<SEC-DOCUMENT>0000739421-16-000126.txt : 20160527
<SEC-HEADER>0000739421-16-000126.hdr.sgml : 20160527
<ACCEPTANCE-DATETIME>20160527090827
ACCESSION NUMBER:		0000739421-16-000126
CONFORMED SUBMISSION TYPE:	S-8
PUBLIC DOCUMENT COUNT:		4
FILED AS OF DATE:		20160527
DATE AS OF CHANGE:		20160527
EFFECTIVENESS DATE:		20160527

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CITIZENS FINANCIAL SERVICES INC
		CENTRAL INDEX KEY:			0000739421
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				232265045
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-8
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-211662
		FILM NUMBER:		161680134

	BUSINESS ADDRESS:	
		STREET 1:		15 S MAIN ST
		CITY:			MANSFIELD
		STATE:			PA
		ZIP:			16933
		BUSINESS PHONE:		5706622121

	MAIL ADDRESS:	
		STREET 1:		15 S MAIN ST
		CITY:			MANSFIELD
		STATE:			PA
		ZIP:			16933
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-8
<SEQUENCE>1
<FILENAME>2016equityincentiveplan.htm
<DESCRIPTION>2016 EQUITY INCENTIVE PLAN APPROVED BY SHAREHOLDERS
<TEXT>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 13.4pt">As filed with the Securities and Exchange Commission on May 27, 2016</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 13.4pt">Registration No. _________________</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 13.4pt">UNITED STATES</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 13.4pt">SECURITIES AND EXCHANGE COMMISSION</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 13.4pt">Washington, D.C.&#160; 20549</div>

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<div style="FONT-SIZE: 16pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 18.25pt; MARGIN-RIGHT: 13.4pt">FORM S-8</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 13.4pt">REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</div>

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<div style="FONT-SIZE: 16pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 18.25pt; MARGIN-RIGHT: 13.4pt">CITIZENS FINANCIAL SERVICES, INC.</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 13.4pt">(<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">Exact name of registrant as specified in its charter</font>)</div>

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<div style="TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Pennsylvania</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">22-2265045</font></div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 13.4pt">(<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">State or other jurisdiction of incorporation</font>)&#160; &#160; &#160;&#160; (<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">I.R.S. Employer Identification Number</font>)</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">15 South Main Street, Mansfield, PA&#160; 16933</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 13.4pt">&#160;(<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">Address of principal executive offices</font>) (<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">Zip code</font>)</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">Citizens Financial Services, Inc. 2016 Equity Incentive Plan</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 13.4pt">(<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">Full title of plan</font>)</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">Randall E. Black, President &amp; CEO</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">Citizens Financial Services, Inc.</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">15 South Main Street</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">Mansfield, PA&#160; 16933</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 13.4pt">(<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">Name and address of agent for service</font>)</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">(570) 662-2121</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 13.4pt">(<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">Telephone number, including area code, of agent for service</font>)</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">Copies to</font>:</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">Dean H. Dusinberre, Esquire</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">Rhoads &amp; Sinon LLP</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">One South Market Square, 12<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">th</sup> Floor</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">Harrisburg, PA&#160; 17108-1146</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">(717) 233-5731</div>

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<div style="FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt"><u>_______</u></div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.&#160; See the definition of "large accelerated filer," "accelerated filer" and smaller reporting company in Rule 12b-2 of the Exchange Act.</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt">&#160;</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 13.4pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">Large accelerated filer&#160; </font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#9744;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.06pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;</font></font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">Accelerated filer&#160; <font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#9746;</font></font></div>

<div style="MARGIN-BOTTOM: 6pt; TEXT-ALIGN: justify; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">Non-accelerated filer&#160; </font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#9744;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#160; (Do not check if smaller reporting company)</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.01pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">Smaller reporting company&#160; <font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#9744;</font></font></div>

