Document:

Unassociated Document

     

    Exhibit 10.2

     

    ADDENDUM
TO THE

    

    NORTH
PENN BANK AND NORTH PENN BANCORP, INC.

    FORM OF AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

     

    THIS
ADDENDUM (this “Addendum”) to the AMENDED AND RESTATED EMPLOYMENT AGREEMENT by
and among Thomas J.
Dziak (the “Executive”) and North Penn Bank (“Bank”) and North Penn
Bancorp, Inc. (“Bancorp”) dated January 4, 2008 (“Agreement”), is made by and
among the Executive, the Bank, Bancorp and Norwood Financial Corp. (“Norwood“)
as of December 14, 2010 (“Effective Date”).

     

    WHEREAS,
the Executive is currently employed by the Bank and Bancorp as Senior Vice
President, and is experienced in certain phases of the business of the Bank and
Bancorp; and

     

    WHEREAS,
Norwood contemplates acquiring Bancorp pursuant to the Agreement and Plan of
Merger (“Merger Agreement”) by and among the Bank, Bancorp, and Norwood, dated
December 14, 2010; and

    

    WHEREAS,
the parties desire to set forth certain modifications to the Agreement as set
forth in this Addendum prior to execution of the Merger Agreement, with this
Addendum to be effective as of the Effective Date.

    

    NOW,
THEREFORE, the parties hereto, intending to be legally bound do hereby agree,
that in exchange for the good and valuable consideration to be paid by Norwood,
the Bank and Bancorp, this Addendum by and among the Bank, Bancorp, Norwood and
the Executive, is hereby made, as follows:

     

    
      
        	
              	
                1.

              	
                Non-Competition and
      Non-Solicitation Limitations.

              

      

    

    

    During
the period commencing on the Effective Date and ending on the later of (I) four
(4) months following the date of the merger of Bancorp with and into Norwood
(“Merger Date”), or (II) three (3) months following the Executive’s termination
of employment with Norwood, Executive agrees not to engage in any Competition
(as defined below) with Norwood, Wayne Bank (“Wayne”), Bank or Bancorp or any
affiliate or subsidiary of any of the foregoing ( the “Companies”). For purposes
of this Addendum, “Competition” means becoming an employee, an officer, a
director, a consultant, an agent, partner, an advisory director, a founder or a
shareholder or other equity holder (other than acquisitions of not more than one
percent (1%) of the outstanding capital stock of, or a similar equity interest
in, a corporation or other entity) or in any other capacity with any business
organization that is doing business or intends to do business in the
Commonwealth of Pennsylvania in the counties of Lackawanna, Wayne, Pike and
Monroe and that is engaged or intends to engage in the provision of financial
services to the public, including, but not limited to, accepting retail or
commercial deposit accounts, making loans or offering trust services, commercial
banking, mortgage banking or lease financing, by business entities, including
but not necessarily limited to commercial banks, savings associations, trust
companies, credit unions and parent companies and subsidiary companies of such
business entities (collectively, “Financial Services Companies”). Competition
shall also mean engaging in efforts to recruit any employee of the Companies or
solicit or induce, attempt to solicit or induce, or assist in the solicitation
or inducement of any employee of the

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      Companies
to terminate his or her employment with the Companies, or otherwise cease his or
her relationship with the Companies, or solicit, divert or take away, or attempt
to solicit, divert or take away, the business or patronage of any of the
clients, customers or accounts of the Companies that were served by the
Companies before or after the Closing of the Merger.

      

      
        	
                 
      

              	
                2.

              	
                Other
      Matters.

              

      

      

      
        	
                 
      

              	
                a.

              	
                Payment
      Calculation Limits. Notwithstanding anything herein or in the Agreement to
      the contrary, in the calculation of any payments due to the Executive in
      accordance with Section 5(c) of the Agreement, compensation attributable
      to the Executive as a result of the exercise of any stock options to
      acquire Bancorp common stock or the sale of any stock received upon the
      exercise of any incentive stock options resulting in a disqualifying
      disposition (in each case where such transaction occurs after October 1,
      2010) shall not be taken into account in the calculation of such
      payment.

              

      

      

      
        	
                 
      

              	
                b.

              	
                Termination of the
      Merger Agreement. In the event
      that the Merger Agreement is terminated by the parties prior to the Merger
      Date, then this Addendum shall automatically terminate as of the date of
      such termination of the Merger Agreement, and thereafter be of no further
      force and effect.

              

      

      

      
        	
                 
      

              	
                3.

              	
                Execution of Release
      Agreement.

              

      

      

      Notwithstanding
anything herein or in the Agreement to the contrary, the Executive shall execute
and deliver a Release Agreement between the Executive, the Bancorp, the Bank and
Norwood substantially in the form attached hereto as Exhibit A to the Bancorp,
the Bank and Norwood not later than eight business days prior to the date of the
merger of Bancorp with and into Norwood.

