Document:

Exhibit 10.2

NON-COMPETITION, NON-SOLICITATION,
AND CONFIDENTIALITY

AGREEMENT

This NON-COMPETITION,
NON-SOLICITATION, AND CONFIDENTIALITY AGREEMENT (the “Agreement”) is effective as of the 15th day of February,
2012, by and between Electromed, Inc. (the “Corporation”) and James Cassidy (the “Employee”).

RECITALS

A.            The Employee is currently employed
by the Corporation in a capacity in which the Employee may create or have access to proprietary confidential and/or trade secret
information of the Corporation; and

B.            The Corporation has expended substantial
time and resources to develop proprietary confidential and/or trade secret information and to develop valuable relationships and
goodwill within its industry; and

C.            The Employee recognizes that the
Corporation operates in a highly competitive environment and the importance to the Corporation of ensuring the Employee’s
loyalty and protecting the Corporation’s actual and prospective customers, business relations, employees, and confidential
information; and

D.            The Employee has entered into
this Agreement in consideration of the Corporation and Employee entering into an Employment Agreement of even date which provides,
among other things, for continued employment, an option to acquire shares of the Corporation’s common stock, added compensation,
training and benefits, added severance in the event of a change of control as defined in the Employment Agreement, and in consideration
of being given access to Corporation’s proprietary confidential and/or trade secret information, the receipt and sufficiency
of which consideration is hereby acknowledged by the Employee.

AGREEMENT

In consideration
of the above recitals and the promises set forth in this Agreement, the parties agree as follows:

1.                  
Protection of Confidential Information.

1.1.             
Definition of Confidential Information. As used in this Agreement, the term
“Confidential Information” shall mean any information which the Employee learns or develops during the Employee’s
employment with the Corporation that derives independent economic value from being not generally known or readily ascertainable
by other persons who could obtain economic value from its disclosure or use, and includes, but is not limited to, trade secrets,
financial information, personnel information, and information relating to such matters as existing or contemplated products, services,
profit margins, fee schedules, pricing, design, processes, formulae, business plans, sales techniques, marketing techniques, training
manuals and materials, policies or practices related to the Corporation’s business, personnel or other matters, computer
databases, computer programs, software and other technology, customer lists and requirements, vendor lists, or supply information.
Confidential Information includes such information of the Corporation, its customers, vendors, and other third parties or entities
with whom the Corporation does business. Any information disclosed to the Employee or to which the Employee has access during the
time of the Employee’s employment that the Employee reasonably considers to be Confidential Information, or which the Corporation
treats as Confidential Information, will be presumed Confidential Information.

    	 

    	 

    
 

1.2.             
Restrictions on Use or Disclosure of Confidential Information. The Employee
shall keep the Confidential Information in absolute confidence both during the Employee’s employment with the Corporation
and after the termination of the Employee’s employment, regardless of the reason for such termination. The Employee agrees
that the Employee will not, at any time, disclose to others, use for the benefit of any entity or person other than the Corporation,
or otherwise take or copy any such Confidential Information, whether or not developed by the Employee, except as required in the
Employee’s duties to the Corporation.

1.3.             
Return of Confidential Information and the Corporation’s Property. When
the Employee’s employment terminates with the Corporation, regardless of the reason for such termination, the Employee will
promptly turn over to the Corporation in good condition all Corporation property in the Employee’s possession or control,
including but not limited to all originals, copies of, or electronically stored documents or other materials containing Confidential
Information, regardless of who prepared them. In the case of electronically stored information retained by the Employee outside
of the Corporation’s electronic systems, the Employee will promptly make a hard copy of such information in paper, audio
recording, disc format, or other format as appropriate, turn that hard copy over to the Corporation, and then destroy the Employee’s
electronically stored information.

2.                  
Noncompetition/Non-Solicitation.

2.1.             
Acknowledgement by the Employee. The Employee acknowledges that (a) the Employee’s
services to be performed for the Corporation are of a special and unique nature; (b) the Corporation operates in a highly competitive
environment and would be substantially harmed if the Employee were to compete with the Corporation or divulge its confidential
information; (c) the Employee has received valuable and sufficient consideration for entering into this Agreement, including but
not limited to employment with the Corporation, and the receipt of Confidential Information; and (d) the provisions of this Section
2, including all of its subparts, are reasonable and necessary to protect the Corporation’s business.

