Company: CCNE
Filing Date: 2025-02-20
Form Type: S-4
Source: 0001193125-25-030821
Chunk: 85

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-02-20
Form: S-4
Chunk 85
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 2025 Plan, the 2025 Plan will not become effective, and any awards made under the 2025 Plan on or after the Effective Date but prior to the CNB annual meeting will not be exercisable, settleable, or deliverable. Moreover any awards to key persons will continue to be made under the 2019 Plan, to the extent shares are available for issuance thereunder, which as of December 31, 2024 equaled an estimated 26,278 shares (without giving effect to additional shares that may have become available upon the future expiration, forfeiture, or cancellation of outstanding awards). The CNB Board of Directors believes that, if the 2025 Plan is not approved, the current share reserve under the 2019 Plan would be insufficient to align the interests of key persons with CNB’s shareholders through equity-based compensation and accordingly, such a shortage would compromise and disrupt CNB’s compensation program as well as impair CNB’s ability to recruit, retain, and reward key people, or require CNB to shift its compensation plan to include more cash compensation. Notable Features of the 2025 Plan As described in more detail below, certain notable features of the 2025 Plan include:

| • |     | granting of options or SARs only at a per share exercise price at least equal to the fair market value of a share of CNB common stock on the grant date; |

| • |     | granting of options or SARs with a ten-year maximum term; |

| • |     | no repricing of options or SARs without prior shareholder approval; |

| • |     | no vesting in dividends or dividend equivalent rights paid on unvested performance-based awards unless the underlying award vests; |

| • |     | no liberal share recycling; and |

| • |     | no reload or “evergreen” share replenishment features. |

Burn Rate The historical three-year average burn rate for fiscal years 2022, 2023, and 2024 was 0.5%. The burn rate is calculated by dividing (i) the number of shares granted subject to time-based equity awards and the number of shares earned subject to performance-based equity awards during the applicable fiscal year by (ii) the weighted average number of shares of common stock outstanding during the applicable fiscal year. 56

Summary of the Material Terms of the 2025 Plan A summary of the material terms of the 2025 Plan is set forth below. This summary is qualified in its entirety by