Document:

EX-10.1

EXHIBIT 10.1

CITIZENS & NORTHERN CORPORATION

INDEPENDENT DIRECTORS STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT

     A STOCK OPTION for a total of
                     shares of common stock, par value $1.00, of Citizens &
Northern Corporation, a Pennsylvania business corporation (herein the “Corporation”) is hereby
granted as of January 5, 2009 to
                                        
 (herein the “Director”), subject in all respects to
the terms and provisions of Citizens & Northern Corporation Independent Stock Incentive Plan
(herein the “Plan”), dated April 17, 2001, which has been adopted by the Corporation’s shareholders
and which is incorporated herein by reference. The option price as determined under paragraph 8 of
the Plan is Nineteen and 88/100 ($19.88) Dollars per share. The option is fully vested.

     This Option may not be exercised more than ten (10) years from the date of its grant, and may
be exercised during such term only in accordance with the terms of the Plan.

RESTRICTED STOCK AGREEMENT

     A total of                      shares of
RESTRICTED common STOCK, par value $1.00, of Citizens & Northern
Corporation, a Pennsylvania business corporation (herein the “Corporation”) is hereby awarded as of
January 5, 2009 to
                                        
 (herein the “Director”), subject in all respects to the terms and
provisions of Citizens & Northern Corporation Independent Stock Incentive Plan (herein the “Plan”),
dated April 17, 2001, which has been adopted by the Corporation’s shareholders and which is
incorporated herein by reference.

     These shares cannot be sold, exchanged, transferred, pledged or otherwise disposed of, except
in accordance with the Plan. These transferability restrictions will lapse as follows:                      shares
on January 5, 2010;                      shares on January 5, 2011; and
                     shares on January 5, 2012.

Provisions Applicable To Both Stock Option And

Restricted Stock Agreements

     All Awards (Options and Restricted Stock) issued under the Plan which have not fully vested
(i.e., continue to have restrictions that have not lapsed) shall automatically fully vest (i.e.,
all restrictions shall lapse) upon a change in control event as follows:

(a) If the Corporation or its stockholders execute an agreement to dispose of all or
substantially all of the Corporation’s assets or capital stock by means of sale,
merger, consolidation, reorganization, liquidation or otherwise, as a result of which
the Corporation’s stockholders as of immediately before such transaction will not own
at least fifty percent (50%) of the total combined voting power of all classes of
voting capital stock of the surviving entity (be it the Corporation or otherwise)
immediately after the consummation of such transaction, thereupon any and all Awards
immediately shall become and remain exercisable with respect to the total number of shares of Stock
still subject thereto for the remainder of their respective terms
until the consummation of such transaction, or if not consummated, until the agreement
therefore expires or is terminated, in which case thereafter all Awards shall be
treated as if said agreement never had been executed; (b) if there is an actual,
attempted or threatened change in the ownership of at least twenty-five percent (25%)
of all classes of voting capital stock of the Corporation through the acquisition of,
or an offer to acquire such percentage of the Corporation’s voting capital stock
by any person or entity, or persons or entities acting in concert or as a group, and
such acquisition or offer

1

 

has not been duly approved by the Board; or (c) if during
any period of two (2) consecutive years, the individuals who at the beginning of such
period constituted the Board, cease for any reason to constitute at least a majority
of the Board, unless the election of each director of the Board, who was not a
director of the Board at the beginning of such period, was approved by a vote of at
least two-thirds of the directors then still in office who were directors at the
beginning of such period, thereupon any and all Awards immediately shall become and
remain exercisable with respect to the total number of shares of Stock still subject
thereto for the remainder of their respective terms.

In the case of an event specified in clause (a) of the foregoing sentence,
the full lapse of any restrictions on shares of Restricted Stock shall occur
immediately prior to the consummation of the described transaction and any
Options that vest as a result of execution of the described agreement shall
remain fully vested upon consummation thereof; and in the case of an event
specified in clause (b) or (c) of the foregoing sentence, the full vesting and
lapse shall occur upon occurrence of the described event.

