Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 120

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 120
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% of the transaction value if PB Bankshares terminated the merger to pursue a transaction with another party and that PB Bankshares would negotiate exclusively with Norwood for a period of 90 days.

The April 1 indication of interest provided that Norwood would commit to honoring all change in control provisions of PB
Bankshares’ benefit plans as well as all existing change in control agreements (subject to the limits imposed by Section 280G of the Internal Revenue Code of 1986) and to paying severance to employees terminated up to one year after
consummation of the merger, unless they are terminated for cause. The April 1 indication of interest also provided that Norwood would enter into an employment agreement with Mr. Amin and Douglas L. Byers as well as invite 2 current members
of the PB Bankshares board of directors to join the Norwood board of directors. Members of PB Bankshares’ board not invited to join the Norwood board would be offered positions on a regional advisory board. Norwood also provided in the
indication of interest that it would indemnify the PB Bankshares officers and directors to the same extent such indemnification would be provided under PB Bankshares organizational documents and to purchase a directors and officers tail insurance
policy covering up to 6 years after closing, subject to a premium payment limit of 150% of PB Bankshares’ current annual insurance premium payment.

On April 14, 2025, both PB Bankshares and Norwood agreed to temporarily stop working on a letter of intent due to significant market
volatility resulting from the April 2 “Liberation Day” tariffs announced by President Trump.

By May 7, 2025, the
parties felt like the financial markets had significantly stabilized and that discussions could likely resume. On or about May 7, Norwood provided Mr. Amin with a revised draft of the nonbinding indication of interest. The May 7
indication of interest contained the same terms as the April 1 indication of interest with the exception that the exchange ratio proposed was increased to .7850 shares of Norwood common stock to be exchanged for each share of PB Bankshares
common stock in the merger, and the cash consideration per share was increased to $19.75.

76

Mr. Amin re-engaged with Barley Snyder to talk
about indication of interest and its negotiation. Between May 7 and the execution of the indication of interest on May 20, 2025, the parties negotiated various aspects of