Document:

EXHIBIT 10.3

CITIZENS & NORTHERN CORPORATION

1995 STOCK INCENTIVE PLAN (As Amended)

 

RESTRICTED STOCK AGREEMENT

 

RESTRICTED STOCK AGREEMENT dated as of the 3rd day of January,
2013, by and between Citizens & Northern Corporation (the "Corporation") and «name», an
employee of the Corporation or of a subsidiary (the "Recipient").

 

Pursuant to the Citizens & Northern Corporation 1995 Stock
Incentive Plan (the "Plan"), as amended, the Compensation Committee of the Board of Directors (the "Committee")
has determined that the Recipient is to be granted, on the terms and conditions set forth herein, «Restricted_Shares»
Restricted Shares of the Corporation's common stock and hereby grants such Restricted Shares. It is intended that the Restricted
Shares qualify as an "Incentive Stock Option" within the meaning of Section 422 of the Internal Revenue Code of 1986,
as amended (the "Code").

 

		1.	Number of Shares and Price. Restricted Stock shall consist of shares of Stock that will be acquired by and issued to
the Recipient at a designated time approved by the board of directors, for no purchase price, and under and subject to such transfer,
forfeiture and other restrictions, conditions or terms as shall be determined by the Committee, including but not limited to prohibitions
against transfer and substantial risks of forfeiture within the meaning of Section 83 of the Code,

 

		2.	Rights of Recipient. Except as otherwise provided in the Plan or the Restricted Stock Agreement, a Recipient of shares
of Restricted Stock shall have all the rights as does a holder of Stock, including without limitation the right to vote such shares
and receive dividends with respect thereto; however, during the time period of any restrictions, conditions or terms applicable
to such Restricted Stock, the shares thereof and the right to vote the same and receive dividends thereon shall not be sold, assigned,
transferred, exchanged, pledged, hypothecated, encumbered or otherwise disposed of except as permitted by the Plan or the Restricted
Stock Agreement. Cash dividends shall be paid out and shall not participate in Dividend Reinvestment. Stock dividends resulting
in whole shares shall be added to the shares held in the Restricted Account and shall be distributed to the Recipient with subsequent
distributions of any Award for which they accrued. Partial shares that result from any stock dividend shall be paid to the Recipient
in cash at the time of the payment of the stock dividend. If the Restricted Shares expire prior to the satisfaction of performance
standards set forth in section 4 or due to forfeiture as set forth in section 5, all shares accrued by virtue of stock dividends
shall be forfeited.

 

		3.	Holding of Restricted Shares.  Each certificate for shares of Restricted Stock shall be deposited with the Secretary
of the Corporation, or the office thereof, and shall bear a legend in substantially the following form and content:

 

			This Certificate and the shares of Stock hereby represented are subject to the provisions of the Corporation’s
Stock Incentive Plan and a certain agreement entered into between the owner and the Corporation pursuant to said Plan. The release
of the Certificate and the shares of Stock hereby represented from such provision shall occur only as provided by said Plan and
Agreement, a copy of which are on file in the office of the Secretary of the Corporation.

 

			Upon the lapse or satisfaction of the restrictions, conditions and terms applicable to such Restricted Stock, a certificate
for the shares of Stock free thereof with such legend shall be issued to the Recipient.

 

		4.	Release and Lapse of Restricted Shares. One-third of the total shares will be distributed on the anniversary date of
this award based on the Recipient’s satisfactory performance of his or her job and the Corporation’s attainment of
an earnings-based performance standard. For the first year of this award, the performance standard will be based on achieving 100%
or more of the Return on Equity of a defined peer group of bank holding companies, herein defined (adjusting for the difference
between the Corporation’s and the peer group’s equity to asset ratios), for the four consecutive calendar quarters
ending with the third quarter of each calendar year following the Award Date, until all Restricted Shares awarded herewith are
distributed. If all the Restricted Shares awarded by this agreement are not distributed within the ten (10) year period following
the date of this Agreement, they shall expire and revert back to the Corporation. No partial shares may be released, thus an amount
equal to the next whole share amount will be released subject to the specified performance criteria at each anniversary. The shares
released may be in certificate form, or may be directed to be held in a custodial account designated by the Recipient. The peer
group consists of banks headquartered in Pennsylvania with total assets of $750 million to $2.0 billion with the addition of Chemung
Financial Corporation in Elmira, NY.

