Document:

EX-4.4

 EXHIBIT 4.4 

NATIONAL PENN BANCSHARES, INC. 

LONG-TERM INCENTIVE COMPENSATION PLAN 

(As adopted October 27, 2004, 

subject to shareholder approval) 

ARTICLE 1. ESTABLISHMENT, PURPOSE, AND DURATION 

1.1 Establishment of the Plan. 
 On October 27, 2004, the
Board of Directors of National Penn Bancshares, Inc. (the “Company”) adopted, subject to the approval of shareholders, this incentive compensation plan known as the “National Penn Bancshares, Inc. Long-Term Incentive Compensation
Plan” (the “Plan”) which permits the grant of long-term incentive and other stock and cash awards. If approved by shareholders, the Plan would replace the National Penn Bancshares, Inc. Officers’ and Key Employees’ Stock
Compensation Plan and no further awards would be made under that plan. The Plan would also replace the National Penn Bancshares, Inc. Non-Employee Directors’ Stock Option Plan which expired in January 2004. 

1.2 Purpose of the Plan. 
 The purpose of the Plan is to promote
the success of the Company and its Subsidiaries by providing incentives to Employees and Directors of the Company and its Subsidiaries that will link their personal interests to the financial success of the Company and its Subsidiaries and to growth
in shareholder value. The Plan is designed to provide flexibility to the Company and its Subsidiaries in their ability to attract, motivate and retain the services of Employees and Directors upon whose judgment, interest, and special effort the
successful conduct of business operations is largely dependent. 
 1.3 Duration of the Plan. 

The Plan shall be effective as of December 1, 2004 (the “Effective Date”) if it is approved by the Company’s shareholders at the annual
meeting of shareholders to be held in 2005, and shall remain in effect, subject to the right of the Board of Directors to terminate the Plan at any time, until all Awards granted under the Plan shall have been paid or otherwise disposed of in
accordance with the provisions of the Plan. In no event may an Award be granted under the Plan on or after December 1, 2014. 

 ARTICLE 2. DEFINITIONS AND CONSTRUCTION 

2.1 Definitions. 
 Whenever used in the Plan, the following
capitalized terms shall have the meanings set forth in this Section 2.1: 
 (a) “Award” means and includes, without limitation, Options,
Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Dividend or Dividend Equivalent Rights, Stock Awards, Cash Awards or Other Incentive Awards, whether granted on a stand-alone, combination or
tandem basis, as described in or granted under the Plan. 
 (b) “Award Agreement” means the agreement or other writing (which may be framed as a
plan or program) that sets forth the terms and conditions of an Award, including any amendment or modification of an Award Agreement. 
 (c)
“Beneficial Ownership” shall be determined as provided in Rule 13d-3 under the Exchange Act or any successor rule. 
 (d) “Board”
or “Board of Directors” means the Board of Directors of the Company. 
 (e) “Cash Award” has the meaning specified in
Section 10.1(d). 
 (f) “Cause” means any of the following: 

(i) An Employee’s conviction of, or plea of guilty or nolo contendere to, a felony or a crime of falsehood or involving moral turpitude; or 

(ii) The willful failure by an Employee to substantially perform his or her duties to the Company or any Subsidiary which is his or her employer at any
particular time, other than a failure resulting from the Employee’s incapacity as a result of Disability, which willful failure results in demonstrable material injury and damage to the Company or the Subsidiary employer. Notwithstanding the
foregoing, an Employee’s employment shall not be deemed to have been terminated for Cause if such termination took place as a result of: 
 (x)
Questionable judgment on the part of the Employee; 
 (y) Any act or omission believed by the Employee in good faith to have been in or not opposed to the
best interests of the Company or Subsidiary which is his or her employer at the time; or 

 (z) Any act or omission in respect of which a determination could properly be made that the Employee met the
applicable standard of conduct prescribed for indemnification or reimbursement or payment of expenses under the By-laws of the Company or the laws of the Commonwealth of Pennsylvania, or the directors and officers’ liability insurance of the
Company or any Subsidiary which is the Employee’s employer at the time of such act or omission, in each case as in effect at the time of such act or omission. 

(g) “Change in Control” means any of the following events: 

(i) An acquisition by any Person of Beneficial Ownership of securities of the Company representing 24.99% or more of the combined voting power of the
Company’s securities then outstanding; 
 (ii) A merger, consolidation or other reorganization of the Company’s principal banking subsidiary,
National Penn Bank, except where the resulting entity is controlled, directly or indirectly, by the Company; 
 (iii) A merger, consolidation or other
reorganization of the Company, except where shareholders of the Company immediately prior to consummation of any such transaction continue to hold at least a majority of the voting power of the outstanding voting securities of the legal entity
resulting from or existing after any transaction and a majority of the members of the Board of Directors of the legal entity resulting from or existing after any such transaction are former members of the Company’s Board of Directors; 

(iv) A sale, exchange, transfer or other disposition of substantially all of the assets of the Company or any other corporation which is included in a
“controlled group of corporations” including the Company (as determined under Code Section 1563) to another entity, except to an entity controlled, directly or indirectly, by the Company; 

(v) A sale, exchange, transfer or other disposition of substantially all of the assets of the Company to another entity, or a corporate division involving the
Company; or 
 (vi) A contested proxy solicitation of the shareholders of the Company that results in the contesting party obtaining the ability to cast 25%
or more of the votes entitled to be cast in an election of directors of the Company. 
 (h) “Code” means the Internal Revenue Code of 1986, as
amended from time to time. 

 (i) “Committee” means the Compensation Committee of the Board of Directors (or any successor committee
designated by the Board of Directors to administer the Plan). The Committee shall be appointed by the Board, shall consist of three or more outside, independent members of the Board, and in the judgment of the Board, shall be qualified to administer
the Plan: 
 (i) As “non-employee directors” under Rule 16b-3(b)(3) under the Exchange Act (or any successor rule); 

(ii) As “outside directors” under Section 162(m) of the Code and the regulations thereunder (or any successor Section and regulations); and

 (iii) Under all applicable rules and regulations of Nasdaq or any stock exchange on which the Stock may be traded. 

The Board may, at any time and in its complete discretion, remove any member of the Committee and may fill any vacancy in the Committee. 

(j) “Company” means National Penn Bancshares, Inc., a Pennsylvania corporation, or any successor thereto as provided in Article 17. 

(k) “Covered Employee” means any Participant who is or may be a “covered employee” within the meaning of Section 162(m)(3) of the
Code in the year in which an Award becomes taxable to such Participant. 
 (l) “Director” means a director of the Company or a Subsidiary. 

(m) “Disability” means a permanent and total disability as defined in Section 22(e)(3) of the Code (or any successor Section). 

(n) “Dividend or Dividend Equivalent Right” has the meaning specified in Section 10.1(a). 

(o) “Effective Date” means December 1, 2004 if the Plan is approved by the Company’s shareholders at the 2005 annual meeting of
shareholders. 
 (p) “Employee” means an employee of the Company or any of its Subsidiaries, including an employee who is an officer or a
Director. 
 (q) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time. 

 (r) “Fair Market Value” on or as of any date shall be determined as follows, unless a different method
of calculation is required by applicable law: 
 (i) Based on the closing sale price of a share of Stock on the given date, as reported on Nasdaq (or on
such other stock exchange on which the Stock may be listed); 
 (ii) If no closing sale price is reported on the given date, then based on the closing sale
price of a share of Stock on the next preceding date on which there was a sale, as reported on Nasdaq (or on such other stock exchange on which the Stock may be listed); or 

(iii) If the Stock is not listed on Nasdaq or on a stock exchange, by the Committee in its sole discretion. 

(s) “Incentive Stock Option” or “ISO” means an option to purchase shares of Stock, granted under Article 6, which is designated as an
incentive stock option and is intended to meet the requirements of Section 422 of the Code (or any successor Section). 
 (t) “Nasdaq” means
the National Market tier of The Nasdaq Stock Market operated by the National Association of Securities Dealers, Inc. 
 (u) “Nonqualified Stock
Option” or “NQSO” means an option to purchase Stock, granted under Article 6, which is not intended to be an Incentive Stock Option. 
 (v)
“Option” means an Incentive Stock Option or a Nonqualified Stock Option. 
 (w) “Other Incentive Award” has the meaning specified in
Section 10.1. 
 (x) “Participant” means an Employee or a Director who has been granted an Award under the Plan. 

(y) “Performance Goal” has the meaning specified in Section 9.8. 

(z) “Performance Period” means a period of time, not less than two years, determined in advance by the Committee in which performance will be
measured against Performance Goals. Performance Periods may vary or overlap in duration. 
 (aa) “Performance Share” means an Award representing
the right to receive a payment equal to the value of a performance share, granted to a Participant pursuant to Article 9. 
 (bb) “Performance
Unit” means an Award representing the right to receive a payment based on the value of a performance unit, granted to a Participant pursuant to Article 9. 

