Document:

Exhibit
4.(vi)

 

DESCRIPTION
OF CODORUS VALLEY BANCORP, INC. COMMON STOCK

 

The
following is a description of our common stock, certain provisions of our amended articles of incorporation and amended bylaws
and certain provisions of applicable law. The following is qualified by applicable law and by the provisions of our amended articles
of incorporation and bylaws, copies of which have been filed with the SEC and are also available upon request from us.

 

Authorized
Shares

 

Our
articles of incorporation provide that we may issue up to 30,000,000 shares of common stock, par value $2.50 per share, and 1,000,000
shares of preferred stock, par value $2.50 per share. As of the date of this report, there were 9,762,682 shares of our common
stock outstanding and no shares of our preferred stock issued and outstanding.

 

Shareholder
Liability

 

All
outstanding shares of our common stock are fully paid and non-assessable. Under the Pennsylvania Business Corporation Law of 1988,
as amended, shareholders generally are not personally liable for a corporation’s acts or debts.

 

Dividends;
Liquidation; Dissolution

 

Subject
to the preferential rights of any other shares or series of capital stock, holders of shares of our common stock are entitled
to receive dividends on shares of common stock if, as and when authorized and declared by our board out of funds legally available
for dividends and to share ratably in the assets of the Company legally available for distribution to its shareholders in the
event of its liquidation, dissolution or winding-up after payment of, or adequate provision for, all known debts and liabilities
of the Company.

 

Voting
Rights

 

Each
outstanding share of our common stock entitles the holder to one vote on all matters submitted to a vote of shareholders, including
the election of directors. Unless a larger vote is required by law, our articles of incorporation or our bylaws, when a quorum
is present at a meeting of shareholders, the affirmative vote of a majority of the shares present shall decide any question. Except
as otherwise required by law or except as provided with respect to any other class or series of capital stock, the holders of
our common stock possess the exclusive voting power. There is no cumulative voting in the election of directors. Our board of
directors is classified into three classes with each class as nearly equal in number as possible. This means, in general, that
one-third of the members of our board are subject to re-election at each annual meeting of shareholders.

 

Preemptive
Rights; Redemption

 

Holders
of our common stock have no conversion, sinking fund or redemption rights or preemptive rights to subscribe for any of our classes
of stock.

 

    

     

    

 

Anti-Takeover
Provisions

 

Articles
of Incorporation and Bylaws

 

Our
articles of incorporation and bylaws contain certain provisions that may have the effect of deterring or discouraging an attempt
to take control of the Company. Among other things, these provisions:

 

		■	Empower
                                         our board of directors, without shareholder approval, to issue shares of our preferred
                                         stock the terms of which, including voting power, are set by our board;

 

		■	Divide
                                         our board of directors into three classes serving staggered three year terms;

 

		■	Authorize
                                         our board of directors to oppose a tender or other offer for the Company’s securities
                                         if the board determines that such an offer should be rejected;

 

		■	Require
                                         the affirmative vote of holders of at least 75% of the outstanding shares of our common
                                         stock to approve any merger, consolidation, liquidation or dissolution of the Company,
                                         or any sale or other disposition of all or substantially all of the assets of the Company,
                                         unless such transaction is approved in advance by at least 80% of the members of the
                                         board of directors, in which case such transaction shall require only such shareholder
                                         approval, if any, as may be required pursuant to the Pennsylvania Business Corporation
                                         Law as in effect from time to time, and require the affirmative vote of holders of at
                                         least 75% of the outstanding shares of our common stock to amend this requirement;

 

		■	Eliminate
                                         cumulative voting in the election of directors; and

 

		■	Require
                                         advance notice of nominations for the election of directors and the presentation of shareholder
                                         proposals at meetings of shareholders.

