Document:

First Amendment to Retention Agreement with Thomas Gallahue

    Exhibit
      10.64

    

    FIRST
      AMENDMENT TO 

    RETENTION
      AGREEMENT

    

    THIS
      FIRST AMENDMENT to that certain Retention Agreement by and between THOMAS
      GALLAHUE, an individual (hereinafter referred to as “Gallahue”) and CONSUMER
      PROGRAMS INCORPORATED, a Missouri corporation (on behalf of itself and its
      affiliates (hereinafter referred to, alternatively and collectively, as “CPI”)
      dated as of January 12, 2006 (hereinafter referred to as the “Retention
      Agreement”) is entered into as of the 23rd day of August, 2006. 

    

    WHEREAS,
      the parties entered into the Retention Agreement to provide for Gallahue’s
      continued service to CPI through August 31, 2006; and

    

    WHEREAS,
      the parties desire to extend Gallahue’s employment under the Retention
Agreement
      through October 27, 2006;

    

    NOW,
      THEREFORE, in consideration of the covenants set forth herein, the parties
      hereby
      agree to amend the Retention Agreement as follows:

    

    	1.  	
            Section
              1 of the Retention Agreement shall be amended by deleting “August 31,
              2006” and inserting in lieu thereof “October 27,
              2006”.

          

    

    	2.  	
            Section
              3(a) of the Retention Agreement shall be amended by deleting “August 31,
              2006” and inserting in lieu thereof “October 27,
              2006”.

          

    

    	3.  	
            Section
              4 of the Retention Agreement shall be amended by adding the following
              sentence at the end of the Section:

          

    

    Gallahue
      shall provide an average of twenty (20) hours of service to CPI each week from
      August 31, 2006 through October 27, 2006.

    

    	4.  	
            Unless
              otherwise defined herein, all capitalized terms shall have the definition
              ascribed to them in the Retention
              Agreement.

          

    

    	5.  	
            The
              Retention Agreement is hereby ratified and affirmed as amended by this
              First Amendment. 

          

    

     

    

    

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    

    

    

    
      
         

      

      
         

        
        

      

      
         

      

    

    
 

    

    IN
      WITNESS WHEREOF, the parties have executed this First Amendment to the Retention
      Agreement as of the date first written above. 

     

     

     

    
      	 	 	 
	 	
              CONSUMER
                PROGRAMS INCORPORATED,

              a Missouri corporation, on behalf of
                itself and
                its

              affiliates

            
	 
 	 
 	 
 
	 	By:  	/s/ Paul
              Rasmussen
	 	
              
Paul
              Rasmussen
	 	Presient
              and Chief Executive Officer

    

     

    
      	 	 	 
	 
 	 
 	 
 
	 	By:  	/s/ Thomas
              Gallahue
	 	
              
Thomas
              GallahueCitizens Financial Services, Inc. 2006 Restricted Stock Plan

    Exhibit
      4.1

     

    

     

    

     

    

     

    

     

    

     

    

     

    CITIZENS
      FINANCIAL SERVICES, INC.

    2006 RESTRICTED
      STOCK PLAN

    effective
      April 18, 2006

    (As
      Approved by Shareholders on April 18, 2006)

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CITIZENS
      FINANCIAL SERVICES, INC.

    2006 RESTRICTED
      STOCK PLAN

     

    TABLE
      OF CONTENTS

     

    

     

    
      
        	 ARTICLE	 	
                 PAGE

              
	 ARTICLE
                1.	
                 PURPOSE OF THE PLAN; TYPES OF
                  AWARDS

              	
                 1

              
	 ARTICLE
                2. 	 DEFINITIONS	
                 1

              
	 ARTICLE
                3.	 ADMINISTRATION	
                 4

              
	 ARTICLE
                4.	 COMMON
                STOCK SUBJECT TO THE PLAN	
                 5

              
	 ARTICLE
                5.	 ELIGIBILITY	
                 5

              
	 ARTICLE
                6.	 TERMS
                AND CONDITIONS OF RESTRICTED STOCK AWARDS	
                 5

              
	 ARTICLE
                7.	 ADJUSTMENT
                PROVISIONS	
                 6

              
	 ARTICLE
                8. 	 GENERAL
                PROVISIONS	
                 7

              

