Document:

EXHIBIT
10.11

 

SECOND AMENDMENT

TO THE

PEOPLESBANK, A CODORUS VALLEY COMPANY

SALARY CONTINUATION AGREEMENT

DATED OCTOBER 1, 1998

AND AMENDED DECEMBER 23, 2008

FOR 

LARRY J. MILLER

 

THIS SECOND AMENDMENT is adopted
this 23rd day of December, 2008, and is effective January 1, 2009, by and between PeoplesBank, A Codorus Valley Company,
a Pennsylvania banking institution located in York, Pennsylvania (the “Bank”) and a wholly owned subsidiary of Codorus
Valley Bancorp, Inc. (the “Corporation”) and Larry J. Miller (the “Executive”).

 

The Bank and the Executive executed
the Salary Continuation Agreement effective October 1, 1998, and executed a First Amendment on December 27, 2005 (the “Agreement”).

 

The undersigned hereby amend the
Agreement for the purpose of revising the Normal Retirement Benefit, removing the Discount Rate, adding an Early Retirement Benefit,
and updating for consistency between documents. Therefore, the following changes shall be made:

 

Section 1.1.9 of the Agreement
shall be deleted in its entirety and replaced with the following:

 

		1.1.9	“Plan Year” means the twelve month period beginning on January 1 and ending
on December 31.

 

Section 1.1.11 of the Agreement
shall be deleted in its entirety and replaced with the following:

 

		1.1.11	“Termination of Employment” means termination of the Executive’s employment
with the Bank for reasons other than death, Change of Control or Disability. Whether a termination of employment has occurred is
determined based on whether the facts and circumstances indicate that the Bank and the Executive reasonably anticipated that no
further services would be performed after a certain date or that the level of bona fide services the Executive would perform after
such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty percent (20%)
of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately
preceding thirty-six (36) month period (or the full period of services to the Bank if the Executive has been providing services
to the Bank less than thirty-six (36) months).

 

Sections 2.1.1 and 2.1.2 of
the Agreement shall be deleted in their entirety and replaced with the following:

 

		2.1.1	Amount of Benefit. The annual benefit under this Section 2.1 is One Hundred Fifty Thousand
Four Hundred Thirty Three Dollars ($130,433). For the first five (5) year period after Normal Retirement Age but prior to Termination
of Employment, the Bank shall increase the annual Normal Retirement Benefit by .3274%, compounded monthly, for each complete month
prior to Termination of Employment.

 

    	1 

     

    

PEOPLESBANK, A CODORUS VALLEY COMPANY

Salary Continuation Agreement

 

 

		2.1.2	Payment of Benefit. The Bank shall pay the annual benefit to the Executive in twelve (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 two hundred thirty nine (239) additional months.

 

Section 2.1.3 of the Agreement
shall be deleted in its entirety.

 

Sections 2.2.1 and 2.2.2 of
the Agreement shall be deleted in their entirety and replaced with the following:

 

		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 any Separation from Service which occurs other than at the end of the Plan Year, the benefit
shall be pro rated to take into account the Executive’s service during such partial Plan Year by dividing the difference
in the balance at the end of the current Plan Year and the balance at the end of the preceding Plan Year into twelve (12) and multiplying
this amount by the number of completed months since the last complete Plan Year. This amount will be added to the Annual Benefit
amount at the end of the preceding Plan Year on Schedule A.

 

		2.2.2	Payment of Benefit. The Bank shall pay the annual benefit to the Executive in twelve (12)
equal monthly installments payable on the first day each month commencing with the month following Normal Retirement Age and continuing
for two hundred thirty nine (239) additional months.

 

Section 2.2.3 of the Agreement
shall be deleted in its entirety.

 

Sections 2.3, 2.3.1 and 2.3.2
of the Agreement shall be deleted in their entirety and replaced with the following:

 

		2.3	Disability Benefit. If the Executive experiences a Disability prior to Normal Retirement
Age, the Bank shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit under this Agreement.

 

		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 any Disability which occurs other than at the end of the Plan Year, the benefit shall be pro rated
to take into account the Executive’s service during such partial Plan Year by dividing the difference in the balance at the
end of the current Plan Year and the balance at the end of the preceding Plan Year into twelve (12) and multiplying this amount
by the number of completed months since the last complete Plan Year. This amount will be added to the Annual Benefit amount at
the end of the preceding Plan Year on Schedule A.

