Document:

Exhibit 10.1

TriNet Group, Inc.

Restricted Stock Unit Grant Notice

(2009 Equity Incentive Plan; Performance Award)

TriNet Group, Inc. (the “Company”), pursuant to its 2009 Equity Incentive Plan (the “Plan”), hereby awards to Participant a Restricted Stock Unit Award in respect of the target and maximum number of restricted stock units  (“RSUs”) set forth below (the “Award”).  The Award is subject to all of the terms and conditions as set forth herein, including the Vesting Criteria set forth on Attachment I hereto, and in the Plan and the Restricted Stock Unit Award Agreement, all of which are attached hereto and incorporated herein in their entirety.  Capitalized terms not otherwise defined herein will have the meanings set forth in the Plan or the Restricted Stock Unit Award Agreement.  In the event of any conflict between the terms in the Award and the Plan, the terms of the Plan will control.

 

	
Participant:
	
 
	
 

	
Date of Grant:
	
 
	
 

	
Target Award:
	
 
	
 

	
Maximum Award: 
	
 
	
 

	
Performance Period:
	
 
	
 

 

	
Vesting Criteria: 
	
The Award will vest contingent upon attainment of the performance and service conditions specified on the attached Attachment I (the “Vesting Criteria”).

Determination of

	
Actual Award:
	
On the date that the Committee certifies that the applicable Threshold Performance Goal has been achieved for a Measurement Period, and provided that the Participant is in Continuous Service through the Determination Date for such Measurement Period, the Company will credit the Participant with the actual number of RSUs that may be earned under the Award for such Measurement Period, which may be equal to all or a portion (including none) of the Maximum Award, as determined by the Committee in accordance with the Vesting Criteria. Vesting of the Actual Award will be governed by the rules contained in the Vesting Criteria.

	
Issuance Schedule:
	
The shares will be issued in accordance with the issuance schedule set forth in Section 6 of the Restricted Stock Unit Award Agreement.

Additional Terms/Acknowledgements:  Participant acknowledges receipt of, and understands and agrees to, this Restricted Stock Unit Grant Notice, the Restricted Stock Unit Award Agreement and the Plan.  Participant further acknowledges that as of the Date of Grant, this Restricted Stock Unit Grant Notice, the Restricted Stock Unit Award Agreement and the Plan set forth the entire understanding between Participant and the Company regarding this Award and supersede all prior oral and written agreements, promises and/or representations on that subject with the exception of (i) equity awards previously granted and delivered to Participant and  (ii) any compensation recovery policy that is adopted by the Company or is otherwise required by applicable law.

By accepting the Award, Participant acknowledges having received and read the Restricted Stock Unit Grant Notice, the Restricted Stock Unit Award Agreement and the Plan (the “Grant Documents”) and agrees to all of the terms and conditions set forth in these documents.  Furthermore, by accepting the Award, Participant consents to receive such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

Notwithstanding the above, if Participant has not actively accepted the Award within 30 days following the date of delivery to Participant, Participant is deemed to have accepted the Award, subject to all of the terms and conditions of the Grant Documents.

	
Attachments: 
	
Vesting Criteria, Restricted Stock Unit Award Agreement, 2009 Equity Incentive Plan

1

 

Attachment I

Vesting Criteria

Subject to the Participant’s Continuous Service through a Determination Date or an Upside Vesting Date, as applicable (each as defined below), the RSUs granted hereunder shall be credited to the Award and shall vest as determined below.

Performance Criteria

RSUs shall be credited under the Award based on the cumulative annual growth rate in the Company’s Net Services Revenues (“Revenue CAGR”) for a given fiscal year as follows:

 

	
 
	
Threshold
	
Target
	
Maximum

	
Revenue CAGR
	
12%
	
15%
	
20%

	
CAGR Multiplier
	
0%
	
100%
	
200%*

* 200% tied to 3-year performance; RSUs earned in the First Measurement Period or Second Measurement Period are capped at 150%.

The CAGR Multiplier is used to determine the actual number of RSUs credited to the Award.  The CAGR Multiplier for any Revenue CAGR which falls between 12% and 15% shall be determined by linear interpolation.  The maximum possible number of RSUs that may be earned under the Award is 200% of the Target Award.

