Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 118

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 118
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 law, including the fiduciary duty of directors
in the context of a change in control. Following thorough discussion and deliberation, and after all questions posed by the directors had been answered by management, Stephens and Barley Snyder, the PB Bankshares board unanimously agreed that it was
in the best interest of PB Bankshares’ shareholders and other constituents for PB Bankshares to explore a potential business combination with Norwood. The board of directors of PB Bankshares directed Mr. Amin to negotiate an indication of
interest with Norwood.

Norwood provided a nonbinding indication of its interest in acquiring PB Bankshares to Mr. Amin on
April 1, 2025. That indication of interest proposed a merger of PB Bankshares with Norwood, with Norwood surviving, followed by the merger of Wayne Bank and Presence Bank, with Wayne Bank surviving. The April 1 indication of interest
proposed that, in the merger, each share of PB Bankshares be exchanged for either (i) Norwood common stock, at a fixed exchange ratio of .7797 shares of Norwood common stock for each share of PB Bankshares common stock or (ii) $19.50 cash
(subject to the requirement that 80% of PB Bankshares’ shares would be converted into Norwood stock) and that stock options would be cashed out based on the cash consideration to be paid in the merger. The April 1 indication of interest
also proposed a termination fee of 4.5% of the transaction value if PB Bankshares terminated the merger to pursue a transaction with another party and that PB Bankshares would negotiate exclusively with Norwood for a period of 90 days.

The April 1 indication of interest provided that Norwood would commit to honoring all change in control provisions of PB
Bankshares’ benefit plans as well as all existing change in control agreements (subject to the limits imposed by Section 280G of the Internal Revenue Code of 1986) and to paying severance to employees terminated up to one year after
consummation of the merger, unless they are terminated for cause. The April 1 indication of interest also provided that Norwood would enter into an employment agreement with Mr. Amin and Douglas L. Byers as well as invite 2 current members
of the PB Bankshares board of directors to join the Norwood board of directors. Members of PB Bankshares’ board not invited to join the Norwood board would be offered positions on a regional advisory board. Norwood also provided