shall have the meaning set forth in the preamble hereto. 
 “Bond Documents” - means the Indenture, the Lease Agreement, the Remarketing Agreement, each dated as of December 1, 2010, and the Official Statement, dated December 29, 2010
with respect to the Bonds, and the Bonds. 
 “Bonds” - means the $85,000,000 aggregate principal amount of the Issuer’s
Revenue Bonds (NuStar Logistics, L.P. Project) Series 2010B. 
 “Business Day” - shall have the meaning set forth in the Letter
of Credit. 

 “Cap Interest Rate” - shall have the meaning set forth in the Letter of Credit. 

“Closing Date” - means the date on which the Letter of Credit is issued. 
 “Code” - means the Internal Revenue Code of 1986, and any successor statute or statutes thereto. 
 “Costs” - is defined in Section 7.3 hereof. 
 “Credit
Agreement” - means the 5-year Revolving Credit Agreement dated as of December 10, 2007 among the Applicant, the MLP, the Bank, and the agents and lenders party thereto, as amended by the First Amendment to 5-Year Revolving Credit
Agreement dated as of August 18, 2010 and as may be further amended, supplemented or otherwise modified from time to time. 

“Drawing Document” - is defined in Section 7.4 hereof. 
 “Event of Default” - is defined in Section 6.1 hereof. 

“Governmental Authority” - means any nation or government, any state, department, agency or other political subdivision thereof, and any
entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to any government, and any corporation or other entity owned or controlled (through stock or capital ownership or otherwise) by any of the
foregoing. 
 “Indemnified Person” - is defined in Section 7.3 hereof. 

“Indenture” - means the Indenture of Trust dated as of December 1, 2010 between the Issuer and the Trustee, relating to the Bonds,
as amended, supplemented or otherwise modified from time to time. 
 “Instruction” - is defined in Section 7.3 hereof.

 “ISP” or “ISP98” means, International Standby Practices 1998 (International Chamber of Commerce Publication
No. 590). 
 “Issuer” - means the Parish of St. James, State of Louisiana. 

“Lease Agreement” - means the Lease Agreement dated as of December 1, 2010 between the Issuer and the Applicant, as amended,
supplemented or otherwise modified from time to time. 
 “Letter of Credit” - means the irrevocable transferable direct pay
letter of credit issued by the Bank for the account of the Applicant in favor of the Trustee, in the form of Appendix I hereto with appropriate insertions, as amended, supplemented or otherwise modified from time to time. 

“MLP” - NuStar Energy L.P., a Delaware limited partnership. 
 “Notice of Extension” - is defined in Section 2.7 hereof. 

  
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 “Obligations” - means the fees relating to the Letter of Credit, any and all obligations of
the Applicant to reimburse the Bank for any drawings under the Letter of Credit, and all other obligations of the Applicant to the Bank arising under or in relation to this Agreement. 
 “Original Stated Amount” - is defined in Section 2.1 hereof. 

“Outstanding” or “Bonds Outstanding” - shall have the meaning set forth in the Indenture. 

“Person” - means an individual, a corporation, a partnership, an association, a trust or any other entity or organization, including a
government or political subdivision or any agency or instrumentality thereof. 
 “Pledged Bonds” - shall have the meaning set
forth in the Indenture and shall include the Bonds described in Section 7.20 hereof. 
 “Potential Default” - means an
event or condition which, but for the lapse of time or the giving of notice, or both, would constitute an Event of Default. 
 “Related
Documents” - means this Agreement, the Letter of Credit, the Credit Agreement, the Bond Documents, and any other agreement or instrument relating thereto. 
 “Remarketing Agent” - means SunTrust Robinson Humphrey, Inc., a Tennessee corporation, as Remarketing Agent under the Indenture and the Remarketing Agreement, and its successors and
assigns pursuant thereto. 
 “Remarketing Agreement” - means the Remarketing Agreement dated as of December 1, 2010,
between the Remarketing Agent and the Applicant, as amended, supplemented or otherwise modified from time to time, and any successor agreement thereto entered into by the Applicant and a successor Remarketing Agent. 

“Standard Letter of Credit Practice” means, for the Bank, any domestic or foreign law or letter of credit practices applicable in the
city in which the Bank issued the Letter of Credit. Such practices shall be (i) of banks that regularly issue letters of credit in the particular city and (ii) required or permitted under the ISP. 

“Stated Expiration Date” - shall have the meaning set forth in the Letter of Credit. 

“Trustee” - means U.S. Bank National Association, as Trustee under the Indenture, and any successor trustee thereunder. 

  
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 Article Two 
 Letter of Credit 
 Section 2.1. Issuance of Letter of Credit. Upon the
terms, subject to the conditions and relying upon the representations and warranties set forth in this Agreement or incorporated herein by reference, the Bank agrees to issue the Letter of Credit. The Letter of Credit shall be in the original stated
amount of U.S. $86,117,809 (the “Original Stated Amount”), which is the sum of (i) the principal amount of Bonds outstanding on the Closing Date, plus (ii) interest thereon computed as set forth in the Letter of
Credit at the Cap Interest Rate for a period of forty (40) days. 
 Section 2.2. Letter of Credit Drawings. The
Trustee is authorized to make drawings under the Letter of Credit in accordance with the terms thereof. The Applicant hereby directs the Bank to make payments under the Letter of Credit in the manner therein provided. The Applicant hereby
irrevocably approves reductions and reinstatements of the Available Amount as provided in the Letter of Credit. 

Section 2.3. Reimbursement of Drawings Under the Letter of Credit. The Applicant agrees to reimburse the Bank for the full
amount of all drawings made under the Letter of Credit in accordance with the provisions of the Credit Agreement. 

