Document:

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                                  EXHIBIT 10.11
                      PEOPLESBANK, A CODORUS VALLEY COMPANY
                          SALARY CONTINUATION AGREEMENT

      THIS AGREEMENT is made this 1st day of October, 1998, by and between
PEOPLESBANK, A CODORUS VALLEY COMPANY, a Pennsylvania state bank located in
York, Pennsylvania (the "Company") and a wholly owned subsidiary of Codorus
Valley Bancorp, Inc., (the "Corporation") and JANN ALLEN WEAVER (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," shall mean: A change in control of a
nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A and any successor rule or regulation promulgated
under the Securities 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 Sections 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 Bank 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

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directors at the beginning of the period, or (c) the sale or transfer of all or
substantially all of the Bank or Corporation's assets.

            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 Company's voting
      securities; or

            (b)   the date of the transfer of all or substantially all of the
      Company or Company'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 Bank ceased to be a
      majority thereof. For these purposes, "Incumbent Board" means the members
      of the Board of Directors of the Company 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 three-quarters 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, if the Executive is covered by a Company
      sponsored disability policy, total disability as defined in such policy
      without regard to any waiting period. If the Executive is not covered by
      such a policy, Disability means the Executive suffering a sickness,
      accident or injury which, in the judgment of a physician satisfactory to
      the Company, prevents the Executive from performing substantially all of
      the Executive's normal duties for the Company. As a condition to any
      benefits, the Company may require the Executive to submit to such physical
      or mental evaluations and tests as the Company's Board of Directors deems
      appropriate.

            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.

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            1.1.7 "Normal Retirement Age" means the Executive's 65th 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 on the effective date of this Agreement.

            1.1.10 "Termination for Cause" See Section 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 $55,000 (Fifty-Five 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.

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      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 amount 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 8.0%, compounded
monthly.

            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 Section 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 8.0%, 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.

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      2.4   Change of Control Benefit. Following a Date of 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 Change of Control Annual Benefit amount set forth in Schedule A for
      the Plan Year ending immediately prior to the date on which the Change of
      Control occurs. However, any increase in the annual benefit under Section
      2.1.1 would require the recalculation of the Change of Control benefit on
      Schedule A. The Change of Control 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 8.0%, compounded monthly.

            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.

                                    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 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 Payments
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

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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.

      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 create an excise tax under the excess
parachute rules of Section 280G of the Code or would be a prohibited golden
parachute payment pursuant to 12 C.F.R. Section 359.2 and for which the
appropriate federal banking agency has not given written consent to pay pursuant
to 12 C.F.R. Section 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.

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            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.

            5.3.1 Non-compete Provision. The Executive shall not, for a period
                  of one (1) year 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 twenty-five
                        (25) miles of the Codorus Valley Corporate Center, 105
                        Leader Heights Road, York, PA 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 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 one (1) 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

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                        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 one (1) 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 one (1) 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.

            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

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                  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.

                                    ARTICLE 6
                          CLAIMS AND REVIEW PROCEDURES

      6.1   Claims Procedure. The Company shall notify any person or entity that
makes a claim against the Agreement (the "Claimant") in writing, within ninety
(90) days of Claimant's written application for benefits, of his or her
eligibility or noneligibility for benefits under the Agreement. If the Company
determines that the Claimant is not eligible for benefits or full benefits, the
notice shall set forth (1) the specific reasons for such denial, (2) a specific
reference to the provisions of the Agreement on which the denial is based, (3) a
description of any additional information or material necessary for the Claimant
to perfect his or her claim, and a description of why it is needed, and (4) an
explanation of the Agreement's claims review procedure and other appropriate
information as to the steps to be taken if the Claimant wishes to have the claim
reviewed. If the Company determines that there are special circumstances
requiring additional time to make a decision, the Company shall notify the
Claimant of the special circumstances and the date by which a decision is
expected to be made, and may extend the time for up to an additional ninety-day
period.