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<div style="FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">CALCULATION OF REGISTRATION FEE</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt">Title of Securities to be Registered</div>
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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt">Amount to be Registered (1)</div>
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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt">Proposed Maximum Offering Price Per Share (2)</div>
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<td style="BORDER-TOP: #000000 2px solid; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 2px; BORDER-LEFT: #000000 2px solid" valign="bottom">&#160;</td>
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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt">Proposed Maximum Aggregate</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt">Offering Price (2)</div>
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<td style="BORDER-TOP: #000000 2px solid; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 2px; BORDER-LEFT: #000000 2px solid" valign="bottom">&#160;</td>
<td style="BORDER-TOP: #000000 2px solid; VERTICAL-ALIGN: top; BORDER-BOTTOM: #000000 2px solid" valign="bottom" colspan="2">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt">Amount of Registration Fee</div>
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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt">Common Stock, no par value</div>
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<div style="LINE-HEIGHT: 12.55pt">&#160;</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt">150,000 shares</div>
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<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 2px; BORDER-LEFT: #000000 2px solid; BACKGROUND-COLOR: #cceeff" valign="bottom">&#160;</td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff" valign="bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; LINE-HEIGHT: 12.55pt">$</div>
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<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff" valign="bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; LINE-HEIGHT: 12.55pt">47.63</div>
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<td style="BORDER-RIGHT: #000000 2px solid; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 2px; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff" valign="bottom" nowrap="nowrap">&#160;</td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 2px; BORDER-LEFT: #000000 2px solid; BACKGROUND-COLOR: #cceeff" valign="bottom">&#160;</td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff" valign="bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; LINE-HEIGHT: 12.55pt">$</div>
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<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff" valign="bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; LINE-HEIGHT: 12.55pt">7,144,500.00</div>
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<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 2px; BORDER-LEFT: #000000 2px solid; BACKGROUND-COLOR: #cceeff" valign="bottom">&#160;</td>
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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; LINE-HEIGHT: 12.55pt">$</div>
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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; LINE-HEIGHT: 12.55pt">719.45</div>
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<div style="MARGIN-BOTTOM: 6pt; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">(1)</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">Represents the number of shares of common stock that may be issued under the Plan, together with an indeterminate number of shares of the Registrant's common stock that may be necessary to adjust the number of shares reserved for issuance pursuant to the Plan as a result of a stock split, stock dividend or similar adjustment of the outstanding shares of the Registrant's common stock.&#160; In accordance with Rule 416(c) under the Securities Act of 1933 (the "Securities Act"), as amended, such indeterminable number of additional shares as may be issuable as a result of such adjustments are also registered hereby.</font></div>

<div style="MARGIN-BOTTOM: 6pt; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">(2)</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">Estimated solely for the purposes of calculating the amount of the registration fee pursuant to Rule 457(c) and (h)(1), on the basis of the average of the high and low prices of the common stock of Citizens Financial Services, Inc., as reported on the OTC Pink Market on May 23, 2016, of $47.63 per share.</font></div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">PART I</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS</div>

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<div style="TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Item 1. <font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font></font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Plan Information.</font></div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">As permitted by the rules of the Securities and Exchange Commission (the "SEC"), this Registration Statement omits the information required by Item 1 of Part I of Form S-8.</div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Item 2.</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font></font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Registration Information and Employee Plan Annual Information.</font></div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">As permitted by the rules of the SEC, this Registration Statement omits the information required by Item 2 of Part 1 of Form S-8.</div>

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 &#160;</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 24.9pt">INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</div>

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<div style="TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Item&#160; 3.</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.2pt">&#160;<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font></font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Incorporation of Documents by Reference</font>.</font></div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">The following documents filed with the Securities and Exchange Commission by the Registrant are incorporated into this Registration Statement by reference:</div>

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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: 36pt; VERTICAL-ALIGN: top; align: right">(a)</td>
<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: left">Registrant's Annual Report on Form 10-K for the year ended December 31, 2015.</td>
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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: 36pt; VERTICAL-ALIGN: top; align: right">(b)</td>
<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: left">Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016.</td>
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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: 36pt; VERTICAL-ALIGN: top; align: right">(c)</td>
<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: left">Registrant's Current Reports on Form 8-K filed on January&#160;27, 2016,&#160;February 4, 2016,&#160;April 22, 2016 and April 27, 2016.</td>
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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: 36pt; VERTICAL-ALIGN: top; align: right">(d)</td>
<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: left">The description of Registrant's common stock set forth in its Form 8-K filed with the SEC on May 27, 2016 pursuant to the Exchange Act, as amended, including any amendment or reports filed under the Exchange Act for the purpose of updating such description.</td>
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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">All documents subsequently filed by Registrant pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act, prior to the filing of a post-effective amendment which indicates that all securities offered have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference in this Registration Statement and to be a part hereof from the date of filing such documents.</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes hereof to the extent that a statement contained herein or in any other subsequently filed incorporated document modifies or supersedes such statement.&#160; Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part hereof.</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">Notwithstanding the foregoing, any document or portion of a document that is "furnished" to, but not "filed" with, the SEC is not incorporated by reference herein.</div>

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<div style="TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Item 4.</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.08pt">&#160;<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font></font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Description of Securities.</font></div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">Not applicable.</div>

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<div style="TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Item 5.</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font></font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Interest of Named Experts and Counsel</font></div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">Not applicable.</div>

