Document:

Commercial Guaranty

 Exhibit 10.6 
 COMMERCIAL GUARANTY 
  

									
	Borrower:	  	 M & I Electric Industries, Inc.
 6410 Long
Drive
 Houston, TX 77087
	  		 	Lender:	  	 JPMorgan Chase Bank, NA
 Beaumont Parkdale Business Banking LPO
 6025 Eastex Freeway
 Beaumont, TX 77706

	Guarantor:	  	 American Electric Technologies, Inc.
 6670
Springlake Road
 Keystone Heights, FL 32656
	  		 		  	

 AMOUNT OF GUARANTY. The amount of this Guaranty is Unlimited. 
 CONTINUING UNLIMITED GUARANTY. For good and valuable consideration, American Electric Technologies. Inc. (“Guarantor’) absolutely and unconditionally
guarantees and promises to pay to JPMorgan Chase Bank, NA (“Lender”) or its order, in legal tender of the United States of America, the Indebtedness (as that term is defined below) of M & I Electric Industries, Inc.
(“Borrower”) to Lender on the terms and conditions set forth in this Guaranty. Under this Guaranty, the liability of Guarantor is unlimited and the obligations of Guarantor are continuing. 
 INDEBTEDNESS GUARANTEED. The Indebtedness guaranteed by this Guaranty includes any and all of Borrower’s indebtedness to Lender and is used in the most
comprehensive sense and means and includes any and all of Borrower’s liabilities, obligations and debts to Lender, now existing of hereinafter incurred or created, including, without limitation, all loans, advances, interest, costs, debts,
overdraft indebtedness, credit card indebtedness, lease obligations, other obligations, and liabilities of Borrower, or any of them, and any present or future judgments against Borrower, or any of them; and whether any such Indebtedness is
voluntarily or involuntarily incurred, due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined; whether Borrower may be liable individually or jointly with others, or primarily or secondarily, or as guarantor
or surety; whether recovery on the Indebtedness may be or may become barred or unenforceable against Borrower for any reason whatsoever; and whether the Indebtedness arises from transactions which may be voidable on account of infancy, insanity,
ultra vires, or otherwise. 
 NATURE OF GUARANTY. This Guaranty is a guaranty of payment and not of collection. Therefore, the Lender can insist that
the Guarantor pay immediately, and the Lender is not required to attempt to collect first from the Borrower, any collateral, or any other person liable for the Indebtedness. 
 OTHER GUARANTIES. If Lender presently holds one or more guaranties, or hereafter receives additional guaranties from Guarantor, the rights of Lender under all guaranties shall be cumulative. This Guaranty shall
not (unless specifically provided below to the contrary) affect or invalidate any such other guaranties. The liability of Guarantor will be the aggregate liability of Guarantor under the terms of this Guaranty and any such other unterminated
guaranties. 
 DURATION OF GUARANTY. This Guaranty will take effect when received by Lender without the necessity of any acceptance by Lender, or any
notice to Guarantor or to Borrower, and will continue in full force until all Indebtedness incurred or contracted before receipt by Lender of any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantor’s
other obligations under this Guaranty shall have been performed in full. If Guarantor elects to revoke this Guaranty, Guarantor may only do so in writing. Guarantor’s written notice of revocation must be mailed to Lender, by certified mail, at
Lender’s address listed above or such other place as Lender may designate in writing. Written revocation of this Guaranty will apply only to advances or new Indebtedness created after actual receipt by Lender of Guarantor’s written
revocation. For this purpose and without limitation, the term “new Indebtedness” does not include Indebtedness which at the time of notice of revocation is contingent, unliquidated, undetermined or not due and which later becomes absolute,
liquidated, determined or due. This Guaranty will continue to bind Guarantor for all Indebtedness incurred by Borrower or committed by Lender prior to receipt of Guarantor’s written notice of revocation, including any extensions, renewals,
substitutions or modifications of the Indebtedness. All renewals, extensions, substitutions, and modifications of the Indebtedness granted after Guarantor’s revocation, are contemplated under this Guaranty and, specifically will not be
considered to be new Indebtedness. This Guaranty shall bind Guarantor’s estate as to Indebtedness created both before and after Guarantor’s death or incapacity, regardless of Lender’s actual notice of Guarantor’s death. Subject
to the foregoing. Guarantor’s executor or administrator or other legal representative may terminate this Guaranty in the same manner in which Guarantor might have terminated it and with the same effect. Release of any other guarantor or
termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantor under this Guaranty. A revocation Lender receives from any one or more Guarantors shall not affect the liability of any remaining Guarantors under this
Guaranty. Guarantor shall be liable, jointly and severally, with Borrower and any other guarantor of all or any part of the Indebtedness, and release of any other guarantor of all or any part of the Indebtedness, or termination or revocation of any
other guaranty of all or any part of the Indebtedness, shall not affect the liability of Guarantor under this Guaranty. It is anticipated that fluctuations may occur in the aggregate amount of Indebtedness covered by this Guaranty, and Guarantor
specifically acknowledges and agrees that reductions in the amount of Indebtedness, even to zero dollars ($0.00), prior to Guarantor’s written revocation of this Guaranty shall not constitute a termination of this Guaranty. This Guaranty is
