Document:

Form of the 2040 Note

 EXHIBIT 4.3 

(FACE OF SECURITY) 
 THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO
TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (THE
“DEPOSITARY”) AND ANY PAYMENT IS MADE TO CEDE & CO., OR SUCH OTHER NAME REQUESTED BY THE DEPOSITARY, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL
SECURITIES REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 

 5.750% Notes due 2040 

CORNING INCORPORATED 
  

			
	Issue Date: August 10, 2010	  	Maturity: August 15, 2040
		
	Principal Amount: $400,000,000	  	CUSIP No.: 219350 AV7 
		
	Registered: R-1	  	ISIN No.: US219350AV70

 Corning
Incorporated, a corporation duly organized and existing under the laws of the State of New York (herein called the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of Four Hundred Million Dollars ($400,000,000) on August 15, 2040, and to pay interest thereon from August 10, 2010 or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semi-annually on February 15 and August 15 in each year, commencing February 15, 2011, and at the Maturity thereof, at the rate of 5.750% per annum, until the principal
hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security is registered at the
close of business on the Regular Record Date for such interest, which shall be February 1 or August 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest so payable, but not
punctually paid or duly provided for, on any Interest Payment Date will forthwith cease to be 

 
payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid in any other
lawful manner not inconsistent with the requirements of any securities exchange on which this Security may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 

Payment of the principal of (and premium, if any) and interest on this Security will be made at the office or agency of the Company
maintained for that purpose in New York, New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, against surrender of this Security in the case of any
payment due at the Maturity of the principal thereof (other than any payment of interest that first becomes payable on a day other than an Interest Payment Date); provided, however, that at the option of the Company, payment of
interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register; and provided, further, that if this Security is a Global Security, payment may be made pursuant
to the Applicable Procedures of the Depositary as permitted in said Indenture. 
 Reference is hereby made to the further
provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
  

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 Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal. 

Dated: August 10, 2010 
  

							
	[SEAL]	 		 	CORNING INCORPORATED
				
		 		 	By:	 	  

		 		 	Name:	 	Mark S. Rogus
		 		 	Title:	 	Senior Vice President and Treasurer

  

					
	Attest:	 	By:	 	  

		 	Name:	 	Denise Hauselt
		 	Title:	 	Vice President and Secretary

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated herein and referred to in the within-mentioned Indenture. 

 

							
	Dated: August 10, 2010	 		 		 	 THE BANK OF NEW YORK
 MELLON
TRUST COMPANY, N.A.,

		 		 		 	as Trustee
				
		 		 		 	  

		 		 		 	Authorized Signatory

 (REVERSE OF SECURITY) 

5.750% Notes due 2040 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be
issued in one or more series under an Indenture, dated as of November 8, 2000 (herein called the “Indenture”, which term shall have the meaning assigned to it in such instrument), as supplemented, between the Company and The Bank of
New York Mellon Trust Company, N.A. (successor to JPMorgan Chase Bank, N.A., formerly The Chase Manhattan Bank), as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), and reference is
hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to
be, authenticated and delivered. This Security is one of the series designated on the face hereof, limited initially in aggregate principal amount to $400,000,000. 

The Securities of this series are subject to redemption as follows: 

The Securities will be redeemable in whole at any time or in part from time to time, at the option of the Company, at a redemption price equal to the
greater of (i) 100% of the principal amount of the Securities to be redeemed; or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Securities to be redeemed (exclusive of interest
accrued to the date of redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the then current Treasury Rate plus 30 basis points. 

 

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 The Company will pay accrued and unpaid interest on the principal amount being redeemed to
the date of redemption. 
 In connection with such optional redemption, the following defined terms apply: 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a
maturity comparable to the remaining term of the Securities to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Securities. 
 “Comparable Treasury Price” means, with respect to any Redemption
Date, (1) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Trustee obtains fewer than four such Reference Treasury
Dealer Quotations, the average of all such quotations. 
 “Independent Investment Banker” means one of the Reference
Treasury Dealers that the Company appoints to act as the Independent Investment Banker from time to time. 
 “Redemption
Date” means the date fixed for redemption of the Security by or pursuant to the Indenture. 
 “Reference Treasury
Dealer” means each of Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc. and their respective successors, and three other firms that are primary U.S. Government securities dealers (each a “Primary Treasury Dealer”) which
the Company specifies from time to time; provided, however, that if any of them ceases to be a Primary Treasury Dealer, the Company will substitute another Primary Treasury Dealer. 

 

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 “Reference Treasury Dealer Quotations” means, with respect to each Reference
Treasury Dealer and any Redemption Date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by
such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 

“Treasury Rate” means, with respect to any Redemption Date, the rate per year equal to the semiannual equivalent yield to
maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The Treasury Rate shall be
calculated on the third Business Day preceding the Redemption Date. 
 If the Company decides to redeem less than all of the
Outstanding Securities, the Trustee will select the Securities to be redeemed: 
  

	 	•	 	 by lot, 

  

	 	•	 	 pro rata, or 

  

	 	•	 	 by any other method the Trustee considers fair and appropriate. 

Notice of redemption will be mailed at least 30 but not more than 60 days before the Redemption Date to each Holder of record of the
Securities to be redeemed at its registered address. The notice of redemption for the Securities will state, among other things, the amount of Securities to be redeemed, the Redemption Date, the manner in which the

  

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redemption price will be calculated and the place or places that payment will be made upon presentation and surrender of Securities to be redeemed. Unless the Company defaults in the payment of
the redemption price, interest will cease to accrue on any Securities that have been called for redemption at the Redemption Date. 