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Item
      1.   PURPOSE
      OF THE PLAN; TYPES OF AWARDS

     

    (a)
        Purpose.
      The
      Citizens Financial Services, Inc. 2006 Restricted Stock Plan is intended to
      provide selected employees and non-employee directors of Citizens Financial
      Services, Inc. and its Subsidiaries with an opportunity to acquire Common Stock
      of the Corporation. The Plan is designed to help the Corporation attract, retain
      and motivate employees and non-employee directors to make substantial
      contributions to the success of the Corporation’s business and the businesses of
      its Subsidiaries. Awards will be granted under the Plan based, among other
      things, on a participant’s level of responsibility and performance.

     

    (b)
        Authorized
      Plan Awards.
      The
      Corporation may grant Restricted Stock Awards within the limitations of the
      Plan
      herein described.

     

    Item
      2.   DEFINITIONS

     

    (a)
        “Agreement.”
      A written or electronic agreement between the Corporation and a Participant
      evidencing the grant of a Restricted Stock Award. A Participant may be issued
      one or more Agreements from time to time, reflecting one or more Restricted
      Stock Awards.

     

    (b)
        “Board.”
      The Board of Directors of the Corporation.

     

    (c)
        “Change
      in Control.” Except
      as
      otherwise provided in an Agreement, the first to occur of any of the following
      events:

     

    (1)
        any
      “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
      Act), except for any of the Corporation’s employee benefit plans, or any entity
      holding the Corporation’s voting securities for, or pursuant to, the terms of
      any such plan (or any trust forming a part thereof) (the “Benefit Plan(s)”), is
      or becomes the beneficial owner, directly or indirectly, of the Corporation’s
      securities representing 19.9% or more of the combined voting power of the
      Corporation’s then outstanding securities other than pursuant to a transaction
      excepted in Clause (d);

     

    (2)
        there
      occurs a contested proxy solicitation of the Corporation’s shareholders that
      results in the contesting party obtaining the ability to vote securities
      representing 19.9% or more of the combined voting power of the Corporation’s
      then outstanding securities;

     

    (3)
        a
      binding
      written agreement is executed providing for a sale, exchange, transfer or other
      disposition of all or substantially all of the assets of the Corporation to
      another entity, except to an entity controlled directly or indirectly by the
      Corporation;

     

    (4)
        the
      shareholders of the Corporation approve a merger, consolidation, or other
      reorganization of the Corporation, unless:

     

    1.
        under
      the
      terms of the agreement providing for such merger, consolidation or
      reorganization, the shareholders of the Corporation immediately before such
      merger, consolidation or reorganization, will own, directly or indirectly
      immediately following such merger, consolidation or reorganization, at least
      51%
      of the combined voting power of the outstanding voting securities of the
      Corporation resulting from such merger, consolidation or reorganization (the
      “Surviving Corporation”) in substantially the same proportion as their ownership
      of the voting securities immediately before such merger, consolidation or
      reorganization;

     

    2.
        under
      the
      terms of the agreement providing for such merger, consolidation or
      reorganization, the individuals who were members of the Board immediately prior
      to the execution of such agreement will constitute at least 51% of the members
      of the board of directors of the Surviving Corporation after such merger,
      consolidation or reorganization; and

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    3.
        based
      on
      the terms of the agreement providing for such merger, consolidation or
      reorganization, no Person (other than (A) the Corporation or any Subsidiary
      of the Corporation, (B) any Benefit Plan, (C) the Surviving
      Corporation or any Subsidiary of the Surviving Corporation, or (D) any
      Person who, immediately prior to such merger, consolidation or reorganization
      had beneficial ownership of 19.9% or more of the then outstanding voting
      securities) will have beneficial ownership of 19.9% or more of the combined
      voting power of the Surviving Corporation’s then outstanding voting
      securities;