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<div style="TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Item 6.</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font></font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Indemnification of Directors and Officers</font></div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">Sections 1741-1743 of the Pennsylvania Business Corporation Law of 1988, as amended (the "BCL"), provide that a business corporation may indemnify directors and officers against liabilities they may incur in such capacities provided certain standards are met, including good faith and the belief that the particular action is in the best interests of the corporation.&#160; In general, this power to indemnify does not exist in the case of actions against a director or officer by or in the right of the corporation if the person entitled to indemnification shall have been adjudged to be liable to the corporation unless and only to the extent a court determines that the person is fairly and reasonably entitled to indemnification.&#160; A corporation is required to indemnify directors and officers against expenses they may incur in defending actions against them in such capacities if they are successful on the merits or otherwise in the defense of such actions.&#160; Section 1746 of the BCL provides that the foregoing provisions shall not be deemed exclusive of any other rights to which a person seeking indemnification may be entitled under, among other things, any by-law provision, provided that no indemnification may be made in any case where the act or failure or act giving rise to the claim for indemnification is determined by a court to have constituted willful misconduct or recklessness.&#160; Section 1747 of the BCL authorizes a corporation to purchase insurance for directors and other representatives.&#160; The foregoing statement is subject to the detailed provisions of Section 1741-1750 of the BCL.</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">The restated articles of incorporation and bylaws of the Registrant provide that the board of directors shall cause the Registrant to indemnify any person who was or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she is or was a director, officer, employee or agent of the Registrant, against expenses (including attorney's fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit or proceeding, including any amount paid to the institution itself as a result of an action or suit by or in the right of the Registrant, to the extent permitted by the BCL and any amendments thereto, and sections relating thereto, including the Directors' Liability Act, subject to federal regulatory restrictions.</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">In addition, under the restated articles of incorporation and bylaws of the Registrant, directors of the Registrant shall not be personally liable for monetary damages as such for any action taken, or failure to take any action, unless: (1) the director has breached or failed to perform the duties of his or her office under Section 8363 of the Directors' Liability Act (relating to standard of care and justifiable reliance); and (2) the breach or failure to perform constitutes self-dealing, willful misconduct or recklessness.&#160; This limitation of personal liability does not apply to (i) the responsibility or liability of a director pursuant to any criminal statute or (ii) the liability of a director for the payment of taxes pursuant to federal, state or local law.</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman Bold', serif; FONT-WEIGHT: bold; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Item 7.<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 6pt">&#160;<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font></font>Exemption from Registration Claimed.</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">Not applicable.</div>

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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: justify">Opinion of Rhoads &amp; Sinon LLP.</td>
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<div style="TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">10.1*</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">Citizens Financial Services, Inc. 2016 Equity Incentive Plan.</font></div>

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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: 36pt; VERTICAL-ALIGN: top; align: right">23.1</td>
<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: justify">Consent of Rhoads &amp; Sinon LLP (included as part of Exhibit 5.1).</td>
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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: justify">Consent of S.R. Snodgrass, P.C.</td>
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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: justify">Powers of Attorney (included as part of signature page).</td>
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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">*Filed herewith</div>

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<div style="TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Item 9.</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font></font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman Bold', serif; FONT-WEIGHT: bold">Undertakings.</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">(a)</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">The undersigned Registrant hereby undertakes:</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">(1)</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">To file, during any period in which offers or sales are being made, a post-<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 6pt">&#160;&#160;</font>effective amendment to this Registration Statement:</font></div>

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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: left">To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement;</td>
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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: 35pt; VERTICAL-ALIGN: top; align: right">(iii)</td>
<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: left">To include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement;</td>
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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) shall not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed by the registrant with the commission pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement.</div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">(2)</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">That, for the purpose of determining any liability under the Securities Act of<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 6pt">&#160;&#160;</font>1933, each post-effective amendment shall be deemed to be a new registration statement<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 6pt">&#160;&#160;</font>relating to the securities offered therein, and the offering of such securities at that time shall<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 6pt">&#160;&#160;</font>be deemed to be the initial <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">bona fide</font> offering thereof.</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">(3)</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">(b)</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the Registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934 that is incorporated by reference in the Registration Statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">bona fide</font> offering thereof.</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">(c)</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable.&#160; In the event that a claim for indemnification against such liabilities, other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action suit or proceeding, is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.</font></div>

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<div style="FONT-SIZE: 11pt; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">SIGNATURES</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the Borough of Mansfield, Commonwealth of Pennsylvania, on May 27, 2016.</div>

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<div><strong>CITIZENS FINANCIAL SERVICES, INC.</strong></div>

<div><strong>(Registrant)</strong></div>
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<div style="TEXT-ALIGN: left; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt">By: </div>
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<td style="WIDTH: 35%; BORDER-BOTTOM: #000000 2px solid" valign="top" nowrap="nowrap" align="left">/s/&#160;Randall E. Black</td>
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<td style="WIDTH: 35%" valign="top">President and Chief Executive Officer</td>
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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">POWER OF ATTORNEY</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt">KNOWN ALL MEN BY THESE PRESENTS, that each of the undersigned directors and officers of Citizens Financial Services, Inc., a Pennsylvania corporation (the "Company"), constitutes and appoints Randall E. Black, Mickey L. Jones and Dean H. Dusinberre, with full power of each of them to act alone, as the true and lawful attorneys-in-fact and agents of the undersigned, with full power of substitution and resubstitution for him and in his name, place and stead, in any and all capacities, to sign any and all amendments (including pre-effective and post-effective amendments) to this Registration Statement and to sign any registration statement (and any post-effective amendments thereto) effective upon filing pursuant to Rule 462(b) under the Securities Act of 1933, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposed as he might or could do in person, hereby ratifying and confirming that said attorney-in-fact, agent or his substitutes may lawfully do or cause to be done by virtue hereof.</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt">Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities indicated on May 27, 2016.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Signature</u></div>

