Document:

Employment Agreement

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  
 AGREEMENT made this 26th day of August, 2004, by and between SUSQUEHANNA BANCSHARES, INC., a Pennsylvania corporation (the “Company”), on
the one side, and MICHAEL M. QUICK, an adult individual whose principal residence is at 323 Hawthorne Avenue, Haddonfield, NJ 08033 (the “Employee”), on the other side. 
  
 Background 
  
 The Company desires to induce the Employee to remain in its employment, and the Employee hereby agrees to accept continuation of employment with the
Company on the terms and subject to the conditions hereinafter set forth. 
  
 1. Position. The Company hereby agrees to continue the Employee’s employment, and the Employee hereby agrees to continue employment, as Senior Vice President and Group Executive of the Company with
supervisory responsibility for the Company’s banking affiliates, and Chairman of Susquehanna Patriot Bank (the “Bank”). 
  
 2. Duties. 
  
 2.1. The Employee agrees to assume such duties and responsibilities as may be consistent with the position of Senior Vice President and Group Executive of
the Company, and Chairman of Equity Bank, and as may be assigned to the Employee by the Board of Directors, the President or the Chief Executive Officer of the Company or by the by-laws of the Company, from time to time. No change in the duties of
the Employee shall in any way diminish the compensation payable to him or her pursuant to the provisions of paragraph 4 hereof. 
  
 2.2. The Employee agrees to devote his or her full time, skill, attention and energies, and his or her best efforts to the performance of his or her
duties under this Agreement 

 consistent with practices and policies established from time to time by the Company. The Employee agrees, in addition to
the covenants concerning Non-Competition contained in Paragraph 14, that he or she will not engage in any other business activity (including, without limitation, participation by the Employee on any unaffiliated profit or non-profit board of
directors) except: (i) upon the prior written notice to and consent of the Company’s Board of Directors, or (ii) solely as an investor in real or personal property, the management of which shall not detract from the performance of his or her
duties hereunder; provided, however, that the engagement by the Employee in any such business activity shall at all times be in conformity with the Company’s Code of Conduct, as the same may be amended or supplemented from time to time.
Notwithstanding anything herein to the contrary, the Employee shall terminate any such activity upon reasonable request by the Company. 
  
 3. Period of Employment. Unless terminated earlier pursuant to subparagraph 7.3, 10.1, 10.2, 10.3 , 10.5 or 10.7 hereof, the period of employment
(the “Period of Employment”) shall commence on the date of this Agreement and end on the second December 31 next following the date of this Agreement (the “Termination Date”). If written election not to renew by either party is
not received by the other party by (a) November 1 of the year of the effective date of this Agreement, or (b) November 1 any subsequent year, if this Agreement has previously been extended pursuant to this paragraph 3, then the Period of Employment
will be automatically extended to the next anniversary of the Termination Date. 
  

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 4. Compensation. For all services rendered by the Employee under this Agreement, the Company shall
pay, or shall cause the Bank to pay, to the Employee compensation as provided below: 
  
 4.1. Base Salary. Commencing on the date hereof and continuing for the next twelve (12) months of employment hereunder, the Company shall pay, or shall cause the Bank to pay, the Employee, in equal monthly
installments, a minimum base salary at the rate of $270,000 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 or the Bank 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 or the Bank hereunder shall be made by the Compensation Committee of the Company, or its nominee, which shall perform an annual review of this Agreement, the Employee’s performance with the Company, and compensation payable hereunder.
In such annual review, the Compensation Committee shall consider the recommendations of the Bank’s Board of Directors. 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 Bank’s or the Company’ s Human Resources Department. 
  
 4.4. Key Executive Incentive Plan. Employee shall be eligible to
participate in the Company’s Key Executive Incentive Plan (which contains a cash incentive and a stock incentive component), as amended and revised by the Company from time to time. Any such cash incentive shall not exceed the amount of the
Employee’s base compensation. 
  

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 5. Employee Expenses. Subject to such general employee expense account policies as the Company and
the Bank may from time to time adopt, the Company, or the Bank, as the case may be, 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. The Bank shall also either pay directly or reimburse Employee during the
term of this Agreement for membership fees and regular dues owed by Employee relating to his membership in the Ballamor Country Club, or, at the Employee’s option, another country club within the Company’s market area with a substantially
similar level of fees and dues. In the event that any reimbursed expenses are disallowed by the Internal Revenue Service as deductions to the Company or the Bank, 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 or the Bank, as the case may be, 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. 
  

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

  
 7.2. The Employee shall be entitled to major medical and
health insurance coverage for the Employee and his or her immediate family on such terms, in such amounts and in such coverage as shall be consistent with the insurance coverage programs available to other salaried employees of the Company
generally, as the same may change from time to time. 
  
 7.3. If
the Employee becomes and continues to be permanently disabled, such disability to be defined as the Employee’s inability, as a result of illness, incapacity, disease or calamity to perform a substantial part of his or her reasonable duties as
set forth herein, with no reasonable expectation that the Employee will be able to resume the performance of his or her reasonable duties, the Company shall continue to pay, or shall cause the Bank to pay, to the Employee the base salary set forth
in paragraph 4, above, and, except as provided in the next sentence of this paragraph, all other benefits as set forth in this Agreement for a period of no less than six (6) months following the commencement of such permanent disability. Any
provision of this Agreement notwithstanding, the Employee shall be conclusively deemed to be 
  

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 permanently disabled if he or she is physically or mentally unable to perform his or her duties or a substantial part
thereof for a period of six consecutive months. The Employee shall have no right to earn any bonus compensation during such period of time. Thereafter, if such permanent disability continues, this Agreement shall terminate and the Company and the
Bank (i) shall have no further obligation to the Employee under this Agreement other than in connection with such benefits as may be available under such disability insurance programs, and (ii) shall not be obligated to provide or pay for any
benefits under the programs or policies listed in subparagraphs 7.1 and 7.2 above, except as provided in subparagraph 10.11. 
  