     

    (5)
        a
      plan of
      liquidation or dissolution of the Corporation, other than pursuant to bankruptcy
      or insolvency laws, is adopted; or

     

    (6)
        during
      any period of two consecutive years, 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, or the nomination for election by
      the
      Corporation’s shareholders, of each new director was approved by a vote of at
      least two-thirds of the directors then still in office who were directors at
      the
      beginning of the period.

     

    Notwithstanding
      Clause (a), a Change in Control shall not be deemed to have occurred if a
      Person becomes the beneficial owner, directly or indirectly, of the
      Corporation’s securities representing 19.9% or more of the combined voting power
      of the Corporation’s then outstanding securities solely as a result of an
      acquisition by the Corporation of its voting securities which, by reducing
      the
      number of shares outstanding, increases the proportionate number of shares
      beneficially owned by such Person to 19.9% or more of the combined voting power
      of the Corporation’s then outstanding securities; provided, however, that if a
      Person becomes a beneficial owner of 19.9% or more of the combined voting power
      of the Corporation’s then outstanding securities by reason of share purchases by
      the Corporation and shall, after such share purchases by the Corporation, become
      the beneficial owner, directly or indirectly, of any additional voting
      securities of the Corporation (other than as a result of a stock split, stock
      dividend or similar transaction), then a Change in Control of the Corporation
      shall be deemed to have occurred with respect to such Person under
      Clause (a). In no event shall a Change in Control of the Corporation be
      deemed to occur under Clause (a) with respect to Benefit
      Plans.

     

    (d)
        “Code.”
      The Internal Revenue Code of 1986, as amended.

     

    (e)
        “Code
      of
      Conduct.” The policies and procedures related to employment of employees by the
      Corporation or a Subsidiary set forth in the Corporation’s employee handbook.
      The Code of Conduct may be amended and updated at any time. The term “Code of
      Conduct” shall also include any other policy or procedure that may be adopted by
      the Corporation or a Subsidiary and communicated to Employees and Non-Employee
      Directors of the Corporation or a Subsidiary.

     

    (f)
        “Committee.”
      The Human Resource Committee of the Board.

     

    (g)
        “Common
      Stock.” The common stock of the Corporation (par value $1.00 per share) as
      described in the Corporation’s Articles of Incorporation, or such other stock as
      shall be substituted therefor.

     

    (h)
        “Corporation.”
      Citizens Financial Services, Inc., a Pennsylvania corporation.

     

    (i)
        “Employee.”
      Any common law employee of the Corporation or a Subsidiary. An Employee does
      not
      include any individual who: (i) does not receive payment for services
      directly from the Corporation’s or a Subsidiary’s payroll; (ii) is employed
      by an employment agency that is not a Subsidiary; or (iii) who renders
      services pursuant to a written arrangement that expressly provides that the
      service provider is not eligible for participation in the Plan, regardless
      if
      such person is later determined by the Internal Revenue Service or a court
      of
      law to be a common law employee.

     

    (j)
        “Exchange
      Act.” The Securities Exchange Act of 1934, as amended.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (k)
        “Non-Employee
      Director.” A member of the Board or of the board of directors of a
      Subsidiary who
      is
      not an Employee.

     

    (l)
        “Participant.”
      An Employee or Non-Employee Director to whom a Restricted Stock Award has been
      awarded and remains outstanding.

