Document:

Exhibit
10.1.2

SECOND
AMENDMENT TO CREDIT AGREEMENT AND WAIVER OF EVENT OF DEFAULT

                    This
Second Amendment to Credit Agreement and Waiver of Event of Default (this “Amendment”),
dated as of November 14, 2013, is entered into by and between COMMUNICATIONS
SYSTEMS, INC., a Minnesota corporation (“Communications Systems”), JDL
TECHNOLOGIES, INCORPORATED, a Minnesota corporation (“JDL”), TRANSITION NETWORKS,
INC., a Minnesota corporation (“Transition Networks”, together with
Communications Systems and JDL, “Borrowers” and each a “Borrower”), and WELLS FARGO
BANK, NATIONAL ASSOCIATION, a national banking association (“Lender”).

RECITALS

                    Borrowers
and Lender are parties to a Credit Agreement dated as of October 28, 2011, as
amended by a First Amendment to Credit Agreement and Waiver of Event of Default
dated as of November 28, 2012 (as so amended, and as the same may be further
amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”). Capitalized terms used in these recitals have the
meanings given to them in the Credit Agreement unless otherwise specified.

                    Borrowers
have requested that Lender agree to certain amendments to the Credit Agreement
and waive an event of default under the Credit Agreement, and Lender has agreed
to make such amendments and grant such waiver on the terms and conditions set
forth herein.

                    NOW, THEREFORE, in
consideration of the premises and of the mutual covenants and agreements herein
contained, it is agreed as follows:

                    1.          Definitions.
Capitalized terms used in this Amendment (including in the Recitals) have the
meanings given to them in the Credit Agreement unless otherwise expressly
defined in this Amendment.

                    2.          Amendment to
Section 4.9. The following sentence is added immediately following
subsection (d) of Section 4.9 of the Credit Agreement:

	
  

 	
  

 
	
  

 	
 Notwithstanding the
 foregoing or anything to the contrary contained in the definitions below, for
 purposes of determining Borrowers’ compliance with subsections (b) and
 (d) of this Section 4.9, up to $5,850,000 of goodwill impairment charges
 recognized by Borrowers on or about September 30, 2013 in connection with
 Borrowers’ Transition Networks business unit shall be excluded.

 

                    3.          No
Other Changes. Except as explicitly amended by this Amendment, all
of the terms and conditions of the Credit Agreement and the Loan Documents
shall remain in full force and effect.

                    4.          Waiver
of Existing Event of Default. As a result of the failure of
Borrowers to maintain a minimum Net Profit of $3,000,000 as of the quarter
ending September 30, 2013, as required by Section 4.9(b) of the Credit
Agreement, an Event of Default has occurred under Section 6.1(c) of the Credit
Agreement (the “Known Event of Default”). Upon the terms and subject to the
conditions set forth in this Amendment, Lender hereby waives the Known Event of
Default. This waiver shall be effective only in this specific instance and for
the specific purpose for which it is given, and this waiver shall not entitle
Borrowers to any other or further waiver in any similar or other circumstances.

                    5.          Conditions
Precedent. This Amendment shall be effective when Lender shall have
received an executed original of this Amendment, together with each of the
following, each in form and substance acceptable to Lender:

	
  

 	
  

 
	
  

 	
           (a)         a
 certificate of the secretary of each Borrower: (a) attaching resolutions
 of the Board of Directors of such Borrower authorizing the execution,
 delivery and performance by such Borrower of the Loan Documents, including
 this Amendment, (b) certifying that the articles of incorporation of such
 Borrower delivered by such Borrower to Lender on October 28, 2011 have not
 been amended or changed in any respect (or if there has been any amendment or
 change, certifying that attached to such certificate is a current copy of
 such articles of incorporation (certified by the Secretary of State of
 formation)), (c) certifying that the bylaws of such Borrower delivered
 by such Borrower to Lender on October 28, 2011 have not been amended or
 changed in any respect (or if there has been any amendment or change,
 certifying that attached to such certificate is a current copy of such bylaws
 of such Borrower), and (d) containing the names of the officer or
 officers of such Borrower authorized to sign the Loan Documents, including
 this Amendment, together with a sample of the true signature of each such
 officer, or affirming that the officer or officers certified to Lender on
 October 28, 2011 remain so authorized; together with current good standing
 certificate for such Borrower; and

 
	
  

 	
  

 
	
  

 	
           (b)         such
 other matters as Lender may reasonably require. 