 7.4. To the extent such benefits are not specifically described or duplicated hereinabove in this paragraph 7, the Employee shall also be entitled to
participate in any and all thrift, profit sharing, benefit and pension and similar plans, now or hereafter maintained by the Company or the Bank and offered by the Company or the Bank to its salaried, non-union employees generally; provided,
however, that if such participation in any such plan is terminated by the Bank’s or the Company’s Board of Directors, or any committee thereof, then the Employee shall have no automatic entitlement to participate in the same. 

 
 8. Confidential Information. During the term of employment, and at
any time thereafter, the Employee shall not, without the consent of a senior officer of the Company, disclose to any person, firm or corporation (except, during the term of his or her employment, to the extent necessary to perform his or her duties
hereunder) any customer lists, trade secrets, reports, correspondence, mailing lists, manuals, price lists, employee lists, prospective employee lists, letters, records or any other confidential information relating to the business of the Company or
the Bank 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 the Bank or any Affiliate of the Company. 
  

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 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 or the Bank shall inure to and be the property of the
Company or the Bank and must be promptly disclosed to the Company or the Bank, as the case may be. Both during employment by the Company and the Bank, and thereafter, the Employee shall, at the expense of the Company or the Bank, as the case may be,
execute such documents and do such things as the Company or the Bank reasonably may request to enable the Company or the Bank or their nominee (i) to apply for copyright or equivalent protection in the United States, Canada and elsewhere for any
literary work hereinabove referred in this paragraph, or (ii) to be vested with any such copyright protection in the United States, Canada and elsewhere. 
  
 10. Termination. 
  
 10.1. Effect of Non-Renewal. If the Employee receives written election not to renew from the Company in accordance with paragraph 3 at least sixty
(60) days prior to the beginning of the calendar year containing the Termination Date (or, if applicable, any subsequent anniversary of the Termination Date), then the Agreement shall expire upon the Termination Date or such other date as the
parties may agree to in writing. After receipt of written election not to renew from the Company, the Employee may elect to treat such failure to renew as Notice of Termination by delivering written notice to the Company within thirty (30) calendar
days thereafter. Unless the parties agree otherwise in writing, the effective date of the Notice of Termination shall be the date of delivery of such election to the Company. Upon the effective 
  

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 date of a Notice of Termination under this subparagraph 10.1, the Company may request the Employee to, and if requested,
the Employee shall continue to perform his or her duties as set forth in this Agreement for a period not to exceed three (3) months from the effective date of Notice of Termination. In addition to such period, the Employee shall be reasonably
available for a period of nine (9) additional months for advice and consultation as requested by the Company or the Bank. The Employee shall be entitled to receive all salary and benefits to which the Employee is entitled under this Agreement until
the applicable Termination Date; provided, however, that in the event the Employee obtains other employment during the period prior to the Termination Date, then the amount of base salary due hereunder shall be decreased by the salary and benefits
received by the Employee attributable to other employment during such period. However, if the Company gives the Employee a written election not to renew and simultaneously or subsequently terminates the Employee for Cause in accordance with
subparagraph 10.3, the Employee’s termination shall be governed by subparagraphs 10.3 and 10.4, and not by this subparagraph. 
  
 10.2. Termination by the Employee. This Agreement may be terminated upon action of the Employee by not less than two (2) months notice to the
Company. The Employee agrees in the event of termination under this subparagraph to cooperate, advise and consult the Company as needed to assist in the transition of the Employee’s replacement during such two (2) month period and thereafter
for a period of four (4) months during reasonable times and under reasonable circumstances. 
  
 10.3. Termination by the Company for Cause. Nothing in this Agreement shall be construed to prevent immediate termination by the Company of the Employee’s employment under this Agreement for Cause, as
defined in this Agreement. 
  

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 10.4. Effect of Termination by Employee or Termination by the Company for Cause. If this Agreement
is terminated under subparagraphs 10.2 or 10.3 hereof, the Company shall be obligated to pay the Employee his or her base salary to the date of such termination, plus any accrued bonus. The Bank or the Company shall not be obligated to provide or
pay for any further benefits under the programs or policies listed in paragraph 7 above except to the extent that any of the benefits available under such programs or policies survive termination of the Employee’s employment by their express
terms, or as required by law (e.g., COBRA Benefits), in which event they shall continue only as required by their express terms or as required by law, whichever is applicable. The qualifying event for determining COBRA Benefits shall be the date on
which the Employee terminates employment or suffers a reduction of hours that would otherwise cause him to lose coverage under the applicable group health plan but for the extension of benefits hereunder. 
  
 10.5. Termination by the Company Without Cause or by the Employee Due to
Adverse Change. In addition to termination under subparagraphs 10.1, 10.2 and 10.3 above, the Employee’s employment by the Company under this Agreement may be terminated by the Company at any time without cause during the term provided in
this Employment Agreement or by the Employee as follows: (i) within twelve (12) months following the effective date of this Agreement if there occurs an Adverse Change in the Employee’s Circumstances within such twelve month period; or (ii)
within twelve (12) months following a Change in Control if there occurs an Adverse Change in the Employee’s Circumstances within such twelve (12) month period. In the event of and in consideration for all amounts and benefits payable hereunder
by reason of a Change in Control, the Employee acknowledges that the provisions of paragraph 14 hereof shall extend to any offices or facilities of any business that becomes an affiliate of or successor to the Company on account of such Change in
Control. 
  