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<div>&#160;<u>Capacity</u></div>
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<div><font style="FONT-SIZE: 10pt"><u>&#160;<font style="FONT-SIZE: 10pt">&#160;&#160;&#160;/s/ Randall E. Black</font></u><font style="FONT-SIZE: 10pt">&#160;</font></font><font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
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<div>President and CEO (Principal Executive Officer) and Director</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; MARGIN-LEFT: 18pt">Randall E. Black</div>

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<div><font style="FONT-SIZE: 10pt"><u>&#160;<font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;/s/ Mickey L. Jones</font></u><font style="FONT-SIZE: 10pt">&#160;</font></font><font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
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<div>Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer)</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="FONT-SIZE: 10pt">Mickey L. Jones</font><font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;</font></div>

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<div><u>&#160;<font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;/s/ R. Lowell Coolidge</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
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<div>&#160;</div>
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<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 45%">
<div>Director</div>
</td>
</tr>

<tr>
<td style="WIDTH: 60%">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;R. Lowell Coolidge</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;</div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3.85%">
<div>&#160;</div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 45%">
<div>&#160;</div>
</td>
</tr>

<tr>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 60%">
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</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3.85%">
<div>&#160;</div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 45%">
<div>Director</div>
</td>
</tr>

<tr>
<td style="WIDTH: 60%">
<div>
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 12.55pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Rudolph J. van der Hiel</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 12.55pt">&#160;</div>
</div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3.85%">
<div>&#160;</div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 45%">
<div>&#160;</div>
</td>
</tr>

<tr>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 60%">&#160;<u>&#160;<font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;/s/ Robert W. Chappell</font></u><font style="FONT-SIZE: 10pt">&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3.85%">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 45%">&#160;Director</td>
</tr>

<tr>
<td style="WIDTH: 60%">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Robert W. Chappell</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;</div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3.85%">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 45%">&#160;</td>
</tr>

<tr>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 60%">&#160;<u>&#160;<font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;/s/ R. Joseph Landy</font></u><font style="FONT-SIZE: 10pt">&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3.85%">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 45%">&#160;Director</td>
</tr>

<tr>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 60%; MARGIN-LEFT: 27pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; R. Joseph Landy</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3.85%">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 45%">&#160;</td>
</tr>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;</div>

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<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3%">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 37.52%">
<div>&#160;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal"><u>Capacity</u></font></div>

<div>&#160;</div>
</td>
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<div><u style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;/s/ Roger C. Graham, Jr.</u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
</td>
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<div>&#160;</div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 37.52%">
<div>Director</div>
</td>
</tr>

<tr style="HEIGHT: 35px">
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 12.55pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Roger C. Graham, Jr.</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 12.55pt">&#160;</div>
</div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3%">
<div>&#160;</div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 37.52%">
<div>&#160;</div>
</td>
</tr>

<tr>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 60%">&#160;<u>&#160;<font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;/s/ E. Gene Kosa</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3%">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 37.52%">&#160;Director</td>
</tr>

<tr>
<td style="WIDTH: 60%">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;E. Gene Kosa</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;</div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3%">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 37.52%">&#160;</td>
</tr>

<tr style="HEIGHT: 15px">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 60%">&#160;<font style="FONT-SIZE: 10pt"><u>&#160;<font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;/s/ Rinaldo A. DePaola</font></u><font style="FONT-SIZE: 10pt">&#160;</font></font><font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3%">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 37.52%">&#160;Director</td>
</tr>

<tr>
<td style="WIDTH: 60%">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Rinaldo A. DePaola</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;</div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3%">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 37.52%">&#160;</td>
</tr>

<tr>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 60%"><font style="FONT-SIZE: 10pt">&#160;<u>&#160;<font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;/s/ Thomas E. Freeman</font></u></font><font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3%">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 37.52%">&#160;Director</td>
</tr>

<tr>
<td style="WIDTH: 60%">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Thomas E. Freeman</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;</div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3%">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 37.52%">&#160;</td>
</tr>

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<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 60%">&#160;<u>&#160;<font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;/s/ Alletta M. Schadler</font></u><font style="FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3%">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 37.52%">&#160;Director</td>
</tr>

<tr>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 60%">&#160;&#160;&#160;&#160;&#160;&#160;Alletta M. Schadler</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 3%">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 37.52%">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 60%">
<div>&#160;</div>
</td>
<td style="WIDTH: 3%">
<div>&#160;</div>
</td>
<td style="WIDTH: 37.52%">
<div>&#160;</div>
</td>
</tr>
</table>
</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 167.35pt"><u>INDEX TO EXHIBITS</u></div>

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<div style="TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold"><u>Exhibit No.</u></font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold"><u>Exhibit</u></font></div>

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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: 36pt; VERTICAL-ALIGN: top; align: right">5.1*</td>
<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: justify">Opinion of Rhoads &amp; Sinon LLP.</td>
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<div style="TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">10.1*</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">Citizens Financial Services, Inc. 2016 Equity Incentive Plan.</font></div>