In the event of redemption of this Security in part only, a new Security or Securities of this Series and of like tenor for the
unredeemed portion hereof will be issued in the name of the Holders hereof upon the cancellation hereof. 
 Repurchase upon a
Change of Control Triggering Event 
 If a Change of Control Triggering Event (as defined below) occurs, unless the Company
has exercised its right to redeem the Securities as described above, it will be required to make an offer to each Holder to repurchase all or, at the Holder’s option, any part (equal to $2,000 or any multiple of $1,000 in excess thereof), of
each Holder’s Securities pursuant to the offer described below (the “Change of Control Offer”) on the terms set forth in the Securities. In the Change of Control Offer, the Company will be required to offer to repurchase each
Holder’s Securities in cash at a price equal to 101% of the aggregate principal amount of Securities repurchased, plus any accrued and unpaid interest on the Securities repurchased to, but not including, the date of repurchase (the “Change
of Control Payment”). 
 Within 30 days following any Change of Control Triggering Event, or at the Company’s option,
prior to any Change of Control (as defined below), but after the public announcement of a pending Change of Control, the Company will be required to send to each Holder of Securities, a notice describing the transaction that constitutes or may
constitute the Change of 
  

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Control Triggering Event and offering to repurchase such Securities on the date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the
date such notice is mailed (a “Change of Control Payment Date”). The notice, if mailed prior to the date of consummation of the Change of Control, will state that the Change of Control Offer is conditioned on the Change of Control
Triggering Event occurring on or prior to the Change of Control Payment Date. 
 On the Change of Control Payment Date, the
Company will be required, to the extent lawful, to: 
  

	 	•	 	 accept for payment all Securities or portions of Securities properly tendered pursuant to the Change of Control Offer; 

 

	 	•	 	 deposit with the paying agent an amount equal to the Change of Control Payment in respect of all Securities or portions of Securities properly
tendered; and 

  

	 	•	 	 deliver or cause to be delivered to the Trustee the Securities properly accepted together with an officer’s certificate stating the aggregate
principal amount of Securities or portions of Securities being purchased by the Company. 

 The paying agent
will be required to promptly mail, to each Holder who properly tendered Securities, the Change of Control Payment for such Securities, and the Trustee will be required to promptly authenticate and mail (or cause to be transferred by book entry) to
each such Holder a new note equal in principal amount to any unpurchased portion of the Securities surrendered, if any; provided that each new note will be in a principal amount of $2,000 or a multiple of $1,000 in excess thereof. 

The Company will not be required to make a Change of Control Offer upon a Change of Control Triggering Event if a third party makes an
offer to purchase the Securities in the 
  

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manner, at the times and otherwise in compliance with the requirements for an offer to purchase made by the Company and such third party purchases all Securities properly tendered and not
withdrawn under its offer. In the event that such third party terminates or defaults its offer, the Company will be required to make a Change of Control Offer treating the date of such termination or default as though it were the date of the Change
of Control Triggering Event. 
 The Company will not repurchase any Securities if there has occurred and is continuing on the
Change of Control Payment Date an event of default under the Indenture, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event. 

For purposes of the repurchase provisions of the Securities, the following terms will be applicable: 

“Change of Control” means the occurrence of any one of the following: (1) the direct or indirect sale, lease, transfer,
conveyance or other disposition (other than by way of merger, amalgamation, arrangement or consolidation), in one or a series of related transactions, of all or substantially all of the Company’s properties or assets and those of its
subsidiaries, taken as a whole, to one or more persons, other than to the Company or one of its subsidiaries; (2) the first day on which a majority of the members of the Company’s board of directors is not composed of Continuing Directors
(as defined below); (3) the consummation of any transaction including, without limitation, any merger, amalgamation, arrangement or consolidation the result of which is that any person becomes the beneficial owner, directly or

  

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indirectly, of more than 50% of the Company’s Voting Stock, measured by voting power rather than number of shares; (4) the Company consolidates with, or merges with or into, any person,
or any person consolidates with, or merges with or into, the Company, in any such event pursuant to a transaction in which any of the outstanding Voting Stock of the Company or of such other person is converted into or exchanged for cash, securities
or other property, other than any such transaction where the shares of the Company’s Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the
surviving person or any direct or indirect parent company of the surviving person immediately after giving effect to such transaction; or (5) the adoption of a plan relating to the Company’s liquidation or dissolution (other than its
liquidation into a newly formed holding company). Notwithstanding the foregoing, a transaction described in clause (3) above will not be deemed to involve a Change of Control if (1) the Company becomes a direct or indirect wholly-owned
subsidiary of a holding company (which shall include a direct or indirect parent company of such holding company) and (2)(A) the direct or indirect Holders of the Voting Stock of such holding company immediately following that transaction are
substantially the same as, and hold in substantially the same proportions as, the Holders of the Company’s Voting Stock immediately prior to that transaction or (B) immediately following that transaction no person, other than a holding
company satisfying the requirements of this sentence, is the beneficial owner, directly or indirectly, of more than 50% of the then outstanding Voting Stock, measured by voting power, of such holding company or its parent company. Following any such
transaction, references in this definition to the Company shall be deemed to refer to such holding company. For the purposes of this definition, “person” and “beneficial owner” have the meanings used in Section 13(d) of the
Exchange Act. 
  

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 “Change of Control Triggering Event” means the Securities cease to be rated
Investment Grade by each of the Rating Agencies on any date during the 60-day period (the “Trigger Period”) following the earlier date of (1) the first public announcement of the Change of Control or the Company’s intention to
effect a Change of Control and (2) the consummation of such Change of Control, which Trigger Period will be extended following consummation of a Change of Control for so long as the rating of the Securities is under publicly announced
consideration for possible downgrade by any of the Rating Agencies. Unless at least one Rating Agency is providing a rating for the long-term unsecured debt of the Company at the commencement of any Trigger Period, the Securities will be deemed to
have ceased to be rated Investment Grade during that Trigger Period. Notwithstanding the foregoing, no Change of Control Triggering Event will be deemed to have occurred in connection with any particular Change of Control unless and until such
Change of Control has actually been consummated. 
 “Continuing Directors” means, as of any date of determination, any
member of the Company’s board of directors who (1) was a member of the Company’s board of directors on the date the Securities were issued; or (2) was nominated for election, elected or appointed to the Company’s board of
directors with the approval of a majority of the Continuing Directors who were members of the Company’s board of directors at the time of such nomination, election or appointment (either by specific action of the board of directors or by
approval by such directors of the Company’s proxy statement in which such member was named as a nominee for election as a director). 
  

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 “Fitch” means Fitch Inc., and its successors. 

“Investment Grade” means a rating equal to or higher than BBB- (or the equivalent) by Fitch, Baa3 (or the equivalent) by
Moody’s or BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by the Company. 

“Moody’s” means Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation, and its successors.

 “Rating Agencies” means (a) each of Fitch, Moody’s and S&P; and (b) if any of the Rating
Agencies ceases to provide rating services to issuers or investors, a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act that is selected by the Company (as
certified by the Company’s chief executive officer or chief financial officer) as a replacement for Fitch, Moody’s or S&P, or all of them, as the case may be. 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and its
successors. 
 “Voting Stock” of any specified person as of any date means the capital stock of such person that is at
the time entitled to vote generally in the election of the board of directors of such person. 
  

