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                                  Exhibit 10.2

                         LEADERSHIP CASH INCENTIVE PLAN
                    EFFECTIVE FISCAL YEAR 2007 AND THEREAFTER

PURPOSE

The Boards of Directors (collectively the "Board") of PeoplesBank, A Codorus
Valley Company and Codorus Valley Bancorp, Inc, (collectively the "Company"),
have approved a Leadership Cash Incentive Plan (the "Plan"). The purpose of this
Plan is to sustain management's focus on the Company's fulfillment of its
strategic long range plan, and to encourage attainment of the Company's annual
performance goals. The Leadership Cash Incentive Plan supports a number of
objectives which are important to the continued success of the Company, as
follows:

     -    To attract, retain and reward well-qualified leadership staff;

     -    To provide a competitive compensation package for Plan participants;
          and

     -    To motivate key leaders through a combination of appropriate
          challenges and financial incentives for Company performance that meets
          or exceeds expectations.

The primary purpose of the Plan is to provide competitive incentive
opportunities directly related to the Company's annual financial performance,
the execution of the Company's Strategic Plan and individual leader's
performance. The Company's financial performance goals and Strategic Plan will
be established annually and approved by the Board of Directors.

PLAN ADMINISTRATION

The Plan is administered by the Compensation Committee of the Company's Board of
Directors, the President & Chief Executive Officer and the Senior Vice President
of Human Resources.

     A.   Responsibilities of the Senior Vice President, Human Resources

          The Senior Vice President of Human Resources will be responsible for
          the daily administration of the Plan, and will provide requested
          information to the President & Chief Executive Officer and to the
          Compensation Committee.

     B.   Responsibilities of the President & Chief Executive Officer

          The President & Chief Executive Officer will provide recommendations
          to the Compensation Committee regarding Plan participants, Company and
          individual performance and recommended incentive awards. The President
          & Chief Executive Officer's responsibilities include monitoring the
          effectiveness of the Plan and providing recommendations to the
          Compensation Committee regarding modification to the Plan.

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          The President & Chief Executive Officer will not participate in any
          discussion relating to any incentive awards for himself under this
          Plan.

     C.   Responsibility of the Compensation Committee

          The Compensation Committee will review and act on recommendations from
          the President & Chief Executive Officer and the Senior Vice President
          of Human Resources.

ELIGIBILITY

          Individuals eligible to participate in the Plan are those who, in the
          opinion of the President & Chief Executive Officer and as confirmed by
          the Compensation Committee, hold positions which have the capacity to
          significantly impact Company performance. Participation is recommended
          by the President & Chief Executive Officer subject to approval by the
          Compensation Committee. Eligibility will be reviewed annually to
          assure appropriateness.

INCENTIVE COMPENSATION OPPORTUNITY

          Certain positions have a greater and more direct impact than others on
          the achievement of Company performance. Those differences are
          recognized by varying the incentive opportunity, expressed as a
          percentage of the Incentive Pool.

CONDITIONS FOR INCENTIVE COMPENSATION

          The following conditions must be satisfied for incentives to be paid:

                    -    Most recent CAMELS rating of 1 or 2

                    -    Most recent CRA rating of "Satisfactory" or better

                    -    Capital leverage ratio of greater than 7%

                    -    Total risk based capital ratio of 10% or better

          In addition, in order for the individual to be considered for
          incentive compensation, the following criteria will be evaluated for
          each group as outlined below:

               GROUP A:

                    -    Completion of the Company's Strategic Plan   70%

                    -    Unit/Function goals and performance           0%

                    -    Individual Performance (subjective)          30%

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               GROUP B:

                    -    Completion of the Company's Strategic Plan   60%

                    -    Unit/Function goals and performance          30%

                    -    Individual Performance (subjective)          10%

               GROUP C:

                    -    Completion of the Company's Strategic Plan   30%

                    -    Unit/Function goals and performance          60%

                    -    Individual Performance (subjective)          10%

               GROUP D:

                    -    Completion of the Company's Strategic Plan   50%

                    -    Unit/Function goals and performance          40%

                    -    Individual Performance (subjective)          10%

FORMULA FOR INCENTIVE AWARDS

     A.   INCENTIVE POOL:

          The incentive pool will be formed by allocating 30% of the Company's
          net income that is in excess of 90% of budgeted net income.

