Document:

Exhibit

PAREXEL INTERNATIONAL CORPORATION 
PERFORMANCE Restricted Stock Unit Agreement
PAREXEL International Corporation (the “Company”) hereby grants the following performance restricted stock units pursuant to its 2015 Stock Incentive Plan.  The terms and conditions attached hereto are also a part hereof.
Notice of Grant
	
		
	Name of recipient (the “Participant”):
	«Name»

	Grant Date:
	«the Grant Date»

	Number of Performance Restricted Stock Units (“PRSUs”) granted:
	«Number of Awards Granted»

	Number, if any, of PRSUs that vest immediately on the grant date:
	None.

	PRSUs that are subject to vesting schedule:
	«Number of Awards Granted»

	Final Vesting Date:
	Third anniversary of the Grant Date

	All vesting is dependent on the Participant continuing to perform services for the Company, as provided herein.

This grant of PRSUs satisfies in full all commitments that the Company has to the Participant with respect to the issuance of stock, stock options or other equity securities.
	
		
	 
	PAREXEL INTERNATIONAL CORPORATION

	____________________________________ Signature of Participant
	

	____________________________________ Street Address
	By:
Josef H. von Rickenbach
Chairman and CEO

	____________________________________ City/State/Zip Code

PAREXEL INTERNATIONAL CORPORATION 

Performance Restricted Stock Unit Agreement
Incorporated Terms and Conditions
For valuable consideration, receipt of which is acknowledged, the Company and the Participant agree as follows: 
1. Grant of PRSUs.

In consideration of services rendered and to be rendered to the Company, by the Participant, the Company has granted to the Participant, subject to the terms and conditions set forth in this Peformance Restricted Stock Unit Agreement (this “Agreement”) and in the Company’s 2015 Stock Incentive Plan (the “Plan”), an award with respect to the number of performance restricted shares units (the “PRSUs”) set forth in the Notice of Grant that forms part of this Agreement (the “Notice of Grant”).  Each PRSU represents the right to receive one or more shares of common stock, $0.01 par value per share, of the Company (the “Common Stock”) upon vesting of the PRSU, subject to the terms and conditions set forth herein.  The number of PRSUs set forth in the Notice of Grant is referred to as the “Target PRSUs”.  
2.  Vesting, Forfeiture and Determination of Shares Earned. 

(a)The PRSUs shall vest and pay out in accordance with Exhibit A attached hereto and incorporated herein.

3.  Issuance of Shares.
Subject to the terms and conditions of this Agreement (including any Withholding Tax obligations), as soon as practicable after the Final Vesting Date (as defined in Exhibit A), the Company shall deliver to the Participant, for each PRSU that becomes vested, one share of Common Stock (together, the “Shares”). The Company must, in any event, issue the applicable Shares no later than the later of (i) December 31 of the calendar year in which an applicable Final Vesting Date occurs and (ii) the fifteenth day of the third calendar month following the Final Vesting Date. Subject to the previous sentence and the other terms of this Agreement and the Plan, the delivery date shall be in the sole and absolute discretion of the Company. Notwithstanding the foregoing, and solely to the extent necessary to avoid the penalty provisions under Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), if the Final Vesting Date occurs because of the Participant’s termination of employment and if the Company determines that the Participant is a “specified employee” as defined under Section 409A, then the distribution of newly vested Shares shall be delayed until the earlier of (i) the date that is six months plus one day after the date of termination and (ii) the 10th day after the Participant’s date of death. Until the Final Vesting Date, the Participant will have no rights to any Shares or any rights associated with such Shares, including without limitation dividend or voting rights. 

4.  Acceleration; Deferral.

(a)Acceleration. In no event may the Company deliver the Shares to the Participant earlier than an applicable Final Vesting Date, except as the Plan may otherwise provide; provided, however, that in no case shall the delivery of Shares be accelerated to a date earlier than the Final Vesting Date unless such acceleration is permitted or required by Section 409A. 

(b)Deferral. In no event may the Company or the Participant defer the delivery of the Shares beyond the date specified in Section 3 of this Agreement, unless such deferral is permitted or required by Section 409A. 

