Document:

Exhibit 10.29

 

CHANGE OF CONTROL AGREEMENT

 

 

AGREEMENT made as
of July 14, 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 MATTHEW A. CLEMENS, an adult individual (hereinafter referred to as "Executive").

 

 

W I T N E S S E T H:

 

WHEREAS, the Corporation,
the Bank and Executive entered into a Change of Control Agreement dated as of December 27, 2005 (the "2005 Agreement"),
regarding, among other things, certain payments which may be due Executive upon termination following a Change of Control; and

 

WHEREAS, Executive
is now serving as Senior Vice President and Chief Administrative 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, and concurrently herewith, to terminate the
2005 Agreement, all as hereinafter set forth.

 

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 his intention to terminate his 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 his 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 his 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 his 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.

 

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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.

 

 

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 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."

 

 

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:

 

 

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(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.

 

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

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(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.

 

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.

 

 

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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.

 

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
his 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 his 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) his spouse if she survives him or (ii) to his estate if his spouse does not
survive him, 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.

 

 

 

 

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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.

 

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.

 

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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.

 

 

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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:  	 
	(Assistant) Secretary	 	 

 

	ATTEST:	PEOPLESBANK, a Codorus Valley Company
	 	 	 
	 	 	 
	 	By:  	 
	(Assistant) Secretary	 	 

 

	WITNESS:	EXECUTIVE:
	 	 	 
	 	 	 
	 	 	 

 

 

    	10Exhibit
10.30 

 

PeoplesBank,
A Codorus Valley Company 

SALARY
CONTINUATION AGREEMENT

 

THIS
AGREEMENT is made this 1st day of October, 2002, by and between PeoplesBank, A Codorus Valley Company, a
Pennsylvania state-chartered bank located in York, Pennsylvania (the “Company”) and Matthew
Clemens (the “Executive”).

 

INTRODUCTION

 

To
encourage the Executive to remain an employee of the Company, the Company is willing to provide salary continuation benefits to
the Executive. The Company will pay the benefits from its general assets.

 

AGREEMENT

 

The
Executive and the Company agree as follows:

 

Article
1 

Definitions

 

1.1      Definitions.
Whenever used in this Agreement, the following words and phrases shall have the meanings specified:

 

1.1.1       “Change
of Control” means: A change in control of a nature that would be required to be reported in response to Item (6e) of
Schedule 14A of Regulation 14A and any successor rule or regulation promulgated under the Security Exchange Act of 1934 (the “Exchange
Act”); provided that, without limitation, such a change in control shall be deemed to have occurred if (a) any “person”
(as such term is used in Section 13(d) and 14(d) of the Exchange Act), other than the Corporation or any “person”
who on the date hereof is a director or officer of the Corporation is or becomes the “beneficial owner” (as defined
in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation representing twenty-five percent
(25%) or more of the combined voting power of the Corporation’s then outstanding securities, or (b) during any period of
two consecutive years during the term of this Agreement, individuals who at the beginning of such period constitute the Board
of Directors of the Company or Corporation cease for any reason to constitute at least a majority thereof, unless the election
of each director who was not a director at the beginning of such period has been approved in advance by directors representing
at least two-thirds of the directors then in office who were directors at the beginning of the period, or (c) the sale or transfer
of all or substantially all of the Company or Corporation’s assets.

 

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Exhibit
10.30 

1.1.2        “Date
of Change of Control” means any of the following:

 

(a)   the
first date on which a single person and/or entity, or group of affiliated persons and/or entities, acquire the beneficial ownership
of twenty-five percent (25%) or more of the Corporation’s voting securities; or

 

(b)   the
date of the transfer of all or substantially all of the Corporation or Corporation’s assets; or

 

(c)   the
date on which a merger, consolidation or combination is consummated, as applicable; or

 

(d)   the
date on which individuals who formerly constituted a majority of the Incumbent Board of Directors of the Corporation ceased to
be a majority thereof. For these purpose, “Incumbent Board” means the members of the Board of Directors of the Corporation
on the effective date of the Plan, provided that any person becoming a member of the Board of Directors subsequent to such effective
date, whose election was approved by a vote of at least two-thirds of the members of the Board of Directors comprising the Incumbent
Board, or whose nomination for election by members or stockholders was approved by the same nominating committee serving under
an Incumbent Board, shall be considered as though he were a member of the Incumbent Board.