 

                    6.          Representations
and Warranties. Borrowers hereby represent and warrant to Lender as
follows:

	
  

 	
  

 
	
  

 	
           (a)         Each
 Borrower has all requisite power and authority to execute this Amendment and
 any other agreements or instruments required hereunder and to perform all of
 its obligations hereunder, and this Amendment and the Credit Agreement, as
 amended by this Amendment, and the other Loan Documents to which
 such Borrower is a party have been duly executed and delivered by such
 Borrower and constitute the legal, valid and binding obligations of such
 Borrower, enforceable in accordance with their respective terms, except as
 enforcement may be limited by equitable principles or by bankruptcy,
 insolvency, reorganization, moratorium or similar laws relating to or
 limiting creditors’ rights generally.

 
	
  

 	
  

 
	
  

 	
           (b)         The
 execution, delivery and performance by such Borrower of this Amendment, the
 Credit Agreement, as amended by this Amendment, and the other Loan Documents
 to which such Borrower is a party have been duly authorized by all necessary
 corporate action and do not (i) violate any material provision of federal,
 state, or local law or regulation applicable to such Borrower, the governing
 documents of such Borrower, or any order, judgment, or decree of any court or
 other governmental authority binding on such Borrower, (ii) conflict
 with, result in a breach of, or constitute (with due notice or lapse of time
 or both) a default under any contract, obligation, indenture or other
 instrument to which any Borrower is a party or by which any Borrower may be
 bound, (iii) result in or require the creation or imposition of any Lien
 of any nature whatsoever upon any assets of any Borrower, or (iv) require any
 approval of such Borrower’s shareholders or any approval or consent of any
 other person or entity.

 
	
  

 	
  

 
	
  

 	
           (c)         All
 of the representations and warranties contained in Article II of the Credit
 Agreement are correct on and as of the date hereof as though made on and as
 of the date hereof, except to the extent that such representations and
 warranties relate solely to an earlier date.

 

                    7.          References.
All references in the Credit Agreement to “this Agreement” shall be deemed to
refer to the Credit Agreement as amended by this Amendment; and any and all
references in the other Loan Documents to the Credit Agreement shall be deemed
to refer to the Credit Agreement as amended by this Amendment.

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                    8.          No
Other Waiver. Except as expressly set forth in Section 4 of this
Amendment, the execution of this Amendment and the acceptance of all
other agreements and instruments related hereto shall not be deemed to be a
waiver of any default or Event of Default under the Credit Agreement or a
waiver of any breach, default or event of default under any other Loan
Document, whether or not known to Lender and whether or not existing on the
date of this Amendment.

                    9.          Release.
Each Borrower hereby absolutely and unconditionally releases and forever
discharges Lender, and any and all participants, parent corporations,
subsidiary corporations, affiliated corporations, insurers, indemnitors, successors
and assigns thereof, together with all of the present and former directors,
officers, agents and employees of any of the foregoing, from any and all
claims, demands or causes of action of any kind, nature or description arising
under, in connection with or related to any of the debts, liabilities or
obligations of Borrowers and/or any Borrower under any of the Loan Documents or
any of the Loan Documents, whether arising in law or equity or upon contract or
tort or under any state or federal law or otherwise, which Borrowers and/or any
Borrower has had, now has or has made claim to have against any such person or
entity for or by reason of any act, omission, matter, cause or thing whatsoever
arising from the beginning of time to and including the date of this Amendment,
whether such claims, demands and causes of action are matured or unmatured or
known or unknown.