5.  Transferability. 
 
The PRSUs and shares they represent may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of (whether by operation of law or otherwise) (collectively, a “transfer”), except that this Agreement may be transferred by the laws of descent and distribution or as otherwise permitted under the Plan. The Participant may only transfer the Shares that may be issued pursuant to this Agreement following the Final Vesting Date that covers them. 

6.  Withholding Taxes.  
(a)The Participant acknowledges that the Participant has reviewed with the Participant’s own tax advisors the federal, state, local and foreign tax consequences of this investment and the actions contemplated by this Agreement. The Participant affirms that the Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. 
(b)The Company’s obligation to deliver Shares to the Participant upon or after the vesting of the PRSUs shall be subject to the Participant’s satisfaction of all income tax (including federal, state and local taxes), social insurance, payroll tax, payment on account or other tax related withholding requirements (“Withholding Taxes”). 
(c)The Participant acknowledges and agrees that the Company has the right to deduct from payments of any kind otherwise due to the Participant any Withholding Taxes to be withheld with respect to the actions contemplated by this Agreement.
(d)The Participant hereby authorizes the Company to reduce the number of Shares delivered to Participant at the applicable Final Vesting Date by the number of Shares required to satisfy the tax withholding requirements (based on the fair market value of shares at such time).  Participant’s acknowledgement and acceptance of these tax withholding provisions are conditions precedent to the right of Participant to receive the Shares under the Plan and this Agreement.
(e)In lieu of the reduction of Shares delivered to satisfy the Company’s withholding obligations as described in paragraph (d) above, Participant may either (i) pay to the Company the amount of tax required to be withheld in cash, by check or in another form satisfactory to the Company (“Cash Payment”) or (ii) at such time as the Participant is not aware of any material nonpublic information about the Company or the Common Stock, and the Participant is not subject to any restrictions on trading activities on the Common Stock imposed by the Company, the Participant may execute the instructions set forth in Exhibit B attached hereto (the “Automatic Sale Instructions”) as the means of satisfying such tax obligation.  Any election to make a Cash Payment must be communicated to the Company no later than seven days prior to the date the restrictions lapse, and any Cash Payment must be made by the Vesting Date or such later date as is established by the Company (not to exceed 15 days after the Vesting Date on which the restrictions lapse).  Any Automatic Sale Instructions must be made not later than one month prior to a Vesting Date, and in the event the Participant subsequently cancels any Automatic Sale Instructions, he or she may not enter into any further Automatic Sale Instructions with regard to the Shares.

7.  Securities Laws. 
 
Notwithstanding any other provision of the Plan or this Agreement, the Company will not be required to issue, and the Participant may not sell, assign, transfer or otherwise dispose of, any shares of Common Stock received as payment of the PRSUs, unless (a) there is in effect with respect to the shares of Common Stock received as payment of the PRSUs a registration statement under the Securities Act of 1933, as amended, and any applicable state or foreign securities laws or an exemption from such registration, and (b) there has been obtained any other consent, approval or permit from any other regulatory body that the Compensation Committee (the “Committee”) of the Company’s Board of Directors, in its sole discretion, deems necessary or advisable. The Company may condition such issuance, sale or transfer upon the receipt of any representations or agreements from the parties involved, and the placement of any legends on certificates representing Common Stock received as payment of the PRSUs, as may be deemed necessary or advisable by the Company to comply with such securities law or other restrictions. 
 
8.  Provisions of the Plan

This Agreement is subject to the provisions of the Plan, a copy of which is furnished to the Participant with this Agreement. Any capitalized terms used in this Agreement but not defined in the Agreement shall have the same meaning as in the Plan.

