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EXHIBIT 10.2

 

CITIZENS & NORTHERN CORPORATION

 

INDEPENDENT DIRECTORS STOCK INCENTIVE PLAN

 

STOCK
OPTION AGREEMENT

 

A STOCK OPTION
for a total of One Thousand Two Hundred Fifty-Nine (1,259) 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 4, 2012
to «Account_Name_» (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 15, 2008,
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 Eighteen and 54/100 ($18.54) 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 Two Hundred
Ten (210) 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 4, 2012
to «Account_Name_» (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 15, 2008,
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: 70 shares on January 4, 2013; 70 shares on January 4, 2014; and 70 shares on January 4, 2015.

 

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 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: January 4, 2012

	 	 	CITIZENS & NORTHERN CORPORATION
	 	 	 
	 	 	BY	 
	ATTEST:	 	 	Charles H. Updegraff, Jr.
	 	 	 	Chairman, President &
	 	 	 	Chief Executive Officer
	Jessica R. Brown	 	 
	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:	 	 	 
	 	 	 
	 	 	«Account_Name_», DirectorEXHIBIT 10.3

INCENTIVE STOCK OPTION AGREEMENT

 

OPTION AGREEMENT dated as of the 4th day of January 2012,
by and between Citizens & Northern Corporation (the "Corporation") and «name», 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 «Options» shares of the Corporation's
common stock (the "Option Shares") at a price (the "Option Price") of $18.54 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.

 

    	 

    	 

    

 

		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
	 	 
	 	 
	 	Charles H. Updegraff, Jr., 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 – «name»

 

Signed in duplicate - one set to Optionee -
Return one to Corporation

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