      6.2   Review Procedure. If the Claimant is determined by the Company not
to be eligible for benefits, or if the Claimant believes that he or she is
entitled to greater or different benefits, the Claimant shall have the
opportunity to have such claim reviewed by the Company by filing a petition for
review with the Company within sixty (60) days after receipt of the notice
issued by the Company. Said petition shall state the specific reasons which the
Claimant believes entitle him or her to benefits or to greater or different
benefits. Within sixty (60) days after receipt by the Company of the petition,
the Company shall afford the Claimant (and counsel, if any) an opportunity to
present his or her position to the Company orally or in writing, and the
Claimant (or counsel) shall have the right to review the pertinent documents.
The Company shall notify the Claimant of its decision in writing within the
sixty-day period, stating specifically the basis of its decision, written in a
manner calculated to be understood by the Claimant and the specific provisions
of the Agreement on which the decision is based. If, because of the need for a
hearing, the sixty-day period is not sufficient, the decision may be deferred
for up to another sixty-day period at the election of the Company, but notice of
this deferral shall be given to the Claimant.

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                                    ARTICLE 7
                           AMENDMENTS AND TERMINATION

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

                                    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

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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.

      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:

            8.10.1 Interpreting the provisions of the Agreement;

            8.10.2 Establishing and revising the method of accounting for the
      Agreement;

            8.10.3 Maintaining a record of benefit payments; and

            8.10.4 Establishing rules and prescribing any forms necessary or
      desirable to administer the Agreement.

      8.11  Named Fiduciary. For purposes of the Employee Retirement Income
Security Act of 1974, if applicable, the Company shall be the named fiduciary
and plan administrator under the 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 CO.

/s/ Jann Allen Weaver             By: /s/ Barry A. Keller
---------------------                 -------------------
                                      Barry A. Keller

                                  Title: Chairman of the Board of Directors

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                             BENEFICIARY DESIGNATION

                      PEOPLESBANK, A CODORUS VALLEY COMPANY
                          SALARY CONTINUATION AGREEMENT

                                 JANN A. WEAVER

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

Primary: Grace D. Weaver

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: /s/ Jann A. Weaver
           ------------------
Date:  10-1-98

Accepted by the Company this 1st day of October, 1998.

By: /s/ Barry A. Keller
    -------------------
    Barry A. Keller

Title:  Chairman of the Board of Directors

                                       56
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                      PEOPLESBANK, A CODORUS VALLEY COMPANY
                                 JANN A. WEAVER
                      SALARY CONTINUATION PLAN - SCHEDULE A

<TABLE>
<CAPTION>
                                            EARLY                              EARLY                                  DISABILITY
                                         TERMINATION          VESTED        TERMINATION       CHANGE OF CONTROL     ANNUAL BENEFIT
  PLAN         BENEFIT         ACCRUAL     VESTING            ACCRUAL      ANNUAL BENEFIT      ANNUAL BENEFIT           PAYABLE
  YEAR          LEVEL          BALANCE     SCHEDULE           BALANCE      PAYABLE AT 65        PAYABLE AT 65         IMMEDIATELY
  ----         -------         -------   -----------          -------      --------------     -----------------     --------------
  <S>          <C>             <C>       <C>                  <C>          <C>                <C>                   <C>
   1           55,000           13,828     100.00%             13,828          5,679                 5,679              1,586
   2           55,000           28,804     100.00%             28,804         10,924                10,924              3,303
   3           55,000           45,023     100.00%             45,023         15,766                15,766              5,163
   4           55,000           62,589     100.00%             62,589         20,237                20,237              7,178
   5           55,000           81,612     100.00%             81,612         24,365                24,365              9,359
   6           55,000          102,214     100.00%            102,214         28,177                28,177             11,722
   7           55,000          124,526     100.00%            124,526         31,697                31,697             14,280
   8           55,000          148,690     100.00%            148,690         34,947                34,947             17,051
   9           55,000          174,859     100.00%            174,859         37,949                37,949             20,053
   10          55,000          203,200     100.00%            203,200         40,720                40,720             23,303
   11          55,000          233,894     100.00%            233,894         43,278                43,278             26,823
   12          55,000          267,136     100.00%            267,136         45,641                45,641             30,635
   13          55,000          303,136     100.00%            303,136         47,822                47,822             34,763
   14          55,000          342,125     100.00%            342,125         49,837                49,837             39,234
   15          55,000          384,349     100.00%            384,349         51,697                51,697             44,076
   16          55,000          430,078     100.00%            430,078         53,414                53,414             49,321
   15          55,000          479,603     100.00%            479,603         55,000                55,000             55,000
</TABLE>

                                       57<PAGE>

                                  EXHIBIT 10.12

                      PEOPLESBANK, A CODORUS VALLEY COMPANY
                           GROUP TERM REPLACEMENT PLAN

      THIS PLAN, hereby made and entered into this_____ day of__________, 1998,
by and between the PEOPLESBANK, A CODORUS VALLEY BANK, a Pennsylvania state bank
located in York, Pennsylvania (the "Company") and the Participant selected to
participate in this Plan (the "Participant").