     B.   ALLOCATION OF TOTAL INCENTIVE:

          The Incentive Pool will be allocated among groups of participants
          using the following percentages for each participant within the group:

          Group A   12.5% - 22.5%
          Group B    7.5% - 15%
          Group C      5% - 12.5%
          Group D      0% - 10%

     C.   While the Compensation Committee reserves the right to grant cash
          incentives outside the ranges described above, in no event shall a
          participant receive cash compensation under variable compensation and
          incentive Plans, collectively, in excess of 35% of their respective
          annual base compensation.

     D.   INCENTIVE PAYMENT:

          -    The individual will receive 100% of the incentive award in the
               form of cash under this plan.

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AWARD DETERMINATION

At the conclusion of each year, the President & Chief Executive Officer, after
considering the Company's performance against its financial and strategic
objectives, shall recommend to the Compensation Committee the Incentive Pool and
individual incentives to be paid for that plan year.

An individual must be in good standing to be eligible for any incentive payout
as determined by the Compensation Committee.

Unless otherwise directed by the Compensation Committee, payments under the Plan
shall be made as soon as possible after the Company's year-end audit, generally
by January 31st.

Individuals who terminate employment with the Company for any reason, other than
death, disability or retirement prior to the end of the plan year will not be
eligible for any incentives. If an individual ceases employment after the Plan
year-ends, but before the Compensation Committee approves the incentive payout,
the President & Chief Executive Officer will recommend to the Compensation
Committee whether the individual should receive their incentive.

TERMINATION OR AMENDMENT

The Plan, in whole or in part, may at any time or from time-to-time be amended,
suspended, or reinstated and may at any time be terminated by action of the
Compensation Committee. Until a determination of incentive payment has been made
by the Compensation Committee, no individual has a vested right to any incentive
under this Plan.

                                        4RUDDICK
CORPORATION

CASH
INCENTIVE PLAN

 1.         Purpose.

The purpose of this Plan is to provide executive
officers of Ruddick Corporation and its Affiliates with incentive compensation
based upon the level of achievement of financial, business and other performance
criteria.  This Plan is intended to permit the payment of bonuses under various
plans or arrangements that may qualify as performance-based compensation under
Code Section 162(m) and related regulations.

2.         Definitions.

(a)    "Affiliate" means a wholly
owned subsidiary of Ruddick Corporation or any entity that, directly or
indirectly, is controlled by Ruddick Corporation.

(b)    "Board" means the Board of
Directors of Ruddick Corporation.

(c)    "Bonus" means a cash
payment made pursuant to this Plan with respect to a particular Performance
Period, determined pursuant to Section 8 below.

(d)    "Bonus Formula" means as to
any Performance Period, the formula established by the Committee pursuant to
Section 6 of this Plan in order to determine the Bonus amounts, if any, to be
paid to Participants based upon the level of achievement of targeted goals for
the selected Performance Measures.  The formula may differ from Participant to
Participant or business group to business group.  The Bonus Formula shall be of
such a nature that an objective third party having knowledge of all the
relevant facts could determine whether targeted goals for the Performance
Measures have been achieved.

(e)    "Code" means the Internal
Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

(f)    "Committee" means the
Compensation Committee of the Board consisting of at least two directors who
shall qualify as "outside directors" within the meaning of Code Section 162(m).

(g)    "Fiscal Year" means the fiscal
year of Ruddick Corporation or its Affiliates.  

(h)    "Participant" means an
employee of Ruddick Corporation or its Affiliates who is considered an
executive officer of Ruddick Corporation or its Affiliates within the meaning
of the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

(i)     "Performance-Based
Compensation" means compensation that qualifies as "performance-based
compensation" within the meaning of Code Section 162(m) and related
regulations.

(j)     "Performance Measure"
means any one or more of the performance criteria listed below.  The
performance criteria may be applied either individually, alternatively, or in
any combination and measured on an absolute basis or relative to a
pre-established target as may be specified and approved by the Committee.  The
performance criteria may include: return on invested capital, net operating
profit (before or after tax), operating profit margin, gross margin, operating
profit, earnings before

 

 income taxes, earnings (which may include earnings
before interest and taxes and net earnings, and may be determined in accordance
with United States Generally Accepted Accounting Principles ("GAAP") or
adjusted to include or exclude any or all items), earnings per share (on a GAAP
or non-GAAP basis), growth in any of the foregoing measures, stock price,
return on equity or average shareholders' equity, total shareholder return,
growth in shareholder value relative to the moving average of the S&P 500
Index or another index, return on capital, return on assets or net assets,
return on investment, economic value added, market shares, overhead or other
expense reduction, credit rating, strategic plan development and
implementation, succession plan development and implementation, improvement in
workforce, diversity, customer indicators, improvements in productivity,
attainment of objective operating goals and employee metrics.