 

1.1.3        “Code”
means the Internal Revenue Code of 1986, as amended.

 

1.1.4        “Disability”
means the Executive’s suffering a sickness, accident or injury which has been determined by the carrier of any individual
or group disability insurance policy covering the Executive, or by the Social Security Administration, to be a disability rendering
the Executive totally and permanently disabled. The Executive must submit proof to the Company of the carrier’s or Social
Security Administration’s determination upon the request of the Company.

 

1.1.5       “Early
Termination” means the Termination of Employment before Normal Retirement Age for reasons other than death, Disability,
Termination for Cause or following a Change of Control.

 

1.1.6        “Early
Termination Date” means the month, day and year in which Early Termination occurs.

 

1.1.7        “Normal
Retirement Age” means the Executive’s 62nd birthday.

 

1.1.8        “Normal
Retirement Date” means the later of the Normal Retirement Age or Termination of Employment.

 

1.1.9        “Plan
Year” means a twelve-month period commencing on October 1st and ending on September 30th of each
year. The initial Plan Year shall commence October 1st, 2002.

 

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Exhibit
10.30 

1.1.10      “Termination
for Cause” See Article 5.2.

 

1.1.11      “Termination
of Employment” means that the Executive ceases to be employed by the Company for any reason whatsoever other than by
reason of a leave of absence which is approved by the Company. For purposes of this Agreement, if there is a dispute over the
employment status of the Executive or the date of the Executive’s Termination of Employment, the Company shall have the
sole and absolute right to decide the dispute.

 

Article
2 

Lifetime
Benefits

 

2.1      Normal
Retirement Benefit. Upon Termination of Employment on or after the Normal Retirement Age for reasons other than death, the
Company shall pay to the Executive the benefit described in this Section 2.1 in lieu of any other benefit under this Agreement.

 

2.1.1
      Amount of Benefit. The annual benefit under this Section 2.1 is $50,000 (Fifty Thousand
Dollars and no/100). The Company’s Board of Directors, in its sole discretion, may increase the annual benefit under this
Section 2.1.1; however, any increase shall require the recalculation of Schedule A.

 

2.1.2
       Payment of Benefit. The Company shall pay the annual benefit to the Executive
in 12 equal monthly installments payable on the first day of each month commencing with the month following the Executive’s
Normal Retirement Date and continuing for 179 additional months.

 

2.1.3
      Benefit Increases. Commencing on the first anniversary of the first benefit payment,
and continuing on each subsequent anniversary, the Company’s Board of Directors, in its sole discretion, may increase the
benefit.

 

2.2      Early
Termination Benefit. Upon Early Termination, the Company shall pay to the Executive the benefit described in this Section
2.2 in lieu of any other benefit under this Agreement.

 

2.2.1
       Amount of Benefit. The benefit under this Section 2.2 is the Early Termination
Annual Benefit set forth in Schedule A for the Plan Year ending immediately prior to the Early Termination Date. However, any
increase in the annual benefit under Section 2.1.1 shall require the recalculation of the Early Termination benefit on Schedule
A. The Early Termination Annual Benefit amount is determined by calculating a fixed annuity which is payable in 180 equal monthly
installments, crediting interest on the unpaid balance of the Accrual Balance at an annual rate of 7.50%, compounded monthly.

 

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Exhibit
10.30 

2.2.2     
  Payment of Benefit. The Company shall pay the annual benefit to the Executive in 12 equal monthly installments
payable on the first day of each month commencing with the month following the Normal Retirement Age and continuing for 179 additional
months.