9.  Miscellaneous. 

(a)Section 409A. This Agreement is intended to be exempt from or to comply with the requirements of Section 409A and shall be construed consistently therewith. In any event, the Company makes no representations or warranty and will have no liability to the Participant or any other person, other than with respect to payments made by the Company in violation of the provisions of this Agreement, if any provisions of or payments under this Agreement are determined to constitute deferred compensation subject to Section 409A but not to satisfy the conditions of that section. 
(b)Unsecured Creditor. This Agreement shall create a contractual obligation on the part of Company to make payment of the PRSUs credited to the Participant’s account at the time provided for in this Agreement. Neither the Participant nor any other party claiming an interest in the PRSUs or related stock hereunder shall have any interest whatsoever in any specific assets of the Company. The Participant’s right to receive payments hereunder shall be that of an unsecured general creditor of Company.
(c)Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law. 
(d)Waiver. Any provision for the benefit of the Company contained in this Agreement may be waived, either generally or in any particular instance, by the Board of Directors of the Company or the Committee, except that to the extent this Award is intended to comply with the performance-based compensation rules of Section 162(m) of the Code there may not be a waiver of the Performance Vesting Condition. 
(e)Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Company and the Participant and its and the Participant’s respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 5 of this Agreement. 

(f)Notice. All notices required or permitted hereunder shall be in writing and deemed effectively given upon personal delivery or five calendar days after deposit in the United States Post Office, by registered or certified mail, postage prepaid, addressed to the other party hereto at, for the Company, its primary business address (attention Director of Human Resources) and, for the Participant, at the Participant’s home address as reflected in the records of the Company, or at such other address or addresses as either party shall designate to the other in accordance with this Section 9(f). 
(g)Entire Agreement. This Agreement and the Plan constitute the entire agreement between the parties, and supersede all prior agreements and understandings, relating to the subject matter of this Agreement. 
(h)Governing Law. This Agreement shall be construed, interpreted and enforced in accordance with the internal laws of the Commonwealth of Massachusetts without regard to any applicable conflicts of laws. 
(i)Electronic Delivery. The Company may, in its sole discretion, decide to deliver any documents related to participation in the Plan or awards granted under the Plan by electronic means or to request the Participant’s consent to participate in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and, if requested, to agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company. 
(j)Acknowledgments. The Participant acknowledges that the Participant: (i) has read this Agreement; (ii) has been represented in the preparation, negotiation and execution of this Agreement by legal counsel of the Participant’s own choice or has voluntarily declined to seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully aware of the legal and binding effect of this Agreement; (v) understands that the law firm of Wilmer Cutler Pickering Hale and Dorr LLP is acting as counsel to the Company in connection with the actions contemplated by the Agreement, and is not acting as counsel for the Participant and (vi) in accepting this award, agrees to be bound by any clawback policy that the Company may adopt in the future. 

PARTICIPANT’S ACCEPTANCE 
I hereby accept the foregoing grant and agree to the terms and conditions thereof and acknowledge receipt of a copy of the Company’s 2015 Stock Incentive Plan. 
 
	
			
	 
	 
	 

	PARTICIPANT

	 

	 

	 
	 

	Print Name:
	 
	 

	
			
	 
	 
	 

	 
	 

	Date:
	 
	 

 

Exhibit A
Vesting and Payout of Performance Restricted Stock Units (FY A)
(a)      While you remain employed by the Company, payment on PRSUs shall be conditioned on the attainment of the service condition in (i) below (the “Service Condition”) and the attainment of the performance vesting condition in (ii) below (the “Performance Vesting Condition”).  The determination of the number of Shares payable with respect to a PRSU as to which the Service Condition and the Performance Vesting Condition have been satisfied shall be made in accordance with the performance payout matrix set forth in (ii) below.  Absent any contrary provision in Paragraph (b) below, if you cease to be employed by the Company for any reason or no reason, you will immediately and automatically forfeit all rights to any of your PRSUs.  The “Annual Target PRSU” shall equal the quotient obtained by dividing the Target PRSU by 3.
(i)    Service Condition. The Service Condition is continued employment with (or provision of services to) the Company through the third anniversary of the date of grant.
(ii)    Performance Vesting Condition and Determination of Shares Earned.  The number of Shares earned with respect to each PRSU as to which the Service Condition has been satisfied is based on the achievement of the following target: 