     

    (m)
        “Performance
      Criteria.” Any objective determination based on one or more of the following
      areas of performance of the Corporation, a Subsidiary, or any division,
      department or group of either which includes, but is not limited to:
      (a) earnings, (b) cash flow, (c) revenue, (d) financial
      ratios, (e) market performance, (f) shareholder return,
      (g) operating profits (including earnings before interest, taxes,
      depreciation and amortization), (h) earnings per share, (i) return on
      assets, (j) return on equity, (k) return on investment, (l) stock
      price, (m) asset quality, (n) expense reduction, (o) systems
      conversion, (p) special projects as determined by the Committee, and
      (q) acquisition integration initiatives. Performance Criteria shall be
      established by the Committee prior to the issuance of a Performance
      Grant.

     

    (n)
        “Performance
      Goal.” One or more goals established by the Committee, with respect to a
      Restricted Stock Award intended to constitute a Performance Grant, that relate
      to one or more Performance Criteria. A Performance Goal shall relate to such
      period of time, not less than one year (unless coupled with a vesting schedule
      of at least one year) or more than five years, as may be specified by the
      Committee at the time of the awarding of a Performance Grant.

     

    (o)
        “Performance
      Grant.” A Restricted Stock Award, the vesting or receipt without restriction of
      which, is conditioned on the satisfaction of one or more Performance
      Goals.

     

    (p)
        “Plan.”
      The Citizens Financial Services, Inc. 2006 Restricted Stock
      Plan.

     

    (q)
        “Restricted
      Stock Award.” An award of Common Stock pursuant to the provisions of the Plan,
      which award is subject to such restrictions and other conditions, including
      achievement of one or more performance goals, as may be specified by the
      Committee at the time of such award.

     

    (r)
        “Retirement.”
      The termination of a Participant’s employment or service as a Non-Employee
      Director following the first day of the month coincident with or next following
      attainment of age 70,
      or
      attainment of age 55 and the completion of five (5) years
      service.

     

    (s)
        “Securities
      Act.” The Securities Act of 1933, as amended.

     

    (t)
        “Subsidiary.”
      A subsidiary corporation, as defined in Code Section 424(f), that is a
      subsidiary of the Corporation.

     

    (u)
        “Termination
      or Dismissal For Cause.” Termination of an Employee by the Corporation or a
      Subsidiary or dismissal of a Non-Employee Director from the Board
      after:

     

    (1)
        any
      government regulatory agency recommends or orders in writing that the
      Corporation or a Subsidiary terminate the employment of such Employee or service
      as a Non-Employee Director or relieve him or her of his or her
      duties;

     

    (2)
        such
      Employee or Non-Employee Director is convicted of or enters a plea of guilty
      or
nolo contendere
      to a
      felony, a crime of falsehood, or a crime involving fraud or moral turpitude,
      or
      the actual incarceration of the Employee or Non-Employee Director for a period
      of 45 consecutive days;

     

    (3)
        a
      determination by the Committee that such Employee willfully failed to follow
      the
      lawful instructions of the Board or any officer of the Corporation or a
      Subsidiary after such Employee’s receipt of written notice of such instructions,
      other than a failure resulting from the Employee’s incapacity because of
      physical or mental illness;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (4)
        a
      determination by the Committee that the willful or continued failure by such
      Employee or Non-Employee Director to substantially and satisfactorily perform
      his duties with the Corporation or a Subsidiary (other than any such failure
      resulting from the Employee or Non-Employee Director being “disabled” (as
      defined in the Corporation’s group long term disability policy) or as a result
      of physical or mental illness), within a reasonable period of time after a
      demand for substantial performance or notice of lack of substantial or
      satisfactory performance is delivered to the Employee or Non-Employee Director,
      which demand identifies the manner in which the Employee or Non-Employee
      Director has not substantially or satisfactorily performed his or her duties;
      or

     

    (5)
        a
      determination by the Committee that such Employee or Non-Employee Director
      has
      failed to conform to the Corporation’s Code of Conduct.

     

    For
      purposes of the Plan, no act, or failure to act, on a Employee’s or Non-Employee
      Director’s part shall be deemed “willful” unless done, or omitted to be done, by
      such Employee or Non-Employee Director not in good faith and without reasonable
      belief that such Employee’s or Non-Employee Director’s action or omission was in
      the best interest of the Corporation or a Subsidiary.