Certain Definitions

	
·
	
“Actual Award” means the actual number of RSUs that are credited under the Award, determined in accordance with the rules under the heading “Determination of Actual Award” below.

	
·
	
“Determination Date” means the date on which the Committee certifies in writing the CAGR Multiplier and determines the Actual Award for a given Performance Period which, with respect to the First Measurement Period shall in no event be later than March 15, 2016, with respect to the Second Measurement Period shall in no event be later than March 15, 2017, and with respect to the Final Measurement Period shall in no event be later than March 15, 2018.

	
·
	
“Final Measurement Period” means the period beginning on January 1, 2015 and ending on December 31, 2017.

	
·
	
“First Measurement Period” means the period beginning on January 1, 2015 and ending on December 31, 2015.

	
·
	
“Good Reason” will have the meaning ascribed to such term in any written agreement between the Participant and the Company defining such term and, in the absence of such agreement, such term shall mean, with respect to a Participant, that Participant resigns from all positions he then holds with the Company and its affiliates if one of the following events occurs without the Participant’s consent: (1) a material reduction in the Participant’s total annual compensation, except that annual reviews and alterations of variable or target compensation consistent with the formulae applied to executive peers shall not constitute good reason; (2) a material adverse change in the Participant’s authority, responsibilities or duties; or (3) the Company’s requirement that the Participant relocate his primary work location to a location that would increase Executive’s one way commute distance by more than thirty (30) miles. For “Good Reason” to be established, the Participant must provide written notice to the Company’s General Counsel within thirty (30) days immediately following such events, the Company must fail to remedy such event within thirty (30) days after receipt of such notice, and the Participant’s resignation must be effective not later than ninety (90) days, nor sooner than thirty (30) days, after the expiration of such cure period.

	
·
	
“Measurement Period” means, as applicable the First Measurement Period, the Second Measurement Period, or the Final Measurement Period.

	
·
	
“Performance Period” means January 1, 2015 through December 31, 2017.

	
·
	
“Qualified Termination” means an involuntary termination without Cause (as defined in the Plan) or a resignation for Good Reason on or within 12 months after the effective date of a Change in Control.

	
·
	
“Second Measurement Period” means the period beginning on January 1, 2015 and ending on December 31, 2016.

	
·
	
“Threshold Performance Goal” means 12% of Revenue CAGR for a given Measurement Period.

2

 

	
·
	
“Upside RSUs” mean any RSUs credited to the Participant on a Determination Date attributable to the positive difference between the actual CAGR Multiplier and 100%.

	
·
	
“Upside Vesting Date” means the date or dates on which any Upside RSUs vest, as provided below.  Upside RSUs attributable to the First Measurement Period will vest as to 50% on December 31, 2016, and as to 50% on December 31, 2017. Upside RSUs attributable to the Second Measurement Period will vest as to 100% on December 31, 2017.

Determination of Actual Award

Subject to the Committee’s certification of the Company’s achievement of the Threshold Performance Goal for the First Measurement Period, the Participant will be credited on the applicable Determination Date with a number of RSUs equal to (i) one-third (1/3) of the RSUs subject to the Target Award, multiplied by (ii) the CAGR Multiplier for the First Measurement Period (the “First Tranche RSUs”).  The First Tranche RSUs will vest on the Determination Date, except that if the CAGR Multiplier for the First Measurement Period is greater than 100%, then the portion of the First Tranche RSUs in excess of 100% will be deemed Upside RSUs, which will vest as follows: 50% on December 31, 2016, and 50% on December 31, 2017, subject to Participant’s Continued Service through each such date.

Subject to the Committee’s certification of the Company’s achievement of the Threshold Performance Goal for the Second Measurement Period, the Participant will be credited on the applicable Determination Date with a number of RSUs equal to (i) one-third (1/3) of the RSUs subject to the Target Award, multiplied by (ii) the CAGR Multiplier for the Second Measurement Period (the “Second Tranche RSUs”).  The Second Tranche RSUs will vest on the Determination Date, except that if the CAGR Multiplier for the Second Measurement Period is greater than 100%, then that portion of the Second Tranche RSUs in excess of 100% will be deemed Upside RSUs, 100% which will vest on December 31, 2017, subject to Participant’s Continued Service through such date.