                                  INTRODUCTION

      The Company wishes to attract and retain highly qualified executives. To
further this objective, the Company is willing to divide the death proceeds of
certain life insurance policies which are owned by the Company on the lives of
the participating executives with the designated beneficiary of each insured
participating executive. The Company will pay the life insurance premiums from
its general assets.

                                    ARTICLE 1
                               GENERAL DEFINITIONS

The following terms shall have the meanings specified:

      1.1 "Benefit Vesting Age" means the earlier of (1) the Participant
attaining the Normal Retirement Age, as defined herein, or (2) the Participant's
age and Years of Service, when added together, totaling the sum of 70 or more.

      1.2 "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 Company's voting
      securities; or

            (b)   the date of the transfer of all or substantially all of the
      Company or Company'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 Bank ceased to be a
      majority thereof. For these purposes, "Incumbent Board" means the members
      of the Board of Directors of the Company 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 three-quarters 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.

      1.3 "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 (25%) or more of the Company's voting securities;
      or

            (b)   the date of the transfer of all or substantially all of the
      Company or Company's assets; or

                                       58
<PAGE>

            (c)   the date on which the 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 Bank ceased to be a
      majority thereof. For these purposes, "Incumbent Board" means the members
      of the Board of Directors of the Company 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 at though he were a member of the
      Incumbent Board.

      1.4   "Compensation Committee" means either the Compensation Committee
designated from time to time by the Company's Board of Directors or a majority
of the Company's Board of Directors, either of which shall hereinafter be
referred to as the Compensation Committee.

      1.5   "Corporation" means Codorus Valley Bancorp, Inc.

      1.6   "Company" means PeoplesBank, A Codorus Valley Company.

      1.7   "Disability" means the Participant's inability to perform
substantially all normal duties of an employee, as determined by the Company's
Board of Directors in its sole discretion. As a condition to any benefits, the
Company may require the Participant to submit to such physical or mental
evaluations and tests as the Board of Directors deems appropriate.

      1.8   "Insured" means the individual whose life is insured.

      1.9   "Insurer" means the insurance company issuing the life insurance
policy on the life of the insured.

      1.10  "Normal Retirement Age" means the Participant attaining the age
specified in Exhibit B attached hereto while employed with the Company.

      1.11  "Normal Retirement Date" means the later of the Normal Retirement
Age or the date that the Participant terminates or is terminated for any reason
other than being Terminated for Cause.

      1.12  "Participant" means the employee who is designated by the
Compensation Committee as eligible to participate in the Plan, elects in writing
to participate in the Plan using the form attached hereto as Exhibit A, and
signs a Split Dollar Endorsement for the Policy in which he or she is the
Insured.

      1.13  "Policy" or "Policies" means the individual insurance policy (or
policies) adopted by the Compensation Committee for purposes of insuring a
Participant's life under this Plan.

      1.14  "Plan" means this instrument, including all amendments thereto.

      1.15  "Terminated for Cause" means that the Company has terminated the
Participant's employment for any of the following reasons:

            (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 law
      or significant Company policy committed in connection with the
      Participant's employment and resulting in an adverse effect on the
      Company.

      1.16  "Three Times Base Annual Salary" means the current base annual
salary of the Participant

                                       59
<PAGE>

at the highest point of the Participant's career, multiplied by a factor of
three (3), but not to exceed the maximum amount of the Participant's insurance
benefit as set forth on Schedule B attached hereto (this reflects Plan amendment
dated November 27, 2001).

      1.17  "Years of Service" means total years of employment with the Company
including any approved leaves of absences.

                                    ARTICLE 2
                                  PARTICIPATION

      2.1   Eligibility to Participate. The Compensation Committee in its sole
discretion shall designate from time to time Participants that are eligible to
participate in this Plan.