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 In any such event of termination under this subparagraph 10.5, the Company shall pay to the Employee in a
lump sum an amount equal to the greater of the Employee’s then current monthly salary rate or the rate in effect prior to any reduction which led to the termination times the greater of (A) the number of months otherwise remaining in the Period
of Employment set forth in paragraph 3, or (B) 12 months. The Company shall also provide the Employee with benefits in accordance with subparagraph 10.11 hereof. 
  
 10.6. (a) Anything in this Agreement to the contrary notwithstanding, in the event that it shall be determined that any
payment or distribution by the Company to or for the benefit of the Employee, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, would constitute an “excess parachute payment”
within the meaning of §280G of the Internal Revenue Code of 1986, as amended (the “Code”) (each such payment, a “Parachute Payment”) and would result in the imposition on the Employee of an excise tax under Code §4999,
then, in addition to any other benefits to which the Employee is entitled under this Agreement or otherwise, the Employee shall be paid an amount in cash equal to the sum of the excise taxes payable by the Employee by reason of receiving Parachute
Payments plus the amount necessary to place the Employee in the same after-tax position (taking into account any and all applicable federal, state and local excise, income or other taxes at the highest possible applicable rates on such Parachute
Payments (including, without limitation, any payments under this subparagraph 10.6(a)) as if no excise taxes had been imposed with respect to Parachute Payments (the “Parachute Gross-up”). Any Parachute Gross-up otherwise required by this
subparagraph 10.6(a) shall not be made later than the time of the corresponding payment or 
  

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 benefit hereunder giving rise to the underlying Code §4999 excise tax (to the extent such determination has been
made prior to such time), even if the payment of the excise tax is not required under the Code until a later time. Any Parachute Gross-up otherwise required under this subparagraph 10.6(a) shall be made whether or not there is a Change in Control,
whether or not payments or benefits are payable under this Agreement, whether or not the payments or benefits giving rise to the Parachute Gross-up are made in respect of a Change in Control and whether or not the Employee’s employment with the
Employer shall have been terminated. 
  
 (b) All determinations to
be made under this subparagraph 10.6 shall be made by the Company’s independent public accountant (the “Accounting Firm”). 
  
 (c) In the event the Internal Revenue Service notifies the Employee of an inquiry with respect to the applicability of Code §280G or Code §4999
to any payment by the Company, or assessment of tax under Code §4999 with respect to any payment by the Company, the Employee shall provide notice to the Company of such inquiry or assessment within 10 days, and shall take no action with
respect to such inquiry or assessment until the Company has responded thereto (provided such response is timely with respect to the inquiry or assessment). The Company shall have the right to appoint an attorney or accountant to represent the
Employee with respect to such inquiry or assessment, and the Employee shall fully cooperate with such representative as a condition of receiving a Parachute Gross-up with respect to such inquiry or assessment. 
  
 (d) All of the fees and expenses of the Accounting Firm in performing the
determinations referred to in subparagraphs (a) and (b) above, or of the representative appointed pursuant to subparagraph (c) above, shall be borne solely by the Company. 
  

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 (e) Notwithstanding the foregoing in this subparagraph 10.6, if the imposition of a Code §4999
excise tax could be avoided by a reduction of the payments due to the Employee under this paragraph 10 (determined before application of subparagraph 10.6(a)) by an amount of 10% or less, then the total of all such payments will be reduced to an
amount one dollar ($1.00) below the amount that would cause a Code §4999 excise tax to be imposed, and subparagraph 10.6(a) will not apply. 
  
 10.7. Notwithstanding anything to the contrary set forth above, this Agreement shall terminate immediately upon the close of business on the last business
day in the calendar year in which the Employee attains the age of 65. Upon such termination, the Employee shall be entitled, to the extent he or she is covered by such at the time, to all retirement, pension, insurance and other benefits available
to the Company’s employees. 
  
 10.8. Upon termination of
employment hereunder, the Employee shall not malign, criticize or otherwise disparage the Company, the Bank or their respective officers, directors or Affiliates. 
  
 10.9. Any claims for benefits under paragraph 10 of the Agreement shall be governed by the claims procedures in the
Susquehanna Bancshares, Inc. Key Employee Severance Pay Plan, as amended from time to time. However, the severance benefit provisions of this Agreement shall govern in lieu of the severance provisions of such Plan. Except as specifically provided in
this Agreement, the benefits provided under this Agreement in the case of a termination shall be in lieu of those provided by the Company and its Affiliates under any other severance plans. 
  

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 10.10. Prior to receiving any lump sum payments to which the Employee is entitled under this Agreement,
the Employee agrees to sign an acknowledgment of receipt and release of claims in a form acceptable to the Company. 
  
 10.11. If the Employee ceases to be an active employee of the Company or any Affiliate, but the Employee is still entitled to receive salary and benefits
under one or more provisions of this Agreement other than this subparagraph, the Employee will receive the following benefits, but only to the extent the Employee is entitled under such other provisions of this Agreement: applicable salary, COBRA
Benefits, life insurance, and any payments due under any non-qualified pension or savings plans under which the Employee already participates. 
  
