Document:

EX-4.4

 Exhibit 4.4 

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE “DEPOSITORY”), TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE TO BE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY AND ANY
AMOUNT PAYABLE THEREUNDER IS MADE PAYABLE TO CEDE & CO. OR TO SUCH OTHER NAME, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN. 
 UNLESS AND UNTIL THIS SECURITY IS EXCHANGED IN WHOLE OR IN PART FOR CERTIFICATED SECURITIES REGISTERED IN THE NAMES OF THE VARIOUS
BENEFICIAL HOLDERS HEREOF AS THEN CERTIFIED TO THE COMPANY BY THE DEPOSITORY OR A SUCCESSOR DEPOSITORY, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE
DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. 

COSTCO WHOLESALE CORPORATION 

3.000% SENIOR NOTE DUE MAY 18, 2027 
  

			
	No. [R-1/R-2]	 	$[500,000,000/500,000,000]

 CUSIP: 22160K AM7 
 ISIN:
US22160KAM71 
 COMMON CODE: 161443271 
 COSTCO
WHOLESALE CORPORATION, a Washington corporation (herein called the “Company”, which term shall refer to such Company until a successor corporation shall have become such pursuant to the provisions of the Indenture referred to herein and
thereafter “Company” shall mean such successor corporation), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of $[500,000,000/500,000,000] ([Five Hundred Million/Five Hundred
Million] Dollars) on May 18, 2027 (the “Stated Maturity Date”), unless redeemed in full prior to such date in accordance with the provisions specified herein, and to pay interest on the outstanding principal amount hereof from
May 18, 2017, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semiannually on May 18 and November 18 in each year, commencing November 18, 2017, at the rate of 3.000% per
annum, until the principal hereof is paid or made duly available for payment. 
 The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest, which shall be (in each case whether or not a Business Day) May 3 or November 3, as the case may be, next preceding such Interest Payment Date. Any interest not punctually paid or duly provided for shall forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee referred to herein, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 

Payment of the principal of and Make-Whole Amount, if any, and interest on this Security will be made in immediately available funds at the
corporate trust office of U.S. Bank National Association in St. Paul, Minnesota or in the Borough of Manhattan, in The City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts. 

 This Security is one of a duly authorized issue of debt securities of the Company (the “Debt
Securities”), issued and to be issued in one or more series under that certain First Supplemental Indenture dated as of March 20, 2002 (the “Supplemental Indenture”), to that certain Senior Debt Securities Indenture dated as of
October 26, 2001 (together with the Supplemental Indenture, the “Indenture,” which term includes any future indentures supplemental thereto), between the Company and U.S. Bank National Association, as Trustee (the
“Trustee,” which term includes any successor trustee or trustees under the Indenture), to which Indenture reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the
Company, the Trustee and the Holders of the Debt Securities and of the terms upon which the Debt Securities are, and are to be, authenticated and delivered. Capitalized terms used herein but not otherwise defined shall have the meanings assigned to
them in the Indenture. 
 This Security is one of the series of Debt Securities designated as “3.000% Senior Notes due May 18,
2027” (the “Securities”) limited initially in aggregate principal amount to $1,000,000,000 (One Billion Dollars) subject to the provisions of the Indenture. 

At any time prior to February 18, 2027, the Company may, at its option, at any time and from time to time, redeem all or any portion of
the Securities on not less than 30 nor more than 60 days’ prior notice mailed to the Holders of such Securities to be redeemed. The Securities will be redeemable at a Redemption Price as calculated by the Company, plus accrued interest to
the Redemption Date, equal to the greater of (1) 100% of the principal amount of the Securities to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Securities to be
redeemed that would be due after the related Redemption Date but for such redemption (except that, if such Redemption Date is not an Interest Payment Date, the amount of the next succeeding scheduled interest payment will be reduced by the amount of
interest accrued thereon to the Redemption Date), discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) (the “Make-Whole Amount”). The discount rate for the Securities will be
the Treasury Rate plus 15 basis points. 
 At any time on or after February 18, 2027, the Company may, at its option, at any time and
from time to time, redeem all or any portion of the Securities on not less than 30 nor more than 60 days’ prior notice mailed to the Holders of such Securities to be redeemed at a Redemption Price equal to 100% of the principal amount of the
Securities to be redeemed, plus accrued interest to the Redemption Date. 
 Notwithstanding anything contained in the Indenture to the
contrary, “Treasury Rate,” “Comparable Treasury Issue,” “Comparable Treasury Price,” “Reference Treasury Dealer” and “Reference Treasury Dealer Quotations” as used with respect to this Security,
shall have the following meanings: 
 “Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the
semiannual equivalent yield to maturity (computed as of the second Business Day immediately preceding such redemption date or, in the case of satisfaction and discharge and defeasance, as of the second Business Day prior to the deposit of funds to
pay the Securities with the Trustee) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker that would be
utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Securities of the relevant series. 

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company. 

“Comparable Treasury Price” means, with respect to any Redemption Date, (1) the average of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) on the third Business Day preceding such redemption date or, in the case of satisfaction and discharge and defeasance, as of the third Business Day preceding
the deposit of funds to pay the Securities with the Trustee, as set forth in the daily statistical release (or any successor release) published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for
U.S. Government Notes” or (2) if such release (or any successor release) is not published or does not contain such prices on such Business Day, (a) the average of the Reference 

  
 -2- 

 
Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (b) if the Company obtains fewer than four such
Reference Treasury Dealer Quotations, the average of all Quotations obtained. 
 “Reference Treasury Dealer” means Citigroup
Global Markets Inc., or its successor, and two other nationally recognized investment banking firms that are Primary Treasury Dealers specified from time to time by the Company, except that if any of the foregoing ceases to be a primary
U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall designate as a substitute another nationally recognized investment banking firm that is a Primary Treasury Dealer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average,
as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer as of 3:30 p.m., New
York City time, on the third Business Day preceding such redemption date or, in the case of satisfaction and discharge and defeasance, as of the third business day preceding the deposit of funds to pay the Securities with the Trustee. 

In the event of a Change of Control Triggering Event, unless the Company has exercised its right to redeem this Security, the Holder has the
right to require the Company to purchase for cash this Security. The Company will purchase this Security at a price equal to 101% of the aggregate principal amount of Securities to be purchased plus accrued and unpaid interest to, but excluding, the
Change of Control Payment Date (the “Change of Control Payment”). 
 Within 15 days following any Change of Control
Triggering Event, the Company must mail written notice to the Trustee and each Holder of Securities describing the transaction or transactions constituting a Change of Control Triggering Event and publish the notice in an Authorized Newspaper. The
notice must state (1) the events causing the Change of Control Triggering Event and the date of the Change of Control Triggering Event, (2) the date by which notice of the Change of Control Triggering Event is required to be given,
(3) the Change of Control Payment Date, (4) the Change of Control Payment, (5) the name and address of the Trustee, (6) the procedure for surrendering the Securities to the Trustee or other designated office or agency for
payment, (7) a statement of the Company’s obligation to make prompt payment upon proper surrender of the Securities, (8) the procedure for Holders’ exercise of rights of sale of the Securities and (9) the procedure by which
a holder may withdraw tender of the Securities. 
 On the Change of Control Payment Date, the Company will (1) accept for payment all
Securities, in whole or in part, properly tendered, (2) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities, in whole or in part, properly tendered and (3) deliver or cause to be
delivered to the Trustee the Securities properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Securities, in whole or in part, being purchased. 

The Company will not purchase any Securities if there has occurred and is continuing at the Change of Control Payment Date an Event of Default
under the Indenture, other than default in payment of the purchase price payable for the Securities upon a Change of Control Triggering Event. 