 (iii)    Final Vesting Date.  Payment on PRSUs pursuant to this Paragraph shall occur only after the Service Condition is satisfied (even though interim performance has been attained) and the Committee has certified in writing (which may be substantiated by the inclusion of such a determination in the minutes of a meeting of the Committee) that the Performance Vesting Condition and all other material terms applicable to such PRSU are satisfied (the “Final Vesting Date”).  
(b)    Notwithstanding any other provision of this Agreement, the Final Vesting Date for all unvested PRSUs will be accelerated to the earliest of your death, Disability (as defined below) or immediately prior to a Change of Control (as defined below), and Shares shall be issued in respect of each such vested PRSU as set forth in this Paragraph (b).
(i)    Death or Disability. In the event of your death or Disability (within the meaning of Treasury Regulations Section 1.409A-3(g)(4) or any successor regulation) , this PRSU shall fully vest and you or your estate shall receive pursuant to Section 3 the number of Shares earned in accordance with the table above based on any actually completed performance periods as of the date of your death or Disability.
(ii)    Change of Control. In the event of a Change of Control of the Company, this PRSU shall fully vest immediately prior to the Change of Control and you shall receive immediately prior to such Change of Control the number of Shares earned in accordance with the table above based on interim performance measured through the Change of Control and treating the Change of Control as the last day of any completed and incomplete performance periods.
For purposes of this Agreement, “Change of Control” means the closing of (i) a merger, consolidation, liquidation or reorganization of the Company into or with another Company or other legal person, after which merger, consolidation, liquidation or reorganization of the capital stock of the Company outstanding prior to consummation of the transaction is not converted into or exchanged for or does not represent more than 50% of the aggregate voting power of the surviving or resulting entity; (ii) the direct or indirect acquisition by any person (as the term “person” is used in Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended) of more than 50% of the voting capital stock of the Company, in a single or series of related transactions; or (iii) the sale, exchange, or transfer of all or substantially all of the Company’s assets (other than a sale, exchange or transfer to one or more entities where the stockholders of the Company immediately before such sale, exchange or transfer retain, directly or indirectly, at least a majority of the beneficial interest in the voting stock of the entities to which the assets were transferred); provided that the event described in (i), (ii) or (iii) is also described in Code section 409A(2)(A)(v) and the regulations thereunder.

Exhibit B
Automatic Sale Instructions
The undersigned hereby consents and agrees that any taxes due on a vesting date as a result of the vesting of PRSUs on such date shall be paid through an automatic sale of shares as follows:
(a)    Upon any vesting of PRSUs pursuant to Section 2 hereof, the Company shall sell, or arrange for the sale of, such number of shares of Common Stock issuable with respect to the PRSUs that vest pursuant to Section 2 as is sufficient to generate net proceeds sufficient to satisfy the Company’s minimum statutory withholding obligations with respect to the income recognized by the Participant upon the vesting of the RSUs (based on minimum statutory withholding rates for all tax purposes, including payroll and social security taxes, that are applicable to such income), and the Company shall retain such net proceeds in satisfaction of such tax withholding obligations.

(b)    The Participant hereby appoints the Chief Financial Officer of the Company his attorney in fact to sell the Participant’s shares of Common Stock in accordance with this Annex A.  The Participant agrees to execute and deliver such documents, instruments and certificates as may reasonably be required in connection with the sale of the Shares pursuant to this Annex A.

(c)    The Participant represents to the Company that, as of the date hereof, he or she is not aware of any material nonpublic information about the Company or the Common Stock.  The Participant and the Company have structured this Agreement, including this Annex A, to qualify for the affirmative defense to liability under Section 10(b) of the Securities Exchange Act of 1934 under Rule 10b5-1(c) promulgated under such Act.

The Company shall not deliver any shares of Common Stock to the Participant until it is satisfied that all required withholdings have been made.

These instructions apply to the PRSUs that vest on (check all that apply):

□    All Vesting Dates

____________________________________

Participant Name:_____________________
Date:  ____________________Exhibit 10.1

 

CHANGE OF CONTROL AGREEMENT

 

 

AGREEMENT made as
of November 9, 2016, by and among CODORUS VALLEY BANCORP, INC., a Pennsylvania business corporation (hereinafter referred
to as the “Corporation”), PEOPLESBANK, a Codorus Valley Company, a Pennsylvania state chartered bank (hereinafter
referred to as the “Bank”) and CHARLES T. FIELD, an adult individual (hereinafter referred to as “Executive”).