 11. Records. Upon the termination of employment hereunder, the Employee shall deliver to the Company and the Bank, as applicable, 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 or the Bank, and the Employee shall not remove any of such records either during the course of employment or upon the termination thereof. 
  
 The Employee understands that in the event of a violation of the provisions
of this paragraph 11, the Company or the Bank, as the case may be, shall have the right to seek injunctive relief, in addition to any other existing rights provided herein or by operation of law, without the requirement of posting bond. The remedies
provided in this paragraph 11 shall be in addition to any legal or equitable remedies existing between the Employee, the Bank and the Company, and shall not be construed as a limitation upon, or as alternative or in lieu of, such remedies.

  

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 12. Prohibited Assignment. The Employee shall have no right to exchange, convert, encumber or
dispose of the rights to receive the benefits or payments under this Agreement, which payments, benefits and rights thereto are expressly declared to be non-assignable and non-transferable. 
  
 13. Indemnification. To the extent permitted by law, the Company and
the Bank 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 or the Bank 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 or the Bank had knowledge of the facts or circumstances pursuant to which such act was taken or such omission occurred and
(ii) no written objection to such act or omission was duly made by the Board. 
  
 Actions taken by the Employee which are covered by this Agreement specifically include (by way of illustration), but are not limited to, (a) the payment of any salary, bonus or other compensation to any officer,
director, or employee, (b) the reimbursement or payment of any expenses incurred by any such officer, director or employee, (c) the making or retention of any investments (including, without limitation, loans) by the Company or the Bank, or (d)
injury claims against the Company, the Bank or the Employee based on negligence or other alleged tortious actions and which arise in connection with the conduct of the Company’s or the Bank’s business. 
  

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 The Employee shall indemnify the Company and the Bank and hold each 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 or the Bank and which represent the Employee’s deliberate malfeasance or gross negligence. 
  
 14. Non-Competition. During the Period of Employment hereunder, and in the event the Employee’s employment is terminated pursuant to
subparagraphs 10.2 or 10.3 hereof, then for the later of (a) one year thereafter or (b) the period during which compensation or benefits are being provided pursuant to this Agreement after its termination, the Employee will not directly for himself
or herself or any third party, become engaged in any business or activity which is directly in competition with any services or financial products sold by, or any business or activity engaged in by, the Company or the Bank, 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, the Bank or any of their Affiliates. This provision shall not restrict the Employee from owning or investing in publicly traded securities of financial institutions, so long as his or her aggregate
holdings in any financial institution do not exceed ten percent (10%) of the outstanding capital stock of such institution. 
  

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 During the Period of Employment hereunder, and for a period of two years thereafter no matter the reason
of termination, the Employee will not solicit any person who was a customer of the Company or the Bank 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 the Bank, or otherwise divert or attempt to divert any existing business of the Company or the Bank within any area of 100 miles of any office or facility of the Company, the Bank or any of their
Affiliates. 
  
 The Employee will not, either during the Period of
Employment hereunder or for a period of two years thereafter directly for himself or any third party, solicit, induce, recruit or cause another person in the employment of the Bank, the Company or any of their Affiliates to terminate his or her
employment for the purposes of joining, associating, or becoming employed with any business or activity which is in competition with any services or financial products sold, or any business or activity engaged in, by Company or the Bank. 

 
 The Employee understands that in the event of a violation of any provision
of this Agreement, the Company or the Bank shall have the right to seek injunctive relief, in addition to any other existing rights provided in this Agreement or by operation of law, without the requirement of posting bond. The remedies provided in
this paragraph shall be in addition to any legal or equitable remedies existing at law or provided for in any other agreement between the Employee, the Bank or the Company, and shall not be construed as a limitation upon, or as an alternative or in
lieu of, any such remedies. If any provisions of this paragraph shall be determined by a court of competent jurisdiction to be unenforceable in part by reason of it being too great a period of time or covering too great a geographical area, it shall
be in full force and effect as to that period of time or geographical area determined to be reasonable by the court. 
  

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 15. Survival. Notwithstanding anything to the contrary in this Agreement, the parties agree that
the Employee’s obligations under paragraphs 8 and 9 of this Agreement will continue despite the expiration of the term of this Agreement or its termination. 
  
 16. Preemptive Considerations. Notwithstanding anything to the contrary set forth herein: 
  
 16.1. If the Employee is suspended and/or temporarily prohibited from
participating in the conduct of the Bank’s or 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 and the Bank’s obligations under this Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Company may in its discretion (i) pay the
Employee all or part of the compensation withheld while this Agreement’s obligations were suspended, and (ii) reinstate (in whole or in part) any of its obligations which were suspended. 
  
 16.2. If the Employee is removed and/or permanently prohibited from
participating in the conduct of the Bank’s or the Company’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, all
obligations of the Bank and the Company under the contract shall terminate as of the effective date of the order, but vested rights of the parties shall not be affected. 
  

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 16.3. If the Bank or the Company is in default (as defined in Section 3(x)(1) of the Federal Deposit
Insurance Act), all obligations under this Agreement shall terminate as of the date of default, but this subparagraph 16.3 shall not affect any vested rights of the parties. 
  