Section 2.4. Fees. The Applicant hereby agrees to pay, or cause to be paid to the Bank: 

(a) on the Closing Date, an issuance fee of $500; 
 (b) on the date of each drawing made under the Letter of Credit, a drawing fee in the amount of $250; 
 (c) on the date of any extension or amendment of the Letter of Credit, an extension or amendment fee in the amount of $250; 
 (d) on the date of any transfer of the Letter of Credit, a transfer fee in the amount of $1,000; and 
 (e) all fees related to the Letter of Credit that are required by Section 2.12(b) of the Credit Agreement. 
 Section 2.5. Method and Time of Payment; Etc. All payments to be made by the Applicant under this Agreement shall be made in accordance with the provisions of the Credit Agreement. 

Section 2.6. Computation of Interest. All computations of interest (including default interest) payable by the Applicant
under this Agreement shall be made in accordance with the provisions of the Credit Agreement. 
 Section 2.7. Extension
of Stated Expiration Date. At any time there shall remain no less than ninety (90) days to the then current Stated Expiration Date of the Letter of Credit, the Applicant may request the Bank to extend the then current Stated Expiration Date
for a period of one year. If the Bank, in its sole discretion, elects to extend the Stated Expiration Date then in effect, the Bank shall give written notice of such election to extend to the Applicant and the Trustee within thirty (30) days of
receipt of such extension request from the Applicant, it being understood and agreed that the failure of the Bank to notify the Applicant and the Trustee of any decision within such 30-day period shall be deemed to be a rejection of such request and
the Bank shall not incur any liability or responsibility whatsoever by reason of the Bank’s failure to notify such parties within such 30-day period. The Bank’s consent to any such extension of the stated expiration date shall be
conditioned upon the preparation, execution and delivery of documentation in form and substance satisfactory to the Bank and its counsel.. Any date to which the Stated Expiration Date has been extended in accordance with this Section 2.7 may be
extended in like manner. 

  
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 Section 2.8. Amendments upon Extension. Upon any extension of the Stated
Expiration Date pursuant to Section 2.7 of this Agreement, the Bank and the Applicant each reserves the right to renegotiate any provision hereof. 
 Section 2.9. Electronic Transmissions. The Bank is authorized to accept and process any amendments, transfers, assignments of proceeds, Instructions, consents, waivers and all documents
relating to the Letter of Credit which are sent to Bank by electronic transmission, including SWIFT, electronic mail, telex, telecopy, telefax, courier, mail or other computer generated telecommunications and such electronic communication shall have
the same legal effect as if written and shall be binding upon and enforceable against the Applicant. The Bank may, but shall not be obligated to, require authentication of such electronic transmission or that the Bank receives original documents
prior to acting on such electronic transmission. 
 Section 2.10. Substitute Credit Facility. Any substitution for
or replacement of the Letter of Credit by a Substitute Credit Facility (as defined in the Indenture) shall be effectuated by the Applicant in accordance with the applicable provisions of the Lease, the Indenture and the Letter of Credit, and,
without limitation to the foregoing, the Applicant shall provide to the Bank all notices required or contemplated to be given by the Applicant to the Bank under the terms of the Lease, the Indenture or the Letter of Credit with respect to such a
replacement or substitution. 
 Article Three 
 Conditions Precedent 
 Section 3.1. Conditions Precedent to Issuance of
Letter of Credit. The obligation of the Bank to issue the Letter of Credit is subject to the satisfaction of all of the following conditions precedent on or prior to the Closing Date: 

(a) the Bank (or its counsel) shall have received this Agreement, executed and delivered by a duly authorized officer of the Applicant
and by the Bank; 
 (b) the representations and warranties of the Applicant and the MLP set forth in the Credit Agreement shall
be true and correct on and as of the Closing Date (unless such representations and warranties are stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct as of such earlier date);

 (c) at the time of and immediately after giving effect to the issuance of the Letter of Credit, no Default (as defined in the
Credit Agreement) shall have occurred and be continuing; 

  
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 (d) the Bank (or its counsel) shall have received a certificate of the secretary or an
assistant secretary of the Applicant certifying the names and true signatures of the officers of the Applicant authorized to sign this Agreement; 
 (e) the Bank (or its counsel) shall have received a certificate of an officer of the Applicant certifying that the conditions precedent set forth in clauses (b) and (c) above have been
satisfied; 
 (f) the Bank (or its counsel) shall have received evidence of filing or simultaneous filing of completed Uniform
Commercial Code financing statements from the Applicant, in such forms and places as the Bank shall reasonably require; and 

(g) the form of the Letter of Credit attached as Appendix I to this Agreement shall be in form and substance satisfactory to the
Bank. 
 Article Four 
 Representations and Warranties 
 In order to induce the Bank to enter into this
Agreement, the Applicant hereby makes to the Bank the same representations and warranties as are set forth by it in the Credit Agreement, which representations and warranties, as well as the related defined terms contained therein, are hereby
incorporated herein by reference for the benefit of the Bank with the same effect as if each and every such representation and warranty and defined term were set forth herein in its entirety and were made as of the date hereof (unless such
representations and warranties are stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct as of such earlier date). 

Article Five 

Covenants 
 The
Applicant will do the following so long as any amounts may be drawn under the Letter of Credit or any Obligations remain outstanding under this Agreement, unless the Bank shall otherwise consent in writing: 

Section 5.1 Credit Agreement Covenants. The Applicant will comply with the covenants set forth in the Credit Agreement in
accordance with the terms thereof. Such covenants, as well as the related defined terms contained therein, are hereby incorporated herein by reference for the benefit of the Bank with the same effect as if each and every such covenant and defined
term were set forth herein in its entirety and were made as of the date hereof. 
 Section 5.2 Amendments to Bond
Documents. The Applicant will not amend or consent to any amendment of any Bond Document without the prior written consent of the Bank. 

  
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 Article Six 
 Defaults 
 Section 6.1. Events of Default and Remedies. If any Event
of Default (as defined in the Credit Agreement) shall occur, each such event shall be an “Event of Default” under this Agreement. 
 Section 6.2. Remedies. Upon the occurrence of any Event of Default, the Bank may pursue any rights and remedies that it may have under the Credit Agreement and the other Related Documents, as
well as any other remedies available at law or in equity. 
 Article Seven 

Miscellaneous 

Section 7.1. No Deductions; Increased Costs. The provisions of Section 2.15 and Section 2.17 of the Credit
Agreement, as well as the related defined terms contained therein, are hereby incorporated herein by reference with the same effect as if such provisions and defined terms were set forth herein in their entirety. 

