Document:

Exhibit 10.2

 

April 21, 2005

 

Mark R. Sullivan

432 Oldershaw Avenue

Moorestown, NJ 08057

 

Dear Mark:

 

On behalf of
MedQuist Inc. (the “Company”), this Agreement describes your severance benefits
should your employment with the Company terminate pursuant to the conditions
set out below.  For purposes of this
Agreement, you are referred to as the “Employee.”

 

1.             Employment
At-Will.  Nothing contained in this
Agreement is intended to create an employment relationship whereby Employee
will be employed other than as an “at-will” employee.  Employee’s employment by the Company may be
terminated by Employee or the Company at any time.

 

2.             Severance
Payments.  Employee’s employment by
the Company may be terminated at any time. 
Upon termination, Employee will be entitled to the payment of accrued
and unpaid salary through the date of such termination.  All salary, commissions and benefits will
cease at the time of such termination, subject to the terms of any benefit
plans then in force or enforceable under applicable law and applicable to
Employee, and the Company will have no further liability or obligation
hereunder by reason of such termination; provided, however,
that if Employee’s employment is terminated by the Company without Cause,
Employee will be entitled to continued payment of his base salary (at the rate
in effect upon termination), subject to applicable federal, state, and local
income tax deductions, for a period of 12 months to be paid in accordance with
the Company’s normal payroll process. 
Notwithstanding the foregoing, no amount will be paid or benefit
provided under this paragraph unless and until (x) Employee executes and
delivers a general release of claims against the Company and its subsidiaries
in a form prescribed by the Company, which will include, among other things,
non-competition and non-solicitation obligations for the duration of the
severance period, and (y) such release becomes irrevocable.  Any severance pay or benefits provided under
this paragraph will be in lieu of, not in addition to, any other severance
arrangement maintained by the Company. 
No severance benefits will be paid in the event that Employee resigns
his employment with the Company; provided, however, that Employee will be paid
severance benefits if he tenders his written resignation within 30 days
following a substantial and material diminution of his duties or a reduction in
his base salary in excess of ten percent, which diminution or reduction is not
cured by the Company within 10 days of receiving Employee’s written
resignation.

 

3.             Termination
for Cause.  For purposes of this
Agreement, “Cause” means the occurrence of any of the following:  (1) Employee’s refusal, willful failure
or inability to perform (other than due to illness or disability) his
employment duties or to

 

 

follow the lawful
directives of his superiors; (2) misconduct or gross negligence by
Employee in the course of employment; (3) conduct of Employee involving
any type of disloyalty to the Company or its subsidiaries, including, without
limitation: fraud, embezzlement, theft or dishonesty in the course of
employment; (4) a conviction of or the entry of a plea of guilty or nolo contendere to a crime involving moral turpitude or
that otherwise could reasonably be expected to have an adverse effect on the
operations, condition or reputation of the Company, (5) a material breach
by Employee of any agreement with or fiduciary duty owed to the Company; or (6) alcohol
abuse or use of controlled drugs other than in accordance with a physician’s
prescription.  No severance benefits will
be paid in the event that the Company terminates the Employee for Cause.

 

4.             Entire
Agreement; Amendment.  This Agreement
contains the entire agreement and understanding of the parties hereto relating
to the subject matter hereof.  This
Agreement may not be changed or modified, except by an agreement in writing
signed by each of the parties hereto.

 

5.             Governing
Law.  This Agreement shall be
governed by, and enforced in accordance with, the laws of the State of New
Jersey without regard to the application of the principles of conflicts of
laws.

 

To acknowledge
your agreement to and acceptance of the terms and conditions of this Agreement,
please sign below in the space provided within 5 days of the date of this
Agreement and return a singed copy to my attention.  If the Agreement is not signed and returned
within 5 days, the terms and conditions of this Agreement will be deemed
withdrawn.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  MEDQUIST INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted and Agreed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Mark Sullivan

  	
   

  
					

 

2Exhibit 10.1

 

PENNS WOODS BANCORP, INC.