 

2.2.3        Benefit
Increases. Benefit payments may be increased as provided in Section 2.1.3.

 

2.3
     Disability Benefit. If the Executive terminates employment due to Disability prior
to Normal Retirement Age, the Company shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other
benefit under this Agreement, provided however, in the event the Company determines (1) the Executive could have been Terminated
for Cause as provided in 5.2 for conduct or omissions occurring during the term of employment or (2) the Executive has violated
the restrictive covenant set forth in Section 5.3, the Company shall have no obligation to make future payments as of the date
of the Company’s determination.

 

2.3.1        Amount
of Benefit. The benefit under this Section 2.3 is the Disability Annual Benefit amount set forth in Schedule A for the Plan
Year ending immediately prior to the date in which the Termination of Employment occurs. However, any increase in the annual benefit
under Section 2.1.1 would require the recalculation of the Disability benefit on Schedule A. The Disability Annual Benefit amount
is determined by calculating a fixed annuity which is payable in 180 equal monthly installments, crediting interest on the unpaid
balance of the Accrual Balance at an annual rate of 7.50%, compounded monthly.

 

2.3.2
      Payment of Benefit. The Company shall pay the annual benefit amount to the Executive
in 12 equal monthly installments payable on the first day of each month commencing with the month following the Termination of
Employment and continuing for 179 additional months.

 

2.3.3
       Benefit Increases. Benefit payments may be increased as provided in Section 2.1.3.

 

2.4      Change
of Control Benefit. Following the Date of a Change of Control, the Executive shall be entitled to the benefit described in
this Section 2.4 in lieu of any other benefit under this Agreement.

 

2.4.1       Amount
of Benefit. The annual benefit under this Section 2.4 is the Normal Retirement Benefit amount described in Section 2.1.1.

 

2.4.2
      Payment of Benefit. The Company shall pay the annual benefit amount to the Executive
in 12 equal monthly installments payable on the first day of each month commencing with the month following the Executive’s
Normal Retirement Date and continuing for 179 additional months.

 

2.4.3
       Benefit Increases. Benefit payments may be increased as provided in Section 2.1.3.

 

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Exhibit
10.30

 

2.4.4
      Rabbi Trust. Within 90 days of a Change of Control, a rabbi trust shall be established
and shall at all times be funded with assets at least equal to the present value of the unpaid balance of the Normal Retirement
Benefit. A discount rate no greater than the ten year Treasury note shall be used in calculating present value.

 

Article
3 

Death
Benefits

 

3.1       Death
During Active Service. If the Executive dies while in the active service of the Company, the Company shall pay to the Executive’s
beneficiary the benefit described in this Section 3.1. This benefit shall be paid in lieu of the Lifetime Benefits of Article
2.

 

3.1.1       Amount
of Benefit. The annual benefit under this Section 3.1 is the Normal Retirement Benefit amount described in Section 2.1.1.

 

3.1.2       Payment
of Benefit. The Company shall pay the annual benefit to the Executive’s beneficiary in 12 equal monthly installments
payable on the first day of each month commencing with the month following the Executive’s death and continuing for 179
additional months.

 

3.2       Death
During Benefit Period. If the Executive dies after the benefit payments have commenced under this Agreement but before receiving
all such payments, the Company shall pay the remaining benefits to the Executive’s beneficiary at the same time and in the
same amounts they would have been paid to the Executive had the Executive survived.

 

3.3       Death
After Termination of Employment But Before Benefit Payment Commence. If the Executive is entitled to benefit payments under
this Agreement, but dies prior to the commencement of said benefit payments, the Company shall pay the benefit payments to the
Executive’s beneficiary that the Executive was entitled to prior to death except that the benefit payments shall commence
on the first day of the month following the date of the Executive’s death.

 

Article
4 

Beneficiaries

 

4.1       Beneficiary
Designations. The Executive shall designate a beneficiary by filing a written designation with the Company. The Executive
may revoke or modify the designation at any time by filing a new designation. However, designations will only be effective if
signed by the Executive and accepted by the Company during the Executive’s lifetime. The Executive’s beneficiary designation
shall be deemed automatically revoked if the beneficiary predeceases the Executive, or if the Executive names a spouse as beneficiary
and the marriage is subsequently dissolved. If the Executive dies without a valid beneficiary designation, all payments shall
be made to the Executive’s estate.