 (cc) “Permitted Transferee” means, with respect to a Participant, any of the following: 

(i) Any child, stepchild, grandchild, parent, step-parent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships; 
 (ii) A trust in which these persons and/or the
Participant (collectively at the time of the transfer) have more than 50% of the beneficial interests (taking into account both current and remainder interests); 

(iii) A foundation in which these persons and/or the Participant (collectively at the time of the transfer) control the management of assets; and 

(iv) Any other entity in which these persons and/or the Participant (collectively at the time of the transfer) own more than 50% of the voting interests. 

(dd) “Person” has the meaning given to that term in Sections 13(d) and 14(d) of the Exchange Act, including a “group” as defined
in Section 13(d). 
 (ee) “Plan” means this National Penn Bancshares, Inc. Long-Term Incentive Compensation Plan, as it may from time to time
be amended. 
 (ff) “Predecessor Plan” means the National Penn Bancshares, Inc. Officers’ and Key Employees’ Stock Compensation Plan, as
from time to time amended. 
 (gg) “Previously-Acquired Shares” means shares of Stock acquired by the Participant or any beneficiary of a
Participant, which shares have been held for a period of not less than six months or such longer or shorter period as the Committee may require or permit. 

(hh) “Restricted Period” means a period of time during which the transfer of shares of Restricted Stock or receipt of shares attributable to a
Restricted Stock Unit is restricted, during which period the Participant is subject to a substantial risk of forfeiture, pursuant to Article 8. 
 (ii)
“Restricted Stock” means an Award of Stock granted to a Participant pursuant to Article 8. 
 (jj) “Restricted Stock Unit” means an
award representing a right to receive a payment equal to the value of a Share, granted to a Participant pursuant to Article 8. 

 (kk) “Retirement” means, except to the extent otherwise provided by the Committee in the an Award
Agreement or any amendment or modification of an Award Agreement: 
 (i) In the case of an Employee, termination of employment for any reason (other than by
the Company or a Subsidiary for Cause) on or after attaining age 55 and having been employed by the Company and/or a Subsidiary for ten or more years or otherwise after becoming a “pension benefit eligible retiree” as defined in the
Company’s defined benefit pension plan; and 
 (ii) In the case of a Director, termination of service as a Director; provided, however, that if a
Company Director resigns prior to reaching the age for mandatory retirement under the bylaws of the Company or a Subsidiary Director resigns prior to reaching the age for mandatory retirement under the bylaws of such Subsidiary, such resignation
shall not constitute “Retirement”. 
 (ll) “Rule 16b-3” means Rule 16b-3 under the Exchange Act (or any successor rule). 

(mm) “Stock” means the common stock without par value of the Company. 

(nn) “Stock Appreciation Right” or “SAR” means an Award, granted to a Participant pursuant to Article 7. 

(oo) “Stock Award” has the meaning specified in Section 10.1(b). 

(pp) “Subsidiary” means any corporation that is a subsidiary corporation of the Company, as that term is defined in Section 424(f) of the Code
(or any successor Section). 
 2.2 Gender and Number. 
 Except
where otherwise indicated by the context, any masculine term used also shall include the feminine, the plural shall include the singular, and vice versa. 

2.3 Severability. 
 If any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

ARTICLE 3. ADMINISTRATION 
 3.1 Authority of the Committee. 

The Plan shall be administered by the Committee. Subject to the provisions of the Plan, the Committee shall have all powers vested in it by the term of the
Plan, such powers to include the authority to: 
 (a) Select the persons to be granted Awards under the Plan; 

 (b) Determine the terms, conditions, type and amount of Awards to be made to each person selected; 

(c) Determine the time when Awards are to be made and any conditions which must be satisfied before an Award is made; 

(d) Establish objectives and conditions for earning Awards; 

(e) Determine the terms of each Award Agreement and any amendment or modification of any Award Agreement (which shall not be inconsistent with the Plan); 

(f) Determine whether the conditions for earning an Award have been met and whether an Award will be paid at the end of a Performance Period; 

(g) Determine if and when an Award may be deferred; 
 (h)
Determine whether the amount or payment of an Award should be reduced or eliminated; and 
 (i) Determine the guidelines and/or procedures for the payment
or exercise of Awards. 
 Notwithstanding the foregoing, no action of the Committee (other than pursuant to Section 4.2 or Section 9.4) may,
without the consent of the person or persons entitled to exercise any outstanding Option or Stock Appreciation Right or to receive payment of any other outstanding Award, adversely affect the rights of such person or persons with respect to such
Awards. 
 3.2 Decisions Binding. 
 The Committee shall have
full power and authority to administer and interpret the Plan and to adopt or establish such rules, regulations, agreements, guidelines, procedures and instruments, which are not contrary to the terms of the Plan and which, in its opinion, may be
necessary or advisable for the administration and operation of the Plan. All determinations and decisions made by the Committee pursuant to the provisions of the Plan and all related orders or resolutions of the Board of Directors shall be final,
conclusive and binding on all persons, including the Company and its Subsidiaries, its shareholders, employees, and Participants and their estates and beneficiaries, and such determinations and decisions shall not be reviewable. 

 3.3 Delegation of Certain Responsibilities. 

The Committee may, subject to the terms of the Plan and applicable law, appoint such agents as it deems necessary or advisable for the proper administration of
the Plan under this Article 3; provided, however, that the Committee may not delegate its authority to grant Awards under the Plan or to correct errors, omissions or inconsistencies in the Plan except as set forth in this Section 3.3. The
Committee may delegate to the Company’s Chief Executive Officer or to other officers of the Company its authority under this Article 3, provided that such delegation shall not extend to the grant of Awards or the exercise of discretion with
respect to Awards to Employees who, at the time of such action, are (a) Covered Employees or (b) officers of the Company or its Subsidiaries who are subject to the reporting requirements of Section 16(a) of the Exchange Act. All
authority delegated by the Committee under this Section 3.3 shall be exercised in accordance with the provisions of the Plan and any guidelines for the exercise of such authority that may be established by the Committee from time to time. 

3.4 Procedures of the Committee. 
 Except as may otherwise be
provided in the charter or similar governing document applicable to the Committee: 
 (a) All determinations of the Committee shall be made by not less than
a majority of its members present at the meeting (in person or otherwise) at which a quorum is present; 
 (b) A majority of the entire Committee shall
constitute a quorum for the transaction of business; and 
 (c) Any action required or permitted to be taken at a meeting of the Committee may be taken
without a meeting if a unanimous written consent, which sets forth the action, is signed by each member of the Committee and filed with the minutes for proceedings of the Committee. 

Service on the Committee shall constitute service as a Director of the Company so that members of the Committee shall be entitled to indemnification,
limitation of liability and reimbursement of expenses with respect to their services as members of the Committee to the same extent that they are entitled under the Company’s Articles of Incorporation and Bylaws, as amended from time to time,
and Pennsylvania law for their services as Directors of the Company. 

 3.5 Award Agreements. 

Each Award under the Plan shall be evidenced by an Award Agreement which shall be signed by an authorized officer of the Company and, if required, by the
Participant, and shall contain such terms and conditions as may be authorized or approved by the Committee. Such terms and conditions need not be the same in all cases. 

3.6 Rule 16b-3 Requirements. 
 Notwithstanding any other
provision of the Plan, the Committee may impose such conditions on any Award (including, without limitation, the right of the Board or the Committee to limit the time of exercise to specified periods) as may be required to satisfy the requirements
of Rule 16b-3. 
 ARTICLE 4. STOCK SUBJECT TO THE PLAN 
 4.1
Number of Shares. 
 (a) Subject to adjustment as provided in Section 4.2, the total number of shares of Stock subject to Awards under the Plan shall be
four million (4,000,000) shares. Shares remaining available for awards under the Predecessor Plan as of the Effective Date shall not be awarded or increase the total number of shares authorized for delivery under the Plan. Stock delivered under
the Plan may consist, in whole or in part, of authorized and unissued shares or treasury shares. 
 (b) To the extent that shares of Stock subject to an
outstanding Award are not issued by reason of: 
 (i) The forfeiture, termination, surrender, cancellation or expiration while unexercised of such award;

 (ii) The tendering (by either actual delivery or by attestation if permitted by the Committee) or withholding of shares of Stock to pay all or a portion
of the purchase price or to satisfy all or a portion of the tax withholding obligations relating to an Award; 
 (iii) The settlement in cash in lieu of
Stock or settlement in a manner such that some or all of the shares of Stock covered by the Award are not issued to a Participant; or 
 (iv) An exchange
for a grant under the Plan that does not involve Stock; 

 Such shares of Stock shall immediately again be available for Awards under the Plan. The Committee may from time
to time adopt and observe such procedures concerning the counting of shares against the Plan maximum, as it may deem appropriate. 
 (c) Shares of Stock
issued in connection with awards that are assumed, converted or substituted for pursuant to a merger, acquisition or similar transaction entered into by the Company or any of its Subsidiaries shall not reduce the number of shares available for
Awards under the Plan. 
 (d) Subject to adjustment as provided in Section 4.2, the following limitations shall apply to Awards under the Plan: 

(i) All shares of Stock that may be issued under the Plan may be issued pursuant to SARS or Options, and all Options may be ISOs. 

