Document:

Exhibit 10.2

 

Cimarex
energy co.

1700 Lincoln Street, Suite 3700

Denver,
Colorado 80203-4553

 

 

 

NOTICE OF GRANT OF PERFORMANCE STOCK
UNITS

AND AWARD AGREEMENT (PERFORMANCE AWARD)

 

 

 

	Name:  <first_name> <last_name>	 
	 	 
	Participant ID:  <emp_id>	 
	 	 
	Plan:  2019 Equity Incentive Plan	 
	 	 
	Date of Award:  December 5, 2019	 
	 	 
	Number of shares of Restricted Stock:  <shares_awarded>	 
	 	 
	Restriction Period Ends:  December 1, 2022	 

 

By accepting this agreement online,
you and Cimarex Energy Co. (the “Company”) agree that this restricted stock award is granted under and governed by
the terms and conditions of the Company’s 2019 Equity Incentive Plan (the “Plan”) and the Award Agreement (the
 “Agreement”), both of which are attached and made a part of this document. In the event of a conflict between the terms
and conditions of the Plan and the terms and conditions of the Agreement, the terms and conditions of the Plan will prevail.

 

     

     

    

 

AWARD AGREEMENT

 

1.            Grant
of Performance Stock Units. Pursuant to the Plan and subject to the terms and conditions of this Agreement, you are granted
Performance Stock Units entitling you to receive shares of Common Stock (the “Restricted Stock”) pursuant to Section 6.1.5
of the Plan. Upon the Company’s achievement of pre-determined objectives for a specified performance period, some or all
of the shares of Restricted Stock shown in the Notice of Grant will vest (the “Vested Shares”). Prior to the end of
the Performance Period (as defined in Paragraph 3), the Restricted Stock may be evidenced in the manner the Company deems appropriate,
including, without limitation, a book-entry registration or issuance of a stock certificate or certificates. At the end of the
Performance Period the shares will be disposed of as provided in Paragraph 7.

 

2.            Voting
Rights and Ordinary Cash Dividends. Prior to the end of the Performance Period you are entitled to the voting rights of a holder
of the Company’s common stock.

 

During the Performance
Period, the Company will accrue dividends on the maximum number of shares that may vest pursuant to this grant for each dividend
record date occurring during the Performance Period. At the end of the Performance Period, the number of Vested Shares to be paid
to you will be calculated in accordance with paragraph 4 of this Agreement. At that time you will receive the dividends accrued
by the Company that are attributable to the Vested Shares paid to you in accordance with such calculation. Any dividends that are
accrued on shares that are forfeited as a result of the calculation described in paragraph 4 will also be forfeited and returned
to the Company’s general funds.

 

3.            Performance
Period. Except as provided in Paragraphs 5 and 6, the “Performance Period” shall be the three-year period ending
on the date set forth under “Restriction Period Ends” as provided in the foregoing Notice of Award. You may not sell,
assign, transfer by gift or otherwise, pledge, hypothecate or otherwise dispose of, by operation of law or otherwise, any of the
shares of Restricted Stock prior to expiration of the Performance Period.

 

4.            Performance
Goals. The number of Vested Shares will be determined at the end of the Performance Period and will be based upon the Company’s
stock price performance relative to that of a defined peer group. The peer group will be comprised of the exploration and production
companies set forth on Appendix B, on both the first day of the Performance Period and on the last day of the Performance Period
(the “Performance Peer Group”). The calculation of the exact number of Vested Shares to be issued shall be determined
as follows:

 

a.            The
calculated percentage difference between (i) and (ii), below:

 

(i)            the
average (rounded to the second decimal place) of the per share closing price of the Company’s common stock (the “XEC
Beginning Price”) and the common stock of each company in the Performance Peer Group over 30 trading days preceding the beginning
of the Performance Period, and

 

(ii)           the
average (rounded to the second decimal place) of the per share closing price of the Company’s common stock (the “XEC
Ending Price”) and the common stock of each company in the Performance Peer Group over 30 trading days preceding the end
of the Performance Period.

