Company: NWFL
Filing Date: 2025-09-19
Form Type: S-4
Source: 0001193125-25-208580
Chunk: 181

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-09-19
Form: S-4
Chunk 181
---
 course of business consistent with past practices and policies;

(xxii) purchase or sell any
participation interest in any loan other than in the ordinary course of business consistent with past practice; or

(xxiii) agree to do
any of the foregoing.

Norwood has agreed that, until completion of the merger, it and its subsidiaries will not, without the prior written consent of PB
Bankshares, except as required by law or regulation or any governmental entity:

(i) amend, repeal or modify any provision of its articles
of incorporation or bylaws in a manner that would materially and adversely affect PB Bankshares or the ability to consummate the transactions contemplated by the merger agreement;

(ii) knowingly take any action that is intended to result in any of its representations and warranties set forth in the merger agreement being
or becoming untrue in any material respect at any time prior to the effective time of the merger;

115

(iii) knowingly take action that would prevent or impede the merger from qualifying as a reorganization within the meaning of Section 368 of the Internal Revenue Code; (iv) take any action that is intended or may reasonably be expected to result in any of the conditions to the merger not being satisfied; or (v) agree to do any of the foregoing. Covenants of PB Bankshares and Norwood in the Merger Agreement Agreement Not to Solicit Other Proposals.Under the terms of the merger agreement, PB Bankshares has agreed not to initiate, solicit, encourage or facilitate, directly or indirectly, any inquiries or proposals from any third party relating to an acquisition of PB Bankshares, or engage in any negotiations concerning, or provide any confidential or nonpublic information or data to, or have any discussions with, any person relating to, any acquisition proposal. Notwithstanding these restrictions, the merger agreement provides that, under specified circumstances prior to shareholder approval of the merger agreement, in response to an unsolicited bona fide acquisition proposal from a third party if the PB Bankshares board determines, in its good faith judgment of (after consultation with and considering the advice of its legal counsel and financial advisor) that (i) failure to take such action would be reasonably likely to cause the directors to breach their fiduciary duties and (ii) such proposal is reasonably likely to result in a “superior proposal” as compared to the terms of the merger with Norwood, PB Bankshares may furnish information regarding PB Bankshares and participate in discussions and negotiations with such third party. PB Bankshares has agreed to submit the merger agreement