binding upon Guarantor and Guarantor’s heirs, successors and assigns so long as any of the guaranteed Indebtedness remains unpaid and even though the Indebtedness guaranteed may from time to time be zero dollars ($0.00). 
 GUARANTOR’S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any revocation hereof, without notice or demand and without
lessening Guarantor’s liability under this Guaranty, from time to time: (A) prior to revocation as set forth above, to make one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or
otherwise to extend additional credit to Borrower; (B) to alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of the Indebtedness or any part of the Indebtedness, including
increases and decreases of the rate of interest on the Indebtedness; extensions may be repeated and may be for longer than the original loan term; (C) to take and hold security for the payment of this Guaranty or the Indebtedness, and exchange,
enforce, waive, subordinate, fail or decide not to perfect, and release any such security, with or without the substitution of new collateral, and release the Borrower, with or without the assumption of the Indebtedness by any other entity;
(D) to release, substitute, agree not to sue, or deal with any one or more of Borrower’s sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; (E) to determine how, when and what application of payments
and credits shall be made on the Indebtedness (F) to apply such security and direct the order or manner of sale thereof, including without limitation, any nonjudicial sale permitted by the terms of the controlling security agreement or deed of
trust, as Lender in its discretion may determine; (G) to sell, transfer, assign or grant participations in all or any part of the Indebtedness; and (H) to assign or transfer this Guaranty in whole or in part. 
 GUARANTOR’S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or agreements of any kind have been
made to Guarantor which would limit or qualify in any way the terms of this Guaranty: (B) this Guaranty is executed at Borrower’s request and not at the request of Lender, (C) Guarantor has full power, right and authority to enter into
this Guaranty; (D) the provisions of this Guaranty do not conflict with or result in a default under any agreement or other instrument binding upon Guarantor and do not result in a violation of any law, regulation, court decree or order
applicable to Guarantor; (E) Guarantor has not and will not, without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer, or otherwise dispose of all or substantially all of Guarantor’s assets, or any
interest therein; (F) upon Lender’s request. Guarantor will provide to Lender financial and credit information in form acceptable to Lender, and all such financial information which currently has been, and all future financial information which
will be provided to Lender is and will be true and correct in all material respects and fairly present Guarantor’s financial condition as of the dates the financial information is provided; (G) no material adverse change has occurred in
Guarantor’s financial condition since the date of the most recent financial statements provided to Lender and no event has occurred which may materially adversely affect Guarantor’s financial condition; (H) no litigation, claim,
investigation, administrative proceeding or similar action (including those for unpaid taxes) against Guarantor is pending or threatened; (I) Lender has made no representation to Guarantor as to the creditworthiness of Borrower; (J) Guarantor
has established adequate means of obtaining from Borrower on a continuing basis information regarding Borrower’s financial condition; and (K) as of the date hereof, and after giving effect to this Guaranty, (1) Guarantor is and will
be solvent, (2) the fair saleable value of Guarantor’s assets exceeds and will continue to exceed Guarantor’s liabilities (both fixed and contingent). (3) Guarantor is and will continue to be able to pay Guarantor’s debts as
they mature, and (4) if Guarantor is not an individual, Guarantor has and will continue to have sufficient capital to carry on its business and all businesses in which it is about to engage. Guarantor agrees to keep adequately informed from
such means of any facts, events, or circumstances which might in any way affect Guarantor’s risks under this Guaranty, and Guarantor further agrees that Lender shall have no obligation to disclose to Guarantor any information or documents
acquired by Lender in the course of its relationship with Borrower. 
 GUARANTOR’S FINANCIAL STATEMENTS. Guarantor agrees to furnish Lender with
the following: 
 Annual Statements. As soon as available, but in no event later than 150 days after the end of each fiscal year,
Guarantor’s balance sheet and income statement for the year ended, audited by a certified public accountant satisfactory to Lender. 
 All financial
reports required to be provided under this Guaranty shall be prepared in accordance with GAAP, applied on a consistent basis, and certified by Guarantor as being true and correct. 
 GUARANTOR’S WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require Lender (A) to continue lending money or to extend other credit to Borrower; (B) to make any
presentment, protest, demand, or notice of any kind, including notice of any nonpayment of the Indebtedness or of any nonpayment related to any collateral, or notice of any action or nonaction on the part of Borrower, Lender, any surety, endorser,
or other guarantor in connection with the Indebtedness or in connection with the creation of new or additional loans or obligations; (C) to resort for payment or to proceed directly or at once against any person, including Borrower or any other
guarantor; 