     

    Item
      3.   ADMINISTRATION

     

    (a)
        The
      Committee.
      The
      Plan shall be administered by the Committee, which Committee shall be composed
      of two or more members of the Board, all of whom are (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 Code Section 162(m). The Board may from time to time remove
      members from, or add members to, the Committee. Vacancies on the Committee,
      however caused, shall be filled by the Board.

     

    (b)
        Powers
      of the Committee.

     

    (1)
        The
      Committee shall be vested with full authority to make such rules and regulations
      as it deems necessary or desirable to administer the Plan and to interpret
      the
      provisions of the Plan, subject to the review and approval by a majority of
      the
      disinterested members of the Board. Any determination, decision, or action
      of
      the Committee in connection with the construction, interpretation,
      administration, or application of the Plan shall be final, conclusive, and
      binding upon all Participants and any person claiming under or through a
      Participant, subject to the review and approval by a majority of the
      disinterested members of the Board.

     

    (2)
        Subject
      to the terms, provisions, and conditions of the Plan and subject to review
      and
      approval by a majority of the disinterested members of the Board, the Committee
      shall have exclusive jurisdiction to:

     

    1.
        determine
      and select the Employees and Non-Employee Directors to be granted Restricted
      Stock Awards (it being understood that more than one Restricted Stock Award
      may
      be granted to the same person);

     

    2.
        determine
      the number of shares subject to each Restricted Stock Award;

     

    3.
        determine
      the date or dates when the Restricted Stock Awards will be granted;

     

    4.
        determine
      the Performance Criteria and establish Performance Goals with respect thereto,
      to be applied to a Restricted Stock Award; and

     

    5.
        prescribe
      the form, which shall be consistent with the Plan document, of the Agreement
      evidencing any Restricted Stock Awards granted under the Plan.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (c)
        Liability.
      No
      member of the Board or the Committee shall be liable for any action or
      determination made in good faith by the Board or the Committee with respect
      to
      this Plan or any Restricted Stock Awards granted under this Plan.

     

    (d)
        Establishment
      and Certification of Performance Goals.
      The
      Committee shall establish, prior to grant, Performance Goals with respect to
      each Restricted Stock Award intended to constitute a Performance Grant. Except
      as may otherwise be provided in Article 6 hereof, no share of Common Stock
      subject to a Restricted Stock Award that is intended to constitute a Performance
      Grant shall be released to a Participant until the Performance Goal or Goals
      applicable thereto is or are satisfied.

     

    (e)
        No
      Waiver of Performance Goals.
      The
      Committee or the Board shall not waive any Performance Goal or Goals with
      respect to the grant of any Restricted Stock Award hereunder.

     

    (f)
        Performance
      Grants Not Mandatory.
      Nothing
      herein shall be construed as requiring that any Restricted Stock Award be made
      a
      Performance Grant.

     

    Item
      4.   COMMON
      STOCK SUBJECT TO THE PLAN

     

    (a)
        Common
      Stock Authorized.
      The
      initial total aggregate number of shares of Common Stock subject to Restricted
      Stock Awards shall not exceed 100,000. The limitation established by the
      preceding sentence shall be subject to adjustment as provided in
      Article 7.

     

    (b)
        Shares
      Available.
      The
      Common Stock to be issued under the Plan shall be the Corporation’s Common Stock
      which shall be made available at the discretion of the Board, either from
      authorized but unissued Common Stock or from Common Stock acquired by the
      Corporation, including shares purchased in the open market. In the event that
      any outstanding Restricted Stock Award under the Plan for any reason expires,
      terminates, or is forfeited, the shares of Common Stock allocable to such
      expiration, termination, or forfeiture may thereafter again be made subject
      to a
      Restricted Stock Award under the Plan.

     

    Item
      5.   ELIGIBILITY

     

    (a)
        Participation.
      Restricted Stock Awards shall be granted by the Committee only to persons who
      are Employees and Non-Employee Directors.

