Company: NWFL
Filing Date: 2025-07-07
Form Type: 425
Source: 0001193125-25-156258
Chunk: 2

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-07-07
Form: 425
Chunk 2
---
 PB Bankshares not to, subject to certain exceptions, (a) initiate, solicit, induce or encourage or take any action to facilitate (including by providing non-public information) any inquiries or proposals with respect to any acquisition proposals or (b) engage in discussions with third parties relating to any acquisition proposal. The Merger Agreement may be terminated under certain conditions, including, among others, if the closing of the Merger has not been completed by July 31, 2026. In addition, prior to obtaining shareholder approval of the Merger, PB Bankshares may terminate the Merger Agreement under certain circumstances, including the good faith determination by its board of directors that it has received an unsolicited bona fide “superior proposal,” which remains a superior proposal after any proposed modification of the Merger Agreement, if any, by Norwood Financial. In addition, Norwood Financial may terminate the Agreement if (A) Bankshares fails to hold its shareholder meeting to vote on the Merger Agreement within the time frame set forth in the Merger Agreement, or (B) if Bankshares Board of Directors either (i) fails to recommend that the shareholders of Bankshares vote in favor of the adoption of the Merger Agreement, or (ii) makes a Change in Recommendation (as defined in the Merger Agreement). If the Merger Agreement is terminated under certain circumstances, PB Bankshares must pay a termination fee of $2.4 million.

In addition, PB Bankshares may terminate the Merger Agreement if the price of Norwood
Financial’s common stock both (1) declines by more than 20% from its Initial Norwood Market Value (as defined in the Merger Agreement) of $25.77 as of July 3, 2025, as compared to the average over a ten-day trading period ending
shortly before closing and (2) declines by more than 20% than any decline in the KBW NASDAQ Regional Bank Index, using the same time periods, unless Norwood Financial adjusts the merger consideration to make up the difference, in which case PB
Bankshares will still be required to complete the Merger.

Concurrent with the entering into of the Merger Agreement, PB Bankshares
President and CEO, Janak M. Amin, entered into an Employment Agreement and a Non-Competition and Non-Solicitation agreement with Norwood Financial and Wayne Bank. In addition, selected PB Bankshares executives are expected to continue employment
with Norwood Financial after completion of the Merger.

P