 17. Definitions. For purposes of this Agreement: 
  
 The term “Adverse Change in the Employee’s Circumstances” shall include and be limited to (A) a significant
change in the nature or scope of the Employee’s duties as set forth in the first sentence of paragraph 2 hereof such that the Employee has been reduced to a position of materially lesser authority, status or responsibility (provided, however,
for purposes of this subparagraph, in circumstances not involving a Change in Control, so long as the Employee remains a senior officer (which shall mean and include any officer position with the Company or the Bank above the position of vice
president), an Adverse Change in the Employee’s Circumstances shall not be deemed to have occurred), or the time required to be spent by the Employee 60 miles or more beyond the Company’s geographic market area shall be increased without
the Employee’s consent by more than twenty percent (20%), as compared to the average of the two (2) preceding years, or (B) a reduction in the Employee’s base compensation or (C) any other material and willful breach by the Company or the
Bank of any other provision of this Agreement. 
  
 The term
“Affiliate” shall mean with respect to the Bank and the Company, persons or entities controlling, controlled by or under common control with the Bank or the Company. 
  
 The term “Bank” shall mean the Bank as hereinbefore defined or any entity succeeding to substantially all of the
assets and business of the Bank. 
  
 The term “Board”
shall mean the board of directors of the Company. 
  

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 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 the Bank or
any entity which controls the Company or the Bank to the extent such cease-and-desist order requires the termination of the Employee; or (h) a material breach by the Employee of any provision of this Agreement. 
  
 The term “Change in Control” shall mean the first to occur, after
the date hereof, of any of the following: 
  
 (a)
if any Person is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any
securities acquired directly from the Company or its subsidiaries) representing 25% or more of either the then outstanding shares of stock of the Company or the combined voting power of the Company’s then outstanding securities; 
  
 (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 
  

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 by, or on the recommendation of or with the approval of, at least two-thirds of the directors who then
qualified as Incumbent Directors either actually (because they were directors at the beginning of such 24-month period) or by prior operation of this clause (b); 
  
 (c) the consummation of a merger or consolidation of the Company with any other corporation other than (A) a
merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of
the surviving entity or any parent thereof) at least 60% of the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (B) a merger
or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the beneficial owner, as defined in clause (a), directly or indirectly, of securities of the Company (not including in
the securities beneficially owned by such Person any securities acquired directly from the Company or its subsidiaries) representing 40% or more of either the then outstanding shares of stock of the Company or the combined voting power of the
Company’s then outstanding securities; or 
  
 (d) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company, or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s
assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 60% of the combined voting power of the voting securities of which are owned by Persons in substantially the same
proportion as their ownership of the Company immediately prior to such sale. 
  

 -20- 

 Upon the occurrence of a Change in Control, no subsequent event or condition shall
constitute a Change in Control for purposes of this Agreement, with the result that there can be no more than one Change in Control hereunder. 
  
 The term “Company” shall mean the Company as hereinbefore defined or any entity succeeding to substantially all of the assets and business of
the Company. 
  
 The term “COBRA Benefit” shall refer to
the right to continue group health insurance benefits under sections 601-607 of the federal Employee Retirement Income Security Act, as amended, (29 U.S.C. part 6) Act and regulations promulgated thereunder. 
  
 The term “Period of Employment” shall have the meaning described in
paragraph 3. 
  
 The term “Person” shall have the
meaning ascribed thereto by Section 3(a)(9) of the Securities Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof (except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, (iv) a corporation owned, directly or indirectly,
by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company, or (v)such Employee or any “group” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act) which
includes the Employee). 
  
 The term “Termination Date”
shall have the meaning described in paragraph 3. 
  

 -21- 

 18. Miscellaneous. 
  
 18.1. Assignment. This Agreement (including, without limitation, paragraph 14 hereof relating to non-competition)
shall be binding upon the parties hereto, the heirs and legal representatives of the Employee and the successors and assigns of the Bank and the Company. 
  
 18.2. Notices. Any notice required, permitted or intended to be given under this Agreement shall be in writing and shall be deemed to have been
given only if delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid to the appropriate address shown below, or such revised address as is delivered to the other party by the same means; except as
provided in subparagraph 10.3 hereinabove with regard to constructive notice. 
  

	 	(a)	Notices to the Company or to the Bank 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, NJ 08033 
  
 18.3. Entire Agreement. This Agreement constitutes the entire agreement between the parties in connection with the subject matter hereof,
supersedes any and all prior agreements or understandings between the parties and may only be changed by agreement in writing between the parties. 
  
 18.4. Construction. This Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of Pennsylvania. 
  

 -22- 

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

							
	 	 	 	 	SUSQUEHANNA BANCSHARES, INC.
				
	Attest:	 	 /s/ James H. Foster

	 	By:	 	 /s/ Edward Balderston

	 	 	Assistant Secretary	 	 	 	Edward Balderston, Jr.
	 	 	 	 	 	 	EVP & CAO
			
	 	 	 	 	EMPLOYEE
				
	 	 	 	 	 	 	 /s/ Michael M.
Quick                    (Seal)

	 	 	 	 	 	 	Michael M. Quick

  

 -23-Form of 125% A Warrant

 Exhibit 10.65 
  
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, ASSIGNED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, REGULATION S OR AN EXEMPTION FROM REGISTRATION AND OTHERWISE IN ACCORDANCE WITH THE
TERMS OF AN AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL OWNER OF THE SECURITIES, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICE OF THE ISSUER. 
  

LITHIUM TECHNOLOGY CORPORATION 
  
 WARRANT 
  
 This Warrant is issued in connection with that certain Subscription Agreement (the “Subscription Agreement”) by and among LITHIUM TECHNOLOGY
CORPORATION, a Delaware corporation (the “Company”), and                      (the “Investor”). Capitalized terms used
herein, but not otherwise defined, shall have the meaning given to them in the Subscription Agreement. 
  