     

    Item
      6.   TERMS
      AND CONDITIONS OF RESTRICTED STOCK AWARDS

     

    (a)
        In
      General.
      Each
      Restricted Stock Award shall be subject to such terms and conditions as may
      be
      specified in the Agreement issued to a Participant to evidence the grant of
      such
      Restricted Stock Award. Subject to Section 3.6, a Restricted Stock Award
      shall be subject to a vesting schedule or Performance Goals, or
      both.

     

    (b)
        Minimum
      Vesting Period for Certain Restricted Stock Awards.
      Each
      Restricted Stock Award granted to a Participant shall be fully exercisable
      (i.e., become 100% vested) only after the earlier of the date on which
      (i) the Participant has completed one year of continuous employment with,
      or service with respect to, the Corporation or a Subsidiary immediately
      following the date of the Restricted Stock Award (or such later date as may
      be
      specified in an Agreement, including a date that may be tied to the satisfaction
      of one or more Performance Goals), provided, however, that Restricted Stock
      Awards may be made, in the discretion of a majority of the disinterested members
      of the Board, to a Non-Employee Director without any such continuous service
      requirement; (ii) unless otherwise provided in an Agreement, a Change in
      Control occurs; or (iii) unless otherwise provided in an Agreement, the
      Participant’s death, being “disabled” (as defined in the Corporation’s group
      long term disability policy), or Retirement.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (c)
        Waiver
      of Vesting Period for Certain Restricted Stock Awards.
      In the
      event that a Participant’s employment or service as a Non-Employee Director is
      terminated and the Committee deems it equitable to do so, the Committee may,
      in
      its discretion and subject to the approval of a majority of the disinterested
      members of the Board, waive any minimum vesting period (but
      not
      any Performance Goal or Goals) with respect to a Restricted Stock Award held
      by
      such Participant. Any such waiver may be made with retroactive effect, provided
      it is made within 60 days following such Participant’s termination of
      employment or service as a Non-Employee Director.

     

    (d)
        Issuance
      and Retention of Share Certificates By Corporation.
      One or
      more share certificates shall be issued upon the grant of a Restricted Stock
      Award; but until such time as the shares of Common Stock subject to such
      Restricted Stock Award shall vest or otherwise become distributable by reason
      of
      satisfaction of one or more Performance Goals, the Corporation shall retain
      such
      share certificates.

     

    (e)
        Stock
      Powers.
      At the
      time of the grant of a Restricted Stock Award, the Participant to whom the
      grant
      is made shall deliver such stock powers, endorsed in blank, as may be requested
      by the Corporation.

     

    (f)
        Release
      of Shares.
      Within
      30 days following the date on which a Participant becomes entitled under an
      Agreement to receive shares of Common Stock, the Corporation shall deliver
      to
      him or her a certificate evidencing the ownership of such shares, together
      with
      an amount of cash (without interest) equal to the dividends that have been
      paid
      on such shares with respect to record dates occurring on and after the date
      of
      the related Restricted Stock Award.

     

    (g)
        Forfeiture
      of Restricted Stock Awards.
      In the
      event of the forfeiture of a Restricted Stock Award, by reason of a
      Participant’s termination of employment or termination of service as a
      Non-Employee Director prior to vesting, the failure to achieve a Performance
      Goal or otherwise, the Corporation shall take such steps as may be necessary
      to
      cancel the affected shares and return the same to its treasury.

     

    (h)
        Assignment,
      Transfer, Etc. of Restricted Stock Rights.
      The
      potential rights of a Participant to shares of Common Stock subject to a
      Restricted Stock Award may not be assigned, transferred, sold, pledged,
      hypothecated, or otherwise encumbered or disposed of until such time as
      unrestricted certificates for such shares are received by him or
      her.

     

    Item
      7.   ADJUSTMENT
      PROVISIONS

     

    (a)
        Share
      Adjustments.