      2.2   Participation. The eligible executive may participate in this Plan
by executing an Election to Participate and a Split Dollar Endorsement. The
Split Dollar Endorsement shall bind the Participant and his or her
beneficiaries, assigns and transferees, to the terms and conditions of this
Plan. An executive's participation is limited to only Policies where he or she
is the Insured. Exhibit B attached hereto sets forth the original Insured
participants and the Policies on their lives.

      2.3   Termination of Participation. A Participant's rights under this Plan
shall cease and his or her participation in this Plan shall terminate if any of
the following events occur: (i) the Participant's employment with the Company is
Terminated for Cause; (ii) the Participant's employment with the Company is
terminated prior to the Benefit Vesting Age for reasons other than Disability;
or (iii) the Participant 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. In the event that the Company decides to maintain the
Policy after the Participant's termination of his or her participation in the
Plan, the Company shall be the direct beneficiary of the entire death proceeds
of the Policy.

      2.4   Disability. (A) Except as otherwise provided in paragraph (B) of
this section 2.4 and paragraph 9.1 of Article 9 herein, if the Participant's
employment with the Company is terminated because of the Participant'
Disability, the Company shall maintain the Policy in full force and effect and,
in no event, shall the Company amend, terminate or otherwise abrogate the
Participant's interest in the Policy; provided, however, that at all times the
Policy shall be subject to the claims of the Company's creditors.

            (B)   Notwithstanding the provisions of paragraph (A) of this
section 2.4, upon the Disabled Participant's gainful employment with an entity
other than the Company, the Company shall have no further obligation to the
Disabled Participant, and the Disabled Participant's rights pursuant to the Plan
shall cease. In the event the Disabled Participant's rights are terminated
hereunder, the Company shall be the direct beneficiary of the entire death
proceeds of the Policy upon the death of the Disabled Participant.

      2.5   Vesting. Except as otherwise provided in paragraph 9.1 of Article 9
herein, upon the Participant reaching the Benefit Vesting Age, the Company shall
maintain the Policy in full force and effect and in no event shall the Company
amend, terminate or otherwise abrogate the Participant's interest in the Policy;
provided, however, that at all times the Policy shall be subject to the claims
of the Company's creditors.

                                    ARTICLE 3
                           POLICY OWNERSHIP/INTERESTS

      3.1   Company's Interest. The Company shall own the Policies and shall
have the right to exercise all incidents of ownership and, except as provided in
paragraph 9.1 of Article 9 herein, the Company shall not sell, surrender or
transfer ownership of a Policy so long as a Participant has an interest in the
Policy as described in section 3.1. This provision shall not impair the right of
the Company to terminate this Plan. With respect to each Policy, the Company
shall be the direct beneficiary of an amount of death proceeds equal to the
greatest of: (1) the cash surrender value of the policy; (2) the aggregate
premiums paid on the Policy by the Company less any outstanding

                                       60
<PAGE>

indebtedness to the Insurer; or (3) the amount in excess of Three Times Base
Annual Salary of the Insured/Participant; provided, however, that if the Company
owns more than one Policy on a Participant's life, all such Policies shall be
aggregated with respect to the amount as calculated in this item (3).

      3.2 Participant's Interest. Each Participant, or the Participant's
assignee, shall have the right to designate the beneficiary of the death
proceeds of the Policy remaining after the payment to the Company of its
interests. The Participant shall also have the right to elect and change
settlement options with the consent of the Company and the Insurer.

                                    ARTICLE 4
                                    PREMIUMS

      4.1 Premium Payment. The Company shall pay all premiums due on all
Policies.

      4.2 Imputed Income. The Company shall impute income to the Participant in
an amount equal to the current term rate for the Participant's age multiplied by
the aggregate death benefit payable to the Participant's beneficiary. The
"current term rate" is the minimum amount required to be imputed under Revenue
Rulings 64-328 and 66-110, or any subsequent applicable authority.

      4.3 Cash Payment. The Company shall make the following cash payment to the
Participant:

      (1)   If Termination of Employment occurs on or after the Normal
            Retirement Age, the Company shall annually pay to the Participant an
            amount calculated by dividing a numerator equal to the current term
            rate imputed to the Participant multiplied by the Company's highest
            marginal tax bracket for the calendar year immediately preceding the
            payment to the Participant by a denominator of an amount equal to
            the sum of one (1) minus the Company's tax bracket. Such payments
            shall be made to the Participant until the earlier of (i) the death
            of the Participant or (ii) the date the Policy is no longer owned by
            the Company or (iii) until the amount accrued by the Company for the
            payment of this benefit has been reduced to zero (0) when applying
            the interest method of APB 12 and using a discount rate of 8%.