Dated:
                                        
, 20                    

	 	 	 	 	 	 	 	 	 
	 	 	 	 	CITIZENS & NORTHERN CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	BY	 	 	 	 
	ATTEST:

	 	 	 	 	 	 

Craig G. Litchfield
	 	 
	 

	 	 	 	 	 	Chairman, President &	 	 
	
 
 Jessica
R. Brown

	 	 	 	 	 	Chief Executive Officer	 	 
	Corporate Secretary
	 	 	 	 	 	 	 	 

     The Director acknowledges receipt of a copy of the Plan, and represents that he or she is
familiar with the terms and provisions thereof. The Director hereby accepts this Option and Award
subject to all the terms and provisions of the Plan.

Dated:
                                        
                    

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 ,
 

	 	Director
	 	 
	 	 	CITIZENS & NORTHERN CORPORATION	 	 

2EX-10.2

EXHIBIT 10.2

INCENTIVE STOCK OPTION AGREEMENT

OPTION AGREEMENT dated as of the 5th day of January 2009, by and between Citizens &
Northern Corporation (the “Corporation”) and
                                        
, an employee of the
Corporation or of a subsidiary (the “Optionee”).

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
Optionee is to be granted, on the terms and conditions set forth herein, an option (the “Option”)
to purchase shares of the Corporation’s common stock and hereby grants such Option. It is intended
that the Option 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 Option Price. The Option is to purchase
                                        
shares of the
Corporation’s common stock (the “Option Shares”) at a price (the “Option Price”) of $19.88 per
share, which is not less than the fair market value of the Option Shares of the date hereof as
determined in accordance with the Plan rules.
	 
	2.	 	Period of Option and Conditions of Exercise.

	 	a.	 	Period of Option. Unless the option is previously terminated pursuant to this Option
Agreement, the term of the Option and of this Option Agreement shall commence on the date
hereof (the “Date of Grant”) and terminate upon the expiration of ten (10) years from the
Date of Grant. Upon the termination of the Option, all rights of the Optionee hereunder
shall cease.
	 
	 	b.	 	Conditions of Exercise. The Option shall not be exercisable during the six months
following the Date of Grant. Thereafter, subject to the following provisions of this
paragraph and section 3 of this Agreement, the Option shall become exercisable as follows:
one hundred percent (100%) of the shares optioned hereunder may be exercised, provided,
however, that the Option may be exercised only to purchase whole shares, and in no case may
a fraction of a share be purchased. The right of the Optionee to purchase shares with
respect to which this Option has become exercisable as herein provided may be exercised in
whole or in part at any time or from time to time, prior to the tenth anniversary of the
Date of Grant.

	3.	 	Termination of Employment.

	 	a.	 	Except as provided in this Section 3, the Option may not be exercised after the
holder thereof has ceased to be employed by the Corporation or a subsidiary thereof.
	 
	 	b.	 	If the Optionee ceases to be employed by the Corporation or a subsidiary thereof for
any reason other than death, disability, or termination of employment by the Corporation or
a subsidiary for cause, (as determined by the Committee), the Optionee or his or her legal
representative may exercise the Option at any time within three (3) months after such
cessation of employment to the extent that the Option was then and remains exercisable.
	 
	 	c.	 	If the Optionee ceases to be employed by the Corporation or a subsidiary thereof by
reason of death or disability as defined by in Section 22(e)(3) of the Code, the Optionee
or his or her legal representative may exercise the Option at any time within one year
after such cessation of employment to the extent that that the Option was then and remains
exercisable.
	 
	 	d.	 	Notwithstanding anything to the contrary in this Section 3, the option shall not be
exercisable later than ten years from the Date of Grant.
	 
	 	e.	 	For the purposes of this agreement, “cessation of employment” or “ceases to be
employed” will mean, in the case of termination of employment other than for cause, death
or disability, the last day the Optionee actively performed his or her job for the
Corporation or a subsidiary of the Corporation. In the event of the Optionee’s
death,“cessation of employment” or “ceases to be employed” will mean the last day the
employee actively performed work for the Corporation or a subsidiary of the Corporation.
In the event of disability, as defined by in Section 22(e)(3) of the Code, “cessation of
employment” or “ceases to be employed” will mean the last business day for which the
Corporation’s short-term disability benefit is paid.