      

      
        	
                 
      

              	
                4.

              	
                Defined
      Terms.

              

      

      

      Capitalized
terms set forth in this Addendum shall have such meaning as defined herein, and
if not otherwise defined, then as defined in the Agreement. Except as otherwise
set forth herein, the Agreement shall remain in full force and effect as
otherwise written.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

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

       

      
        
          	
                  /s/ Bridget A. Orue

                	 
      	
                  /s/ Thomas J. Dziak

                
	
                  Witness

                	 
      	
                  Thomas
      J. Dziak, Executive

                
	 
      	 
      	 
      
	 
      	 
      	
                  NORTH
      PENN BANCORP, INC.

                
	 
      	 
      	 
      
	
                  ATTEST:

                	 
      	
                  By:

                	
                  /s/ Frederick L. Hickman

                
	 
      	 
      	 
      
	
                  /s/ Bridget A. Orue

                	 
      	 
      
	
                  Asst.
      Secretary

                	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                  NORTH
      PENN BANK

                
	 
      	 
      	 
      
	
                  ATTEST:

                	 
      	
                  By:

                	
                  /s/ Frederick L. Hickman

                
	 
      	 
      	 
      
	
                  /s/ Bridget A. Orue

                	 
      	 
      
	
                  Asst.
      Secretary

                	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                  NORWOOD
      FINANCIAL CORP.

                
	 
      	 
      	 
      
	
                  ATTEST:

                	 
      	
                  By:

                	
                  /s/ Lewis J. Critelli

                
	 
      	 
      	 
      
	
                  /s/ Edward C. Kasper

                	 
      	 
      
	
                  Secretary

                	
                    

                	 
      

        

         

        
          
             

          

          
            3

            
              

            

          

          
             

          

        

      

    

     

    ACKNOWLEDGMENT AND RELEASE
AGREEMENT

    

    This
Acknowledgment and Release Agreement (this “Agreement”) is entered into as
of               
 , 2011, by and among Thomas J. Dziak
(“Executive”), Wayne Bank (the “Bank”), Norwood Financial Corp. (“Norwood”),
North Penn Bancorp, Inc. (“NPB”) and North Penn Bank (“NP Bank”) (collectively,
the “Company”).

    

    WHEREAS, NPB and NP Bank have
entered into a Amended and Restated Employment Agreement with Executive,
effective as of January 4, 2008 (the “Employment Agreement”) and modified by an
Addendum dated as of December 14, 2010 (the “Addendum”) which Employment
Agreement provides Executive with certain severance benefits in the event of the
termination of Executive’s employment following a change in control of NPB;
and

    

    WHEREAS, NPB and NP Bank
entered into an Agreement and Plan of Merger by and among NPB, NP Bank, the Bank
and Norwood, dated as of December ___, 2010 (the “Merger Agreement”), pursuant
to which Norwood will acquire all of the issued and outstanding shares of
capital stock of NPB through the merger of NPB with and into Norwood (the
“Merger”) and NP Bank will merge with and into the Bank; and

    

    WHEREAS, pursuant to section
6.3(b) of the Merger Agreement, the Bank and Norwood have agreed to honor the
Employment Agreement and at this time have decided to terminate the employment
of the Executive in accordance with Section 5(b) of such Employment Agreement;
and

    

    WHEREAS, Section 6.7 of the
Merger Agreement and the Addendum provide that the Executive shall execute an
acknowledgment and release with respect to payments to be made to the Executive;
and

    

    NOW THEREFORE, in
consideration of the foregoing and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, it is agreed as
follows:

     

    1.           
 Payment. The employment of the Executive
shall terminate on _________, 2011 (the “Termination Date”). On the Termination
Date, the Bank shall make payment to the Executive in the amount of
$_________(“Payment”), which is compensation to be reported on IRS Form W-2,
less applicable withholding. Further, in accordance with such Employment
Agreement, the Bank or Norwood will use its best commercial efforts to continue
the Executive’s coverage under the Bank’s group life insurance, medical
insurance and dental insurance plans for a period of thirty-six months following
the Termination Date.

    

    Notwithstanding
the foregoing, the Payment will be paid by the Bank to the Executive as of the
date specified in this Agreement or as soon as permissible thereafter such that
there will not be the imposition of additional taxes and penalties levied
against the Executive under Code Section 409A(a)(1)(B) resulting from the timing
of such Payment.