 

b.            After
determination of the percentage difference as provided in 4.a., the Company and the companies in the Performance Peer Group will
be ranked from the highest percentage to the lowest percentage, with the highest percentage company ranked as first and the lowest
percentage company as the last number of the total number of companies in the Performance Peer Group. If during the Performance
Period any member of the Performance Peer Group (i) declares bankruptcy, or (ii) is delisted and ceases to be traded
on a national securities exchange, then it will remain in the Performance Peer Group and shall be ranked with any similarly-situated
company in last place for purposes of this Section 4.b.

 

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c.            The
result obtained in 4.b. will serve as the basis for the percentage of Vested Shares to be held by you. The applicable vesting percentages
are set forth on Appendix A to this Agreement. For the Company’s rank under the column entitled “Relative Performance
Rank” you will vest the percentage shown under the appropriate “Percent of Award Vesting” column depending on
whether (i) the XEC Ending Price is less than the XEC Beginning Price or (ii) the XEC Ending Price is equal to or greater
than the XEC Beginning Price. If at the end of the Performance Period there are fewer companies in the Performance Peer Group than
at the beginning of the Performance Period, the relative performance rank will be adjusted so that the Company must be ranked first
or second of the companies in the Performance Peer Group in order for you to achieve 200% of the award if the XEC Ending Price
is equal to or greater than the XEC Beginning Price, or in order for you to receive 100% of the award if the XEC Ending Price is
less than the XEC Beginning Price, and no shares will vest if the Company is ranked less than 31% of the companies in the Performance
Peer Group, with the remaining vesting percentages adjusted by interpolation.

 

5.            Termination
of Employment.

 

a.            Death
or Disability. If your employment with the Company terminates on account of death or disability (as defined below) prior to
the end of the Performance Period, you will receive the number of Vested Shares calculated in accordance with paragraph 4, except
that the end of the Performance Period will be the date of death or disability.

 

You will be considered
disabled if you are (i) unable to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than
12 months, or (ii) by reason of any medically determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for
a period of not less than three months under an accident and health plan covering employees of Cimarex.

 

b.            Other
Terminations. If your employment is terminated, voluntarily or involuntarily, for any reason other than death or disability
prior to the end of the Performance Period, your Restricted Stock will be forfeited.

 

6.            Change
in Control. Upon the occurrence of a Change in Control, as defined in the Plan, you will receive the number of Vested Shares
calculated in accordance with paragraph 4, except that the end of the Performance Period shall be the date of the Change in Control.

 

7.            Removal
of Restrictions. Upon expiration of the Performance Period, the Company will deliver to you the number of Vested Shares computed
in accordance with this Agreement. In conformity with its insider trading policy, Cimarex may elect to electronically deliver the
shares to your account at a brokerage firm selected by the Company. You shall forfeit and assign to the Company, without any consideration,
any shares of Restricted Stock to which you are not entitled at the end of the Performance Period.

 

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8.            Withholding
Taxes. Unless you make other arrangements with the Company, the Company will withhold a number of Vested Shares having a Fair
Market Value (as defined in the Plan) on the date of payment equal to the minimum statutory total tax that could be withheld on
the transaction. You may also make arrangements with the Company to pay the amount of taxes required by law or to deliver to the
Company previously owned shares of common stock having a Fair Market Value on the date of payment equal to the minimum statutory
total tax. In no event shall any form of payment made by you be permitted if it would result in an accounting charge with respect
to shares delivered to pay such taxes, unless otherwise approved by the Company’s Compensation and Governance Committee.

 

9.            Effect
of Prohibited Transfer. If any transfer of Restricted Stock is made or attempted to be made contrary to the terms of this Agreement,
the Company will have the right to acquire, without the payment of any consideration, such shares from you or your transferee,
at any time before or after a prohibited transfer. In addition to any other legal or equitable remedies it may have, the Company
may enforce its rights to specific performance to the extent permitted by law and may exercise such other equitable remedies then
available to it. The Company may refuse for any purpose to recognize any transferee who receives shares contrary to the provisions
of this Agreement as a stockholder and may retain and/or recover all dividends on such shares that were paid or payable subsequent
to the date on which the prohibited transfer was made or attempted.

 

10.           Clawback.
 By accepting this Performance Award, you expressly agree that, in the event of an accounting restatement due to material
noncompliance with financial reporting requirements under the U.S. federal securities laws, the Committee has the right to use
reasonable efforts to recover from you this Performance Award, during the three-year period preceding the date on which the Company
is required to prepare an accounting restatement. This clawback policy will be interpreted in the best judgment of the Committee
in a manner consistent with any applicable rules or regulations adopted by the Securities and Exchange Commission or the
New York Stock Exchange Stock Market as contemplated by the Dodd-Frank Act.