1

 

	4.	 	Non-Transferability of Option. The Option and this Option Agreement shall not
be transferable otherwise than by will or by the laws of descent and
distribution; and the Option may be exercised, during the lifetime of the
Optionee, only by the Optionee or, in the event of the Optionee’s death, by his or her legal representative.
	 
	5.	 	Exercise of Option. The Option shall be exercised in the following
manner: the Optionee, or the person(s) having the right to
exercise the Option upon the death of the Optionee, shall
deliver to the Corporation written
notice, in substantially the form of the notice attached hereto, specifying
the number of Option Shares which he or she elects to purchase, together with
either:

	 	i.	 	Cash;
	 
	 	ii.	 	A number of shares of the Corporation’s common stock having a fair market value
(as of the date of exercise) equal to the price to be paid upon the exercise of the
Option; or
	 
	 	iii.	 	Any combination of cash and shares of the Corporation’s common stock, the sum of
which equals the total price to be paid upon the exercise of the Option, and the stock
purchased shall thereupon be promptly delivered; provided, however, that the Corporation
may, in its discretion, require that the Optionee pay to the Corporation, at the time of
exercise, any such additional amount as the Corporation deems necessary to satisfy its
liability to withhold Federal, state, or local income or other taxes incurred by reason
of the exercise or the transfer of shares thereupon. The Optionee will not be deemed to
be a holder of any shares pursuant to exercise of the Option until the date of the
issuance of a stock certificate to him or her for such shares and until the shares are
paid for in full.

	6.	 	Change of Control. If any of the change in control events described in Section 11 of the
Plan occur, all Options shall fully vest as provided in Section 11; any Options that vest as a
result of the execution of an agreement described in clause (a) of the second sentence of the
third paragraph of Section 11 shall remain fully vested upon consummation of the described
transaction and , in the case of an event described in clause (b) or (c) of said sentence, the
full vesting shall occur upon occurrence of the described event.
	 
	7.	 	Notices. Any notice required or permitted under this Option Agreement shall be deemed given
when delivered personally, or when deposited in a United States Post Office, postage prepaid,
addressed, as appropriate, to the Optionee either at his address herein above set forth or
such other address as he or she may designate in writing to the Corporation.
	 
	8.	 	Failure to Enforce Not a Waiver. The failure of the Corporation to enforce at any time any
provision of this Option Agreement shall in no way be construed to be a waiver of such
provision or of any other provision hereof.
	 
	9.	 	Governing Law. This Option Agreement shall be governed by and construed according to the laws
of the State of Pennsylvania.
	 
	10.	 	Incorporation of Plan. The Plan is hereby incorporated by reference and made a part hereof,
and the Option and this Option Agreement are subject to all terms and conditions of the Plan.
	 
	11.	 	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 option to fail to continue to qualify as an “incentive stock
option.”

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

	 	 	 	 	 
	 

	 	By	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	 	 	Craig G. Litchfield, Chairman, President & CEO
	 
	 	 	 	 
	 	 	The undersigned hereby accepts and agrees to all the terms and
provisions of the foregoing Option Agreement and to all the terms
and provisions of the Citizens & Northern Corporation 1995 Stock
Incentive Plan herein incorporated by reference.
	 
	 	 	 	 
	 	 	 
	 	 	Optionee –
                                        
                    

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]