Notwithstanding anything contained in the Indenture to the contrary, “Change of Control Triggering Event,” “Below Investment
Grade Rating Event,” “Change of Control,” “Continuing Directors,” “Investment Grade Rating,” “Moody’s,” “Rating Agencies,” “S&P” and “Change of Control Payment Date”
as used with respect to this Security, shall have the following meanings: 
 “Below Investment Grade Rating Event” means the
Securities are rated below an Investment Grade Rating by each of the Rating Agencies (as defined below) on any date from the date of the public notice of an arrangement that would, if consummated, result in a Change of Control until the end of the
60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Securities is under publicly announced consideration for possible downgrade by any of the Rating
Agencies). 

  
 -3- 

 “Change of Control” means the occurrence of any of the following: (1) any event
requiring the filing of any report under or in response to Schedule 13D or 14D-1 pursuant to the Securities Exchange Act of 1934, as amended, disclosing beneficial ownership of either 50% or more of the Company’s common stock then
outstanding or 50% or more of the voting power of the Company’s voting stock then outstanding; (2) the completion of any sale, transfer, lease, or conveyance of the Company’s properties and assets substantially as an entirety to any
person or persons that is not a Subsidiary of the Company, as such term is defined in the Indenture; (3) the completion of a consolidation or merger of the Company with or into any other person or entity in a transaction in which either the
Company is not the sole surviving corporation or the Company’s common stock existing before the transaction is converted into cash, securities or other property and in which those exchanging the Company’s common stock do not, as a result
of the transaction, receive either 75% or more of the survivor’s common stock or 75% or more of the voting power of the survivor’s voting stock or (4) the first day on which a majority of the members of the Company’s Board of
Directors are not Continuing Directors. 
 “Change of Control Payment Date” means the date, which will be no earlier than
30 days and no later than 60 days after the date of notice of the occurrence of the Change of Control Triggering Event is mailed, by which the Company must purchase the Securities the Company is obligated to purchase pursuant to the
Holder’s exercise of rights on a Change of Control. 
 “Change of Control Triggering Event” means the occurrence of both a
Change of Control and a Below Investment Grade Rating Event. 
 “Continuing Directors” means, as of any date of determination, any
member of the Company’s Board of Directors who (1) was a member of such Board of Directors on May 9, 2017; or (2) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing
Directors who were members of such Board of Directors at the time of such nomination or election (either by a specific vote or by approval of the Company’s proxy statement in which such member was named as a nominee for election as a director,
without objection to such nomination). 
 “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the
equivalent) by Moody’s and BBB- (or the equivalent) by S&P. 
 “Moody’s” means Moody’s Investors Service, Inc.

 “Rating Agencies” means (1) each of Moody’s and S&P; and (2) if either of Moody’s or S&P ceases to
rate the Securities or fails to make a rating of the Securities publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) of
the Securities Exchange Act of 1934, as amended, selected by the Company (as certified by a resolution of its Board of Directors) as a replacement agency for Moody’s or S&P, or both of them, as the case may be. 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. 

Interest payable on this Security on any Interest Payment Date, Stated Maturity Date and Redemption Date, as the case may be, will be the
amount of interest accrued during the applicable Interest Period. 
 An “Interest Period” is each period from and including the
immediately preceding Interest Payment Date (or from and including May 18, 2017 in the case of the initial Interest Period) to but excluding the applicable Interest Payment Date, Stated Maturity Date or the Redemption Date, as the case may be.
If any Interest Payment Date, Stated Maturity Date or Redemption Date falls on a day that is not a Business Day, principal, Make-Whole Amount, if any, and interest payable on such date will be paid on the succeeding Business Day with the same force
and effect as if it were paid on the date such payment was due, and no interest will accrue on the amount so payable for the period from and after such date to such succeeding Business Day. 

“Business Day” means any day, other than a Saturday or a Sunday, on which banking institutions in New York, New York are not
required or authorized by law or executive order to close. 
 If an Event of Default with respect to Securities shall occur and be
continuing, the principal of the Securities may, and in certain cases, shall be declared due and payable in the manner and with the effect provided in the Indenture. 

  
 -4- 

 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the Holders of the Debt Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less
than a majority in principal amount of the Securities at the time Outstanding of all series to be affected (voting as one class). The Indenture also provides that, regarding the Debt Securities of any series, the Holders of not less than a majority
in principal amount of the Debt Securities at the time Outstanding of such series may waive certain past defaults and their consequences on behalf of the Holders of all Debt Securities of such series. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Security. 
 No reference herein to the Indenture and no provisions of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any Make-Whole Amount and interest on this Security at the times, place and rate, and in the coin or currency, herein and in the
Indenture provided; subject, however, to the provisions for discharge of the Company from its obligations under the Securities upon satisfaction of the conditions set forth in the Indenture. 

As provided in the Indenture and subject to certain limitations herein and therein set forth, the transfer of this Security is registrable in
the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and Make-Whole Amount, if any, and interest on this Security are payable, when duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities,
of authorized denominations and for a like aggregate principal amount and tenor will be issued to the designated transferee or transferees. 

The Securities are issuable only in registered form without coupons in denominations of $2,000 and any larger amount that is an integral
multiple of $1,000. As provided in the Indenture and subject to certain limitations herein and therein set forth, Securities are exchangeable for a like aggregate principal amount and tenor of Securities of a different authorized denomination, upon
surrender of the Securities to be exchanged at the office or agency of the Company in any place where the principal of and Make-Whole Amount, if any, and interest on this Security are payable. 

No service charge shall be made for any registration of transfer or exchange of this Security, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and none of
the Company, the Trustee or any such agent shall be affected by notice to the contrary. 
 This Security is not subject to a sinking fund
requirement. 
 As provided in the Indenture, no recourse shall be had for the payment of the principal of or Make-Whole Amount or the
interest on this Security, or any part hereof, or for any claim based hereon or otherwise in respect hereof, or of the indebtedness represented hereby, or upon any obligation, covenant or agreement of the Company in the Indenture, against any
incorporator, direct or indirect stockholder, officer or director, as such, past, present or future, of the Company or of any successor corporation (either directly or through the Company or any such successor corporation), whether by virtue of any
constitutional provision, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all liability, if any, of that character against every such incorporator, stockholder, officer and director being by the acceptance
hereof, and as a condition of and as part of the consideration for the issue hereof, expressly waived and released. 
 The Indenture and
this Security shall be governed by and construed in accordance with the laws of the State of New York. 

  
 -5- 

 Except as otherwise provided herein, all terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture. 
 Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 -6- 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

 

			
	COSTCO WHOLESALE CORPORATION
		
	By:	 	 
		 	Richard A. Galanti
		 	Executive Vice President and
		 	Chief Financial Officer

  

	
	Attest:
	
	   

	John Sullivan, Secretary

 Company Signature Page to No. [R-1/R-2] 3.000% Senior Note Due May 18, 2027 

  

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated and issued under the within mentioned Indenture. 

Dated: May 18, 2017 
  

			
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Trustee

		
	By:	 	 
		 	Authorized Signatory

 Trustee Signature Page to No. [R-1/R-2] 3.000% Senior Note Due May 18, 2027 

  

 ABBREVIATIONS 

The following abbreviations, when used in the inscription on this Security, shall be construed as though they were written out in full
according to applicable laws or regulations. 
  

					
	 TEN COM
 TEN ENT
	 	 —     as tenants in common

—     as tenants by the entireties with right of survivorship and not as tenants in
common
	 	UNIF GIFT MIN ACT
	JT TEN	 	 —     as joint tenants with right of survivorship and not as tenants
in common
	 	
                          
           Custodian
 (Cust)

			
		 		 	 (Minor)
 Under Uniform Gifts

to Minor Act

			
		 		 	(State)

 Additional abbreviations may also be used though not in the above list. 

 
  

 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to 

INSERT SOCIAL SECURITY OR 
 OTHER IDENTIFYING NUMBER OF 

ASSIGNEE 
  

	
	 
	
	PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE
	 
	
	 
	
	the within Security of Costco Wholesale Corporation, and irrevocably constitutes and appoints
                                         
                to transfer said Security on the books of the within named Company, with full power of substitution in the
premises.