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 The Indenture contains provisions for defeasance at any time of the entire indebtedness of
this Security or certain restrictive covenants and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture. 

No sinking fund is provided for the Securities. 

If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this
series may be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of all series to be affected (considered together as one class for this purpose). The Indenture also contains
provisions (i) permitting the Holders of a majority in principal amount of the Securities at the time Outstanding of all series to be affected under the Indenture (considered together as one class for this purpose), on behalf of the Holders of
all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and (ii) permitting the Holders of a majority in principal amount of the Securities at the time Outstanding of any series to be affected
under the Indenture (with each such series considered separately for this purpose), on behalf of the Holders of all Securities of such series, to waive certain past defaults under the Indenture and their consequences. Any such consent or waiver by
the Holder of this Security shall be conclusive 
  

 - 10 - 

 
and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or
not notation of such consent or waiver is made upon this Security. 
 As provided in and subject to the provisions of the
Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture, or for the appointment of a receiver or trustee, or for any other remedy thereunder, unless such Holder shall have previously
given the Trustee written notice of a continuing Event of Default with respect to the Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee indemnity reasonably satisfactory to it, and the Trustee shall not have received from the Holders of a majority in principal
amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

 

 - 11 - 

 As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security
are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Securities of this series are issuable only in registered form without coupons in denominations of $2,000 and integral multiples of
$1,000. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary. 
  

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 This Security is a Global Security and is subject to the provisions of the Indenture
relating to Global Securities, including the limitations in Section 305 thereof on transfers and exchanges of Global Securities. 

This Security and the Indenture shall be governed by and construed in accordance with the laws of the State of New York. 

All terms used in this Security that are defined in the Indenture and not defined herein shall have the meanings assigned to them in the
Indenture. 
  

 - 13 -Deferred Compensation Agreement

 Exhibit 10.5 

GRAYSTONE TOWER BANK 

DEFERRED COMPENSATION AGREEMENT 

This Deferred Compensation Agreement (this “Agreement”) is entered into this 2nd day of June, 2010, by and
between Graystone Tower Bank, a state-chartered commercial bank located in Lancaster, Pennsylvania (the “Bank”), and Andrew Samuel (the “Executive”). 

The purpose of this Agreement is to provide specified benefits to the Executive, a member of a select group of management or highly
compensated employees who contribute materially to the continued growth, development and future business success of the Bank. This Agreement shall be unfunded for tax purposes and for purposes of Title I of the Employee Retirement Income Security
Act of 1974 (“ERISA”), as amended from time to time. 
 Article 1 

Definitions 

Whenever used in this Agreement, the following words and phrases shall have the meanings specified: 

 

	1.1	“Base Salary” means the annual pay rate as of the end of a Plan Year excluding distributions from nonqualified deferred compensation plans, bonuses,
commissions, overtime, fringe benefits, stock options, relocation expenses, incentive payments, non-monetary awards, and other fees, and automobile and other allowances paid to the Executive for employment rendered (whether or not such allowances
are included in the Executive’s gross income). Base Salary shall be calculated before reduction for compensation voluntarily deferred or contributed by the Executive pursuant to all qualified or non-qualified plans of the Bank and shall be
calculated to include amounts not otherwise included in the Executive’s gross income under Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans established by the Bank; provided, however, that all such amounts will be included in
compensation only to the extent that had there been no such plan, the amount would have been payable in cash to the Executive. 

  

	1.2	“Beneficiary” means each designated person, or the estate of the deceased Executive, entitled to benefits under this Agreement, if any, upon the death
of the Executive. 

  

	1.3	“Beneficiary Designation Form” means the form established from time to time by the Plan Administrator that the Executive completes, signs and returns
to the Plan Administrator to designate one or more beneficiaries. 

  

	1.4	“Board” means the Board of Directors of the Bank or the Holding Company as from time to time constituted. 

 

	1.5	“Bonus” means the cash bonus, if any, awarded to the Executive for services performed during the Plan Year. 

	1.6	“Change in Control” of the Holding Company or the Bank shall mean a change in the ownership or effective control applicable to the Holding Company or
the Bank as described in Section 409A(a)(2)(A)(v) of Code (or any successor provision thereto) and the regulations there under. 

  

	1.7	“Code” means the Internal Revenue Code of 1986, as amended, and all regulations and guidance thereunder, including such regulations and guidance as may
be promulgated after the Effective Date. 

  

	1.8	“Compensation” means the total Base Salary and Bonus paid to the Executive during a Plan Year. 

 

	1.9	“Deferral Account” means the accumulated Executive Deferrals plus Grants plus accrued interest thereon. 

 

	1.10	“Deferral Election Form” means the form established from time to time by the Plan Administrator that the Executive completes, signs and returns to the
Plan Administrator to designate the amount of Executive Deferrals. 

  

	1.11	“Early Termination” means Separation from Service before Normal Retirement Age. Early Termination shall not include a Separation from Service within 24
months following a Change in Control. 

  

	1.12	“Effective Date” means May 1, 2010. 

  

	1.13	“Employment Agreement” means that certain employment agreement entered into by and between the Bank and the Executive on November 12, 2008,
and any extension, renewal or replacement thereof. 

  

	1.14	“Executive Deferrals” means the amount of Compensation the Executive elects to defer according to this Agreement. 

 

	1.15	“Grant” means the amount, if any, credited by the Bank to the Deferral Account under Section 3.1(b). The Grant shall be determined by multiplying
the Performance Targets Percentage by the Executive’s Base Salary for the Plan Year in which the determination period applies. The Bank shall make a minimum Grant for each Plan Year equal to three percent (3%) of Base Salary. To receive a
Grant for any given year, the Executive must be employed by the Bank or the Holding Company on the last day of the applicable Plan Year. 

  

	1.16	“Holding Company” means Tower Bancorp, Inc., or any successor entity. 

 

	1.17	“Normal Retirement Age” means the Executive attaining age sixty (60) and completing ten (10) Years of Service. 

 

 2 

	1.18	“Performance Targets Percentage” shall be a percentage determined annually by the achievement of certain performance targets, attached hereto as
Addendum A. The Bank, in its sole discretion, may change these performance targets from one Plan Year to the next, may impose additional conditions and qualifiers to which these performance targets are subject, and shall notify the Executive in
writing of these performance targets and any additional qualifiers or conditions at or before the beginning of each Plan Year. 

  

	1.19	“Plan Administrator” means the Board or such committee or person as the Board shall appoint. 