Subject to the Company’s achievement of the Threshold Performance Goal for the Final Measurement Period, the Participant will be credited on the applicable Determination Date with a number of RSUs equal to (i) the product of (A) the number of RSUs subject to the Target Award, multiplied by (B) the CAGR Multiplier for the Final Measurement Period, minus (ii) the sum of First Tranche RSUs plus the Second Tranche RSUs (the “Third Tranche RSUs”).

Example 1 (maximum achievement):  Assume that (i) Participant is granted a Target Award of 30,000 RSUs, and (ii) the Revenue CAGR for each of the First Measurement Period, Second Measurement Period and Final Measurement Period is 20%.  Subject to Participant’s Continuous Service through each applicable Determination Date and each Upside Vesting Date, Participant would be credited with RSUs as follows (collectively, the “Actual Award”):

	
·
	
First Measurement Period: 15,000 RSUs (30,000 x 1/3 x 150%).  10,000 RSUs vest and settle as of the Determination Date, and 5,000 are Upside RSUs that vest as follows: 2,500 on December 31, 2016 and 2,500 on December 31, 2017.

	
·
	
Second Measurement Period: 15,000 RSUs (30,000 x 1/3 x 150%).  10,000 RSUs vest and settle as of the Determination Date; 5,000 are Upside RSUs, and vest on December 31, 2017.

	
·
	
Final Measurement Period: 30,000 RSUs vest and settle on the Determination Date.  ((30,000 x 200% = 60,000) – (15,000 + 15,000 = 30,000).

Treatment on Change in Control

The provisions of this Attachment I related to treatment on a Change in Control shall supersede any vesting acceleration provisions in any offer letter, employment agreement, change in control agreement or other agreement between the Participant and the Company.

In the event of a Change in Control that is also a Corporate Transaction (each as defined in the Plan) prior to the end of a Measurement Period, such Measurement Period will end on the closing of the Change in Control.  No later than five (5) business days prior to the closing of the Change in Control (such date, the Determination Date for the short Measurement Period), the Committee shall certify the Revenue CAGR as of the short Measurement Period based on accounting accruals, and Participant shall vest in a number of RSUs calculated per the rules above and prorated based on the number of days that have elapsed in the Measurement Period.

3

 

The remaining number of RSUs under the Target Award (the “Remainder RSUs”) shall vest in equal quarterly installments over the duration of the Performance Period subject only to the Participant’s Continuous Service with the Company or the acquiror or successor company.  In addition, in the event the Participant’s Continuous Service is terminated due to a Qualified Termination, any Remainder RSUs shall accelerate in full as of the termination date.

Example 2: Assume (a) a Target Award of 30,000 RSUs, (b) 5,000 RSU have previously vested and settled under the Award in connection with the First Measurement Period (and no Upside RSUs), (c) the closing of a Change in Control occurs on June 30, 2016, and (d) the Committee has determined that the Revenue CAGR as of the short Second Measurement Period is 15%. The number of RSUs that vest and settle in connection with the closing of the Change in Control is 10,000 (30,000 x 100% x 50%) – 5,000, and 15,000 RSUs become Remainder RSUs and may vest over the remainder of the Performance Period subject to the Participant’s Continuous Service following the Closing or vesting in full upon a Qualified Termination prior to the end of the Performance Period.

 

 

 

4

 

Attachment II

TriNet Group, Inc.

Restricted Stock Unit Award Agreement

(2009 Equity Incentive Plan)

 

 

 

 

5

 

Attachment III

2009 Equity Incentive Plan

 

6EXHIBIT 10.1

CHANGE IN CONTROL AGREEMENT

 

 

THIS CHANGE IN CONTROL
AGREEMENT (“Agreement”) is entered into as of the 17th day of March, 2015, by and among CITIZENS &
NORTHERN CORPORATION, a Pennsylvania corporation (the “Corporation”), CITIZENS & NORTHERN BANK, a Pennsylvania
bank (the “Bank”), and Stan R. Dunsmore, an employee of the Corporation and/or the Bank and/or of a subsidiary
of either (the “Employee”). The Corporation and the Bank are collectively referred to herein as the “Employer.”