 

 

W I T N E S S E T H:

 

WHEREAS, Executive
is now serving as Senior Vice President and Chief Financial Officer of the Bank, a wholly-owned subsidiary of the Corporation;
and

 

WHEREAS, the Corporation
and the Bank consider the continued services of Executive to be in the best interests of the Corporation and the Bank; and

 

WHEREAS, the Corporation,
the Bank and Executive desire to enter into this Agreement whereby the Bank agrees to make certain payments to Executive upon termination
under specific conditions, in order to induce Executive to continue in employment.

 

NOW, THEREFORE,
in consideration of the continued employment of Executive and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, intending to be legally bound hereby, Executive, the Corporation and the Bank agree as follows:

 

 

ARTICLE I

 

TERMINATION PURSUANT TO A CHANGE OF CONTROL

 

1.1       Definition:
Termination Pursuant to a Change of Control. Any of the following events occurring during the period commencing with the
date of any “Change of Control” (as defined in ARTICLE II hereof) and ending on the second (2nd) anniversary
date of the Change of Control, shall constitute a “Termination Pursuant to a Change of Control:”

 

(A)       Executive's
employment is terminated by the Corporation, the Bank or an acquiror or successor of either without “Good Cause” (as
defined below); or

 

(B)        Any
of the following events occurs and Executive thereafter terminates Executive's employment:

 

(i)          any
reduction in Executive's responsibilities, including reporting responsibilities, or authority, including such responsibilities
or authorities as may be increased from time to time; or

 

 

 

     

     

    

 

 

(ii)       any
reassignment of Executive to a principal place of employment which is more than twenty-five (25) miles from Executive's principal
place of employment immediately prior to the Change of Control; or

 

(iii)       any
material reduction in Executive's annual base salary as the same may be increased from time to time; or

 

(iv)       any
failure to provide Executive with benefits at least as favorable as those enjoyed by Executive under Corporation's or Bank's retirement
or pension, life insurance, medical, health and accident, disability or other employee or incentive compensation plans in which
Executive participated or the taking of any action that would materially reduce any of such benefits, unless such reduction is
part of a reduction applicable in each case to all employees; or

 

(v)       any
other action or inaction that constitutes a material breach of this Agreement by the Corporation or the Bank;

 

provided, however, that the
Executive must furnish notice of her intention to terminate her employment due to the existence of one or more of the above-delineated
conditions within ninety (90) days of the initial existence of such conditions, after which time the Bank shall have thirty (30)
days to remedy such condition. The Executive shall not be required to maintain her employment with the Bank during such thirty
(30) day period; however, should the Bank remedy the condition giving rise to the right of termination hereunder within such time
period, the Executive shall not be entitled to payment hereunder.

 

For purposes of this Section
1.1(A), “Good Cause” shall mean: (i) the willful failure by the Executive to substantially perform her duties as an
officer of the Corporation or Bank after Executive's receipt of written notice from the Bank of such failure, other than a failure
resulting from the Executive's incapacity because of physical or mental illness or (ii) the willful engaging by the Executive in
misconduct injurious to the Corporation or Bank or (iii) the dishonesty or gross negligence of the Executive in the performance
of her duties or (iv) the breach of Executive's fiduciary duty involving personal profit or (v) the violation of any law, rule
or regulation governing banks or bank officers or any final cease and desist order issued by a bank regulatory authority, any of
which materially jeopardizes the business of the Corporation or Bank or (vi) moral turpitude or other conduct on the part of the
Executive which brings public discredit to the Corporation or Bank. The burden of establishing the validity of any termination
for Good Cause shall rest upon the Corporation or the Bank.