 COMMERCIAL GUARANTY 
 (Continued) 

  

 
(D) to proceed directly against or exhaust any collateral held by Lender from Borrower, any other guarantor, or any other person; (E) (Fl to pursue any
other remedy within Lender’s power; or (G) to commit any act or omission of any kind, or at any time, with respect to any matter whatsoever. 
 In
addition to the waivers set forth herein, if now or hereafter Borrower is or shall become insolvent and the Indebtedness shall not at all times until paid be fully secured by collateral pledged by Borrower, Guarantor hereby forever waives and gives
up in favor of Lender and Borrower, and Lender’s and Borrower’s respective successors, any claim or right to payment Guarantor may now have or hereafter have or acquire against Borrower, by subrogation or otherwise, so that at no time
shall Guarantor be or become a “creditor” of Borrower within the meaning of 11 U.S.C. section 547(b), or any successor provision of the Federal bankruptcy laws. 
 The Guarantor agrees that the provisions of this Guaranty are severable, and in any action or proceeding involving any state corporate law. or any state, federal or foreign bankruptcy, insolvency, reorganization or
other law affecting the rights of creditors generally, if the obligations of the Guarantor under this Guaranty would otherwise be held or determined to be avoidable, invalid or unenforceable on account of the amount of the Guarantor’s liability
under this Guaranty, then, notwithstanding any other provision of this Guaranty to the contrary, the amount of such liability shall, without any further action by the Guarantor or the Lender, be automatically limited and reduced to the highest
amount that is valid and enforceable as determined in such action or proceeding. 
 Guarantor also waives any and all rights or defenses arising by reason of
IA) any “one action” or “anti-deficiency” law or any other law which may prevent Lender from bringing any action, including a claim for deficiency, against Guarantor, before or after Lender’s commencement or completion of
any foreclosure action, either judicially or by exercise of a power of sale; (B) any election of remedies by Lender which destroys or otherwise adversely affects Guarantor’s subrogation rights or Guarantor’s rights to proceed against
Borrower for reimbursement, including without limitation, any loss of rights Guarantor may suffer by reason of any law limiting, qualifying, or discharging the Indebtedness; (C) any disability or other defense of Borrower, of any other
guarantor, or of any other person, or by reason of the cessation of Borrower’s liability from any cause whatsoever, other than payment in full in legal tender, of the Indebtedness; (D) any right to claim discharge of the Indebtedness on
the basis of unjustified impairment of any collateral for the Indebtedness; (E) any statute of limitations, if at any time any action or suit brought by Lender against Guarantor is commenced there is outstanding Indebtedness of Borrower to
Lender which is not barred by any applicable statute of limitations; (F) any right to claim the Guaranty is conditioned on anyone else executing this or any other guaranty; or (G) any defenses given to guarantors at law or in equity other than
actual payment and performance of the Indebtedness. If payment is made by Borrower, whether voluntarily or otherwise, or by any third party, on the Indebtedness and thereafter Lender is forced to remit the amount of that payment to Borrower’s
trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtors, the Indebtedness shall be considered unpaid for the purpose of the enforcement of this Guaranty. 
 Guarantor further waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any claim Of setoff, counterclaim,
counter demand, recoupment or similar right, whether such claim, demand or right may be asserted by the Borrower, the Guarantor, or both. 
 GUARANTOR’S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above is made with Guarantor’s full knowledge of its significance and consequences and that, under the
circumstances, the waivers are reasonable and not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable law or public policy, such waiver shall be effective only to the extent permitted by law or public
policy. 
 RIGHT OF SETOFF. Guarantor grants to Lender a security interest in, as well as a right of setoff against, and hereby assigns, conveys,
delivers, pledges and transfers to Lender, as security for repayment of the Indebtedness, all Guarantor’s right, title and interest in and to all Guarantor’s accounts (whether checking, savings, or some other account) with Lender or any
subsidiary or affiliate of JPMorgan Chase & Co. (each hereinafter referred to as a “Lender Affiliate”) and all other obligations at any time owing by Lender or any Lender Affiliate to Guarantor. This includes all accounts
Guarantor holds jointly with someone else and all accounts Guarantor may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which the grant of a security interest would be prohibited by law.
Guarantor authorizes Lender, without prior notice to Guarantor and irrespective of (i) whether or not Lender has made any demand under this Guaranty or the Related Documents or (ii) whether such Indebtedness is contingent, matured or unmatured,
to the extent permitted by law, to collect, charge and/or setoff all sums owing on the Indebtedness against any and all such accounts and other obligations, and, at Lender’s option, to administratively freeze or direct a Lender Affiliate to
administratively freeze alt such accounts and other obligations to allow Lender to protect Lender’s security interest, collection, charge and setoff rights provided in this paragraph. 
 SUBORDINATION OF BORROWER’S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness of Borrower to Lender, whether now existing or hereafter created,
shall be superior to any claim that Guarantor may now have or hereafter acquire against Borrower, whether or not Borrower becomes insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account
whatsoever, to any claim that Lender may now or hereafter have against Borrower. In the event of insolvency and consequent liquidation of the assets of Borrower, through bankruptcy, by an assignment for the benefit of creditors, by voluntary
liquidation, or otherwise, the assets of Borrower applicable to the payment of the claims of both Lender and Guarantor shall be paid to Lender and shall be first applied by Lender to the Indebtedness of Borrower to Lender. Guarantor does hereby
assign to Lender all claims which it may have or acquire against Borrower or against any assignee or trustee in bankruptcy of Borrower; provided however, that such assignment shall be effective only for the purpose of assuring to Lender full payment
in legal tender of the Indebtedness. If Lender so requests, any notes or credit agreements now or hereafter evidencing any debts or obligations of Borrower to Guarantor shall be marked with a legend that the same are subject to this Guaranty and
shall be delivered to Lender. Guarantor agrees, and Lender is hereby authorized, in the name of Guarantor, from time to time to file financing statements and continuation statements and to execute documents and to take such other actions as Lender
deems necessary or appropriate to perfect, preserve and enforce its rights under this Guaranty. 
 MISCELLANEOUS PROVISIONS. The following
miscellaneous provisions are a part of this Guaranty: 
 Amendments. This Guaranty, together with any Related Documents, constitutes
the entire understanding and agreement of the parties as to the matters set forth in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in writing and signed by the party or parties sought to be charged or
bound by the alteration or amendment. 
 Attorneys’ Fees; Expenses. Guarantor agrees to pay upon demand all of Lender’s costs
and expenses, including Lender’s Lender’s reasonable attorneys’ fees and Lender’s legal expenses, incurred in connection with the enforcement of this Guaranty. Lender may hire or pay someone else to help enforce this Guaranty,
and Guarantor shall pay the costs and expenses of such enforcement. Costs and expenses include Lender’s Lender’s reasonable attorneys’ tees and legal expenses whether or not there is a lawsuit, including Lender’s reasonable
attorneys’ fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. Guarantor also shall pay all court costs and
such additional fees as may be directed by the court. 
 Caption Headings. Caption headings in this Guaranty are for convenience
purposes only and are not to be used to interpret or define the provisions of this Guaranty. 
 Integration. Guarantor further agrees that
Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity to be advised by Guarantor’s attorney with respect to this Guaranty; the Guaranty fully reflects Guarantor’s intentions and parol
evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds Lender harmless from all losses, claims, damages, and costs (including Lender’s attorneys’ fees! suffered or incurred by Lender as a
result of any breach by Guarantor of the warranties, representations and agreements of this paragraph. 
 Interpretation. In all cases
where there is more than one Borrower or Guarantor, then all words used in this Guaranty in the singular shall be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower named
in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words “Borrower” and “Guarantor” respectively shall mean all and any one or more of them. The words “Guarantor,” “Borrower,”
and “Lender” include the heirs, successors, assigns, and transferees of each of them. If a court finds that any provision of this Guaranty is not valid or should not be enforced, that fact by itself will not mean that the rest of this
Guaranty will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of this Guaranty even if a provision of this Guaranty may be found to be invalid or unenforceable. If any one or more of Borrower or Guarantor are
corporations, partnerships, limited liability companies, or similar entities, it is not necessary for Lender to inquire into the powers of Borrower or Guarantor or of the officers, directors, partners, managers, or other agents acting or purporting
to act on their behalf, and any Loan indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty. 
 Notices. Any notice required to be given under this Guaranty shall be given in writing, and, except for revocation notices by Guarantor, shall be effective when actually delivered, when actually received by
telefacsimile [unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the
addresses shown near the beginning of this Guaranty. All revocation notices by Guarantor shall be in writing and shall be effective upon delivery to Lender as provided in the section of this Guaranty entitled “DURATION OF GUARANTY,” Any
party may change its address for notices under this Guaranty by giving written notice to the other parties, specifying that the purpose of the notice is to change the party’s address. For notice purposes, Guarantor agrees to keep Lender
informed at all times of Guarantor’s COMMERCIAL GUARANTY current address. Unless otherwise provided or required by law. if there is more than one Guarantor, any notice given by Lender to any Guarantor is deemed to be notice given to all
Guarantors. 