Section 7.2. Right of Setoff; Other Collateral. 
 (a) Upon the occurrence and during the continuance of an Event of Default, the Bank is hereby authorized at any time and from time to time without notice to the Applicant (any such notice being expressly
waived by the Applicant), and to the fullest extent permitted by law, to setoff, to exercise any banker’s lien or any right of attachment and apply any and all balances, credits, deposits (general or special, time or demand, provisional or
final), accounts or monies at any time held and other indebtedness at any time owing by the Bank to or for the account of the Applicant (irrespective of the currency in which such accounts, monies or indebtedness may be denominated and the Bank is
authorized to convert such accounts, monies and indebtedness into United States dollars) against any and all of the Obligations of the Applicant, whether or not the Bank shall have made any demand for any amount owing to the Bank by the Applicant.

 (b) The rights of the Bank under this Section 7.2 are in addition to, in augmentation of, and, except as specifically
provided in this Section 7.2, do not derogate from or impair, other rights and remedies (including, without limitation, other rights of setoff) which the Bank may have. 

  
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 Section 7.3. Indemnity. The Applicant shall indemnify and hold harmless the
Bank, its parent, and correspondents and each of their respective directors, officers, employees and agents (each, including the Bank, an “Indemnified Person”) from and against any and all claims, suits, judgments, costs,
losses, fines, penalties, damages, liabilities, and expenses, including expert witness fees and legal fees, charges and disbursements of any counsel (including in-house counsel fees and allocated costs) for any Indemnified Person
(“Costs”), arising out of, in connection with, or as a result of: (i) the Letter of Credit or any pre-advice of its issuance; (ii) any transfer, sale, delivery, surrender, or endorsement of any Drawing Document at
any time(s) held by any Indemnified Person in connection with the Letter of Credit; (iii) any action or proceeding arising out of or in connection with the Letter of Credit, this Agreement or any Related Document (whether administrative,
judicial or in connection with arbitration), including any action or proceeding to compel or restrain any presentation or payment under the Letter of Credit, or for the wrongful dishonor of or honoring a presentation under the Letter of Credit;
(iv) any independent undertakings issued by the beneficiary of the Letter of Credit; (v) any unauthorized communication or instruction (whether oral, telephonic, written, telegraphic, facsimile or electronic) (each an
“Instruction”) regarding the Letter of Credit or error in computer transmission; (vi) an adviser, confirmer or other nominated person seeking to be reimbursed, indemnified or compensated; (vii) any third party
seeking to enforce the rights of an applicant, beneficiary, nominated person, transferee, assignee of proceeds of the Letter of Credit; (viii) the fraud, forgery or illegal action of parties other than the Indemnified Person; (ix) the
enforcement of this Agreement or any rights or remedies under or in connection with this Agreement, a Related Document or the Letter of Credit; (x) the acts or omissions, whether rightful or wrongful, of any present or future de
jure or de facto governmental or regulatory authority or cause or event beyond the control of such Indemnified Person; in each case, including that resulting from Bank’s own negligence, provided, however, that
such indemnity shall not be available to any Person claiming indemnification under (i) through (x) above to the extent that such Costs are found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted
directly from the gross negligence or willful misconduct of the Indemnified Person claiming indemnity. If and to the extent that the obligations of Applicant under this paragraph are unenforceable for any reason, Applicant shall make the maximum
contribution to the Costs permissible under applicable law. 
 Section 7.4. Obligations Absolute. The obligations of
the Applicant under this Agreement shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances whatsoever, including, without limitation: (i) any lack of
validity, enforceability or legal effect of this Agreement or any Related Document, or any term or provision herein or therein; (ii) payment against presentation of any draft, demand or claim for payment under the Letter of Credit or other
document presented for purposes of drawing under the Letter of Credit (a “Drawing Document”) that does not comply in whole or in part with the terms of the Letter of Credit or which proves to be fraudulent, forged or invalid
in any respect or any statement therein being untrue or inaccurate in any respect, or which is signed, issued or presented by a Person (or a transferee of such Person) purporting to be a successor or transferee of the beneficiary of the Letter of
Credit; (iii) the Bank or any of its branches or affiliates being the beneficiary of the Letter of Credit; (iv) the Bank or any correspondent honoring a drawing against a Drawing Document up to the amount available under the Letter of
Credit even if such Drawing Document claims an amount in excess of the amount available under the Letter of Credit; (v) the existence of any claim, set-off, defense or other right that the Applicant or any other Person may have at any time
against any beneficiary, any assignee of proceeds, the Bank or any other Person; (vi) the Bank or any correspondent having previously paid against fraudulently signed or presented Drawing Documents (whether or not the Applicant shall have
reimbursed the Bank for such drawing); and (vii) any other event, circumstance or conduct whatsoever, whether or not similar to any of the foregoing, that might, but for this paragraph, constitute a legal or equitable defense to or discharge
of, or provide a right of set-off against, the Applicant’s obligations hereunder (whether against the Bank, the beneficiary or any other Person); provided, however, that subject to Section 7.5 hereof, the foregoing shall not
exculpate the Bank from such liability to the Applicant as may, be finally, judicially determined in an independent action or proceeding brought by the Applicant against the Bank following payment of the Applicant’s obligations under this
Agreement. 

  
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 Section 7.5. Liability of the Bank. 