 

WHEREAS, the Employer
wishes to assure itself of the continuity of the Employee’s services in the event of any actual change in control of the
Corporation; and

 

WHEREAS, the Employer
and the Employee accordingly desire to enter into this Agreement on the terms and conditions set forth below;

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants set forth herein, it is hereby agreed by and between the parties as follows:

 

1.                 
Term of Agreement.
The “Term” of this Agreement shall commence on the date hereof and shall continue through December 31, 2015; provided,
however, that on such date and on each December 31 thereafter, the Term of this Agreement shall automatically be extended for
one additional year unless, not later than the preceding January 1 either party shall have given written notice to the other that
such party does not wish to extend the Term; and provided, however, that if a Change in Control (as defined in Section 3 below)
shall have occurred during the original or any extended Term of this Agreement, the Term of this Agreement shall continue for a
period of twenty-four (24) calendar months commencing with the calendar month in which such Change in Control occurs and shall
end upon the expiration of such 24 month period.

 

2.                 
Employment After a Change in Control.
If the Employee is in the employ of the Bank on the date of a Change in Control, the Bank hereby agrees to continue the Employee
in its employ for the period commencing on the date of the Change in Control and ending on the last day of the Term of this Agreement
(the “Employment Period”). During the Employment Period, the Employee shall hold such position with the Bank and exercise
such authority and perform such employment duties as are commensurate with the Employee’s position, authority and duties
immediately prior to the Change in Control. The Employee agrees that during the Employment Period the Employee shall devote full
business time exclusively to the Employee’s duties and perform such duties faithfully and efficiently; provided, however,
that nothing in this Agreement shall prevent either (i) the Employee from voluntarily resigning from employment upon at
least sixty (60) days’ written notice to the Bank under circumstances which do not constitute a Termination (as defined below
in Section 5), or (ii) the Bank terminating the Employee for “Cause” as defined in Section 5 hereof or for any
other reason or no reason.

 

3.                 
Change in Control.
For purposes of this Agreement, a “Change in Control” means the happening of any of the following: the merger of the
Corporation into, or the consolidation of the Corporation with, another entity; the sale or other disposition of all or substantially
all of the Corporation’s assets; or the liquidation of the Corporation; provided, however, that a Change in Control
shall not be deemed to have occurred by reason of a transaction, or a substantially concurrent or otherwise related series
of transactions, upon the completion of which 50 percent or more of the beneficial ownership of the voting power of the Corporation
(or of the surviving corporation or corporation directly or indirectly controlling the Corporation) is held by (i) employee benefit
plans of the Corporation ; or (ii) an “Affiliate” of the Corporation (as defined in the Securities Exchange Act of
1934, as amended).

 

    	 

    	 

    

 

4.                 
Compensation During the Employment Period.
During the Employment Period, the Employee shall be compensated as follows:

 

a.             
The Employee shall receive compensation which is not less than compensation paid by the Employer to the Employee
immediately prior to the Employment Period; and

 

b.             
The Employee shall be eligible to participate in the Employer employee benefit plans which are not materially less
favorable to the Employee than the Employer employee benefit plans in which the Employee participated in immediately prior to the
Employment Period.

 

5.                 
Termination.
For purposes of this Agreement, the term “Termination” shall mean termination of the employment of the Employee during
the Employment Period either (i) by the Employer, for any reason other than death, Disability (as defined below),
or Cause (as described below), or (ii) by resignation of the Employee upon the occurrence of one or more of the following
events:

 

a.              
A significant change in the nature or scope of the Employee’s authorities or duties from those described in
Section 2 above, a breach of any of the provisions of Section 4 above, or the breach by the Employer of any other provision of
this Agreement;

 

b.             
The relocation of the Employee’s office to a location more than 35 miles from the location of the Employee’s
office immediately prior to the Employment Period;

 

c.              
A reasonable determination by the Employee that, as a result of a Change in Control and a change in circumstances
thereafter significantly affecting the nature and scope of Employee’s authorities and duties from those described in Section
2 above, the Employee is unable to exercise the authorities, powers, functions or duties associated with the Employee’s position
as contemplated by Section 2 above; or

 

d.             
The failure of the Corporation to obtain a satisfactory agreement from any successor to assume and agree to perform
this Agreement as contemplated in Section 15 below.

