Company: NWBI
Filing Date: 2025-01-27
Form Type: S-4
Source: 0001193125-25-012768
Chunk: 89

Company: Northwest Bancshares, Inc.
Filing Date: 2025-01-27
Form: S-4
Chunk 89
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 periods ending after December 13, 2024.

Cash Incentive Plan: Pursuant to the Penns Woods
performance-based cash incentive plan, and consistent with past practice, Penns Woods may pay eligible employees (i) their 2024 cash incentive bonuses, if applicable, and (ii) for the calendar year 2025, up to an aggregate of $200,000 in
cash incentive bonuses, provided that, measured as of June 30, 2025, (A) adjusted return on equity is 9% or greater, and (B) consolidated net loan charge-offs are less than 30 basis points. If Penns Woods is only able to satisfy condition
(A) or (B) of the foregoing, but not both conditions, the 2025 bonus pool will be reduced by 50%.

Executive Employment Agreements: Additionally, prior to the Effective Date, Penns Woods shall cause certain of its executive employment agreements to be amended or terminated in form or substance satisfactory to Northwest. See the section “Interests of Penns Woods’ Directors and Officers in the Merger” for more detail on the termination or amendment of the agreements on page 55.

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Option Cash-Out: The Merger Agreement
provides for all options outstanding under the Penns Woods equity incentive plan to vest in full immediately prior to the Effective Time. At the Effective Time, the vested options will convert automatically by nature of the Merger into the right to
receive an amount of cash. For additional information on the vesting, conversion, and related consideration, please see the section titled “THE MERGER AGREEMENT—Option Cash-Out” on page
65.

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THE MERGER AGREEMENT

The following is a description of the material terms of the Merger Agreement. A complete copy of the Merger Agreement is attached as
to this proxy statement/prospectus and is incorporated into this proxy statement/prospectus by reference.We encourage you to read the Merger Agreement carefully, as it is the legal document that governs the Merger.

The Merger Agreement contains representations and warranties of Penns Woods and Northwest. The assertions embodied in those representations and warranties are qualified by information contained in confidential disclosure schedules that the parties delivered in connection with the execution of the Merger Agreement. In addition, certain representations and warranties were made as of a specific date, may be subject to a contractual standard of materiality different from the standard of materiality generally applicable to statements made by a corporation to shareholders or may have been used