(a) The liability of the Bank (or any other Indemnified Person) under, in connection with and/or arising out of this Agreement, any
Related Document or the Letter of Credit (or any pre-advice), regardless of the form or legal grounds of the action or proceeding, shall be limited to any direct damages suffered by the Applicant that are caused directly by Bank’s gross
negligence or willful misconduct in (i) honoring a presentation that does not at least substantially comply with the Letter of Credit, (ii) failing to honor a presentation that strictly complies with the Letter of Credit or
(iii) retaining Drawing Documents presented under the Letter of Credit. In no event shall the Bank be deemed to have failed to act with due diligence or reasonable care if the Bank’s conduct is in accordance with Standard Letter of Credit
Practice or in accordance with this Agreement. The Applicant’s aggregate remedies against the Bank and any Indemnified Person for wrongfully honoring a presentation under the Letter of Credit or wrongfully retaining honored Drawing Documents
shall in no event exceed the aggregate amount paid by the Applicant to the Bank in respect of an honored presentation under the Letter of Credit, plus interest. Notwithstanding anything to the contrary herein, the Bank and the other Indemnified
Persons shall not, under any circumstances whatsoever, be liable for any punitive, consequential, indirect or special damages or losses regardless of whether the Bank or any Indemnified Person shall have been advised of the possibility thereof or of
the form of action in which such damages or losses may be claimed. The Applicant shall take action to avoid and mitigate the amount of any damages claimed against the Bank or any Indemnified Person, including by enforcing its rights in the
underlying transaction. Any claim by the Applicant for damages under or in connection with this Agreement, any Related Document or the Letter of Credit shall be reduced by an amount equal to the sum of (i) the amount saved by the Applicant as a
result of the breach or alleged wrongful conduct and (ii) the amount of the loss that would have been avoided had the Applicant mitigated damages. 
 (b) Without limiting any other provision of this Agreement, the Bank and each other Indemnified Person (if applicable), shall not be responsible to the Applicant for, and the Bank’s rights and
remedies against the Applicant and the Applicant’s obligation to reimburse the Bank shall not be impaired by: (i) honor of a presentation under the Letter of Credit which on its face substantially complies with the terms of the Letter of
Credit; (ii) honor of a presentation of any Drawing Documents which appear on their face to have been signed, presented or issued (X) by any purported successor or transferee of any beneficiary or other party required to sign, present or
issue the Drawing Documents or (Y) under a new name of the beneficiary; (iii) acceptance as a draft of any written or electronic demand or request for payment under the Letter of Credit, even if nonnegotiable or not in the form of a draft,
and may disregard any requirement that such draft, demand or request bear any or adequate reference to the Letter of Credit; (iv) the identity or authority of any presenter or signer of any Drawing Document or the form, accuracy, genuineness,
or legal effect of any presentation under the Letter of Credit or of any Drawing Documents; (v) disregard of any non-documentary conditions stated in the Letter of Credit; (vi) acting upon any Instruction which it, in Good Faith, believes
to have been given by a Person or entity authorized to give such Instruction; (vii) any errors, omissions, interruptions or delays in transmission or delivery of any message, advice or document (regardless of how sent or transmitted) or for
errors in interpretation of technical terms or in translation; (viii) any delay in giving or failing to give any notice; (ix) any acts, omissions or fraud by, or the solvency of, any beneficiary, any nominated Person or any other Person;
(x) any breach of contract between the beneficiary and the Applicant or any of the parties to the underlying transaction; (xi) assertion or waiver of any provision of the ISP which primarily benefits an issuer of a letter of credit,
including, any requirement that any Drawing Document be presented to it at a particular hour or place; (xii) payment to any paying or negotiating bank (designated or permitted by the terms of the Letter of Credit) claiming that it rightfully
honored or is entitled to reimbursement or indemnity under Standard Letter of Credit Practice; (xiii) dishonor of any presentation upon or during any Event of Default or for which the Applicant is unable or unwilling to reimburse or indemnify
the Bank (provided that the Applicant acknowledges that if the Bank shall later be required to honor the presentation, the Applicant shall be liable therefore in accordance with Article 2 hereof); and (xiv) acting or failing to act as
required or permitted under Standard Letter of Credit Practice. For purposes of this Section 7.5(b), “Good Faith” means honesty in fact in the conduct of the transaction concerned. 

  
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 (c) The Applicant shall notify the Bank of (i) any noncompliance with any Instruction,
any other irregularity with respect to the text of the Letter of Credit or any amendment thereto or any claim of an unauthorized, fraudulent or otherwise improper Instruction, within three (3) Business Days of the Applicant’s receipt of a
copy of the Letter of Credit or amendment and (ii) any objection the Applicant may have to the Bank’s honor or dishonor of any presentation under the Letter of Credit or any other action or inaction taken or proposed to be taken by the
Bank under or in connection with this Agreement or the Letter of Credit, within ten (10) Business Days after the Applicant receives notice of the objectionable action or inaction. The failure to so notify the Bank within said times shall
discharge the Bank from any loss or liability that the Bank could have avoided or mitigated had it received such notice, to the extent that the Bank could be held liable for damages hereunder; provided, that, if the Applicant shall not
provide such notice to the Bank within three (3) Business Days of the date of receipt in the case of clause (i) or ten (10) Business Days from the date of receipt in the case of clause (ii), Bank shall have no liability whatsoever for
such noncompliance, irregularity, action or inaction and the Applicant shall be precluded from raising such noncompliance, irregularity or objection as a defense or claim against Bank. 

Section 7.6. Survival of this Agreement. All covenants, agreements, representations and warranties made in this Agreement
shall survive the issuance by the Bank of the Letter of Credit and shall continue in full force and effect so long as the Letter of Credit shall be unexpired or any Obligations shall be outstanding and unpaid. The obligation of the Applicant to
reimburse the Bank pursuant to Sections 7.1, 7.3 and 7.13 hereof shall survive the payment of the Bonds and termination of this Agreement. 
 Section 7.7. Modification of this Agreement. No amendment, modification or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed by the
Bank and the Applicant and no amendment, modification or waiver of any provision of the Letter of Credit, and no consent to any departure by the Applicant therefrom, shall in any event be effective unless the same shall be in writing and signed by
the Bank. Any such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice to or demand on the Applicant in any case shall entitle the Applicant to any other or further notice or demand in
the same, similar or other circumstances. 

