Document:

EXHIBIT 10.15

 

PEOPLESBANK, A CODORUS VALLEY COMPANY

OFFICERS GROUP TERM REPLACEMENT PLAN

Pursuant to due authorization by its Board, the undersigned duly authorized officer of 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”), did constitute, establish and adopt the following Split Dollar Insurance Plan (the “Plan”), effective January 1, 2009.

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

Article 1

Definitions

Whenever used in this Plan, the following terms shall have the meanings specified:

	
1.1

	
“Bank’s Interest” means the benefit set forth in Section 3.1.

	
1.2

	
“Beneficiary” means each designated person, or the estate of a deceased Participant, entitled to benefits, if any, upon the death of a Participant.

 

	
1.3

	“Beneficiary Designation Form” means the form established from time to time by the Plan Administrator that a Participant completes, signs and returns to the Plan Administrator to designate one or more Beneficiaries.

 

	
1.4

	
“Board” means the Board of Directors of the Bank as from time to time constituted.

	
1.5

	
“Code” means the Internal Revenue Code of 1986, as amended.

	
1.6

	
“Election Form” means the form required by the Plan Administrator of an eligible Employee to indicate acceptance of participation in this Plan.

	
1.7

	
“Employee” means an active employee of the Bank.

	
1.8

	
“Insured” means the individual Participant whose life is insured.

	
1.9

	
“Insurer” means the insurance company issuing the Policy on the life of the Insured.

	
1.10

	
“Net Death Proceeds” means the total death proceeds of the Participant’s Policy or Policies minus the greater of (i) cash surrender value or (ii) the aggregate premiums paid.

	
1.11

	
“Participant” means an Employee (i) who is selected to participate in the Plan, (ii) who 

 

    	  

    	 

    
 

 

	
 

	
elects to participate in the Plan, (iii) who signs an Election Form and a Beneficiary Designation Form, (iv) whose signed Election Form and Beneficiary Designation Form are accepted by the Plan Administrator, (v) who commences participation in the Plan, and (vi) whose Participation has not terminated.

 

	
1.12

	
“Participant’s Interest” means the benefit set forth in Section 3.2.1.

	
1.13

	
“Plan Administrator” means the plan administrator described in Article 12.

	
1.14

	
“Policy” or “Policies” means the individual life insurance policy or policies adopted by the Plan Administrator for purposes of insuring a Participant’s life under this Plan.

	
1.15

	
“Separation from Service” means the Participant ceasing to be employed by the Bank for any reason other than death.

	
1.16

	
“Three Times Base Annual Salary” means the current base annual salary of the Participant’s career at the Bank multiplied by a factor of three (3).

Article 2

Participation

	
2.1

	
Selection by Plan Administrator.  Participation in the Plan shall be limited to those Employees of the Bank selected by the Plan Administrator, in its sole discretion, to participate in the Plan.

	
  

	 

	
2.2

	
Enrollment Requirements.  As a condition to participation, each selected Employee shall complete, execute and return to the Plan Administrator (i) an Election Form, and (ii) a Beneficiary Designation Form.  In addition, the Plan Administrator shall establish from time to time such other enrollment requirements as it determines in its sole discretion are necessary.

	
2.3

	
Eligibility; Commencement of Participation.  Provided an Employee selected to participate in the Plan has met all enrollment requirements set forth in this Plan and required by the Plan Administrator, and provided that the Policy or Policies on a such Employee have been issued by the Insurer(s), that Employee will become a Participant, be covered by the Plan and will be eligible to receive benefits at the time and in the manner provided hereunder, subject to the provisions of the Plan.  A Participant’s participation is limited to only issued Policies where the Participant is the Insured.

	
2.4

	
Termination of Participation.  A Participant’s rights under this Plan shall automatically cease and his or her participation in this Plan shall automatically terminate if the Plan or any Participant’s rights under the Plan are terminated in accordance with Article 11 or if the Participant notifies the Bank in writing that the Participant wishes to withdrawal participation under the Plan. In the event that the Bank decides to maintain the Policy after the Participant’s termination of participation in the Plan, the Bank shall be the direct beneficiary of the entire death proceeds of the Policy.

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Article 3

Policy Ownership/Interests

	
3.1

	
Bank’s Interest.  The Bank shall own the Policies and shall have the right to exercise all incidents of ownership and may terminate a Policy without the consent of the Insured.  The Bank shall be the beneficiary of the remaining death proceeds of the Policies after the Participant’s Interest is determined according to Section 3.2.