300 Market Street

Williamsport, Pennsylvania 17701

 

July 8, 2005

 

Mr. Hubert A.
Valencik

1431 Allegheny Street

Jersey Shore,
Pennsylvania 17740

 

Dear Hubert:

 

This letter confirms our understanding regarding your
agreement to provide certain consulting services to Jersey Shore State Bank
(the “Bank”) and its sole shareholder, Penns Woods Bancorp, Inc. (the “Holding
Company”) (the Holding Company and the Bank sometimes will be referred to
collectively as the “Company”), following your retirement as an executive
officer and employee of the Company, effective July 15, 2005. The
following (the “Agreement”) is intended to set forth the terms and conditions
upon which we have mutually agreed.

 

1.                                       Consulting Services; Termination of
Employment Agreement.

 

A.                                   The Company engages you, and you hereby
accept the engagement, to perform consulting services, as an independent
contractor, relating to the Company’s financial services activities, subject to
the terms and conditions of this letter, from August 1, 2005 until July 31,
2006 (the “Consulting Term”).  The
Consulting Term will be automatically renewed on August 1, 2006 and on August 1
of each year thereafter for a period of one (1) year; provided, however,
that either party may terminate this agreement to provide consulting services
at any time after August 1, 2006 upon forty-five (45) days prior
written notice.  During the Consulting
Term, you will provide such services as may be requested from time to time by
the Company’s President and Chief Executive Officer principally relating to
business development activities.  You
agree to devote such time and attention as is reasonably necessary to perform
the consulting services, not to exceed twenty (20) hours per week in any event,
and to respond promptly by telephone or email correspondence to inquiries
during normal business hours from the

 

 

appropriate officers of the Holding Company or the Bank relating to
your activities.  You shall not be
required to perform any consulting services on the Company’s premises unless
otherwise agreed by you and the Company, and you shall have exclusive control
over the manner of performance of the consulting services.  The Company shall provide you at no cost all
items of personal property necessary for you to perform the consulting
services.

 

B.                                     You and the Company agree that, effective
at the close of business on July 14 , 2005, the employment agreement
between you, the Holding Company, and the Bank dated November 5, 1984 (as
the same may have been further amended, modified, or restated, the “Employment
Agreement”) and all subsequent understandings or agreements relating to your
employment, if any, including without limitation, the Employee Severance
Benefit Plan, dated May 30, 1996 (the “Employee Benefit Severance Plan”),
shall be null and void and of no further force and effect and that you shall
not be entitled to any compensation or benefits under such agreements or
understandings for services rendered, whether prior to or after the date hereof.  Notwithstanding the foregoing, subject to
required withholdings, you will be entitled to accrued salary payable
under the Employment Agreement through July 15, 2005 for services provided
through such date.  Payments of accrued
salary will be subject to all required tax and other withholdings.  You will not be eligible for any other
salary, bonus or other compensation for any service provided to the Bank, the
Holding Company or any of their affiliates or subsidiaries prior to July 15,
2005, except as otherwise set forth herein and except with respect to such
benefits you may have accrued as of such date under any pension or welfare
benefit plan in which you are a participant.

 

C.                                     Nothing contained in this Section 2
or elsewhere in this Agreement shall be deemed to in any manner limit or
restrict any benefits that you have accrued as of July 15, 2005 under any
plan or program applicable to employees of the Holding Company or the Bank in
which you participated on the date of your retirement, including the Company’s
pension plan and the Company’s 401(k) plan.