  
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 Section 7.8. Waiver of Rights by the Bank. No course of dealing or failure or
delay on the part of the Bank in exercising any right, power or privilege hereunder or under the Letter of Credit or this Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further
exercise or the exercise of any other right or privilege. The rights of the Bank under the Letter of Credit and the rights of the Bank under this Agreement are cumulative and not exclusive of any rights or remedies that the Bank would otherwise
have. 
 Section 7.9. Severability. In case any one or more of the provisions contained in this Agreement should be
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. The parties shall endeavor in good faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

Section 7.10. Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the
State of New York, without giving effect to conflict of law principles. 
 Section 7.11. Notices. All notices
hereunder shall be given by United States certified or registered mail or by telecommunication device capable of creating written record of such notice and its receipt. Notices hereunder shall be effective when received and shall be addressed:

  

					
	If to the Bank, to	    	JPMorgan Chase Bank, N.A.
		    	Loan and Agency Services Group
		    	1111 Fannin, 8th Floor
		    	Houston, TX 77002
		    	Facsimile No.:	  	(713) 750-2228
		    	Telephone No.:	  	(713) 216-0260
		    	Attention:	  	Maria Arreola
			
	With a copy to the Bank,	    		  	
	Standby Letter of Credit Unit:	    	JPMorgan Chase Bank, N.A.
		    	300 South Riverside Plaza
		    	Mail Code IL1-0236
		    	Standby Letter of Credit Unit
		    	Chicago, Il 60606-0236
		    	Facsimile No.:	  	(312) 954-6163
		    	Telephone No.:	  	(800) 634-1969, Option 1
		    	Attention:	  	Standby Service Unit

  
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	If to the Applicant, to	    	NuStar Logistics, L.P.
		    	2330 N. Loop 1604 West
		    	San Antonio, TX 78248
		    	Facsimile No.:	  	(210) 918-5055
		    	Telephone No.:	  	(210) 918-2966
		    	Attention:	  	Senior Vice President, Chief Financial
		    		  	Officer and Treasurer
		
	If to the Trustee, to	    	U.S. Bank National Association, Trustee
		    	1349 West Peachtree, NW
		    	Two Midtown Plaza, Suite 1050
		    	Atlanta, GA 30309	  	
		    	Facsimile No.:	  	(404) 365-7946
		    	Telephone No.:	  	(404) 898-8828
		    	Attention:	  	U.S. Bank Corporate Trust Services
		    		  	Felicia H. Powell
		    		  	Assistant Vice President

Section 7.12. Successors and Assigns. Whenever in this Agreement the Bank is referred to, such reference shall be deemed to
include the successors and assigns of the Bank and all covenants, promises and agreements by or on behalf of the Applicant which are contained in this Agreement shall inure to the benefit of such successors and assigns. The rights and duties of the
Applicant hereunder, however, may not be assigned or transferred, except as specifically provided in this Agreement or with the prior written consent of the Bank, and all obligations of the Applicant hereunder shall continue in full force and effect
notwithstanding any assignment by the Applicant of any of its rights or obligations under any of the Related Documents or any entering into, or consent by the Applicant to, any supplement or amendment to any of the Related Documents. 

Section 7.13. Expenses. The Applicant shall reimburse the Bank for any and all out of pocket expenses and charges paid or
incurred by the Bank in connection with the preparation, execution, delivery, administration and enforcement of this Agreement and any amendment to this Agreement or the Letter of Credit, including reasonable fees and disbursements of counsel to the
Bank. 
 Section 7.14. Headings. The captions in this Agreement are for convenience of reference only and shall not
define or limit the provisions hereof. 
 Section 7.15. Counterparts. This Agreement may be executed in
counterparts, each of which shall constitute an original but all taken together to constitute one instrument. A facsimile or .pdf copy of a counterpart signature page shall serve as the functional equivalent of a manually executed copy for all
purposes. 
 Section 7.16. Entire Agreement. This Agreement constitutes the entire understanding of the parties with
respect to the subject matter thereof and any prior agreements, whether written or oral, with respect thereto are superseded hereby. 

  
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 Section 7.17 Government Regulations. The Applicant shall (a) ensure that no
person who owns a controlling interest in or otherwise controls the Applicant is or shall be listed on the Specially Designated Nationals and Blocked Person List or other similar lists maintained by the Office of Foreign Assets Control
(“OFAC”), the Department of the Treasury or included in any Executive Orders, that prohibits or limits the Bank from making any advance or extension of credit to the Applicant or from otherwise conducting business with the
Applicant and (b) ensure that the Bond proceeds shall not be used to violate any of the foreign asset control regulations of OFAC or any enabling statute or Executive Order relating thereto. Further, the Applicant shall comply, and cause any of
its subsidiaries to comply, with all applicable Bank Secrecy Act (“BSA”) laws and regulations, as amended. The Applicant agrees to provide documentary and other evidence of the Applicant’s identity as may be requested by
the Bank at any time to enable the Bank to verify the Applicant’s identity or to comply with any applicable law or regulation, including, without limitation, Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318.

 Section 7.18 Submission to Jurisdiction; Waiver of Jury Trial. The Applicant hereby submits to the nonexclusive
jurisdiction of any state or federal court located in the Borough of Manhattan, City of New York, State of New York for purposes of all legal proceedings arising out of or relating to this Agreement, the other Related Documents or the transactions
contemplated hereby or thereby. The Applicant irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that
any such proceeding brought in such a court has been brought in an inconvenient forum. The Applicant and the Bank each hereby irrevocably waive any and all right to trial by jury in any legal proceeding arising out of or relating to any Related
Document or the transactions contemplated thereby. 
 Section 7.19 Credit Agreement. Notwithstanding anything to the
contrary set forth herein, (a) in the event of a conflict between the provisions of this Agreement and the provisions of the Credit Agreement, the provisions of the Credit Agreement shall control, and (b) the provisions of this Agreement
shall not limit the obligations of the Applicant or the rights of the Bank, the Administrative Agent (as defined in the Credit Agreement) or the Lenders (as defined in the Credit Agreement) under the Credit Agreement. This Agreement constitutes a
“Loan Document” under the Credit Agreement. 