    

    2.           
 Release
and Waiver. Executive
hereby agrees that the employment of the Executive will terminate on the
Termination Date and Payment will be made on the Termination Date under Section
5 of the Employment Agreement, and such Payment shall release the Bank, Norwood,
NP Bank and NPB from all obligations due to the Executive under the Employment
Agreement. Executive and the Company hereby expressly understand and acknowledge
that such Payment shall not affect or reduce Executive’s right to receive (a)
continued eligibility to participate in the health insurance coverage under
applicable state and federal group health care continuation coverage laws (e.g.,
Code Section 4980B(f)) following the date of termination of Executive’s
employment with the Bank; and (b) any benefit vested in Executive under any
tax-qualified or non-tax qualified employee benefit plan of NP Bank or the
Bank.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    3.            Covenants;
Release of Claims. For
all time periods before and after the Termination Date, Executive covenants and
agrees as follows:

    

    
      
        	
              	
                (a)

              	
                Full
      Release
      of Claims. In consideration for the Bank’s promise to pay to
      Executive the compensation and benefits specified in Section 1 of this
      Agreement, and the Bank’s and Norwood’s other promises set forth in this
      Agreement, Executive, for himself and his heirs, personal representatives,
      successors, and assigns, and anyone claiming by or through any of them,
      does hereby forever discharge and release the Bank Released Parties (as
      hereinafter defined), jointly and severally, from any and all Claims,
      regardless of whether such Claims or the nature thereof are known or
      unknown as of the date hereof or which thereafter arise from any matter,
      fact, circumstance, event, happening or thing whatsoever occurring or
      failing to occur, which Executive may have or which could be asserted by
      another on Executive’s behalf against the Bank, Norwood, NP Bank and NPB
      relating to Executive’s employment at the Bank and NP Bank and/or the
      cessation thereof through the Termination Date, including, but not limited
      to, any rights or claims for compensation or benefits for periods of
      employment with the Bank or NP Bank ending on the Termination Date
      (collectively, the “General Release”); provided,
      however, that the foregoing release shall not cover or include
      Claims related to enforcement of this Agreement. Executive covenants and
      agrees that the Executive Parties (as hereinafter defined), shall not, and
      shall have no right to, commence or maintain any suit, action or
      proceeding in respect of any Claim released hereby. Executive represents
      and warrants with respect to each Claim released hereby that the Executive
      Parties have not in any manner assigned, pledged or otherwise voluntarily
      or involuntarily disposed of or transferred to any Person (as hereinafter
      defined) any interest in any Claim released hereby, and that each Claim of
      the Executive Parties against the Bank Released Parties described herein
      is fully and finally discharged, settled and satisfied. The Executive
      Parties shall indemnify and hold the Bank Released Parties harmless from
      any and all reasonable costs, expenses, liabilities and damages,
      including, without limitation, all reasonable attorneys’ fees and
      disbursements, incurred by reason of any breach of any of the covenants,
      warranties and representations contained in this Section 3. The General Release set forth
      in this Section 3 shall (i) be binding upon the
      Executive Parties, and shall inure to the benefit of the successors,
      heirs, personal representatives and assigns of the Bank Released Parties;
      and (ii) be severable, so that the invalidity, illegality or
      unenforceability of any provision hereof shall not affect the remaining
      provisions hereof. The obligations of the Executive Parties hereunder
      shall be, jointly and severally, binding upon each party identified as
      included in the Executive Parties. With the exception of this Agreement,
      Executive specifically acknowledges and agrees that he is not a
      participant in, nor is he entitled to any benefits pursuant to, any
      severance pay plan maintained or administered by Bank or NP
      Bank.

              

      

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      
        	
              	
                (b)

              	
                Acknowledgement
      as to Workplace Injuries, Occupational Diseases, Leave Requests or
      Complaints. Executive acknowledges and affirms that Executive has
      no known workplace injuries or occupational diseases, and has been
      provided and/or has not been denied any leave requested under the Family
      and Medical Leave Act or any related state or local leave or disability
      laws. Executive affirms that Executive has not filed, caused to be filed,
      or presently is a party to any claim, complaint, or action against the
      Bank or NP Bank in any forum or
form.

              

      

    

    

    
      
        	
              	
                (c)

              	
                Ability
      to Enforce Agreement and Assist Government Investigation. Nothing
      in this Agreement prohibits or otherwise restricts Executive from: (i)
      instituting any legal action for the sole purpose of enforcing this
      Agreement; (ii) making any disclosure of information required by law; (ii)
      assisting any federal regulatory or law enforcement agency or legislative
      body to the extent Executive maintains a legal right to do so
      notwithstanding this Agreement; or (iv) filing, testifying, participating
      in or otherwise assisting in a proceeding relating to the alleged
      violation of any federal, state, or local law, regulation, or rule, to the
      extent Executive maintains a legal right to do so notwithstanding this
      Agreement.

              

      

    

    

    4.            Definitions. For
purposes of this Agreement, the following terms shall have the meaning set forth
opposite each:

    

    
      
        	
              	
                (a)

              	
                “Executive Parties” shall mean Executive and his
      heirs, personal representatives, successors and assigns, and anyone
      claiming by or through any of
them.

