Company: PFIS
Filing Date: 2025-02-04
Form Type: 8-K
Source: 0001104659-25-009129
Chunk: 2

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-02-04
Form: 8-K
Item: Item 5.02
Chunk 2
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sponsored by PFIS or PSBT.

Mr. Bone will be entitled under the employment
agreement to participate in benefit plans sponsored and maintained by PSBT and generally made available to employees and/or executives
and will be eligible to participate in a supplement executive retirement plan. He is also entitled to not less than 25 days of paid time
off each year, of which ten days may be carried over to the following year under the terms and conditions of PSBT’s personnel policies
as in effect from time to time. PSBT will provide Mr. Bone with repayment of annual dues at a country club and/or social club, subject
to approval of the board of directors of PSBT, and he is entitled to full time use of a company car.

If the Bone Employment Agreement is not renewed
at the end of an applicable term, or in the event of the involuntary termination of Mr. Bone’s employment without “cause”
(as defined in the employment agreement) or Mr. Bone’s resignation of employment for “good reason” (as defined in the
employment agreement) during the employment term (in either case, an “involuntary termination”), Mr. Bone shall be entitled
to receive a total severance amount equal to two years base salary at the highest rate in effect during the 12 month period immediately
preceding Mr. Bone’s last day of employment, plus the average cash award paid to Mr. Bone over the last three preceding years from
the Executive Incentive Plan. The total severance amount will be paid in installments over 24 months on the same schedule as Mr. Bone
was paid immediately prior to the date of termination. During the period that Mr. Bone is receiving severance payments, he will also be
entitled to receive, at no-charge, continuation of medical benefits at terms no less favorable than the health and medical benefits in
effect on the date of termination of Mr. Bone employment and including any dependents being covered by Mr. Bone on the date of his termination
who remain eligible for medical benefits under the terms of PSBT’s medical plan. Additionally, if, subsequent to his appointment
as Chief Financial Officer, Mr. Bone resigns from his employment on or prior to December 31, 2025 (where no grounds for “cause”
exist), such resignation shall be deemed a resignation for “good reason”.

In the event that Mr. Bone’s employment
is terminated without “cause” within the 120-day period immediately prior to the closing of a change