  

 Page 2 

 COMMERCIAL GUARANTY 
 (Continued) 

  

 No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Guaranty
unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Guaranty shall not
prejudice or constitute a waiver of Lender’s right otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender, nor any course of dealing between Lender and Guarantor, shall
constitute a waiver of any of Lender’s rights or of any of Guarantor’s obligations as to any future transactions. Whenever the consent of Lender is required under this Guaranty, the granting of such consent by Lender in any instance shall
not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. 
 Successors and Assigns. Subject to any limitations stated in this Guaranty on transfer of Guarantor’s interest, this Guaranty shall be binding
upon and inure to the benefit of the parties, their successors and assigns. 
 JURY WAIVER. THE UNDERSIGNED AND LENDER (BY ITS ACCEPTANCE HEREOF) HEREBY
VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) BETWEEN OR AMONG THE UNDERSIGNED AND LENDER ARISING OUT OF OR IN ANY WAY
RELATED TO THIS DOCUMENT, THE RELATED DOCUMENTS, OR ANY RELATIONSHIP BETWEEN OR AMONG THE UNDERSIGNED AND LENDER. THIS PROVISION IS A MATERIAL INDUCEMENT TO LENDER TO PROVIDE THE FINANCING EVIDENCED BY THIS DOCUMENT AND THE RELATED DOCUMENTS. 

 GOVERNING LAW. The Lender’s loan production office for this transaction is located at the address and in the State (the “LPO State”)
indicated in the LPO address or the loan production office address on the first page of this document. This document will be governed by and interpreted in accordance with federal law and the laws of the LPO State, except for matters related to
interest and the exportation of interest, which matters shall be governed by and interpreted in accordance with federal law (including, but not limited to, statutes, regulations, interpretations and opinions) and the laws of the State of Ohio.
However, if there is ever a question about whether any provision of this document is valid or enforceable, the provision that is questioned will be governed by whichever state or federal law would find the provision to be valid and enforceable. The
loan transaction which is evidenced by this document has been made in the State of Ohio. 
 VENUE. If there is a lawsuit, the undersigned agrees to
submit to the jurisdiction of the courts of the county in the LPO State in which the Lender’s loan production office is located. 
 INFORMATION
WAIVER. Lender may provide, without any limitation whatsoever, to any one or more purchasers of any Indebtedness, potential purchasers of any Indebtedness, or affiliates of JPMorgan Chase & Co., any information or knowledge Lender may
have about Guarantor or about any matter relating to the Indebtedness, and Guarantor hereby waives any right to privacy Guarantor may have with respect to such matters. 
 EXAMPLES OF INDEBTEDNESS, INCLUDING DEPOSIT ACCOUNT INDEBTEDNESS, LOAN INDEBTEDNESS, ETC., TOGETHER WITH EXCLUSION OF BORROWER’S CONSUMER INDEBTEDNESS. Guarantor agrees the Indebtedness as described herein
in the paragraph captioned “Indebtedness Guaranteed” is used in its most comprehensive sense. As examples, and not as limitation, the Indebtedness of Borrower includes: (a) any overdraft in any deposit account of Borrower, accruing
for any reason, (b) any obligations, including any overdraft in any deposit account of Borrower, related to Automated Clearing House (“ACH”) services or products, deposit account services or products, or treasury management services
or products, including any agreement with respect thereto; (c) any transaction (including any agreement with respect thereto) between Borrower and the Lender or JPMorgan Chase & Co., or any of its subsidiaries or affiliates or their
successors, which is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction,
floor transaction, collar transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any of these transactions) or any
combination thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures (each a “Rate Management Transaction”); (d) any obligation related to any loan or
credit transaction (including any agreement with respect thereto), whether evidenced by a promissory note, credit agreement, letter of credit application, or any other agreement; (e) any obligation related to commercial credit card transactions
(including an agreement with respect thereto); (f) any obligation related to any lease (including an agreement with respect thereto); (g) any obligation related to any guaranty of the obligations of others by Borrower: (h) any
obligation under a Related Document; and (i) all other obligations of Borrower to Lender. The Indebtedness shall not include credit, obligations, liabilities, or indebtedness of the Borrower incurred primarily for personal, family or household
purposes. 
 DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Guaranty. Unless specifically
stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may
require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code: 
 Borrower. The word “Borrower” means M & I Electric Industries, Inc. , and all other persons and entities signing the Note in whatever capacity. 
 GAAP. The word “GAAP” means generally accepted accounting principles. 
 Guarantor. The word “Guarantor” means each and every person or entity signing this Guaranty, including without limitation American
Electric Technologies, Inc. 
 Guaranty. The word “Guaranty” means this guaranty from Guarantor to Lender. 
 Indebtedness. The word “Indebtedness” means Borrower’s indebtedness to Lender as more particularly described in this Guaranty.

 Lender, The word “Lender” means JPMorgan Chase Bank, NA, its successors and assigns. 
 Related Documents. The words “Related Documents” mean all promissory notes, credit agreements, loan agreements, environmental agreements,
guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now existing or hereafter arising, executed in connection with the Indebtedness.

 GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS COMMERCIAL GUARANTY AND GUARANTOR AGREES TO ITS TERMS. THIS COMMERCIAL GUARANTY IS DATED
JULY 2, 2007. 
  