 

	1.20	“Plan Year” means each twelve (12) month period commencing on January 1 and ending on December 31 of each year. The initial Plan Year
shall commence on the Effective Date of this Agreement and end on December 31, 2010. 

  

	1.21	“Operating Return On Assets” or “(OROA)” means the Holding Company’s after-tax net income at the end of the most recent fiscal
year, excluding merger related expenses and other non-recurring items as determined by Holding Company management and the Board of Directors, divided by the Holding Company’s average assets for the same fiscal year, as reported in the Holding
Company’s general ledger. 

  

	1.22	“Operating Return on Tangible Equity” or “(OROTE)” means the Holding Company’s after-tax net income at the end of the most recent
fiscal year, excluding merger related expenses and other non-recurring items as determined by Holding Company management and the Board of Directors, divided by the Holding Company’s average tangible equity for the same fiscal year, as reported
in the Holding Company’s general ledger. 

  

	1.23	“Separation from Service” means termination of the Executive’s employment with the Bank for reasons other than death. Whether a Separation from
Service has occurred is determined in accordance with the requirements of Code Section 409A based on whether the facts and circumstances indicate that the Bank and Executive reasonably anticipated that no further services would be performed
after a certain date or that the level of bona fide services the Executive would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average
level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding thirty-six (36) month period (or the full period of services to the Bank if the Executive has been providing services to
the Bank less than thirty-six (36) months). 

  

	1.24	 “Specified Employee” means an employee who at the time of Separation from Service is a key employee of the Bank, if any stock of the
Holding Company is publicly traded on an established securities market or otherwise. For purposes of this Agreement, an employee is a key employee if the employee meets the requirements of Code Section 416(i)(1)(A)(i), (ii), or
(iii) (applied in accordance with the regulations thereunder and disregarding section 416(i)(5)) at any time during the twelve (12) month period ending on December 31 (the “identification period”). If the employee is a key
employee during an identification period, the employee is treated as a key employee for purposes of this 

  

 3 

	 	 
Agreement during the twelve (12) month period that begins on the first day of April following the close of the identification period. 

 

	1.25	“Termination for Cause” means a Separation from Service for: 

 

	 	(a)	Gross negligence or gross neglect of duties to the Bank; 

  

	 	(b)	Conviction of a felony or of a gross misdemeanor involving moral turpitude in connection with the Executive’s employment with the Bank; or

  

	 	(c)	Fraud, disloyalty, dishonesty or willful violation of any law or significant Bank policy committed in connection with the Executive’s employment and resulting in a
material adverse effect on the Bank. 

  

	1.26	“Years of Service” means the twelve (12) consecutive month period beginning on the Executive’s date of hire and any twelve (12) month
anniversary thereof during the entirety of which time the Executive is an employee of the Bank. Service with a subsidiary or other entity controlled by the Bank before the time such entity became a subsidiary or under such control shall not be
considered “credited service.” 

 Article 2 

Deferral Election 
  

	2.1	Elections Generally. The Executive may annually file a Compensation Deferral Election Form with the Plan Administrator no later than the end of the Plan Year
preceding the Plan Year in which services leading to such Compensation will be performed. 

  

	2.2	Initial Election. After being notified by the Plan Administrator of becoming eligible to participate in this Agreement, the Executive may make an initial
deferral election by delivering to the Plan Administrator a signed Deferral Election Form and Beneficiary Designation Form within thirty (30) days of becoming eligible. The Deferral Election Form shall set forth the amount of Compensation to be
deferred. However, if the Executive was eligible to participate in any other account balance plans sponsored by the Bank (as referenced in Code Section 409A) prior to becoming eligible to participate in this Agreement, the initial election to
defer Compensation under this Agreement shall not be effective until the Plan Year following the Plan Year in which the Executive became eligible to participate in this Agreement. 

 

	2.3	Election Changes. The Executive may modify the amount of Compensation to be deferred annually by filing a new Deferral Election Form with the Bank. The modified
deferral shall not be effective until the calendar year following the year in which the subsequent Deferral Election Form is received by the Bank. 

Article 3 

Deferral Account 
  

	3.1	Establishing and Crediting. The Bank shall establish a Deferral Account on its books for the Executive and shall credit to the Deferral Account the following
amounts: 

  

 4 

	 	(a)	A one time contribution on or after the Effective Date in the amount of Fifty Two Thousand Two Hundred Dollars ($52,200). 

 

	 	(b)	Any Executive Deferrals hereunder; 

  

	 	(c)	With ninety (90) days following the completion of each Plan Year, the Bank shall make a Grant to the Deferral Account if any of the Bank’s performance targets
for such Plan Year are met and if all of the qualifiers and conditions (if any) for such Plan Year are also met, as such performance targets, qualifiers, and conditions are set forth on Addendum A and as modified from time to time, provided interest
on such Grant shall commence as of the beginning of the Plan Year; and 

  

	 	(d)	Interest as follows: 

  

	 	(i)	On the last day of each month and immediately prior to the distribution of any benefits, but only until commencement of benefit distributions under this Agreement,
interest shall be credited on the Deferral Account at an annual rate equal to one percent (1%), plus the annual rate on a ten-year Treasury Note determined by taking the average rate of all the rates of the Treasury Note in the month of December of
the prior Plan Year, compounded monthly; and 

  

	 	(ii)	On the last day of each month during any applicable installment period, interest shall be credited on the unpaid Deferral Account balance at an annual rate equal to one
percent (1%), plus the annual rate on a ten-year Treasury Note as determined by taking the average rate of all the rates of the Treasury Note in the month immediately preceding the first installment payment, compounded monthly. This rate shall be
used during the entire applicable installment period. 

  

	 	(e)	In the event any Grant to the Deferral Account is subsequently determined to have been based on inaccurate financial statements or any other inaccurate
performance metric criteria, the Deferral Account balance shall be adjusted to reflect the proper amount of such Grant, including related interest thereon, in accordance with the corrected information. If such determination occurs after the
Executive begins to receive distributions under Article 4 hereof, any future installment payments will be adjusted to account for any change in the Deferral Account balance. 

 

	3.2	Accounting Device Only. The Deferral Account is solely a device for measuring amounts to be paid under this Agreement and is not a trust fund of any kind.

 Article 4 

Distributions During Lifetime 
  

	4.1	Normal Retirement Benefit. Upon Separation from Service after Normal Retirement Age, the Bank shall distribute to the Executive the benefit described in this
Section 4.1 in lieu of any other benefit under this Article. 