	
3.2

	
Participant’s Interest.  The Participant, or the Participant’s assignee, shall have the right to designate the Beneficiary of an amount of death proceeds as specified in Section 3.2.1. The Participant shall also have the right to elect and change settlement options with respect to the Participant’s Interest by providing written notice to the Bank and the Insurer.

	
  

	
3.2.1

	
Death Prior to Separation from Service.  If the Participant dies prior to Separation from Service, the Beneficiary shall be entitled to a benefit equal to the lesser of (i) the amount set forth on the Election Form or (ii) Net Death Proceeds.

	
  

	
3.2.2

	
Death After Separation from Service.  If the Participant dies after Separation from Service, the Beneficiary shall not be entitled to a benefit under this Plan.

Article 4

Premiums And Imputed Income

	
4.1

	
Premium Payment.  The Bank shall pay all premiums due on all Policies.

	
4.2

	
Economic Benefit.  The Plan Administrator shall determine the economic benefit attributable to any Participant based on the life insurance premium factor for the Participant’s age multiplied by the aggregate death benefit payable to the Participant’s Beneficiary.  The “life insurance premium factor” is the minimum amount required to be imputed under IRS Reg. §1.61-22(d)(3)(ii) or any subsequent applicable authority.

	
4.3

	
Imputed Income.  The Bank shall impute the economic benefit to the Participant on an annual basis, by adding the economic benefit to the Participant’s W-2, or if applicable, Form 1099.

Article 5

Comparable Coverage

	
5.1

	
Insurance Policies.  The Bank may provide such benefit through the Policies purchased at the commencement of this Plan, or, if later, the Participant’s commencement of participation in the Plan, or may provide comparable insurance coverage to the Participant through whatever means the Bank deems appropriate.  If the Participant waives or forfeits his or her right to the insurance benefit, the Bank shall choose to cancel the Policy or Policies on the Participant, or may continue such coverage and become the 

 

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direct beneficiary of the entire death proceeds.

 

	
5.2

	
Offer to Purchase.  If the Bank discontinues a Policy on a Participant, the Bank shall give the Participant at least thirty (30) days to purchase such Policy.  The purchase price shall be the fair market value of the Policy, as determined under Treasury Reg. §1.61-22(g)(2) or any subsequent applicable authority.  Such notification shall be in writing.

	
  

	
Article 6

	
  

	
General Limitations

	
6.1

	
Removal.  Notwithstanding any provision of this Plan to the contrary, the Participant’s rights in the Plan shall terminate if the Participant is subject to a final removal or prohibition order issued by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act.

	
6.2

	
Suicide or Misstatement.  No benefits shall be payable if the Participant commits suicide within two (2) years after the date of entry into the Plan, or if the insurance company denies coverage (i) for material misstatements of fact made by the Participant on any application for life insurance purchased by the Bank, or (ii) for any other reason; provided, however that the Bank shall evaluate the reason for the denial, and upon advice of legal counsel and in its sole discretion, consider judicially challenging any denial.

	
  

	
Article 7

	
  

	
Beneficiaries

	
7.1

	
Beneficiary. The Participant shall have the right, at any time, to designate a Beneficiary to receive any benefits payable under the Plan upon the death of the Participant.  The Beneficiary designated under this Plan may be the same as or different from the beneficiary designated under any other Plan of the Bank in which the Participant participates.

	
7.2

	
Beneficiary Designation; Change.  The Participant shall designate a Beneficiary by completing and signing the Beneficiary Designation Form, and delivering it to the Bank or its designated agent.  The Participant’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Participant or if the Participant names a spouse as Beneficiary and the marriage is subsequently dissolved.  The Participant shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Bank’s rules and procedures, as in effect from time to time.  Upon the acceptance by the Bank of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be cancelled.  The Bank shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Bank prior to the Participant’s death.

 

	
7.3

	
Acknowledgment.  No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Bank or its 

 

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designated agent.

 

	
7.4

	
No Beneficiary Designation.  If the Participant dies without a valid designation of beneficiary, or if all designated Beneficiaries predecease the Participant, then the Participant’s surviving spouse shall be the designated Beneficiary.  If the Participant has no surviving spouse, the benefits shall be made payable to the Participant’s estate.