 

     5

     

    

 

Exhibit
10.30 

4.2       Facility
of Payment. If a benefit is payable to a minor, to a person declared incapacitated, or to a person incapable of handling the
disposition of his or her property, the Company may pay such benefit to the guardian, legal representative or person having the
care or custody of such minor, incapacitated person or incapable person. The Company may require proof of incapacity, minority
or guardianship as it may deem appropriate prior to distribution of the benefit. Such distribution shall completely discharge
the Company from all liability with respect to such benefit.

 

Article
5 

General
Limitations

 

5.1
      Excess Parachute Payment. Notwithstanding any provision of this Agreement to the contrary,
the Company shall not pay any benefit under this Agreement to the extent the benefit would be a prohibited golden parachuted payment
pursuant to12 C.F.R. §359.2 and for which the appropriated federal banking agency has not given written consent to pay pursuant
to 12 C.F.R. §359.4.

 

5.2
     Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the
Company shall not pay any benefit under this Agreement if the Company terminates the Executive’s employment for:

 

(a)
 Gross negligence or gross neglect of duties;

 

(b)
 Commission of a felony or of a gross misdemeanor involving moral turpitude; or

 

(c)
 Fraud, disloyalty, dishonesty or willful violation of any significant law or significant Company policy committed in connection
with the Executive’s employment and resulting in a material adverse effect on the Company.

 

5.2.1       Removal.
Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement
if the Executive is subject to a final removal or prohibition order issued by an appropriate federal banking agency pursuant to
Section 8(e) of the Federal Deposit Insurance Act or by the Pennsylvania Department of Banking pursuant to state law.

 

5.3       Competition
after Termination of Employment. No benefits shall be payable if the Executive, without the prior written consent of the Company,
violates the following described restrictive covenants.

 

     6

     

    

 

Exhibit
10.30

 

5.3.1       Non-compete
Provision. The Executive shall not, for a period of three (3) years after termination either directly or indirectly, either
as an individual or as a proprietor, stockholder, partner, officer, director, employee, agent, consultant or independent contractor
of any individual, partnership, corporation or other entity (excluding an ownership interest of one percent (1%) or less in the
stock of a publicly traded company):

 

		(i)	become
                                         employed by, participate in, or be connected in any manner with the ownership, management,
                                         operation or control of any bank, savings and loan or other similar financial institution
                                         if the Executive’s responsibilities will include providing banking or other financial
                                         services in York County or within the fifty (50) miles of any office maintained by the
                                         Company as of the date of the termination of the Executive’s employment or if the
                                         Executive regularly conducts business in or from an office or branch in York County or
                                         any other county or city in which the Company has an office or branch as of the date
                                         of the termination of the Executive’s employment; or

 

		(ii)	participate
                                         in any way in hiring or otherwise engaging, or assisting any other person or entity in
                                         hiring or otherwise engaging, on a temporary, part-time or permanent basis, any individual
                                         who was employed by the Company during the three (3) year period immediately prior to
                                         the termination of the Executive’s employment; or

 

		(iii)	assist,
                                         advise, or serve in any capacity, representative or otherwise, any third party in any
                                         action against the Company or transaction involving the Company; or

 

		(iv)	sell,
                                         offer to sell, provide banking or other financial services, assist any other person in
                                         selling or providing banking or other financial services, or solicit or otherwise compete
                                         for, either directly or indirectly, any orders, contract, or accounts for services of
                                         a kind or nature like or substantially similar to the services performed or products
                                         sold by the Company (the preceding hereinafter referred to as “Services”),
                                         to or from any person or entity from whom the Executive or the Company provided banking
                                         or other financial services, sold, offered to sell or solicited orders, contracts or
                                         accounts for Services during the three (3) year period immediately prior to the termination
                                         of the Executive’s employment; or