 

 

 

    	 	2	 

     

    

 

1.2       Compensation
Upon Termination Pursuant to a Change of Control. If Executive's employment is terminated and such termination is a Termination
Pursuant to a Change of Control (as defined in Section 1.1), the Bank (or any acquiror or successor thereto) shall provide (or
cause to be provided) the following to Executive:

 

(A)       The
Bank shall pay Executive within ten (10) days following the Termination Pursuant to the Change of Control a lump sum payment in
an amount equal to one (1) times: (i) the highest of Executive's annualized base salary at the time of or during one of the three
calendar years immediately preceding the Termination Pursuant to a Change of Control plus (ii) the highest bonus earned by Executive
with respect to one of the three calendar years immediately preceding the date of the Termination Pursuant to a Change of Control;
and

 

(B)       For
a period of one (1) year, commencing as of the Termination Pursuant to the Change of Control, the Bank also shall maintain in full
force and effect, for the continued benefit of the Executive, all employee benefit plans and programs to which the Executive was
entitled prior to the date of termination, if the Executive's continued participation is possible under the general terms and provisions
of such plans, and programs, except that if the Executive's participation in any health, medical, life insurance, or disability
plan or program is barred, the Bank shall obtain and pay for, on the Executive's behalf, individual insurance plans, policies or
programs which provide to the Executive health, medical, life and disability insurance coverage which is substantially equivalent
to the insurance coverage to which Executive was entitled prior to the date of termination.

 

1.3       Other
Benefits. The payments provided by this ARTICLE I shall not affect Executive's rights to receive any payments or benefits
to which Executive may be or become entitled under any other existing or future agreement or arrangement of the Corporation, the
Bank or any successor of either with the Executive, or under any existing or future benefit plan or arrangement of the Corporation,
the Bank or any successor in which Executive is or becomes a participant, or under which Executive has or obtains rights, including
without limitation, any qualified or nonqualified deferred compensation or retirement plans or programs or any outstanding stock
options or similar agreements. Any such rights of Executive shall be determined in accordance with the terms and conditions of
the applicable agreement, arrangement or plan and applicable law, provided, however, that Executive shall not be
entitled to any severance payments in addition to those provided hereunder.

 

1.4       Withholding
for Taxes. All payments required to be made under this Agreement will be made in accordance with the Bank's or other payor's
normal payroll and will be subject to withholding of such amounts relating to tax and/or other payroll deductions as may be required
by law.

 

1.5       Excess
Parachute Payment Limitation. Notwithstanding any other provision of this Agreement, if the sum of the payments to the
Executive described in this Agreement and in any other agreement, program, or plan between the Executive and the Corporation or
the Bank (or an affiliate of the Bank) attributable to the same Change in Control constitute “excess parachute payments”
(as defined in Section 280G(b)(1) of the Internal Revenue Code of 1986, as amended (“Code”), the Bank shall reduce
the amounts otherwise payable to the Executive under this Agreement so that the Executive's total “parachute payment”
(as defined in Code Section 280G(b)(2)(A)) under this Agreement and any other agreements, programs or plans shall be One Dollar
($1.00) less than the amount that would be an “excess parachute payment.”

 

 

    	 	3	 

     

    

 

ARTICLE II

 

DEFINITION OF CHANGE OF CONTROL

 

2.1       Change
of Control.  For purposes of this Agreement, the term “Change of Control” shall mean: a Change in the Ownership
of the Corporation or the Bank (as defined below), a Change in the Effective Control of the Corporation or the Bank (as defined
below), or a Change in the Ownership of a Substantial Portion of the Assets of the Corporation or the Bank (as defined below):

 

(A)       Change
in the Ownership of the Corporation or the Bank. A Change in the Ownership of the Corporation or the Bank occurs on the date
that any one person, or more than one person acting as a group (as defined below), acquires ownership of stock of the Corporation
or the Bank that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair
market value or total voting power of the stock of the Corporation or the Bank, the acquisition of additional stock by the same
person or persons is not considered to cause a Change in Ownership of the Corporation or the Bank. An increase in the percentage
of stock owned by any one person or persons acting as a group, as a result of a transaction in which the Corporation or Bank acquires
its stock in exchange for property will be treated as an acquisition of stock for these purposes. A change in ownership of the
Corporation or the Bank only occurs when there is a transfer or issuance of stock of the Corporation or the Bank and the stock
remains outstanding after the transaction.

