Company: PFIS
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0001104659-25-030614
Chunk: 55

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 55
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: (1) solicit customers, potential customers or suppliers for or on behalf of
a competing business (as defined under the Best Employment Agreement); (2) recruit employees of the Bank or Company for a competing
business; or (3) serve as a director, officer, employee or investor in a competing business.

Craig W. Best Separation Agreement

On October 25, 2024,
the Company and the Bank entered into a Separation Agreement with Craig W. Best, our former director and chief executive officer (the
“Separation Agreement”). As contemplated by his Separation Agreement, Mr. Best resigned from his positions as chief executive
officer and director of the Company and the Bank effective as of December 31, 2024.

The Separation Agreement provides
that Mr. Best will receive, in addition to his accrued compensation and other benefits through his termination date, severance in
an aggregate amount of $1,190,073, payable in substantially equal monthly installments over a 24-month period, the applicable premium
otherwise payable for COBRA continuation coverage for the executive, his spouse and any dependents for a period of up to 24 months following
termination, and up to $30,000 in outplacement assistance. Pursuant to the Separation Agreement, Mr. Best agreed to a release of
any claims against the Company and the Bank.

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Thomas P. Tulaney Employment Agreement

We are party to an employment
agreement with our President and Chief Operating Officer, Thomas P. Tulaney, dated May 30, 2012 (the “Tulaney Employment Agreement”)
that automatically renews annually unless either party terminates the agreement earlier in accordance with the provisions of the Tulaney
Employment Agreement.

The Tulaney Employment Agreement
provides for an annual base salary, which is subject to annual review by the compensation committee. In 2024, Mr. Tulaney’s
annual base salary remained the same at $335,000. In the event of an across-the-board salary reduction affecting all of the Company’s
management employees, we may decrease Mr. Tulaney’s base salary. The Tulaney Employment Agreement also provides that Mr. Tulaney
will be eligible to:

| ● | receive an annual cash incentive payment targeted at 35 percent of his base salary with the actual payment                         
 based on achievement of corporate and individual performance goals, as determined by the compensation committee from time to time; |

| ● | participate