Document:

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                                  EXHIBIT 10.9

                      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 LARRY J. MILLER (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 Company 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 Corporation's assets; or

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

            (d) the date on which individuals who formerly constituted a
      majority of the Incumbent Board of Directors of the 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 60th 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 $100,000 (One Hundred 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 239 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 240 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 239 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 240 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 239 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 the Date of a Change of Control,
the Executive shall be entitled to the benefit described in this Section 2.4 in
lieu of any other benefit under this Agreement.

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

            2.4.2 Payment of Benefit. The Company shall pay the annual benefit
      amount to the Executive in 12 equal monthly installments payable on the
      first day of each month commencing with the month following the
      Executive's Normal Retirement Date and continuing for 239 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 239 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 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.

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                                    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 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 three (3) years after termination either directly or
                  indirectly, either as an individual or as a proprietor,
                  stockholder, partner, officer, director, employee, agent,
                  consultant or independent contractor of any individual,
                  partnership, corporation or other entity (excluding an
                  ownership interest of one percent (1%) or less in the stock of
                  a publicly traded company):

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

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

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

                  (iv)  sell, offer to sell, provide banking or other financial
                        services, assist any other person in selling or
                        providing banking or other financial services, or
                        solicit or otherwise compete for, either directly or
                        indirectly, any orders, contract, or accounts for
                        services of a kind or nature like or substantially
                        similar to the

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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 three (3) year period
                        immediately prior to the termination of the Executive's
                        employment; or

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

            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/ Larry J. Miller                    By: /s/ Barry A. Keller
-------------------                        -------------------
Larry J. Miller                            Barry A. Keller

                                       Title: Chairman of the Board of Directors

                                       29
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                             BENEFICIARY DESIGNATION

                      PEOPLESBANK, A CODORUS VALLEY COMPANY
                          SALARY CONTINUATION AGREEMENT

                                 LARRY J. MILLER

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

Primary: Sally Marie Miller (spouse)

Contingent: Michelle Marie Miller and Timothy James Miller (children)

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/ Larry J. Miller
           -------------------

Date: October 1, 1998

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

                                       30
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                      PEOPLESBANK, A CODORUS VALLEY COMPANY
                                 LARRY J. MILLER
                      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 60     PAYABLE AT 60     IMMEDIATELY
----  -------  -------  -----------  -------  --------------  -----------------  --------------
<S>   <C>      <C>      <C>          <C>      <C>             <C>                <C>
 1    100,000   45,448    100.00%     45,448      11,876           100,000           4,562
 2    100,000   94,668    100.00%     94,668      22,842           100,000           9,502
 3    100,000  147,974    100.00%    147,974      32,967           100,000          14,853
 4    100,000  205,703    100.00%    205,703      42,317           100,000          20,647
 5    100,000  268,225    100.00%    268,225      50,950           100,000          26,922
 6    100,000  335,935    100.00%    335,935      58,921           100,000          33,719
 7    100,000  409,265    100.00%    409,265      66,281           100,000          41,079
 8    100,000  488,682    100.00%    488,682      73,078           100,000          49,050
 9    100,000  574,691    100.00%    574,691      79,353           100,000          57,683
 10   100,000  667,838    100.00%    667,838      85,147           100,000          67,033
 11   100,000  768,716    100.00%    768,716      90,498           100,000          77,158
 12   100,000  877,967    100.00%    877,967      95,438           100,000          88,124
 13   100,000  996,286    100.00%    996,286     100,000           100,000         100,000
</TABLE>

                                       31<PAGE>

                                  EXHIBIT 10.10
                      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 HARRY R. SWIFT (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

                                       32
<PAGE>

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.

                                       33
<PAGE>

            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 $75,000 (Seventy-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.

                                       34
<PAGE>

            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.

                                       35
<PAGE>

      2.4 Change of Control Benefit. Following the 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 Normal Retirement Benefit amount described in Section 2.1.1.

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

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

                                    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 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.

                                       36
<PAGE>

                                    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 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.