      (2)   If Termination of Employment occurs before the Normal Retirement Age
            but after the Participant has attained the Benefit Vesting Age, the
            Company shall annually pay to the Participant an amount calculated
            by dividing a numerator equal to the current term rate imputed to
            the Participant multiplied by the Company's highest marginal tax
            bracket for the calendar year immediately preceding the payment to
            the Participant by a denominator of an amount equal to the sum of
            one (1) minus the Company's tax bracket. Such payments shall be made
            to the Participant until the earlier of (i) the death of the
            Participant or (ii) the date the Policy is no longer owned by the
            Company or (iii) until the amount accrued by the Company for the
            payment of this benefit has been reduced to zero (0) when applying
            the interest method of APB 12 and using a discount rate of 8%.

      (3)   If Termination of Employment occurs before the Normal Retirement Age
            and before the Participant has attained the Benefit Vesting Age, the
            Company shall make no cash payment to the Participant as provided
            hereunder.

                                    ARTICLE 5
                                   ASSIGNMENT

                                       61
<PAGE>

      5.1 Any Participant may assign without consideration all interests in his
or her Policy and in this Plan to any person, entity or trust. In the event a
Participant shall transfer all of his/her interest in the Policy, then all of
that Participant's interest in his or her Policy and in the Plan shall be vested
in his/her transferee, who shall be substituted as a party hereunder, and that
Participant shall have no further interest in his or her Policy or in this Plan.

                                    ARTICLE 6
                                     INSURER

      6.1 The Insurer shall be bound only by the terms of their corresponding
Policy. Any payments the Insurer makes or actions it takes in accordance with a
Policy shall fully discharge it from all claims, suits and demands of all
persons relating to that Policy. The Insurer shall not be bound by the
provisions of this Plan. The Insurer shall have the right to rely on the
Company's representations with regard to any definitions, interpretations, or
Policy interests as specified under this Plan.

                                    ARTICLE 7
                                CLAIMS PROCEDURE

      7.1 Claims Procedure. The Company shall notify any person or entity that
makes a claim against this Plan (the "Claimant"), in writing, within ninety (90)
days of Claimant's written application for benefits, of Claimant's eligibility
or ineligibility for benefits under this Plan. If the Company determines that
Claimant is not eligible for benefits or full benefits, the notice shall set
forth (1) the specific reasons for such denial, (2) a specific reference to the
provisions of this Plan on which the denial is based, (3) a description of any
additional information or material necessary for the Claimant to perfect
Claimant's claim, and a description of why it is needed, and (4) an explanation
of this Plan's claims review procedure and other appropriate information as to
the steps to be taken if the Claimant wishes to have the claim reviewed. If the
Company determines that there are special circumstances requiring additional
time to make a decision, the Company shall notify the Claimant of the special
circumstances and the date by which a decision is expected to be made, and may
extend the time for up to an additional ninety-day period.

      7.2 Review Procedure. If a Claimant is determined by the Company not to be
eligible for benefits, or if the Claimant believes that Claimant is entitled to
greater or different benefits, the Claimant shall have the opportunity to have
such claim reviewed by the Company by filing a petition for review with the
Company within sixty (60) days after receipt of the notice issued by the
Company. Said petition shall state the specific reasons which the Claimant
believes entitle Claimant to benefits or to greater or different benefits.
Within sixty (60) days after receipt by the Company of the petition, the Company
shall afford the Claimant (and counsel, if any) an opportunity to present
Claimant's position to the Company verbally or in writing, and the Claimant (or
counsel) shall have the right to review the pertinent documents. The Company
shall notify the Claimant of its decision in writing within the sixty-day
period, stating specifically the basis of its decision, written in a manner
calculated to be understood by the Claimant and the specific provisions of this
Plan on which the decision is based. If, because of the need for a hearing, the
sixty-day period is not sufficient, the decision may be deferred for up to
another sixty-day period at the election of the Company, but notice of this
deferral shall be given to the Claimant.