 

    	 

    	 

    

 

The Committee reserves the right to change the composition
of the peer group, as well as the method of evaluating the Corporation’s earnings performance as compared to the peer group,
based on mergers or acquisitions involving members of the peer group, changes in size of the Corporation or members of the peer
group, or other factors deemed appropriate by the Committee.

 

		5.	Terms of Forfeiture. If a Recipient’s employment with the Corporation, or a subsidiary, ceases for any reason
prior to the lapse of the restrictions, conditions or terms applicable to his or her Restricted Stock, all of the Recipient’s
Restricted Stock still subject to unexpired restrictions, conditions or terms shall be forfeited absolutely by the Recipient to
the Corporation without payment or delivery of any consideration or other thing of value by the Corporation or its affiliates,
and thereupon and thereafter neither the Recipient nor his or her heirs, personal or legal representatives, successors, assigns,
beneficiaries, or any claimants under the Recipient’s Last Will or laws of descent and distribution, shall have any rights
or claims to or interests in the forfeited Restricted Stock or any certificates representing shares thereof, or claims against
the Corporation or its affiliates with respect thereto. Except in the case of disability, employment ceases with the Corporation,
or its Subsidiary, on the day the Recipient’s employment is terminated with or without cause, or on their date of death.
In the event of disability, the Recipient’s employment is considered terminated on the date for which the Recipient receives
the final payment of the Corporation’s, or Subsidiary’s, short-term disability.

 

		6.	Non-Transferability of Restricted Stock. The Restricted Stock and this Restricted Stock Agreement shall not
be transferable.

 

		7.	Change in Control. If any of the change in control events described in Section 11 of the Plan occur, all shares of Restricted
Stock shall fully vest and all restrictions on the shares of Restricted Stock shall lapse as follows: In the case of an event specified
in clause (a) of the second sentence of the third paragraph of Section 11, the lapse of all restrictions on the shares of Restricted
Stock shall occur immediately prior to the consummation of the described transaction and, in the case of an event specified in
clause (b) or (c) of said sentence, the full vesting and lapse of restrictions shall occur upon occurrence of the described event.

 

		8.	Notices. Any notice required or permitted under this Restricted Stock Agreement shall be deemed given when delivered
personally, or when deposited in a United States Post Office, postage prepaid, addressed, as appropriate, to the Recipient either
at his or her address herein above set forth or such other address as he or she may designate in writing to the Corporation.

 

		9.	Failure to Enforce Not a Waiver. The failure of the Corporation to enforce at any time any provision of this Restricted
Stock Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.

 

		10.	Governing Law. This Restricted Stock Agreement shall be governed by and construed according to the laws of the State
of Pennsylvania.

 

		11.	Incorporation of Plan. The Plan is hereby incorporated by reference and made a part hereof, and the Restricted Stock
and this Restricted Stock Agreement are subject to all terms and conditions of the Plan.

 

		12.	Amendments. This Option Agreement may be amended or modified at any time by an instrument in writing signed by the parties
hereto, provided that no such amendment or modification shall be made which would cause the Restricted Stock to fail to continue
to qualify as "incentive restricted stock."

 

IN WITNESS WHEREOF, the parties have executed this Option Agreement
on the day and year first above written.

 

	 	By
	 	 
	 	
	 	Charles H. Updegraff, Jr., Chairman, President & CEO
	 	 
	 	The undersigned hereby accepts and agrees to all the terms and provisions of the foregoing Restricted Stock Agreement and to all the terms and provisions of the Citizens & Northern Corporation 1995 Stock Incentive Plan herein incorporated by reference.
	 	 
