Document:

EX-10.1

 Exhibit 10.1 

AMENDED AND RESTATED 

DEFERRED COMPENSATION PLAN #2 

THIS DEFERRED COMPENSATION PLAN (this “Agreement”), adopted this 22nd day of April, 2014, by and between by and between Peoples
Security Bank and Trust Company, successor by merger to Penn Security Bank and Trust Company, (the “Employer”), and Craig W. Best (the “Executive”), formalizes the agreements and understanding between the Employer and the
Executive. 
 WITNESSETH: 

WHEREAS, the Executive is employed by the Employer; 

WHEREAS, the Executive is the only employee participating in the Penn Security Bank & Trust Company Deferred Compensation Plan #2
(the “Arrangement”); 
 WHEREAS, the Executive and the Employer now wish to update the Arrangement’s benefit promises by
replacing the Arrangement in its entirety with this Agreement; 
 WHEREAS, the Employer and the Executive intend this Agreement shall at all
times be administered and interpreted in compliance with Code Section 409A, and 
 WHEREAS, in accordance with Code Section 409A,
this Agreement shall not be interpreted to change any of the benefit payment schedules provided for in the Arrangement; and 
 WHEREAS, the
Employer intends this Agreement shall at all times be administered and interpreted in such a manner as to constitute an unfunded nonqualified deferred compensation arrangement, maintained primarily to provide supplemental retirement benefits for the
Executive, a member of select group of management or highly compensated employee of the Employer; 
 NOW THEREFORE, in consideration of the
premises and of the mutual promises herein contained, the Employer and the Executive agree as follows: 
 ARTICLE 1 

DEFINITIONS 
 For the
purpose of this Agreement, the following phrases or terms shall have the indicated meanings: 
 1.1 “Accumulation Period Crediting
Rate” means the Moody’s 20 year AA Corporate Bond Rate as of the last day of the immediately preceding calendar year. 
 1.2
“Administrator” means the Board or its designee. 
 1.3 “Affiliate” means any business entity with whom
the Employer would be considered a single employer under Section 414(b) and 414(c) of the Code. Such term shall be interpreted in a manner consistent with the definition of “service recipient” contained in Code Section 409A. 

 1.4 “Beneficiary” means the person or persons designated in writing by the
Executive to receive benefits hereunder in the event of the Executive’s death. 
 1.5 “Board” means the Board of
Directors of the Employer. 
 1.6 “Cause” means (i) a conviction of, or the entry of a plea of guilty or no contest
to, a felony (ii) fraud, embezzlement or other misappropriation of funds, excluding immaterial and inadvertent action not taken in bad faith and which is remedied by participant within ten (10) days after his receipt of written notice
thereof from the Employer specifying in reasonable detail the alleged improper action; (iii) habitual insobriety or illegal use of controlled drugs; (iv) breach of this Agreement having a material adverse economic effect on the Employer
taken as a whole, if not cured within thirty (30) days following the Executive’s receipt from the Employer of written notice thereof specifying in reasonable detail the alleged breach; or (v) failure to comply with the Employer’s
Executive Stock Ownership Guidelines, as set forth on Appendix B of the Executive’s employment contract: or refusal to perform the lawful and reasonable directives of the Board or Company’s board of directors, unless such refusal is cured
within thirty (30) days following the Executive’s receipt from the Employer of written notice thereof, specifying the directives the Executive’s allegedly refused to perform, or unless the Executive gives written notice of good faith
objection to any such directive based on his reasonable belief that compliance with same would be inconsistent with fiduciary duties or with any applicable law, rule, regulation, order, ordinance, applicable accounting standard, insurance policy,
employee benefit plan or any other material agreement, instrument or undertaking (“Good Faith Objection”). In the event of Good Faith Objection by the Executive, refusal to perform any directive of the Board or Company’s board of
directors shall not be Cause for termination unless Executive persists in such refusal after the Board or Executive, as applicable, obtains, from an independent law firm selected by the Board or Executive in its sole and reasonable discretion, with
a written reasoned legal opinion that it is more likely than not that compliance with the directive at issue would not result in any violation (an “Independent Opinion”). 

1.7 “Change in Control” means a transaction or series of transactions whereby (i) any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than any Employer employee stock ownership plan or an equivalent retirement plan,
becomes the beneficial owner (as such term is used in Section 13(d) of the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding voting
securities, (ii) the Company’s board of directors ceases to consist of a majority of Continuing Directors (as defined below), (iii) the consummation of a sale of all or substantially all of the Company’s assets or a liquidation
(as measured by the fair value of the assets being sold compared to the fair value of all of Company’s assets), or (iv) a merger or other combination occurs such that a majority of the equity securities of the resultant entity after the
transaction are not owned by those who 

