Company: CCNE
Filing Date: 2025-03-05
Form Type: 424B3
Source: 0001193125-25-047258
Chunk: 94

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-05
Form: 424B3
Chunk 94
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icingrules, the option exercise price rules, or the SAR exercise price rules. The CNB Board of Directors may terminate the 2025 Plan at any time; provided that no termination may materially impair the rights or obligations under outstanding awards, without the consent of the grantee. No Repricing.Except in connection with certain corporate transactions involving CNB, CNB may not: (i) amend the terms of outstanding options or SARs to reduce the exercise price of such outstanding options or SARs; (ii) cancel or assume outstanding options or SARs in exchange for, or substitution of, options or SARs with an exercise price that is less than the exercise price of the original options or SARs; or (iii) cancel or assume outstanding options or SARs with an exercise price above the then-current fair market value in exchange for cash, awards, or other securities, in each case, unless such action is subject to and approved by CNB’s shareholders. Summary of U.S. Federal Income Tax Consequences The U.S. federal income tax consequences of awards under the 2025 Plan for grantees and CNB will depend on the type of award granted. The following summary description of U.S. federal income tax consequences is intended only for the general information of CNB’s shareholders. A grantee in the 2025 Plan should not rely on this description and instead should consult his or her own tax advisor. Incentive Stock Options.The grant of an incentive stock option will not be a taxable event for the grantee or CNB. A grantee will not recognize taxable income upon exercise of an incentive stock option (except that the alternative minimum tax may apply), and any gain or loss realized upon a disposition of CNB common stock received pursuant to the exercise of an incentive stock option will be taxed as long-term capital gain or loss if the grantee holds the shares of CNB common stock for at least two years after the date of grant and for one year after the date of exercise (the “holding period requirement”). CNB will not be entitled to a business expense deduction with respect to an incentive stock option, except as discussed below. 61

For the exercise of an incentive stock option to qualify for the foregoing tax treatment, the grantee
generally must be CNB’s employee or an employee of one of CNB’s direct corporate subsidiaries from the date the incentive stock option is granted through a date within three months before the date of exercise of the option.

If all of the foregoing requirements are met except the