 

11.           Miscellaneous.

 

a.            Adjustments.
Article IX of the Plan provides for certain adjustments to the number of shares of Common Stock covered by the Restricted
Stock and other changes in connection with a reorganization or other changes to the Common Stock.

 

b.            Restrictions
on Common Stock. Any shares of Common Stock acquired by you are subject to the Company’s Insider Trading Policy and may
be subject to other restrictions on resale. Any sale or other disposition of shares by you must be made in compliance with the
Company’s Insider Trading Policy, in effect from time to time, securities law and other applicable legal requirements.

 

c.            Electronic
Delivery. The Company may, in its sole discretion, decide to deliver any documents related to Restricted Stock awarded under
the Plan or future Restricted Stock that may be awarded under the Plan by electronic means. You hereby consent to receive such
documents by electronic delivery and agree to participate in the Plan through any on-line or electronic system established and
maintained by the Company or another third party designated by the Company.

 

d.            Amendment
or Modifications to the Agreement. This Agreement constitutes the entire understanding of the parties on the subjects covered.
You expressly warrant that you are not accepting this Agreement in reliance on any promises, representations, or inducements other
than those contained herein. Modifications to this Agreement or the Plan may only be made in writing and signed by a duly authorized
officer of the Company.

 

e.            Amendment
or Termination of the Plan. By accepting this Performance Award, you expressly warrant that you have received the Restricted
Stock under the Plan, and have received, read and are familiar with the terms of the Plan. You understand that the Plan is discretionary
in nature and that it may be amended, suspended or terminated by the Company at any time.

 

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f.            Defined
Terms. Capitalized terms have the meaning set forth in the Plan or herein, as the case may be.

 

g.            Compliance
with Securities Laws. This Agreement shall be subject to the requirement that if at any time counsel to the Company determines
that the listing, registration or qualification of the shares of Restricted Stock upon any securities exchange or under any state
or federal law, or the consent or approval of any governmental or regulatory body, is necessary as a condition of, or in connection
with, the issuance or purchase of such shares thereunder, the Restricted Stock may not be awarded unless such listing, registration,
qualification, consent or approval shall have been effected or obtained on conditions acceptable to the Company. Nothing herein
shall be deemed to require the Company to apply for, obtain, or keep current, any such listing, registration or qualification.

 

h.            Construction;
Severability. The section headings contained herein are for reference purposes only and shall not in any way affect the meaning
or interpretation of this Agreement. The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable
and enforceable to the extent permitted by law.

 

i.            Waiver.
Any provision contained in this Agreement may be waived, either generally or in any particular instance, by the Committee appointed
under the Plan, but only to the extent permitted under the Plan.

 

j.            Binding
Effect. Subject to the limits on the transferability of the Restricted Stock, this Agreement shall be binding upon and inure
to the benefit of the Company and you and their respective heirs, executors, administrators, legal representatives, successors
and assigns.

 

k.            No
Right to Continued Employment. Nothing contained in this Agreement or the Plan shall be construed as giving you any right to
remain employed by (or provide other service to) the Company, any Subsidiary or any Affiliated Entity. The Company reserves the
right to terminate your employment (or other service) at any time.

 

l.            Notices.
Any notice required or permitted to be given under this Agreement shall be in writing and shall be delivered electronically, personally
or mailed (U.S. Mail) by the Company to you at your then current address as maintained by the Company or such other address as
you may advise the Company in writing. Any such notice shall be deemed to have been given as of the second day after deposit in
the United States mails, postage prepaid, properly addressed as set forth in this paragraph, in the case of a mailed notice, or
as of the date delivered in the case of electronic or personal delivery.

 

m.           Governing
Law. This Agreement and the Plan shall be governed by and construed in accordance with the laws of the State of Delaware except
as superseded by applicable Federal law.

 

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Attachments:

 

These documents constitute part of a prospectus covering
securities that have been registered under the Securities Act of 1933.