	 	
	 	Recipient – «name»EXHIBIT 10.5

 

INDEMNIFICATION AGREEMENT

 

This Agreement made this
2nd day of January, 2013, between Citizens & Northern Corporation,
a bank holding company registered under the Bank Holding Company Act of 1956, as amended, and a Pennsylvania corporation (the “Company”)
and Shelley L. D’Haene, a director, officer or representative (as hereinafter defined) of the Company (the “Indemnitee”);

 

WHEREAS, the Company and
the Indemnitee are each aware of the exposure to litigation of officers, directors and representatives of the Company as such persons
exercise their duties to the Company;

 

WHEREAS, the Company and
the Indemnitee are also aware of conditions in the insurance industry that have affected and may continue to affect the Company’s
ability to obtain appropriate directors’ and officers’ liability insurance on an economically acceptable basis;

 

WHEREAS, the Company desires
to continue to benefit from the services of highly qualified, experienced and competent persons such as the Indemnitee;

 

WHEREAS, the Indemnitee
desires to serve or to continue to serve the Company as a director, officer or as a director, officer or trustee of another corporation,
joint venture, trust or other enterprise in which the Company has a direct or indirect ownership interest, for so long as the Company
continues to provide on an acceptable basis adequate and reliable indemnification against certain liabilities and expenses which
may be incurred by the Indemnitee.

 

NOW, THEREFORE, in consideration
of the foregoing premises and the mutual covenants herein contained, the parties hereto agree as follows:

 

1.          Indemnification.
Subject to the terms of this Agreement, the Company shall indemnify the Indemnitee with respect to his activities as a director
or officer of the Company and/or as a person who is serving or has served on behalf of the Company (“representative”)
as a director, officer, or trustee of another corporation, joint venture, trust or other enterprise, domestic or foreign, in which
the Company has a direct or indirect ownership interest (an “affiliated entity”) against expenses (including, without
limitation, attorneys’ fees, judgments, fines, and amounts paid in settlement) actually and reasonably incurred by him (“Expenses”)
in connection with any claim against Indemnitee which is the subject of any threatened, pending, or completed action, suit, or
proceeding, whether civil, criminal, administrative, investigative or otherwise and whether formal or informal (a “Proceeding”),
to which Indemnitee was, is, or is threatened to be made a party by reason of facts which include Indemnitee’s being or having
been such a director, officer or representative, to the extent of the highest and most advantageous to the Indemnitee, as determined
by the Indemnitee, of one or any combination of the following:

 

	 	(a)	The benefits provided by the Company’s Articles of Incorporation in effect on the date hereof;
	 	 	 
	 	(b)	The benefits provided by the Articles of Incorporation or By-Laws or their equivalent of the Company in effect at the time Expenses are incurred by Indemnitee;
	 	 	 
	 	(c)	The benefits allowable under Pennsylvania law in effect at the date hereof;
	 	 	 
	 	(d)	The benefits allowable under the law of the jurisdiction under which the Company exists at the time Expenses are incurred by the Indemnitee;
	 	 	 
	 	(e)	The benefits available under liability insurance obtained by the Company;
	 	 	 
	 	(f)	The benefits available under the $5,000,000 D&O Selectplus Insurance Policy obtained by the Company from The Fidelity and Deposit Companies in effect for 2004; and

 

    	 

    	 

    

 

	 	(g)	Such other benefits as are or may be otherwise available to Indemnitee. 

 

Combination of two or
more of the benefits provided by (a) through (g) shall be available to the extent that the Applicable Document, as hereafter defined,
does not require that the benefits provided therein be exclusive of other benefits. The document or law providing for the benefits
listed in items (a) through (g) above is called the “Applicable Document” in this Agreement. Company hereby undertakes
to use its best efforts to assist Indemnitee, in all proper legal ways, to obtain the benefits selected by Indemnitee under items
(a) through (g) above.

 

For purposes of this Agreement,
references to “other enterprises” shall include employee benefit plans for employees of the Company or of any affiliated
entity without regard to ownership of such plans; references to “fines” shall include any excise taxes assessed on
the Indemnitee with respect to any employee benefit plan; references to “serving on behalf of the company” shall include
any services as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, the Indemnitee
with respect to an employee benefits plan, its participants or beneficiaries; references to the singular shall include the plural
and vice versa; and if the Indemnitee acted in good faith and in a manner he or she reasonably believed to be in the interest
of the participants and beneficiaries of an employee benefit plan Indemnitee shall be deemed to have acted in a manner consistent
with the standards required for indemnification by the Company under the Applicable Documents.