2.2.             
“Corporate Product” Defined. For purposes of this Agreement, “Corporate
Product” means any product or service (including any component thereof and any research to develop information useful in
connection with a product or service) that has been or is being designed, developed, manufactured, marketed, or sold by the Corporation
or with respect to which the Employee has acquired Confidential Information.

The Employee understands
and acknowledges that, at the present time, Corporate Products includes the SmartVest® Airway Clearance System and related
products. The Employee understands and acknowledges that the foregoing description of Corporate Products may change, and the provisions
of this Section 2 and all of its subparts shall apply to the Corporate Products of the Corporation in effect upon the termination
of the Employee’s employment with the Corporation.

    	- 2 -

    	 

    
 

2.3.             
“Competitive Product” Defined. For purposes hereof, “Competitive
Product” means any product or service (including any components thereof and any research to develop information useful in
connection with the product or service) that is being designed, developed, manufactured, marketed, or sold by any person or entity
other than the Corporation that is of the same general type, performs similar functions, or is used for the same purpose as a Corporate
Product or about which the Employee has acquired Confidential Information.

2.4.             
Noncompete Obligations. The Employee agrees that, during the Employee’s
employment with the Corporation and for a period of twelve (12) months following the Employee’s termination of employment
with the Corporation, regardless of the reason for termination, the Employee will not, directly or indirectly, render services
to any person or entity that designs, develops, manufactures, markets, or sells a Competitive Product in any geographic area where
the Corporation designs, develops, manufactures, markets, or sells a Corporate Product. It is expressly understood, however, that
the Employee is free to work for a competitor of the Corporation provided that such employment does not include any responsibilities
for or in connection with a Competitive Product.

The Employee understands
and acknowledges that, at the present time, the geographic market of the Corporation includes North America. The Employee understands
and acknowledges that the foregoing description of the Corporation’s geographic market may change, and the provisions of
this Section 2 and all of its subparts shall apply to the geographic market of the Corporation in effect upon the termination of
the Employee’s employment with the Corporation.

2.5.             
No Solicitation of Customers. During the Employee’s employment with the
Corporation and for a period of twelve (12) months after the Employee’s termination of employment with the Corporation, regardless
of the reason for such termination, the Employee agrees that the Employee shall not, directly or indirectly, solicit business from,
work for, or otherwise interfere with or attempt to interfere with the Corporation’s relationship with any customer or prospective
customer of the Corporation.

2.6.             
No Solicitation of Employees or Business Contacts. During the Employee’s
employment with the Corporation and for a period of twelve (12) months after the Employee’s termination of employment with
the Corporation, regardless of the reason for such termination, the Employee agrees that the Employee shall not, directly or indirectly,
take any action to encourage, solicit or recruit any current or former employee, consultant, independent contractor, subcontractor,
supplier, vendor, or other business relation of the Corporation to terminate their relationship with the Corporation.

2.7.             
Disclosure of Obligations. The Employee agrees that, during the Employee’s
employment with the Corporation and for a period of twelve (12) months after the Employee’s termination of employment with
the Corporation, regardless of the reason for such termination, the Employee shall, prior to accepting employment or any other
business relationship with any other person or entity, inform that person or entity of the Employee’s obligations under this
Section 2, including all of its subparts.

    	- 3 -

    	 

    
 

3.                  
Compliance and Remedies. The Employee recognizes that if the Employee violates
this Agreement, including but not limited to Paragraphs 1 and 2 of this Agreement, irreparable damage will result to the Corporation
that could not adequately be remedied by monetary damages. As a result, the Employee hereby agrees that notwithstanding any other
dispute resolution provisions of this Agreement, in the event of any breach by the Employee of this Agreement, including but not
limited to Paragraphs 1 and 2 of this Agreement, the Corporation shall be entitled, in addition to any other legal or equitable
remedies available to it, to an injunction to restrain the Employee’s violation of any portion of this Agreement.

4.                  
Miscellaneous.

4.1.             
Integration. This Agreement embodies the entire agreement and understanding
among the parties relative to subject matter hereof and supersedes all prior agreements, understandings, or past practices, whether
written or oral, relating to such subject matter.

4.2.             
Survival of Sections 1 and 2. Employee’s obligations set forth in Sections
1 and 2 of this Agreement, including all of these sections’ subparts, shall survive the termination of this Agreement and
Employee’s termination of employment with the Corporation, regardless of the reason for such terminations.