(ii) With respect to Awards other than SARs and Options, not more than 30 percent of the total number of shares of Stock that may be issued under the Plan may
be issued pursuant to such other Awards. 
 (iii) The maximum number of shares of Stock that may be covered by Awards granted under the Plan to any single
Participant shall be 250,000 shares during any one calendar year. For purposes of applying the limitations set forth in this paragraph (iii), if an Award, including without limitation Options, SARs, Restricted Stock, Restricted Stock Units and
Performance Shares, is denominated in shares of Stock or the amount of the payment to be made thereunder shall be determined by reference to the value of shares of Stock, then such Award shall be counted in the year the Award is granted as covering
the number of shares set forth in the Award. If an Award is granted in tandem with a SAR so that the exercise of the Award right or SAR with respect to a share of Stock cancels the tandem SAR or Award right, respectively, with respect to such share,
the tandem Award right and SAR with respect to each share of Stock shall be counted as covering but one share of Stock for purposes of applying the limitations of this paragraph (iii). 

4.2 Adjustments in Authorized Shares. 
 If any merger,
reorganization, consolidation, recapitalization, separation, liquidation, Stock dividend, split-up, share combination, or other change in the corporate structure of the Company affecting the Stock shall occur, such adjustment shall be made in the
number of shares of Stock set forth in Section 4.1(a), in the number of shares of Stock set forth in Section 4.1(d)(iii), and in the number and class of and/or price of shares subject to outstanding Awards granted under the Plan, as may be
determined to be appropriate and equitable by the Committee, in its sole discretion, to prevent dilution or enlargement of rights, and provided that the number of shares subject to any Award shall always be a whole number. Any adjustment of an
Incentive 

 Stock Option under this Section shall be made in such a manner so as not to constitute a modification within the
meaning of Section 424(h)(3) of the Code. 
 ARTICLE 5. ELIGIBILITY AND PARTICIPATION 

5.1 Eligibility. 
 Persons eligible to participate in the Plan
include all Employees and Directors. 
 5.2 Actual Participation. 

Subject to the provisions of the Plan, the Committee may from time to time select those Employees and Directors to whom Awards shall be granted and determine
the nature and amount of each Award. 
 ARTICLE 6. OPTIONS 

6.1 Grant of Options. 
 Subject to the terms and conditions of the
Plan, the Committee, at any time and from time to time, may grant Options to such Employees and/or Directors in such amounts and on such terms and conditions as it shall determine. The Committee shall have the sole discretion, subject to the
requirements of the Plan, to determine the actual number of shares of Stock subject to Options granted to any Participant. The Committee may grant any type of Option to purchase Stock that is permitted by law at the time of grant including, without
limitation, ISOs and NQSOs. Only Employees may receive an Award of ISOs. 
 6.2 Option Award Agreement. 

Each Option grant shall be evidenced by an Award Agreement that shall specify the type of Option granted, the Option price, the duration of the Option, the
number of shares of Stock covered by the Option, the vesting schedule by which the Option becomes exercisable, and such other provisions as the Committee shall determine. Unless the Option Agreement shall specify that the Option is intended to be an
Incentive Stock Option, the Option shall be a Nonqualified Stock Option. 
 6.3 Option Price. 

The exercise price per share of Stock covered by an Option shall be determined by the Committee but shall not be less than 100% of Fair Market Value on the
date the Option is granted. Notwithstanding the authority granted to the Committee pursuant to Section 3.1 of the Plan, once an Option is granted, the Committee shall have no authority to reduce the Option exercise price, nor may any Option be
surrendered to the Company as consideration for the grant of a new Option with a lower exercise price without the approval of the Company’s shareholders, except under Section 4.2 of the Plan. 

 6.4 Duration of Options. 

Each Option shall expire at such time as the Committee shall determine in the Award Agreement; provided, however, no ISO shall be exercisable later than ten
years after the date of its grant, and no NQSO shall be exercisable later than ten years and one month after the date of its grant. 
 6.5 Exercise of
Options. 
 Options shall vest and be exercisable at such times and be subject to such restrictions and conditions as provided in the Award Agreement, which
need not be the same for all Participants; provided, however, that no Option shall vest in whole or in part before one year from the date of grant or later than five years from the date of grant. 

6.6 Payment. 
 Options shall be exercised by the delivery of a
written notice to the Company setting forth the number of shares of Stock with respect to which the Option is being exercised, accompanied by full payment of the Option exercise price for such shares. Full payment shall be made: 

(a) In cash or its equivalent, including, without limitation, delivery of a properly completed exercise notice, together with irrevocable instructions to a
broker to deliver promptly to the Company the amount of sale proceeds from the sale of the shares subject to the Option exercise or to deliver loan proceeds from such broker to pay the Option exercise price and any withholding taxes due; 

(b) By delivery (or deemed delivery through attestation if permitted by the Committee) of Previously-Acquired Shares having a Fair Market Value at the time of
exercise equal to the total Option exercise price; 
 (c) By having the Company withhold from delivery shares of Stock having a Fair Market Value on the
date the Option is exercised equal to the total Option exercise price, if permitted by the Committee; 
 (d) By such other methods as the Committee deems
appropriate; or 
 (e) By a combination of (a), (b), (c) or (d). 

As soon as practicable after receipt of written notification and payment, the Company shall deliver to the Participant certificates representing the shares of
Stock purchased by the Option exercise, issued in the Participant’s name (unless the Participant shall elect to have such shares registered as book-entry shares). 

 6.7 Restrictions on Stock Transferability. 

The Committee may impose such restrictions on any shares of Stock acquired pursuant to the exercise of an Option as it may deem advisable, including, without
limitation, restrictions under applicable Federal or state securities laws, under the requirements of Nasdaq or any stock exchange upon which the Stock is then listed, or such restrictions as are referred to in Section 13.7. 

6.8 Special Provisions Applicable to ISOs. 
 To the extent
provided or required under Section 422 of the Code or regulations thereunder (or any successor Section or regulations), an Award of Incentive Stock Options shall be subject to the following: 

(a) If the total Fair Market Value of the shares of Stock (determined at the time the Options are exercised) subject to ISOs held by a Participant that first
become exercisable during any calendar year exceeds $100,000 (or such other amount as shall then be the maximum allowable under the Code for ISO treatment of such Options), then the portion of such ISOs equal to such excess shall be NQSOs. 

(b) An Incentive Stock Option granted to an Employee who, at the time of grant, owns (within the meaning of Section 424(d) of the Code) shares of Stock
possessing more than 10% of the total combined voting power of all classes of stock of the Company, shall have an exercise price which is at least 110% of Fair Market Value. 

(c) No ISO granted to an Employee who, at the time of grant, owns (within the meaning of Section 424(d) of the Code) shares of Stock possessing more than
10% of the total combined voting power of all classes of stock of the Company, shall be exercisable later than five years after the date of its grant. 

6.9 Termination of Employment or Service. 
 The disposition of
Options held by a Participant at the time of termination of employment or termination of service as a Director shall be determined in accordance with Article 11. 

6.10 Transferability of Options. 
 (a) Except as provided in this
Section 6.10 or as the Committee may permit, no Option granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by Will or by the laws of descent and distribution. All Options
granted to a Participant shall be exercisable during the Participant’s lifetime only by the Participant. 

 (b) Notwithstanding the foregoing, a Participant may transfer and assign the Participant’s rights and
interests in a NQSO to a Permitted Transferee, including the right to exercise such Option, provided that: 
 (i) The transfer does not result in the
reacquisition of such Option by the Company or any Subsidiary, other than in a fiduciary capacity; 
 (ii) The transfer is for no value or other
consideration except as is permitted by General Instruction 1(a)(5) of SEC Form S-8; 
 (iii) The transferred Option covers at least 1,000 shares of Stock;

 (iv) The Participant concurrently pays to the Company such administrative fee with respect to the transfer as the Committee shall then require to be
paid; and 
 (v) All other terms and conditions of such Option, including those conditions related to the Participant’s employment, remain in effect.