 

2.          Insurance.
The Company shall maintain directors’ and officers’ liability insurance for so long as Indemnitee’s services
are covered hereunder, provided and only to the extent that such insurance is available in amounts and on terms and conditions
determined by the Company to be acceptable. However, the Company agrees that the provisions hereof shall remain in effect regardless
of whether liability or other insurance coverage is at any time obtained or retained by the Company; except that any payments in
fact made to Indemnitee under an insurance policy obtained or retained by the Company shall reduce the obligation of the Company
to make payments hereunder by the amount of the payments made under any such insurance policy.

 

3.          Payment
of Expenses. At Indemnitee’s request, the Company shall pay the Expenses as and when incurred by Indemnitee, after receipt
of written notice pursuant to Section 6 hereof and an undertaking in the form of Exhibit I attached hereto by or on behalf of Indemnitee
(i) to repay such amounts so paid on Indemnitee’s behalf if it shall ultimately be determined under the Applicable Document
or applicable law that Indemnitee is required to repay such amounts and (ii) to reasonably cooperate with the Company concerning
such Proceeding. That portion of Expenses which represents attorneys’ fees and other costs incurred in defending any Proceeding
shall be paid by the Company within thirty (30) days of its receipt of such request, together with reasonable documentation (consistent,
in the case of attorneys’ fees, with Company practice in payment of legal fees for outside counsel generally) evidencing
the amount and nature of such Expenses, subject to its also having received such notice and undertaking.

 

It is understood and agreed
before the Company pays the Expenses incurred in a Proceeding brought by a banking agency in which a final order has not been entered,
the following conditions must be met:

 

	 	(a)	The Board of Directors, in good faith, shall determine in writing after due investigation and consideration that the Indemnitee acted in a manner believed to be in the best interests of the Company;
	 	 	 
	 	(b)	The Board of Directors, in good faith, shall determine after due investigation and consideration that the payment of such Expenses will not materially or adversely affect the Company’s safety and soundness.
	 	 	 
	 	(c)	The Indemnitee shall agree in writing to reimburse the Company for Expenses which subsequently are deemed “prohibited indemnification payments”, as defined in 12 C.F.R. § 359.1(1).

 

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The Indemnitee shall not
participate in any way in the Board’s discussion and approval of Expenses, provided however, that the Indemnitee may present
his or her request to the Board and respond to any inquiries from the Board concerning his or her involvement in the circumstances
giving rise to the banking agency Proceeding or civil action.

 

4.          Escrow.
The Company may dedicate such amounts as the Board of Directors of the Company may from time to time authorize, as collateral security
for the funding of its obligations hereunder (and under similar agreements with other directors, officers and representatives)
by depositing assets or bank letters of credit in escrow or reserving lines of credit that may be drawn down by an escrow agent
in the dedicated amount (the “Escrow Reserve”). The Company shall promptly provide Indemnitee with a true and complete
copy of the agreement relating to the establishment and operation of the Escrow Reserve, together with such additional documentation
or information with respect to the escrow as Indemnitee may from time to time reasonably request. The Company shall promptly deliver
an executed copy of the Agreement to the escrow agent for the Escrow Reserve to evidence to that agent that Indemnitee is a beneficiary
of that Escrow Reserve and shall deliver to Indemnitee the escrow agent’s signed receipt evidencing that delivery.

 

5.          Additional
Rights. The indemnification provided in this Agreement shall not be exclusive of any other indemnification or right to which
Indemnitee may be entitled and shall continue after Indemnitee has ceased to occupy a position as an officer, director or representative
as described in Paragraph 1 above with respect to Proceedings relating to or arising out of Indemnitee’s acts or omissions
during his or her service in such position.

 

6.          Notice
to Company. Indemnitee shall provide to the Company prompt written notice of any Proceeding brought, threatened, asserted or
commenced against Indemnitee with respect to which Indemnitee may assert a right to indemnification hereunder; provided that failure
to provide such notice shall not in any way limit Indemnitee’s rights under this Agreement.

