Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 119

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 119
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 in the
indication of interest that it would indemnify the PB Bankshares officers and directors to the same extent such indemnification would be provided under PB Bankshares organizational documents and to purchase a directors and officers tail insurance
policy covering up to 6 years after closing, subject to a premium payment limit of 150% of PB Bankshares’ current annual insurance premium payment.

On April 14, 2025, both PB Bankshares and Norwood agreed to temporarily stop working on a letter of intent due to significant market
volatility resulting from the April 2 “Liberation Day” tariffs announced by President Trump.

By May 7, 2025, the
parties felt like the financial markets had significantly stabilized and that discussions could likely resume. On or about May 7, Norwood provided Mr. Amin with a revised draft of the nonbinding indication of interest. The May 7
indication of interest contained the same terms as the April 1 indication of interest with the exception that the exchange ratio proposed was increased to .7850 shares of Norwood common stock to be exchanged for each share of PB Bankshares
common stock in the merger, and the cash consideration per share was increased to $19.75.

76

Mr. Amin re-engaged with Barley Snyder to talk
about indication of interest and its negotiation. Between May 7 and the execution of the indication of interest on May 20, 2025, the parties negotiated various aspects of the indication of interest, including a request by Presence that the
exclusivity period be limited to 60 days instead of 90 and that Norwood not seek another transaction, as either buyer or seller, during the exclusivity period. PB Bankshares also requested customary “double trigger” price protection be
added to the indication of interest. Norwood agreed to all of these changes and, following PB Bankshares’ board approval of the May 7 indication of interest on May 20, 2025, the parties executed the indication of interest on
May 20, 2025.

On June 12, 2025, the parties began due 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.