 (c) Any such transfer shall only be effective upon receipt by the Committee, or its delegate, of an acceptable written notice of transfer in such form as
the Committee may require. The Committee may impose such additional restrictions and requirements on transferability as it may deem appropriate, necessary or advisable, including without limitation requiring satisfactory written undertakings from
the Participant with regard to payment of required tax withholdings at the time of exercise of the transferred Option. The Committee may also establish such operational procedures regarding transferability, as it may deem appropriate, necessary, or
advisable. 
 ARTICLE 7. STOCK APPRECIATION RIGHTS 
 7.1 Grant
of Stock Appreciation Rights. 
 Subject to the terms and conditions of the Plan, the Committee, at any time and from time to time, may grant Stock
Appreciation Rights to such Employees and/or Directors in such amounts and on such terms and conditions as it shall determine. The Committee shall have the sole discretion, subject to the requirements of the Plan, to determine the actual number of
shares of Stock subject to SARs granted to any Participant. 
 7.2 Exercise of SARs. 

SARs may be exercised upon whatever terms and conditions the Committee, in its sole discretion, imposes upon the SARs, which may include, but are not limited
to, a corresponding proportional reduction in Options or other Awards granted in tandem with such SARs. 

 7.3 Payment of SAR Amount. 

Upon exercise of a SAR, the holder shall be entitled to receive payment of an amount determined by multiplying: 

(a) The difference between the Fair Market Value of a share of Stock on the date of exercise and the price fixed by the Committee at the date of grant (which
price shall not be less than 100% of the Fair Market Value of a share of Stock on the date of grant); by 
 (b) The number of shares of Stock with respect
to which the SAR is exercised. 
 7.4 Form of Payment. 

Payment to a Participant of the amount due upon exercise of a SAR will be made in shares of Stock having a Fair Market Value as of the date of exercise equal
to the amount determined under Section 7.3, unless the Committee otherwise provides for payment in cash in the applicable Award Agreement or any amendment or modification of the Award Agreement. 

7.5 Duration of SAR. 
 Each SAR shall expire at such time as the
Committee shall determine in the Award Agreement; provided, however, that no SAR shall be exercisable later than the ten years after the date of its grant. 

7.6 Termination of Employment or Service. 
 The disposition of
SARs held by a Participant at the time of termination of employment or service as a Director shall be determined in accordance with Article 11. 
 7.7
Non-Transferability of SARs. 
 Except as may be permitted by the Committee in the Award Agreement or any amendment or modification of such Award Agreement,
no SAR granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by Will or by the laws of descent and distribution. All SARs granted to a Participant under the Plan shall be exercisable
during the Participant’s lifetime only by the Participant. 

 ARTICLE 8. RESTRICTED STOCK AND RESTRICTED STOCK UNITS 

8.1 Grant of Restricted Stock and Restricted Stock Units. 

Subject to the terms and conditions of the Plan, the Committee, at any time and from time to time, may grant shares of Restricted Stock and Restricted Stock
Units to such Employees and/or Directors in such amounts and on such terms and conditions as it shall determine. 
 8.2 Restrictions on Transfer. 

Except as otherwise provided in this Article 8, shares of Restricted Stock and Restricted Stock Units may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated until the termination of the applicable Restricted Period or for such period of time as shall be established by the Committee and as shall be specified in the Award Agreement, or upon earlier satisfaction of other
conditions (which may include the attainment of Performance Goals) as specified by the Committee in its sole discretion and set forth in the Award Agreement. All rights with respect to Restricted Stock or Restricted Stock Units granted to a
Participant shall be exercisable during the Participant’s lifetime only by the Participant. 
 8.3 Other Restrictions. 

The Committee may impose such other restrictions on any shares of Restricted Stock or Restricted Stock Units as it may deem advisable. The Committee may place
restrictive legends on certificates representing shares of Restricted Stock and/or record stop transfer orders with respect to such shares to give appropriate notice of such restrictions. 

8.4 End of Restricted Period. 
 Except as otherwise provided in
this Article 8, after the last day of a Restricted Period, shares of Restricted Stock covered by such Restricted Period shall become freely transferable by the Participant, and the Participant shall be entitled to receive one share of Stock with
respect to each Restricted Stock Unit covered by such Restricted Period. Once the shares are released from the restrictions, the Participant shall be entitled to have any restrictive legend removed from the certificates and any stop transfer order
regarding such shares cancelled. If delivery of the shares is to be made on a deferred basis pursuant to Section 13.6, the Committee shall provide for the crediting or payment of Dividend Equivalents during the deferral period. 

 8.5 Voting Rights. 

During the Restricted Period, Participants holding shares of Restricted Stock may exercise full voting rights with respect to those shares, unless otherwise
specified in the applicable Award Agreement. 
 8.6 Dividends and Other Distributions. 

During the Restricted Period, Participants holding shares of Restricted Stock or Restricted Stock Units shall be entitled to receive all dividends and other
distributions paid with respect to those shares while they are so held, unless otherwise specified by the Committee in the applicable Award Agreement. If any such dividends or distributions are paid in shares of Stock, the shares or, if applicable,
Restricted Stock Units equal to the number of such shares, shall be subject to the same restrictions on transfer as the shares of Restricted Stock or Restricted Stock Units with respect to which they were paid. 

8.7 Termination of Employment or Service. 
 The disposition of
shares of Restricted Stock and/or Restricted Stock Units held by a Participant at the time of termination of employment or termination of service as a Director shall be determined in accordance with Article 11. 

ARTICLE 9. PERFORMANCE UNITS AND PERFORMANCE SHARES 
 9.1 Grant
of Performance Units or Performance Shares. 
 Subject to the terms and conditions of the Plan, the Committee, at any time and from time to time, may grant
Performance Units or Performance Shares to such Employees and/or Directors in such amounts and on such terms and conditions as it shall determine. The Committee shall have complete discretion in determining the number of Performance Units or
Performance Shares granted to each Participant and the terms and conditions of such Awards, except that the maximum dollar amount of Performance Units that may be granted to any single Participant shall be $500,000 during any one calendar year. 

9.2 Value of Performance Units and Performance Shares. 
 The
Committee shall set Performance Goals over Performance Periods determined in advance by the Committee. Prior to each grant of Performance Units or Performance Shares, the Committee shall establish an initial value for each Performance Unit and an
initial number of shares of Stock for each Performance Share granted to each Participant for that Performance Period. Prior to each grant of Performance Units or Performance Shares, the Committee also shall set the 

 Performance Goals that will be used to determine the extent to which the Participant receives a payment of the
value of the Performance Units or number of shares of Stock for the Performance Shares awarded for such Performance Period. These goals will be based on the attainment, by the Company or its Subsidiaries, of one or more certain performance criteria
and objectives described in Section 9.8. With respect to each such performance measure utilized during a Performance Period, the Committee shall assign percentages to various levels of performance, which shall be applied to determine the extent
to which the Participant shall receive a payout of the values of Performance Units and number of Performance Shares awarded. 
 9.3 Payment of Performance
Units and Performance Shares. 
 After a Performance Period has ended, the holder of a Performance Unit or Performance Share shall be entitled to receive its
value as determined by the Committee. The Committee shall make this determination by first determining the extent to which the Performance Goals set pursuant to Section 9.2 have been met. It will then determine the applicable percentage to be
applied to, and will apply such percentage to, the value of Performance Units or number of Performance Shares to determine the payout to be received by the Participant. In addition, with respect to Performance Units and Performance Shares granted to
any Covered Employee, no payout shall be made except upon written certification by the Committee that the applicable performance Goal or Goals have been satisfied to a particular extent. 

9.4 Committee Discretion to Adjust Awards. 
 Subject to
limitations applicable to payments to Covered Employees, the Committee shall have the authority to modify, amend or adjust the terms and conditions of any Award of Performance Units or Performance Shares, at any time or from time to time, including,
without limitation, the Performance Goals. 
 9.5 Form and Timing of Payment. 

The payment described in Section 9.3 shall be made in cash, Stock, or a combination of cash and Stock as determined by the Committee. Payment may be made
in a lump sum or installments as prescribed by the Committee. If any payment is to be made on a deferred basis pursuant to Section 13.6, the Committee shall provide for the crediting or payment of Dividend Equivalents or interest during the
deferral period. 
 9.6 Termination of Employment or Service. 

The disposition of Performance Shares and Performance Units held by a Participant at the time of termination of such Participant’s employment or
termination of service as a Director shall be determined in accordance with Article 11. 

 9.7 Non-Transferability. 

Performance Units and Performance Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by Will or by the
laws of descent and distribution until termination of the applicable Performance Period. All rights with respect to Performance Units and Performance Shares granted to a Participant under the Plan shall be exercisable during the Participant’s
lifetime only by the Participant. 
 9.8 Performance Goals. 

