Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 170

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 170
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, 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 Time of the Merger, to take all such actions as are necessary (determined in consultation with Norwood) to prepare and file the application for a favorable determination letter for the ESOP with the IRS, and following the Closing,
Norwood shall use its best efforts in good faith to obtain such favorable determination letter as promptly as