 

The date of the Employee’s
Termination under this Section 5 shall be the date specified by the Employee or the Employer, as the case may be, in a written
notice to the other party complying with the requirements of Section 11 below. For purposes of this Agreement, the Employee shall
be considered to have a “Disability” during the period in which the Employee is unable, by reason of a medically determinable
physical or mental impairment, to engage in the material and substantial duties of the Employee’s regular occupation, which
condition is expected to be permanent. For purposes of this Agreement, the term “Cause” means, in the reasonable judgment
of the Board of Directors of the Employer, (i) the willful and continued failure by the Employee to substantially perform the Employee’s
duties with the Employer after written notification by the Employer, or (ii) the willful engaging by the Employee in conduct which
is demonstrably injurious to the Employer, monetarily or otherwise, or (iii) the engaging by the Employee in egregious misconduct
involving moral turpitude. For purposes of this Agreement, no act, or failure to act, on the Employee’s part shall be deemed
“willful” unless done, or omitted to be done, by the Employee not in good faith and without reasonable belief that
such action was in the best interest of the Employer.

 

6.                 
Severance Payments.
In the event of a Termination described in Section 5 above, in lieu of the amounts otherwise payable under Section 4 above, the
Employee shall be entitled to receive (i) Employer-paid COBRA premiums (relating to the Employee’s group medical insurance
continuation premiums) for a period of eighteen (18) months after the date of Termination, and (ii) a lump sum payment in
cash no later than thirty (30) business days after the date of Termination equal to the sum of:

 

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		a.	the Employee’s unpaid salary, accrued vacation pay and unreimbursed business expenses through
and including the date of Termination; and

	 	 	 
		b.	an amount equal to one times the Employee’s base salary in effect immediately
prior to the date of Termination.
	 	 	 

7.                 
Excess Parachute Payment Limitation.
Notwithstanding any other provision of this Agreement, if the sum of the payments to the Employee described in this Agreement and
in any other agreement, program, or plan between the Employee and the Employer (or an affiliate of the Employer) attributable to
the same Change in Control constitute “excess parachute payments” (as defined in Section 280G(b)(1) of the Internal
Revenue Code of 1986, as amended (“Code”)), the Employer shall reduce the amounts otherwise payable to the Employee
under this Agreement so that the Employee’s total “parachute payment” (as defined in Code Section 280G(b)(2)(A))
under this Agreement and any other agreements, programs, or plans shall be One Thousand Dollars ($1,000) less than the amount that
would be an “excess parachute payment.”

 

8.                 
Withholding.
All payments to the Employee under this Agreement will be subject to all applicable withholding of state and federal taxes.

 

9.                 
Confidentiality and Non-Solicitation.
The Employee agrees that:

 

a.              
Except as may be required by the lawful order of a court or agency of competent jurisdiction, or except to the extent that
the Employee has express authorization from the Employer, the Employee agrees to keep secret and confidential all non-public information
concerning the Employer (or any entity controlled by the Employer) which was acquired by or disclosed to the Employee during the
course of the Employee’s employment with the Employer (or any entity controlled by the Employer), and not to disclose the
same, either directly or indirectly, to any other person, firm or business entity or to use it in any way.

 

b.             
While the Employee is employed by the Employer (or any entity controlled by the Employer) and for a period of twelve (12)
months after the date of the Employee’s Termination or other termination of employment with the Employer, the Employee covenants
and agrees that Employee will not, whether for Employee or for any other person, business, partnership, association, firm, company
or corporation, initiate contact with, solicit, divert or take away any of the customers (entities or individuals from which the
Employer or any entity controlled by the Employer receives payment for services) of the Employer (or any entity controlled by the
Employer) or employees of the Employer (or any entity controlled by the Employer) in existence from time to time during Employee’s
employment with the Employer (or any entity controlled by the Employer) and at the time of such initiation, solicitation or diversion.