			
		
	Dated:	 	 
		
		 	 

 The signature to this assignment must correspond with the name as written upon the face of the Security in
every particular without alteration or enlargement, or any change whatsoever. 
 Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Security Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee
program” as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.EXHIBIT
10.1

 

2017
LONG-TERM INCENTIVE PLAN

OF

CODORUS
VALLEY BANCORP, INC.

 

ARTICLE
I

GENERAL
PROVISIONS

 

1.1         PURPOSES

 

The
purposes of the 2017 Long-Term Incentive Plan (the “Plan”) are to advance the long-term success of Codorus Valley
Bancorp, Inc. (the “Company” or “Codorus”), and to increase shareholder value by providing the incentive
of long-term stock-based awards and cash awards to officers, non-employee directors and key employees. The Plan is designed to:
(i) encourage stock ownership by Participants (hereinafter defined) to further align their interests with the interests of shareholders
of the Company, (2) ensure that compensation practices are competitive in the industry and (3) assist in the attraction and retention
of key employees vital to the Company’s long-term success.

 

1.2         DEFINITIONS

 

For
the purpose of the Plan, the following terms shall have the meanings indicated:

 

(a)         “Board”
means the Board of Directors of the Company.

 

(b)         “Cash
Incentive Awards” means a right to receive a cash payment pursuant to any award made pursuant to Article VII hereof.

 

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

 

(i)       The
acquisition in one or more transactions, other than from the Company, by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act), other than the Company or any employee benefit plan (or related trust) sponsored
or maintained by the Company, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
a number of the Company’s Common Stock in excess of 30% of the Company’s Common Stock unless such acquisition has
been approved by the Board;

 

(ii)       Any
election has occurred of persons to the Board that causes a majority of the Board to consist of persons other than: (A) persons
who were members of the Board on the effective date of the Plan, as provided in Section 11.1 and (B) persons who were nominated
for election as members of the Board at a time when a majority of the Board consisted of persons

 

     

     

    

 

who were members of the Board
on the effective date of the Plan, provided, however, that any person nominated for election by a Board at least a majority of
whom constituted persons described in clauses (A) and (B) or by persons who were themselves nominated by such Board shall, for
this purpose, be deemed to have been nominated by a Board composed of persons described in clause (A);

 

(iii)       The
consummation (i.e. closing) of a reorganization, merger or consolidation involving the Company, unless, following such reorganization,
merger or consolidation, all or substantially all of the individuals and entities who were the beneficial owners of the Company’s
Common Stock immediately prior to such reorganization, merger or consolidation, following such reorganization, merger or consolidation
beneficially own, directly or indirectly, more than 50% of the then combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors or trustees of the entity resulting from such reorganization, merger or
consolidation in substantially the same proportion as their ownership of the Company’s Common Stock immediately prior to
such reorganization, merger or consolidation;

 

(iv)       The
consummation (i.e. closing) of a sale or other disposition of all or substantially all the assets of the Company, unless, following
such sale or disposition, all or substantially all of the individuals and entities who were the beneficial owners of the Company’s
Common Stock immediately prior to such sale or disposition, following such sale or disposition beneficially own, directly or indirectly,
more than 50% of the then combined voting power of the then outstanding voting securities entitled to vote generally in the election
of directors or trustees of the entity purchasing such assets in substantially the same proportion as their ownership of the Company’s
Common Stock immediately prior to such sale or disposition; or

 

(v)       A
complete liquidation or dissolution of the Company.

 

Notwithstanding
the foregoing, if it is determined that an award hereunder is subject to the requirements of Section 409A of the Code and payable
upon a Change in Control, the Company will not be deemed to have undergone a Change in Control unless the Company is deemed to
have undergone a “change in control event” pursuant to the definition of such term in Section 409A.

 

(d)       “Code”
means the Internal Revenue Code of 1986, as amended, including any successor law thereto.

 

(e)       “Committee”
means the Compensation Committee of the Board or the full Board, as the case may be.

 

(f)       “Common
Stock” means the Common Stock of the Company, par value $2.50 per share.

 

(g)       “Company”
means Codorus and solely for purposes of determining: (i) eligibility for participation in the Plan, (ii) employment and (iii)
the establishment of performance goals, shall include any corporation, partnership or other organization of which Codorus owns
or

 

     

     

    

 

controls, directly or indirectly, not less than 50 percent of the total combined voting power of all classes of stock or other
equity interests. For purposes of this Plan, the terms “Codorus” and “Company” shall include any successor
to Codorus.

 

(h)       “Disability”
means total and permanent disability within the meaning of Section 22(e)(3) of the Code.

 

(i)       “Dividend
Equivalent” means an amount equal to the cash dividend paid on one share of Common Stock for each Performance Restricted
Share or Restricted Stock Unit. All Dividend Equivalents will be reinvested in Performance Restricted Shares or Restricted Stock
Units at a purchase price equal to the Fair Market Value on the dividend date.

 

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

 

(k)       “Fair
Market Value” means as of any date: (i) the average of the closing bid and asked prices on such date of the Common Stock
as quoted by The NASDAQ Stock Market or (ii) as the case may be, the last reported sales price of the Common Stock on such date
as reported by The NASDAQ Stock Market or the principal national securities exchange on which such stock is listed and traded,
or in each such case where there is no trading on such date, on the first previous date on which there is such trading.

 

(l)       “Incentive
Stock Option” means a Stock Option which meets the definition under Section 422 of the Code.

 

(m)       “Key
Employee” means an employee who, in the judgment of the Committee, is considered especially important to the future of the
Company.

 

(n)       “Non-Employee
Director” means a member of the Board who is not an employee of the Company.

 

(o)       “Nonstatutory
Stock Option” means a Stock Option which does not meet the definition of an Incentive Stock Option.

 

(p)       “Participant”
means any officer, Non-Employee Director or Key Employee who has met the eligibility requirements set forth in Section 1.6 hereof
and to whom an award has been made and is outstanding under the Plan.

 

(q)       “Performance
Measures” shall mean the Performance Measures described in Section 4.4 of the Plan.

 

(r)       “Performance
Period” means, in relation to Performance Restricted Shares, any period for which performance goals have been established.

 

(s)       “Performance
Restricted Share” means a right granted to a Participant pursuant to Article IV.

 

     

     

    

 

(t)       “Restricted
Stock Award” means an award of Common Stock granted to a Participant pursuant to Article V which is subject to a Restriction
Period.

 

(u)       “Restricted
Stock Unit” means a bookkeeping entry representing the equivalent of one or more shares of Common Stock granted to a Participant
pursuant to Article V which is subject to a Restriction Period.

 

(v)       “Restriction
Period” means in relation to Restricted Stock Awards and Restricted Stock Units, the period of time (if any) during which:
(i) such shares or units, as the case may be, are subject to forfeiture pursuant to the Plan and (ii) such shares or units, as
the case may be, may not be sold, assigned, transferred, pledged or otherwise disposed of by the Participant.

 

(w)       “Retirement”
means an employee Participant’s termination from employment with the Company after the Participant has attained age 65 and
has completed a minimum of five years of service with the Company, or the Participant has attained age 60 and has completed a
minimum of 10 years of employment with the Company, or termination of employment under circumstances which the Committee deems
equivalent to retirement, or a Non-Employee Director’s termination of service as a Non-Employee Director under circumstances
which the Committee deems equivalent to retirement.

 

(x)       “Stock
Appreciation Right” means a right granted to a Participant pursuant to Article III to surrender to the Company all or any
portion of the related Stock Option and to receive in cash or in shares of Common Stock an amount equal to the excess of the Fair
Market Value over the option price on the date of such exercise.

 

(y)       “Stock
Award” means an award of Common Stock granted to a Participant pursuant to Article V which is not subject to a Restriction
Period.