4.3.             
Applicable Law; Venue. This Agreement and the rights of the parties shall be
governed by and construed and enforced in accordance with the laws of the state of Minnesota, without regard to any state’s
choice of law principles or rules. The venue for any action hereunder shall be in the state of Minnesota, whether or not such venue
is or subsequently becomes inconvenient, and the parties consent to the jurisdiction of the courts of the state of Minnesota, county
of Hennepin, and the federal district courts of Minnesota.

4.4.             
Counterparts. This Agreement may be executed in several counterparts and as
so executed shall constitute one agreement binding on the parties hereto.

4.5.             
Modification by the Parties. This Agreement shall not be modified or amended
except by a written instrument signed by the parties. In addition, no waiver of any provision of this Agreement shall be binding
unless set forth in a writing signed by the party effecting the waiver. Any waiver shall be limited to the circumstance or event
specifically referenced in the written waiver document and shall not be deemed a waiver of any other term of this Agreement or
of the same circumstance or event upon any recurrence thereof.

4.6.             
Severability; Blue Pencil. The invalidity or partial invalidity of any portion
of this Agreement shall not invalidate the remainder thereof, and said remainder shall remain in full force and effect. Moreover,
if one or more of the provisions contained in this Agreement shall, for any reason, be held to be excessively broad as to scope,
activity, subject or otherwise, so as to be unenforceable at law, such provision or provisions shall be construed by the appropriate
judicial body by limiting or reducing it or them, so as to be enforceable to the maximum extent compatible with then applicable
law.

    	- 4 -

    	 

    
 

4.7.             
Headings. The section headings contained in this Agreement are for reference
purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date herein first above written.

	 	ELECTROMED, INC.	 
	 	 	 	 
	 	 	 	 
	 	/s/ Robert D. Hansen	 
	 	By:	Robert D. Hansen	 
	 	  Its: 	Chairman/CEO	 
	 	 	 	 
	 	 	 	 
	 	EMPLOYEE:	 
	 	 	 	 
	 	/s/ James Cassidy 2/17/2012	 

 

 

 

 

 

    	- 5 -Exhibit
10.1 

 

	

CONFIDENTIAL TREATMENT REQUESTED

 

 

 

 

 

 

 

 

 

 

 

 

PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

Final
– February 14, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Approved by

Board of Directors: February 14,
2012

 

Approved by

Compensation Committee: February
14, 2012

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

 

 

    	 

    	CONFIDENTIAL TREATMENT REQUESTED

    

PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

I.             
Introduction

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

 

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

 

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

 

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

 

	•	provide a form of results-oriented variable compensation which is directly linked to overall Company performance in terms of net income, and,
	•	provide for recognition of individual contribution to the Company’s performance through an individual performance level which can be utilized to adjust an employee’s award up or down based on individual contribution/performance

 

 

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    TREATMENT REQUESTED
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PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

II.           
Definitions

Various terms used in this plan document are defined as follows:

 

 

	Target	
        defined as 100% of goal

         

	Threshold	
        defined as a predetermined point 90% of target goal

         

	Maximum	
        defined as a predetermined point 120% of target goal

         

	Target Payout Level	
        defined as a predetermined percentage of base salary as outlined
        in Exhibit B at target performance

         

	Threshold Payout Level	
        defined as a predetermined percentage of base pay less than 100%
        of target award level

         

	Maximum Payout Level	defined as a predetermined percentage of base pay greater than 100% of target award level

 

III.          
Plan Year

The plan year for this program will be the calendar year. The
effective date of the Plan is January 1, 2012. The Plan will pay out annually based on achievement of established goals and performance
measures. The performance measures for the Plan will be determined, calculated and approved annually.

 

IV.          
Eligibility for Participation

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

 

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

 

Eligibility for incentive payout will be determined by the participant’s
most recent performance rating. To be eligible, individuals must have a minimally satisfactory rating and not be on probation and/or
written warning during the plan year or at the time of award payment. Exceptions to this are only made by the Chief Executive Officer
and would occur if an employee who was on probation during the year has successfully remedied the performance deficiency for a
sufficient time period prior to award payment.