 

10.             
Mitigation and Set-Off.
The Employee shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment
or otherwise. The Employer shall not be entitled to set off against the amounts payable to the Employee under this Agreement any
amounts earned by the Employee in other employment after termination of employment with the Employer, or any amounts which might
have been earned by the Employee in other employment had he sought such other employment.

 

11.             
Notices.
Any notice of Termination of the Employee’s employment by the Employer or the Employee for any reason under Section 5 above
shall be upon no less than fifteen (15) days’ and no greater than forty-five (45) days’ advance written notice to the
other party. Any notices, requests, demand and other communications provided for by this Agreement shall be sufficient if in writing
and if sent by registered or certified mail to the Employee at the last address the Employee has filed in writing with the Employer
or, in the case of the Employer, to the attention of the Secretary of the Employer, at its principal executive offices.

 

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12.             
Non-Alienation.
The Employee shall not have any right to pledge, hypothecate, anticipate or in any way create a lien upon any amounts provided
under this Agreement; and no amounts payable hereunder shall be assignable in anticipation of payment either by voluntary or involuntary
acts, or by operation of law. Nothing in this Section 12 shall limit the Employee’s rights or powers to dispose of the Employee’s
property by Last Will and Testament or limit any rights or powers which the Employee’s executor or administrator would otherwise
have. This Agreement shall inure to the benefit of and be enforceable by the Employee’s personal or legal representatives,
executors, administrators, successors, heirs, designees, devisees, and legatees. If the Employee should die while any amount is
still payable to the Employee hereunder had the Employee continued to live, all such amounts shall be paid in accordance with the
terms of this Agreement to the Employee’s designees, devisees, or legatee, or if there are none, to the Employee’s
estate.

 

13.             
Governing Law.
The provisions of this Agreement shall be construed in accordance with the laws of the State of Pennsylvania, without application
of conflict of laws provisions thereunder.

 

14.             
Amendment.
This Agreement may be amended or canceled by mutual agreement of the parties in writing without the consent of any other person
and, except as specifically provided in Section 15 hereto, so long as the Employee lives, no person, other than the parties hereto,
shall have any rights under or interest in this Agreement or the subject matter hereof.

 

15.             
Successors to the Employer.
This Agreement shall be binding upon and inure to the benefit of the Employer and any successor of the Employer. The Employer shall
require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all
of the business and/or assets of the Employer to expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Employer would be required to perform it if no succession had taken place.

 

16.             
Employment Status.
Nothing herein contained shall be deemed to create an employment agreement between the Employer and the Employee, providing for
the employment of the Employee by the Employer for any fixed period of time. The Employee’s employment with the Employer
is terminable at will by the Employer or the Employee, and each shall have the right to terminate the Employee’s employment
with the Employer at any time, with or without Cause, subject to (i) the notice provisions of this Agreement, and (ii) the Employer’s
obligation to provide severance payments if and as required by Section 6. Upon a termination of the Employee’s employment
prior to the date of a Change in Control, there shall be no rights of the Employee under this Agreement.

 

17.             
409A SAFE HARBOR.

 

a.General.
It is intended that this Agreement shall comply with the provisions of section 409A of the Code and the Department of the Treasury
(the "Department") Regulations relating thereto, or an exemption to section 409A of the Code. Any payments that qualify
for the "short-term deferral" exception or another exception under section 409A of the Code shall be paid under the applicable
exception. For purposes of the limitations on nonqualified deferred compensation under section 409A of the Code, each payment of
compensation under this Agreement shall be treated as a separate payment of compensation for purposes of applying the section 409A
of the Code deferral election rules and the exclusion under section 409A of the Code for certain short-term deferral amounts. All
payments to be made upon a termination of employment under this Agreement may only be made upon a "separation from service"
under section 409A of the Code. In no event may the Employee, directly or indirectly, designate the calendar year of any payment
under this Agreement. Within the time period permitted by the applicable Department Regulations (or such later time as may be permitted
under section 409A or any Internal Revenue Service or Department rules or other guidance issued thereunder), the Corporation may,
in consultation with the Employee, modify the Agreement in order to cause the provisions of the Agreement to comply with the requirements
of section 409A of the Code, so as to avoid the imposition of taxes and penalties on the Employee pursuant to section 409A of the
Code.