 

(z)       “Stock
Option” means a right granted to a Participant pursuant to Article II, to purchase, before a specified date and at a specified
price, a specified number of shares of Common Stock.

 

1.3         ADMINISTRATION

 

The
Plan shall be administered by the Committee; provided, however, that the Board shall administer the Plan as it relates to the
terms, conditions and grant of awards to Non-Employee Directors. A majority of the Committee shall constitute a quorum, and the
acts of a majority of the members present at any meeting at which a quorum is present, or acts approved in writing by a majority
of the Committee, shall be deemed the acts of the Committee. Subject to the provisions of the Plan and to directions by the Board,
the Committee is authorized to interpret the Plan, to adopt administrative rules, regulations and guidelines for the Plan, and
to impose such terms, conditions and restrictions on grants as it deems appropriate. The Committee, in its discretion, may allow
certain optionees holding unexercised Incentive Stock Options to convert such options to Nonstatutory Stock Options. The Committee
may, with respect to Participants who are not subject to Section 16(b) of the Exchange Act or “covered employees”
within the meaning of Section 162(m) of the Code (“Section 162(m)”), delegate

 

     

     

    

 

such of its powers and authority under
the Plan as it deems appropriate to designated officers or employees of the Company.

 

1.4         TYPES
OF GRANTS UNDER THE PLAN

 

Grants
under the Plan may be in the form of any one or more of the following:

 

(a)       Nonstatutory
Stock Options;

 

(b)       Incentive
Stock Options;

 

(c)       Stock
Appreciation Rights;

 

(d)       Performance
Restricted Shares;

 

(e)       Restricted
Stock Awards;

 

(f)       Restricted
Stock Units;

 

(g)       Stock
Awards; and

 

(h)       Cash
Incentive Awards.

 

1.5         SHARES
SUBJECT TO THE PLAN AND INDIVIDUAL AWARD LIMITATION

 

(a)       A
maximum of 360,000 shares of Common Stock may be issued under the Plan. All such shares may be granted in the form of Incentive
Stock Options, Nonstatutory Stock Options, Stock Appreciation Rights, Performance Restricted Shares, Restricted Stock Awards,
Restricted Stock Units and Stock Awards. The total number of shares authorized is subject to adjustment as provided in Section
9.1 hereof. Shares of Common Stock issued under the Plan may be treasury shares or authorized but unissued shares. No fractional
shares shall be issued under the Plan. Notwithstanding anything in the Plan to the contrary, the maximum aggregate number of shares
of Common Stock that shall be subject to stock-based awards made under the Plan to any one individual in any calendar year shall
be 100,000.

 

(b)       If
any Stock Option granted under the Plan expires or terminates, the underlying shares of Common Stock may again be made available
for the purposes of the Plan. Any shares of Common Stock that have been granted as Restricted Stock Awards, or that have been
reserved for distribution in payment for Performance Restricted Shares or Restricted Stock Units but are later forfeited or for
any other reason are not payable under the Plan, may again be made available for the purposes of the Plan. Furthermore, shares
of Common Stock that are: (i) tendered or withheld in payment of the exercise price of any Stock Option or in satisfaction of
withholding tax obligations arising from any Award and (ii) shares of Common Stock repurchased by the Company that have been designated
for allocation to the Plan, shall be available for issuance under the Plan.

 

     

     

    

 

(c)       The
maximum amount of cash-based awards intended to constitute “performance-based compensation” under Section 162(m) granted
to any Participant in any calendar year shall not exceed $1,000,000.

 

(d)       No
more than $200,000 may be granted in share-based awards under the Plan during any one year to a Participant who is a Non-Employee
Director (based on the Fair Market Value of the shares of Common Stock underlying the award as of the applicable grant date).

 

1.6         ELIGIBILITY
AND PARTICIPATION

 

Participation
in the Plan shall be limited to officers, who may also be members of the Board, other Key Employees of the Company who are so
designated by the Committee in its discretion, Non-Employee Directors and consultants to the Company.

 

1.7         NO
REPRICING; NO AUTOMATIC OPTION GRANTS (RELOADS)

 

Without
the prior approval of the shareholders, the Company may not:

 

(a)       Cancel
a previously granted Stock Option or Stock Appreciation Right in exchange for cash or a replacement Stock Option or Stock Appreciation
Right with a lower (or no) exercise price;

 

(b)       Provide
for any automatic grant of a new Stock Option or Stock Appreciation Right upon a Participant’s exercise of any Stock Option
or Stock Appreciation Right granted under the Plan; or

 

(c)       Amend
a Stock Option or Stock Appreciation Right to lower the exercise price;

 

except
for adjustments required or otherwise made under Section 9.1, or take any other action that could constitute a “repricing”
under generally accepted accounting principles.

 

1.8         MINIMUM
VESTING

 

Except
in the case of awards granted to Non-Employee Directors, and except in the case of substitute awards or awards granted as an inducement
to join the Company as a new employee to replace forfeited awards from a former employer, any award other than a Stock Award or
a Cash Incentive Award granted under the Plan shall be subject to a minimum vesting period of twelve (12) months. Notwithstanding
the foregoing, the Committee may permit acceleration of vesting in the event of the Participant’s death, Disability or Retirement,
or upon a Change of Control.

 

1.9         CLAWBACKS

 

Awards
shall be subject to the requirements of: (i) Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding
recovery of erroneously awarded compensation) and any implementing rules and regulations thereunder; (ii) similar rules under

 

     

     

    

 

the applicable laws of any other jurisdiction; (iii) any compensation recovery policies adopted by the Company to implement any
such requirements; and (iv) any other compensation recovery policies as may be adopted from time to time by the Company, all to
the extent determined by the Committee in its discretion to be applicable to a Participant.

 

ARTICLE
II

STOCK
OPTIONS

 

2.1         GRANT
OF STOCK OPTIONS

 

The
Committee may from time to time, subject to the provisions of the Plan, grant Stock Options to Participants. The Committee shall
determine the number of shares of Common Stock to be covered by each Stock Option and shall have the authority to grant Incentive
Stock Options, Nonstatutory Stock Options or a combination thereof; provided, however, that Incentive Stock Options may be granted
only to Participants who are employees of the Company and may not be granted to Non-Employee Directors. Furthermore, the Committee
may grant a Stock Appreciation Right in connection with a Stock Option, as provided in Article III.

 

2.2         INCENTIVE
STOCK OPTION EXERCISE LIMITATIONS

 

The
aggregate Fair Market Value (determined at the time an Incentive Stock Option is granted) of the shares of Common Stock with respect
to which an Incentive Stock Option is exercisable for the first time by a Participant during any calendar year (under all plans
of the Company) shall not exceed $100,000 or such other limit as may be established from time to time under the Code.

 

2.3         OPTION
DOCUMENTATION

 

Each
Stock Option shall be evidenced by a written Stock Option agreement between the Company and the Participant to whom such option
is granted, specifying the number of shares of Common Stock that may be acquired by its exercise and containing such terms and
conditions consistent with the Plan as the Committee shall determine.

 

2.4         EXERCISE
PRICE

 

The
price at which each share covered by a Stock Option may be acquired shall be determined by the Committee at the time the option
is granted and shall not be less than the Fair Market Value of the underlying shares of Common Stock on the day the Stock Option
is granted. If an Incentive Stock Option is granted to an employee who, at the time such Option is granted, owns shares of the
Company possessing more than 10 percent of the total combined voting power of all classes of shares of the Company or its subsidiaries
(“10% Shareholder”), the exercise price of such Stock Option shall not be less than 110% of the Fair Market Value
of the underlying shares of Common Stock on the day such Stock Option is granted. The exercise price will be subject to adjustment
in accordance with the provisions of Section 9.1 of the Plan.

 

     

     

    

 

2.5         EXERCISE
OF STOCK OPTIONS

 

(a)       Exercisability.
Stock Options shall become exercisable at such times and upon the satisfaction of such conditions and in such installments as
the Committee may provide at the time of grant.