 

Cimarex Energy Co. 2019 Equity Incentive Plan

Summary of the Cimarex Energy Co. 2019 Equity Incentive Plan

Form 10-K and other periodic reports [SEC Filings]

 

[REST OF THE PAGE IS LEFT BLANK INTENTIONALLY]

 

    	CIMAREX 2019 EQUITY INCENTIVE PLAN PERFORMANCE AWARD AGREEMENT	Page | 6 of 8 

     

    

 

Appendix A

Cimarex Energy Co.

Performance Award
Agreement

 

	Relative Performance Rank	 	 	XEC Ending Price Less
 Than XEC Beginning Price
 Percent of Award Vesting	 	 	XEC Ending Price Equal to or
 Greater Than XEC Beginning Price
 Percent of Award Vesting	 
	 	1-2	 	 	 	100	%	 	 	200	%
	 	3	 	 	 	87.5	%	 	 	175	%
	 	4-5	 	 	 	75	%	 	 	150	%
	 	6	 	 	 	62.5	%	 	 	125	%
	 	7-8	 	 	 	50	%	 	 	100	%
	 	9	 	 	 	37.5	%	 	 	75	%
	 	10	 	 	 	25	%	 	 	50	%
	 	11-16	 	 	 	0	%	 	 	0	%

 

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Appendix B

Cimarex Energy Co.

Performance Award
Agreement

 

Performance Peer Group

 

(Initially consisting of the following
companies, subject to adjustment as provided in

Section 4 of this Performance Share Agreement)

 

	Apache Corporation (APA)	Encana Corporation (ECA)
	Cabot Oil & Gas Corporation (COG)	EQT Corporation (EQT)
	Centennial Resource Development, Inc. (CDEV)	Marathon Oil Corporation (MRO)
	Cimarex Energy Co. (XEC)	Matador Resources Company (MTDR)
	Concho Resources Inc. (CXO)	Noble Energy, Inc. (NBL)
	Devon Energy Corporation (DVN)	Parsley Energy, Inc. (PE)
	Diamondback Energy, Inc. (FANG)	Pioneer Natural Resources Company (PXD)
	EOG Resources, Inc. (EOG)	WPX Energy, Inc. (WPX)

 

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 Exhibit 4.2 

NORWOOD FINANCIAL CORP. 

DESCRIPTION OF CAPITAL STOCK 

Norwood Financial Corp. (“Norwood”) is authorized to issue 20,000,000 shares of common stock, par value $0.10 per share, and
5,000,000 shares of preferred stock no par value. Each share of Norwood common stock has the same relative rights as, and is identical in all respects with, each other share of common stock. 

The common stock of Norwood represents nonwithdrawable capital, is not an account of an insurable type, and is not insured by the FDIC or any
other government agency. 
 Common Stock 

Dividends. Norwood may pay dividends out of statutory surplus or from net earnings if, as and when declared by its board of
directors. The payment of dividends by Norwood is subject to limitations that are imposed by law and applicable regulation. The holders of common stock of Norwood will be entitled to receive and share equally in dividends as may be declared by the
board of directors of Norwood out of funds legally available therefor. If Norwood issues shares of preferred stock, the holders thereof may have a priority over the holders of the common stock with respect to dividends. 

Voting Rights. The holders of common stock of Norwood have exclusive voting rights in Norwood. They elect Norwood’s
board of directors and act on other matters as are required to be presented to them under Pennsylvania law, or as are otherwise presented to them by the board of directors. Generally, each holder of common stock is entitled to one vote per share and
will not have any right to cumulate votes in the election of directors. If Norwood issues shares of preferred stock, holders of the preferred stock may also possess voting rights. Certain matters require an 80% shareholder vote. 

Liquidation. In the event of liquidation, dissolution or winding up of Norwood, the holders of its common stock would be
entitled to receive, after payment or provision for payment of all its debts and liabilities, all of the assets of Norwood available for distribution. If preferred stock is issued, the holders thereof may have a priority over the holders of the
common stock in the event of liquidation or dissolution. 
 Preemptive Rights. Holders of the common stock of Norwood
will not be entitled to preemptive rights with respect to any shares that may be issued. The common stock is not subject to redemption. 
 Preferred
Stock 
 None of the shares of Norwood’s authorized preferred stock are outstanding. Preferred stock may be issued with preferences
and designations as the board of directors may from time to time determine. Norwood’s board of directors may, without shareholder approval, issue shares of preferred stock with voting, dividend, liquidation and conversion rights that could
dilute the voting strength of the holders of the common stock and may assist management in impeding an unfriendly takeover or attempted change in control. 