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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: 36pt; VERTICAL-ALIGN: top; align: right">23.1</td>
<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: justify">Consent of Rhoads &amp; Sinon LLP (included as part of Exhibit 5.1).</td>
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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: 36pt; VERTICAL-ALIGN: top; align: right">23.2*</td>
<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: justify">Consent of S.R. Snodgrass, P.C.</td>
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<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: 36pt; VERTICAL-ALIGN: top; align: right">24.1</td>
<td style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; WIDTH: auto; VERTICAL-ALIGN: top; TEXT-ALIGN: justify">Powers of Attorney (included as part of signature page).</td>
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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">*Filed herewith</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt"><u>EXHIBIT 5.1</u></div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">May 27, 2016</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Re: <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Opinion and Consent of Rhoads &amp; Sinon LLP</u></font></div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Board of Directors</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Citizens Financial Services, Inc.</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">15 South Main Street</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Mansfield, PA&#160; 16933</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; MARGIN-TOP: 12pt; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">Lady and Gentlemen:</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">Reference is made to your Registration Statement on Form S-8, which is to be filed with the Securities and Exchange Commission regarding the registration of 150,000 shares of common stock, $1.00 par value per share (the "Common Stock"), of Citizens Financial Services, Inc., a Pennsylvania corporation (the "Company"), in connection with the Citizens Financial Services, Inc. 2016 Equity Incentive Plan (the "Plan").</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">We have examined the Company's Restated Articles of Incorporation and Bylaws and all amendments thereto, and certain resolutions of the Board of Directors of the Company relevant to our opinion.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">Based upon the foregoing, and upon the examination of such other documents as we have deemed necessary to express the opinions hereinafter set forth, we are of the opinion that:</div>

<div style="MARGIN-BOTTOM: 12pt; TEXT-INDENT: 54pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">1.</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 6pt">&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">The Company is a corporation duly organized and in good standing under the laws of the Commonwealth of Pennsylvania; and</font></div>

<div style="MARGIN-BOTTOM: 12pt; TEXT-INDENT: 54pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">2.</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 6pt">&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">The shares of Company Common Stock to be registered will, when issued pursuant to and in accordance with the applicable Plan, be duly authorized, fully paid and non-assessable.</font></div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">We hereby consent to the filing of this opinion as an Exhibit to the Registration Statement.&#160; In giving this consent, we do not thereby admit that we are experts within the meaning of Section 7 of the Securities Act of 1933 and the rules and regulations promulgated thereunder.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 261.35pt; LINE-HEIGHT: 13.7pt">Very truly yours,</div>

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<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 261.35pt; LINE-HEIGHT: 13.7pt">/s/&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-VARIANT: small-caps">Rhoads &amp; Sinon LLP</font></div>
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<DESCRIPTION>CITIZENS FINANCIAL SERVICES, INC. 2016 EQUITY INCENTIVE PLAN
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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">CITIZENS FINANCIAL SERVICES, INC.<font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><br>
</font> 2016&#160;EQUITY INCENTIVE PLAN</div>

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</font> 2016&#160;EQUITY INCENTIVE PLAN</div>

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<div><u>ARTICLE </u></div>

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<div>ARTICLE 1. PURPOSE OF THE PLAN; TYPES OF AWARDS</div>

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<div>ARTICLE 2. DEFINITIONS</div>

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<div>ARTICLE 3. ADMINISTRATION</div>

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<div>ARTICLE 4. COMMON&#160;STOCK SUBJECT TO THE PLAN</div>

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<div>ARTICLE 5. ELIGIBILITY</div>

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<div>ARTICLE 6. STOCK AWARDS</div>

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<div>ARTICLE 7. TERMS AND CONDITIONS OF RESTRICTED STOCK AWARDS</div>

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<div>ARTICLE 8. ADJUSTMENT PROVISIONS</div>