			
	GUARANTOR:
	
	AMERICAN ELECTRIC TECHNOLOGIES, INC.
		
	By:	 	 

		 	Arthur Dauber, President of American Electric Technologies. Inc.

  

 Page 3Employment Agreement- Michael M. Quick

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 AGREEMENT made as of this 25th day of July, 2007, by and between
SUSQUEHANNA BANCSHARES, INC., a Pennsylvania corporation (the “Company”), and MICHAEL M. QUICK, an adult individual whose principal residence is at 323 Hawthorne Avenue, Haddonfield, New Jersey 08033 (the
“Employee”). 
 Background 
 The Company desires to induce the Employee to remain in its employment, and the Employee hereby agrees to accept continuation of employment with the Company, on the terms and subject to the conditions hereinafter set
forth. As additional consideration to induce the Employee to enter into this Agreement, the Company has offered to enhance the benefits payable to Employee in connection with certain control transactions involving the Company. The Company and the
Employee each agree that these benefits are all conditional on the Employee’s agreement to sign this Agreement. This Agreement replaces and supersedes all previous Employment Agreements between the Employees and the Company or any Affiliate.

 1. Position. The Company hereby agrees to continue the Employee’s employment and the Employee hereby agrees to continue
employment with the Company, as Executive Vice President and Chief Credit Officer. 
 2. Duties. 
 2.1. The Employee agrees to assume such duties and responsibilities as may be consistent with the position of Executive Vice President and
Chief Credit Officer and as may be assigned to the Employee by the Board of Directors or the Chief Executive Officer of the Company or by the by-laws of the Company from time to time. No change in the duties of the Employee shall in any way diminish
the compensation payable to him or her pursuant to the provisions of Paragraph 4 hereof. 

 2.2. The Employee agrees to devote his or her full time, skill, attention and energies
and his or her best efforts to the performance of his or her duties under this Agreement, consistent with practices and policies established from time to time by the Company. The Employee agrees, in addition to the covenants concerning
Non-Competition contained in Paragraph 15, that he or she will not engage in any other business activity (including, without limitation, participation by the Employee on any unaffiliated profit or non-profit board of directors) except: (i) upon
the prior written notice to and consent of the Company’s Board of Directors, or (ii) solely as an investor in real or personal property, the management of which shall not detract from the performance of his or her duties hereunder;
provided, however, that the engagement by the Employee in any such business activity shall at all times be in conformity with the Company’s Code of 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. The period of employment shall commence on the effective date of this Agreement and end on the third
December 31 next following the date of this Agreement (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 of this Agreement, or (b) November 1 any subsequent year, if this Agreement has previously been extended pursuant to this paragraph 3, then the Period of Employment will be
automatically extended by one year. 
  

 -2- 

 3.2. Notwithstanding anything to the contrary set forth herein, the Employment Period
will not extend beyond: 
 3.2.1. the last business day in the calendar year in which the Employee attains the age of 65 (the
“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 that 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 $316,680.00 per year. In connection with the annual review required by subparagraph 4.3 hereof, the Employee’s base salary shall be reviewed and in light of such review may be increased (but not decreased), taking into
account any change in the Employee’s responsibilities, performance of the Employee and other pertinent factors. Payment of any increase in the Employee’s base salary (if any) shall commence no later than July 1st of the year in which the increase is granted. 
 4.2. Bonus. The Company may, but shall not be required to, pay to the Employee annual bonus compensation in such amount as may be determined by the appropriate Board of Directors or its designee within
guidelines established by the Company. Such bonus shall not exceed the amount of the Employee’s base compensation. 
 4.3. Annual Review. The determination of compensation payable by the Company hereunder shall be made by the Compensation Committee of the Company or its nominee, which shall perform an annual review of this Agreement, the
Employee’s performance 

  

 -3- 

 
with the Company, and compensation payable hereunder. The results of such review, including recommendation as to salary adjustment and bonus, shall be
reported to the Company and shall be memorialized in the minutes of the meetings of the Company’s Board of Directors or held in a confidential file by the Company’ s Human Resources Department. 
 5. Employee Expenses. Subject to such general employee expense account policies as the Company may from time to time adopt, the Company will pay
or reimburse the Employee upon presentation of vouchers or invoices for reasonable expenses incurred by the Employee in the performance of his or her duties in carrying out the terms and provisions of this Agreement, including, without limitation,
expenses for such items as entertainment, travel, meals, hotel and similar items. In the event that any reimbursed expenses are disallowed by the Internal Revenue Service as deductions to the Company, 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. 
 The Company also shall provide the Employee during his or her employment under this Agreement with the full time use of a car selected by the Employee and comparable to the car available at present. Such car shall be
used by the Employee in accordance with any and all general car policy(ies) as the Company may from time to time adopt. Such car shall be selected, maintained and replaced in accordance with the Company’s general policy on cars for employees
having need of a car for such use. 
 6. Vacations. The Employee will be entitled to paid vacation annually as specified under the
Company’s Vacation Policy, to be taken at times reasonably convenient to the Company. 
  

 -4- 

 7. Benefits. 
 7.1. The Employee shall be entitled to group term life insurance insuring the Employee’s life during the term of employment,
disability insurance coverage, and accidental death and dismemberment benefits, including death benefit, in such amounts and in such coverage as shall be consistent with the insurance coverage programs available to other salaried employees of the
Company, as the same may change from time to time. The Employee shall designate the beneficiary of such policy and benefits. 
 7.2. The Employee shall be entitled to major medical and health insurance coverage for the Employee and his or her immediate family on such terms, in such amounts and in such coverage as shall be consistent with the insurance coverage
programs available to other salaried employees of the Company generally, as the same may change from time to time. 
 7.3. To
the extent such benefits are not specifically described or duplicated hereinabove in this Paragraph 7, the Employee shall also be entitled to participate in any and all thrift, profit sharing, 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. 
 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 

  