	
7.5

	
Facility of Payment.  If the Bank determines in its discretion that a benefit is to be paid to a minor, to a person declared incompetent, or to a person incapable of handling the disposition of that person’s property, the Bank may direct payment of such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person.  The Bank may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit.  Any payment of a benefit shall be a payment for the account of the Participant and the Participant’s Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan for such payment amount.

Article 8

Assignment

Any Participant may assign without consideration all of such Participant’s Interest in this Plan to any person, entity or trust.  In the event a Participant shall transfer all of such Participant’s Interest, then all of that Participant’s Interest in this Plan shall be vested in his or her transferee, subject to such transferee executing agreements binding them to the provisions of this Plan, who shall be substituted as a party hereunder, and that Participant shall have no further interest in this Plan.

 

Article 9

Insurer

 

The Insurer shall be bound only by the terms of its given Policy.  The Insurer shall not be bound by or deemed to have notice of the provisions of this Plan.  The Insurer shall have the right to rely on the Plan Administrator’s representations with regard to any definitions, interpretations or Policy interests as specified under this Plan.

Article 10

Claims And Review Procedure

	
10.1

	
Claims Procedure.  A Participant or Beneficiary (“claimant”) who has not received benefits under the Plan that he or she believes should be paid shall make a claim for such benefits as follows:

	
  

	
10.1.1

	
Initiation – Written Claim.  The claimant initiates a claim by submitting to the Plan Administrator a written claim for the benefits.  If such a claim relates to the contents of a notice received by the claimant, the claim must be made within sixty 

 

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(60) days after such notice was received by the claimant.  All other claims must be made within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred.  The claim must state with particularity the determination desired by the claimant.

 

	
  

	
10.1.2

	
Timing of Plan Administrator Response.  The Plan Administrator shall respond to such claimant within ninety (90) days after receiving the claim.  If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional ninety (90) days by notifying the claimant in writing, prior to the end of the initial ninety (90) day period, that an additional period is required.  The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision.

	
  

	
10.1.3

	
Notice of Decision.  If the Plan Administrator denies part or the entire claim, the Plan Administrator shall notify the claimant in writing of such denial.  The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant.  The notification shall set forth:

	
  

	
(a)

	
The specific reasons for the denial;

	
  

	
(b)

	
A reference to the specific provisions of the Plan on which the denial is based;

	
  

	
(c)

	
A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed;

	
  

	
(d)

	
An explanation of the Plan’s review procedures and the time limits applicable to such procedures; and

	
  

	
(e)

	
A statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.

	
10.2

	
Review Procedure.  If the Plan Administrator denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial, as follows:

	
  

	
10.2.1

	
Initiation – Written Request.  To initiate the review, the claimant, within sixty (60) days after receiving the Plan Administrator’s notice of denial, must file with the Plan Administrator a written request for review.

	
  

	
10.2.2

	
Additional Submissions – Information Access.  The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim.  The Plan Administrator shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits.

	
  

	
10.2.3

	
Considerations on Review.  In considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating 

 

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to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

 

	
  

	
10.2.4

	
Timing of Plan Administrator’s Response.  The Plan Administrator shall respond in writing to such claimant within sixty (60) days after receiving the request for review.  If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional sixty (60) days by notifying the claimant in writing, prior to the end of the initial sixty (60) day period, that an additional period is required.  The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision.

	
  

	
10.2.5

	
Notice of Decision.  The Plan Administrator shall notify the claimant in writing of its decision on review.  The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant.  The notification shall set forth:

	
  

	
(a)

	
The specific reasons for the denial;

	
  

	
(b)

	
A reference to the specific provisions of the Plan on which the denial is based;

	
  

	
(c)

	
A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits; and

	
  

	
(d)

	
A statement of the claimant’s right to bring a civil action under ERISA Section 502(a).

Article 11

Amendments And Termination

The Bank may amend or terminate the Plan at any time, or may amend or terminate a Participant’s rights under the Plan at any time prior to Separation from Service, by providing written notice of such to the Participant.  In the event that the Bank decides to maintain the Policy after the Participant’s termination of participation in the Plan, the Bank shall be the direct beneficiary of the entire death proceeds of the Policy.  A Participant may, in the Participant’s sole and absolute discretion, waive his or her rights under the Plan at any time.  Any waiver permitted under this Article 11 shall be in writing and delivered to the Board.