              

      

    

    

    
      
        	
              	
                (b)

              	
                “Claims” shall mean any and all, and all
      manner of, actions and causes of action, suits of any kind whatsoever
      (whether under state or federal statute, local regulations or at common
      law, and whether known or unknown), debts, liabilities, obligations, dues,
      sums of money, accounts, reckonings, bonds, bills, covenants, contracts,
      agreements, controversies, trespasses, promises, judgments, damages,
      costs, expenses, claims, and demands of any kind or nature whatsoever,
      whether in law or in equity, whether known or unknown, whether asserted or
      unasserted, including, without limitation, any and all claims for
      employment discrimination, wrongful discharge, compensation, benefits,
      bonuses, incentives, expenses, options, wages, severance pay, vacation
      pay, fringe benefits, or other monies or accountings, including punitive
      damages, liquidated damages, exemplary damages, or compensatory damages,
      physical, mental, or emotional distress, pain and suffering, back pay,
      front pay, costs, and attorneys’ fees, and any other legal or equitable
      relief, arising out of or in relation to the employment or termination of
      employment of Executive by or with the Bank or NP Bank or any other
      subsidiary or affiliate of the Bank, and the General Release includes any
      state and federal discrimination statutes including, but not limited
      to:

              

      

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      
        	
              	
                (i)

              	
                the
      Americans with Disabilities Act of 1990, as
  amended;

              

      

    

     

    
      
        	
              	
                (ii)

              	
                the
      Rehabilitation Act of 1973 (29 U.S.C. Sections
  701-794);

              

      

    

    

    
      
        	
              	
                (iii)

              	
                Title
      VII of the Civil Rights Act of 1964 (42 U.S.C. Section 2000e et seq.);

              

      

    

     

    
      
        	
              	
                (iv)

              	
                the
      Civil Rights Acts of 1866 (42 U.S.C. Section
  1981);

              

      

    

    

    
      
        	
              	
                (ii)

              	
                Executive
      Order 11246, as amended;

              

      

    

    

    
      
        	
              	
                (iii)

              	
                the
      Age Discrimination in Employment Act (“ADEA”) (29 U.S.C. Section 621 et seq.);

              

      

    

    

    
      
        	
              	
                (iv)

              	
                the
      Older Workers Benefit Protection Act of 1990
  (“OWBPA”);

              

      

    

    

    
      
        	
              	
                (v)

              	
                the
      Employee Retirement Income Security Act of 1974 as amended
      (“ERISA”);

              

      

    

    

    
      
        	
              	
                (vi)

              	
                the
      Equal Pay Act of 1963 (29 U.S.C. Section 206(d)(1)); (10) the Civil Rights
      Act of 1991;

              

      

    

    

    
      
        	
              	
                (vii)

              	
                the
      Family and Medical Leave Act of 1993;

              

      

    

    
       

      
        	
              	
                (viii)

              	
                the
      National Labor Relations Act;

              

      

       

      
        	
              	
                (ix)

              	
                the
      Uniformed Services Employment and Re-employment Rights Act of
      1994;

              

      

    

    

    
      
        	
              	
                (x)

              	
                the
      Immigration Reform Control
Act;

              

      

    

    

    
      
        	
              	
                (xi)

              	
                the
      Vocational Rehabilitation Act of
1973;

              

      

    

    

    
      
        	
              	
                (xii)

              	
                the
      Vietnam Era Veteran’s Readjustment Assistance Act of
  1974;

              

      

    

    
       

      
        	
              	
                (xiii)

              	
                the
      United States Constitution;

              

      

    

    
       

      
        	
              	
                (xiv)

              	
                the
      Pennsylvania Human Relations
Act,

              

      

    

    
       

      
        	
              	
                (xv)

              	
                the
      federal Fair Labor Standards
Act;

              

      

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      
        	
              	
                (xvi)

              	
                the
      federal Worker Adjustment and Retraining Notification
  Act;

              

      

       

      
        	
              	
                (xvii)

              	
                the
      Pennsylvania Workers’ Compensation
Act;

              

      

    

    
       

      
        	
              	
                (xviii)

              	
                any
      other federal, state, or local laws or regulations of any kind;
      and

              

      

       

      
        	
              	
                (xix)

              	
                any
      amendments to the foregoing laws or
regulations.

              

      

    

     

    The
General Release also includes, but is not limited to, all claims arising under
the common law, including, but not limited to, the following: (A) claims for
negligent retention; (B) claims for negligent supervision; (C) claims for
intentional or negligent infliction of emotional or mental distress or
outrageous conduct; (D) claims for hostile work environment; (E) claims for
retaliation; (F) breach of express or implied contract; (G) claims for sexual
harassment; (H) claims for discrimination; (I) claims for wrongful termination;
(J) claims for defamation; (K) claims for conversion; (L) claims for invasion of
privacy; (M) claims for tortuous interference with contract; (N) claims for
attorneys’ fees and costs; and (O) any and all other claims which Executive ever
had or has, arising by reason of or in any way connected with any employment
relationship which has existed between Executive and the Bank and NP Bank,
including the termination thereof.