 

(B)       Change
in Effective Control of the Corporation or the Bank. A Change in Effective Control of the Corporation or the Bank occurs only
on the date that either:

 

(i)       Any
one person, or more than one person acting as a group (as defined below), acquires (or has acquired during the 12 month period
ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Corporation or the Bank
possessing thirty-five percent (35%) or more of the total voting power of the stock of the Corporation or the Bank; or

 

(ii)       A
majority of members of the Corporation's Board of Directors is replaced during any 12 month period by directors whose appointment
or election is not endorsed by a majority of the members of the Corporation's Board of Directors prior to the date of the appointment
or election.

 

 

    	 	4	 

     

    

 

 

If any one person,
or more than one person acting as a group, is considered to effectively control the Corporation or the Bank, the acquisition of
additional control of the Corporation or the Bank by the same person or persons is not considered to cause a Change in the Effective
Control of the Corporation or the Bank.

 

(C)       Change
in Ownership of a Substantial Portion of the Corporation's or the Bank's Assets. A Change in Ownership of a Substantial Portion
of the Corporation's or the Bank's Assets occurs on the date that any one person, or more than one person acting as a group (as
defined below), acquires (or has acquired during the 12 month period  ending on the date of the most recent acquisition by such
person or persons) assets from the Corporation or the Bank that have a total gross fair market value equal to or more than forty
percent (40%) of the total gross fair market value of all of the assets of the Corporation or the Bank immediately prior to such
acquisition or acquisitions. For this purpose, gross fair market value means the value of assets of the Corporation or the Bank,
or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

 

There is no Change
of Control under this Paragraph 2.1(C) if there is a transfer of assets to an entity that is:

 

(i)         A
shareholder of the Corporation or the Bank (immediately before the asset transfer) in exchange for or with respect to its stock;

 

(ii)        An
entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Corporation
or the Bank;

 

(iii)       A
person, or more than one person acting as a group, that owns, directly or indirectly, fifty percent (50%) or more of the total
value or voting power of all the outstanding stock of the Corporation or the Bank; or

 

(iv)       An
entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a person
described in (i), (ii) or (iii) above.

 

(D)       For
purposes of this Paragraph 2.1, persons will not be considered to be acting as a group solely because they purchase or own stock
or purchase assets of the Corporation or the Bank at the same time. However, persons will be considered to be acting as a group
if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of assets, or similar transaction,
such shareholder is considered to be acting as a group with other shareholders in a corporation only to the extent of the ownership
in the corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other
corporation.

 

 

    	 	5	 

     

    

 

2.2       Notwithstanding
anything else to the contrary set forth in this Agreement, if: (i) an agreement is executed by the Corporation or the Bank providing
for any of the transactions or events constituting a Change of Control pursuant to this ARTICLE II or an announcement concerning
a tender offer or exchange offer is made constituting a Change of Control pursuant to this ARTICLE II, and the agreement, tender
offer or exchange offer subsequently expires or is terminated without the transaction or event being consummated and (ii) a “Termination
Pursuant to a Change of Control” (as defined in ARTICLE I hereof) has not occurred prior to such expiration or termination,
then for purposes of this Agreement (including, without limitation, ARTICLE I hereof) it shall be as though such agreement was
never executed or such tender offer or exchange offer was never announced and no Change of Control event shall be deemed to have
occurred as a result.

 

2.3       The
expiration of the two year period after any Change of Control event without the occurrence of a Termination Pursuant to a Change
of Control shall not have any effect on this Agreement, which shall remain in full force and effect until its termination by written
agreement of the parties or the earlier termination of Executive's employment under circumstances not constituting a Termination
Pursuant to a Change of Control.