 

    	2 

     

    

PEOPLESBANK, A CODORUS VALLEY COMPANY

Salary Continuation Agreement

 

 

		2.3.2	Payment of Benefit. The Bank shall pay the annual benefit amount to the Executive in twelve
(12) equal monthly installments payable on the first day of each month commencing with the month following the Disability and continuing
for two hundred thirty nine (239) additional months.

 

Section 2.3.3 of the Agreement
shall be deleted in its entirety.

 

Section 2.4.2 of the Agreement
shall be deleted in its entirety and replaced with the following:

 

		2.4.2	Payment of Benefit. The Bank shall pay the annual benefit amount to the Executive in twelve
(12) equal monthly installments payable on the first day of each month commencing with the month following the Executive’s
Normal Retirement Age and continuing for two hundred thirty nine (239) additional months.

 

Section 2.4.3 of the Agreement
shall be deleted in its entirety.

 

The following Sections 2.6 and
2.7 shall be added to the Agreement immediately following Section 2.5:

 

		2.6	Distributions Upon Taxation of Amounts Deferred. If, pursuant to Code Section 409A, the
Federal Insurance Contributions Act or other state, local, or foreign tax, the Executive becomes subject to tax on the amounts
deferred hereunder, then the Bank may make a limited distribution to the Executive in a manner that conforms to the requirements
of Code Section 409A. Any such distribution will decrease the Executive’s benefits distributable under this agreement.

 

		2.7	Change in Form or Timing of Distributions. For distribution of benefits under this Article
2, the Executive and the Bank may, subject to the terms of Section 8.1, amend this Agreement to delay the timing or change the
form of distributions. Any such amendment:

		(a)	may not accelerate the time or schedule of any distribution, except as provided in Code Section
409A;

		(b)	must, for benefits distributable under Sections 2.2 and 2.4, be made at least twelve (12) months
prior to the first scheduled distribution;

		(c)	must, for benefits distributable under Section 2.1, 2.2, and 2.4, delay the commencement of distributions
for a minimum of five (5) years from the date the first distribution was originally scheduled to be made; and

		(d)	must take effect not less than twelve (12) months after the amendment is made.

 

    	3 

     

    

PEOPLESBANK, A CODORUS VALLEY COMPANY

Salary Continuation Agreement

 

 

Section 8.8 of the Agreement
shall be deleted in its entirety.

 

 

IN WITNESS OF THE ABOVE,
the Executive and the Bank hereby consent to this Second Amendment.

 

	Executive:	PeoplesBank, A Codorus Valley Company	 
	 	 	 
	 	 	 	 
	/s/ Larry J. Miller	 	By:  	/s/ Rodney L. Krebs	 
	Larry J. Miller	Title:  	Chairman of the Board of Directors	 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	4Exhibit 10.16

CODORUS
VALLEY BANCORP, INC.

LONG TERM
NURSING CARE AGREEMENT

 

THIS AGREEMENT (“Agreement”)
is made this 27th day December, 2005, between CODORUS VALLEY BANCORP, INC., a Pennsylvania corporation (the “Corporation”),
PEOPLESBANK, A CODORUS VALLEY COMPANY, a Pennsylvania banking institution (the “Bank”), and LARRY J. MILLER, an adult
individual (the “Executive”).

WITNESSETH

WHEREAS, the Board
of Directors of the Corporation, by resolutions duly adopted at a special meeting of the Board held on May 27, 2003, did authorize
the purchase of a long term nursing care insurance policy for the benefit of the Executive and his spouse; and

WHEREAS, the Corporation
did purchase a long term nursing care insurance policy from Lincoln Benefits Life Company (Policy No.10700130734W) for the benefit
of the Executive and his spouse; and

WHEREAS, the Board
of Directors of the Corporation also authorized the Corporation, by resolution adopted on May 27, 2003, to enter into a contractual
relationship with the Executive to accelerate the 10-year annual premium payments due under the Long Term Nursing Care Insurance
Policy in the event of a change of corporate control; and

WHEREAS, the Corporation,
the Bank and the Executive desire to enter into this Agreement to, among other things, provide for the acceleration of premium
payments due under the Long Term Nursing Care Insurance Policy in the event of a change in corporate control, all as hereinafter
set forth.