 

Pennsylvania
Business Corporation Law

 

The
Pennsylvania Business Corporation Law of 1988, as amended, also contains certain provisions applicable to the Company that may
have the effect of deterring or discouraging an attempt to take control of the Company. These provisions, among other things:

 

		■	Require
                                         that, following any acquisition by any one person or group of 20% of a public corporation’s
                                         voting power, the remaining shareholders have the right to receive payment for their
                                         shares, in cash, from such person or group in an amount equal to the “fair value”
                                         of the shares, including an increment representing a proportion of any value payable
                                         for control of the corporation (Subchapter 25E of the Business Corporation Law);

 

		■	Prohibit
                                         for five years, subject to certain exceptions, a “business combination” (which
                                         includes a merger or consolidation of the corporation or a sale, lease or exchange of
                                         assets) with a person or group beneficially owning 20% or more of a public corporation’s
                                         voting power (Subchapter 25F of the Business Corporation Law);

 

		■	Expand
                                         the factors and groups (including shareholders) which a corporation’s board of directors
                                         can consider in determining whether an action is in the best interests of the corporation;

 

    2

     

    

 

		■	Provide
                                         that a corporation’s board of directors need not consider the interests of any particular
                                         group as dominant or controlling;

 

		■	Provide
                                         that a corporation’s directors, in order to satisfy the presumption that they have acted
                                         in the best interests of the corporation, need not satisfy any greater obligation or
                                         higher burden of proof with respect to actions relating to an acquisition or potential
                                         acquisition of control;

 

		■	Provide
                                         that actions relating to acquisition of control that are approved by a majority of “disinterested
                                         directors” are presumed to satisfy the directors’ fiduciary duty, unless it is proven
                                         by clear and convincing evidence that the directors did not assent to such action in
                                         good faith after reasonable investigation; and

 

		■	Provide
                                         that the fiduciary duty of a corporation’s directors is solely to the corporation and
                                         may be enforced by the corporation or by a shareholder in a derivative action, but not
                                         by a shareholder directly.

 

The
Pennsylvania Business Corporation Law also explicitly provides that the fiduciary duty of directors does not require them to:

 

		■	Redeem
                                         any rights under, or to modify or render inapplicable, any shareholders rights plan;

 

		■	Render
                                         inapplicable, or make determinations under, provisions of the Pennsylvania Business Corporation
                                         Law relating to control transactions, business combinations, control-share acquisitions
                                         or disgorgement by certain controlling shareholders following attempts to acquire control;
                                         or

 

		■	Act
                                         as the board of directors, a committee of the board or an individual director, solely
                                         because of the effect the action might have on an acquisition or potential acquisition
                                         of control of the corporation or the consideration that might be offered or paid to shareholders
                                         in such an acquisition.

 

    3Exhibit
10.21

 

PeoplesBank,
A Codorus Valley Company

Executive
Incentive Plan

January
2020

	 	 
	 	
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	Approved by

    Board of Directors:
	 	 
	 	Approved by
	 	Compensation Committee:

 

	CERTAIN
    IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND LIKELY WOULD CAUSE COMPETITIVE
    HARM TO THE REGISTRANT

 

 

 

    

     

    

 

	PeoplesBank,
                                         A Codorus Valley Company

Executive
Incentive Plan 

 

		I.	Introduction

The
success of both PeoplesBank and Codorus Valley Bancorp, Inc. (“the Company”) is dependent upon the Company’s
ability to meet and exceed financial and strategic objectives, increase the value of the franchise and operate in the best long-term
interests of the shareholders. This success is dependent upon the contributions of each individual executive which collectively
impact the Company’s performance and results.

 

PeoplesBank
intends to provide executives with a structured incentive compensation opportunity in order to recognize the contribution that
each makes to the overall performance of the Company. The purpose of this incentive plan is to motivate, reward and reinforce
performance and achievement of corporate goals and individual performance/contributions in support of the Company’s strategic
objective for growth and profitability.

 

While
risk is an inherent aspect of business, this compensation plan is designed to reward executives for certain levels of performance
without encouraging undue risk-taking which could materially threaten the safety and soundness of the Company or business unit.