                                       37
<PAGE>

            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 three (3) years after termination either directly or
                  indirectly, either as an individual or as a proprietor,
                  stockholder, partner, officer, director, employee, agent,
                  consultant or independent contractor of any individual,
                  partnership, corporation or other entity (excluding an
                  ownership interest of one percent (1%) or less in the stock of
                  a publicly traded company):

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

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

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

                  (iv)  sell, offer to sell, provide banking or other financial
                        services, assist any other person in selling or
                        providing banking or other financial services, or
                        solicit or otherwise compete for, either directly or
                        indirectly, any orders, contract, or accounts for
                        services of a kind or nature like or substantially
                        similar to the services performed or products sold by
                        the Company (the preceding

                                       38
<PAGE>

                        hereinafter referred to as "Services"), to or from any
                        person or entity from whom the Executive or the Company
                        provided banking or other financial services, sold,
                        offered to sell or solicited orders, contracts or
                        accounts for Services during the three (3) year period
                        immediately prior to the termination of the Executive's
                        employment; or

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

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

            5.3.2 Judicial Remedies. In the event of a breach or threatened
                  breach by the Executive of any provision of these
                  restrictions, the Executive recognizes the substantial and
                  immediate harm that a breach or threatened breach will impose
                  upon the Company, and further recognizes that in such event
                  monetary damages may be inadequate to fully protect the
                  Company. Accordingly, in the event of a breach or threatened
                  breach of this Agreement, the Executive consents to the
                  Company's entitlement to such ex parte, preliminary,
                  interlocutory, temporary or permanent injunctive, or any other
                  equitable relief, protecting and fully enforcing the Company's
                  rights hereunder and preventing the Executive from further
                  breaching any of his obligations set forth herein. The
                  Executive expressly waives any requirement, based on any
                  statute, rule of procedure, or other source, that the Company
                  post a bond as a condition of obtaining any of the
                  above-described remedies. Nothing herein shall be construed as
                  prohibiting the Company from pursuing any other remedies
                  available to the Company at law or in equity for such breach
                  or threatened breach, including the recovery of damages from
                  the Executive. The Executive expressly acknowledges and agrees
                  that: (i) the restrictions set forth in Section 5.3.1 are
                  reasonable, in terms of scope, duration, geographic area, and
                  otherwise, (ii) the protections afforded the Company in
                  Section 5.3.1 are necessary to protect its legitimate business
                  interest,

                                       39
<PAGE>

                  (iii) the restrictions set forth in Section 5.3.1 will not be
                  materially adverse to the Executive's employment with the
                  Company, and (iv) his agreement to observe such restrictions
                  forms a material part of the consideration for this Agreement.

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

                                    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.

                                       40
<PAGE>

                                    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

                                       41
<PAGE>

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/ Harry R. Swift                   By: /s/ Barry A. Keller
------------------                       -------------------
Harry R. Swift                           Barry A. Keller

                                     Title: Chairman of the Board of Directors

                                       42
<PAGE>

                             BENEFICIARY DESIGNATION

                      PEOPLESBANK, A CODORUS VALLEY COMPANY
                          SALARY CONTINUATION AGREEMENT

                                 HARRY R. SWIFT

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

Primary: Carol L. Swift

Contingent: Brian Swift, Matthew Swift and
            Katey Swift, or survivors, in equal shares

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/ Harry R. Swift
           -----------------

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

                                       43
<PAGE>

                      PEOPLESBANK, A CODORUS VALLEY COMPANY
                                 HARRY R. SWIFT
                      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          75,000         23,530      100.00%         23,530         8,239              75,000              2,698
 2          75,000         49,013      100.00%         49,013        15,847              75,000              5,621
 3          75,000         76,611      100.00%         76,611        22,872              75,000              8,786
 4          75,000        106,500      100.00%        106,500        29,359              75,000             12,213
 5          75,000        138,869      100.00%        138,869        35,348              75,000             15,925
 6          75,000        173,926      100.00%        173,926        40,879              75,000             19,945
 7          75,000        211,891      100.00%        211,891        45,985              75,000             24,299
 8          75,000        253,008      100.00%        253,008        50,701              75,000             29,015
 9          75,000        297,538      100.00%        297,538        55,055              75,000             34,121
10          75,000        345,763      100.00%        345,763        59,075              75,000             39,652
11          75,000        397,992      100.00%        397,992        62,787              75,000             45,641
12          75,000        454,555      100.00%        454,555        66,214              75,000             52,128
13          75,000        515,813      100.00%        515,813        69,379              75,000             59,153
14          75,000        582,155      100.00%        582,155        72,302              75,000             66,761
15          75,000        654,004      100.00%        654,004        75,000              75,000             75,000
</TABLE>

                                       44

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