Company: PFIS
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0001104659-25-030614
Chunk: 23

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 23
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 factors listed or described in the PBCL that the director considers appropriate,
subject to the business judgment rule where applicable. As to officers, the PBCL currently provides that an officer shall perform
the officer’s duties in good faith, in a manner the officer reasonably believes to be in the best interests of the business corporation
and with such care, including reasonable inquiry, skill and diligence, as a person of ordinary prudence would use under similar circumstances,
subject to the business judgment rule where applicable.

The Board strongly believes
that the Company’s directors and officers should be held to the highest standards when carrying out their duties to the Company
and our shareholders. Nevertheless, the potential for directors or officers to have personal liability for decisions made or actions taken
on behalf of the Company, including for unintentional mistakes, could adversely affect the ability of our officers to make decisions that
are most appropriate for the Company. Having a director and officer exculpation provision could also decrease the likelihood of litigation
against the Company and its directors and officers or could decrease the costs of defending against such litigation. In addition, the
Board believes that it is necessary to provide protection to directors and officers to the fullest extent permitted by law to attract
and retain top talent who may be enticed to work for another company that provides for exculpation of its directors and officers.

Accordingly, the Peoples board
of directors has unanimously approved, subject to Peoples shareholder approval, an amendment to the Peoples bylaws to add a new Article 25
that would provide for such limitations of liability for officers and directors. Our board of directors also adopted resolutions recommending
that the proposed bylaw amendment be submitted to a vote of our shareholders, together with the board’s recommendation that Peoples
shareholders approve and adopt the proposed bylaw amendment. Approval of Proposal 3 requires the affirmative vote of at least 75 percent
of the votes of which all shareholders are entitled to cast. An abstention, broker non-vote or other failure to vote will have the same
effect as a vote “against” the Peoples proposal to amend the Company’s bylaws.

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The proposed bylaw amendment
provides that its provisions will be deemed to be a contract with each director and officer of the Corporation and each director or officer
will be deemed to be serving as such in reliance on the provisions of the proposed bylaw amendment. The proposed bylaw amendment also
provides that any amendment or repeal of the limitation of liability for directors or