 

		(v)	divulge,
                                         disclose, or communicate to others in any manner whatsoever, any confidential information
                                         of the Company, including, but not limited to, the names and addresses of customers of
                                         the Company, as they may have existed from time to time or of any of the Company’s
                                         prospective customers, work performed or services rendered for any customer, any method
                                         and/or procedures relating to projects or other work developed for the Company, earnings
                                         or other information concerning the Company. The restrictions contained in this subparagraph
                                         (v) apply to all information regarding the Company, regardless of the source who provided
                                         or compiled such information. Notwithstanding anything to the contrary, the terms of
                                         this subparagraph (v) shall not be limited to the three (3) year restriction set forth
                                         above and all information referred to herein shall not be disclosed unless and until
                                         it becomes known to the general public from sources other than the Executive.

 

     7

     

    

 

Exhibit
10.30

		(vi)	The
                                         restriction set forth in this Agreement shall not prohibit the Executive from engaging
                                         in the private practice of law after a Termination of Employment.

 

5.3.2      
Judicial Remedies. In the event of a breach or threatened breach by the Executive of any provision of these restrictions,
the Executive recognizes the substantial and immediate harm that a breach or threatened breach will impose upon the Company, and
further recognizes that in such event monetary damages may be inadequate to fully protect the Company. Accordingly, in the event
of a breach or threatened breach of this Agreement, the Executive consents to the Company’s entitlement to such ex parte,
preliminary, interlocutory, temporary or permanent injunctive, or any other equitable relief, protecting and fully enforcing the
Company’s rights hereunder and preventing the Executive from further breaching any of his obligations set forth herein.
The Executive expressly waives any requirement, based on any statute, rule of procedure, or other source, that the Company post
a bond as a condition of obtaining any of the above-described remedies. Nothing herein shall be construed as prohibiting the Company
from pursuing any other remedies available to the Company at law or in equity for such breach or threatened breach, including
the recovery of damages from the Executive. The Executive expressly acknowledges and agrees that: (i) the restrictions set forth
in Section 5.3.1 are reasonable, in terms of scope, duration, geographic area, and otherwise, (ii) the protections afforded the
Company in Section 5.3.1 are necessary to protect its legitimate business interest, (iii) the restrictions set forth in Section
5.3.1 will not be materially adverse to the Executive’s employment with the Company, and (iv) his agreement to observe such
restrictions forms a material part of the consideration for this Agreement.

 

5.3.3
     Overbreadth of Restrictive Covenant. It is the intention of the parties that if any
restrictive covenant in this Agreement is determined by a court of competent jurisdiction to be overly broad, then the court should
enforce such restrictive covenant to the maximum extent permitted under the law as to area, breadth and duration.

 

     8

     

    

 

Exhibit
10.30 

Article
6 

Claims
and Review Procedures

 

6.1       Claims
Procedure. An Executive or beneficiary (“claimant”) who has not received benefits under the Agreement that he
or she believes should be paid shall make a claim for such benefits as follows:

 

6.1.1       Initiation
– Written Claim. The claimant initiates a claim by submitting to the Company a written claim for the benefits.

 

6.1.2       Timing
of Company Response. The Company shall respond to such claimant within 90 days after receiving the claim. If the Company determines
that special circumstances require additional time for processing the claim, the Company can extend the response period by an
additional 90 days by notifying the claimant in writing, prior to the end of the initial 90-day period, that an additional period
is required. The notice of extension must set forth the special circumstances and the date by which the Company expect to render
their decision.

 

6.1.3       Notice
of Decision. If the Company denies part or all of the claim, the Company shall notify the claimant in writing of such denial.
The Company shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:

 

6.1.3.1       The
specific reasons for the denial,

 

6.1.3.2       A
reference to the specific provisions of the Agreement on which the denial is based,

 

6.1.3.3       A
description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why
it is needed,

 

6.1.3.4       An
explanation of the Agreement’s review procedures and the time limits applicable to such procedures, and

 

6.1.3.5       A
statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination
on review.

 

Article
7 

Amendments
and Termination

 

This
Agreement may be amended or terminated only by a written agreement signed by the Company and the Executive.