 THIS CERTIFIES THAT, for value received, the Investor or its registered assigns is entitled to purchase from the Company at any time or from time
to time during the period specified in Paragraph 2 hereof one-half (1/2) fully paid and nonassessable share of the Company’s Common Stock, $.01 par value per share (the “Common Stock”) for each share of Common Stock issued upon
conversion of the Series A Preferred Stock purchased by the Investor pursuant to the Subscription Agreement (the “Series A Preferred Stock”), at an exercise price per share of Common Stock equal to 125% of the conversion price of the
Series A Preferred Stock then in effect upon conversion of any shares of Series A Preferred Stock by the Investor (the “Series A Preferred Stock Conversion”) from time to time (the “Exercise Price”). 
  
 The term “Warrant Shares,” as used herein, refers to the shares of
Common Stock purchasable hereunder. The Warrant Shares and the Exercise Price are subject to adjustment as provided in Paragraph 4 hereof. This Warrant is subject to the following terms, provisions, and conditions: 
  
 I. Manner of Exercise; Issuance of Certificates; Payment for Shares.
Subject to the provisions hereof, this Warrant may be exercised by the holder hereof, in whole or in part, by the surrender of this Warrant, together with a completed exercise agreement in the form attached hereto (the “Exercise
Agreement”), to the Company during normal business hours on any business day at the Company’s principal executive offices (or such other office or agency of the Company as it may designate by notice to the holder hereof), and upon (i)
payment to the Company in cash, by certified or official bank check or by wire transfer for the account of the Company of the Exercise Price for the Warrant Shares specified in the Exercise Agreement or (ii) if the resale of the Warrant Shares by
the holder is not then registered pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), 

 delivery to the Company of a written notice of an election to effect a “Cashless Exercise” (as defined in
Section 11(c) below) for the Warrant Shares specified in the Exercise Agreement. The Warrant Shares so purchased shall be deemed to be issued to the holder hereof or such holder’s designee, as the record owner of such shares, as of the close of
business on the date on which this Warrant shall have been surrendered, the completed Exercise Agreement shall have been delivered, and payment shall have been made for such shares as set forth above. Certificates for the Warrant Shares so
purchased, representing the aggregate number of shares specified in the Exercise Agreement, shall be delivered to the holder hereof within a reasonable time after this Warrant shall have been so exercised. The certificates so delivered shall be in
such denominations as may be requested by the holder hereof and shall be registered in the name of such holder or such other name as shall be designated by such holder. If this Warrant shall have been exercised only in part, then, unless this
Warrant has expired, the Company shall, at its expense, at the time of delivery of such certificates, deliver to the holder a new Warrant representing the number of shares with respect to which this Warrant shall not then have been exercised.

  
 2. Period of Exercise. This Warrant is exercisable at
any time or from time to time on or after the Series A Preferred Stock Conversion and before 5:00 p.m., New York, New York time on the fourth anniversary of such date (the “Exercise Period”) which date may not be later than
             2011 (the “Warrant Expiration Date”). 
  
 3. Certain Agreements of the Company. The Company hereby covenants and agrees as follows: 
  
 (a) Shares to be Fully Paid. All Warrant Shares will, upon
issuance in accordance with the terms of this Warrant, be validly issued, fully paid, and nonassessable and free from all taxes, liens, and charges with respect to the issue thereof. 
  
 (b) Reservation of Shares. During the Exercise Period, the Company shall at all times have authorized,
and reserved for the purpose of issuance upon exercise of this Warrant, a sufficient number of shares of Common Stock to provide for the exercise of this Warrant. 
  
 (c) Listing. The Company shall promptly secure the listing of the shares of Common Stock issuable upon
exercise of the Warrant upon each national securities exchange or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance upon exercise of this Warrant) and shall maintain, so
long as any other shares of Common Stock shall be so listed, such listing of all shares of Common Stock from time to time issuable upon the exercise of this Warrant. 
  
 (d) Successors and Assigns. This Warrant will be binding upon any entity succeeding to the Company by merger,
consolidation, or acquisition of all or substantially all the Company’s assets. 
  

 -2- 

 4. Adjustment and Antidilution Provisions. On or after the date of issuance of this Warrant, the
Warrant Exercise Price and number of shares issuable pursuant to this Warrant shall be subject to adjustment as follows: 
  
 (a) In case the Company shall (i) declare a dividend or make a distribution on its outstanding shares of Common Stock in shares of
Common Stock, (ii) subdivide or reclassify its outstanding shares of Common Stock into a greater number of shares, or (iii) combine or reclassify its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect at
the time of the record date for such dividend or distribution or of the effective date of such subdivision, combination or reclassification shall be adjusted so that it shall equal the price determined by multiplying the Exercise Price by a
fraction, the denominator of which shall be the number of shares of Common Stock outstanding after giving effect to such action, and the numerator of which shall be the number of shares of Common Stock immediately prior to such action. Such
adjustment shall be made each time any event listed above shall occur. 
  
 (b) Whenever the Exercise Price payable upon exercise of each Warrant is adjusted pursuant to Subsection (a) above, the number of shares purchasable upon exercise of this Warrant shall simultaneously be
adjusted by multiplying the number of shares initially issuable upon exercise of this Warrant by the Exercise Price in effect on the date hereof and dividing the product so obtained by the Exercise Price, as adjusted. 
  
