Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 164

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 164
---
 for both stock options which are 
 presently exercisable and stock options which will have accelerated vesting as a result of the change in control event.                                                                                                                                   |

| (6) | We have assumed the estimated value of the restricted stock with accelerated vesting as a result of the change                                                                                                                                           
 in control event is calculated based upon the number of shares with accelerated vesting and the $19.75 cash consideration amount. The holder of such restricted stock may elect to receive the stock consideration or the cash consideration in exchange 
 for these restricted stock awards,                                                                                                                                                                                                                       |

| (7) | Estimated value of payment of insurance premiums for continuation of medical insurance under COBRA for 12 
 months for Mr. Witt and 24 months for Mr. Amin.                                                           |

Employment Agreement and Non-Competitionand Non-SolicitationAgreement with Mr. Janak M. Amin Employment Agreement. In connection with the merger, Mr. Janak M. Amin entered into a three-year employment agreement with Norwood and Wayne Bank, which will supersede Mr. Amin’s current employment 107

agreement with Presence Bank at the effective time of the merger. In accordance with this employment agreement, Mr. Amin will serve as Chief Operating Officer of the combined companies
following the completion of the merger with an annual base salary of $400,000. In addition, Mr. Amin will receive a stay bonus payable on the six-month anniversary date of the Effective Time of the Merger
equal to $250,000 (the “Initial Stay Bonus”), a stay bonus of $175,000 payable on the first anniversary date of the Initial Stay Bonus payment and a stay bonus of $115,000 payable on the second anniversary date of the Initial Stay Bonus
Payment. During the term of the agreement, Mr. Amin will be eligible to receive annual and long-term incentive awards on a discretionary basis. If Mr. Amin’s employment is terminated without cause or if Mr. Amin terminates his
employment for good reason (as defined in the agreement), he would be entitled to receive a lump sum payment equal to his then annual base salary, plus any unpaid portion of the stay bonus. If such termination of employment occurs in connection with
a future change in control of Norwood or Wayne Bank, Mr. Amin would receive a severance payment equal to two times his base salary plus a pro rata annual bonus payment. The employment agreement includes
non-competition and non-solicitation provisions for the benefit