(a) For purposes of the Plan, including, without limitation, Awards of Performance Shares and Performance Units and other performance-based Awards,
“Performance Goals” means the criteria and objectives, determined by the Committee, which shall be satisfied or met during the applicable Restricted Period or Performance Period, as the case may be, as a condition to the Participant’s
receipt of shares of Stock, Restricted Stock Units, or cash with respect to such Award. 
 (b) The criteria or objectives for an Award shall be determined
by the Committee in writing; shall be measured for achievement or satisfaction during the Restricted Period or Performance Period which the Committee established for such Participant to satisfy or achieve such criteria and objectives; may be
absolute in their terms or measured against or in relationship to other companies comparably, similarly or otherwise situated or other external or internal measure; and may be based on or adjusted for any other objective goals, events, or
occurrences established by the Committee; provided, however, that such criteria and objectives relate to one or more of the following: 

total shareholder return, earnings, earnings per share, net income, revenues, expenses, market share, customer satisfaction measures, customer
profitability measures, charge-offs, loan loss reserves, non-performing assets, return on assets, return on equity, return on tangible equity, one or more operating ratios, assets, deposits, loans, asset quality levels, interest-sensitivity gap
levels, Fair Market Value, value of assets, investments, regulatory compliance, satisfactory internal or external audits, achievement of balance sheet or income statement objectives, or achievement of mergers, acquisitions or similar business
transactions. 
 (c) Performance criteria and objectives may include or exclude extraordinary charges, losses from discontinued operations, restatements and
accounting changes and other unplanned special charges such as restructuring expenses, acquisitions, acquisition expenses, including expenses related to goodwill and other intangible assets, stock offerings, stock repurchases and loan loss
provisions. Such performance criteria and objectives may be particular to a business or operating segment, line of business, Subsidiary or other unit or the Company generally, and may, but need not be, based upon a change or an increase or positive
result. 

 (d) In interpreting Plan provisions applicable to performance criteria and objectives and to performance-based
Awards to Participants who are Covered Employees, it is the intent of the Plan to conform with the standards of Section 162(m) of the Code and the regulations thereunder. The Committee in establishing performance criteria and objectives
applicable to such performance-based Awards, and in interpreting the Plan, shall be guided by such standards, including, without limitation, providing that the performance-based Award shall be paid, vested or otherwise delivered solely as a function
of attainment of objective performance criteria and objectives based on one or more of the specific criteria and objectives set forth in this Section 9.8 established by the Committee not later than 90 days after the Performance Period or
Restricted Period applicable to the Award has commenced (or, if such period of service is less than one year, not later than the date on which 25% of such period has elapsed). Prior to the payment of any compensation based on achievement of
performance criteria and objectives to any such Covered Employee, the Committee must certify in writing the extent to which the applicable performance criteria and objectives were, in fact, achieved and the amounts to be paid, vested or delivered as
a result of such achievement, provided the Committee may reduce, but not increase, such amount. 
 ARTICLE 10. OTHER INCENTIVE AWARDS 

10.1 Grant of Other Incentive Awards. 
 Subject to the terms and
conditions of the Plan, the Committee may, at any time and from time to time, grant Other Incentive Awards to such Employees and/or Directors in such amounts and on such terms and conditions as it shall determine. Other Incentive Awards include
without limitation: 
 (a) Dividend or Dividend Equivalent Right. A right to receive dividends or their equivalent in value in shares of Stock, cash or in a
combination of both, with respect to any new or previously existing Award. 
 (b) Stock Award. An unrestricted transfer of ownership of shares of Stock.

 (c) Cash Award. An award denominated in cash, subject to the achievement of Performance Goals during a Performance Period, or that may be earned under a
Company or Subsidiary bonus or incentive plan or program. 
 (d) Other Incentive Awards. Other Incentive Awards that are related to or serve a similar
function to those Awards set forth in this Section 10.1. 

 10.2 Terms of Other Incentive Awards. 

Other Incentive Awards may be made in tandem with, in replacement of, or as alternatives to, Awards under Articles 6, 7, 8 or 9 of the Plan or of any other
incentive or employee benefit plan of the Company or any of its subsidiaries. An Other Incentive Award may provide for payment in cash or in shares of Stock or a combination thereof. 

10.3 Limitations. 
 The number of shares of Stock covered by any
Other Incentive Awards granted to a Participant during a calendar year shall be taken into account for purposes of the annual limitation set forth in Section 4.1(d)(iii). The dollar amount covered by any Cash Award or Other Incentive Award
granted to a Participant during a calendar year shall be taken into account for purposes of the annual limitation set forth in Section 9.1. 
 10.4
Termination of Employment or Service. 
 The disposition of Other Incentive Awards held by a Participant at the time of termination of employment or
termination of service as a Director shall be determined in accordance with Article 11. 
 ARTICLE 11. TERMINATION OF EMPLOYMENT OR SERVICES 

11.1 Voluntary Termination, Termination for Cause, or Other Termination Not Due to Death, Disability or Retirement. 

Subject to Section 11.3, if a Participant voluntarily terminates employment not qualifying as Retirement, or if the Company or a Subsidiary terminates a
Participant’s employment for Cause, or if a Participant’s service as a Director terminates for any reason other than death, Disability or Retirement: 

(a) Each SAR and Option may be exercised on or before the earlier of the expiration date of the SAR or Option or three months following the date of
termination, except that any SAR and/or Option held by an Employee who is terminated for Cause shall immediately lapse and be cancelled; 
 (b) Any shares
of Restricted Stock or Restricted Stock Unit, still subject to restrictions as of the date of such termination, shall automatically be forfeited and returned to the Company or cancelled, as applicable; 

(c) All Performance Units and Performance Shares shall be forfeited and no payment shall be made with respect thereto; and 

 (d) No amounts shall be earned or payable under any Other Incentive Award, except as may be otherwise determined
by the Committee. 
 11.2 Involuntary Termination Not for Cause or Termination Due to Death, Disability or Retirement. 

Subject to Section 11.3, if the Company or a Subsidiary terminates a Participant’s employment not for Cause, or if a Participant’s employment or
a Participant’s service as a Director terminates due to death, Disability or Retirement: 
 (a) Each SAR and Option held by the Participant (whether or
not exercisable prior to the date of termination) may be exercised on or before the earlier of the expiration date of the SAR or Option or five years following the date of termination; 

(b) Any remaining Restricted Period applicable to shares of Restricted Stock or Restricted Stock Units under Section 8.2 shall automatically terminate,
and the shares of Restricted Stock shall thereby be free of restrictions and be fully transferable, and distribution of shares with respect to Restricted Stock Units shall occur pursuant to Section 8.4; 

(c) Each Performance Unit or Performance Share held by the Participant shall be deemed earned on a pro-rated basis and a pro-rated payment based on the
Participant’s number of full months of service during the Performance Period, further adjusted based on the achievement of the Performance Goals during the entire Performance Period, as computed by the Committee, shall be made at the time
payments are made to Participants who did not terminate service during the Performance Period; and 
 (d) No amounts shall be earned or payable under any
Other Incentive Award, except as may be otherwise determined by the Committee. 
 11.3 Effect of Termination of Employment or Service. 

The disposition of each Award held by a Participant if there is a termination of the Participant’s employment or a termination of the Participant’s
service as a Director shall be as determined by the Committee and set forth in the applicable Award Agreement or in any amendment or modification of an Award Agreement, which disposition may differ from the provisions of Sections 11.1 and 11.2. To
the extent the applicable Award Agreement or an amendment or modification of an Award Agreement does not expressly provide for such disposition, the disposition of the Award shall be determined in accordance with Sections 11.1 and 11.2. 

 ARTICLE 12. BENEFICIARY DESIGNATION 

Each Participant may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively and who may include a trustee
under a Will or living trust) to whom any benefit under the Plan is to be paid in case of the Participant’s death before receipt of any or all of such benefit. Each designation will revoke all prior designations by the same Participant, shall
be in a form prescribed by the Committee, and will be effective only when filed by the Participant in writing with the Committee during his lifetime. In the absence of any such designation or if all designated beneficiaries predecease the
Participant, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate. 
 ARTICLE 13. RIGHTS OF PARTICIPANTS

 13.1 Employment or Service. 
 Nothing in the Plan shall
interfere with or limit in any way the right of the Company or any of its Subsidiaries to terminate any Participant’s employment or service as a Director at any time, nor confer upon any Participant any right to continue in the employ or to so
serve as a Director of the Company or any of its Subsidiaries. 
 13.2 Participation. 

No Employee or Director shall have a right to be selected as a Participant, or, having been so selected one or more times, to be selected again as a
Participant. 
 13.3 No Implied Rights; Rights on Termination of Service. 

Neither the establishment of the Plan nor any amendment to the Plan shall be construed as giving any Participant, beneficiary, or any other person any legal or
equitable right unless such right shall be specifically provided for in the Plan or conferred by specific action of the Committee in accordance with the terms and conditions of the Plan. Except as expressly provided in the Plan, neither the Company
nor any of its Subsidiaries shall be required or be liable to make any payment under the Plan. 
 13.4 No Right to Company Assets. 

