Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 182

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 182
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 the Determination Date divided by the closing value of KBW NASDAQ 
 Regional Bank Index on July 3, 2025 minus 0.20; unless within five business days of notice of such termination, Norwood notifies PB Bankshares that it will increase the exchange ratio for the stock consideration so that the Norwood Market Value      
 is equal to a dollar amount that is the lesser of $20.62 or the amount obtained by reducing the initial Norwood market value ($25.77) by the percentage change in the KBW NASDAQ Regional Bank Index less 20 percentage points.                           |

119

Termination Fee The merger agreement requires PB Bankshares to pay Norwood a fee of $2.4 million if the merger agreement is terminated in certain circumstances. Specifically, termination of the merger agreement in the following circumstances would require PB Bankshares to pay the termination fee:

| • |     | PB Bankshares terminates the merger agreement to accept a proposal which the PB Bankshares board of directors                                                                                                                                      
 reasonably determines, after consultation with its financial advisor and legal counsel, to be (i) more favorable to its shareholders from a financial point of view than the merger (taking into account any changes to the financial terms of the 
 merger agreement proposed by Norwood in response to such offer) and (ii) reasonably capable of being completed (referred to in the merger agreement as a “superior proposal”) with respect to a merger or consolidation or any similar             
 transaction (referred to in the merger agreement as an “acquisition transaction”);                                                                                                                                                                 |

| • |     | Norwood terminates the merger agreement because PB Bankshares has materially breached its obligations under the                                                                                                                                  
 no solicitation provisions of the merger agreement, fails to recommend approval of the merger agreement or changes its recommendation after recommending approval, and the PB Bankshares’ shareholders fail to approve the merger agreement; and |

| • |     | Norwood terminates the merger agreement because (i) PB Bankshares knowingly and intentionally breaches                                                                                                                                         
 certain covenants or agreements or representations and warranties (which cannot be cured) and Norwood is not in material breach, (ii) prior to the special meeting, an acquisition proposal was publicly announced, and (iii) within 12 months 
 after termination of the merger agreement, PB Bankshares consummates or enters into an agreement with respect to a superior proposal.                                                                                                          |

Expenses Each of Norwood and PB Bankshares will pay its own costs and expenses incurred in connection with the merger. Changing the Terms of the Merger