 (c) All calculations under this Section 4 shall be
made to the nearest cent or to the nearest one-hundredth of a share, as the case may be. Anything in this Section 4 to the contrary notwithstanding, the Company shall be entitled, but shall not be required, to make such changes in the Exercise Price
in addition to those required by this Section 4, as it shall determine, in its sole discretion, to be advisable in order that any dividend or distribution in shares of Common Stock, or any subdivision, reclassification or combination of Common
Stock, hereafter made by the Corporation shall not result in any Federal Income tax liability to the holders of the Common Stock or securities convertible into Common Stock (including warrants). 
  
 (d) Whenever the Exercise Price is adjusted, as
herein provided, the Corporation shall promptly cause a notice setting forth the adjusted Exercise Price and adjusted number of shares issuable upon exercise of each Warrant to be mailed to the Holder, at its last address appearing in the
Company’s Warrant Register. The Company may retain a firm of independent certified public accountants selected by the Board of Directors (who may be the regular accountants employed by the Company) to make any computation required by this
Section 4, and a certificate signed by such firm shall be conclusive evidence of the correctness of such adjustment. 
  
 5. Issue Tax. The issuance of certificates for Warrant Shares upon the exercise of this Warrant shall be made without charge to the holder
of this Warrant or such shares for any issuance tax or other costs in respect thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any
certificate in a name other than the holder of this Warrant. 
  

 -3- 

 6. No Rights or Liabilities as a Shareholder. This Warrant shall not entitle the holder
hereof to any voting rights or other rights as a shareholder of the Company. No provision of this Warrant, in the absence of affirmative action by the holder hereof to purchase Warrant Shares, and no mere enumeration herein of the rights or
privileges of the holder hereof, shall give rise to any liability of such holder for the Exercise Price or as a shareholder of the Company, whether such liability is asserted by the Company or by creditors of the Company. 
  
 7. Transfer, Exchange, and Replacement of Warrant. 

 
 (a) Restriction on Transfer. This Warrant
and the rights granted to the holder hereof are transferable, in whole or in part, upon surrender of this Warrant, together with a properly executed assignment in the form attached hereto, at the office or agency of the Company referred to in
Paragraph 7(e) below, provided, however, that any transfer or assignment shall be subject to the conditions set forth in Paragraph 7(f) hereof. Until due presentment for registration of transfer on the books of the Company, the Company may treat the
registered holder hereof as the owner and holder hereof for all purposes, and the Company shall not be affected by any notice to the contrary. 
  
 (b) Warrant Exchangeable for Different Denominations. This Warrant is exchangeable, upon the surrender hereof by the holder
hereof at the office or agency of the Company referred to in Paragraph 7(e) below, for new Warrants of like tenor representing in the aggregate the right to purchase the number of shares of Common Stock which may be purchased hereunder, each of such
new Warrants to represent the right to purchase such number of shares as shall be designated by the holder hereof at the time of such surrender. 
  
 (c) Replacement of Warrant. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction,
or mutilation of this Warrant and, in the case of any such loss, theft, or destruction, upon delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company, or, in the case of any such mutilation, upon surrender and
cancellation of this Warrant, the Company, at its expense, will execute and deliver, in lieu thereof, a new Warrant of like tenor. 
  
 (d) Cancellation; Payment of Expenses. Upon the surrender of this Warrant in connection with any transfer, exchange, or
replacement as provided in this Paragraph 7, this Warrant shall be promptly canceled by the Company. The Company shall pay all taxes (other than securities transfer taxes) and all other expenses (other than legal expenses, if any, incurred by the
holder or transferees) and charges payable in connection with the preparation, execution, and delivery of Warrants pursuant to this Paragraph 7. 
  
 (e) Register. The Company shall maintain, at its principal executive offices (or such other office or agency of the Company
as it may designate by notice to the holder hereof), a register for this Warrant, in which the Company shall record the name and address of the person in whose name this Warrant has been issued, as well as the name and address of each transferee and
each prior owner of this Warrant. 
  

 -4- 

 (f) Exercise or Transfer Without Registration. If, at the time of the
surrender of this Warrant in connection with any exercise, transfer, or exchange of this Warrant, this Warrant (or, in the case of any exercise, the Warrant Shares issuable hereunder), shall not be registered under the Securities Act of 1933, as
amended (the “Securities Act”) and under applicable state securities or blue sky laws, the Company may require, as a condition of allowing such exercise, transfer, or exchange, (i) that the holder or transferee of this Warrant, as the case
may be, furnish to the Company a written opinion of counsel, which opinion and counsel are acceptable to the Company, to the effect that such exercise, transfer, or exchange may be made without registration under said Act and under applicable state
securities or blue sky laws, (ii) that the holder or transferee execute and deliver to the Company an investment letter in form and substance acceptable to the Company and (iii) that the transferee be an “accredited investor” as defined in
Rule 501(a) promulgated under the Securities Act; provided that no such opinion, letter or status as an “accredited investor” shall be required in connection with a transfer pursuant to Rule 144 under the Securities Act. The first holder
of this Warrant, by taking and holding the same, represents to the Company that such holder is acquiring this Warrant for investment and not with a view to the distribution thereof. 
  
 8. Registration Rights. The initial holder of this Warrant (and certain assignees thereof) shall have
registration rights as set forth in Section 5 of the Subscription Agreement. 
  