 CERTAIN ANTI-TAKEOVER PROVISIONS OF NORWOOD’S 

ARTICLES OF INCORPORATION AND BYLAWS 

The following discussion is a general summary of the material provisions of Norwood’s articles of incorporation and bylaws and certain
other provisions under the Pennsylvania Business Corporation Law and regulatory provisions that may be deemed to have an “anti-takeover” effect. The following description of certain of these provisions is necessarily general and, with
respect to provisions contained in Norwood’s articles of incorporation and bylaws, reference should be made in each case to the document in question. 

Norwood’s articles of incorporation and bylaws contain a number of provisions relating to corporate governance and rights of shareholders
that might discourage future takeover attempts. As a result, shareholders who might desire to participate in such transactions may not have an opportunity to do so. In addition, these provisions will also render the removal of the board of directors
or management of Norwood more difficult. 
 The following description is a summary of the provisions of the articles of incorporation and
bylaws. 
 Directors. The board of directors is divided into three classes. The members of each class will be elected for
a term of three years and only one class of directors will be elected annually. Thus, it would take at least two annual elections to replace a majority of Norwood’s board of directors. Further, the bylaws impose notice and information
requirements in connection with the nomination by shareholders of candidates for election to the board of directors or the proposal by shareholders of business to be acted upon at an annual meeting of shareholders. 

Prohibition of Cumulative Voting. The articles of incorporation prohibit cumulative voting for the election of directors.

 Restrictions on Removing Directors from Office. The articles of incorporation provide that directors may only be
removed for cause. “Cause” is defined in the articles of incorporation as being declared of unsound mind by an order of a court, convicted of a felony or of an offense punishable by imprisonment for a term of more than one year, or being
deemed liable by a court for gross negligence or misconduct in the director’s duties to Norwood. At least 30 days’ prior notice to the director must be given. 

Authorized but Unissued Shares. Norwood has authorized but unissued shares of common and preferred stock. The articles of
incorporation authorize 5,000,000 shares of serial preferred stock. Norwood is authorized to issue preferred stock from time to time in one or more series subject to applicable provisions of law, and the board of directors is authorized to fix
the designations, and relative preferences, limitations, voting rights, if any, including, without limitation, offering rights of such shares (which could be multiple or as a separate class). In the event of a proposed merger, tender offer or other
attempt to gain control of Norwood that the board of directors does not approve, it might be possible for the board of directors to authorize the issuance of a series of preferred stock with rights and preferences that would impede the completion of
the transaction. An effect of the possible issuance of preferred stock, therefore, may be to deter a future attempt to gain control of Norwood. Norwood’s board of directors has no present plan or understanding to issue any preferred stock. 

Amendments to Articles of Incorporation and Bylaws. Amendments to the articles of incorporation must be approved by
Norwood’s board of directors and also by a majority of the outstanding shares of Norwood’s voting stock; provided, however, that approval by at least 80% of the outstanding voting stock is generally required to amend the
following provisions: 

	 	•	 	 The provision establishing the board of directors, the classified terms, procedures for removal and procedures
for nomination of directors; 

  

	 	•	 	 Preemptive rights; 

  

	 	•	 	 Elimination of director liability; 

 

	 	•	 	 Indemnification; 

  

	 	•	 	 Meetings of shareholders and shareholder proposals; 

 

	 	•	 	 Approval of business combinations; 

 

	 	•	 	 Disgorgement of profits by certain controlling persons following a takeover attempt; and 

 

	 	•	 	 The requisite shareholder vote to approve amendments to the articles of incorporation and bylaws.

 Anti-takeover Provisions Under the Pennsylvania Business Corporation Law 

Under the Pennsylvania Business Corporation Law, certain anti-takeover provisions apply to Pennsylvania registered corporations (e.g., publicly
traded companies) including those relating to (1) control share acquisitions, (2) disgorgement of profits by certain controlling persons, (3) business combination transactions with interested shareholders, and (4) the rights of
shareholders to demand fair value for their stock following a control transaction. Pennsylvania law allows corporations to opt-out of these anti-takeover sections. Norwood is a registered corporation
and has opted out only of the control share acquisition provisions. A general summary of the applicable anti-takeover provisions is set forth below. 