     

    (1)
        In
      the
      event that the shares of Common Stock of the Corporation, as presently
      constituted, shall be changed into or exchanged for a different number or kind
      of shares of stock or other securities of the Corporation, or if the number
      of
      such shares of Common Stock shall be changed through the payment of a stock
      dividend, stock split, or reverse stock split, then (i) the shares of
      Common Stock authorized hereunder to be made the subject of Restricted Stock
      Awards, (ii) the shares of Common Stock then subject to outstanding
      Restricted Stock Awards, (iii) the nature and terms of the shares of stock
      or securities subject to Restricted Stock Awards hereunder shall be increased,
      decreased, or otherwise changed to such extent and in such manner as may be
      necessary or appropriate to reflect any of the foregoing events.

     

    (2)
        If
      there
      shall be any other change in the number or kind of the outstanding shares of
      the
      Common Stock of the Corporation, or of any stock or other securities into which
      such Common Stock shall have been changed, or for which it shall have been
      exchanged, and if a majority of the disinterested members of the Board shall,
      in
      its sole discretion, determine that such change equitably requires an adjustment
      in any Restricted Stock Award which was theretofore granted or which may
      thereafter be granted under the Plan, then such adjustment shall be made in
      accordance with such determination.

     

    (3)
        The
      grant
      of a Restricted Stock Award pursuant to the Plan shall not affect in any way
      the
      right or power of the Corporation to make adjustments, reclassifications,
      reorganizations, or changes of its capital or business structure, to merge,
      to
      consolidate, to dissolve, to liquidate, or to sell or transfer all or any part
      of its business or assets.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (b)
        Corporate
      Changes.
      A
      liquidation or dissolution of the Corporation, a merger or consolidation in
      which the Corporation is not the surviving Corporation or a sale of all or
      substantially all of the Corporation’s assets, shall cause each outstanding
      Restricted Stock Award to terminate, except to the extent that another
      corporation may and does, in the transaction, assume and continue the Restricted
      Stock Award or substitute its own awards.

     

    (c)
        Fractional
      Shares.
      Fractional shares resulting from any adjustment in Restricted Stock Awards
      pursuant to this Article may be settled as the Committee shall
      determine.

     

    (d)
        Binding
      Determination.
      To the
      extent that the foregoing adjustments relate to stock or securities of the
      Corporation, such adjustments shall be made by a majority of the disinterested
      members of the Board, whose determination in that respect shall be final,
      binding and conclusive. Notice of any adjustment shall be given by the
      Corporation to each holder of a Restricted Stock Award which shall have been
      so
      adjusted.

     

    Item
      8.   GENERAL
      PROVISIONS

     

    (a)
        Effective
      Date.
      The
      Plan shall become effective upon the approval of the Plan by the shareholders
      of
      the Corporation within 12 months of adoption by the Board.

     

    (b)
        Termination
      of the Plan.
      Unless
      previously terminated by the Board, the Plan shall terminate on, and no
      Restricted Stock Award shall be granted after, the day immediately preceding
      the
      tenth anniversary of its adoption by the Board.

     

    (c)
        Limitation
      on Termination, Amendment or Modification.

     

    (1)
        The
      Board
      may at any time terminate, amend, modify or suspend the Plan, provided that,
      without the approval of the shareholders of the Corporation, no amendment or
      modification shall be made solely by the Board which:

     

    1.
        increases
      the maximum number of shares of Common Stock as to which Restricted Stock Awards
      may be granted under the Plan (except as provided in
      Section 7.1);

     

    2.
        changes
      the class of eligible Participants; or

     

    3.
        otherwise
      requires the approval of shareholders under applicable state law or under
      applicable federal law to avoid potential liability or adverse consequences
      to
      the Corporation or a Participant.

     

    (2)
        No
      amendment, modification, suspension or termination of the Plan shall in any
      manner affect any Restricted Stock Award theretofore granted under the Plan
      without the consent of the Participant or any person validly claiming under
      or
      through the Participant.