 

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b.In-Kind
Benefits and Reimbursements. Notwithstanding anything to the contrary in this Agreement, all reimbursements and in-kind benefits
provided under this Agreement shall be made or provided in accordance with the requirements of section 409A of the Code including,
where applicable, the requirement that (i) any reimbursement is for expenses incurred during the Employee’s lifetime (or
during a shorter period of time specified in this Agreement); (ii) the amount of expenses eligible for reimbursement, or in-kind
benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided,
in any other calendar year; (iii) the reimbursement of an eligible expense will be made no later than the last day of the calendar
year following the year in which the expense is incurred; and (iv) the right to reimbursement or in-kind benefits is not subject
to liquidation or exchange for another benefit.

 

c.Delay
of Payments. Notwithstanding any other provision of this Agreement to the contrary, if the Employee is considered a "specified
employee" for purposes of section 409A of the Code (as determined in accordance with the methodology established by the Corporation
and the Bank as in effect on the date of termination), (i) any payment that constitutes nonqualified deferred compensation within
the meaning of section 409A of the Code that is otherwise due to the Employee under this Agreement during the six-month period
following his separation from service (as determined in accordance with section 409A of the Code) shall be accumulated and paid
to Employee on the first business day of the seventh month following his separation from service (the "Delayed Payment Date")
and (ii) in the event any equity compensation awards held by the Employee that vest upon termination of the Employee’s employment
constitute nonqualified deferred compensation within the meaning of section 409A of the Code, the delivery of shares of common
stock (or cash) as applicable in settlement of such award shall be made on the earliest permissible payment date (including the
Delayed Payment Date) or event under section 409A on which the shares (or cash) would otherwise be delivered or paid. The Employee
shall be entitled to interest on any delayed cash payments from the date of termination to the Delayed Payment Date at a rate equal
to the applicable federal short-term rate in effect under Code section 1274(d) for the month in which the Employee’s separation
from service occurs. If the Employee dies during the postponement period, the amounts and entitlements delayed on account of section
409A of the Code shall be paid to the person designated by the Employee in writing for this purpose, or in the absence of any such
designation, to (i) his spouse if she survives him, or (ii) to his estate if his spouse does not survive him, on the first to occur
of the Delayed Payment Date or 30 days after the date of the Employee’s death. The foregoing shall apply only to those payments
required hereunder, if any, that do not qualify as short term deferrals or an exempt pay arrangement under section 409A.

 

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18.             
Severability.
In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason,
the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect.

 

19.             
Survival.
Notwithstanding any other provision of this Agreement to the contrary, Sections 9, 15 and 17 shall survive the termination of this
Agreement and the termination of the Employee’s employment with the Employer.

 

20.             
Counterparts.
This Agreement may be executed in two or more counterparts, any one of which shall be deemed the original without reference to
the others.

 

IN WITNESS WHEREOF,
the Employee and the Employer have executed this Agreement as of the day and year first above written, but on the dates indicated
below each.

 

 

	 	EMPLOYEE:	 
	 	 	 
	 	Signature: 	/s/ Stan R. Dunsmore
	 	 	 
	 	Printed Name: 	Stan R. Dunsmore
	 	Address: 	314 Meadow Road
	 	 	Emporium, PA 15834
	 	 	 
	 	Date: 	3/17/15
	 	 	 

 

	 	 	 
	 	 	 
	 	CORPORATION:
	 	 	 
	 	CITIZENS & NORTHERN CORPORATION
	 	 	 
	 	By:	/s/ J. Bradley Scovill
	 	 	 
	 	Title:	President & CEO
	 	 	 
	 	Date:	3/17/15
	 	 	 
	 	 	 
	 	 	 
	 	BANK:	 
	 	 	 
	 	CITIZENS & NORTHERN BANK
	 	 	 
	 	By:	/s/ J. Bradley Scovill
	 	 	 
	 	Title:	President & CEO
	 	 	 
	 	Date:	3/17/15

 

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