Disgorgement of Profits by Certain Controlling Persons. Pennsylvania law regarding disgorgement of profits by certain
controlling persons applies in the event that (1) any person or group publicly discloses that the person or group may acquire control of the corporation, or (2) a person or group acquires (or publicly discloses an intent to acquire) 20% or
more of the voting power of the corporation and, in either case, sells shares within 18 months thereafter. Any profits from sales of equity securities of the corporation received by the person or group during such
18-month period will belong to the corporation if the securities that were sold were acquired during the 18-month period or within 24 months prior thereto. 

Business Combination Transactions with Interested Shareholders. Pennsylvania law regarding business combination transactions
with interested shareholders provides that a person who acquires the direct or indirect beneficial ownership of shares entitled to cast at least 20% of the votes entitled to be cast for the election of directors or who is an affiliate or associate
of such corporation and was the beneficial owner, directly or indirectly, of shares entitling that person to cast at least 20% of the votes at any time within the five year period immediately prior to the date in question becomes an “interested
shareholder.” A corporation subject to this provision may not effect mergers or certain other business combinations with the interested shareholder for a period of five years, unless: 

 

	 	•	 	 the business combination or the acquisition of stock by means of which the interested shareholder became an
interested shareholder is approved by the corporation’s board of directors prior to such stock acquisition; 

	 	•	 	 the business combination is approved by the affirmative vote of the holders of all the outstanding common shares
of the corporation; or 

  

	 	•	 	 the business combination is approved by the affirmative vote of the holders of a majority of all shares entitled
to vote, excluding votes of shares held by the interested shareholders, and at the time of such vote, the interested shareholder is the beneficial owner of at least 80% of the voting shares of the corporation. This exception applies only if the
value of the consideration to be paid by the interested shareholder in connection with the business combination satisfies certain fair price requirements. 

After the five-year restricted period, an interested shareholder of the corporation may engage in a business combination with the corporation
if (1) the business combination is approved by the affirmative vote of a majority of the shares other than those beneficially owned by the interested shareholder and its affiliates, or (2) the merger is approved at a shareholders meeting
and certain fair price requirements are met. 
 Change in Control Regulations 

The Change In Bank Control Act provides that no person, acting directly or indirectly or through or in concert with one or more other persons,
may acquire control of a bank holding company unless the FRB has been given 60 days prior written notice. For this purpose, the term “control” means the acquisition of the ownership, control or holding of the power to vote 25% or more
of any class of a bank holding company’s voting stock, and the term “person” includes an individual, corporation, partnership, and various other entities. In addition, an acquiring person is presumed to acquire control if the person
acquires the ownership, control or holding of the power to vote of 10% or more of any class of the holding company’s voting stock if (a) the bank holding company’s shares are registered pursuant to Section 12 of the Exchange Act
or (b) no other person will own, control or hold the power to vote a greater percentage of that class of voting securities. Accordingly, the prior approval of the Board of Governors of the Federal Reserve System (“FRB”) would be
required before any person could acquire 10% or more of the common stock of Norwood. 
 The Bank Holding Company Act provides that no
company may acquire control of a bank directly or indirectly without the prior approval of the FRB. Any company that acquires control of a bank becomes a “bank holding company” subject to registration, examination and regulation by the
FRB. Pursuant to federal regulations, the term “company” is defined to include banks, corporations, partnerships, associations, and certain trusts and other entities, and “control” of a bank is deemed to exist if a company has
voting control, directly or indirectly of at least 25% of any class of a bank’s voting stock, and may be found to exist if a company controls in any manner the election of a majority of the directors of the bank or has the power to exercise a
controlling influence over the management or policies of the bank. In addition, a bank holding company must obtain FRB approval prior to acquiring voting control of more than 5% of any class of voting stock of a bank or another bank holding company.

 An acquisition of control of a bank that requires the prior approval of the FRB under the Bank Holding Company Act is not subject to the
notice requirements of the Change In Bank Control Act. Accordingly, the prior approval of the FRB under the Bank Holding Company Act would be required (a) before any bank holding company could acquire 5% or more of the common stock of Norwood
and (b) before any other company could acquire 25% or more of the common stock of Norwood.

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