  

	 	4.1.1	Amount of Benefit. The benefit under this Section 4.1 is one hundred percent (100%) of the Executive’s Deferral Account balance determined as of
the date of the Executive’s Separation from Service. 

  

 5 

	 	4.1.2	Distribution of Benefit. The Bank shall distribute the benefit to the Executive in one hundred eighty (180) consecutive monthly installments commencing on
the first day of the first month following Separation from Service. 

  

	4.2	Early Termination. If Early Termination occurs, the Bank shall distribute to the Executive the benefit described in this Section 4.2 in lieu of any other
benefit under this Article. 

  

	 	4.2.1	Amount of Benefit. The benefit under this Section 4.2 is one hundred percent (100%) of the Executive’s Deferral Account balance determined as of
the date immediately prior to the date distributions commence. Interest will continue to be credited to the Executive’s Deferral Account from the date of Separation from Service as specified in Section 3.1(d). 

 

	 	4.2.2	Distribution of Benefit. The Bank shall distribute the benefit to the Executive in one hundred twenty (120) consecutive monthly installments
commencing on the first day of the first month following Normal Retirement Age. 

  

	4.3	Change in Control Benefit. If a Change in Control occurs prior to Normal Retirement Age and is followed within twenty-four (24) months by the
Executive’s Separation from Service, the Bank shall distribute to the Executive the benefit described in this Section 4.3 in lieu of any other benefit under this Article. 

 

	 	4.3.1	Amount of Benefit. The benefit under this Section 4.3 is one hundred percent (100%) of the Executive’s Deferral Account balance determined as of
the date of the Executive’s Separation from Service. 

  

	 	4.3.2	Distribution of Benefit. The Bank shall distribute the benefit to the Executive in a lump sum within 90 days following Separation from Service.

  

	4.4	Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Executive is considered a Specified
Employee, the provisions of this Section 4.4 shall govern all distributions hereunder. If benefit distributions which would otherwise be made to the Executive due to Separation from Service are limited because the Executive is a Specified
Employee, then such distributions shall not be made during the first six (6) months following Separation from Service. Rather, any distribution which would otherwise be paid to the Executive during such period shall be accumulated and paid to
the Executive in a lump sum on the first day of the seventh month following Separation from Service. All subsequent distributions shall be paid in the manner specified. 

 

	4.5	Distributions Upon Taxation of Amounts Deferred. If, pursuant to Code Section 409A, the Federal Insurance Contributions Act or other state, local or foreign
tax, the Executive becomes subject to tax on the amounts deferred hereunder, then the Bank may make a limited distribution to the Executive in a manner that conforms to the requirements of Code section 409A. Any such distribution will decrease the
Deferral Account balance. 

  

 6 

	4.6	Change in Form or Timing of Distributions. For distribution of benefits under this Article 4, the Executive and the Bank may, subject to the terms of
Section 10.1, amend this Agreement to delay the timing or change the form of distributions. Any such amendment: 

  

	 	(a)	may not accelerate the time or schedule of any distribution, except as provided in Code Section 409A; 

 

	 	(b)	must, for benefits distributable under Section 4.2, be made at least twelve (12) months prior to the first scheduled distribution; 

 

	 	(c)	must, for benefits distributable under Sections 4.1, 4.2 and 4.3, delay the commencement of distributions for a minimum of five (5) years from the date the first
distribution was originally scheduled to be made; and 

  

	 	(d)	must take effect not less than twelve (12) months after the amendment is made. 

 

	4.7	Rabbi Trust. To the extent permitted by 409A, a rabbi trust shall be established and at all times shall be funded with assets at least equal to the
Executive’s Deferral Account balance. If the market value of the assets is less than the Executive’s Deferral Account balance at the end of any plan year, additional assets shall be added to the trust within 90 days of the Plan Year end so
that the market value off the trust assets will equal or exceed the Executive’s Deferral Account balance. 

Article 5 

Distributions at Death 
  

	5.1	Death During Active Service. If the Executive dies prior to Separation from Service, the Bank shall distribute to the Beneficiary the benefit described in this
Section 5.1. This benefit shall be distributed in lieu of the benefit under Article 4. 

  

	 	5.1.1	Amount of Benefit. The benefit under this Section 5.1 is the greater of (i) one hundred percent (100%) of the Executive’s Deferral Account
balance as of the date of the Executive’s death or (ii) the benefit set forth on Schedule A for the Plan Year ending immediately prior to death. 

  

	 	5.1.2	Distribution of Benefit. The Bank shall distribute the benefit to the Beneficiary in a lump sum payment within ninety (90) days following the
Executive’s death. The Beneficiary shall be required to provide to the Bank a copy of the Executive’s death certificate. 

  

	5.2	 Death During Distribution of a Benefit. If the Executive dies after any benefit distributions have commenced under this Agreement but before
receiving all such distributions, the Bank shall distribute to the Beneficiary the remaining benefits at the same time and in the same amounts they would have been distributed to the Executive

  

 7 

	 	 
had the Executive survived. The Beneficiary shall be required to provide to the Bank a copy of the Executive’s death certificate. 

 

	5.3	Death Before Benefit Distributions Commence. If the Executive is entitled to benefit distributions under this Agreement but dies prior to the date
that commencement of said benefit distributions are scheduled to be made under this Agreement, the Bank shall distribute to the Beneficiary the same benefits to which the Executive was entitled prior to death, except that the benefit distributions
shall be paid in the manner specified in Section 5.1.2 and shall commence on the first day of the month following the Executive’s death. The Beneficiary shall be required to provide to the Bank the Executive’s death certificate.

 Article 6 

Beneficiaries 
  

	6.1	In General. The Executive shall have the right, at any time, to designate a Beneficiary to receive any benefit distributions under this Agreement upon the death
of the Executive. The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designated under any other plan of the Bank in which the Executive participates. 

 

	6.2	Designation. The Executive shall designate a Beneficiary by completing and signing the Beneficiary Designation Form and delivering it to the Plan Administrator
or its designated agent. If the Executive names someone other than the Executive’s spouse as a Beneficiary, the Plan Administrator may, in its sole discretion, determine that spousal consent is required to be provided in a form designated by
the Plan Administrator, executed by the Executive’s spouse and returned to the Plan Administrator. The Executive’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive or if the
Executive names a spouse as Beneficiary and the marriage is subsequently dissolved. The Executive shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the
Plan Administrator’s rules and procedures. Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be cancelled. The Plan Administrator shall be entitled to rely
on the last Beneficiary Designation Form filed by the Executive and accepted by the Plan Administrator prior to the Executive’s death. 