     

    (d)
        No
      Right to Grant of Award or Continued Employment or Service.
      Nothing
      contained in this Plan or otherwise shall be construed to (a) require the
      grant of a Restricted Stock Award to an individual who qualifies as an Employee
      or Non-Employee Director, or (b) confer upon a Participant any right to
      continue in the employ or service of the Corporation or any Subsidiary or limit
      in any respect the right of the Corporation or of any Subsidiary to terminate
      the Participant’s employment or service at any time and for any
      reason.

     

    (e)
        No
      Obligation.
      No
      exercise of discretion under this Plan with respect to an event or person shall
      create an obligation to exercise such discretion in any similar or same
      circumstance, except as otherwise provided or required by law.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (f)
        Withholding
      Taxes.

     

    (1)
        Subject
      to the provisions of Subsection (b), the Corporation will require, where
      sufficient funds are not otherwise available, that a Participant who is an
      Employee pay or reimburse to it any withholding taxes at such time as
      withholding is required by law.

     

    (2)
        With
      the
      permission of the Committee, a Participant who is an Employee may satisfy the
      withholding obligation described in Subsection (a), in whole or in part, by
      electing to have the Corporation withhold shares of Common Stock (otherwise
      issuable to him or her) having a fair market value equal to the amount required
      to be withheld. An election by a Participant who is an Employee to have shares
      withheld for this purpose shall be subject to such conditions as may then be
      imposed thereon by any applicable securities law.

     

    (g)
        Listing
      and Registration of Shares.

     

    (1)
        No
      Common
      Stock share certificate shall be delivered, if at any relevant time the
      Committee determines in its discretion that the listing, registration or
      qualification of the shares of Common Stock subject to a Restricted Stock Award
      on any securities exchange or under any applicable law, or the consent or
      approval of any governmental regulatory body, is necessary or desirable as
      a
      condition of, or in connection with, such Restricted Stock Award, until such
      listing, registration, qualification, consent, or approval shall have been
      effected or obtained free of any conditions not acceptable to the
      Committee.

     

    (2)
        If
      a
      registration statement under the Securities Act with respect to the shares
      issuable under the Plan is not in effect at any relevant time, as a condition
      of
      the issuance of the shares, a Participant (or any person claiming through a
      Participant) shall give the Committee a written or electronic statement,
      satisfactory in form and substance to the Committee, that he or she is acquiring
      the shares for his or her own account for investment and not with a view to
      their distribution. The Corporation may place upon any stock certificate for
      shares issued under the Plan the following legend or such other legend as the
      Committee may prescribe to prevent disposition of the shares in violation of
      the
      Securities Act or other applicable law:

     

    ‘THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 (“ACT”) AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED
      OR OTHERWISE TRANSFERRED OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT WITH RESPECT TO THEM UNDER THE ACT OR A WRITTEN OPINION
      OF COUNSEL FOR THE CORPORATION THAT REGISTRATION IS NOT REQUIRED.’

     

    (h)
        Disinterested
      Director.
      For
      purposes of this Plan, a director shall be deemed “disinterested” if such person
      could qualify as a member of the Committee under Section 3.1.

     

    (i)
        Gender;
      Number.
      Words
      of one gender, wherever used herein, shall be construed to include each other
      gender, as the context requires. Words used herein in the singular form shall
      include the plural form, as the context requires, and vice versa.

     

    (j)
        Applicable
      Law.
      Except
      to the extent preempted by federal law, this Plan document, and the Agreements
      issued pursuant hereto, shall be construed, administered, and enforced in
      accordance with the domestic internal law of the Commonwealth of
      Pennsylvania.

     

    (k)
        Headings.
      The
      headings of the several articles and sections of this Plan document have been
      inserted for convenience of reference only and shall not be used in the
      construction of the same.

     

    
      
        
        

      

      
        8

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