(k)    "Performance Period" means
any Fiscal Year or such other period as determined by the Committee.

(l)     "Plan" means this Ruddick
Corporation Cash Incentive Plan.

(m)   "Predetermination Date"
means, for a Performance Period, (i) the earlier of 90 days after commencement
of the Performance Period or the expiration of 25% of the Performance Period,
provided that the achievement of targeted goals under the selected Performance
Measures for the Performance Period is substantially uncertain at such time; or
(ii) such other date on which a performance goal is considered to be
pre-established pursuant to Code Section 162(m).

3.         Eligibility.

The individuals eligible to participate in this Plan
for a given Performance Period shall be limited to Participants as defined
herein.  

4.         Plan
Administration.

(a)    The Committee shall be responsible
for the requirements for qualifying compensation as Performance-Based
Compensation.  Subject to the limitations on Committee discretion imposed under
Code Section 162(m), including limits on discretionary bonus increases, the
Committee shall have such powers as may be necessary to discharge its duties
hereunder.  The Committee shall be responsible for the general administration
and interpretation of this Plan and for carrying out its provisions, including
the authority to construe and interpret the terms of this Plan, determine the manner
and time of payment of any Bonuses, prescribe forms and procedures for purposes
of Plan participation and distribution of Bonuses and adopt rules, regulations
and to take such action as it deems necessary or desirable for the proper
administration of this Plan.  The Committee may delegate its administrative
tasks to Ruddick Corporation employees or others as appropriate for proper
administration of this Plan.

(b)    Any rule or decision by the
Committee or its delegate(s) that is not inconsistent with the provisions of
this Plan shall be conclusive and binding on all persons, and shall be given
the maximum deference permitted by law.

5.         Term.

            This
Plan shall be effective as of October 2, 2006.  Notwithstanding the
foregoing, this Plan shall terminate unless it is approved at the next Ruddick
Corporation annual shareholders' meeting following the date that the Board
adopts this Plan.  Once approved by Ruddick Corporation's shareholders, this
Plan shall continue until the earlier of (i) a termination under Section 9 of
this Plan, (ii) the date any

                                                                                              
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 shareholder approval requirement under Code
Section 162(m) ceases to be met or (iii) the date that is five years after the
February 15, 2007 shareholder meeting.  

6.         Bonuses.

Prior to the Predetermination Date for a Performance
Period, the Committee shall designate and approve in writing, the following:

(a)    Performance Period;

(b)    Positions or names of employees
who will be Participants for the Performance Period;

(c)    Targeted goals for selected
Performance Measures during the Performance Period; and

(d)    Applicable Bonus Formula for each
Participant, which may be for an individual Participant or a group of
Participants.

7.         Determination
of Amount of Bonus.

(a)    Calculation.  After the end
of each Performance Period, the Committee shall certify in writing (to the
extent required under Code Section 162(m)) the extent to which the targeted
goals for the Performance Measures applicable to each Participant for the
Performance Period were achieved or exceeded.  The Bonus for each Participant
shall be determined by applying the Bonus Formula to the level of actual
performance that has been certified by the Committee.  Notwithstanding any
contrary provision of this Plan, the Committee, in its sole discretion, may eliminate
or reduce the Bonus payable to any Participant below that which otherwise would
be payable under the Bonus Formula.  The aggregate Bonus(es) payable to any
Participant during any Fiscal Year shall not exceed $1,500,000.

        The Committee may appropriately
adjust any evaluation of performance under a Performance Measure to exclude any
of the following events that occurs during a Performance Period:  (A) the
effects of currency fluctuations, (B) any or all items that are excluded from
the calculation of earnings as reflected in any Ruddick Corporation press
release and Form 8-K filing relating to an earnings announcement, (C) asset
write-downs, (D) litigation or claim judgments or settlements, (E) the effect
of changes in tax law, accounting principles or other such laws or provisions
affecting reported results, (F) accruals for reorganization and restructuring
programs, and (G) any other extraordinary or non-operational items.

(b)    Right to Receive Payment. 
Each Bonus under this Plan shall be paid solely from general assets of Ruddick
Corporation and its Affiliates.  This Plan is unfunded and unsecured; nothing
in this Plan shall be construed to create a trust or to establish or evidence
any Participant's claim of any right to payment of a Bonus other than as an
unsecured general creditor with respect to any payment to which he or she may
be entitled.

