Company: NWFL
Filing Date: 2025-09-19
Form Type: S-4
Source: 0001193125-25-208580
Chunk: 122

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-09-19
Form: S-4
Chunk 122
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 diligence. During due diligence, Mr. Donnelly and Mr. Amin and
the parties’ legal counsel discussed internal revenue 280G issues.

On June 19, Norwood’s legal counsel provided a first
draft of the proposed merger agreement to Barley Snyder as well as drafts of director and officer voting and non-compete agreements and the proposed bank merger agreement.

Between June 19, 2025 and July 3, 2025, Barley Snyder proceeded to negotiate the merger agreement, with input from the PB
Bankshares’ board of directors and senior management. In that process, the parties negotiated over: the timing of shareholder elections; addition of representations and warranties to be given by Norwood; qualification and clarification of
representations and warranties being provided by PB Bankshares; the standard to be applied to the PB Bankshares board in circumstances where PB Bankshares may have the right, in the exercise of its fiduciary duties, to pursue a superior transaction
if one were to materialize; the termination fee, which Presence asked to be reduced to 4%, but which Norwood ultimately did not accept; the circumstances under which the termination fee would be payable; and the time at which PB Bankshares’
price protection would be determined. PB Bankshares determined that the voting agreements and bank merger agreement were generally acceptable as presented, with immaterial changes.

At a board meeting on June 26, 2025 PB Bankshares’ board met to review the status of negotiations and discussions with Norwood and
the due diligence process.

June 26, 2025 Mr. Amin had a conference call with Mr. Donnelly to review open items, the status
of negotiations of the merger agreement and timelines for merger announcement.

On July 2, 2025 PB Bankshares’ board met to
review the outcome of PB Bankshares’ due diligence on Norwood, and the merger agreement. Barley Snyder provided a summary of the current terms of the merger agreement, as then negotiated, as well as the need for continued confidentiality,
trading blackout and the board’s fiduciary duties in considering the merger and the merger agreement. The board asked for minor changes to the merger agreement.

On July 7, 2025 PB Bankshares board held a meeting to make its decision on the proposed merger agreement. At the meeting, Barley Snyder
highlighted minor changes from the version reviewed by the board on July 2 and again highlighted for the directors their fiduciary duties in considering the merger