 

7.          Cooperation
in Defense and Settlement. Indemnitee shall not make any admission or effect any settlement of any Proceeding without the Company’s
written consent unless Indemnitee shall have determined to undertake his or her own defense in such matter and has waived the benefits
of this Agreement. The Company shall not settle any Proceeding to which Indemnitee is a party in any manner which would impose
any Expense on Indemnitee without his written consent. Neither Indemnitee nor the Company will unreasonably withhold consent to
any proposed settlement. Indemnitee and the Company shall cooperate to the extent reasonably possible with each other and with
the Company’s insurers, in attempts to defend and/or settle such Proceeding.

 

8.          Assumption
of Defense. Except as otherwise provided below, to the extent that it may wish, the Company (jointly with any other indemnifying
party similarly notified), will be entitled to assume Indemnitee’s defense in any Proceeding, with counsel mutually satisfactory
to Indemnitee and the Company. Indemnitee shall have the right to employ counsel in such Proceeding, but the fees and expenses
of such counsel incurred after notice from the Company of its assumption of the defense thereof shall be at Indemnitee’s
expense unless:

 

	 	(a)	the employment of counsel by Indemnitee has been authorized by the Company;
	 	 	 
	 	(b)	counsel employed by the Company initially is unacceptable or later becomes unacceptable to Indemnitee and such unacceptability is reasonable under then existing circumstances;
	 	 	 
	 	(c)	Indemnitee shall have reasonably concluded that there may be a conflict of interest between Indemnitee and the Company in the conduct of the defense of such Proceeding; or 
	 	 	 
	 	(d)	the Company shall not have employed counsel promptly to assume the defense of such Proceeding,

 

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in each of which case fees and expenses of
counsel shall be at the expense of the Company and subject to payment pursuant to this Agreement. The Company shall not be entitled
to assume the defense of Indemnitee in any Proceeding brought on behalf of the Company or as to which Indemnitee shall have drawn
either of the conclusions provided for in clauses (b) or (c) above.

 

9.          Enforcement.
In the event that any dispute or controversy shall arise under this Agreement between Indemnitee and the Company with respect to
whether the Indemnitee is entitled to indemnification in connection with any Proceeding or with respect to the amount of Expenses
incurred, then with respect to each such dispute or controversy Indemnitee may seek to enforce the Agreement through legal action
or, at Indemnitee’s sole option and written request, through arbitration. If arbitration is requested, such dispute or controversy
shall be submitted by the parties to binding arbitration in the Borough of Wellsboro in the Commonwealth of Pennsylvania, before
a single arbitrator agreeable to both parties. If the parties cannot agree on a designated arbitrator within fifteen (15) days
after arbitration is requested in writing by Indemnitee, the arbitration shall proceed in the Borough of Wellsboro in the Commonwealth
of Pennsylvania, before an arbitrator appointed by the American Arbitration Association. In either case, the arbitration proceeding
shall commence promptly under the rules then in effect of that Association and the arbitrator agreed to by the parties or appointed
by that Association shall be an attorney other than an attorney who has, or is associated with a firm having associated with it
an attorney which has been retained by or performed services for the Company or Indemnitee at any time during the five years preceding
the commencement of arbitration. The award shall be rendered in such form that judgment may be entered thereon in any court having
jurisdiction thereof. The prevailing party shall be entitled to prompt reimbursement of any costs and expenses (including, without
limitation, reasonable attorneys’ fees) incurred in connection with such legal action or arbitration; provided that Indemnitee
shall not be obligated to reimburse the Company unless the arbitrator or court which resolves the dispute determines that Indemnitee
acted in bad faith in bringing such action or arbitration.

 

10.         Exclusions.
Notwithstanding the scope of indemnification which may be available to Indemnitee from time to time under any Applicable Document,
no indemnification, reimbursement or payment shall be required of the Company hereunder with respect to:

 

	 	(a)	Any claim or any part thereof as to which Indemnitee shall have been determined by a court of competent jurisdiction from which no appeal is or can be taken, by clear and convincing evidence, to have acted or failed to act with deliberate intent to cause injury to the Company or with reckless disregard for the best interest of the Company;
	 	 	 
	 	(b)	Any claim or any part thereof arising under Section 16(b) of the Securities Exchange Act of 1934 pursuant to which Indemnitee shall be obligated to pay any penalty, fine, settlement or judgment;
	 	 	 