    

    The
parties agree that the General Release provided by Executive in this Agreement
does not include a release for claims under ADEA arising after the date
Executive signs this Agreement.

    

    
      	
               
      

            	
              (c)

            	
              “Confidential Information” shall mean any and all, and all
      manner of, procedures, processes, property, methods of doing business,
      trade secrets, marketing and other confidential or proprietary information
      of or relating to the Bank and NP Bank and its respective directors and
      affiliates and also the respective information and documentation of the
      financial condition, assets, liabilities, business, operations, bank
      regulators, customers, and prospects of each, coming into the possession
      or knowledge of Executive during the course of his employment or
      association with the Bank and NP Bank, except to the extent that such
      information becomes publicly available (other than by reason of the breach
      by Executive of any of the terms or provisions
  hereof).

            

    

    

    
      	
               
      

            	
              (d)

            	
              “Bank Released Parties” shall mean the Bank, NP Bank,
      NPB and Norwood, and their past and present parents, subsidiaries,
      divisions and related and affiliated organizations, and their respective
      past and present respective officers, shareholders, directors, attorneys,
      accountants, agents, servants and employees and their successors, heirs
      and assigns.

            

    

    

    
      	
               
      

            	
              (e)

            	
              “Person” shall mean any individual,
      corporation, partnership, business trust, firm, association or other
      entity.

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
      	
            	
              5. 

            	
              Representations and Warranties
      of Executive.

            

    

     

    
      
        	
              	
                (a)

              	
                Executive
      acknowledges and agrees that, before signing this Agreement, Executive was
      advised to review it and consult with any attorney Executive chooses, and
      that, to the extent Executive desired, Executive has availed himself of
      these opportunities. Having read and understanding this Agreement,
      Executive agrees that he is entering into the Agreement freely, willingly,
      knowingly, voluntarily, without duress and with the intent to be bound by
      it. Executive acknowledges that he has read and fully understands the
      Agreement’s terms, conditions, meaning and intent, including the final
      binding effect of the waiver and release of his rights under this
      Agreement. Executive also represents and warrants to the Bank that
      Executive is not aware of any fraud, improprieties, or any irregularities
      in connection with any of the duties performed by Executive or others
      while in the employment with the Bank. In addition, Executive is not aware
      of any fraud or misrepresentations, whether material or not, that involve
      management or other employees who have or had a role in Bank’s internal
      controls over financial
reporting.

              

      

    

    

    
      
        	
              	
                (b)

              	
                Executive
      agrees that neither he or any of his representatives or agents will
      discuss any Confidential Information with any Person other than the Bank.
      Each party to this Agreement agrees that this Agreement and the terms
      hereof constitutes Confidential Information and agrees not to disclose any
      information regarding the terms of this Agreement, except that Executive
      may disclose such information to his immediate family and any personal
      tax, legal or other counsel that he has in order to consult with such
      advisor regarding the meaning or effect hereof or as required by law, and
      the Executive will instruct each of the foregoing not to disclose the same
      to anyone.

              

      

    

     

    
      	
            	
              6.

            	
              General
      Provisions.

            

    

     

    
      
        	
              	
                (a)

              	
                Heirs, Successors and Assigns.
      The terms of this Agreement shall be binding upon the parties
      hereto and their respective heirs, successors and assigns, including, but
      not limited to, the Bank, Norwood, NP Bank and
  NPB.

              

      

    

    

    
      
        	
              	
                (b)

              	
                Final Agreement. This
      Agreement represents the entire understanding of the parties with respect
      to the subject matter hereof and supersedes all prior understandings,
      written or oral. The terms of this Agreement may be changed, modified or
      discharged only by an instrument in writing signed by the parties
      hereto.

              

      

    

     

    
      
        	
              	
                (c)

              	
                Governing Law. This
      Agreement shall be construed, enforced and interpreted in accordance with
      and governed by the laws of the Commonwealth of Pennsylvania, without
      reference to its principles of conflicts of
law.

              

      

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
      
        	
              	
                (d)

              	
                Counterparts.
      This Agreement may be executed in one or more counterparts, each of
      which counterpart, when so executed and delivered, shall be deemed an
      original and all of which counterparts, taken together, shall constitute
      but one and the same
agreement.

              

      

    

    

    7.         
   No
Other Obligations. Upon
payment to Executive of the amount set forth in Section 1 hereof, neither the
Bank, Norwood, NP Bank or NPB shall have any further obligation to Executive
under the Employment Agreement, other than with respect to the payments and
other benefits described herein.