                                    ARTICLE 8
                           AMENDMENTS AND TERMINATION

      8.1 Amendment or Termination of Plan. Except as otherwise provided in
sections 2.3, 2.4, 2.5 and 8.2: (i) the Company may amend or terminate the Plan
at any time, and (ii) the Company may amend or terminate a Participant's rights
under the Plan at any time prior to a Participant's death by written notice to
the Participant.

      8.2 Amendment or Termination of Plan Upon Change of Control.
Notwithstanding the provisions of section 8.1, in the event of a Change of
Control, the Company or its successor shall maintain in full force and effect
each Policy that is in existence on the date the Change of Control occurs and,
shall not terminate or otherwise abrogate a Participant's interest in the
Policy, provided,

                                       62
<PAGE>

however, that at all times the Policy shall be subject to the claims of the
Company's creditors. This section 8.2 shall apply to all Participants in the
Plan on the date the Change of Control occurs, including but not limited to (i)
a Participant who has a vested interest in the Policy pursuant to section 2.5;
(ii) a Disabled Participant who has an interest in the Policy pursuant to
section 2.4; and (iii) a Participant whose employment is terminated as a result
of a Change of Control.

      8.3 Participant's Waiver. A Participant may, in the Participant's sole and
absolute discretion, waive his or her rights under the Plan at any time. Any
waiver permitted under this section 8.3 shall be in writing and delivered to the
Board of Directors of the Company.

                                    ARTICLE 9
                                  MISCELLANEOUS

      9.1 Option to Purchase. Notwithstanding anything herein to the contrary,
if the Company decides to sell, surrender or transfer ownership of the Policy
while this Plan is in effect, the Company shall first give notice of such
intention to the Participant or the Participant's transferee and shall allow the
Participant or the Participant's transferee the option to purchase the Policy
for a period of sixty (60) days from written notice of such intention. The
purchase price shall be an amount equal to the greater of the cash surrender
value of the Policy or the aggregate premiums paid on the Policies by the
Company less any outstanding indebtedness to the Insurer, unless the Participant
would otherwise forfeit the benefit pursuant to Section 2.3 if the benefit were
vested. This provision shall not impair the right of the Company to terminate
this Agreement. If the Participant or the Participant's transferee does not
exercise the option to purchase, the Company may sell, surrender or transfer
ownership of the Policy, provided, however, that if the Participant has attained
the Benefit Vesting Age, the Company must provide an insurance policy comparable
to cover the benefit provided under this Agreement. The Participant or the
Participant's transferee shall not have an option to purchase, and the
Participant or the Participant's transferee shall forfeit rights under the Plan
in the event the Participant 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.

      9.2 Binding Effect. This Plan in conjunction with each Split Dollar
Endorsement shall bind each Participant and the Company, their beneficiaries,
survivors, executors, administrators and transferees and any Policy beneficiary.

      9.3 No Guarantee of Employment. This Plan is not an employment policy or
contract. It does not give a Participant the right to remain an employee of the
Company, nor does it interfere with the Company's right to discharge a
Participant. It also does not require a Participant to remain an employee nor
interfere with a Participant's right to terminate employment at any time.

      9.4 Named Fiduciary. For purposes of the Employee Retirement Income
Security Act of 1974, if applicable, the Company shall be the named fiduciary
and plan administrator under the Plan. 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.

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

      9.6 Notice. Any notice, consent or demand required or permitted to be
given under the provisions of this Plan by one party to another shall be in
writing, shall be signed by the party giving or making the same, and may be
given either by delivering the same to such other party personally, or by
mailing the same, by United States certified mail, postage prepaid, to such
party, addressed to his/her last known address as shown on the records of the
Company. The date of such mailing shall be deemed the date of such mailed
notice, consent or demand.

      9.7 Entire Agreement. This Plan constitutes the entire agreement between
the Company and the Participant as to the subject matter hereof. No rights are
granted to the Participant by virtue of

                                       63
<PAGE>

this Plan other than those specifically set forth herein.

      9.8 Administration The Company shall have powers which are necessary to
administer this Plan, including but not limited to:

            (a)   Interpreting the provisions of the Plan;

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

            (c)   Maintaining a record of benefit payments; and

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

     IN WITNESS WHEREOF, the Company executes this Plan as of the date indicated
above.

                                        COMPANY:

                                        PEOPLESBANK, A CODORUS VALLEY CO.

                                        BY  ______________________________

                                        TITLE  ___________________________

                                        CORPORATION:

                                        CODORUS VALLEY BANCORP, INC.

