Company: NWFL
Filing Date: 2025-09-19
Form Type: S-4
Source: 0001193125-25-208580
Chunk: 174

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-09-19
Form: S-4
Chunk 174
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insurability requirement under said plans to the extent such limitations have been satisfied under the PB Bankshares health plan, and (2) waive any pre-existing condition limitations under such plans to
the extent such conditions for such participant are covered under the applicable PB Bankshares health plan.

At the effective date of the
merger, Norwood will establish a retention bonus pool estimated to be approximately $125,000 in the aggregate for Presence Bank employees. Such retention bonuses will be paid to selected Presence Bank employees who have not entered into an
employment agreement with Norwood who continue their employment with Norwood or Wayne Bank for a minimum of three months after completion of the merger.

PB Bankshares and Presence Bank shall take all such actions as may be necessary to terminate the Presence Bank Employee Stock Ownership Plan
(“ESOP”) with a plan termination date effective on the day immediately prior to the Effective Time of the Merger (the “ESOP Termination Date”). No new participants shall be admitted to the ESOP on or after the ESOP
Termination Date and all existing ESOP participants accounts shall become fully vested and 100% non-forfeitable. Presence Bank shall direct the ESOP trustee to remit a sufficient number of the shares of PB
Bankshares Common Stock allocated to the suspense account pursuant to the ESOP (the “Suspense Shares”) back to PB Bankshares to repay the outstanding ESOP loan, which promissory note is held by PB Bankshares, in full, with each remitted
share to be valued equal to the closing price of PB Bankshares Common Stock on the day immediately prior to the ESOP Termination Date. All remaining shares of PB Bankshares Common Stock held by the ESOP as of the Effective Time of the Merger shall
be exchanged for the Merger Consideration as elected by the ESOP trustee. After repayment of the outstanding ESOP loan and the exchange of the balance of the Common Stock held by the ESOP for the Merger Consideration, the Merger Consideration
received upon conversion of the remaining Suspense Shares shall be deemed to be earnings on ESOP trust assets to be allocated as earnings to the accounts of the ESOP participants who are employed as of the ESOP Termination Date based on their
account balances under the ESOP as of the ESOP Termination Date. Participant account assets will be distributed to ESOP participants after the receipt of a favorable determination letter from the IRS. PB Bankshares shall use its best efforts, prior
to the Effective