Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 169

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 169
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excess parachute payment” for purposes of Section 280G of the Code of 1986, and thereby subjecting Mr. Witt to
liability for the payment of the excise tax provided at Section 4999(a) of the Code.

Employee Matters

Nothing in the merger agreement shall be construed as constituting an employment agreement between Norwood, Wayne Bank or any of their
affiliates and any officer or employee of PB Bankshares or any of its subsidiaries or an obligation on the part of Norwood, Wayne Bank or any of their affiliates to employ any such officers or employees.

110

Employees of PB Bankshares and of Presence Bank as of the date of the merger agreement who
remain employed by PB Bankshares or Presence Bank as of the effective time of the merger and whose employment is terminated by PB Bankshares, Norwood or Wayne Bank (absent termination for cause as determined by the employer) as of or within one year
after the effective time of the merger shall receive severance pay equal to two weeks of such employee’s base weekly pay for each full year of completed employment service commencing with any such employee’s most recent hire date
with PB Bankshares or Presence Bank and ending with such employee’s termination date with PB Bankshares, Norwood or Wayne Bank, with a minimum severance payment to an individual equal to four weeks of base pay and a maximum payment equal to 26
weeks of base pay, provided that such terminated employees shall enter into a release of claims against PB Bankshares, Presence Bank, Norwood and Wayne Bank acceptable in form and substance to Norwood and Wayne Bank.

In the event that Norwood terminates any of PB Bankshares’s health and welfare benefit plans, programs, insurance and other policies,
all employees of PB Bankshares or any of its subsidiaries who continue employment with Norwood or any subsidiary of Norwood following the effective time of the merger will become eligible to participate in Norwood’s or Wayne Bank’s
medical, dental, health and disability plans without any gap or interruption in coverage. With respect to each Norwood health plan, Norwood and Wayne Bank shall cause each such plan to (1) waive any waiting period limitation or evidence of
insurability requirement under said plans to the extent such limitations have been satisfied under the PB Bankshares health plan, and (2) waive any pre-existing condition limitations under such plans to
the extent such conditions for such participant are covered under the applicable PB Bankshares health plan.

At the effective date of the
merger