  
 -13-

 Section 7.20 Grant of Security Interest in Pledged Bonds. The Applicant hereby
pledges to the Bank as Credit Provider (as defined in the Indenture) and as Administrative Agent under the Credit Agreement for the benefit of the Lenders (as defined in the Credit Agreement), and grants to the Bank as Credit Provider and
Administrative Agent, a security interest in all of the Applicant’s right, title and interest in and to each Bond from time to time purchased with moneys described in Section 4.03(b) of the Indenture (including any “security
entitlement” (as defined in Article 8 of the Uniform Commercial Code as in effect in the State of New York) or beneficial interest in such Bond), and all proceeds of the foregoing, to secure all amounts now or in the future owing by the
Applicant to the Bank in respect of drawings under the Letter of Credit now or hereafter honored by the Bank, and such Bonds shall constitute “Pledged Bonds” under the Indenture. Upon (a) the remarketing of any Pledged Bonds,
(b) the receipt by the Trustee of the proceeds of such remarketing, and (c) the delivery by the Trustee to the Bank of a Reinstatement Certificate in the form of Annex L to the Letter of Credit with respect to such remarketing, Pledged
Bonds in an aggregate principal amount equal to the lesser of the following shall automatically be released from the foregoing pledge and security interest: (i) the amount shown in paragraph 3 of such Reinstatement Certificate as representing
principal being held in the Remarketing Account of the Bond Fund, and (ii) the amount shown in paragraph 2 of such Reinstatement Certificate as representing principal of the “Original Purchase Price” (as defined in such
Reinstatement Certificate). At such time as the Applicant reimburses the Bank under the Reimbursement Agreement for the full amount of drawings under the Letter of Credit honored by the Bank to purchase Pledged Bonds, together with all accrued
interest thereon payable in accordance with the Reimbursement Agreement, the Bank, at the cost and expense of the Applicant, shall provide such instructions to the Trustee and take such steps as may be reasonably requested by the Applicant to cause
such Pledged Bonds to be transferred to the Applicant, whether through registration by the Trustee in the name of the Applicant or through the Book-Entry System; provided, however, notwithstanding any reimbursement by the Applicant to
the Bank or any such transfer of such Bonds to the Applicant, such Bonds shall at all times remain Pledged Bonds until their release from the pledge and security interest hereunder in accordance with the preceding sentence. 

[Signature Pages Follow] 

  
 -14-

 IN WITNESS WHEREOF, the undersigned have executed this Application for Letter of Credit and
Reimbursement Agreement as of the date first set forth above. 
  

			
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	 /s/ Muhammad Hasan

		 	     Muhammad Hasan
		 	     Vice President

					
	NUSTAR LOGISTICS, L.P.
	By:	 	NuStar GP, Inc., its general partner
			
		 	By:	 	 /S/ STEVEN A. BLANK

		 		 	    Steven A. Blank
		 		 	    Senior Vice President, Chief Financial Officer
		 		 	    and Treasurer

			
	U.S. BANK NATIONAL ASSOCIATION, as Trustee,
	is executing this Application for Letter of Credit and
	Reimbursement Agreement below, for the purpose of
acknowledging the provisions of Section 7.20 hereof:
	
	U.S. BANK NATIONAL ASSOCIATION, as Trustee

			
		
	By:	 	 /s/ Felicia H. Powell

			
	Name:	 	 /s/ Felicia H. Powell

			
	Title:	 	 Assistant Vice PresidentAmended and Restated Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 As Amended and Restated Effective December 30,
2010 
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) made as of this 30th day of December,
2010 (the “Effective Date”), by and between SUSQUEHANNA BANCSHARES, INC., a Pennsylvania corporation (the “Company”), and William J. Reuter, an adult individual whose principal residence is at
                                         
            (the “Employee”), on the other side. 
 Background

 WHEREAS, the Employee and the Company are parties to an Amended and Restated Employment Agreement made and entered
into as of January 1, 2009 (“Existing Agreement”); 
 WHEREAS, the Company and the Employee now desire to
amend the Existing Agreement to reduce the severance amounts payable to the Employee upon a change in control, to restructure his right to continued health benefits so that it will not be a reimbursement of monthly COBRA costs and to clarify certain
payment timing provisions; 
 WHEREAS, this Agreement replaces and supersedes all previous employment agreements between
the Employee and the Company or any Affiliate, including the Existing Agreement; and 
 WHEREAS, in consideration for
these changes to the Existing Agreement the Company will grant the Employee 25,000 shares of common stock of the Company on the Effective Date, subject to the restrictions and conditions set forth in the form of the Restricted Stock Agreement
attached hereto as Exhibit A and the Company’s 2005 Equity Compensation Plan. 
 NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and promises contained herein, and intending to be bound hereby, the parties 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 Chairman and CEO. 

 2. Duties. 
 2.1 The Employee agrees to assume such duties and responsibilities as may be consistent with the position of the Chairman and CEO 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 11, 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 third 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: 

3.2.1 Normal Retirement Date, or 
 3.2.2 if a Change in Control has occurred prior to the Normal Retirement Date, the later of (a) the Normal Retirement Date, or (b) the first anniversary of the Change in Control. 

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 $800,000 per year in accordance with the Company’s normal payroll practices. In connection with the annual review required by Subparagraph 

  
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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. 
 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, management employees generally, as the same may change from time to time. 

  
 - 3 -

 5.4 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 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. 

5.5 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. 
 5.6 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. 

  
 - 4 -

 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 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 90 days’ 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 and, if applicable, the Employee shall immediately resign his or her position as a member of the Board and any
committee thereof, from his or her position as the Chairman and CEO of the Company, and his or her position as a member of the board of directors of any Affiliate and any committee thereof. 