	 	(c)	Any civil money penalty or judgment resulting from any Proceeding instituted by any federal banking agency, or any other liability or legal expense with regard to any administrative proceeding or civil action by any banking agency that results in a final order or settlement pursuant to which Indemnitee:

 

	 	(1)	is assessed a civil money penalty;
	 	(2)	is removed from office or prohibited from participating in the conduct of the affairs of the Company or its affiliates;
	 	(3)	is required to cease and desist from taking any affirmative action described under the Federal Deposit Insurance Act or other applicable banking laws with respect to the Company and its affiliates;

 

	 	(d)	Any obligation of Indemnitee based upon or attributable to the Indemnitee gaining in fact any personal gain, profit or advantage to which he was not entitled; or

 

    	-4-

    	 

    

 

	 	(e)	Any Proceeding initiated by Indemnitee without the consent or authorization of the Board of Directors of the Company, provided that this exclusion shall not apply with respect to any claims brought by Indemnitee (i) to enforce his rights under this Agreement or (ii) in any Proceeding initiated by another person or entity whether or not such claims were brought by Indemnitee against a person or entity who was otherwise a party to such Proceeding. 

 

Nothing in this Section
10 shall eliminate or diminish Company’s obligations to advance that portion of Indemnitee’s Expenses which represent
attorneys’ fees and other costs incurred in defending any Proceeding pursuant to Section 3 of this Agreement; subject however
to the undertaking by Indemnitee in the form attached hereto as Exhibit 1 and incorporated by reference herein.

 

11.         Extraordinary
Transactions. The Company covenants and agrees that, in the event of any merger, consolidation or reorganization in which the
Company is not the surviving entity, any sale of all or substantially all of the assets of the Company or any liquidation of the
Company (each such event is hereinafter referred to as an “extraordinary transaction”), the Company shall:

 

	 	(a)	have the obligations of the Company under this Agreement expressly assumed by the survivor, purchaser or successor, as the case may be, in such extraordinary transaction; or
	 	 	 
	 	(b)	otherwise adequately provide for the satisfaction of the Company’s obligations under this Agreement in a manner acceptable to Indemnitee.

 

12.         No
Personal Liability. Indemnitee agrees that neither the directors nor any officer, employee, representative or agent of the
Company shall be personally liable for the satisfaction of the Company’s obligations under this Agreement, and Indemnitee
shall look solely to the assets of the Company and the escrow the Company may establish, as referred to in Section 4 hereof, for
satisfaction of any claims hereunder.

 

13.         Severability.
If any provision, phrase, or other portion of this Agreement should be determined by any court of competent jurisdiction to be
invalid, illegal or unenforceable, in whole or in part, and such determination should become final, such provision, phrase or other
portion shall be deemed to be severed or limited, but only to the extent required to render the remaining provisions and portions
of the Agreement enforceable, and the Agreement as thus amended shall be enforced to give effect to the intention of the parties
insofar as that is possible.

 

14.         Subrogation.
In the event of any payment under this Agreement, the Company shall be subrogated to the extent thereof to all rights to indemnification
or reimbursement against any insurer or other entity or person vested in the Indemnitee, who shall execute all instruments and
take all other actions as shall be reasonably necessary for the Company to enforce such rights.

 

15.         Governing
Law. The parties hereto agree that this Agreement shall be construed and enforced in accordance with and governed by the laws
of the Commonwealth of Pennsylvania.

 

16.         Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be considered to have been duly
given if delivered by hand and receipted for by the party to whom the notice, request, demand or other communication shall have
been directed, or mailed by certified mail, return receipt requested, with postage prepaid:

 

	 	(a)	If to the Company, to:
	 	 	Citizens & Northern Corporation
	 	 	90-92 Main Street
	 	 	P.O. Box 58
	 	 	Wellsboro, PA 16901

 

    	-5-

    	 

    

 

	 	(b)	If to Indemnitee, to:
	 	 	Shelley L. D’Haene
	 	 	471 Bailey Hill Road
	 	 	Lawrenceville, PA 16929

 

or to such other or further address as shall
be designated from time to time by the Indemnitee or the Company to the other.