 

(b)       Option
Period. For each Stock Option granted, the Committee shall specify the period during which the Stock Option may be exercised,
provided that: (i) no Stock Option shall be exercisable after the expiration of ten years from the date the Stock Option was granted
and (ii) in the case of a 10% Shareholder, no Stock Option shall be exercisable after the expiration of five years from the date
the Stock Option was granted.

 

(c)       Exercise
in the Event of Termination of Employment.

 

(i)         Death:
Unless otherwise provided by the Committee at the time of grant, in the event of the death of the Participant, the Stock Option
must be exercised by the Participant’s estate or beneficiaries within one year following the death of the Participant and
prior to its expiration. Each Stock Option may be exercised as to all or any portion thereof regardless of whether or not fully
exercisable under the terms of the grant.

 

(ii)        Disability:
Unless otherwise provided by the Committee at the time of grant, in the event of the Disability of the Participant, the Stock
Option must be exercised within one year following the Participant’s termination of employment or service and prior to its
expiration. Each Stock Option may be exercised as to all or any portion thereof regardless of whether or not fully exercisable
under the terms of the grant.

 

(iii)       Retirement:
Unless otherwise provided by the Committee at the time of grant, in the event of the Retirement of the Participant, the Stock
Option must be exercised within one year following the Participant’s termination of employment or service and prior to its
expiration. An unexercised Incentive Stock Option will cease to be treated as such and will become a Nonstatutory Stock Option
three months following the date of Retirement. Each Stock Option may be exercised as to all or any portion thereof regardless
of whether or not fully exercisable under the terms of the grant.

 

(iv)      Other
Terminations: Unless otherwise provided by the Committee at the time of grant, in the event a Participant ceases to be an employee
or Non-Employee Director of the Company for any reason other than death, Disability or Retirement, Stock Options which are exercisable
on the date of termination must be exercised within three months after termination and prior to the expiration date of any such
Stock Option. All Stock Options which are not exercisable on the date of termination shall be cancelled.

 

(v)       Extension
of Exercise Period: Notwithstanding all other provisions under Section 2.5(c), in the event a Participant’s employment or
service is terminated, the Committee may, in its sole discretion, extend the post-termination period during which the Stock Option
may be exercised, provided however that such period may not extend beyond the original option period.

 

     

     

    

 

2.6         METHOD
OF EXERCISE

 

The
Stock Option may be exercised in whole or in part from time to time by written request received by the Secretary of the Company.
The exercise price of each share acquired pursuant to a Stock Option shall be paid in full at the time of each exercise of the
Stock Option either: (i) in cash, (ii) by delivering to the Company previously owned shares of Common Stock or (iii) in the discretion
of the Committee, by delivering to the Secretary of the Company a notice of exercise with an irrevocable direction to a broker-dealer
registered under the Securities Exchange Act of 1934, as amended, to sell a sufficient portion of the shares and deliver the sale
proceeds directly to the Company to pay the exercise price; (iv) in the discretion of the Committee, through an election to have
shares of Common Stock otherwise issuable to the Participant withheld to pay the exercise price of such Stock Option or (v) in
the discretion of the Committee, through any combination of the payment procedures set forth in (i) through (iv) above. However,
shares of Common Stock previously acquired by the Participant under the Plan or any other incentive plan of the Company shall
not be utilized for purposes of payment upon the exercise of a Stock Option unless those shares have been owned by the Participant
for a six month period or such longer period as the Committee may determine.

 

ARTICLE
III

STOCK
APPRECIATION RIGHTS

 

3.1         GRANT
OF STOCK APPRECIATION RIGHTS

 

The
Committee may, in its discretion, grant Stock Appreciation Rights in connection with all or any part of a Stock Option granted
under the Plan. Any Stock Appreciation Right granted in connection with a Stock Option shall be governed by the terms of the Stock
Option agreement and the Plan.

 

3.2         EXERCISE
OF STOCK APPRECIATION RIGHTS

 

Stock
Appreciation Rights shall become exercisable under the Stock Option terms set forth in Section 2.5 but shall be exercisable only
when the Fair Market Value of the shares subject thereto exceeds the exercise price of the related Stock Option.

 

3.3         METHOD
OF EXERCISE

 

(a)       Stock
Appreciation Rights shall permit the Participant, upon exercise of such rights, to surrender the related Stock Option, or any
portion thereof, and to receive, without payment to the Company (except for applicable withholding taxes), an amount equal to
the excess of the Fair Market Value over the exercise price. Such amount shall be paid in shares of Common Stock valued at Fair
Market Value on the date of exercise or in cash, or any combination of shares and cash, as determined by the Committee in its
discretion.

 

     

     

    

 

(b)       Upon
the exercise of a Stock Appreciation Right and surrender of the related Stock Option, or portion thereof, such Stock Option, to
the extent surrendered, shall be terminated and the shares covered by the Stock Option so surrendered shall no longer be available
for purposes of the Plan.

 

ARTICLE
IV

PERFORMANCE
RESTRICTED SHARES

 

4.1         GRANT
OF PERFORMANCE RESTRICTED SHARES

 

The
Committee may from time to time grant Performance Restricted Shares to Participants under which payment may be made in shares
of Common Stock if the performance of the Company meets certain goals established by the Committee. Such Performance Restricted
Shares shall be subject to such performance goals and, if earned, a vesting period, as the Committee shall determine.

 

4.2         PERFORMANCE
RESTRICTED SHARE AGREEMENT

 

Each
grant of Performance Restricted Shares shall be evidenced by a written agreement between the Company and Participant to whom such
Performance Restricted Shares are granted. The agreement shall specify the number of Performance Restricted Shares granted, the
terms and conditions of the grant, the duration of the Performance Period, the performance goals to be achieved, and the vesting
period applicable to shares of Common Stock earned.

 

4.3         COMMON
STOCK EQUIVALENT

 

Each
Performance Restricted Share shall be credited to an account to be maintained for each such Participant during the Performance
Period and shall be deemed to be the equivalent of one share of Common Stock. At the conclusion of the Performance Period, Performance
Restricted Shares earned, if any, shall be converted to shares of Common Stock subject to a vesting period.

 

4.4         PERFORMANCE
GOALS

 

Performance
Restricted Share awards shall be conditioned upon the Company’s attainment of a specified goal with respect to one or more
of the following performance measures: (i) total shareholder return; (ii) return on average shareholders’ equity; (iii)
return on capital; (iv) earnings per share; (v) return on average assets; (vi) earnings; (vii) net income; (viii) net interest
income; (ix) core earnings; (x) cash flow; (xi) operating income; (xii) Fair Market Value of Common Stock; (xiii) non-interest
income growth; (xiv) loan growth; (xv) deposit growth; (xvi) shareholder value added or economic value added; (xvii) return on
investment; (xviii) non-interest income to total revenue ratio; (xix) net interest margin; (xx) net charge-off ratio; (xxi) reserve
coverage of non-performing loans; (xxii) market share; (xxiii) productivity ratios; (xxiv) regulatory compliance; (xxv) satisfactory
internal or external audits; (xxvi) capital

 

     

     

    

 

and expense management; (xxvii) achievement of risk management objectives; (xxviii)
efficiency ratio; (xxix) the ratio of non-performing assets to total assets; and (xxx) the ratio of non-performing loans to total
loans. The Committee shall determine a minimum performance level below which no Performance Restricted Shares shall be payable
and a performance schedule under which the number of shares earned may be less than, equal to, or greater than the number of Performance
Restricted Shares granted based upon the Company’s performance. The Committee may adjust the performance goals and measurements
to reflect significant unforeseen events; provided, however, that the Committee may not make any such adjustments with respect
to any award of Performance Restricted Shares to an individual who is then a “covered employee” as such term is defined
in Regulation 1.162-27(c)(2) promulgated under Section 162(m), if such adjustment would cause compensation pursuant to such Performance
Restricted Share award to cease to be performance-based compensation under Section 162(m).