 -5- 

 
Company or any Affiliate of the Company and shall not, without the consent of a senior officer of the Company, deliver any oral address or speech or publish,
or knowingly permit to be published, any written matter in any way relating to confidential information regarding the business of the Company or any Affiliate of the Company. 
 9. Property Rights. The Employee agrees that all literary work, copyrightable material or other proprietary information or materials developed by
the Employee during the term of this Agreement and relating to, or capable of being used or adopted for use in, the business of the Company shall inure to and be the property of the Company and must be promptly disclosed to the Company. Both during
employment by the Company and thereafter, the Employee shall, at the expense of the Company, execute such documents and do such things as the Company reasonably may request to enable the Company or their nominee (i) to apply for copyright or
equivalent protection in the United States, Canada and elsewhere for any literary work hereinabove referred in this paragraph, or (ii) to be vested with any such copyright protection in the United States, Canada and elsewhere. 
 10. Termination. The Company may terminate the Employee’s employment without Cause (as defined below) or as a result of a Disability (as
defined below) 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 employment at any time for
any reason, with 90 days’ advance written notice (or such shorter notice as the Company will then accept). Upon termination, the Employee will be entitled only to such compensation and benefits as described in this Paragraph 10. 
 10.1. 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 

  

 -6- 

 
resignation by the Employee due to an Adverse Change (as defined below), the Employee will be entitled to: 
 10.1.1. payment of all accrued and unpaid base salary through the date of such termination; 
 10.1.2. payment for all accrued but unused vacation days; 
 10.1.3. payment of any bonus payable with respect to a period ending prior to such termination; 
 10.1.4. 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 10); 
 10.1.5. the benefit that the Employee would have accrued under all defined benefit pension plans had the Employee remained in the employ
of the Company for the remainder of the Non-Competition Period, which benefits will be paid concurrently with the benefits which would otherwise have been provided under such plans; and 
 10.1.6. all other employee benefits to which the Employee would have been entitled under Paragraph 7 hereof if he had remained in the
employ of the Company for the remainder of the Non-Competition Period. 
 Except as otherwise provided in this subparagraph 10.1, all
compensation and benefits will cease at the time of such termination and the Company will have no further liability or obligation by reason of such termination. The separation benefits described in this subparagraph 10.1 will be paid (or, in the
case of the benefits described in subparagraphs 10.1.4, 10.1.5 and 

  

 -7- 

 
10.1.6, will begin to be paid or provided) as soon as the release described below in subparagraph 10.6 becomes irrevocable. 
 Notwithstanding the foregoing, if the terms of the Company’s group insurance arrangements do not allow continuation of Employee’s group health
or group term life insurance coverage for any part of the period(s) described in subparagraphs 10.1.5 and 10.1.6, Employee will instead receive an amount in cash equal to 150% of the Company’s actual premium cost of providing comparable
coverage to similarly situated active employees for the applicable period. Such amount may be paid in installments at the same intervals as group insurance premiums are generally paid by the Company and such payment(s) will constitute a complete
satisfaction of Employee’s entitlements under subparagraphs 10.1.5 and 10.1.6. 
 10.2. Other Terminations. If the
Employee’s employment ceases for any reason other than as described in subparagraph 10.1, above (including, but not limited, to (a) termination for Cause, (b) as a result of the Employee’s death or Disability (as defined below),
(c) resignation by the Employee in the absence of an Adverse Change or (d) a retirement described in subparagraph 3.2), then the Employee will receive payment for his accrued and unpaid base salary through the date of such cessation. All
compensation and benefits will cease at the time of such termination and, except as otherwise provided herein, the Company will have no further liability or obligation by reason of such termination. 
 10.3. Non-Disparagement. Upon termination of employment hereunder, the Employee shall not malign, criticize or otherwise disparage
the Company, the Affiliates or their respective officers, employees or directors. 
 10.4. Claims. Any claims for
benefits under Paragraph 10 of the Agreement shall be governed by the claims procedures in the Susquehanna Bancshares, Inc. Key Employee 

  

 -8- 

 
Severance Pay Plan, as amended from time to time. However, the provisions of Paragraphs 10.1 and 11 of this Agreement shall govern in lieu of the severance
provisions of such Plan. Except as specifically provided in this Agreement, the payments and benefits provided under this Paragraph 10 are in lieu of, not in addition to, those provided by the Company and its Affiliates under any other severance
plan or arrangement. 
 10.5. Release. Notwithstanding any other provision of this Agreement, any severance or
termination payments or benefits herein described are conditioned on the Employee’s execution and delivery to the Company of a 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. 
 10.6. Other Rights.
Nothing is 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) except as otherwise provided in subparagraph 10.1.5, 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. 
 11. Change in Control.

 11.1. Effect of a Change in Control. 
 11.1.1. 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 will become fully and immediately vested in his or her incentive awards upon the
occurrence of the Change in Control; and 
  

 -9- 

 (b) such incentive awards will be payable at target levels (at the same time and in the
same form that such awards would otherwise be payable in the absence of this Agreement), without regard to whether Employee remains employed by the Company and without regard to the performance of Employee during those incentive program cycles.

 11.1.2. Effect on Pension Rights. In the event of a termination of employment providing for payment of benefits
under subparagraph 10.1, the Employee will accrue an additional, fully vested benefit under the Company’s non-qualified pension plan 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, 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 pension plans increased at a rate of four percent per year for the period of imputed service described above in subparagraph 11.1.3(a)(i), and 
 (iii) the terms of all such 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.

 11.1.3. Effect on Restrictive Covenants. Upon the occurrence of a Change in Control, the one year period referenced
in Paragraph 15.1 will be revised automatically to equal the greater of one year or the period extending from the date of the termination of active employment to the third anniversary of the Change in Control. 
  