                    10.        Costs
and Expenses. Borrowers hereby reaffirm their agreement under
Section 7.3 of the Credit Agreement to pay or reimburse Lender with
respect to its costs, expenses and fees, including, without limitation, all
reasonable fees and disbursements of legal counsel incurred by Lender in
connection with this Amendment.

                    11.        Miscellaneous.
This Amendment may be executed in any number of counterparts, each of which
when so executed and delivered shall be deemed an original and all of which
counterparts, taken together, shall constitute one and the same instrument.
Delivery of an executed signature page of this Amendment by facsimile
transmission or in a pdf or similar electronic file shall be effective as
delivery of a manually executed counterpart thereof.

Signature page follows

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                    IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed as of the date first above written.

	
  

 	
  

 	
  

 
	
  

 	
 BORROWERS:

 
	
  

 	
  

 	
  

 
	
  

 	
 COMMUNICATIONS SYSTEMS, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
 Name:

 	
  

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 JDL TECHNOLOGIES, INCORPORATED

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
 Name:

 	
  

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 TRANSITION NETWORKS, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
 Name:

 	
  

 
	
  

 	
 Title:

 	
  

 

Signature Page to Second Amendment
to Credit and Security Agreement 

and Waiver of Event of Default

	
  

 	
  

 	
  

 
	
  

 	
 LENDER:

 
	
  

 	
  

 
	
  

 	
 WELLS FARGO BANK, NATIONAL

 
	
  

 	
 ASSOCIATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
 Name:

 	
 Michael M. Lebens

 
	
  

 	
 Title:

 	
 Vice President

 

Signature Page to
Second Amendment to Credit and Security Agreement

and Waiver of Event of DefaultExhibit 10.1

 

CHANGE OF CONTROL AGREEMENT

 

 

AGREEMENT made as of March
11, 2014, by and among CODORUS VALLEY BANCORP, INC., a Pennsylvania business corporation (hereinafter referred to as the
“Corporation”), PEOPLESBANK, a Codorus Valley Company, a Pennsylvania state chartered bank (hereinafter referred
to as the “Bank”) and BENJAMIN F. RIGGS, JR., an individual residing at 2798 Wimbledon Lane, Lancaster, Pennsylvania
17601 (hereinafter referred to as “Executive”).

 

WITNESSETH:

 

WHEREAS, Executive is now
serving as General Counsel and Secretary of the Corporation and the Bank, a wholly-owned subsidiary of the Corporation; and

 

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

 

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

 

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

 

ARTICLE I

 

TERMINATION PURSUANT TO A CHANGE OF CONTROL

 

 

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

 

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

 

B.          Any of the following events
occurs and Executive thereafter terminates Executive’s employment:

 

(i)          any reduction
in title or reduction in Executive’s responsibilities or authority which are inconsistent with, or the assignment to the Executive
of duties inconsistent with the Executive’s status as General Counsel and Secretary of the Corporation or Bank or any title
having equivalent status or responsibility, including reporting responsibilities, or authority, including such responsibilities
or authorities as may be increased from time to time; or

 

    	 

    	 

    

 

(ii)          any
removal of the Executive from office except for any termination of the Executive’s for Cause; or

 

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

 

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

 

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

 

(vi)          any
requirement that Executive travel in performance of his duties on behalf of the Corporation or Bank for a significantly greater
period of time during any year than was required of Executive during the year preceding the year in which the Change of Control
occurred; or

 

(vii)          any
material breach of this Agreement of any nature whatsoever on the part of the Corporation or the Bank.

 

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

 

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The burden of establishing the
validity of any termination for Good Cause shall rest upon the Corporation or the Bank.

