Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 35

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 35
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 merger, as certain employees may experience uncertainty about their future roles. If key employees depart because of issues relating to the uncertainty and difficulty of integration or a desire not to remain with the business, Norwood’s business following the merger could be negatively impacted. In addition, the merger agreement restricts PB Bankshares and Norwood from taking certain specified actions until the merger occurs. These restrictions may prevent Norwood and PB Bankshares from pursuing attractive business opportunities that may arise prior to the completion of the merger. See “The Merger and the Merger Agreement — Conduct of Business Before Completion of the Merger” beginning on page 113 for a description of the restrictive pre-closingcovenants to which PB Bankshares is subject. The Merger Agreement Limits PB Bankshares’s Ability to Pursue Alternatives to the Merger. The merger agreement contains certain provisions that, subject to limited exceptions, limit PB Bankshares’s ability to initiate, solicit, encourage or facilitate any inquiries or competing third-party proposals, or engage in any negotiations, or provide any confidential information, or have any discussions with any person relating to a proposal to acquire all or a significant part of PB Bankshares. In addition, PB Bankshares has agreed to pay Norwood a termination fee in the amount of $2.4 million in the event that Norwood or PB Bankshares terminates the merger agreement for certain reasons involving PB Bankshares’ pursuit of an alternative transaction. These provisions might discourage a potential competing acquiror that might have an interest in acquiring all or a significant part of PB Bankshares from considering or proposing that acquisition even if it were prepared to pay consideration with a higher per share market price than that proposed in the merger, or might result in a potential competing acquiror proposing to pay a lower per share price to acquire PB Bankshares than it might otherwise have proposed to pay. Until the merger agreement is approved by PB Bankshares shareholders, PB Bankshares can consider and participate in discussions and negotiations with respect to an alternative unsolicited bona fide acquisition proposal so long as the PB Bankshares board of directors determines in good faith (after consultation 19

with and considering the advice of legal counsel and its financial advisor) that failure to take such action would be reasonably likely to cause the directors to breach their fiduciary duties to PB Bankshares shareholders under Maryland law and that such alternative acquisition proposal is reasonably likely to result in a superior proposal. PB Bankshares has agreed to keep Norwood apprised of developments, discussions and negotiations relating to any such acquisition proposal.