 

This
Executive Incentive Plan (“the Plan”) has been developed as a meaningful compensation tool to encourage and reward
participants for the part that they play in the overall success of the Company. The Plan is designed to:

 

		●	provide
                                         a form of results-oriented variable compensation which is directly linked to overall
                                         Company performance, and, 

 

		●	provide
                                         for recognition of individual contribution to the Company’s performance 

 

		II.	Plan
                                         Year

The
plan year for this program will be the calendar year, January 1 – December 31. The Plan will pay out annually based on achievement
of established goals and performance measures. The performance measures for the Plan will be determined, calculated and approved
annually.

 

		III.	Eligibility
                                         for Participation

All
PeoplesBank executives who meet the criteria below will be eligible to participate in the Executive Incentive Plan. A listing
of participant categories by grouping appears in Exhibit A.

 

    
	January 2020	 	Page 2

 

     

    

 

	PeoplesBank,
                                         A Codorus Valley Company

Executive
Incentive Plan 

 

Eligibility
for incentive payout will be determined by the participant’s most recent performance rating. To be eligible, individuals
must have a minimally satisfactory rating and not be on probation and/or written warning during the plan year or at the time of
award payment. Newly hired executives will be eligible for participation in the Plan providing they started employment prior to
October 1 of the plan year. Payout for current year hires will be pro-rated based on their actual pay during the plan year. If
the individual started employment after October 1, the executive will be eligible for the next plan year.

 

A
participant’s eligibility ceases at termination of employment (except in the case of retirement, death or disability) and
the participant will not receive any awards under the Plan beyond those already received. To be eligible for an award, an executive
must be employed as of the payout date.

 

		IV.	Incentive
                                         Opportunities

Each
participant will have a target incentive opportunity based on his/her role and competitive market practice. Incentive opportunities
will be defined as a percentage of base pay. Base pay is actual base salary earned as of December 31 of the plan year. See Exhibit
A for targets by participant categories.

 

		V.	Payout
                                         Range

Actual
awards will pay out at a reduced level (i.e.50% of target) for threshold performance, at 100% for target performance and at higher
level (i.e.150% of target) for stretch/maximum or above performance. Performance below threshold will be zero.

 

		VI.	Performance
                                         Goals

Each
participant will have defined performance goals. The goals and weights are determined at the beginning of each plan year and may
change from year to year. The goals are established by the Compensation Committee and Executive Management in conjunction with
the annual budget process. Company goals are selected to be aligned with business/strategic plan and reflect annual financial
measures such as net income, return on assets, return on equity, earnings per share, balance sheet growth or similar indicators.
Personal goals generally reflect each participant’s unique role and responsibilities and may include Action Plan objectives
as deemed appropriate. Threshold, target, and maximum goals will be defined as quantifiable goals.

 

    
	January 2020	 	Page 3

 

     

    

 

	PeoplesBank,
                                         A Codorus Valley Company

Executive
Incentive Plan 

 

The
performance goals for the plan year are found in Exhibit A. Individual participant performance measures will be documented in
the format that is specific, measurable, time bound, and directly tied to the budget and or action plan item for the calendar
year.

 

		VII.	Award
                                         Calculation and Distribution

Payout
amounts are calculated according to the level of overall performance achievement as compared to goals as explained in Exhibit
A. Payout for performance between the threshold and target and target and maximum is interpolated.

 

Incentive
payouts will be approved by the Compensation Committee. Final incentive payouts can be adjusted downward based on an assessment
of risk by the Compensation Committee.

 

Actual
individual payouts are then distributed to eligible participants based on payout percentage of base pay (defined as actual base
salary earned as of December 31 of the plan year) for the year.

 

Payment
will be made following the release of the prior year financials by the external auditors. This will occur no later than March
15 of the following year. The Company will deduct from all payments under this plan any federal, state or local taxes required
by law to be withheld from such payments. Any participant terminating employment (except retirement, death, or disability) prior
to actual payment of award will forfeit that award.