 -10- 

 11.1.4. 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 will render such assistance in a timely
manner on reasonable notice from the Company. The Employee will 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 will exercise reasonable efforts to schedule and limit such matters so as to avoid interfering with the Employee’s personal and other professional
obligations. 
 11.2. Parachute Payments. 
 (a) Anything in this Agreement to the contrary notwithstanding, in the event that it shall be determined that any payment or distribution
by the Company or its Affiliates to or for the benefit of the Employee, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, would constitute an “excess parachute payment” within the
meaning of §280G of the Internal Revenue Code of 1986, as amended (the “Code”) (each such payment, a “Parachute Payment”) and would result in the imposition on the Employee of an excise tax under Code §4999, then, in
addition to any other benefits to which the Employee is entitled under this Agreement or otherwise, the Employee shall be paid an amount in cash equal to the sum of the excise taxes payable by the Employee by reason of receiving Parachute Payments
plus the amount necessary to place the Employee in the same after-tax 

  

 -11- 

 
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 11.2(a)) as if no excise taxes had been imposed with respect to Parachute Payments (the “Parachute Gross-up”). Any Parachute Gross-up otherwise
required by this subparagraph 11.2(a) shall not be made later than the time of the corresponding payment or benefit hereunder giving rise to the underlying Code §4999 excise tax (to the extent such determination has been made prior to such
time), even if the payment of the excise tax is not required under the Code until a later time. Any Parachute Gross-up otherwise required under this subparagraph 11.2(a) shall be made whether or not there is a Change in Control, whether or not
payments or benefits are payable under this Agreement, whether or not the payments or benefits giving rise to the Parachute Gross-up are made in respect of a Change in Control and whether or not the Employee’s employment with the Employer shall
have been terminated. 
 (b) All determinations to be made under this subparagraph 11.2 shall be made by an independent public
accounting firm chosen by the Company (the “Accounting Firm”). 
 (c) In the event the Internal Revenue Service
notifies the Employee of an inquiry with respect to the applicability of Code §280G or Code §4999 to any payment by the Company or its Affiliates, or assessment of tax under Code §4999 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. 
  

 -12- 

 (d) All of the fees and expenses of the Accounting Firm in performing the determinations
referred to in subparagraphs (a) and (b) above, or of the representative appointed pursuant to subparagraph (c) above, shall be borne solely by the Company. 
 (e) Notwithstanding the foregoing, if the imposition of a Code §4999 excise tax could be avoided by a reduction of the payments due
to the Employee (determined before application of subparagraph 11.2(a)) by an amount of 10% or less, then the total of all such payments will be reduced to an amount one dollar ($1.00) below the amount that would cause a Code §4999 excise tax
to be imposed, and subparagraph 11.2(a) will not apply. 
 11.3. Enforcement. Following any Change in Control, the
Company will pay all legal fees and costs incurred by the Employee to enforce his 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. 
 12. Records. Upon the termination of employment hereunder, the Employee shall deliver to the Company all
correspondence, reports, customer lists, office keys, manuals, advertising brochures, sample contracts, price lists, employee lists, prospective employee lists, mailing lists, letters, records and any and all other documents pertaining to or
containing information relative to the business of the Company, and the Employee shall not remove any of such records either during the course of employment or upon the termination thereof. 
 The Employee understands that in the event of a violation of the provisions of this Paragraph 12, the Company shall have the right to seek injunctive
relief, in addition to any other existing rights provided herein or by operation of law, without the requirement of posting bond. 

  

 -13- 

 
The remedies provided in this Paragraph 12 shall be in addition to any legal or equitable remedies existing between the Employee and the Company, and shall
not be construed as a limitation upon, or as alternative or in lieu of, such remedies. 
 13. Prohibited Assignment. The Employee
shall have no right to exchange, convert, encumber or dispose of the rights to receive the benefits or payments under this Agreement, which payments, benefits and rights thereto are expressly declared to be non-assignable and non-transferable.

 14. Indemnification. To the extent permitted by law, the Company shall indemnify the Employee and hold him or her harmless from all
liability and claims, whether meritorious or not, including the cost of defense thereof (including reasonable attorneys’ fees) which have arisen or accrued or which hereafter may arise or accrue and are based upon any act or omission which the
Employee has taken or committed or hereafter may take or commit on behalf of or in connection with the Company in his or her official capacity, so long as the following conditions are met with respect to such claim or liability: (a) if such
action was taken in the exercise of reasonable business judgment and was taken in an area within the scope of responsibility of the Employee, or (b) if not within the scope of the Employee’s responsibility, (i) at the time of such act
or omission the Board of Directors of the Company had knowledge of the facts or circumstances pursuant to which such act was taken or such omission occurred and (ii) no written objection to such act or omission was duly made by the Board.

 Actions taken by the Employee which are covered by this Agreement specifically include (by way of illustration), but are not limited to,
(a) the payment of any salary, bonus or other compensation to any officer, director, or employee, (b) the reimbursement or payment of any expenses incurred by any such officer, director or employee, (c) the making or retention of any

  

 -14- 

 
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. 
 15. Non-Competition. 
 15.1. During the Employee’s Period of Employment and for one year thereafter: 
 15.1.1. the Employee will not
directly for himself or herself or any third party, become engaged in any business or activity which is directly in competition with any services or financial products sold by, or any business or activity engaged in by, the Company, including,
without limitation, any business or activity engaged in by any federally or state chartered bank, savings bank, savings and loan association, trust company and/or credit union, and/or any services or financial products sold by such entities,
including, without limitation, the taking and accepting of deposits, the provision of trust services, the making of loans and/or the extension of credit, brokering loans and/or leases and the provision of insurance and investment services, within a
25 mile radius of any office or facility of the Company or any of 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 ten percent (10%) of the outstanding capital stock of such institution. 
  