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<div>ARTICLE 9. GENERAL PROVISIONS</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">ARTICLE 1.&#160; PURPOSE OF THE PLAN; TYPES OF AWARDS</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">1.1&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Purpose</u></font>.&#160; The Citizens Financial Services, Inc. 2016&#160;Equity Incentive Plan is intended to provide selected employees and non&#8209;employee directors of Citizens Financial Services, Inc. and its Subsidiaries with an opportunity to acquire Common Stock of the Corporation.&#160; The Plan is designed to help the Corporation attract, retain and motivate employees and non&#8209;employee directors to make substantial contributions to the success of the Corporation's business and the businesses of its Subsidiaries.&#160; Awards will be granted under the Plan based, among other things, on a participant's level of responsibility and performance.</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.1&#160; "Agreement."&#160; A written or electronic agreement between the Corporation and a Participant evidencing the grant of a Restricted Stock Award.&#160; A Participant may be issued one or more Agreements from time to time, reflecting one or more Restricted Stock Awards.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.2&#160; "Awards."&#160; A Stock Award or a Restricted Stock Award, as the context reasonably shall require.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.3&#160; "Board."&#160; The Board of Directors of the Corporation.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.4&#160; "Change in Control."<font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">&#160; </font>Except as otherwise provided in an Agreement, the first to occur of any of the following events:</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(a)&#160; any "Person" (as such term is used in Sections&#160;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&#160;(d);</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(b)&#160; 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;</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(c)&#160; 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;</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(d)&#160; the shareholders of the Corporation approve a merger, consolidation, or other reorganization of the Corporation, unless:</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(e)&#160; a plan of liquidation or dissolution of the Corporation, other than pursuant to bankruptcy or insolvency laws, is adopted; or</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(f)&#160; 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&#8209;thirds of the directors then still in office who were directors at the beginning of the period.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">Notwithstanding Clause&#160;(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&#160;(a).&#160; In no event shall a Change in Control of the Corporation be deemed to occur under Clause&#160;(a) with respect to Benefit Plans.</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.5&#160; "Code."&#160; The Internal Revenue Code of&#160;1986, as amended.</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.8&#160; "Common Stock."&#160; 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.9&#160; "Corporation."&#160; Citizens Financial Services, Inc., a Pennsylvania corporation.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2,10&#160; "Employee."&#160; Any common law employee of the Corporation or a Subsidiary.&#160; An Employee does not include any individual who: (i)&#160;does not receive payment for services directly from the Corporation's or a Subsidiary's payroll; (ii)&#160;is employed by an employment agency that is not a Subsidiary; or (iii)&#160;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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.11&#160; "Exchange Act."&#160; The Securities Exchange Act of&#160;1934, as amended.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.12&#160; "Non-Employee Director" means a member of the Board or a member of the board of directors of a Subsidiary who is not a common-law employee of the Corporation or a Subsidiary.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.13&#160; "Participant."&#160; An Employee or Non&#8209;Employee Director to whom a Restricted Stock Award has been awarded and remains outstanding.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.14&#160; "Performance Criteria."&#160; 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)&#160;earnings, (b)&#160;cash flow, (c)&#160;revenue, (d)&#160;financial ratios, (e)&#160;market performance, (f)&#160;shareholder return, (g)&#160;operating profits (including earnings before interest, taxes, depreciation and amortization), (h)&#160;earnings per share, (i)&#160;return on assets, (j)&#160;return on equity, (k)&#160;return on investment, (l)&#160;stock price, (m)&#160;asset quality, (n)&#160;expense reduction, (o)&#160;systems conversion, (p)&#160;special projects as determined by the Committee, and (q)&#160;acquisition integration initiatives.&#160; Performance Criteria shall be established by the Committee prior to the issuance of a Performance Grant.</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.15&#160; "Performance Goal."&#160; 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.&#160; 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.16&#160; "Performance Grant."&#160; A Restricted Stock Award, the vesting or receipt without restriction of which, is conditioned on the satisfaction of one or more Performance Goals.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.17&#160; "Plan."&#160; The Citizens Financial Services, Inc. 2016&#160;Equity Incentive Plan.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.18&#160; "Restricted Stock Award."&#160; An Award of Common Stock pursuant to the provisions of Article 7, 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.19&#160; "Retirement."&#160; 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<font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">&#160;</font>70, or attainment of age&#160;55 and the completion of five&#160;(5) years' service.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.20&#160; "Securities Act."&#160; The Securities Act of&#160;1933, as amended.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.21&#160; "Stock Award" means an Award of Common Stock granted to a Participant pursuant to Article 6 that is not subject to any restrictions or other conditions.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.22&#160; "Subsidiary."&#160; A subsidiary corporation, as defined in Code Section&#160;424(f), that is a subsidiary of the Corporation.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">2.23&#160; "Termination or Dismissal For Cause."&#160; Termination of an Employee by the Corporation or a Subsidiary or dismissal of a Non-Employee Director from the Board after:</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(a)&#160; 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;</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(b)&#160; such Employee or Non-Employee Director is convicted of or enters a plea of guilty or <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>nolo</u></font>&#160;<font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>contendere</u></font> 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&#160;consecutive days;</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(c)&#160; 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;</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(d)&#160; 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</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(e)&#160; a determination by the Committee that such Employee or Non-Employee Director has failed to conform to the Corporation's Code of Conduct.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">For purposes of the Plan, no act, or failure to act, on an 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">ARTICLE 3.&#160; ADMINISTRATION</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">3.1&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>The Committee</u></font>.&#160; 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)&#160;"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&#160;16(b) of the Exchange Act, and (b)&#160;"outside directors" within the meaning of Code&#160;Section 162(m).&#160; The Board may from time to time remove members from, or add members to, the Committee.&#160; Vacancies on the Committee, however caused, shall be filled by the Board.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">3.2&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Powers of the Committee</u></font>.