Company: NWFL
Filing Date: 2025-03-18
Form Type: DEF 14A
Source: 0001193125-25-056227
Chunk: 19

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-03-18
Form: DEF 14A
Chunk 19
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 |     |                                         |   6,803 |

| (1) | Based on fair market value of the Company common stock underlying the award ($27.21 per share) as of December 31, 2024. |

| (2) | Awards vest in five equal installments beginning on December 15, 2025. |

| (3) | Awards vest in five equal installments beginning on December 12, 2024. |

| (4) | Awards vest in five equal installments beginning on December 13, 2023. |

| (5) | Awards vest in five equal installments beginning on December 14, 2022. |

| (6) | Awards vest in five equal installments beginning on December 8, 2021. |

| (7) | Awards vest at a rate of 70% as of the one-year anniversary of the date of the grant, May 10, 2022, and then at the rate of 10% annually thereafter. |

**14

Employment Agreements

James O. Donnelly entered into an employment agreement with the Company and the Bank as of May 9, 2022. Pursuant to the agreement, Mr. Donnelly is employed as the President and Chief Executive Officer of the Bank and of the Company. Mr. Donnelly is paid a salary at the rate of $425,000 per annum or such higher amount as may be determined from time to time (“Base Salary”). The agreement is for the period commencing on May 9, 2022 (the “Effective Date”) and ending thirty-six (36) months thereafter, unless terminated earlier. On each annual anniversary date of the Effective Date, this agreement shall automatically be extended for an additional 12 months unless either party has beforehand provided the other party with written notice that this agreement shall not be extended at such time. Mr. Donnelly’s employment shall be for no definite period of time, and Mr. Donnelly, on one hand, and the Company and/or the Bank, on the other hand, may terminate such employment relationship at any time for any reason or no reason. Mr. Donnelly will participate in an equitable manner with all other senior management employees of the Bank and the Company in discretionary incentive compensation that the Boards of Directors of the Bank and the Company may award from time to time to their senior management employees.

Mr. Donnelly is eligible to participate in the employee benefits generally applicable to employees of the Bank, including: group hospital