 

17.         Termination.
This Agreement may be terminated by either party upon not less than sixty (60) days prior written notice delivered to the other
party, but such termination shall not in any way diminish the obligations of Company hereunder with respect to the Indemnitee’s
activities prior to the effective date of termination.

 

18.         Amendments
and Binding Effect. This Agreement and the Undertaking and the rights and duties of Indemnitee and the Company hereunder and
thereunder may not be amended, modified or terminated except by written instrument signed and delivered by the parties hereto.
This Agreement is and shall be binding upon and shall inure to the benefits of the parties thereto and their respective heirs,
executors, administrator, successors and assigns.

 

In
Witness Whereof, the undersigned have executed this Agreement in triplicate as of the date first above written.

 

	INDEMNITEE	 	CITIZENS & NORTHERN CORPORATION
	 	 	 	 	 
	By:	 	 	By:	Charles H. Updegraff, Jr.
	 	Shelley L. D’Haene	 	 	 
	 	 	 	 	 
	Title:	EVP – Director of Alternate Delivery Channels	 	Title:	Chairman, President, and CEO

 

    	-6-

    	 

    

 

EXHIBIT 1

 

FORM OF UNDERTAKING

 

THIS UNDERTAKING has been
entered into by ___________________ (hereinafter “Indemnitee”) pursuant to an Indemnification Agreement dated ___________
___, 20__ (the “Indemnification Agreement”), by and between Citizens & Northern
Corporation, a bank holding company registered under the Bank Holding Company Act of 1956, as amended, and a Pennsylvania
corporation (the “Company”), and Indemnitee.

 

WITNESSETH:

 

WHEREAS, pursuant to the
Indemnification Agreement, Company agreed to pay Expenses (within the meaning of the Indemnification Agreement) as and when incurred
by Indemnitee in connection with any claim against Indemnitee which is the subject of any threatened, pending, or completed action,
suit, or proceeding, whether civil, criminal, administrative or investigative, to which Indemnitee was, is, or is threatened to
be made a party by reason of facts which include Indemnitee’s being or having been a director, officer or representative
(within the meaning of the Indemnification Agreement) of the Company;

 

WHEREAS, such a claim
has arisen against Indemnitee and Indemnitee has notified Company thereof in accordance with the terms of Section 6 of the Indemnification
Agreement (hereinafter the “Proceeding”);

 

NOW, THEREFORE, Indemnitee
hereby agrees that in consideration of Company’s advance payment of Indemnitee’s Expenses incurred prior to a final
disposition of the Proceeding, Indemnitee hereby undertakes to reimburse Company for any and all Expenses paid by Company on behalf
of Indemnitee prior to a final disposition of the Proceeding in the event that Indemnitee is determined under the Applicable Document
(within the meaning of the Indemnification Agreement) or applicable law to be required to repay such amounts to the Company, provided
that if Indemnitee is entitled under the Applicable Document or applicable law to indemnification for some or a portion of such
Expenses, Indemnitee’s obligation to reimburse Company shall only be for those Expenses for which Indemnitee is determined
to be required to so repay such amounts to the Company pursuant to the Indemnification Agreement or applicable law.

 

If the Indemnitee is involved
in an administrative proceeding or action instituted by an appropriate banking agency and requests the Company to pay the Expenses
incurred before a final order is entered, the Indemnitee shall reimburse the Company for all Expenses paid by the Company if a
final order is entered (i) assessing civil money penalties; (ii) removing Indemnitee from office or prohibiting Indemnitee from
participating in the conduct of the affairs of the Company or its affiliates; or (iii) requiring Indemnitee to cease and desist
from taking any affirmative action described under the Federal Deposit Insurance Act or other applicable banking laws with respect
to the Company and its affiliates. The Indemnitee hereby agrees to reimburse the Company for Expenses which subsequently are deemed
“prohibited indemnification payments”, as defined in 12 C.F.R. § 359.1(1).

 

Further, the Indemnitee
agrees to reasonably cooperate with the Company concerning such Proceeding.

 

In
Witness Whereof, the undersigned has set his hand this _____ day of ______________, 20__.

 

	 	INDEMNITEE
	 	 
	 	The Form Provided for Informational Purposes Only 
	 	(In the event this form is needed, a blank to be signed and returned will be provided upon request.)

 

    	-7-

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