Company: PFIS
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0001104659-25-030614
Chunk: 57

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 57
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We are party to an employment
agreement dated September 30, 2016 with Timothy H. Kirtley, our Executive Vice President, Chief Risk Officer and Corporate Secretary,
which was amended as of December 5, 2017 and May 8, 2020 (as amended, the “Kirtley Employment Agreement”). The Kirtley
Employment Agreement is automatically renewed on annual basis date for an annual renewal term unless either party provides notice of non-renewal
in accordance with the provisions of the Kirtley Employment Agreement.

The Kirtley Employment Agreement
provides for an annual base salary, which is subject to annual review by the compensation committee. In 2024, Mr. Kirtley’s
annual base salary increased from $255,000 to $265,000. The Kirtley Employment Agreement also provides that Mr. Kirtley will be eligible
to receive an annual cash incentive payment targeted at 30 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.

The Kirtley Employment Agreement
contains customary confidentiality and restrictive covenant provisions. For a period of 12 months following termination of employment
for any reason other than in connection with a change of control (in which case the applicable period is 24 months), Mr. Kirtley
has agreed that he will not: (1) solicit customers, potential customers or suppliers for or on behalf of a competing business (as
defined under the agreement); (2) recruit employees of the Bank or Company for a competing business; or (3) serve as a director,
officer, employee or investor, or otherwise engage, in a competing business.

John R. Anderson III Severance Agreement

On September 27, 2023,
the compensation committee approved an amended and restated severance agreement with Mr. Anderson. Mr. Anderson’s severance
agreement provides him with certain severance benefits in the event that he is terminated without cause or resigns for good reason (each
as defined in the severance agreement). In the event of such a termination, Mr. Anderson will be entitled to receive, for a period
of 12 months following such termination, monthly payments equal to the sum of 1/12th of Mr. Anderson’s base salary at the time
of termination plus 1/12th of the average annual bonus paid to Mr. Anderson in the 3 fiscal years ending