 

Article 12

Administration

	
12.1

	
Plan Administrator Duties.  This Plan shall be administered by a Plan Administrator which shall consist of the Board, or such committee or persons as the Board may choose. The Plan Administrator shall also have the discretion and authority to (i) make, amend, 

 

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interpret and enforce all appropriate rules and regulations for the administration of this Plan and (ii) decide or resolve any and all ques­tions including interpretations of this Plan, as may arise in connection with the Plan.

 

	
12.2

	
Agents.  In the administration of this Plan, the Plan Administrator may employ agents and delegate to them such administrative duties as it sees fit, (including acting through a duly appointed representative), and may from time to time consult with counsel who may be counsel to the Bank.

	
12.3

	
Binding Effect of Decisions.  The decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Plan.

	
12.4

	
Indemnity of Plan Administrator.  The Bank shall indemnify and hold harmless the members of the Plan Administrator against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by the Plan Administrator or any of its members.

	
12.5

	
Information.  To enable the Plan Administrator to perform its functions, the Bank shall supply full and timely information to the Plan Administrator on all matters relating to the Separation from Service or death of its Participants, and such other pertinent information as the Plan Administrator may reasonably require.

Article 13

Miscellaneous

	
13.1

	
Binding Effect.  This Plan shall bind each Participant and the Bank, their beneficiaries, survivors, executors, administrators and transferees and any Beneficiary.

	
13.2

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

	
13.3

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

	
13.4

	
Reorganization.  The Bank shall not merge or consolidate into or with another company, or reorganize, or sell substantially all of its assets to another company, firm or person unless such succeeding or continuing company, firm or person agrees to assume and discharge the obligations of the Bank under this Plan.  Upon the occurrence of such event, the term “Bank” as used in this Plan shall be deemed to refer to the successor or survivor 

 

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company.

 

	
13.5

	
Notice.  Any notice or filing required or permitted to be given to the Plan Administrator under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:

	 	
PeoplesBank, A Codorus Valley Company

	 	
105 Leader Heights Road

	 	
York, Pennsylvania 17403

	 	  

 

Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or the receipt for registration or certification.

 

Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Participant.

	
13.6

	
Entire Agreement.  This Plan, along with a Participant’s Election Form, Beneficiary Designation Form and any agreement in writing between the Bank and any Participant, constitute the entire agreement between the Bank and the Participant as to the subject matter hereof.  No rights are granted to the Participant under this Plan other than those specifically set forth herein.

 

IN WITNESS WHEREOF, the Bank and Corporation adopt this Plan as of the date indicated above.

	 	 	 	 
	PeoplesBank, a Codorus Valley Company	 
	 	 	 
	By	 	 	 
	 	 	 
	Title	 	 
	 	 	 
	Codorus Valley Bancorp, Inc.	 
	 	 	 
	By	 	 	 
	 	 	 
	Title	 	 

 

    	8EXHIBIT 10.16

 

PEOPLESBANK, A CODORUS VALLEY COMPANY

DIRECTOR GROUP TERM REPLACEMENT PLAN

 

THIS PLAN, hereby made and entered into this 1st day of December, 1998, by and between PEOPLESBANK, A CODORUS VALLEY COMPANY, a Pennsylvania state bank located in York, Pennsylvania (the “Company”), CODORUS VALLEY BANCORP,INC. (the “Corporation”), and _______________________ (the “Participant”) selected to participate in this Plan.

INTRODUCTION

To encourage the individual to remain a director of the Company, the Company is willing to divide the death proceeds of a life insurance policy on the Director’s life. The Company will pay life insurance premiums from its general assets. 

Article 1

General Definitions

The following terms shall have the meanings specified:

1.1       “Company” means PeoplesBank, A Codorus Valley Company. 

1.2  “Corporation” means Codorus Valley Bancorp, Inc...

1.3        “Participant” means a member of the Board of Directors of the Company. 

1.4  “Insurer” means the insurance company issuing the life insurance policy or policies on the life of the insured.

1.5  “Policy” or “Policies” means the individual insurance policy (or policies) issued by the Insurer for purposes of insuring a Participant’s life under this Plan.

1.6  “Insured” means the individual Director/Participant whose life is insured.

1.7       “Normal Retirement Age” means the earlier of (1) the Participant attaining the age of 70, or (2) the Participant’s age and Years of Service, when added together, totaling the sum of 75 or more.

1.8  “Termination of Service” means the Plan Participant ceasing to be a member of the Company’s Board of Directors for any reason whatsoever, other than by reason of an approved leave of absence.