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(a)&#160; 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.&#160; 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(b)&#160; 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:</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 57.6pt">(i)&#160; determine and select the Employees and Non&#8209;Employee Directors to be granted Awards (it being understood that more than one Award may be granted to the same person);</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 57.6pt">(ii)&#160; determine the number of shares subject to each Award;</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 57.6pt">(iii)&#160; determine the date or dates when the Awards will be granted;</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 57.6pt">(iv)&#160; determine whether Awards are to consist of Stock Awards or Restricted Stock Awards;</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 57.6pt">(v)&#160; determine the Performance Criteria and establish Performance Goals with respect thereto, to be applied to a Restricted Stock Award; and</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 57.6pt">(vi)&#160; prescribe the form, which shall be consistent with the Plan document, of the Agreement evidencing any Restricted Stock Awards granted under the Plan.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">3.3&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Liability</u></font>.&#160; 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 Awards granted under this Plan.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">3.4&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Establishment and Certification of Performance Goals</u></font>.&#160; The Committee shall establish, prior to grant, Performance Goals with respect to each Restricted Stock Award intended to constitute a Performance Grant.&#160; Except as may otherwise be provided in Article&#160;7 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">3.5&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>No Waiver of Performance Goals</u></font>.&#160; The Committee or the Board shall not waive any Performance Goal or Goals with respect to the grant of any Restricted Stock Award hereunder.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">3.6&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Performance Grants Not Mandatory</u></font>.&#160; Nothing herein shall be construed as requiring that any Restricted Stock Award be made a Performance Grant.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">ARTICLE 4.&#160; COMMON STOCK SUBJECT TO THE PLAN</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">4.1&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Common Stock Authorized</u></font>. The initial total aggregate number of shares of Common Stock subject to Awards under this Plan shall not exceed 150,000.&#160; The limitation established by the preceding sentence shall be subject to adjustment as provided in Article&#160;8.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">4.2&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Shares Available</u></font>.&#160; 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.&#160; 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.</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">ARTICLE 5.&#160; ELIGIBILITY</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">5.1&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Participation</u></font>.&#160; Awards shall be granted by the Committee only to persons who are Employees and Non&#8209;Employee Directors.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">ARTICLE 6.&#160; STOCK AWARDS</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">6.1&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>General</u></font>.&#160; The Committee may grant Stock Awards to Participants without restrictions or other conditions.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">6.2&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Awards and Certificates</u></font>.&#160; Shares of Common Stock awarded pursuant to a Stock Award shall be registered in the name of the Participant and evidenced either by the issuance of certificates or by book entry on the stock transfer records of the Corporation.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">ARTICLE 7.&#160; TERMS AND CONDITIONS OF RESTRICTED STOCK AWARDS</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">7.1&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>In General</u></font>.&#160; 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.&#160; Subject to Section&#160;3.6, a Restricted Stock Award shall be subject to a vesting schedule or Performance Goals, or both.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">7.2&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Minimum Vesting Period for Certain Restricted Stock Awards</u></font>.&#160; 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)&#160;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)&#160;unless otherwise provided in an Agreement, a Change in Control occurs; or (iii)&#160;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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">7.3&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Waiver of Vesting Period for Certain Restricted Stock Awards</u></font>.&#160; In the event that a Participant's employment or service as a Non&#8209;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<font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">&#160;</font>(but not any Performance Goal or Goals) with respect to a Restricted Stock Award held by such Participant.&#160; Any such waiver may be made with retroactive effect, provided it is made within 60&#160;days following such Participant's termination of employment or service as a Non&#8209;Employee Director.</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">7.4&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Awards and Certificates</u></font>.&#160; Shares of Common Stock awarded pursuant to a Restricted Stock Award shall be registered in the name of the Participant and evidenced either by the issuance of certificates or by book entry on the stock transfer records of the Corporation showing the applicable restrictions, if any.&#160; Certificates evidencing Restricted Stock Awards, bearing appropriate restrictive legends, shall be held in custody by the Corporation until the restrictions are no longer in effect.&#160; Within 30 days 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 with respect to which the restrictions have lapsed or been waived, or shall register the shares of Common Stock on the stock transfer records of the Company free of the applicable restrictions.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">7.5&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Stock Powers</u></font>.&#160; 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">7.6&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Forfeiture of Restricted Stock Awards</u></font>.&#160; 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&#8209;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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">7.7&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Assignment, Transfer, Etc. of Restricted Stock Rights</u></font>.&#160; 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">ARTICLE 8.&#160; ADJUSTMENT PROVISIONS</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">8.1&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Share Adjustments</u></font>.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(a)&#160; 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)&#160;the shares of Common Stock authorized hereunder to be made the subject of Restricted Stock Awards, (ii)&#160;the shares of Common Stock then subject to outstanding Restricted Stock Awards, (iii)&#160;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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(b)&#160; 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.</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(c)&#160; 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">8.2&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Corporate Changes</u></font>.&#160; 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">8.3&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Fractional Shares</u></font>.&#160; Fractional shares resulting from any adjustment in Restricted Stock Awards pursuant to this Article may be settled as the Committee shall determine.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">8.4&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Binding Determination</u></font>.&#160; 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.