    

    8.           
 Severability. Any
term or provision of this Agreement which is held to be invalid or unenforceable
shall be ineffective to the extent of such invalidity or unenforceability
without rendering invalid or unenforceable the remaining terms and provisions of
this Agreement.

    

    9.           
 EEOC
Claims. To
the extent permitted by law, Executive agrees that he will not file, or permit
to be filed in his name or on his behalf, any lawsuit in court against any of
the Persons or entities released in this Agreement, based upon any act or event
which occurred on or before his execution of this Agreement. Executive further
agrees that, although he has the right to file a charge with the Equal
Employment Opportunity Commission, should he file such a charge, or should any
charge, lawsuit, complaint or other claim be filed in his name or on his behalf
with the Equal Employment Opportunity Commission or with any other
administrative agency or organization, or in any other forum, against any of the
persons or entities released herein, based upon any act or event which occurred
on or before the Termination Date, to the extent permitted by law, he will not
seek or accept any personal relief based upon such charge, lawsuit, complaint or
other claim, including, but not limited to, an award of monetary damages or
reinstatement to his employment with the Bank. Executive is not waiving any
right to file a complaint with a government agency.

    

    10.           Review
Period. Executive
shall have a period of twenty-one (21) calendar days within which to consider
and execute this Agreement. Prior to executing this Agreement, Executive may
choose to use as little or as much of the twenty-one (21) calendar day period as
he chooses.

    

    11.           Acknowledgements. Executive
acknowledges that he was provided the opportunity to review and consider the
terms of this Agreement for at least twenty-one (21) calendar days. Executive
further acknowledges that he has been advised to discuss all aspects of this
Agreement with his private attorney and/or other individuals of his choice who
are not associated with the Bank. Executive further acknowledges that he has
read this Agreement and fully understands the significance of all of its
provisions. Executive acknowledges, warrants and agrees that he has signed this
Agreement voluntarily and accepts all obligations contained in it in exchange
for a portion of the consideration Executive will receive pursuant to this
Agreement and the Consulting Agreement, which Executive acknowledges is adequate
and satisfactory. Executive further acknowledges the Bank or Norwood is not
otherwise obligated to provide to Executive the benefits to be provided under
the Consulting Agreement. Executive acknowledges, warrants and agrees that
neither the Employer, nor its agents, representatives, directors, officers or
employees have made any representations to Executive concerning the terms of
effects of this Agreement, other than those explicitly contained in this
Agreement. No inducements, representations, or Agreement have been made or
relied upon to make this Agreement except as stated herein.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    12.           Revocation
Period. Once
this Agreement is executed by Executive, Executive shall have a seven (7)
calendar day period during which Executive may revoke his decision to execute
the Agreement (the “7-day Revocation Period”). A revocation made pursuant to
this Section 12 shall be effective only if it is in
writing and is delivered to Mr. Lewis J. Critelli, President, Norwood Financial
Corp., at the following address: 717 Main Street, Honesdale, Pennsylvania 18431,
in a manner reasonably calculated to provide Executive with proof of receipt and
delivered at or prior to 5:00 p.m. on the seventh (7th) calendar day, or the
first business day thereafter if that day is a Saturday, Sunday, or bank
Holiday, following execution of this Agreement by Executive. This Agreement
shall not become effective or enforceable until the revocation period has
expired.

    

    This
Agreement was drafted so that it should be readily understood by Executive. By
signing this Agreement, Executive certifies that he understands all the
provisions contained in the Agreement and that this Agreement complies with the
requirements of the Older Workers Benefit Protection Act.

    

    Executive
agrees that any modifications, material or otherwise, made to this Agreement do
not restart or affect in any manner the original twenty-one (21) calendar day
consideration.

    

    Having
elected to execute this Agreement, to fulfill the promises and to receive the
consideration set forth in Section 1 above, Executive freely and
knowingly, after due consideration,
enters into this Agreement and signs the same as Executive’s free and
independent act intending to waive, settle and release all claims Executive has
or might have against the Bank, Norwood, NPB and NP Bank.

    

    I
have read this Agreement, and I am fully aware of the legal effects of the
Agreement. I have chosen to execute the Agreement freely, without reliance upon
any promises or representations made by the Bank other than those contained in
this Agreement, and I understand that, under the terms of the Agreement, I will
receive the compensation as described in the Agreement, less applicable tax
withholdings, after the expiration of the 7-day Revocation Period, provided I do
not revoke this Agreement within the 7-day Revocation Period described
herein.

     

    Please
carefully read this Agreement in full. It contains a covenant not to sue and a
general release of all known and unknown claims arising out of your employment
with the Company, including, but not limited to, the release of all claims under
Title VII of the 1964 Civil Rights Act, the Americans With Disabilities Act, the
Age Discrimination in Employment Act as amended by the Older Workers Benefit
Protection Act, and/or any other federal or state fair employment or
antidiscrimination statutes or regulations.