NOW, THEREFORE,
in consideration of the mutual covenants and agreements set forth herein and intending to be legally bound hereby, the parties
hereto agree as follows:

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).

    	-1- 

     

    

(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 or 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 the 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 the 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
or 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 of the stock of the Corporation or the Bank; or

(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 or 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.

    	-2- 

     

    

There is no Change
in Control under this Paragraph 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 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 that corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other
corporation.

2.          ACCELERATION
OF ANNUAL PREMIUMS. Following the date of a Change in Control, the Executive shall be entitled to a lump sum payment equal
to the amount of any remaining unpaid annual premiums ($16,675.22 per annum) under the Long Term Nursing Care Insurance Policy
referenced above (Lincoln Benefits Life Company – Policy No. 10700130734W). At the election of the Executive, the Corporation
shall pay the aggregate amount due directly to the Executive, or to the Lincoln Benefits Life Company, or any successor thereto,
within ten (10) days following the date of the Change in Control. In the event the amount due is paid directly to the Executive,
the insurance policy shall, with the consent of Lincoln Benefits Life Company, be assigned to the Executive and his spouse, and,
thereafter, the Corporation, the Bank, and any successors thereto by merger or otherwise, shall have no further obligation or liability
for annual premium payments under the insurance policy.

    	-3- 

     

    

3.          EXCISE TAX
MATTERS. In the event that the amounts and benefits payable under this Agreement, when added to other amounts and benefits
which may become payable to the Executive by the Corporation and/or Bank, are such that he becomes subject to the excise tax provisions
of Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), the Corporation and the Bank shall pay
him such additional amount or amounts as will result in his retention (after the payment of all federal, state and local excise,
employment, and income taxes on such payments and the value of such benefits) of a net amount equal to the net amount he would
have retained had the initially calculated payments and benefits been subject only to income and employment taxation. For purposes
of the preceding sentence, the Executive shall be deemed to be subject to the highest marginal federal, state and local tax rates.
All calculations required to be made under this subparagraph shall be made by the Corporation’s independent certified public
accountants, subject to the right of Executive’s representative to review the same. All such amounts required to be paid
shall be paid at the time any withholding may be required under applicable law, and any additional amounts to which the Executive
may be entitled shall be paid or reimbursed no later than fifteen (15) days following confirmation of such amount by the Corporation’s
accountants. In the event any amounts paid hereunder are subsequently determined to be in error because estimates were required
or otherwise, the parties agree to reimburse each other to correct such error, as appropriate, and to pay interest thereon at the
applicable federal rate (as determined under Code Section 1274A for the period of time such erroneous amount remained outstanding
and unreimbursed). The parties recognize that the actual implementation of the provisions of this subparagraph are complex and
agree to deal with each other in good faith to resolve any questions or disagreements arising hereunder.

4.          PRIMARY OBLIGOR.
The obligation to make payments and provide benefits under this Agreement shall primarily be those of the Executive’s Employer.
In the event the Employer is not the Corporation or the Bank, the Corporation will cause such Employer to make required payments
and provide required benefits. To the extent the Corporation fails or is unable to do so, it shall make such payments and provide
such benefits.

5.          KEY EMPLOYEE.
Notwithstanding anything in this Agreement to the contrary, in the event Executive is determined to be a Key Employee, as that
term is defined in Section 409A of the Code and the regulations promulgated thereunder, payments to or on behalf of such Key Employee
under this Agreement shall not begin earlier than the first day of the seventh month following the date of the Change in Control.
For purposes of the foregoing, the date upon which a determination is made as to the Key Employee status of the Executive, the
Indemnification Date (as defined in Section 409A of the Code and the regulations promulgated thereunder) shall be December 31.

6.          LEGAL EXPENSES.
The Corporation will pay (or cause to be paid) to the Executive all reasonable legal fees and expenses when incurred by the Executive
in seeking to obtain or enforce any right or benefit provided by this Agreement, provided he acts in good faith with respect to
issues raised.