 

4.5         PERFORMANCE
PERIOD

 

The
Committee shall establish a Performance Period applicable to each grant of Performance Restricted Shares. There shall be no limitation
on the number of Performance Periods established by the Committee, and more than one Performance Period may encompass the same
calendar year. The Committee may shorten any Performance Period if it determines that unusual or unforeseen events so warrant.

 

4.6         DIVIDEND
EQUIVALENTS DURING PERFORMANCE PERIOD

 

During
the Performance Period, a Participant shall be entitled to receive Dividend Equivalents which shall be deemed to have been reinvested
in additional Performance Restricted Shares at the same time as such underlying Common Stock cash dividend is paid. Performance
Restricted Shares granted through such reinvestment shall be credited to the Participant’s account and shall be payable
to the Participant in the same manner and at the same time as the Performance Restricted Shares with respect to which such Dividend
Equivalents were issued.

 

4.7         CONVERSION
OF PERFORMANCE RESTRICTED SHARES

 

(a)       At
the conclusion of the Performance Period, the Committee shall determine the number of Performance Restricted Shares, if any, which
have been earned on the basis of Company performance in relation to the established performance goals.

 

(b)       Performance
Restricted Shares earned shall be converted to shares of Common Stock and shall be represented by a stock certificate registered
in the name of the Participant. Certificates evidencing such shares shall be held in custody by the Company until the restrictions
thereon are no longer in effect.

 

4.8         VESTING
PERIOD

 

At
the time a Performance Restricted Share grant is made, the Committee shall establish a vesting period applicable to such shares
earned, if any, which shall begin at the end of the Performance Period. After the lapse or waiver of the restrictions imposed,
the Company shall

 

     

     

    

 

deliver in the Participant’s name one or more stock certificates, evidencing the shares of Common Stock
earned through the end of the Performance Period. The Committee may accelerate or waive the performance goals attached to a particular
grant, in whole or in part, based on service and such other factors as the Committee may determine.

 

4.9         OTHER
TERMS AND CONDITIONS

 

Performance
Restricted Shares shall be subject to the following terms and conditions:

 

(a)       Except
as otherwise provided in Section 4.6 or in the Performance Restricted Share agreement, the Participant shall not have the rights
of a shareholder of the Company during the Performance Period, including no voting or dividend rights.

 

(b)       During
any period in which the vesting period shall continue beyond the expiration or termination of the Performance Period, Performance
Restricted Shares shall have the same shareholder rights to vote and with respect to dividends as provided for Restricted Stock
Awards in Section 5.5.

 

4.10        TERMINATION
OF EMPLOYMENT OR SERVICE PROVISIONS DURING A PERFORMANCE PERIOD

 

(a)       In
the event a Participant terminates employment or service during a Performance Period by reason of death, Disability or Retirement,
and the Participant had completed a minimum of one year of employment or service during the Performance Period, the Participant
shall be entitled to that number of shares earned (if any) determined by multiplying the full number of shares earned (if any)
by a fraction, the numerator of which is the number of full months of employment or service the Participant had completed in such
Performance Period and the denominator of which is the total number of full months in such Performance Period. All applicable
restrictions shall lapse with respect to such shares and such shares of Common Stock shall be issued to the Participant or the
Participant’s designated beneficiary following the Performance Period. In the event the Participant had not completed one
year of employment or service during the Performance Period, the Participant shall forfeit all rights to earn such Performance
Restricted Shares.

 

(b)       If
a Participant terminates employment or service during a Performance Period for any reason other than death, Disability or Retirement,
the Participant shall forfeit all rights to earn such Performance Restricted Shares.

 

(c)       Notwithstanding
Sections 4.10(a) and 4.10(b), in the event a Participant’s employment or service is terminated during a Performance Period
under special circumstances, the Committee may, in its sole discretion, continue a Participant’s rights to earn any or all
Performance Restricted Shares and waive in whole or in part any or all remaining restrictions.

 

     

     

    

 

4.11        TERMINATION
OF EMPLOYMENT OR SERVICE PROVISIONS FOLLOWING A PERFORMANCE PERIOD

 

(a)       In
the event a Participant terminates employment or service following a Performance Period by reason of death, Disability or Retirement,
all shares of Common Stock (formerly Performance Restricted Shares) shall immediately vest and shares of Common Stock shall be
issued to the Participant or the Participant’s designated beneficiary.

 

(b)       If
a Participant terminates employment or service following a Performance Period for any reason other than death, Disability or Retirement,
the Participant shall forfeit all shares of Common Stock (formerly Performance Restricted Shares) which have not yet vested. Shares
of Common Stock which have vested shall be issued to the Participant.

 

(c)       Notwithstanding
Sections 4.11(a) and 4.11(b), in the event a Participant’s employment or service is terminated following a Performance Period
under special circumstances, the Committee may, in its sole discretion, accelerate the remaining vesting period (if any) associated
with that grant.

 

ARTICLE
V

RESTRICTED
STOCK AWARDS, RESTRICTED STOCK UNITS 

AND
STOCK AWARDS

 

5.1         AWARD
OF RESTRICTED STOCK, RESTRICTED STOCK UNITS AND STOCK AWARDS

 

The
Committee may grant Restricted Stock Awards, Restricted Stock Units and unrestricted Stock Awards to Participants subject to such
terms and conditions as the Committee shall determine, provided that each Restricted Stock Award and Restricted Stock Unit shall
be subject to a Restriction Period. Restricted Stock Awards, Restricted Stock Units and Stock Awards shall be used for the purposes
of recruitment, recognition and retention of Key Employees and Non-Employee Directors vital to the Company’s success. The
Committee may, in its sole discretion, require a Participant to deliver consideration in the form of services or cash as a condition
to the grant of a Restricted Stock Award, Restricted Stock Units or Stock Award.

 

5.2         STOCK
AWARD, RESTRICTED STOCK AWARD AND RESTRICTED STOCK UNIT AGREEMENTS

 

Each
award of Restricted Stock Award, Restricted Stock Units and Stock Award shall be evidenced by a written agreement between the
Company and the Participant to whom such award is granted. The agreement shall specify the number of shares awarded, the terms
and conditions of the award and, in the case of a Restricted Stock Award and award of Restricted Stock Units, the Restriction
Period, and the consequences of forfeiture.

 

     

     

    

 

5.3         AWARDS
AND CERTIFICATES

 

Shares
of Common Stock awarded pursuant to a Restricted Stock Award or a Stock Award shall be registered in the name of the Participant.
Certificates evidencing Restricted Stock Awards shall be held in custody by the Company until the restrictions thereon are no
longer in effect. After the lapse or waiver of the restrictions imposed upon the Restricted Stock Award, the Company shall deliver
in the Participant’s name one or more stock certificates, free of restrictions, evidencing the shares of Common Stock subject
to the Restricted Stock Award to which the restrictions have lapsed or been waived.

 

5.4         RESTRICTION
PERIOD

 

At
the time a Restricted Stock Award is made, the Committee shall establish a Restriction Period applicable to such award. The Committee
may provide for the lapse of such restrictions in installments and may accelerate or waive such restrictions, in whole or in part,
based on service and such other factors as the Committee may determine. Neither Restricted Stock Awards nor Restricted Stock Units
may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Restriction Period or prior to the
satisfaction of other applicable restrictions.

 

5.5         OTHER
TERMS AND CONDITIONS OF RESTRICTED STOCK AWARDS

 

Shares
of Common Stock subject to Restricted Stock Awards shall be subject to the following terms and conditions:

 

(a)       Except
as otherwise provided in the Plan or in the Restricted Stock Award Agreement, the Participant shall have all the rights of a shareholder
of the Company, including the right to vote the shares.