 -15- 

 15.1.2. the Employee will not solicit any person who was a customer of the Company during
the period of the Employee’s employment hereunder, or solicit potential customers who are or were identified through leads developed during the course of employment with the Company, or otherwise divert or attempt to divert any existing
business of the Company within any area of 100 miles of any office or facility of the Company or any of its Affiliates. 
 15.1.3. the Employee will 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 Company. 
 15.2. 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 10.1, may forfeit the additional pension benefit provided under subparagraph 11.1.2, and may seek, as a remedy, a return of any prior compensation continuation payments made under
subparagraph 10.1.4. 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 

  

 -16- 

 
or covering too great a geographical area, it shall be in full force and effect as to that period of time or geographical area determined to be reasonable by
the court. 
 15.3. In the event of a Change in Control, the Employee acknowledges that the provisions of Paragraph 15 hereof
shall extend to any offices or facilities of any business that becomes an affiliate of or successor to the Company on account of such Change in Control. 
 16. Survival. Notwithstanding anything to the contrary in this Agreement, the parties agree that the Employee’s obligations under Paragraphs 8, 9, 10.3, 12 and 15 of this Agreement will continue despite
the expiration of the term of this Agreement or its termination. 
 17. Preemptive Considerations. Notwithstanding anything to the
contrary set forth herein: 
 17.1. If the Employee is suspended and/or temporarily prohibited from participating in the
conduct of the Company’s affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(3) and (g)(1)) or any amendments or supplements thereto, the Company’s obligations under this
Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Company may in its discretion (i) pay the Employee all or part of the compensation withheld while
this Agreement’s obligations were suspended, and (ii) reinstate (in whole or in part) any of its obligations which were suspended. 
 17.2. If the Employee is removed and/or permanently prohibited from participating in the conduct of the Company’s or any Affiliate’s 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 an Affiliate, all obligations of the Company or
the Affiliate under the contract shall terminate as of the effective date of the order, but vested rights of the parties shall not be affected. 
  

 -17- 

 17.3. 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 an Affiliate), all obligations under this Agreement shall terminate as of the date of default, but this subparagraph
17.3 shall not affect any vested rights of the parties. 
 18. Definitions. For purposes of this Agreement: 
 18.1. 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 twenty percent (20%), as compared to the average
of the two (2) preceding years, or (B) a 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. 
 However, none of the foregoing events or conditions will constitute an Adverse Change
unless: (x) the Employee provides the Company with written objection to the event or condition 

  

 -18- 

 
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 employment within 60 days following the expiration of that cure period. 
 18.2. The term “Affiliate” shall mean with respect to the Company, persons or entities controlling, controlled by or under common control with the Company. 
 18.3. 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. 
 18.4. The term
“Board” shall mean the board of directors of the Company. 
 18.5. 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. 
 18.6. 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; 
  

 -19- 

 (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) (for the avoidance of the doubt, the
term “Incumbent Directors” as used in this subparagraph 18.6 shall be deemed to include those 6 additional individuals who are to join the Board as a result of the merger between Company and Community Banks, Inc. as detailed in that
Agreement and Plan of Merger Between Susquehanna Bancshares, Inc. and Community Banks, Inc. dated as of April 30, 2007); 
 (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, 

  

 -20- 

 
or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the
beneficial owner, as defined in clause (a), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its subsidiaries) representing
40% or more of either the then outstanding shares of stock of the Company or the combined voting power of the Company’s then outstanding securities; or 
 (d) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company, or there is consummated an
agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 60% of the
combined voting power of the voting securities of which are owned by Persons in substantially the same proportion as their ownership of the Company immediately prior to such sale. 
 Upon the occurrence of a Change in Control, no subsequent event or condition shall constitute a Change in Control for purposes of this Agreement, with the result that there can be no more than one Change in Control
hereunder. 
 18.7. The term “Company” shall mean the Company as hereinbefore defined or any entity succeeding to
substantially all of the assets and business of the Company. 
 18.8. The term “COBRA Benefits” shall refer to
continued group health insurance benefits under sections 601-607 of the federal Employee Retirement Income Security Act, as amended, (29 U.S.C. part 6) Act and regulations promulgated thereunder. 
  

 -21- 

 18.9. The term “Disability” means a condition entitling the Employee to
benefits under the Company’s long term disability plan, policy or arrangement; provided, however, that if no such plan, policy or arrangement is then maintained by the Company and applicable to the Employee, “Disability” will
mean the Employee’s inability to perform his 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.” 
 18.10.
The term “Non-Competition Period” shall mean, with respect to a specified cessation of employment, the one (or, in the case of a Change in Control, up to four) year period specified in subparagraph 15.1. 
 18.11. The term “Period of Employment” shall have the meaning described in Paragraph 3. 
 18.12. The term “Person” shall have the meaning ascribed thereto by Section 3(a)(9) of the Securities Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof (except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company
or any of its subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same
proportion as their ownership of stock of the Company, or (v)such Employee or any “group” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act) which includes the Employee). 
  

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 19. Miscellaneous. 
 19.1. Assignment. This Agreement (including, without limitation, paragraph 14 hereof relating to non-competition) shall be binding
upon the parties hereto, the heirs and legal representatives of the Employee and the successors and assigns of the Company. 
 19.2. Notices. Any notice required, permitted or intended to be given under this Agreement shall be in writing and shall be deemed to have been given only if delivered personally or sent by registered or certified mail, return
receipt requested, postage prepaid to the appropriate address shown below, or such revised address as is delivered to the other party by the same means. 
  

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

 Susquehanna
Bancshares 
 Attn. Director of Human Resources 
 26 North Cedar Street 
 P.O. Box 1000 
 Lititz, PA 17543-7000 
  

	 	(b)	Notices to the Employee shall be sent to: 

 Michael M.
Quick 
 323 Hawthorne Avenue 
 Haddonfield, New Jersey 08033 
 19.3. Entire Agreement. This Agreement constitutes the entire agreement
between the parties in connection with the subject matter hereof, supersedes any and all prior agreements or understandings between the parties and may only be changed by agreement in writing between the parties. 
 19.4. 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. 
  

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

											
		 		 	SUSQUEHANNA BANCSHARES, INC.	 	
						
	Attest:	 	/s/ Lisa M. Cavage	 		 	By:	 	/s/ Edward Balderston, Jr.	 	 
		 	Secretary	 		 		 	Edward Balderston, Jr.	 	
		 		 		 		 	Executive Vice President	 	
				
		 		 	EMPLOYEE	 	
	Witness:	 		 		 	
						
		 	/s/ Linda Nelson	 		 		 	/s/ Michael M. Quick	 	(Seal)
	Name: Linda Nelson	 		 		 	Michael M. Quick	 	

  

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