 

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    TREATMENT REQUESTED
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    	CONFIDENTIAL TREATMENT REQUESTED

    

PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

Newly hired executive employees will be eligible for participation
in the Executive Incentive Plan providing they were hired prior to October 1 of the plan year. Payout for current year hires will
be pro-rated based on their actual pay during the plan year. If hired after October 1, the executive will be eligible for the next
plan year.

 

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

 

V.          
Performance Factors

The Plan is based upon overall Company performance against pre-defined
performance factors. These factors may change from year to year. In general, these factors may be measures such as net income,
return on assets, return on equity, earnings per share, balance sheet growth or similar indicators. The factors and weighing of
the factors are determined at the beginning of each plan year. Each factor has quantifiable objectives consisting of threshold,
target, and maximum goals. Annual goals are determined at the beginning of each plan year and may change from year to year. The
goals are established each year by the Board of Directors and Executive Management and are generally done in conjunction with the
budgeting process.

 

The Company’s performance factors for each year's plan
are found in Exhibit B. Individual participant performance measures will be documented in the format (or similar format) indicated
in Exhibit C.

 

While every effort has been made to ensure that this incentive
plan does not motivate or reward undue risk-taking, any results deemed to have been the result of inappropriate risk will be backed
out of incentive payments. The Board of Directors has the discretion to adjust incentive payments down by as much as 100% if it
is determined that excessive risk has been taken. This can be done on an individual or overall basis, as appropriate.

 

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    TREATMENT REQUESTED
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    	CONFIDENTIAL TREATMENT REQUESTED

    

PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

Executive incentives will have two components:

 

	1.	An award determined by overall Company financial performance against
pre-defined goals.
	2.	An individual performance factor which can increase or decrease
each employee’s actual award based on annual performance and work production during the year. 

 

VI.          
Award Calculation and Distribution

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

 

Performance above the defined maximum levels, while not necessarily
undesirable or unrealistic, has the potential of requiring increased risk, therefore incentive opportunity will not increase for
performance above maximum.

 

Generally, Company performance below threshold will result in
no award (including no individual award) under the Plan. However, in the case of Company performance below threshold, the Board
of Directors has the discretion to create a pool equal to 3% of the base compensation of plan Category 2 and 3 participants for
distribution to selected Category 2 and 3 participants based upon individual performance/contribution.

 

The designated individual(s), as detailed in Exhibit B, will
assess the contributions and performance of each participant following the end of the plan year and apply the individual performance
factor as it appears in the grid in Exhibit B to determine awards. Individual employee performance which is not meeting the position's
requirements will result in no award granted to that individual for that year even though Company performance is above threshold.

 

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

 

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    TREATMENT REQUESTED
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    	CONFIDENTIAL TREATMENT REQUESTED

    

PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

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

 

VII.          Clawback

 

Awards will be recalculated if the relevant Company or individual
performance measures upon which they are based are restated or otherwise adjusted within the 36-month period following the public
release of the financial information. Any material overpayments or adjustments required by law will be owed back to the Company.

 

VIII.         Administration

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

 

Once established, performance factors and goals are intended
to remain in place for the entire year; however, the Board of Directors reserves the right to adjust goals if extenuating circumstances
warrant such action.

 

Participation, performance factors, thresholds, targets, maximums
and any other participation features are established each plan year and may change from year to year according to the strategic
objectives of the Company.

 

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    TREATMENT REQUESTED
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    	CONFIDENTIAL TREATMENT REQUESTED

    

PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

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

 

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

 

The Board of Directors shall have full power and
authority to construe, interpret, manage and control this plan. The plan administrator shall be designated at the discretion
of the CEO. The Board of Directors may also terminate, modify, or amend this plan. Amendments can include adjustments to the
performance factors or award calculations for any significant extraordinary financial items occurring in any given time
period.

 

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

 

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

 

Any adjustments to the financial performance results utilized
in this plan because of extraordinary gains or losses or other items must be approved by the Board of Directors.

 

IX.          Governing Law

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

 

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    TREATMENT REQUESTED
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    	CONFIDENTIAL TREATMENT REQUESTED

    

PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

 

X.          Plan Approval

This plan has been approved by the Board of Directors of Codorus
Valley Bancorp, Inc. on February 14, 2012.