 

    	  

    	 

    
 

 

Article 2

Policy Ownership/Interests

2.1       Company Ownership. The Company is the sole owner of the Policies and shall have the right to exercise all incidents of ownership. The Company shall be the direct beneficiary of an amount of death proceeds equal to the greatest of (1) the cash surrender value of the policies; (2) the aggregate premiums paid on the Policies by the Company less any outstanding indebtedness to the Insurer; or (3) the amount in excess of $100,000; provided, however, that if the Company owns more than one policy on a Participant’s life, all such Policies shall be aggregated in calculating the amount set forth in this item (3).

2.2       Participant’s Interest. The Participant shall have the right to designate the beneficiary of any remaining death proceeds of the Policies. The Participant shall also have the right to elect and change settlement options that may be permitted. Provided, however, the Participant, the Participant’s transferee or the Participant’s beneficiary shall have no rights or interests in the Policies with respect to that portion of the death proceeds designated in this section 2.2 upon the Participant’s Termination of Service prior to Normal Retirement Age.

Article 3

Premiums

	
  

	
3.1       Premium Payment. The Company shall pay any premiums due on the Policies.

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

Article 4

Assignment

4.1       The Participant may assign without consideration all interests in his or her Policy or Policies and in this Plan to any person, entity or trust. In the event the Participant transfers all of his or her interest in the Policy or Policies, then all of the Participant’s interest in such Policies and in the Plan shall be vested in the his or her transferee, who shall be substituted as a party hereunder, and the Participant shall have no further interest in the Policies or in this Plan.

Article 5

Insurer

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

 

    	  

    	 

    
 

 

Article 6

Claims Procedure

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

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

Article 7

Amendments and Termination

7.1       Except as provided in paragraph 8.1 of Article 8 herein, the Company may amend or terminate this Plan at any time. Unless otherwise agreed to by the Company and the Participant, the Participant’s participation in this Plan will automatically terminate upon the Participant’s Termination of Service prior to Normal Retirement Age.

Article 8

Miscellaneous

8.1 Option to Purchase. Notwithstanding anything herein to the contrary, if the Company decides to sell, surrender or transfer ownership of the Policies while this Plan is in effect, the Company shall first give notice of such intention to the Participant or the Participant’s transferee and shall allow the Participant or the Participant’s transferee the option 

 

    	  

    	 

    
 

 

to purchase the Policies for a period of sixty (60) days from written notice of such intention. The purchase price shall be an amount equal to the greater of the cash surrender value of the Policies or the aggregate premiums paid on the Policies by the Company less any outstanding indebtedness to the Insurer. This provision shall not impair the right of the Company to terminate this Plan. If the Participant or the Participant’s transferee does not exercise the option to purchase, the Company may sell, surrender or transfer ownership of the Policies; provided, however, that if the Participant has attained the Normal Retirement Age, the Company must provide an insurance policy comparable to cover the benefit provided under this Plan. The Participant or the Participant’s transferee shall not have an option to purchase, and the Participant or the Participant’s transferee shall forfeit all rights under the Plan in the event the Participant is subject to a final removal or prohibition order issued by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act or by the Pennsylvania Department of Banking pursuant to state law.

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

8.3  No Guarantee of Service. This Plan is not a contract for director services. It does not give the Participant the right to remain a director of the Company, nor does it interfere with the Company’s right to remove the Participant. It also does not require the Participant to remain a director nor interfere with the Participant’s right to terminate his or her directorship at any time.

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

8.5      Reorganization. The Company shall not merge or consolidate into or with another company, or reorganize, or sell substantially all of its assets to another company, firm or person unless such succeeding or continuing company, firm or person agrees to assume and discharge the obligations of the Company.

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

8.7       Entire Agreement. This Plan constitutes the entire agreement between the Company and the Participant as to the subject matter hereof. No rights are granted to the Participant by virtue of this Plan other than those specifically set forth herein.

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

 

    	  

    	 

    
 

 

	 	
(a) 

	
Interpreting the provisions of the Plan;

	 	
(b) 

	
Establishing and revising the method of accounting for the Plan;

	 	
(c) 

	
Maintaining a record of benefit payments; and

	 	
(d) 

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

 

8.9       Named Fiduciary. For purposes of the Employee Retirement Income Security Act of 1974, if applicable, the Company shall be the named fiduciary and plan administrator under the Plan. The named fiduciary may delegate to others certain aspects of the management and operation responsibilities of the plan including the employment of advisors and the delegation of ministerial duties to qualified individuals.