 

1.2          Compensation
Upon Termination Pursuant to a Change of Control. If Executive’s employment if terminated and such termination is
a Termination Pursuant to a Change of Control (as defined in Section 1.1), the Executive shall be entitled to receive the following:

 

A.          Executive shall be paid a lump
sum equal to one (1) times the sum of (i) the highest of Executive’s annualized base salary at the time of or during one
of the three calendar years immediately preceding the Termination Pursuant to a Change of Control, and (ii) the highest cash bonus
earned by Executive with respect to one of the three calendar years immediately preceding the date of the Termination Pursuant
to a Change of Control. Such amount will be paid to Executive in a lump sum within ten (10) days after termination of Executive’s
employment; and

 

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

 

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

 

1.4          Withholding
for Taxes.All payments required to be made under this Agreement will be subject to withholding of such amounts relating
to tax and/or other payroll deductions as may be required by law.

 

1.5          Key Employee Status.Notwithstanding
anything in this Section to the contrary, in the event Executive is determined to be a Key Employee, as that term is defined in
Section 409A of the Internal Revenue Code and the regulations promulgated thereunder,

 

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payments to such Key Employee hereunder, other than
payments qualifying as short-term deferrals under Section 409A of the Code and the regulations promulgated thereunder, shall not
begin earlier than the first day of the seventh month after the date of termination.

 

For the purposes of the foregoing,
the date upon which a determination is made as to the Key Employee status of the Executive, the Identification Date (as defined
in Section 409A of the Code and the regulations promulgated thereunder) shall be December 31.

 

 

ARTICLE II

 

DEFINITION OF CHANGE OF CONTROL

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

ARTICLE III

 

EXPENSES

 

3.1          Legal Action.If
Executive determines in good faith that the Corporation or any successor has failed to comply with its obligations under this Agreement,
or if the Corporation or any successor or any other person takes any action to declare this Agreement void or unenforceable, or
institutes any legal action or arbitration proceeding with respect to this Agreement, the Corporation hereby irrevocably authorizes
Executive from time to time to retain counsel of Executive’s choice, at the expense of the Corporation or such successor, to represent
Executive in connection with any and all actions and proceedings, whether by or against the Corporation, any acquirer or successor,
or any director, officer, stockholder or other person affiliated with any of the foregoing.

 

3.2          Excise Tax Matters.It
is the intention of the Corporation that Executive not be required to incur any expenses associated with determination of the amount
of any “excess parachute payment” under Internal Revenue Code Section 280G or the amount of any excise tax imposed on
Executive pursuant to Internal Revenue Code Section 4999 (or any successor provisions thereto). Therefore, the Corporation agrees
to pay all expenses, including the expenses of the Corporation’s independent certified accountant and tax counsel, related to the
determination of any excess parachute payment and excise tax.

 

 

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ARTICLE IV

 

MISCELLANEOUS

 

 

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

 

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

 

4.3          Entire Agreement;
Amendment.This Agreement represents the entire understanding between the parties hereto with respect to the subject
matter hereof and may be amended only by an instrument in writing signed by the parties hereto. Upon the execution and delivery
of this Agreement, any prior agreement relating to the subject matter hereof will be deemed automatically terminated and be of
no further force or effect.

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

	ATTEST:	 	CODORUS VALLEY BANCORP, INC.
	 	 	 
	 	 	 
	 	 	By:	 
	Secretary	 	 
	 	 	 
	(SEAL)	 	 
	 	 	 
	ATTEST:	 	PEOPLESBANK, a Codorus Valley Company
	 	 	 
	 	 	 
	 	 	By:	 
	Secretary	 	 
	 	 	 
	(SEAL)	 	 
	 	 	 
	WITNESS:	 	EXECUTIVE
	 	 	 
	 	 	 
	 	 	By:	 
	 	 	Benjamin F. Riggs, Jr
	 	 	 
	 	 	 

 

 

 

 

 

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