  

	6.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Plan
Administrator or its designated agent. 

  

	6.4	No Beneficiary Designation. If the Executive dies without a valid Beneficiary designation, or if all designated Beneficiaries predecease the Executive, then the
Executive’s spouse shall be the designated Beneficiary. If the Executive has no surviving spouse, any benefit shall be paid to the personal representative of the Executive’s estate. 

 

 8 

	6.5	Facility of Distribution. If the Plan Administrator determines in its discretion that a benefit is to be distributed to a minor, to a person declared incompetent
or to a person incapable of handling the disposition of that person’s property, the Plan Administrator may direct distribution of such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent
person or incapable person. The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any distribution of a benefit shall be a distribution for the account of
the Executive and the Beneficiary, as the case may be, and shall completely discharge any liability under this Agreement for such distribution amount. 

Article 7 

General Limitations 
  

	7.1	Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Bank shall not distribute any benefit under this Agreement, in excess
of the Executive Deferrals and any interest thereon (i.e. the Executive shall forfeit all Grants and any interest thereon), if the Executive’s employment with the Bank is terminated by the Bank or an applicable regulator due to a Termination
for Cause. The Executive’s Deferrals shall be paid out subject to Section 4.2.2. 

  

	7.2	Suicide or Misstatement. No benefit, in excess of the Executive Deferrals and any interest thereon (i.e. the Executive shall forfeit all Grants and any interest
thereon), shall be distributed if the Executive commits suicide within two (2) years after the Effective Date, or if an insurance company which issued a life insurance policy covering the Executive and owned by the Bank denies coverage
(i) for material misstatements of fact made by the Executive on an application for such life insurance, or (ii) for any other reason. 

  

	7.3	Removal. Notwithstanding any provision of this Agreement to the contrary, the Bank shall not distribute any benefit, in excess of the Executive Deferrals
and any interest thereon, under this Agreement (i.e. the Executive shall forfeit all Grants and any interest thereon) if the Executive is subject to a final removal or prohibition order issued by an appropriate federal banking agency pursuant to
Section 8(e) of the Federal Deposit Insurance Act. 

  

	7.4	Forfeiture. The Executive shall forfeit any non-distributed benefits, in excess of the Executive Deferrals and any interest thereon, under this Agreement (i.e.
the Executive shall forfeit all Grants and any interest thereon) if within twelve (12) months following a Separation from Service, the Executive, directly or indirectly, either as an individual or as a proprietor, stockholder, partner, officer,
director, employee, agent, consultant or independent contractor of any individual, partnership, corporation or other entity (excluding an ownership interest of three percent (3%) or less in the stock of a publicly-traded company):

  

 9 

 (i) becomes employed by, participates in, or becomes connected in any manner with the
ownership, management, operation or control of any bank, savings and loan or other similar financial institution if the Executive’s responsibilities will include providing banking or other financial services within fifty (50) miles of the
principal executive office of the Holding Company or the Bank or the office at which the Executive spent the majority of his time as of the date of Separation from Service; 

(ii) participates in any way in hiring or otherwise engaging, or assisting any other person or entity in hiring or otherwise engaging, on
a temporary, part-time or permanent basis, any individual who was employed by the Bank as of the date of Separation from Service; 

(iii) assists, advises, or serves in any capacity, representative or otherwise, any third party in any action against the Bank or
transaction involving the Bank; 
 (iv) sells, offers to sell, provides banking or other financial services, assists any other
person in selling or providing banking or other financial services, or solicits or otherwise competes for, either directly or indirectly, any orders, contract, or accounts for services of a kind or nature like or substantially similar to the
financial services performed or financial products sold by the Bank (the preceding hereinafter referred to as “Services”), to or from any person or entity from whom the Executive or the Bank, to the knowledge of the Executive provided
banking or other financial services, sold, offered to sell or solicited orders, contracts or accounts for Services during the one (1) year period immediately prior to Separation from Service; 

(v) divulges, discloses, or communicates to others in any manner whatsoever, any confidential information of the Bank, to the knowledge of
the Executive, including, but not limited to, the names and addresses of customers or prospective customers, of the Bank, as they may have existed from time to time, of work performed or services rendered for any customer, any method and/or
procedures relating to projects or other work developed for the Bank, earnings or other information concerning the Bank. The restrictions contained in this subparagraph (v) apply to all information regarding the Bank, regardless of the source
who provided or compiled such information. Notwithstanding anything to the contrary, all information referred to herein shall not be disclosed unless and until it becomes known to the general public from sources other than the Executive. 

Article 8 

Administration of Agreement 
  

	8.1	 Plan Administrator Duties. The Plan Administrator shall administer this Agreement according to its express terms and shall also have the
discretion and authority to (i) make, amend, interpret and enforce all appropriate rules and regulations for the administration of this Agreement and (ii) decide or resolve any and all questions, including interpretations of this
Agreement, as may arise in connection with this Agreement to the 

  

 10 

	 	 
extent the exercise of such discretion and authority does not conflict with Code Section 409A. 

 

	8.2	Agents. In the administration of this Agreement, the Plan Administrator may employ agents and delegate to them such administrative duties as the Plan
Administrator sees fit, including acting through a duly appointed representative, and may from time to time consult with counsel who may be counsel to the Bank. 

 

	8.3	Binding Effect of Decisions. Any decision or action of the Plan Administrator with respect to any question arising out of or in connection with the
administration, interpretation or application of this Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this Agreement. 

 

	8.4	Indemnity of Plan Administrator. The Bank shall indemnify and hold harmless the Plan Administrator against any and all claims, losses, damages, expenses or
liabilities arising from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Plan Administrator. 

  

	8.5	Bank Information. To enable the Plan Administrator to perform its functions, the Bank shall supply full and timely information to the Plan Administrator on all
matters relating to the date and circumstances of the Executive’s death, Disability or Separation from Service, and such other pertinent information as the Plan Administrator may reasonably require. 

 

	8.6	Statement of Accounts. The Plan Administrator shall provide to the Executive, within one hundred twenty (120) days after the end of each Plan Year, a
statement setting forth the benefits to be distributed under this Agreement. 