&#160; Notice of any adjustment shall be given by the Corporation to each holder of a Restricted Stock Award which shall have been so adjusted.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">ARTICLE 9.&#160; GENERAL PROVISIONS</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.1&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Effective Date</u></font>.&#160; The Plan shall become effective upon the approval of the Plan by the shareholders of the Corporation within 12&#160;months of adoption by the Board.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.2&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Termination of the Plan</u></font>.&#160; Unless previously terminated by the Board, the Plan shall terminate on, and no Award shall be granted after, the day immediately preceding the tenth anniversary of its adoption by the Board.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.3&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Limitation on Termination, Amendment or Modification</u></font>.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(a)&#160; 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:</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 57.6pt">(i)&#160; increases the maximum number of shares of Common Stock as to which Awards may be granted under the Plan (except as provided in Section&#160;8.1);</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 57.6pt">(ii)&#160; changes the class of eligible Participants; or</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 57.6pt">(iii)&#160; 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.</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(b)&#160; No amendment, modification, suspension or termination of the Plan shall in any manner affect any Award theretofore granted under the Plan without the consent of the Participant or any person validly claiming under or through the Participant.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.4&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Rights as a Shareholder</u></font>.&#160; A Participant shall be entitled to the rights of a shareholder to vote and to receive dividends and other distributions payable after the date of an Award with respect to Restricted Stock Award shares.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.5&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>No Right to Grant of Award or Continued Employment or Service</u></font>.&#160; Nothing contained in this Plan or otherwise shall be construed to (a)&#160;require the grant of an Award to an individual who qualifies as an Employee or Non&#8209;Employee Director, or (b)&#160;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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.6&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>No Obligation</u></font>.&#160; 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.7&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Withholding Taxes</u></font>.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(a)&#160; Subject to the provisions of Subsection&#160;(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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(b)&#160; With the permission of the Committee, a Participant who is an Employee may satisfy the withholding obligation described in Subsection&#160;(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.&#160; 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.8&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>No Elective Deferral of Payment</u></font>.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">No Participant has the right under the terms of this Plan to elect to defer the receipt of all or any portion of Awards to such Participant.&#160; It is the Company's intent that the Plan, and each Award granted under the Plan, be exempt from the requirements imposed by Code Section 409A on nonqualified deferred compensation plans and, in furtherance of that intent, the Committee, in its exercise of administrative discretion hereunder, shall at all times do so in a manner that avoids compensation deferral arrangements that would be subject to Code Section 409A.&#160; Furthermore, Awards that have been made subject to restrictions and other conditions shall be paid out as soon as practicable once all restrictions and other conditions have been satisfied or lapsed, and in any event shall be paid no later than the 15<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">th</sup> day of the third month following the end of the calendar year in which all Performance Goals restrictions and other conditions are satisfied.</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.9&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Compliance with Government Regulations</u></font>.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.5pt">Notwithstanding that the Plan, and each Award issued pursuant to the Plan, is intended to be exempted from the requirements Code Section 409A imposes on nonqualified deferred compensation plans, in the event that any Award under the Plan is determined to provide nonqualified deferred compensation within the meaning of said Section 409A, the distribution of such Award to a key employee of the Corporation or a Subsidiary, as defined in Code Section 416(i) without regard to paragraph (5) thereof, being made on account of the key employee's separation from service with the Corporation or a Subsidiary shall be deferred to a date that is six months after the separation from service.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.10&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Listing and Registration of Shares</u></font>.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(a)&#160; No Common Stock share certificate shall be delivered, or book entry registration made, 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 an 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 Award, until such listing, registration, qualification, consent, or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 72pt">(b)&#160; 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.&#160; 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:</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 72pt; LINE-HEIGHT: 13.7pt">'THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF&#160;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.'</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.11&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Disinterested Director</u></font>.&#160; For purposes of this Plan, a director shall be deemed "disinterested" if such person could qualify as a member of the Committee under Section&#160;3.1.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.12&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Gender; Number</u></font>.&#160; Words of one gender, wherever used herein, shall be construed to include each other gender, as the context requires.&#160; Words used herein in the singular form shall include the plural form, as the context requires, and <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>vice</u></font>&#160;<font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>versa</u></font>.</div>

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<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.13&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Applicable Law</u></font>.&#160; 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.14&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Headings</u></font>.&#160; 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.</div>

<div style="FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 49.7pt">9.15&#160; <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><u>Clawback</u></font>.&#160; This Plan and Awards made hereunder shall be subject to any "claw-back" policy of the Corporation, whether adopted prior or subsequent to the date of this Plan.</div>
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<TYPE>EX-23.2
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<FILENAME>snodgrassconsentequityincetn.htm
<DESCRIPTION>CONSENT OF S.R. SNODGRASS, P.C.
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 We consent to the incorporation by reference in this Registration Statement on Form S-8 of Citizens Financial Services, Inc. of our report dated March 10, 2016, relating to our audit of the consolidated financial statements and internal control over financial reporting, which appears in the Annual Report on Form 10-K of Citizens Financial Services, Inc. for the year ended December 31, 2015.</div>

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/s/S.R. Snodgrass, P.C.<br>
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 Wexford, Pennsylvania</div>

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