 

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

 

 

 

 

 

 

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    TREATMENT REQUESTED
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    	CONFIDENTIAL TREATMENT REQUESTED

    

PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

 

Exhibit A

Employee Incentive Plan

Participation Categories 

 

 

	 	Category 1 – 	President & CEO
	 	 	 
	 	Category 2 –	Chief Credit Officer
	 	 	Chief Counsel
	 	 	Chief Financial Officer
	 	 	Chief Lending Officer
	 	 	Chief Operating Officer
	 	 	Head of HR
	 	 	Head of Retail
	 	 	SVP, Wealth Management
	 	 	 
	 	Category 3 - 	CIO
	 	 	SVP, General Services
	 	 	VP, Auditor
	 	 	VP, Marketing

 

 

 

 

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    TREATMENT REQUESTED
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    	CONFIDENTIAL TREATMENT REQUESTED

    

PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

Exhibit B

 

Performance Award Schedule 

Plan Year 2012

 

Category 1 

 

COMPANY
GOALS 

Performance Measure - Net Income

 

	Threshold (90% of Target)	Target	Maximum (120% of Target)
	$[redacted] m	$[redacted] m (6)	$[redacted] m
	 	 	 

COMPANY
GOAL AWARD

(% of Base Pay)

	Threshold	Target	Maximum
	12.5%	25%	
        37.5%

         

INDIVIDUAL
PERFORMANCE FACTOR

	+/- 20% of the award based on individual performance as determined by BOD	+/- 20% of the award based on individual performance as determined by BOD	+/- 20% of the award based on individual performance as determined by BOD 
	 	 	 

POTENTIAL
AWARD RANGE

(% of Base Pay)

	Threshold	Target	Maximum
	10 – 15%	20 – 30%	30  – 45%

 

Parameters for 2012

	Base pay is defined as base salary as of December 31 of plan year.
	Company performance factor(s) must meet or exceed threshold to initiate
an award in the Plan.
	Awards for performance above threshold but between defined points
(threshold, target, maximum) will be interpolated.
	Performance above maximum level will be paid at maximum award level.
	The Board of Directors has the discretion to adjust incentive payments
down by as much as 100% if it is determined that excessive risk has been taken. This can be done on an individual or overall basis,
as appropriate.
	Net income is defined as net income after all expenses including
the dividend paid on the preferred shares and the expense of the awards under this plan. (For 2012 the award expense at target
of $[redacted] (after tax - $[redacted]) was not included in the budget. Therefore, to achieve target results under this plan,
net income must exceed budget by $[redacted].)

 

Portions of this exhibit have been redacted
and are subject to a confidential treatment request filed with the Secretary of the Securities and Exchange Commission pursuant
to Rule 24b-2 under the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.

 

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    TREATMENT REQUESTED
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    	CONFIDENTIAL TREATMENT REQUESTED

    

PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

Exhibit B

Performance Award Schedule 

Plan Year 2012

 

Category 2

 

COMPANY
GOALS 

Performance Measure - Net Income

 

	Threshold (90% of Target)	Target	Maximum (120% of Target)
	$[redacted] m	$[redacted] m (6)	$[redacted] m
	 	 	 

COMPANY
GOAL AWARD

(% of Base Pay)

	Threshold	Target	Maximum
	10%	20%	30%

 

INDIVIDUAL
PERFORMANCE FACTOR

	+/- 35% of the award based on individual performance as determined by BOD	+/- 35% of the award based on individual performance as determined by BOD	+/- 35% of the award based on individual performance as determined by BOD 
	 	 	 

POTENTIAL
AWARD RANGE

(% of Base Pay)

	Threshold	Target	Maximum
	6.5 – 13.5%	13  – 27%	19.5 – 40.5%

 

Parameters for 2012

	Base pay is defined as base salary as of December 31 of plan year.
	Generally, Company performance factor(s) must meet or exceed threshold
to initiate an award in the Plan. However, in the case of corporate performance below threshold, the Board of Directors has the
discretion to create a pool equal to 3% of the base compensation of Category 2 and 3 plan participants for distribution to selected
Category 2 and 3 participants based upon exceptional individual performance/contribution.
	Awards for performance above threshold but between defined points
(threshold, target, maximum) will be interpolated.
	Performance above maximum level will be paid at maximum award
level.
	The Board of Directors has the discretion to adjust incentive
payments down by as much as 100% if it is determined that excessive risk has been taken. This can be done on an individual or overall
basis, as appropriate.
	Net income is defined as net income after all expenses including
the dividend paid on the preferred shares and the expense of the awards under this plan. (For 2012 the award expense at target
of $[redacted] (after tax - $[redacted]) was not included in the budget. Therefore, to achieve target results under this plan,
net income must exceed budget by $[redacted].)