 

(b)       Cash
dividends paid with respect to Common Stock subject to a Restricted Stock Award shall be reinvested to purchase additional shares
of Common Stock that shall be subject to the same terms, conditions and restrictions that apply to the Restricted Stock Award
with respect to which such dividends were issued.

 

5.6         OTHER
TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS

 

(a)       Restricted
Stock Units may be settled in cash in an amount equal to the Fair Market Value of the shares of Common Stock as of a specified
settlement date in the future, or in shares of Common Stock, as determined by the Committee and set forth in the award agreement.
The award agreement also shall set forth whether the Restricted Stock Units shall be settled: (i) within the time period specified
for “short term deferrals” under Section 409A of the Code, or (ii) otherwise within the requirements of Section 409A,
in which case the award agreement shall specify upon which events the Restricted Stock Units shall be settled.

 

(b)       During
the Restriction Period, a Participant shall be entitled to receive Dividend Equivalents which shall be deemed to have been reinvested
in additional Restricted Stock Units

 

    

     

    

 

at
the same time as such underlying Common Stock cash dividend is paid. Restricted Stock Units granted through such reinvestment
shall be credited to the Participant’s account and shall be payable or deliverable to the Participant in the same manner
and at the same time as the Restricted Stock Units with respect to which such Dividend Equivalents were issued.

 

(c)       Holders
of Restricted Stock Units shall not have rights as shareholders of the Company, including no voting or dividend rights.

 

(d)       A
holder of Restricted Stock Units shall have no rights other than those of a general creditor of the Company. Restricted Stock
Units represent an unfunded unsecured obligation of the Company, subject to the terms and conditions of the applicable award agreements.

 

5.7         TERMINATION
OF EMPLOYMENT OR SERVICE

 

(a)       In
the event a Participant terminates employment or service during the Restriction Period by reason of death, Disability or Retirement,
and the Participant had completed a minimum of one year of employment or service during the Restriction Period, restrictions shall
lapse on that number of shares (if any) determined by multiplying the full number of shares subject to restriction by a fraction,
the numerator of which is the number of full months of employment or service the Participant had completed in such Restriction
Period and the denominator of which is the total number of full months in such Restriction Period.

 

(b)       If
a Participant terminates employment or service for any reason other than death, Disability or Retirement, the Participant shall
forfeit all shares subject to restriction.

 

(c)       Notwithstanding
Sections 5.7(a) and 5.7(b), in the event a Participant’s employment or service is terminated under special circumstances,
the Committee may, in its sole discretion, waive in whole or in part, any and all remaining restrictions.

  

ARTICLE
VI

TAX
WITHHOLDING AND DEFERRAL OF PAYMENT

 

6.1         TAX
WITHHOLDING

 

(a)       The
Company may withhold from any payment of cash or Common Stock to a Participant or other person pursuant to the Plan a cash amount
or number of shares (based upon the Fair Market Value of such shares as of the date such withholding tax obligations are due)
sufficient to satisfy any required withholding taxes, including the Participant’s social security and Medicare taxes and
federal, state and local income tax with respect to income arising from the payment of the award. The Company shall have the right
to require the payment of any such taxes before delivering payment or issuing Common Stock pursuant to the award.

 

(b)       At
the discretion of the Committee, under the terms of any grant of Stock Options, Stock Appreciation Rights, Performance Restricted
Shares, Restricted Stock Awards and

 

    

     

    

 

Restricted
Stock Units, a Participant may have the right to elect to satisfy, in whole or in part, any required tax withholding obligations
in connection with the issuance of shares of Common Stock earned under the Plan by requesting that the Company either:

 

(i)       withhold
shares of Common Stock otherwise issuable to the Participant, or

 

(ii)       by
accepting delivery of shares of Common Stock previously owned by the Participant.

 

In
either case, the Fair Market Value of such shares of Common Stock will be determined as of the date such withholding tax obligations
are due.

 

(c)           Notwithstanding
any other provision hereof to the contrary, the Committee, in its sole discretion, may at any time suspend, terminate or disallow
any or all entitlements to make the tax withholding election described in subparagraph (b) to the extent previously granted or
extended to any Participant.

 

6.2         DEFERRAL
OF PAYMENT

 

At
the discretion of the Committee, a Participant may be offered the right to defer delivery of all or any portion of Performance
Restricted Shares or Restricted Stock Awards otherwise distributable to such Participant or the payment of cash or delivery of
shares of Common Stock with respect to Restricted Stock Units. Such right shall be exercised by execution of a written agreement
by the Participant: (i) with respect to Restricted Stock Awards and Restricted Stock Units, prior to the expiration of the applicable
Restriction Period and (ii) with respect to Performance Restricted Shares, prior to the expiration of the applicable vesting period.
Any such deferral shall be based upon rules and procedures established by the Committee, which shall take into account potential
tax treatment under Section 409A of the Code.

  

ARTICLE
VII

CASH
INCENTIVE AWARDS

 

7.1         GRANTING
OF AWARDS

 

The
Committee, in its discretion, may grant Cash Incentive Awards to Participants. Each Cash Incentive Award shall be conditioned
upon the Company’s achievement of one or more Performance Goals with respect to the Performance Measure(s) beginning with
the applicable Performance Period and which may be set forth in the Award Agreement evidencing such Cash Incentive Award. An award
may be made in conjunction with the grant hereunder of Stock Options, Stock Appreciation Rights, Performance Restricted Shares,
Restricted Stock Awards, Restricted Stock Units or Stock Awards. In making a Cash Incentive Award, the Committee shall establish
a performance level below which the Cash Incentive Award shall not be payable. The Committee may adjust the performance goals
and measurements to reflect significant unforeseen events; provided, however, that the Committee may not make any such adjustment

 

    

     

    

 

with
respect to any award to an individual who is then a “covered employee” as such term is defined in Regulation 1.162-27(c)(2)
promulgated under Section 162(m), if such adjustment would cause compensation pursuant to such award to cease to be performance-based
compensation under Section 162(m).

 

7.2         OTHER
AWARD TERMS

 

The
Committee may, in its sole discretion, establish certain additional performance-based conditions that must be satisfied by the
Company, a business unit or the Participant as a condition precedent to the payment of all or a portion of any Cash Incentive
Awards. Such conditions precedent may include, among other things, the receipt by a Participant of a specified annual performance
rating and the achievement of specified performance goals by the Company, business unit or Participant.

  

ARTICLE
VIII

CONSEQUENCES
OF A CHANGE IN CONTROL

 

8.1         CONSEQUENCES
OF A CHANGE IN CONTROL

 

For
any awards outstanding as of the date of a Change in Control, either of the following provisions shall apply, depending on whether,
and the extent to which, awards are assumed, converted or replaced by the resulting entity in a Change in Control, unless otherwise
provided by the award agreement:

 

(a)       To
the extent such awards are not assumed, converted or replaced by the resulting entity in the Change in Control, then upon the
Change in Control such outstanding awards that may be exercised shall become fully exercisable, all restrictions with respect
to such outstanding awards, other than for performance awards, shall lapse and become vested and non-forfeitable and for any outstanding
performance awards the target payout opportunities available under such awards shall be deemed to have been fully earned as of
the Change in Control based upon the greater of: (i) an assumed achievement of all relevant performance goals at the “target”
level or (ii) the actual level of achievement of all relevant performance goals against target as of the Company’s last
fiscal quarter preceding the Change in Control and the award shall become vested pro rata based on the portion of the applicable
performance period completed through the date of the Change in Control.

 

(b)       To
the extent such awards are assumed, converted or replaced by the resulting entity in the Change in Control, if, within two years
after the date of the Change in Control, the Participant has a Separation from Service (as defined for purposes of Section 409A
of the Code) by the Company other than for “cause” (which may include a Separation from Service by the Participant
for “good reason” if provided in the applicable award agreement), as such terms are defined in the award agreement,
then such outstanding awards that may be exercised shall become fully exercisable, all restrictions with respect to such outstanding
awards, other than for performance awards, shall lapse and become vested and non-forfeitable, and for any outstanding performance
awards the target payout opportunities attainable under such awards shall be

 

    

     

    

 

deemed to have been fully earned as of the Separation
from Service based upon the greater of: (i) an assumed achievement of all relevant performance goals at the “target”
level or (ii) the actual level of achievement of all relevant performance goals against target as of the Company’s last
fiscal quarter preceding the Change in Control and the award shall become vested pro rata based on the portion of the applicable
performance period completed through the date of the Separation from Service.