6.1 Termination without Cause or Resignation due to an Adverse Change. If the Employee’s employment ceases due to a
termination by the Company without Cause or a resignation by the Employee due to an Adverse Change (as defined below), the Employee shall be entitled to: 
 6.1.1 payment of all accrued and unpaid base salary through the date of such termination; 
 6.1.2 payment for all accrued but unused vacation days; 
 6.1.3 payment of any
bonus payable with respect to a period ending prior to such termination; 
 6.1.4 bi-weekly compensation continuation payments
for a period equal to the Non-Competition Period, with each payment equal to 1/26 of the Average Annual Compensation (provided, however, that it is understood that Employee shall not participate in any benefit plans covering employees, except as
specifically stated in this Paragraph 6), which amount shall be paid in regular payroll installments over the Non-Competition Period following the Employee’s termination date; 

6.1.5 if the Employee participates in any defined benefit plan maintained by the Company or one of its Affiliates immediately before the
Employee’s termination date (whether such plan is tax qualified or nonqualified), the Employee shall accrue an additional, fully vested benefit under the Company’s nonqualified pension plan (which shall be paid at the time and in the form
determined under the nonqualified pension plan and shall be determined in all respects pursuant to the terms of the applicable defined benefit pension plan(s)) equal to the difference between (a) the benefit that the Employee would have accrued
under all defined benefit pension plans of the Company or its Affiliates in which the Employee participated immediately before the Employee’s termination date, taking into account the compensation paid to the Employee under Subparagraph 6.1.4
as compensation for purposes of the applicable plan and increasing the Employee’s years of benefit service under the applicable plan by the number of years in the Non-Competition Period, and (b) the actual benefit due to the Employee under
all defined benefit pension plans of the Company and its Affiliated in which the Employee participated immediately before the Employee’s termination date; and 

  
 - 5 -

 6.1.6 the employee benefits listed below for the remainder of the Non-Competition Period, in
the form and manner set forth below: 
 (a) provided that the Employee is eligible for and timely elects COBRA
continuation coverage, during the 18-month period following the Employee’s termination date, the Company will reimburse the Employee for the monthly COBRA cost of continued coverage for the Employee, and, where applicable, his or her spouse and
dependents, paid by the Employee under the Company’s group health plan pursuant to section 4980B of the Code, less the amount that the Employee would be required to contribute for such health coverage if the Employee were an active employee of
the Company (the “Monthly COBRA Costs”). Following the foregoing 18-month period, if the Employee secures an individual policy for health coverage for himself or herself and, where applicable, his or her spouse and dependents, the Company
will reimburse the Employee for the monthly cost of such coverage for the period commencing on the first day following the 18-month period and ending on the last day of the Non-Competition Period; provided that the amount of the Company’s
reimbursement for any month during this period will not exceed the Monthly COBRA Costs; 
 (b) a payment each
month for a number of months equal to the number of months in the Non-Competition Period, equal to the monthly premium cost (less any employee portion of such premium costs) the Company would have paid for coverage for the Employee under the
applicable life insurance and accidental death and dismemberment policy(ies) which insured the Employee during the term of his or her employment had the Employee remained employed by the Company during the Non-Competition Period; and 

(c) a payment each month for a number of months equal to the number of months in the Non-Competition Period, equal to the
monthly premium cost (less any employee portion of such premium costs) the Company would have paid for coverage under the applicable disability insurance policy(ies) of the Company which insured the Employee during the term of his or her employment
had the Employee remained employed by the Company during the Non-Competition Period. 
 Except as otherwise provided in
Subparagraph 6.1, 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. The separation payments and benefits described in this
Subparagraph 6.1 shall be paid (or in the case of the payments described in Subparagraphs 6.1.4 and 6.1.6 shall begin to be paid) within 60 days after the Employee’s termination date, subject to the Employee’s execution and delivery of an
effective release as described below in Subparagraph 6.4. 

  
 - 6 -

 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), 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. 

6.2 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 (as defined below), (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. 

  
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 6.3 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. 

6.4 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. In no event shall the timing of Employee’s execution of the general release, directly or indirectly, result in the Employee designating the calendar year of payment, and if a payment
that is subject to execution of the general release could be made in more than one taxable year, payment shall be made in the later taxable year. 
 6.5 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. 
 7. Change in
Control. 
 7.1 Effect of a Change in Control. 

7.1.1 Effect on LTI/STI Rights. With respect to any long-term, short-term or any similar incentive program cycle in effect at the
time of a Change in Control: 
 (a) Employee shall become fully and immediately vested in his or her incentive awards upon the
occurrence of the Change in Control; and 
 (b) subject to the requirements of section 409A of the Code, such incentive awards
shall be paid at target levels and shall be paid to the Employee in a single lump sum payment between January 1 and March 15 of the calendar year following the end of the incentive program cycle for which the incentive award was earned,
without regard to whether Employee remains employed by the Company and without regard to the performance of Employee during those incentive program cycles. 

  
 - 8 -

 7.1.2 Effect on Pension Rights. In the event of a termination of employment providing
for payment of benefits under Subparagraph 6.1, the Employee shall accrue an additional, fully vested benefit under the Company’s nonqualified pension plan (which shall be paid at the time and in the form determined under the nonqualified
pension plan and shall be determined in all respects pursuant to the terms of the applicable defined benefit pension plan(s)) equal to the difference between: 
 (a) the benefit that the Employee would have accrued under all defined benefit pension plans of the Company or its Affiliates in which the Employee participated immediately prior to the Change in Control
(whether tax qualified or nonqualified), assuming: 
 (i) the Employee remained continuously employed by the Company until the
third anniversary of the Change in Control, 
 (ii) the Employee’s compensation for purposes of calculating benefits under
such defined benefit pension plan increased at a rate of four percent per year for the period of imputed service described above in Subparagraph 7.1.2(a)(i), and 
 (iii) the terms of all such defined benefit pension plans remained identical to those in effect immediately prior to the Change in Control; and 