 

     9

     

    

 

Exhibit
10.30

Article
8 

Miscellaneous

 

8.1       Binding
Effect. This Agreement shall bind the Executive and the Company, and their beneficiaries, survivors, executors, successors,
administrators and transferees.

 

8.2       No
Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right
to remain an employee of the Company, nor does it interfere with the Company’s right to discharge the Executive. It also
does not require the Executive to remain an employee nor interfere with the Executive’s right to terminate employment at
any time.

 

8.3
      Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned,
pledged, attached or encumbered in any manner.

 

8.4
     Reorganization. The Company shall not merge or consolidate into or with another company,
or reorganize, or sell substantially all of its assets to another company, firm, or person unless such succeeding or continuing
company, firm, or person agrees to assume and discharge the obligations of the Company under this Agreement. Upon the occurrence
of such event, the term “Company” as used in this Agreement shall be deemed to refer to the successor or survivor
company.

 

8.5
      Tax Withholding. The Company shall withhold any taxes that are required to be withheld
from the benefits provided under this Agreement.

 

8.6     
 Applicable Law. The Agreement and all rights hereunder shall be governed by the laws of the Commonwealth of Pennsylvania,
except to the extent preempted by the laws of the United States of America.

 

8.7
     Unfunded Arrangement. The Executive and beneficiary are general unsecured creditors of the
Company for the payment of benefits under this Agreement. The benefits represent the mere promise by the Company to pay such benefits.
The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment, or garnishment by creditors. Any insurance on the Executive’s life is a general asset of the Company to which
the Executive and beneficiary have no preferred or secured claim.

 

8.8
      Recovery of Estate Taxes. If the Executive’s gross estate for federal estate
tax purposes includes any amount determined by reference to and on account of this Agreement, and if the beneficiary is other
than the Executive’s estate, then the Executive’s estate shall be entitled to recover from the beneficiary receiving
such benefit under the terms of the Agreement, an amount by which the total estate tax due by the Executive’s estate, exceeds
the total estate tax which would have been payable if the value of such benefit had not been included in the Executive’s
gross estate. If there is more than one person receiving such benefit, the right of recovery shall be against each such person.
In the event the beneficiary has a liability hereunder, the beneficiary may petition the Company for a lump sum payment in an
amount not to exceed the beneficiary’s liability hereunder.

 

     10

     

    

 

Exhibit
10.30

 

8.9
      Entire Agreement. This Agreement constitutes the entire agreement between the Company
and the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue of this Agreement other than
those specifically set forth herein.

 

8.10
    Administration. The Company shall have powers which are necessary to administer this Agreement,
including but not limited to:

 

		(a)	Interpreting
                                         the provisions of the Agreement;

 

		(b)	Establishing
                                         and revising the method of accounting for the Agreement;

 

		(c)	Maintaining
                                         a record of benefit payments; and

 

		(d)	Establishing
                                         rules and prescribing any forms necessary or desirable to administer the Agreement.

 

8.11
    Named Fiduciary. For purpose of the Employee Retirement Income Security Act of 1974, if applicable,
the Company shall be the named fiduciary and plan administrator under this Agreement. The named fiduciary may delegate to others
certain aspects of the management and operation responsibilities of the plan including the employment of advisors and the delegation
of ministerial duties to qualified individuals.

 

IN
WITNESS WHEREOF, the Executive and a duly authorized Company officer have signed this Agreement.

	 	 	 	 	 
	EXECUTIVE:	 	COMPANY:	 
	 	 	 	 
	 	 	PeoplesBank, A Codorus Valley Company	 
	 	 	 	 
	 	 	By		 
	Matthew Clemens	 	 	 

	 	 	Title	 	 

 

     11

     

    

 

Exhibit
10.30

By
execution hereof, Codorus Valley Bancorp, Inc. consents to and agrees to be bound by the terms and condition of this Agreement.