    

    Statement by
Executive who is signing below. By signing this Agreement, I
acknowledge that I have carefully read and fully understand the provisions of
this Agreement and have had sufficient time and opportunity (over a period of
21 days) to consult with my personal
tax, financial and legal advisors prior to executing this Agreement and I intend
to be legally bound by its terms.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties hereto have signed this Acknowledgment and Release.

    

    
      
        	
                EXECUTIVE

              	 
      	 
      
	 
      	 
      	 
      
	
                  

              	 
      	
                  

              
	
                Thomas
      J. Dziak

              	 
      	
                Date

              
	 
      	 
      	 
      
	
                WAYNE
      BANK

              	 
      	 
      
	 
      	 
      	 
      
	
                  

              	 
      	
                  

              
	
                By:

              	 
      	
                Date

              
	 
      	 
      	 
      
	
                NORWOOD
      FINANCIAL CORP.

              	 
      	 
      
	 
      	 
      	 
      
	
                  

              	 
      	
                  

              
	
                By:

              	 
      	
                Date

              
	 
      	 
      	 
      
	
                NORTH
      PENN BANCORP, INC.

              	 
      	 
      
	 
      	 
      	 
      
	
                  

              	 
      	
                  

              
	
                By:

              	 
      	
                Date

              
	 
      	 
      	 
      
	
                NORTH
      PENN BANK

              	 
      	 
      
	 
      	 
      	 
      
	
                  

              	 
      	
                  

              
	
                By:

              	
                  

              	
                Date

              

      

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    ELECTION
TO EXECUTE PRIOR TO EXPIRATION

    OF TWENTY ONE DAY
CONSIDERATION PERIOD

     

    I, Thomas
J. Dziak, understand that I have at least twenty-one (21) calendar days to
consider and execute this Agreement. After having had the opportunity to consult
with counsel, however, I have freely and voluntarily elected to execute this
Agreement prior to the expiration of the twentyone (21) calendar day
period.

     

    
      
        	
                   

              	 
      	
                   

              
	
                Thomas
      J. Dziak, Executive

              	
                  

              	
                Date

              

      

    

    
      
         

      

      
        13Exhibit
10.3

     

      ADDENDUM
TO THE

      

      NORTH
PENN BANK AND NORTH PENN BANCORP, INC.

      FORM OF AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

       

      THIS
ADDENDUM (this “Addendum”) to the AMENDED AND RESTATED EMPLOYMENT AGREEMENT by
and among Thomas A. Byrne (the “Executive”) and North Penn Bank (“Bank”) and
North Penn Bancorp, Inc. (“Bancorp”) dated January 4, 2008 (“Agreement”), is
made by and among the Executive, the Bank, Bancorp and Norwood Financial Corp.
(“Norwood“) as of December 14, 2010 (“Effective Date”).

      

      WHEREAS,
the Executive is currently employed by the Bank and Bancorp as Senior Vice
President, and is experienced in certain phases of the business of the Bank and
Bancorp; and

      

      WHEREAS,
Norwood contemplates acquiring Bancorp pursuant to the Agreement and Plan of
Merger (“Merger Agreement”) by and among the Bank, Bancorp, and Norwood, dated
December 14, 2010; and

      

      WHEREAS,
the parties desire to set forth certain modifications to the Agreement as set
forth in this Addendum prior to execution of the Merger Agreement, with this
Addendum to be effective as of the Effective Date.

      

      NOW,
THEREFORE, the parties hereto, intending to be legally bound do hereby agree,
that in exchange for the good and valuable consideration to be paid by Norwood,
the Bank and Bancorp, this Addendum by and among the Bank, Bancorp, Norwood and
the Executive, is hereby made, as follows:

      

      In order
to induce the Executive to execute this Addendum and to be bound by its terms,
including the provisions contained herein at Section 2, and to remain in the
employment with the Bank and Bancorp through the date of the merger of Bancorp
and Norwood (“Merger Date”), and to commence employment with Norwood as of the
Merger Date and to remain employed with Norwood thereafter, Norwood shall make
the following additional payments to the Executive as follows:

      

      1.           Additional Compensation
Payments.

      

      
        
          	
                	
                  a.

                	
                  Provided
      that the Executive is an employee in good standing with Norwood as of the
      date that is one (1) month following the Merger Date, Norwood shall pay
      the Executive the sum of $50,000;
and

                

        

      

       

      
        
          	
                	
                  b.