 Article 9 

Claims and Review Procedures 
  

	9.1	Claims Procedure. An Executive or Beneficiary (“claimant”) who has not received benefits under this Agreement that he or she believes should be
distributed shall make a claim for such benefits as follows: 

  

	 	9.1.1	Initiation – Written Claim. The claimant initiates a claim by submitting to the Plan Administrator a written claim for the benefits. If such a claim relates
to the contents of a notice received by the claimant, the claim must be made within sixty (60) days after such notice was received by the claimant. All other claims must be made within one hundred eighty (180) days of the date on which the
event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the claimant. 

  

	 	9.1.2	 Timing of Plan Administrator Response. The Plan Administrator shall respond to such claimant within ninety (90) days after receiving
the claim. If the Plan 

  

 11 

	 	 
Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional ninety (90) days
by notifying the claimant in writing, prior to the end of the initial ninety (90) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator
expects to render its decision. 

  

	 	9.1.3	Notice of Decision. If the Plan Administrator denies part or all of the claim, the Plan Administrator shall notify the claimant in writing of such denial. The
Plan Administrator shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth: 

  

	 	(a)	The specific reasons for the denial; 

  

	 	(b)	A reference to the specific provisions of this Agreement on which the denial is based; 

 

	 	(c)	A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed;

  

	 	(d)	An explanation of this Agreement’s review procedures and the time limits applicable to such procedures; and 

 

	 	(e)	A statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.

  

	9.2	Review Procedure. If the Plan Administrator denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Plan
Administrator of the denial as follows: 

  

	 	9.2.1	Initiation – Written Request. To initiate the review, the claimant, within sixty (60) days after receiving the Plan Administrator’s notice of
denial, must file with the Plan Administrator a written request for review. 

  

	 	9.2.2	Additional Submissions – Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other
information relating to the claim. The Plan Administrator shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA
regulations) to the claimant’s claim for benefits. 

  

	 	9.2.3	Considerations on Review. In considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating
to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. 

  

	 	9.2.4	 Timing of Plan Administrator Response. The Plan Administrator shall respond in writing to such claimant within sixty (60) days after
receiving the request for review. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the

  

 12 

	 	 
response period by an additional sixty (60) days by notifying the claimant in writing, prior to the end of the initial sixty (60) day period, that an additional period is required. The
notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision. 

  

	 	9.2.5	Notice of Decision. The Plan Administrator shall notify the claimant in writing of its decision on review. The Plan Administrator shall write the notification in
a manner calculated to be understood by the claimant. A notification of denial shall set forth: 

  

	 	(a)	The specific reasons for the denial; 

  

	 	(b)	A reference to the specific provisions of this Agreement on which the denial is based; 

 

	 	(c)	A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information
relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits; and 

  

	 	(d)	A statement of the claimant’s right to bring a civil action under ERISA Section 502(a). 

Article 10 

Amendments and Termination 
  

	10.1	Amendments. This Agreement may be amended only by a written agreement signed by the Bank and the Executive. However, the Bank may unilaterally amend this
Agreement to conform with written directives to the Bank from its auditors or banking regulators or to comply with legislative changes or tax law, including without limitation Code Section 409A. 

 

	10.2	Plan Termination Generally. This Agreement may be terminated only by a written agreement signed by the Bank and the Executive. Except as provided in
Section 10.3, the termination of this Agreement shall not cause a distribution of benefits under this Agreement. Rather, upon such termination benefit distributions will be made at the earliest distribution event permitted under Article 4 or
Article 5. 

  

	10.3	Plan Terminations Under Section 409A. Notwithstanding anything to the contrary in Section 10.2, if the Bank terminates this Agreement in the following
circumstances: 

  

	 	(a)	 Within thirty (30) days before or twelve (12) months after a change in the ownership or effective control of the Bank, or in the ownership of
a substantial portion of the assets of the Bank as described in Code Section 409A(a)(2)(A)(v) provided that all distributions are made no later than twelve (12) months following such termination of this Agreement and further provided that
all the Bank’s arrangements which are substantially similar to this Agreement are terminated so the Executive and all participants in the similar arrangements are

  

 13 

	 	 
required to receive all amounts of compensation deferred under the terminated arrangements within twelve (12) months of such termination; 

 

	 	(b)	Upon the Bank’s dissolution or with the approval of a bankruptcy court provided that the amounts deferred under this Agreement are included in the Executive’s
gross income in the latest of (i) the calendar year in which this Agreement terminates; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the
distribution is administratively practical; or 

  

	 	(c)	Upon the Bank’s termination of this and all other arrangements that would be aggregated with this Agreement pursuant to Treasury Regulations
Section 1.409A-1(c) if the Executive participated in such arrangements (“Similar Arrangements”), provided that (i) the termination and liquidation does not occur proximate to a downturn in the financial health of the Bank,
(ii) all termination distributions are made no earlier than twelve (12) months and no later than twenty-four (24) months following such termination, and (iii) the Bank does not adopt any new arrangement that would be a Similar
Arrangement for a minimum of three (3) years following the date the Bank takes all necessary action to irrevocably terminate and liquidate the Agreement; 

the Bank may distribute the Deferral Account balance, determined as of the date of the termination of this Agreement, to the Executive in
a lump sum subject to the above terms. 
 Article 11 

Miscellaneous 
  

	11.1	Binding Effect. This Agreement shall bind the Executive and the Bank and their beneficiaries, survivors, executors, administrators and transferees.

  

	11.2	No Guarantee of Employment. This Agreement is not a contract for employment. It does not give the Executive the right to remain as an employee of the Bank nor
interfere with the Bank’s right to discharge the Executive. It does not require the Executive to remain an employee nor interfere with the Executive’s right to terminate employment at any time. 

 

	11.3	Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.

  

	11.4	Tax Withholding and Reporting. The Bank shall withhold any taxes that are required to be withheld, including but not limited to taxes owed under Code
Section 409A from the benefits provided under this Agreement. The Executive acknowledges that the Bank’s sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authorities. The Bank shall satisfy all
applicable reporting requirements, including those under Code Section 409A. 

  

	11.5	Applicable Law. This Agreement and all rights hereunder shall be governed by the laws of the Commonwealth of Pennsylvania, except to the extent preempted by the
laws of the United States of America. 

  

 14 

	11.6	Unfunded Arrangement. The Executive and the Beneficiary are general unsecured creditors of the Bank for the distribution of benefits under this Agreement. The
benefits represent the mere promise by the Bank to distribute such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment by creditors.
Any insurance on the Executive’s life or other informal funding asset is a general asset of the Bank to which the Executive and Beneficiary have no preferred or secured claim. 