 

 

ARTICLE III

 

409A SAFE HARBOR

 

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

 

 

    	 	6	 

     

    

 

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

 

3.3       Delay
of Payments. Notwithstanding any other provision of this Agreement to the contrary, if the Executive is considered a “specified
employee” for purposes of section 409A of the Code (as determined in accordance with the methodology established by the Corporation
and the Bank as in effect on the date of termination), any payment that constitutes nonqualified deferred compensation within the
meaning of section 409A of the Code that is otherwise due to the Executive under this Agreement during the six month period following
her separation from service (as determined in accordance with section 409A of the Code) shall be accumulated and paid to Executive
on the first business day of the seventh (7th) month following her separation from service (the “Delayed Payment
Date”). The Executive shall be entitled to interest on any delayed cash payments from the date of termination to the Delayed
Payment Date at a rate equal to the applicable federal short term rate in effect under Code section 1274(d) for the month in which
the Executive's separation from service occurs. If the Executive dies during the postponement period, the amounts and entitlements
delayed on account of section 409A of the Code shall be paid to the person designated by the Executive in writing for this purpose,
or in the absence of any such designation, to: (i) her spouse if he survives her or (ii) to her estate if her spouse does not survive
her, on the first to occur of the Delayed Payment Date or thirty (30) days after the date of the Executive's death. The foregoing
shall apply only to those payments required hereunder, if any, that do not qualify as short term deferrals or an exempt pay arrangement
under section 409A.

 

 

ARTICLE IV

 

MISCELLANEOUS

 

4.1       Termination
of Employment. This Agreement shall not in any way obligate either the Corporation or the Bank to continue the employment
of Executive, nor shall this Agreement limit the right of the Corporation or the Bank to terminate Executive's employment for any
reason.

 

4.2       Binding
Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective
heirs, executors, administrators, successors and, to the extent permitted hereunder, assigns. All of the obligations of the Corporation
and the Bank hereunder shall be legally binding on any successor to the Corporation or the Bank, including without limitation,
any successor as a result of the consummation of a Change of Control. The right of Executive to receive payments hereunder may
not be assigned, alienated, pledged or otherwise encumbered by Executive and any attempt to do so shall be void and of no force
or effect.

 

 

    	 	7	 

     

    

 

4.3       Entire
Agreement; Amendment. This Agreement represents the entire understanding between the parties hereto with respect to the
subject matter hereof and may be amended only by an instrument in writing signed by the parties hereto.

 

4.4       Jurisdiction.
The parties hereto consent to the exclusive jurisdiction of the courts of the Commonwealth of Pennsylvania in any and all actions
arising hereunder.

 

4.5       Governing
Laws. This Agreement shall be governed and construed under the laws of the Commonwealth of Pennsylvania, without regard
to the conflict of laws principles thereof.

 

4.6       Rabbi
Trust. The Corporation and the Bank have established a rabbi trust. In the event of a Change of Control, the Corporation
and the Bank shall, in accordance with the terms of the trust, contribute the amounts described therein. Thereafter, amounts payable
under this Agreement shall be paid first from the assets of such trust and the income thereon. Notwithstanding establishment of
such trust, the Corporation and the Bank shall remain obligated to make the necessary payments under this Agreement to the extent
the trust does not, at any time, have adequate assets to pay benefits when due under this Agreement.

 

4.7       Unfunded
Obligations. The obligations to make payments hereunder shall be unfunded and Executive's right to receive any payments
hereunder shall be the same as any other unsecured general creditor.

 

4.8       Individual
Agreement. This Agreement constitutes an agreement solely between the Corporation, the Bank and Executive named herein.
This Agreement is intended to constitute a non-qualified arrangement for the benefit of the Executive and shall be construed and
interpreted in a manner consistent with such intention.

 

4.9       Headings.
All headings preceding the text of the several paragraphs hereof are inserted solely for reference and shall not constitute a part
of this Agreement, nor affect its meaning, construction or effect.

 

 

 

 

 

 

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF,
the Corporation and the Bank have each caused this Agreement to be executed and attested to on its behalf by a duly authorized
officer, and Executive hereunto has set his hand as of the day and year first above written.

 

 

	ATTEST:	 	CODORUS VALLEY BANCORP, INC.	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	By: 	 	 
	Secretary	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	ATTEST:	 	PEOPLESBANK, a Codorus Valley Company	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	By: 	 	 
	Secretary	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	WITNESS:	 	EXECUTIVE:	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 

 

 

 

 

 

 

 

    	 	9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00264-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00264-of-00352.parquet"}]]