 

		VIII.	Administration

 

Effective
Date

This
Plan is effective January 1, 2020 for the performance period of January 1, 2020 to December 31, 2020. The Plan will be reviewed
annually by the Compensation Committee to ensure proper alignment with the Company’s objectives. The Company’s Compensation
Committee retains the right as described below to amend, modify or discontinue the Plan at any time during the specified period.
The Plan will remain in effect until earned incentive compensation is paid to participants.

 

    
	January 2020	 	Page 4

 

     

    

 

	PeoplesBank,
                                         A Codorus Valley Company

Executive
Incentive Plan 

 

Plan
Authorization and Oversight

This
Plan is authorized by the Board of Directors. The Compensation Committee has the sole authority to interpret the Plan and to make
or nullify any rules and procedures, as necessary, for proper administration. Any determination by the Committee and/or Board
of Directors will be final and binding. The Compensation Committee may, in its sole discretion, terminate, modify or amend any
aspect of the Plan. Amendments can include adjustments to award calculations for any significant extraordinary financial items
occurring in any given time period. However, no Plan amendment or termination will adversely affect an outstanding award.

 

The
Compensation Committee shall have full power and authority to construe, interpret, manage and control this plan. The plan administrator
shall be designated at the discretion of the Compensation Committee.

 

Any
decisions made or action taken by the Committee arising out of, or in connection with, the administration, interpretation and
effect of the Plan shall be at their absolute discretion and will be conclusive and binding on all parties. The Company reserves
the right to amend, suspend, reinstate or terminate all or any part of the Plan at any time.

 

The
Company will give prompt written notice to each participant of any amendment, suspension, termination or any material modification
of the Plan. The Compensation Committee also reserves the right to withhold or amend award payments based on performance or circumstances
deemed highly unusual.

 

Risk
Assessment

At
least annually, the Director of Human Resources or Chief Administrative Officer and Chief Risk Officer (who has responsibility
for risk assessment) will review this plan and provide a report including a detailed assessment regarding any risk issues inherent
in the Plan. This risk report and the plan document in full will be reviewed by the Compensation Committee of the Board of Directors
to ensure that the plan design is consistent with the compensation philosophy of the Company and that the Plan does not motivate
undue risk taking. The annual review will also include the market competitiveness of the Plan, the plan’s alignment with
the Company’s strategic plan, an assessment of how the Plan meets the objectives in the Introduction of this document, plus
the Plan’s impact on the overall safety and soundness of the Company. The Committee will then provide a report and recommendations
to the full Board of Directors who are responsible to approve the Plan.

 

    
	January 2020	 	Page 5

 

     

    

 

	PeoplesBank,
                                         A Codorus Valley Company

Executive
Incentive Plan 

 

Leave
of Absence

Employees
on a leave of absence (including FMLA, Long Term Disability, Short Term Disability, etc.) will be eligible; however, their distribution
will be pro-rated based upon the number of full months of work completed during the plan year under consideration.

 

Termination
of Employment

If
a participant is terminated by the Company or resigns, no incentive award will be distributed except death, disability or retirement.

 

If
a participant ceases to be employed by the Company due to death, disability or retirement, his/her incentive award distribution
for the Plan year will be pro-rated based on the number of full months of work completed during the plan year under consideration.

 

Miscellaneous

The
Plan does not constitute a contract of employment, and participation in the Plan does not give any employee the right to be retained
in the service of the Company or any right or claim to an award under the Plan unless specifically accrued under the terms of
this plan. Designation as a plan participant conveys the opportunity, but not the right, to any awards conferred under the Plan.

 

Any
right of a participant or his or her beneficiary to the payment of an award under this plan may not be assigned, transferred,
pledged or encumbered.