                                        BY  ______________________________

                                        TITLE  ___________________________

                                       64
<PAGE>

                                    EXHIBIT A

                             ELECTION TO PARTICIPATE

      I, (Participant), an eligible employee as determined in section 2.1 of the
Peoplesbank, a Codorus Valley Company, Group Term Replacement Plan (the "Plan")
dated December 1, 1998, hereby elect to become a Participant of the Plan in
accordance with Section 2.2 of the Plan. Additionally, I acknowledge that I have
read the Plan document and agree to be bound by its terms.

     Executed this 1st day of December, 1998.

_______________________                 _______________________
Witness                                 Participant

                                       65
<PAGE>

                                   EXHIBIT B
                              LIST OF PARTICIPANTS

<TABLE>
<CAPTION>
                                                                  NORMAL           INSURANCE
     PARTICIPANT         INSURER        POLICY NUMBER         RETIREMENT AGE        BENEFIT
--------------------------------------------------------------------------------------------
<S>                      <C>            <C>                   <C>                  <C>
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</TABLE>

                                       66
<PAGE>

                         SPLIT DOLLAR POLICY ENDORSEMENT

                      PEOPLESBANK, A CODORUS VALLEY COMPANY
                           GROUP TERM REPLACEMENT PLAN

Policy No. ___________________             Insured: (Participant)

Supplementing and amending the application of PEOPLESBANK, A CODORUS VALLEY
COMPANY on ________________, 1998 to _________________________ ("Insurer"), the
applicant requests and directs that:

                                  BENEFICIARIES

      1.    The PEOPLESBANK, A CODORUS VALLEY COMPANY, a Pennsylvania state bank
located in York, Pennsylvania (the "Company"), shall be the direct beneficiary
of an amount of death proceeds equal to the greatest of: (1) the cash surrender
value of the Policy; (2) the aggregate premiums paid on the Policy by the
Company less any outstanding indebtedness to the Insurer; or (3) the amount in
excess of Three Times Base Annual Salary of the Participant as provided in the
Peoplesbank, A Codorus Valley Company Group Term Replacement Plan dated December
1, 1998; provided, however, that if the Company owns more than one Policy on a
Participant's life, all such Policies shall be aggregated with respect to the
amount calculated in this item (3).

      2.    The beneficiary of any remaining death proceeds shall be designated
by the Insured or his/her transferee.

                                    OWNERSHIP

      3.    The Owner of the policy shall be the Company. The Owner shall have
all ownership rights in the Policy except as may be specifically granted to the
Insured or his/her transferee in paragraph (4) of this endorsement.

      4.    The Insured or his/her transferee shall have the right to assign all
rights and interests in the policy with respect to that portion of the death
proceeds designated in paragraph (2) of this endorsement, and to exercise all
settlement options with respect to such death proceeds.

               MODIFICATION OF ASSIGNMENT PROVISIONS OF THE POLICY

Upon the death of the Insured, the interest of any collateral assignee of the
Owner of the policy designated in paragraph (3) above shall be limited to the
portion of the proceeds described in paragraph (1) above.

                                OWNERS AUTHORITY

The Insurer is hereby authorized to recognize the Owner's claim to rights
hereunder without investigating the reason for any action taken by the Owner,
including its statement of the amount of premiums it has paid on the policy. The
signature of the Owner shall be sufficient for the exercise of any rights under
this Endorsement and the receipt of the Owner for any sums received by it shall
be a full discharge and release to the Insurer. Any transferee's rights shall be
subject to this Endorsement.

Signed at _______________, Pennsylvania, this _____ day of ______________, 1998.

COMPANY:

PEOPLESBANK, A CODORUS VALLEY COMPANY

By__________________________________

Its_________________________________

                                       67
<PAGE>

CORPORATION:

CODORUS VALLEY BANCORP, INC.

By ______________________________________

Title ___________________________________

Acceptance and Beneficiary Designation

The Insured accepts and agrees to the foregoing and, subject to the rights of
the Owner as stated above, designates __________________________________________
as primary beneficiary and _____________________________________________________
as secondary/contingent beneficiary of the portion of the proceeds described in
paragraph (1) above.

Signed at _______________, Pennsylvania, this ______ day of _____________, 1998.

INSURED

_______________________________________
Signature

_______________________________________
(Print Name)

                                       68

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