 

	11.7	Reorganization. The Bank shall not merge or consolidate into or with another bank, or reorganize, or sell substantially all of its assets to another bank, firm
or person unless such succeeding or continuing bank, firm or person agrees to assume and discharge the obligations of the Bank under this Agreement. Upon the occurrence of such an event, the term “Bank” as used in this Agreement shall be
deemed to refer to the successor or survivor entity. 

  

	11.8	Entire Agreement. This Agreement constitutes the entire agreement between the Bank and the Executive as to the subject matter hereof. No rights are
granted to the Executive by virtue of this Agreement other than those specifically set forth herein. 

  

	11.9	Interpretation. Wherever the fulfillment of the intent and purpose of this Agreement requires and the context will permit, the use of the masculine gender
includes the feminine and use of the singular includes the plural 

  

	11.10	Alternative Action. In the event it shall become impossible for the Bank or the Plan Administrator to perform any act required by this Agreement due to
regulatory or other constraints, the Bank or Plan Administrator may perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Bank, provided that such alternative act does
not violate Code Section 409A. 

  

	11.11	Headings. Article and section headings are for convenient reference only and shall not control or affect the meaning or construction of any provision herein.

  

	11.12	Validity. If any provision of this Agreement shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts
hereof, but this Agreement shall be construed and enforced as if such illegal or invalid provision had never been included herein. 

  

	11.13	Notice. Any notice or filing required or permitted to be given to the Bank or Plan Administrator under this Agreement shall be sufficient if in writing and
hand-delivered or sent by registered or certified mail to the address below: 

  

					
		  	 Graystone Tower Bank
	  	
		  	 100 Granite Run Drive
	  	
		  	 Lancaster, PA 17601
	  	

  

 15 

 Such notice shall be deemed given as of the date of delivery or, if delivery is made by
mail, as of the date shown on the postmark on the receipt for registration or certification. 
 Any notice or filing required or
permitted to be given to the Executive under this Agreement shall be sufficient if in writing and hand-delivered or sent by mail to the last known address of the Executive. 

 

	11.14	Deduction Limitation on Benefit Payments. If the Bank reasonably anticipates that the Bank’s deduction with respect to any distribution under this Agreement
would be limited or eliminated by application of Code Section 162(m), then to the extent deemed necessary by the Bank to ensure that the entire amount of any distribution from this Agreement is deductible, the Bank may delay payment of any
amount that would otherwise be distributed under this Agreement. The delayed amounts shall be distributed to the Executive (or the Beneficiary in the event of the Executive’s death) at the earliest date the Bank reasonably anticipates that the
deduction of the payment of the amount will not be limited or eliminated by application of Code Section 162(m). 

  

	11.15	Compliance with Section 409A. This Agreement shall be interpreted and administered consistent with Code Section 409A. 

IN WITNESS WHEREOF, the Executive and a duly authorized representative of the Bank have signed this Agreement. 

 

							
	EXECUTIVE:	 		 	BANK:
			
		 		 	Graystone Tower Bank
				
	 /S/ Andrew Samuel
	 		 	By:	 	 /S/ Paul R. Barber

	Andrew Samuel	 		 	Title:	 	Human Resources Manager, SVP

  

 16 

 Graystone Tower Bank 

Deferred Compensation Agreement 
 Addendum A
– Performance Targets Percentage 
  
  

Addendum A 

Performance Targets Percentage - CEO 

Executive’s name: Andrew Samuel 

A guaranteed grant of 3% of Base Salary will be awarded to each executive for each Plan Year. For performance at the
60th percentile or higher, as compared to an industry
index selected by the Employee Development Committee of the Holding Company’s Board of Directors, annually, at the beginning of each plan year, an additional Grant for each Plan Year shall be determined based upon the applicable pro rata
portion of the Holding Company’s Operating Return on Assets and Operating Return on Tangible Equity as follows: 
  

			
	 Average Operating Return on Assets

– Percentile Verses Industry Index
	  	 Amount of Grant

CEO

	 Top
60th thru Top
51st Percentile
	  	2.0% of Base Salary
	 Top
50th thru Top
41st Percentile
	  	4.0% of Base Salary
	 Top
40th thru Top
31st Percentile
	  	6.0% of Base Salary
	 Top
30th Percentile
	  	8.5% of Base Salary

  

			
	 Average Operating Return on Tangible Equity

– Percentile Verses Industry Index
	  	 Amount of Grant

CEO

	 Top
60th thru Top
51st Percentile
	  	2.0% of Base Salary
	 Top
50th thru Top
41st Percentile
	  	4.0% of Base Salary
	 Top
40th thru Top
31st Percentile
	  	6.0% of Base Salary
	 Top
30th Percentile
	  	8.5% of Base Salary

  

			
	BANK:
	
	GRAYSTONE TOWER BANK
		
	By:	 	 /S/ Paul R. Barber

	Title:	 	Human Resources Manager, SVP

  

	
	Acknowledged:
	
	EXECUTIVE:
	
	 /S/ Andrew Samuel

	Andrew Samuel

 Deferred Compensation Agreement 

Schedule A 
 Death Benefit Summary 

  

						
	 Period Preretirement
	  	Ending Age	  	Annual Death Benefit
	 5/1/2010
	  	48	  	$	1,703,077
	 12/31/2010
	  	48	  	$	1,743,215
	 12/31/2011
	  	49	  	$	1,814,236
	 12/31/2012
	  	50	  	$	1,888,151
	 12/31/2013
	  	51	  	$	1,965,077
	 12/31/2014
	  	52	  	$	2,045,138
	 12/31/2015
	  	53	  	$	2,128,460
	 12/31/2016
	  	54	  	$	2,215,176
	 12/31/2017
	  	55	  	$	2,305,426
	 12/31/2018
	  	56	  	$	2,399,353
	 12/31/2019
	  	57	  	$	2,497,106
	 12/31/2020
	  	58	  	$	2,598,842
	 12/31/2021
	  	59	  	$	2,704,723
	 12/31/2022
	  	60	  	$	2,814,917
	 12/31/2023
	  	61	  	$	2,929,601
	 12/31/2024
	  	62	  	$	3,048,958
	 12/31/2025
	  	63	  	$	3,173,177
	 12/31/2026
	  	64	  	$	3,302,457
	 3/4/2027
	  	65	  	$	3,324,510

  

 2

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