7.          RABBI TRUST.
The Corporation is establishing contemporaneously herewith a rabbi trust (the “Trust”), to which it is contributing
an initial corpus of $100. In the event of a change of control as defined herein, the Corporation shall, in accordance with the
terms of the Trust, contribute thereto the amount described in Section 1(e) thereof. Thereafter, amounts payable hereunder shall
be paid first from the assets of such Trust and the income thereon. To the extent that the assets of the Trust and the income thereon
are insufficient, the Corporation or any successor of the Corporation shall pay Executive the amount due hereunder.

    	-4- 

     

    

8.          NOTICES.
Any notice required or permitted to be given under this Agreement will, to be effective hereunder, be given to the Corporation,
in the case of notices given by the Executive, and will, to be effective hereunder, be given by the Corporation, in the case of
notices given to the Executive. Any such notice will be deemed properly given if in writing and if mailed by registered or certified
mail, postage prepaid with return receipt requested, to the last known residence address of the Executive, in the case of notices
to the Executive, and to the principal office of the Corporation, in the case of notice to the Corporation.

9.          WAIVER.
No provision of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed
to in writing and signed by the Executive and an executive officer of the Corporation designated for such purpose by the Board
of Directors of the Corporation. No waiver by any party hereto at any time of any breach by another party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such other party will be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time.

10.          ASSIGNMENT.
This Agreement is not assignable by any party hereto, except by the Corporation and the Bank to any successor in interest to the
respective business of the Corporation and the Bank.

11.          ENTIRE AGREEMENT.
This Agreement contains the entire agreement of the parties relating to the subject matter hereof and supersedes any prior agreement
of the parties.

12.          SUCCESSORS;
BINDING EFFECT.

(a)          Successors.
The Corporation will require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all
or substantially all of the business and/or assets of the Corporation and/or the Bank to expressly assume and agree to perform
this Agreement (or cause it to be performed) in the same manner and to the same extent that the Corporation, the Bank or any affiliated
company of either would be required to perform it if no such succession had taken place. Failure by the Corporation to obtain such
assumption and agreement prior to the effectiveness of any such succession shall constitute a material breach of this Agreement.
As used in this Agreement, the “Corporation” and the “Bank” means the Corporation and the Bank as hereinbefore
defined and any successor to the business and/or assets of the Corporation and/or the Bank as aforesaid which assumes and agrees
to perform this Agreement by operation of law, or otherwise.

(b)          Binding
Effect. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives,
executors, administrators, heirs, distributes, devisees, and legatees. If the Executive should die while any amount is payable
to the Executive under this Agreement if the Executive had continued to live, all such amounts, unless otherwise provided herein,
will be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee, or other designee, or, if
there is no such person, to the Executive’s estate.

13.          VALIDITY.
The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which will remain in full force and effect.

    	-5- 

     

    

14.          APPLICABLE
LAW. Except to the extent preempted by federal law, this Agreement shall be governed by and construed in accordance with
the domestic internal law of the Commonwealth of Pennsylvania.

15.          REFERENCE
TO ENTITIES. All references to the Corporation shall be deemed to include references to the Bank, or any affiliate of either,
as appropriate in the relevant context, and vice versa; provided, however, that this paragraph shall not be construed
in the manner that results in a determination that a transaction constitutes a Change in Control unless such transaction is literally
described in the definition of such term.

 

IN WITNESS WHEREOF,
the parties, each intending to be legally bound, have executed the Agreement as of this date, month and year first above written.

 

	ATTEST:	 	CODORUS VALLEY BANCORP, INC.	 
	 	 	 	 	 
	/s/ Harry R. Swift	 	By:  	/s/ Rodney L. Krebs	 
	Secretary	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	ATTEST:	 	PEOPLESBANK, 

A CODORUS VALLEY COMPANY	 
	 	 	 	 	 
	/s/ Barbara J. Myers	 	By:	/s/ Rodney L. Krebs	 
	Secretary	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	WITNESS:	 	 	 	 
	/s/ Matthew A. Clemens	 	 	/s/ Larry J. Miller	 
	 	 	 	Larry J. Miller	 

 

 

    	-6-

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