(b) the actual benefit due to the Employee under all defined benefit pension plans of the Company and its Affiliates in which the
Employee participated immediately prior to the Change in Control. 
 7.1.3 Effect on Restrictive Covenants. Upon the
occurrence of a Change in Control, the two year period referenced in Paragraph 11.1 shall be revised automatically to equal the greater of two years or the period extending from the date of the termination of active employment to the third
anniversary of the Change in Control. 
 7.1.4 Transition Services. For two years following cessation of employment after
any Change in Control, the Employee agrees to remain available to provide the Company with transition assistance on matters with which the Employee was involved during his or her employment. The Employee shall render such assistance in a timely
manner on reasonable notice from the Company. The Employee shall not be entitled to any separate compensation for the services described in this Paragraph (other than reimbursement for reasonable out-of-pocket expenses actually incurred). The
Company agrees to provide reasonable advance notice of the need for the Employee’s assistance and shall exercise reasonable efforts to schedule and limit such matters so as to avoid interfering with the Employee’s personal and other
professional obligations. 
 7.2 Parachute Payments. 

7.2.1 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 

  
 - 9 -

 
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 7.2(a)) 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 7.2.1 in the absence of a Change in Control. Any Parachute Gross-up otherwise required by this Subparagraph 7.2(a) 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 7.2(a) 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. 

7.2.2 All determinations to be made under this Subparagraph 7.2 shall be made by an independent public accounting firm chosen by the
Company (the “Accounting Firm”). 
 7.2.3 In the event the Internal Revenue Service notifies the Employee of an
inquiry with respect to the applicability of section 280G of the Code or section 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 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. 
 7.2.4 All of the fees and
expenses of the Accounting Firm in performing the determinations referred to in Subparagraphs (a) and (b) above, or of the representative appointed pursuant to Subparagraph (c) above, shall be borne solely by the Company. 

7.2.5 Notwithstanding the foregoing, if the imposition of a Code 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 7.2(a)) 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 7.2(a) shall not apply. 

  
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 7.2.6 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. 

7.2.7 Notwithstanding any provision of this Subparagraph 7.2 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. 
 7.3 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. 

8. Confidential Information. During the term of employment, and at any time thereafter, the Employee shall not, without the
consent of a senior officer of the Company, 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. 
 9. Property Rights. The Employee agrees that all literary work, copyrightable material or other proprietary
information or materials developed by the Employee during the term of this Agreement and relating to, or capable of being used or adopted for use in, the business of the Company shall inure to and be the property of the Company and must be promptly
disclosed to the Company. Both during employment by the Company and thereafter, the Employee shall, at the expense of the Company, execute such documents and do such things as the Company reasonably may request to enable the Company or their nominee
(i) to apply for copyright or equivalent protection in the United States, Canada and elsewhere for any literary work hereinabove referred in this Paragraph, or (ii) to be vested with any such copyright protection in the United States,
Canada and elsewhere. 

  
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 10. 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. 

11. Non-Competition. 
 11.1 During the Period of Employment hereunder and then for two years following the Employee’s termination of employment for any reason 

11.1.1 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. 
 11.1.2 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. 
 11.1.3 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. 
 11.2 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 Subparagraph 6.1, may forfeit the additional pension benefit provided under Subparagraph 7.1.2, and may seek, as a remedy, a return of any prior compensation

  
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continuation payments made under Subparagraph 6.1.4. 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. 
 11.3 In the event of a Change in Control, the Employee acknowledges that the provisions of Paragraph
11 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 11.1 shall be
three years instead of two years. 
 12. Preemptive Considerations. Notwithstanding anything to the contrary set forth
herein: 
 12.1 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. 
 12.2 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 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. 
 12.3 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 12.3 shall not affect any vested rights of the parties. 

  
 - 13 -

 13. 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 13, 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 13 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. 

14. Survival. Notwithstanding anything to the contrary in this Agreement, the parties agree that the Employee’s obligations
under Paragraphs 8, 9, 11, and 13 of this Agreement shall continue despite the expiration of the term of this Agreement or its termination. 
 15. Definitions. For purposes of this Agreement: 
 15.1 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 (2) 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; 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. 

  
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 15.2 The term “Affiliate” shall mean with respect to the Company, persons or
entities controlling, controlled by or under common control with the Company. 
 15.3 The term “Average Annual
Compensation” shall mean, as of any date, the arithmetic average of the base salary and annual bonuses received by the Employee with respect to the three most recently completed calendar years. 

15.4 The term “Board” shall mean the Board of Directors of the Company. 

15.5 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. 

15.6 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 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); 

  
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 (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. 
 15.7 The term “Code” shall mean the Internal Revenue Code of 1986, as amended and the regulations promulgated thereunder. 

15.8 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. 
 15.9 The term “Compensation Committee” shall mean the Compensation Committee of
the Board. 
 15.10 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. 
 15.11 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 

  
 - 16 -

 
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.” 

15.12 The term “Non-Competition Period” shall mean, with respect to a specified cessation of employment, the two year period
following the Employee’s termination date; provided that on and after the occurrence of a Change in Control, the Non-Competition Period shall mean, with respect to a specified cessation of employment, the three year period following the
Employee’s termination date. 
 15.13 The term “Normal Retirement Date” shall mean the last business day in the
calendar year in which the Employee attains the age of 65. 
 15.14 The term “Period of Employment” shall have the
meaning described in Paragraph 3. 
 15.15 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). 
 16. Miscellaneous. 

16.1 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. 

16.2 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. 
 16.3 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. 

  
 - 17 -

  

	 	(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. 

16.4 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, including the Existing Agreement. 

16.5 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. 
 16.6 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. 
 16.7 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 expenses eligible for reimbursement, or in kind benefits to be provided, in any other

  
 - 18 -

 
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. 

[SIGNATURE PAGE FOLLOWS] 

  
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 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:	 	  
	 		 	By:	 	 /s/ Edward Balderston, Jr.

				
	Witness:	 		 		 	William J. Reuter
			
	  
	 		 	 /s/ William J. Reuter

  
 - 20 -

 EXHIBIT A 
 Restricted Stock Agreement 

  
 - 21 -

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