 

    	  

    	 

    
 

 

IN WITNESS WHEREOF, the Company executes this Plan the day and year first above written.

	 	 	 	 	 
	 	COMPANY:	 
	 	 	 	 	 
	 	
PEOPLESBANK, A CODOROUS VALLEY CO.

	 
	 	 	 	 	 
	 	By	 	 	 
	 	 	 	 	 
	 	Title	 	 
	 	 	 	 	 
	 	
CORPORATION:

	 
	 	 	 	 	 
	 	
CODOROUS VALLEY BANCORP, INC.

	 
	 	 	 	 	 
	 	By	 	 	 
	 	 	 	 	 
	 	Title	 	 

 

    	  

    	 

    
 

 

SPLIT DOLLAR POLICY ENDORSEMENT

PEOPLESBANK, A CODORUS VALLEY COMPANY

DIRECTOR GROUP TERM REPLACEMENT PLAN

 

	Policy No. _____________	
Insured: 

Supplementing and amending the application of ________________________, 1998, to ________ ______________________________________ (“Insurer”), the applicant requests and directs that:

BENEFICIARIES

1.   PEOPLESBANK, A CODORUS VALLEY COMPANY, a Pennsylvania state bank located in York, Pennsylvania (the “Company”), shall be the direct beneficiary of death proceeds equal to the greatest of (1) the cash surrender value of the policy; (2) the aggregate premiums paid on the Policy by the Company less any outstanding indebtedness to the Insurer; or (3) the amount in excess of $100,000.

2.   The beneficiary of any remaining death proceeds shall be designated by the Insured or the Insured’s transferee, subject to the provisions of paragraph (5) below.

OWNERSHIP

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

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

5.        Notwithstanding the provisions of paragraph (4) above, the Insured or the Insured’s transferee shall have no rights or interests in the Policy with respect to that portion of the death proceeds designated in paragraph (2) of this endorsement if the Insured ceases to be a member of the Company’s Board of Directors for any reason whatsoever (other than by reason of a leave of absence which is approved by the Company), unless otherwise agreed to by the Company and the Insured.

 

    	  

    	 

    
 

 

MODIFICATION OF ASSIGNMENT PROVISIONS OF THE POLICY

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

 

OWNERS AUTHORITY

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

Any transferee’s rights shall be subject to this Endorsement.

Signed at ____________________, Pennsylvania, this _______ day of ______________, 1998.

COMPANY:

PEOPLESBANK, A CODORUS VALLEY COMPANY

	 	 	 	 
	By	 	 
	Its	 	 	 

 

CORPORATION:

CODORUS VALLEY BANCORP, INC.

	 	 	 	 
	By	 	 
	Its	 	 	 

 

The Insured accepts and agrees to the foregoing and, subject to the rights of the Owner as stated above, designates ____________________________________ as primary beneficiary and __________________________________ as secondary beneficiary of the portion of the proceeds described in (2) above.

Signed at ____________________, Pennsylvania, this ________ day of _____________, 1998.

THE INSURED:

 

	 	 

 

    	  

    	 

    
 

EXHIBIT A

PEOPLESBANK, A CODORUS VALLEY COMPANY

DIRECTOR GROUP TERM REPLACEMENT PLAN

ELECTION TO PARTICIPATE

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

 

Executed this 1st day of December, 1998. 

	 	 	 
	Witness	 	
Participant

 

    	  

    	 

    
 

 

EXHIBIT B

PEOPLESBANK, A CODORUS VALLEY COMPANY

DIRECTOR GROUP TERM REPLACEMENT PLAN

LIST OF PARTICIPANTS

	 	 	 	 	 	 	 	 	 	 	 
	 	
Participant’s Name

	 	 	 	
Insurer

	 	 	 	
Policy Number

	 
	  	 	
__________________________

	 	
________________

	
________________________

	 	
__________________________

	 	
________________

	
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__________________________

	 	
________________

	
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________________

	
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________________

	
________________________

	 	
__________________________

	 	
________________

	
________________________

	 	
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________________

	
________________________

	 	
__________________________

	 	
________________

	
________________________

	 	
__________________________

	 	
________________

	
________________________

	 	
__________________________

	 	
________________

	
________________________

	 	
__________________________

	 	
________________

	
________________________

	 	
__________________________

	 	
________________

	
________________________

	 	
__________________________

	 	
________________

	
________________________

	 	
__________________________

	 	
________________

	
________________________

	 	
________________________

	 	
________________

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