 

		IX.	Governing
                                         Law

Except
as preempted under federal law, the provisions of the Plan shall be construed, administered and enforced in accordance with the
domestic internal law of the Commonwealth of Pennsylvania.

 

    
	January 2020	 	Page 6

 

     

    

	

                                                            PeoplesBank,
                                         A Codorus Valley Company

Executive
Incentive Plan 

		X.	Plan
                                         Approval

This
plan has been approved by the Board of Directors of Codorus Valley Bancorp, Inc. on January 14, 2020.

	 	 	 
	By 	 
    	 
	 	Board of Directors	 
	 	Codorus Valley Bancorp, Inc.	 
	 	 
	 	Compensation
    Committee	 
	 	Codorus Valley Bancorp, Inc.	 

 

    
	January 2020	 	Page 7

 

     

    

 

	

                                                            PeoplesBank,
                                         A Codorus Valley Company

Executive
Incentive Plan 

 

Exhibit
A

Performance
Goals - Plan Year 2020

 

	 	 	 	 
	 	 	 	 	 	 
	Corporate	Pre-Tax,
    Pre-Prov. Income	*	$[redacted]**	$[redacted]**	$[redacted]**
	 	ROE	*	[redacted]**%	[redacted]**%	[redacted]**%
	 	Efficiency
    Ratio	*	[redacted]**%	[redacted]**%	[redacted]**%
	Individual	Individual
    Performance	*	TBD
	Total	 	100%	 	 	 

*Assigned
per below

 

	2020
    Performance Measure Weightings	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	2019	 	2020	 
	All
    Participants receive 	 	 	Performance
    Measure	 	Weight	 	Weight	 
	the
    same weighting	 	 	 	 	 	 	 	 	 
	 	 	Pre-Tax, Pre-Provision Income	 	40%	 	40%	 
	 	 	 	ROE	 	 	25%	 	25%	 
	 	 	 	Efficiency Ratio	 	20%	 	20%	 
	 	 	 	Individual	 	 	15%	 	15%	 
	 	 	 	 	 	 	100%	 	100%	 

 

Parameters
for 2020

		1.	Base
                                         pay is defined as actual base salary earned as of December 31 of plan year.

		2.	Generally,
                                         Company performance factor(s) must meet or exceed threshold to initiate an award in the
                                         Plan. Each performance factor is assessed independently from the other performance factors.

		3.	Awards
                                         for performance above threshold but between defined points (threshold, target, maximum)
                                         will be interpolated.

		4.	Performance
                                         above maximum level will be paid at maximum award level.

		5.	The
                                         Compensation Committee has the discretion to adjust incentive payments down by as much
                                         as 100% if it is determined that excessive risk has been taken. This can be done on an
                                         individual or overall basis, as appropriate.

		6.	Pre-Tax,
                                         Pre-Provision Income is defined as net income after all expenses including the dividend
                                         paid on the preferred shares and the expense of the awards under this plan and before
                                         taxes and provision for loan loss.

		7.	Return
                                         on Equity is the amount of Net Income available to common shareholders as a percentage
                                         of average common shareholders’ equity.

		8.	Efficiency
                                         Ratio is the amount of the Bank’s total noninterest expenses (“overhead”)
                                         as a percentage of total revenues. The determination of total revenues excludes the impact
                                         of ALLL provision and gain on sales of investment securities

 

    
	January 2020	 	Page 8

 

     

    

 

	

                                                            PeoplesBank,
                                         A Codorus Valley Company

Executive
Incentive Plan 

2020
Participant Target Awards

 

	Participant	Threshold	Target	Maximum
	 	 	 	 
	Executive Chairman	12.5%	25%	37.5%
	 	 	 	 
	President & CEO	12.5%	25%	37.5%
	 	 	 	 
	Executive Leadership Team	10.0%	20%	30.0%
	 	 	 	 
	Grandfathered Leadership	7.5%	15%	22.5%

 

    
	January 2020	 	Page 9

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