 

2

 

2.                                       Compensation and Benefits During the
Consulting Term.

 

A.                                   In consideration of the consulting
services referred to in Section 2, the Company will pay you, and you will
accept, a fee of one thousand four hundred dollars ($1,400.00) per month,
payable on or before the fifteenth (15th) day of each calendar month during the
Consulting Term.  Such monthly fees will
constitute the sole and exclusive compensation to which you are or may become
entitled for consulting services performed hereunder during the Consulting
Term.  Without limiting the generality of
the foregoing, except as specifically otherwise provided in this Agreement, you
will have no right by virtue of your role as a consultant to participate in, or
to receive benefits under, any of the following plans, programs or arrangements
which may be maintained by, or which may be available for individuals providing
services to the Holding Company or the Bank or any of their affiliates: any
qualified or non-qualified deferred compensation or retirement plan; any life,
health (including hospitalization, medical and major medical), accident, or
disability plan, whether provided through insurance contracts or otherwise; any
stock option plan or any other equity participation plan; any bonus, incentive,
or other cash compensation program; and any vacation, sick leave, severance
pay, holiday or other fringe benefit program of any name or nature whatsoever.

 

B.                                     Notwithstanding the provisions of Section 2A,
the Company will continue to provide health insurance coverage during the
Consulting Term to you and your spouse under the Company’s health insurance
plan applicable to employees or, if such coverage is not permitted under the
terms of such plan, the Company will reimburse you promptly during the
Consulting Term for your after-tax costs to obtain health insurance for you and
your immediate family under the provisions of COBRA or otherwise.

 

3.                                       Fees and Expenses.

 

If, in connection with the performance of consulting
services hereunder, you incur out-of-pocket costs for reasonable business
expenses of a type for which the officers of the Bank would be reimbursed by
the Bank, you will be entitled to reimbursement therefor in accordance with the

 

3

 

standards and procedures
in effect from time to time for expense reimbursements to the Bank’s
officers.  In addition, during the
Consulting Term (i) the Company shall pay or reimburse you for your annual
membership fees at Clinton Country Club and the Jersey Shore Lions Club and (ii) reimburse
you for mileage for business travel at the Company’s standard mileage
reimbursement rates in effect from time to time.

 

4.                                       Employee Stock Options.

 

Any outstanding stock options previously granted to
you will not be affected by this Agreement and will be governed by the terms of
the Holding Company’s stock option plan and the option agreements executed in
connection with such grants.

 

5.                                       Noncompete and Nonsolicitation Covenants.

 

A.                                   You recognize and acknowledge that during
your employment with the Company you had and during the Consulting Term you
will have access to certain confidential and proprietary business information
and trade secrets (collectively, “Information”), including but not limited to
client and customer information, information relating to the Company’s
strategic and business plans, and the Company’s financial information, all of
which are of substantial value to the Company in its business.  You agree that you will not, without the
Company’s permission, during the Consulting Term or thereafter, use any
Information for your benefit or for the benefit of any third parties, or
disclose to any third party in any manner, directly or indirectly, any
Information.

 

B.                                     During the Consulting Term and for a
period of twelve (12) months thereafter, you will not (i) accept
employment from or serve as consultant or advisor to any person or entity
engaged in the business of banking in the geographic markets served by the
Company or the Bank at that time, or (ii) solicit, directly or indirectly,
on your own behalf or on behalf of any other person or entity, any banking or
financial services business from any person or entity with whom Company or the
Bank, or any of their respective subsidiaries, has had a business relationship
at any time prior to the date hereof.

 

4

 

C.                                     During the Consulting Term and for a
period of twelve (12) months thereafter, you will not solicit, directly or
indirectly, on your own behalf or on behalf of any other person or entity, any
person who has provided services to the Company or the Bank, or any of their
respective subsidiaries, as an employee, director, independent contractor or
consultant prior to the date hereof to provide any services to you or any other
person or entity.

 

6.                                       Notices.

 

All notices and other communications hereunder shall
be in writing and shall be deemed to have been duly given if delivered personally
or mailed (registered or certified mail, postage prepaid, return receipt
requested) as follows:

 

	
  If to the
  Holding Company or the Bank:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Penns Woods
  Bancorp, Inc.