No Participant nor any other person shall acquire, by reason of the Plan, any right in or title to any assets, funds or property of the Company or any of its
Subsidiaries whatsoever including, without limitation, any specific funds, assets, or other property which the Company or any of its Subsidiaries, in its sole discretion, may set aside in anticipation of a liability under any Award. Any benefits
which become payable under any Award shall be paid from the general assets of the Company or the applicable Subsidiary. The Participant shall have only a contractual right to the amounts, if any, payable to the Participant, unsecured by any asset of
the Company or any of its Subsidiaries. Nothing contained in the Plan constitutes a guarantee by the Company or any of its Subsidiaries that the assets of the Company or the applicable Subsidiary shall be sufficient to pay any benefit to any person.

 13.5 Rights as Shareholder; Fractional Shares. 

Except as otherwise provided under the Plan, a Participant or Beneficiary shall have no rights as a holder of shares of Stock with respect to any Award unless
and until shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). Fractional shares shall not be issued or transferred under an Award, but the Committee may
authorize payment of cash in lieu of a fraction, or round the fraction down. To the extent the shares of Stock are uncertificated, references in the Plan to certificates shall be deemed to include references to any book-entry evidencing such shares.

 13.6 Election to Defer. 
 The receipt of payment of cash or
delivery of shares of Stock that would otherwise be due to a Participant pursuant to an Award may be deferred at the election of the Participant pursuant to any applicable deferral plan that may be established by the Company or a Subsidiary. Such
deferrals shall be made in accordance with such rules and procedures as the Committee may establish under the Plan or under the applicable deferral plan. 

13.7 Other Restrictions and Limitations. 
 The Committee may
impose such restrictions and limitations on any Awards as it may deem advisable, including, without limitation, restrictions under applicable Federal or state securities laws, under the requirements of Nasdaq or any stock exchange on which the Stock
is then listed, Stock ownership or holding period requirements, or requirements to enter into or to comply with confidentiality, non-competition and/or other restrictive or similar covenants, and may place restrictive legends on certificates
representing shares of Stock issued in connection with an Award and/or issue stop transfer orders with respect to such shares to give appropriate notice of any such restrictions. 

ARTICLE 14. CHANGE IN CONTROL 
 14.1 Stock-Based Awards. 

Notwithstanding any other provisions of the Plan, and except as otherwise provided in an Award Agreement, if there is a Change in Control, all Stock-based
Awards shall immediately vest 100% in each Participant, including Incentive Stock Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock and Restricted Stock Units. 

 14.2 Performance-Based Awards. 

Notwithstanding any other provisions of the Plan, and except as otherwise provided in an Award Agreement, if there is a Change in Control, all Awards granted
under the Plan which are subject to Performance Goals shall be immediately paid out, including Performance Units and Performance Shares. The amount of the payout shall be based on the higher of (i) the extent, as determined by the Committee, to
which Performance Goals, established for the Performance Period then in progress have been met up through and including the effective date of the Change in Control; or (ii) 100% of the value on the date of grant of the Performance Units or
number of Performance Shares. 
 ARTICLE 15. AMENDMENT, MODIFICATION, AND TERMINATION 

15.1 Amendment, Modification and Termination of Plan. 
 The Board
may terminate the Plan in whole or in part at any time. The Board may amend or modify the Plan from time to time in such respects as the Board may deem advisable in order that any Awards shall conform to any change in applicable laws or regulations
or in any other respect the Board may deem to be in the best interests of the Company; provided, however, that no such amendment or modification shall, without shareholder approval: 

(i) Except as provided in Section 4.2, increase the number of shares of Stock which may be issued under the Plan; 

(ii) Expand the types of Awards available to Participants under the Plan; 

(iii) Materially expand the class of persons eligible to participate in the Plan; 

(iv) Delete or limit the provisions in Section 6.3 prohibiting the repricing of Options or reduce the price at which shares of Stock may be offered under
Options; or 
 (v) Extend the termination date for making Awards under the Plan. 

In addition, the Plan shall not be amended without approval of such amendment by the Company’s shareholders if such amendment is required under
(1) the rules and regulations of Nasdaq or any stock exchange on which the Stock is then listed, or (2) other applicable law, rules or regulations. 

 15.2 Amendment or Modification of Awards. 

The Committee may amend or modify any outstanding Awards in any manner to the extent that the Committee would have had the authority under the Plan initially
to make such Award as so modified or amended, including, without limitation, to change the date or dates as of which Awards may be exercised, to remove the restrictions on Awards, or to modify the manner in which Awards are determined and paid. 

15.3 Effect on Outstanding Awards. 
 No amendment, modification
or termination of the Plan pursuant to Section 15.1, or amendment or modification of an Award pursuant to Section 15.2, shall materially adversely alter or impair any outstanding Award without the consent of the Participant affected
thereby. 
 ARTICLE 16. WITHHOLDING 
 16.1 Tax Withholding.

 The Company and any of its Subsidiaries shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company or any
of its Subsidiaries, an amount sufficient to satisfy Federal, state and local taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to any grant, exercise, or payment made under or as a result of the
Plan. 
 16.2 Stock Delivery or Withholding. 
 With respect to
tax withholdings required upon the exercise of Options or SARs, upon the lapse of restrictions on Restricted Stock or Restricted Stock Units, or upon any other taxable event arising as a result of Awards, Participants may elect to satisfy the
withholding requirement, in whole or in part, by having the Company withhold from delivery shares of Stock having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax which would be imposed on the
transaction (or such greater amount as the Committee may permit). All such elections shall be irrevocable, made in writing, signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole
discretion, deems appropriate. Stock withholding elections made by Participants who are subject to the short-swing profit restrictions of Section 16 of the Exchange Act must comply with any additional restrictions of Section 16 and Rule
16b-3 that may apply to such elections. 

 ARTICLE 17. SUCCESSORS 

All obligations of the Company under the Plan and under all Awards shall be binding on any successor to the Company, whether the existence of such successor is
the result of a direct or indirect purchase, merger, consolidation or other acquisition of all or substantially all of the business and/or assets of the Company. 

ARTICLE 18. GOVERNING LAW 
 18.1 Requirements of Law. The
granting of Awards and the issuance of shares of Stock under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

18.2 Governing Law. The Plan, and all Award Agreements, shall be construed in accordance with and governed by the laws of the Commonwealth of Pennsylvania.EX-4.5

 EXHIBIT 4.5 

NATIONAL PENN BANCSHARES, INC. 

KNBT BANCORP, INC. 
 SUBSTITUTE 2004
STOCK OPTION PLAN 
 As assumed, amended and restated effective February 1, 2008 

ARTICLE I 
 ESTABLISHMENT OF THE
PLAN 
 1.01 National Penn Bancshares, Inc. (“National Penn”) hereby establishes this Substitute 2004 Stock Option Plan (the
“Plan”) as required by the terms of Section 2.05 of the Agreement and Plan of Merger dated as of September 6, 2007 (the “Merger Agreement”), by and between National Penn and KNBT Bancorp, Inc. (“KNBT”), upon
the terms and conditions hereinafter stated. 
 ARTICLE II 

PURPOSE OF THE PLAN 
 2.01 Purpose. The
purpose of the KNBT Bancorp, Inc. 2004 Stock Option Plan (the “2004 KNBT Plan”) was to improve the growth and profitability of KNBT and its Subsidiaries by providing Employees and Non-Employee Directors with a proprietary interest in KNBT
as an incentive to contribute to the success of KNBT and its Subsidiaries, and to reward Employees and Non-Employee Directors for outstanding performance. 

2.02 Options Under the Plan. Incentive Stock Options and Non-Qualified Options were granted within the limitations of the Plan herein described.

 2.03 Capitalized Terms. Capitalized terms and phrases used and not otherwise defined herein shall have the meanings given in Article III
hereof. 
 ARTICLE III 

DEFINITIONS 
 The following words and phrases when
used in this Plan with an initial capital letter, unless the context clearly indicates otherwise, shall have the meanings set forth below. Wherever appropriate, the masculine pronouns shall include the feminine pronouns and the singular shall
include the plural. 
 3.01 “Advisory Director” means a person appointed to serve in such capacity by the Board of either KNBT or Keystone
Nazareth Bank & Trust Company. 
 3.02 “Beneficiary” means the person or persons designated by an Optionee to receive any benefits
payable under the 2004 KNBT Plan in the event of such Optionee’s death. Such person or persons were designated in writing on forms provided for that purpose by the KNBT Committee charged with administering the 2004 KNBT Plan and may be changed
from time to time by similar written notice to the Committee. In the absence of a written designation, the Beneficiary shall be the Optionee’s surviving spouse, if any, or if none, his or her estate. 

  
 1 

 3.03 “Board” means the Board of Directors of National Penn. 

3.04 “Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder. 

3.05 “Committee” means the Compensation Committee of the Board, which shall be comprised of, at all times, two or more directors appointed by
the Board pursuant to Article IV hereof, and each of whom shall be: (a) “non-employee directors” as such term is defined under the rules and regulations adopted from time to time by the Securities and Exchange Commission pursuant to
Section 16(b) of the Exchange Act; and (b) “outside directors” within the meaning of Section 162(m) of the Code. 

