Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 170

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 170
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 on the one-year anniversary of such payment and the sum of $50,000.00 on the two-year anniversary of the such payment thereafter; provided that Mr. Witt is in compliance with
the terms of this agreement at the time of each such payment. In accordance with the agreement, Mr. Witt irrevocably waives any compensation which might otherwise become due and payable from PB Bankshares, Presence Bank, Norwood or Wayne Bank
to him in accordance with his Change in Control Agreement between him and Presence Bank, dated March 1, 2021, with regard to any possible severance payments associated with any future termination of his employment with PB Bankshares, Presence
Bank, Norwood or Wayne Bank upon or following the merger. Further, Mr. Witt agrees that the payments shall be reduced in such manner and to such extent, but not below zero dollars, so that no such payments made in good faith hereunder when
aggregated with all other payments to be made to Mr. Witt by Norwood or Wayne Bank shall be deemed an “excess parachute payment” for purposes of Section 280G of the Code of 1986, and thereby subjecting Mr. Witt to
liability for the payment of the excise tax provided at Section 4999(a) of the Code.

Employee Matters

Nothing in the merger agreement shall be construed as constituting an employment agreement between Norwood, Wayne Bank or any of their
affiliates and any officer or employee of PB Bankshares or any of its subsidiaries or an obligation on the part of Norwood, Wayne Bank or any of their affiliates to employ any such officers or employees.

110

Employees of PB Bankshares and of Presence Bank as of the date of the merger agreement who
remain employed by PB Bankshares or Presence Bank as of the effective time of the merger and whose employment is terminated by PB Bankshares, Norwood or Wayne Bank (absent termination for cause as determined by the employer) as of or within one year
after the effective time of the merger shall receive severance pay equal to two weeks of such employee’s base weekly pay for each full year of completed employment service commencing with any such employee’s most recent hire date
with PB Bankshares or Presence Bank and ending with such employee’s termination date with PB Bankshares, Norwood or Wayne Bank, with a minimum severance payment to an individual equal to four weeks of base pay and a maximum payment equal to 26
weeks of base pay, provided that such terminated employees shall