  300 Market Street

  Williamsport, Pennsylvania 17701

  Attn: Ronald A. Walko, President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  If to you:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Hubert A.
  Valencik

  1431 Allegheny Street

  Jersey Shore, Pennsylvania 17740

  

 

or to such other address as the person to whom notice
is to be given may have previously furnished to the other in writing in the
manner set forth above, provided that notice of a change of address shall be
deemed given only upon receipt.

 

7.                                       Miscellaneous.

 

A.                                   Assignment.  This
Agreement shall not be assigned, pledged or transferred in any way by either
party without the prior consent of the other party, except that the Company may
assign or transfer this Agreement in connection with a sale of substantially
all of assets or a

 

5

 

merger or similar transaction. 
The Company will require any successor, whether direct or indirect, or
by purchase, merger, consolidation or otherwise to all or substantially all of
the business and/or assets of the Holding Company or the Bank to assume and
agree to perform this Agreement in the same manner and to the same extent that
the Holding Company or the Bank, as the case may be, would have been required
to perform as if no succession had taken place.

 

B.                                     Entire Agreement. 
This agreement and the employee benefit plans referenced in Section 2
above, contain the entire understanding among you, on the one hand, and the
Holding Company and the Bank, on the other hand, with respect to the subject
matter hereof, and may be amended only in a written agreement signed by each of
the parties.  All prior or contemporaneous
understandings, discussions, or agreements, made orally or in writing,
including without limitation, the Employment Agreement, the Employee Benefit
Severance Plan and all signed and unsigned amendments and proposed amendments
to the Employment Agreement, and any Company severance policy, are expressly
superseded by this agreement.

 

C.                                     Headings.  The headings
in this letter are for convenience of reference only and shall not be
considered as part of this Agreement nor limit or otherwise affect the meaning
hereof.

 

D.                                    Arbitration. 
Any dispute relating to this Agreement between you, on the one hand, and
the Holding Company or the Bank, on the other hand, shall, at the election of
either party, be subject to arbitration in accordance with the rules of
the American Arbitration Association then in effect.  Unless otherwise agreed by the parties, the
arbitration shall take place in Williamsport, Pennsylvania.  The decision of the arbitration panel will be
binding on the parties and may be enforced in any court having
jurisdiction.  The Holding Company and
the Bank will have the right to set off against any amounts otherwise due to
you under this Agreement with respect to damages and costs awarded to the
Holding Company or the Bank by the arbitration panel.

 

6

 

E.                                      Specific Performance. 
If any party fails to comply with provisions of this Agreement, any
other party will be entitled, upon application to any court of competent
jurisdiction, to specific performance or injunctive or other equitable relief
in order to enforce or prevent violation of such provision or provisions.

 

F.                                      Waiver.  No failure or
delay on the part of any party in exercising any right under this Agreement
shall operate as a waiver of such right; nor shall any single or partial
exercise or the exercise of any other right hereunder preclude any other or
further exercise of any right.

 

G.                                     Severability. 
If one or more of the provisions contained in this Agreement shall be
determined illegal or unenforceable by a court, no other provision shall be
affected by such holding.

 

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

 

7

 

If the foregoing is acceptable to you, please
acknowledge your agreement, and that your legal representative has reviewed
this Agreement with you and advised you regarding its contents, by signing and
dating three (3) copies of this letter and returning two of them to me.

 

	
   

  	
  PENNS WOODS BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   \s\ Ronald A.
  Walko

  	
   

  
	
   

  	
   

  	
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JERSEY SHORE STATE BANK

  
	
   

  	
   

  
	
   

  	
  By

  	
   \s\ Ronald A.
  Walko

  	
   

  
	
   

  	
   

  	
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed to and accepted, intending to be legally
  bound:

  	
   

  
	
   

  	
   

  
	
  \s\ Hubert A. Valencik

  	
   

  	
   

  
	
  Hubert A. Valencik

  	
   

  
	
   

  	
   

  
	
  Dated: July  15, 2005

  	
   

  
					

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]