  

ARTICLE
IX

OTHER
PROVISIONS

 

9.1         ADJUSTMENT
IN NUMBER OF SHARES AND OPTION PRICES

 

Grants
of Stock Options, Stock Appreciation Rights, Performance Restricted Shares, Restricted Stock Awards and Restricted Stock Units
shall be subject to adjustment by the Committee as to the number and price of shares of Common Stock or other considerations subject
to such grants in the event of changes in the outstanding shares by reason of stock dividends, stock splits, recapitalizations,
reorganizations, mergers, consolidations, combinations, exchanges or other relevant changes in capitalization occurring after
the date of grant. In the event of any such change in the outstanding shares, the aggregate number of shares available under the
Plan may be appropriately adjusted by the Committee.

 

9.2         NO
RIGHT TO EMPLOYMENT OR SERVICE

 

Nothing
contained in the Plan, or in any grant pursuant to the Plan, shall confer upon any Participant any right with respect to continuance
of employment by the Company or its subsidiaries or service as a Non-Employee Director, nor interfere in any way with the right
of the Company or its subsidiaries to terminate the employment or change the compensation of any employee at any time.

 

9.3         NONTRANSFERABILITY

 

A
Participant’s rights under the Plan, including the right to any shares or amounts payable may not be assigned, pledged or
otherwise transferred except, in the event of a Participant’s death, to the Participant’s designated beneficiary,
or, in the absence of such a designation, by will or by the laws of descent and distribution; provided, however, that the Committee
may, in its discretion, at the time of grant of a Nonstatutory Stock Option or by amendment of an option agreement for an Incentive
Stock Option or a Nonstatutory Stock Option, provide that Stock Options granted to or held by a Participant may be transferred,
in whole or in part, to one or more transferees and exercised by any such transferee, provided further that: (i) any such transfer
must be without consideration, (ii) each transferee must be a member of such Participant’s “immediate family”
or a trust, family limited partnership or other estate planning vehicle established for the exclusive benefit of one or more members
of the Participant’s immediate family and (iii) such transfer is specifically approved by the Committee following the receipt
of a written request for approval of the transfer; and provided further that any Incentive Stock Option which is amended to permit
transfers during the lifetime of the

 

    

     

    

 

Participant shall, upon the effectiveness of such amendment, be treated thereafter as a Nonstatutory
Stock Option. In the event a Stock Option is transferred as contemplated in this Section, such transfer shall become effective
when approved by the Committee and such Stock Option may not be subsequently transferred by the transferee other than by will
or the laws of descent and distribution. Any transferred Stock Option shall continue to be governed by and subject to the terms
and conditions of this Plan and the relevant option agreement and the transferee shall be entitled to the same rights as the Participant
as if no transfer had taken place. As used in this Section, “immediate family” shall mean, with respect to any person,
any spouse, child, stepchild or grandchild, and shall include relationships arising from legal adoptions.

 

9.4         COMPLIANCE
WITH GOVERNMENT REGULATIONS

 

(a)       The
Company shall not be required to issue or deliver shares or make payment upon any right granted under the Plan prior to complying
with the requirements of any governmental authority in connection with the authorization, issuance or sale of such shares.

 

(b)       The
Plan shall be construed and its provisions enforced and administered in accordance with the laws of the Commonwealth of Pennsylvania
applicable to contracts entered into and performed entirely in such State.

 

9.5         RIGHTS
AS A SHAREHOLDER

 

Except
as otherwise provided by the Plan or in the applicable award agreement, the recipient of any grant under the Plan shall have no
rights as a shareholder with respect thereto unless and until certificates for shares of Common Stock are issued in the name of
such recipient.

 

9.6         UNFUNDED
PLAN

 

Unless
otherwise determined by the Committee, the Plan shall be unfunded and shall not create (or be construed to create) a trust or
separate funds. With respect to any payment not yet made to a Participant, nothing contained herein shall give any Participant
any rights that are greater than those of a general creditor of the Company.

 

9.7         OTHER
COMPENSATION PLANS

 

Nothing
contained in this Plan shall prevent the Company from adopting other or additional compensation arrangements, subject to shareholder
approval if such approval is needed.

 

9.8         TERMINATION
OF EMPLOYMENT – CERTAIN FORFEITURES

 

Notwithstanding
any other provision of the Plan (other than provisions regarding Change in Control) and except for Performance Restricted Shares,
Restricted Stock Awards and Restricted Stock Units which would otherwise be free of restrictions and the receipt of which has
been deferred pursuant to Section 6.2, a Participant shall have no right to exercise any Stock Option or Stock Appreciation Right
or receive payment of any Performance Restricted Share,

 

    

     

    

 

Restricted Stock Award or Restricted Stock Unit if the Participant is
discharged for willful, deliberate or gross misconduct as determined by the Committee in its sole discretion. Furthermore, notwithstanding
any other provision of the Plan to the contrary, in the event that a Participant receives or is entitled to cash or the delivery
or vesting of shares of Common Stock pursuant to an award during the 12 month period prior to the Participant’s termination
of employment with the Company, then the Committee, in its sole discretion, may require the Participant to return or forfeit the
cash and/or Stock received with respect to an Award (or its economic value as of: (i) the date of the exercise of Stock Options
or Stock Appreciation Rights; (ii) the date immediately following the end of the Restricted Period for Restricted Stock Awards
and Restricted Stock Units or the end of the vesting period for Performance Restricted Shares; (iii) the date of grant with respect
to Stock Awards in the event that the Participant: (y) is discharged for willful, deliberate or gross misconduct, as determined
by the Committee in its sole discretion or (z) engages in any business or enters into any employment which the Committee in its
sole discretion determines to be: (1) directly or indirectly competitive with the business of the Company or (2) substantially
injurious to the Company’s financial interest. A Participant may request the Committee in writing to determine whether any
proposed business or employment activity would justify such a forfeiture. Such a request shall fully describe the proposed activity
and the Committee’s determination shall be limited to the specific activity so described. The Committee’s right to
require forfeiture under this Section 9.8 must be exercised within 90 days after the discovery of an occurrence triggering the
Committee’s right to require forfeiture but in no event later than 24 months after the Participant’s termination of
employment with the Company.

 

9.9         BOOK
ENTRY

 

Notwithstanding
any other provision of this Plan to the contrary, the Company may elect to satisfy any requirement under this Plan for delivery
of stock certificates through the use of book entry.

  

ARTICLE
X

AMENDMENT
AND TERMINATION

 

10.1        AMENDMENT
AND TERMINATION

 

The
Board of Directors may modify, amend, suspend or terminate the Plan at any time in its discretion, except that, to the extent
approval of the shareholders is required by applicable law, rule or regulation or shareholder approval is otherwise deemed appropriate
by the Board. No modification, amendment or termination of the Plan shall adversely affect the rights of a Participant under a
grant previously made to him without the consent of such Participant.

  

    

     

    

 

ARTICLE
XI

EFFECTIVE
DATE AND DURATION OF PLAN

 

11.1        EFFECTIVE
DATE AND DURATION OF PLAN

 

The
Plan shall become effective as of March 14, 2017, subject to its approval and adoption at the Annual Meeting of the shareholders
on May 16, 2017. All rights granted under the Plan must be granted within ten years from its adoption date by the shareholders
of the Company. Any rights outstanding ten years after the adoption of the Plan may be exercised within the periods prescribed
under or pursuant to the Plan.

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