8.         Payment
of Bonuses.

(a)    Timing of Distributions. 
Ruddick Corporation and its Affiliates shall distribute amounts payable to
Participants as soon as is administratively practicable following the
determination and written certification of the Committee for a Performance
Period, but in no event later than two and one-half months after the end of the
calendar year in which the Performance Period ends, except to the extent a
Participant has made a timely election to defer the payment of all or any
portion of such

                                                                                 
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 Bonus under the Ruddick Corporation Flexible Deferral Plan or
deferred compensation plan or arrangement established and approved by Ruddick
Corporation.

(b)    Payment.  The payment of a
Bonus, if any (as determined by the Committee at the end of the Performance
Period), with respect to a specific Performance Period requires that the
employee be an active employee on Ruddick Corporation's or an Affiliate's
payroll on the last day of each applicable Performance Period and at the time
the payment is made, unless the Participant's employment was earlier terminated
due to early, normal or late retirement under the terms of the Ruddick
Corporation pension or similar retirement plan.

(c)    Code Section 409A.  To the
extent that any Bonus under the Plan is subject to Code Section 409A, the terms
and administration of such Bonus shall comply with the provisions of such
Section, applicable IRS guidance and good faith reasonable interpretations
thereof, and, to the extent necessary to achieve compliance, shall be modified,
replaced, or terminated at the discretion of the Committee.

9.         Amendment
and Termination.

The Committee may amend, modify, suspend or terminate
this Plan, in whole or in part, at any time, including the adoption of
amendments deemed necessary or desirable to correct any defect or to supply
omitted data or to reconcile any inconsistency in this Plan or in any Bonus
granted hereunder; provided, however, that no amendment, alteration, suspension
or discontinuation shall be made which would (i) increase the amount of
compensation payable pursuant to such Bonus, or (ii) cause compensation that
is, or may become, payable hereunder to fail to qualify as Performance-Based
Compensation.  Notwithstanding the foregoing, the Committee may amend, modify,
suspend or terminate this Plan if any such action is required by law.  To the
extent required under applicable law, including Code Section 162(m), Plan
amendments shall be subject to shareholder approval.  At no time before the
actual distribution of funds to Participants under this Plan shall any
Participant accrue any vested interest or right whatsoever under this Plan
except as otherwise stated in this Plan.

10.       Withholding.

Distributions pursuant to this Plan shall be subject
to all applicable taxes and contributions required by law to be withheld in
accordance with procedures established by Ruddick Corporation.

11.       No
Additional Participant Rights.

The selection of an individual for participation in
this Plan shall not give such Participant any right to be retained in the
employ of Ruddick Corporation or any of its Affiliates, and the right of
Ruddick Corporation and any such Affiliate to dismiss such Participant or to
terminate any arrangement pursuant to which any such Participant provides
services to Ruddick Corporation or its Affiliates, with or without cause, is
specifically reserved.  No person shall have claim to a Bonus under this Plan,
except as otherwise provided for herein, or to continued participation under
this Plan.  There is no obligation for uniformity of treatment of Participants
under this Plan.  The benefits provided for Participants under this Plan shall
be in addition to and shall in no way preclude other forms of compensation to
or in respect of such Participants.  It is expressly agreed and understood that
the employment of a Participant is terminable at the will of either party and,
if such Participant is a party to an employment contract with Ruddick
Corporation or one of its Affiliates, in accordance with the terms and
conditions of the Participant's employment agreement.

                                                                                       
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 12.       Successors.

All obligations of Ruddick Corporation or its
Affiliates under this Plan, with respect to awards granted hereunder, shall be
binding on any successor to Ruddick Corporation, whether the existence of such
successor is the result of a direct or indirect purchase, merger,
consolidation, or otherwise, of all or substantially all of the business or
assets of Ruddick Corporation.

13.       Nonassignment.

The rights of a Participant under this Plan shall not
be assignable or transferable by the Participant except by will or the laws of
descent and distribution.

14.       Severability.

If any portion of this Plan is deemed to be in
conflict with applicable law, that portion of the Plan, and that portion only,
will be deemed void under applicable law.  All other provisions of the Plan
will remain in effect.  Furthermore, if any provision of this Plan would cause
Bonuses not to constitute Performance-Based Compensation, that provision shall
be severed from, and shall be deemed not to be a part of, the Plan, but the
other provisions hereof shall remain in full force and effect.

15.       Governing
Law.

This Plan shall be governed and construed under the
laws of the State of North Carolina.

IN WITNESS WHEREOF, Ruddick Corporation has caused this Plan to be executed this 20th day
of February, 2007, effective as of October 2, 2006.

RUDDICK CORPORATION

By: /s/ John B. Woodlief                                       

Title: Vice President - Finance and                        

         Chief
Financial Officer                                   

 

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