 

Portions of this exhibit have been redacted
and are subject to a confidential treatment request filed with the Secretary of the Securities and Exchange Commission pursuant
to Rule 24b-2 under the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.

 

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    TREATMENT REQUESTED
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    	CONFIDENTIAL TREATMENT REQUESTED

    

PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

Exhibit B

 

Performance Award Schedule 

Plan Year 2012

 

Category 3

 

COMPANY
GOALS 

Performance Measure - Net Income

 

	Threshold (90% of Target)	Target	Maximum (120% of Target)
	$[redacted] m	$[redacted] m (6)	$[redacted] m
	 	 	 

COMPANY
GOAL AWARD
(% of Base Pay)

	Threshold	Target	Maximum
	7.5%	15%	22.5%
	 	 	 

INDIVIDUAL
PERFORMANCE FACTOR

	+/- 50% of the award based on individual performance as determined by BOD	+/- 50% of the award based on individual performance as determined by BOD	+/- 50% of the award based on individual performance as determined by BOD 
	 	 	 

POTENTIAL
AWARD RANGE
(% of Base Pay)

	Threshold	Target	Maximum
	3.75 – 11.25%	7.5 – 22.5%	11.25 – 33.75%

 

Parameters for 2012

	Base pay is defined as base salary as of December 31 of plan year.
	Generally, Company performance factor(s) must meet or exceed threshold
to initiate an award in the Plan. However, in the case of corporate performance below threshold, the Board of Directors has the
discretion to create a pool equal to 3% of the base compensation of Category 2 and 3 plan participants for distribution to selected
Category 2 and 3 participants based upon exceptional individual performance/contribution.
	Awards for performance above threshold but between defined points
(threshold, target, maximum) will be interpolated.
	Performance above maximum level will be paid at maximum award
level.
	The Board of Directors has the discretion to adjust incentive
payments down by as much as 100% if it is determined that excessive risk has been taken. This can be done on an individual or overall
basis, as appropriate.
	Net income is defined as net income after all expenses including
the dividend paid on the preferred shares and the expense of the awards under this plan. (For 2012 the award expense at target
of $[redacted] (after tax - $[redacted]) was not included in the budget. Therefore, to achieve target results under this plan,
net income must exceed budget by $[redacted].)

 

Portions of this exhibit have been redacted
and are subject to a confidential treatment request filed with the Secretary of the Securities and Exchange Commission pursuant
to Rule 24b-2 under the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.

 

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PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

EXHIBIT C

 

PEOPLESBANK

EXECUTIVE INCENTIVE PLAN

INDIVIDUAL PEFORMANCE MEASURES

PLAN YEAR 2012

 

Guidelines

 

Goals are to be:

	•	Clearly and specifically defined
	•	Realistic
	•	Measurable – includes language that quantifies or qualifies specific, observable, verifiable results and defines target levels of projected accomplishment – include quality, quantity, timeliness, cost-effectiveness.  Numeric measures are ideal although descriptive measures, involving a description of satisfactory accomplishment, can be used if the goal cannot be measured with numbers.
	•	Result in significant improvement in performance and/or productivity of the individual and/or organization
	•	Detail the timeframe for accomplishing goals
	•	Business Plan Goals must align with strategic goals, business plan goals and/or budget priorities.
	•	Personal Development Goals should align with areas of personal development which will improve management effectiveness and leadership.

 

 

 

 

 

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PeoplesBank, A Codorus Valley Company

Executive
Incentive Plan

 

 

	Goal:

        What is to be accomplished
        and how?

        How does this goal link
        to strategic goals or business plan goals?

         
	How
    will goal be measured?	How
    does this goal represent a significant improvement in productivity or performance of the individual or the organization	Timeframe/Deadlines
	Business plan goals	 	 	 
	
        1.

         

         

         
	 	 	 
	
        2.

         

         

         

         
	 	 	 
	
        3.

         

         

         
	 	 	 
	Personal development goal	 	 	 
	
        1.

         

         

         

         
	 	 	 

 

 

 

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