3.06 “Director” means a member of the Board of Directors of KNBT or a Subsidiary or any successors thereto, including Non-Employee Directors as
well as Officers and Employees serving as Directors. 
 3.07 “Disability” means any physical or mental impairment which (a) qualifies an
Optionee for disability benefits under the applicable long-term disability plan maintained by National Penn or a Subsidiary or (b) if no such plan applies, would qualify such Optionee for disability benefits under the long-term disability plan
maintained by National Penn, if such individual were covered by that plan, as determined in the sole discretion of the Committee. 

3.08 “Effective Date” means February 1, 2008. 

3.09 “Employee” means any person who was employed by KNBT or a Subsidiary, or was an Officer of KNBT or a Subsidiary, but not including
directors who were not also Officers of or otherwise employed by KNBT or a Subsidiary. 
 3.10 “Exchange Act” means the Securities Exchange
Act of 1934, as amended. 
 3.11 “Incentive Stock Option” means any KNBT Option which qualified as an incentive stock option within the
meaning of Section 422 of the Code. 
 3.12 “KNBT Options” means rights to acquire KNBT common stock pursuant to the 2004 KNBT Plan.

 3.13 “National Penn Common Stock” means shares of the common stock of National Penn (without par value) as described in National
Penn’s Articles of Incorporation. 
 3.14 “Non-Employee Director” means a member of the Board of Directors of KNBT or any Subsidiary,
including an Advisory Director of the Board of Directors of KNBT and/or any Subsidiary, or a former Officer or Employee of KNBT and/or any Subsidiary serving as a Director or Advisory Director, who was not then an Officer or Employee of KNBT or any
Subsidiary. 
 3.15 “Non-Qualified Option” means any KNBT Option which was not an Incentive Stock Option. 

  
 2 

 3.16 “Officer” means an Employee whose position with KNBT or a Subsidiary was that of a corporate
officer, as determined by the Board of Directors of KNBT. 
 3.17 “Options” means one of the substitute incentive stock options or substitute
non-qualified options issued pursuant to the 2004 KNBT Plan and the Merger Agreement, exercisable for a total of 1,740,055 shares of National Penn Common Stock, subject to adjustment as provided in Section 6.01 hereof. 

3.18 “Optionee” means an Employee or Non-Employee Director or former Employee or Non-Employee Director to whom a KNBT Option was granted under
the 2004 KNBT Plan. 
 3.19 “Retirement” means: 

(a) With respect to Employees, a termination of employment which constitutes a “retirement” at the “normal retirement age” or later
under the National Penn Capital Accumulation Plan or such other qualified pension benefit plan maintained by National Penn as may be designated by the Board or the Committee, or, if no such plan is applicable, which would constitute
“retirement” under the National Penn Capital Accumulation Plan, if such individual were a participant in that plan. 
 (b) With respect to
Non-Employee Directors, retirement from service on the Board of National Penn or a Subsidiary (including service on the KNBT Regional Board (as defined in the Merger Agreement)) after reaching normal retirement age as established by National Penn.

 3.20 “Subsidiaries” means, prior to the Effective Date, those subsidiaries of KNBT which met the definition of “subsidiary
corporations” set forth in Section 424(f) of the Code, and, after the Effective Date, any subsidiary corporation of National Penn within the meaning of Section 424(f) of the Code. 

ARTICLE IV 
 ASSUMPTION OF 2004
KNBT PLAN BY NATIONAL PENN 
 4.01. Assumption of the 2004 KNBT Plan by National Penn. 

 

	 	(a)	On the Effective Date, KNBT was merged with and into National Penn, with National Penn surviving such merger, under the name, articles of incorporation and bylaws of National Penn, pursuant to the Merger Agreement.

  

	 	(b)	On the Effective Date, pursuant to the Merger Agreement, each outstanding option to purchase KNBT common stock under the 2004 KNBT Plan that remained unexercised was vested pursuant to the terms of the 2004 KNBT Plan
and automatically converted into a substitute option to purchase National Penn Common Stock. 

  

	 	(c)	The number of shares subject to each substitute stock option and the exercise price for those shares were adjusted to prevent any alteration of the economic value of the original option, as measured immediately prior to
and immediately following the Effective Date. 

  
 3 

	 	(d)	Immediately prior to the Effective Date, there were Non-Qualified Options outstanding under the 2004 KNBT Plan for 837,123 shares of KNBT common stock, all of which were automatically converted into substitute options
in accordance with the provisions of Section 2.05(a) of the Merger Agreement. The number of shares of National Penn Common Stock subject to each substitute non-qualified option is equal to the number of shares of KNBT common stock
originally subject to the KNBT Option immediately prior to the Effective Date times 1.03 (the “Exchange Ratio” as defined and set forth in Section 2.02 of the Merger Agreement), rounded down to the nearest share. As a result,
Non-Qualified Options 100% vested and presently exercisable for 862,236 shares of National Penn Common Stock are outstanding. 

  

	 	(e)	Immediately prior to the Effective Date, there were Incentive Stock Options outstanding under the 2004 KNBT Plan for 852,307 shares of KNBT common stock, all of which were automatically converted into substitute options
in accordance with the provisions of Section 2.05(a) of the Merger Agreement. The number of shares of National Penn Common Stock subject to each substitute incentive stock option is equal to the number of shares of KNBT common stock
originally subject to the KNBT option immediately prior to the Effective Date times 1.03 (the “Exchange Ratio” as defined and set forth in Section 2.02 of the Merger Agreement) rounded down to the nearest share. As a result, Incentive
Stock Options 100% vested and presently exercisable for 877,819 shares of National Penn Common Stock are outstanding. 

  

	 	(f)	This Plan reflects National Penn’s assumption of the 2004 KNBT Plan and of the stock options outstanding under the 2004 KNBT Plan as of the Effective Date, on the terms and conditions provided in the Merger
Agreement, and National Penn’s determination to delete provisions of the 2004 KNBT Plan inapplicable to such outstanding options. This Plan amends and restates the 2004 Plan accordingly. 

ARTICLE V 
 ADMINISTRATION OF THE
PLAN 
 5.01. Administration. The Plan shall be administered and interpreted by the Committee. The Board may from time to time remove members
from, or add members to, the Committee. Vacancies on the Committee, howsoever caused, shall be filled by the Board. 
 5.02. Powers of the
Committee. 
 (a) The Committee shall have the authority to adopt, amend and rescind such rules, regulations and procedures as, in its opinion, may be
advisable in the administration of the Plan. The interpretation and construction by the Committee of any provisions of the Plan, any rule, regulation or procedure adopted by it pursuant thereto or of any Option shall be final and binding in the
absence of action by the Board. It may appoint one of its members to be chairman and any person, whether or not a member, to be its secretary or agent. The Committee shall report its actions and decisions to the Board at appropriate times but
in no event less than one time per calendar year. 

  
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 (b) A majority of the members of the Committee shall constitute a quorum for all purposes. The vote or
written consent of a majority of the members of the Committee on a particular matter shall constitute the act of the Committee on such matter. The Committee shall have the right to construe the Plan and the Options, to correct defects and
omissions and to reconcile inconsistencies to the extent necessary to effectuate the Plan and the Options and such action shall be final, binding and conclusive upon all parties concerned. 

(c) The Committee does not have the authority to grant any stock options under the Plan in addition to those Options set forth in Section 4.1
hereof. 
 5.03 Liability. No member of the Committee or the Board shall be liable for any act or omission (whether or not negligent) taken or
omitted in good faith, or for the exercise of any authority or discretion granted in connection with the Plan to a Committee or the Board, or for the acts or omissions of any other members of a Committee or the Board. 

ARTICLE VI 
 COMMON STOCK COVERED
BY THE PLAN 
 6.01 Option Shares. The total number of shares of National Penn Common Stock subject to Incentive Stock Options under the Plan is
877,819 shares, and the total number of National Penn Common Stock subject to Non-Qualified Options under the Plan is 862,236 shares, for a total aggregate number of 1,740,055 shares of National Penn Common Stock subject to Options under the Plan,
subject to adjustment as provided in Article VIII. Any fractional share of National Penn Common Stock resulting from the substitution of any individual KNBT Option shall be rounded down to the nearest share. 

6.02 Source of Shares. The shares of National Penn Common Stock issued under the Plan may be authorized but unissued shares, treasury shares or shares
purchased by National Penn on the open market or from private sources for use under the Plan. 
 ARTICLE VII 

TERMS AND CONDITIONS OF STOCK OPTION AWARDS 

7.01 No Further Eligible Optionees. Other than the persons who received Options on the Effective Date pursuant to the Merger Agreement, no persons
are eligible to participate in the Plan. Prior to the Effective Date, the persons eligible to participate in the 2004 KNBT Plan were Employees or Non-Employee Directors of KNBT and its Subsidiaries. 