 9. Notices. All notices, requests, and other communications required or permitted to be given or delivered hereunder to the holder of this Warrant shall be in writing, and shall be personally delivered,
or shall be sent by certified or registered mail or by recognized overnight mail courier, postage prepaid and addressed, to such holder at the address shown for such holder on the books of the Company, or at such other address as shall have been
furnished to the Company by notice from such holder. All notices, requests, and other communications required or permitted to be given or delivered hereunder to the Company shall be in writing, and shall be personally delivered, or shall be sent by
certified or registered mail or by recognized overnight mail courier, postage prepaid and addressed, to the office of the Company at 5115 Campus Drive, Plymouth Meeting, Pennsylvania 19462, Attention: Chief Executive Officer, or at such other
address as shall have been furnished to the holder of this Warrant by notice from the Company. Any such notice, request, or other communication may be sent by facsimile, but shall in such case be subsequently confirmed by a writing personally
delivered or sent by certified or registered mail or by recognized overnight mail courier as provided above. All notices, requests, and other communications shall be deemed to have been given either at the time of the receipt thereof by the person
entitled to receive such notice at the address of such person for purposes of this Paragraph 9, or, if mailed by registered or certified mail or with a recognized overnight mail courier upon deposit with the United States Post Office or such
overnight mail courier, if postage is prepaid and the mailing is properly addressed, as the case may be. 
  
 10. Governing Law. THIS WARRANT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE
TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK

  

 -5- 

 WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS WARRANT, THE AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS
MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. BOTH PARTIES AGREE THAT A
FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER THIS
WARRANT SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE. 
  
 11. Miscellaneous. 
  
 (a) Amendments. This Warrant and any provision hereof may only be amended by an instrument in writing signed by the Company
and the holder hereof. 
  
 (b) Descriptive
Headings. The descriptive headings of the several paragraphs of this Warrant are inserted for purposes of reference only, and shall not affect the meaning or construction of any of the provisions hereof. 
  
 (c) Cashless Exercise. Notwithstanding
anything to the contrary contained in this Warrant, if the resale of the Warrant Shares by the holder is not then registered pursuant to an effective registration statement under the Securities Act, this Warrant may be exercised by presentation and
surrender of this Warrant to the Company at its principal executive offices with a written notice of the holder’s intention to effect a cashless exercise, including a calculation of the number of shares of Common Stock to be issued upon such
exercise in accordance with the terms hereof (a “Cashless Exercise”). In the event of a Cashless Exercise, in lieu of paying the Exercise Price in cash, the holder shall surrender this Warrant for that number of shares of Common Stock
determined by multiplying the number of Warrant Shares to which it would otherwise be entitled by a fraction, the numerator of which shall be the difference between the then current Market Price per share of the Common Stock and the Exercise Price,
and the denominator of which shall be the then current Market Price per share of Common Stock. For example, if the holder is exercising 100,000 warrants with a per warrant exercise price of $0.75 per share through a cashless exercise when the Common
Stock’s current Market Price per share is $2.00 per share, then upon such Cashless Exercise the holder will receive 62,500 shares of Common Stock. 
  
 (d) Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company 
  

 -6- 

 acknowledges that the remedy at law for a breach of its obligations under this Warrant will be inadequate
and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Warrant, that the holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties
assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Warrant and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or
other security being required. 
  
 IN WITNESS WHEREOF, the
Company has caused this Warrant to be signed by its duly authorized officer. 
  

			
	LITHIUM TECHNOLOGY CORPORATION
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  
 Dated as of
                    , 2004 
  

 -7- 

 FORM OF EXERCISE AGREEMENT 
  
 Dated:
                         , 200   
  
 To:
                                        
                     
  
 The undersigned, pursuant to the provisions set forth in the within Warrant, hereby agrees to purchase
             shares of Common Stock covered by such Warrant, and makes payment herewith in full therefor at the price per share provided by such Warrant in cash or by certified or
official bank check in the amount of $            , or, if the resale of such Common Stock by the undersigned is not currently registered pursuant to an effective registration
statement under the Securities Act of 1933, as amended, by surrender of securities issued by the Company (including a portion of the Warrant) having a market value (in the case of a portion of this Warrant, determined in accordance with Section
11(c) of the Warrant) equal to $            . Please issue a certificate or certificates for such shares of Common Stock in the name of and pay any cash for any fractional share to:

  

			
	 Name:
	 	  

		
	 Signature:
	 	 
	 Address:
	 	  

	 	 	  

  

			
	Note:	 	The above signature should correspond exactly with the name on the face of the within Warrant, if applicable.

  
 and, if said number of shares of
Common Stock shall not be all the shares purchasable under the within Warrant, a new Warrant is to be issued in the name of said undersigned covering the balance of the shares purchasable thereunder less any fraction of a share paid in cash.

  

 -8- 

 FORM OF ASSIGNMENT 
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers all the rights of the undersigned under the
within Warrant, with respect to the number of shares of Common Stock covered thereby set forth hereinbelow, to: 
  

					
	 Name of Assignee

	 	 Address

	 	 No. of Shares

  
 , and hereby irrevocably constitutes
and appoints
                                        
                     as agent and attorney-in-fact to transfer said Warrant on the books of the within-named corporation, with full power of
substitution in the premises. 
  
 Dated:
                         , 200   
  

					
	 In the presence of:
	 	 	 	  

			
	 	 	Name:	 	  

			
	 	 	Signature:	 	  

	 	 	Title of Signing Officer or Agent (if any):
			
	 	 	Address:	 	  

	 	 	 	 	  

	 	 	 	 	  

  

			
	Note:	 	The above signature should correspond exactly with the name on the face of the within Warrant, if applicable

  

 -9-

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