                	
                  Provided
      that the Executive is an employee in good standing with Norwood as of the
      date that is twelve (12) months following the Merger Date, Norwood shall
      pay the Executive the sum of
$30,000;

                

        

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      

      2.           Non-Competition and
Non-Solicitation Limitations.

      

      During
the period commencing on the Effective Date and ending on the later of: (I) one
year following the Merger Date, or (II) three months following the Executive’s
termination of employment with Norwood, the Executive agrees not to engage in
any Competition (as defined below) with Norwood, Wayne Bank (“Wayne”), Bank or
Bancorp or any affiliate or subsidiary of any of the foregoing ( the
“Companies”). For purposes of this Addendum, “Competition” means becoming an
employee, an officer, a director, a consultant, an agent, partner, an advisory
director, a founder or a shareholder or other equity holder (other than
acquisitions of not more than one percent (1%) of the outstanding capital stock
of, or a similar equity interest in, a corporation or other entity) or in any
other capacity with any business organization that is doing business or intends
to do business in the Commonwealth of Pennsylvania in the counties of
Lackawanna, Wayne, Pike and Monroe and that is engaged or intends to engage in
the provision of financial services to the public, including, but not limited
to, accepting retail or commercial deposit accounts, making loans or offering
trust services, commercial banking, mortgage banking or lease financing, by
business entities, including but not necessarily limited to commercial banks,
savings associations, trust companies, credit unions and parent companies and
subsidiary companies of such business entities (collectively, “Financial
Services Companies”). Competition shall also mean engaging in efforts to recruit
any employee of the Companies or solicit or induce, attempt to solicit or
induce, or assist in the solicitation or inducement of any employee of the
Companies to terminate his or her employment with the Companies, or otherwise
cease his or her relationship with the Companies, or solicit, divert or take
away, or attempt to solicit, divert or take away, the business or patronage of
any of the clients, customers or accounts of the Companies that were served by
the Companies before or after the Closing of the Merger.

      

      3.           Other Matters.

      

      a.           Perquisites. After the Merger Date, Norwood will maintain
membership at the Glen Oak Country Club or reimburse the Executive for such
costs in order to facilitate use of such facilities to promote the business of
Norwood. After the Merger Date, the Executive will have continued use of the
company vehicle maintained by the Bancorp or the Bank as of the Effective Date
for the Executive’s business use, including payment for insurance, maintenance
and fuel.

      

      b.           Payment Calculation
Limits. Notwithstanding anything
herein or in the Agreement to the contrary, in the calculation of any payments
due to the Executive in accordance with Section 5(c) of the Agreement,
compensation attributable to the Executive as a result of the exercise of any
stock options to acquire Bancorp common stock or the sale of any stock received
upon the exercise of any incentive stock options resulting in a disqualifying
disposition (in each case where such transaction occurs after October 1, 2010)
shall not be taken into account in the calculation of such payment.

      

      c.           Termination of the Merger
Agreement. In the event that the
Merger Agreement is terminated by the parties prior to the Merger Date, then
this Addendum shall automatically terminate as of the date of such termination
of the Merger Agreement, and thereafter be of no further force and
effect.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      4.           Defined Terms.

      

      Capitalized
terms set forth in this Addendum shall have such meaning as defined herein, and
if not otherwise defined, then as defined in the Agreement. Except as otherwise
set forth herein, the Agreement shall remain in full force and effect as
otherwise written.

       

      THE
REMAINDER OF THIS PAGE IS BLANK.

       

      SIGNATURE
PAGES FOLLOWS.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

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

      
         

        
          
            
              	
                      /s/
      Bridget A. Orue

                    	 
      	
                      /s/ Thomas A. Byrne

                    
	
                      Witness

                    	 
      	
                      Thomas
      A. Byrne, Executive

                    
	 
      	 
      	 
      
	 
      	 
      	
                      NORTH
      PENN BANCORP, INC.

                    
	 
      	 
      	 
      	 
      
	
                      ATTEST:

                    	 
      	
                      By:

                    	      
                      /s/ Frederick L.
    Hickman

                    
	 
      	 
      	 
      	 
      
	
                      /s/
      Bridget A. Orue

                    	 
      	 
      	 
      
	
                      Asst.
      Secretary

                    	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                      NORTH
      PENN BANK

                    
	 
      	 
      	 
      	 
      
	
                      ATTEST:

                    	 
      	
                      By:

                    	      
                      /s/ Frederick L.
    Hickman

                    
	 
      	 
      	 
      	 
      
	
                      /s/
      Bridget A. Orue

                    	 
      	 
      	 
      
	
                      Asst.
      Secretary

                    	 
      	 
      	 
      
	 	 	 
	 
      	 
      	
                      NORWOOD
      FINANCIAL CORP.

                    
	 
      	 
      	 
      	 
      
	
                      ATTEST:

                    	 
      	
                      By:

                    	/s/
      Lewis J. Critelli
	 
      	 
      	 
      	 
      
	
                      /s/
      Edward C. Kasper

                    	 
      	 
      	 
      
	
                      Secretary

                    	 
      	 
      	 
      

            

          

        

      

       

      
        
           

        

        
          4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]