7.02 Stock Option Agreement. Each Optionee will be notified in writing of the number of shares of National Penn Common Stock subject to and the exercise
price of each Incentive Stock Option and/or Non-Qualified Option he or she holds pursuant to the Plan. The notification will also include such other terms, conditions, restrictions and privileges as original KNBT Options contained, provided
that they are not inconsistent with the terms, conditions and provisions of this Plan. 

  
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 7.03 Option Exercise Price. 

(a) The per share exercise price of the National Penn Common Stock covered by each Non-Statutory Option is equal to the quotient of: (i) the product
of the original per share exercise price of that option times1.03 (the “Exchange Ratio” as defined and set forth in Section 2.02 of the Merger Agreement), provided that such exercise price shall be rounded up to the nearest cent. 

(b) The per share exercise price of the National Penn Common Stock covered by each Incentive Stock Option is equal to the quotient of: (i) the
product of the original per share exercise price of that option times1.03 (the “Exchange Ratio” as defined and set forth in Section 2.02 of the Merger Agreement), provided that such exercise price shall be rounded up to the nearest
cent. 
 (c) Each Incentive Stock Option shall be further adjusted as required by Sections 409A and 424 of the Code so as not to constitute a
modification, extension or renewal of that option within the meaning of Sections 409A and 424(h) of the Code. 
 7.04 Termination of Options. No
Option shall be exercisable after the first to occur of the following: 
 (a) Expiration of the Option term originally fixed by the Board of Directors
of KNBT. 
 (b) Expiration of six months from the date the Optionee’s employment with National Penn or any Subsidiary terminates for any reason
other than Disability, Retirement or death; 
 (c) Expiration of three years from the date the Optionee’s employment with National Penn or any
Subsidiary terminates by reason of the Optionee’s Disability or Retirement; 
 (d) Expiration of three years from the date the Optionee’s
service as a Non-Employee Director with National Penn or any Subsidiary terminates, including service as an Advisory Director; 
 (e) Expiration of one
year from the date the Optionee’s employment or service as a Non-Employee Director with National Penn or any Subsidiary terminates by reason of the Optionee’s death; or 

(f) Expiration of ten years from the date the KNBT Option was granted. 

7.05 Transfers. No Option granted under the Plan may be transferred except by will or by the laws of descent and distribution. During the
lifetime of the Optionee, such Option may be exercised only by him or her or his or her guardian or legal representative. Notwithstanding the foregoing, or any other provision of this Plan, an Optionee who holds Non-Qualified Options may
transfer such Options to his or her immediate family or to a duly established trust for the benefit of one or more of these individuals. For purposes hereof, “immediate family” includes but is not necessarily limited to, the
Optionee’s spouse, children (including step children), parents, grandchildren and great grandchildren. Options so transferred may thereafter be transferred only to the Optionee who originally received the grant or to an individual or trust
to whom the Optionee could have initially transferred the Option pursuant to this Section 7.05. Options which are transferred pursuant to this Section 7.05 shall be exercisable by the transferee according to the same terms and
conditions as applied to the Optionee. 

  
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 7.06 Exercise of Options. Options may be exercised in part or in whole and at one time or from time to
time. The procedures for exercise shall be set forth in the written stock option agreement delivered in connection with the substitution of each Option. 

7.07 Payment for Shares. Payment in full of the purchase price for shares of National Penn Common Stock purchased pursuant to the exercise of any Option
shall be made to National Penn upon exercise of the Option. All shares sold under the Plan shall be fully paid and nonassessable. Payment for shares may be made by the Optionee (i) in cash or by check, (ii) by delivery of a properly
executed exercise notice, together with irrevocable instructions to a broker to sell the shares and then to properly deliver to National Penn the amount of sale proceeds to pay the exercise price and any withholding taxes due, all in accordance with
applicable laws and regulations, or (iii) at the discretion of the Board or the Committee, by delivering shares of National Penn Common Stock (including shares acquired pursuant to the previous exercise of an Option) equal in fair market value
to the purchase price of the shares to be acquired pursuant to the Option, by withholding some of the shares of National Penn Common Stock which are being purchased upon exercise of an Option, or any combination of the foregoing. With respect to
subclause (iii) hereof, the shares of National Penn Common Stock delivered to pay the purchase price must have been shares of National Penn Common Stock acquired by the Optionee (or any beneficiary of an Optionee) which shares have been held
for a period of not less than six months. 
 7.08 Voting and Dividend Rights. No Optionee shall have any voting or dividend rights or other rights of a
shareholder in respect of any shares of National Penn Common Stock covered by an Option prior to the time that his or her name is recorded on National Penn’s shareholder ledger as the holder of record of such shares acquired pursuant to the
exercise of an Option. 
 ARTICLE VIII 

ADJUSTMENTS FOR CAPITAL CHANGES 

8.01 Adjustments for Capital Changes. The aggregate number of shares of National Penn Common Stock subject to Incentive Stock Options and
Non-Qualified Options under this Plan, the number of shares to which any Option relates, and the exercise price per share of National Penn Common Stock under any Option shall be proportionately adjusted for any increase or decrease in the total
number of outstanding shares of National Penn Common Stock issued subsequent to the effective date of this Plan resulting from a split, subdivision or consolidation of shares or any other capital adjustment, the payment of a stock dividend, or other
increase or decrease in such shares effected without receipt or payment of consideration by National Penn. If, upon a merger, consolidation, reorganization, liquidation, recapitalization or the like of National Penn, the shares of National
Penn’s Common Stock shall be exchanged for other securities of National Penn or of another corporation, each Option shall be converted, subject to the conditions herein stated, into the right to purchase or acquire such number of shares of
National Penn Common Stock or amount of other securities of National Penn or such other corporation as were exchangeable for the number of shares of National Penn Common Stock which such Optionee would have been entitled to purchase or acquire
except for such action, and appropriate adjustments shall be made to the per share exercise price of outstanding Options. 

  
 7 

 ARTICLE IX 

AMENDMENT AND TERMINATION OF THE PLAN 

9.01 Amendment and Termination of the Plan. The Board may, by resolution, at any time terminate or amend the Plan with respect to any shares of
National Penn Common Stock as to which Options have not been granted, subject to any required shareholder approval or any shareholder approval which the Board may deem to be advisable for any reason, such as for the purpose of obtaining or retaining
any statutory or regulatory benefits under tax, securities or other laws or satisfying any applicable stock exchange listing requirements. The Board may not, without the consent of the holder of an Option, alter or impair any Option previously
granted or awarded under this Plan except as provided by Article VIII hereof or except as specifically authorized herein. 
 Notwithstanding anything to the
contrary herein, in no event shall the Board without shareholder approval amend the Plan or shall the Board or the Committee amend an Option in any manner that effectively allows the repricing of any Option previously granted under the Plan either
through a reduction in the Exercise Price or through the cancellation and regrant of a new Option in exchange for the cancelled Option (except as permitted pursuant to Article VIII in connection with a change in National Penn’s capitalization).

 ARTICLE X 
 EMPLOYMENT RIGHTS

 10.01 No Right to Employment. Nothing contained in the Plan or in any instrument under the Plan shall create any right on the part of any
Employee or Non-Employee Director of National Penn or a Subsidiary to continue in such capacity. 
 ARTICLE XI 

WITHHOLDING 
 11.01 Tax Withholding. National
Penn may withhold from any cash payment made under this Plan sufficient amounts to cover any applicable minimum withholding and employment taxes, and if the amount of such cash payment is insufficient, National Penn may require the Optionee to pay
to National Penn the amount required to be withheld as a condition to delivering the shares acquired pursuant to an Option. National Penn also may withhold or collect amounts with respect to a disqualifying disposition of shares of National Penn
Common Stock acquired pursuant to exercise of an Incentive Stock Option. 
 11.02 Methods of Tax Withholding. The Board or the Committee is authorized
to adopt rules, regulations or procedures which provide for the satisfaction of an Optionee’s tax withholding obligation by the retention of shares of National Penn Common Stock to which the Optionee would otherwise be entitled pursuant to an
Option and/or by the Optionee’s delivery of previously owned shares of National Penn Common Stock or other property. 

  
 8 

 ARTICLE XII 

EFFECTIVE DATE OF THE PLAN; TERM 

12.01 Effective Date of the Plan. This Plan shall be effective on the Effective Date. 

12.02 Term of Plan. If not terminated by the Board at an earlier time, then, at such time as all Options outstanding under the Plan have either been
exercised, lapsed unexercised, or been terminated, forfeited or cancelled as provided herein, the Plan shall terminate. 
 ARTICLE XIII 

MISCELLANEOUS 
 13.01 Governing Law. To the
extent not governed or preempted by Federal law, this Plan document, and any agreements issued pursuant hereto, shall be construed, administered and enforced under the laws of the Commonwealth of Pennsylvania. 

  
 9

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