Company: CCNE
Filing Date: 2025-03-03
Form Type: S-4/A
Source: 0001193125-25-044149
Chunk: 13

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-03
Form: S-4/A
Chunk 13
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 merger, rounded to the nearest whole cent. |

| Q: | Is there a termination fee potentially payable under the merger agreement? |

| A: | Yes. Under certain circumstances, ESSA may be required to pay CNB a termination fee if the merger agreement is terminated. See the section entitled “The Merger Agreement—Termination Fee” beginning on page 171 for more information. |

| Q: | Why are ESSA shareholders being asked to cast a non-binding advisory vote to approve the compensation that may become payable to ESSA’s named executive officers in connection with the merger? |

| A: | The SEC’s rules require ESSA to seek a non-binding advisory vote with respect to certain “golden parachute” compensation that may become payable to ESSA’s named executive officers in connection with the merger. |

| Q: | What will happen if ESSA shareholders do not approve the compensation that may become payable to ESSA’s named executive officers in connection with the merger? |

| A: | The vote with respect to the “golden parachute” compensation is an advisory vote and will not be binding on ESSA or CNB. Approval of the compensation that may become payable to ESSA’s named executive |

2

| officers is not a condition to completion of the merger. Therefore, if the ESSA merger proposal is approved by ESSA’s shareholders and the merger is subsequently completed, the compensation (to the extent otherwise earned and payable) will still be paid to ESSA’s named executive officers, whether or not ESSA’s shareholders approve the compensation at the ESSA special meeting. |

| Q: | What are the material U.S. federal income tax consequences of the holding company merger to U.S. holders of shares of ESSA common stock? |

| A: | The holding company merger (as defined below) is intended to qualify for U.S. federal income tax purposes as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and it is a condition to our respective obligations to complete the holding company merger that each of ESSA and CNB receives a legal opinion to the effect that the holding company merger will so qualify. Assuming the holding company merger so qualifies, ESSA shareholders generally will not recognize any gain or loss for U.S. federal income tax purposes on the exchange of their ESSA common stock for CNB common stock in