	 	 	 	 	 
	ATTEST:	 	CORPORATION:	 
	 	 	Codorus Valley Bancorp,
    Inc.	 
	 	 	 	 
	 	 	By	 	 

 

	 	 		Title	 	 

 

     12

     

    

 

Exhibit
10.30 

BENEFICIARY
DESIGNATION

 

PeoplesBank,
A Codorus Valley Company 

SALARY
CONTINUATION AGREEMENT

 

Matthew
Clemens

 

I
designate the following as beneficiary of any death benefits under this Salary Continuation Agreement:

 

	Primary:	 

 

	 	 

 

	Contingent:	 

 

	 	 

  

		Note:  	To
                                         name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement.

 

I
understand that I may change these beneficiary designations by filing a new written designation with the Company. I further understand
that the designations will be automatically revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary
and our marriage is subsequently dissolved.

 

	Signature	 	 

 

	Date	 	 
	 	 	 
	Accepted by the Company this ______ day of _________________, 2002.

 

	By	 	 

 

	Title	 	 

 

     13

     

    

 

Exhibit
10.30 

SCHEDULE
A 

PeoplesBank,
A Codorus Valley Company 

SALARY
CONTINUATION AGREEMENT

 

Matthew
Clemens

 

	 	 	 	 	 	Early	 	Change
    of
	 	 	 	 	 	Termination	Disability	Control
	 	 	 	 	Vested	Annual	Annual	Annual
	Plan	 	Accrual	Vesting	Accrual	Benefit	Benefit	Benefit
	Year	Age	Balance	Schedule	Balance	(1)	(2)	(1)
	1	39	$7,434	100.00%	$7,434	$4,337	$822	$50,000
	2	40	$15,444	100.00%	$15,444	$8,362	$1,707	$50,000
	3	41	$24,077	100.00%	$24,077	$12,098	$2,662	$50,000
	4	42	$33,380	100.00%	$33,380	$15,564	$3,690	$50,000
	5	43	$43,405	100.00%	$43,405	$18,780	$4,798	$50,000
	6	44	$54,208	100.00%	$54,208	$21,764	$5,993	$50,000
	7	45	$65,850	100.00%	$65,850	$24,534	$7,280	$50,000
	8	46	$78,396	100.00%	$78,396	$27,104	$8,667	$50,000
	9	47	$91,916	100.00%	$91,916	$29,489	$10,161	$50,000
	10	48	$106,485	100.00%	$106,485	$31,702	$11,772	$50,000
	11	49	$122,186	100.00%	$122,186	$33,756	$13,508	$50,000
	12	50	$139,105	100.00%	$139,105	$35,661	$15,378	$50,000
	13	51	$157,338	100.00%	$157,338	$37,430	$17,394	$50,000
	14	52	$176,986	100.00%	$176,986	$39,071	$19,566	$50,000
	15	53	$198,159	100.00%	$198,159	$40,594	$21,907	$50,000
	16	54	$220,977	100.00%	$220,977	$42,007	$24,429	$50,000
	17	55	$245,565	100.00%	$245,565	$43,318	$27,147	$50,000
	18	56	$272,063	100.00%	$272,063	$44,535	$30,077	$50,000
	19	57	$300,617	100.00%	$300,617	$45,664	$33,233	$50,000
	20	58	$331,389	100.00%	$331,389	$46,712	$36,635	$50,000
	21	59	$364,549	100.00%	$364,549	$47,684	$40,301	$50,000
	22	60	$400,284	100.00%	$400,284	$48,587	$44,252	$50,000
	23	61	$438,792	100.00%	$438,792	$49,424	$48,509	$50,000
	24	62	$452,282	100.00%	$452,282	$50,000	$50,000	$50,000

 

		1	Payments
                                         commence at Normal Retirement Age. Refer to Section 2.2 for Early Termination and Section
                                         2.4 for Change of Control.

		2	Payments
                                         commence at Termination of Employment. Refer to Section 2.3 for Disability.

 

     14

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