  
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owned a majority of the equity securities of the Company prior to the transaction. A “Continuing Director” shall mean a member of the Company’s board of directors who either
(i) is a member of the Company’s board of directors as of the August 6, 2009 or (ii) is nominated or appointed to serve as a director by a majority of the then Continuing Directors. Notwithstanding the forgoing no transaction or
series of transactions shall be considered a “Change in Control” hereunder unless it qualifies as a change in the ownership or effective control of the Employer, or in the ownership of a substantial portion of the assets of the Employer,
as defined in Code Section 409A and regulations thereunder. 
 1.8 “Company” means Peoples Financial Services Corp.,
successor by merger to Penseco Financial Services Corporation. 
 1.9 “Contribution” means the amounts the Employer
contributes to the Contribution Account, calculated according to the provisions of Article 2. 
 1.10 “Claimant” means a
person who believes that he or she is being denied a benefit to which he or she is entitled hereunder. 
 1.11 “Code” means
the Internal Revenue Code of 1986, as amended. 
 1.12 “Contribution Account” means the Employer’s accounting of the
accumulated Contributions plus accrued interest. 
 1.13 “Distribution Period Crediting Rate” means the 10-year Treasury
bond rate as of the date of Separation from Service, plus two percent (2%). 
 1.14 “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended. 
 1.15 “Separation from Service” means a termination of the Executive’s
employment with the Employer and its Affiliates for reasons other than death or Disability. A Separation from Service may occur as of a specified date for purposes of the Agreement even if the Executive continues to provide some services for the
Employer or its Affiliates after that date, provided that the facts and circumstances indicate that the Employer and the Executive reasonably anticipated at that date that either no further services would be performed after that date, or that the
level of bona fide services the Executive would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services
performed over the immediately preceding thirty-six (36) month period (or the full period during which the Executive performed services for the Employer, if that is less than thirty-six (36) months). A Separation from Service will not be
deemed to have occurred while the Executive is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six (6) months or, if longer, the period for which a statute or contract provides the
Executive with the right to reemployment with the Employer. If the Executive’s leave exceeds six (6) months but the Executive is not entitled to reemployment under a statute or contract, the Executive incurs a Separation of Service on the
next day following the expiration of such six (6) month period. In 

  
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determining whether a Separation of Service occurs the Administrator shall take into account, among other things, the definition of “service recipient” and “employer” set
forth in Treasury regulation §1.409A-1(h)(3). The Administrator shall have full and final authority, to determine conclusively whether a Separation from Service occurs, and the date of such Separation from Service. 

1.16 “Specified Employee” means an individual that satisfies the definition of a “key employee” of the Employer as
such term is defined in Code §416(i) (without regard to Code §416(i)(5)), provided that the stock of the Employer is publicly traded on an established securities market or otherwise, as defined in Code §1.897-1(m). If the Executive is
a key employee at any time during the twelve (12) months ending on December 31, the Executive is a Specified Employee for the twelve (12) month period commencing on the first day of the following April. 

ARTICLE 2 
 CONTRIBUTIONS

 2.1 Contributions Generally. The Employer shall contribute the following amounts, at the following times, to the Contribution
Account described in Article 3. 
  

					
	 Date
	  	Contribution	 
	 January 1, 2011
	  	$	61,375	  
	 August 1, 2011
	  	$	60,000	  
	 August 1, 2012
	  	$	60,000	  
	 August 1, 2013
	  	$	60,000	  
	 August 1, 2014
	  	$	60,000	  

 2.2 Employer Contributions. In addition to the Contributions described in Section 2.1, the
Employer may, at any time, make a discretionary contribution to the Contribution Account. Such discretionary contribution amounts may, at the election of the Employer, be subject a vesting schedule or such other provisions as the Employer may
provide. 
 ARTICLE 3 

DEFERRAL ACCOUNT 
 3.1
Establishing and Crediting. The Employer shall establish a Contribution Account on its books for the Executive and shall credit to the Contribution Account the following amounts: 

(a) Any Contributions hereunder; and 

(b) Interest as follows: 

(i) on the last day of each month prior an event giving rise to benefit payment under Article 4, interest shall be credited on
the Contribution Account balance at an annual rate equal to the Accumulation Period Crediting Rate, compounded monthly; and 

(ii) on the last day of each month following Separation from Service, interest shall be credited on the Contribution Account
balance at an annual rate equal to the Distribution Period Crediting Rate, compounded monthly. 

  
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 3.2 Recordkeeping Device Only. The Contribution Account is solely a device for measuring
amounts to be paid under this Agreement and is not a trust fund of any kind. 
 ARTICLE 4 

PAYMENT OF BENEFITS 
 4.1
Normal Benefit. Except as provided in Section 4.2, upon Separation from Service the Employer shall pay the Executive the Contribution Account balance calculated at Separation from Service in lieu of any other benefit hereunder. This
benefit shall be paid in one hundred twenty (120) consecutive monthly installments and shall commence the month following Separation from Service. 

4.2 Change in Control Benefit. If a Change in Control occurs, followed within twenty-four (24) months by Separation from Service,
the Employer shall pay the Executive the Contribution Account balance in lieu of any other benefit hereunder. This benefit shall be paid in a lump sum within forty-five (45) days following Separation from Service, with the actual date of
payment determined by the Employer in its sole discretion. 
 4.3 Death Prior to Commencement of Benefit Payments. In the event the
Executive dies prior to Separation from Service, the Employer shall pay the Beneficiary the Contribution Account balance in lieu of any other benefit hereunder. This benefit shall be paid in a lump sum within forty-five (45) days of the
Executive’s death, with the actual date of payment determined by the Employer in its sole discretion. 
 4.4 Death or Change
in Control Subsequent to Commencement of Benefit Payments. In the event that, while the Executive or Beneficiary is receiving payments, but prior to receiving all payments due and owing hereunder, (i) a Change in Control takes place or
(ii) the Executive dies, the Employer shall pay the Executive or Beneficiary the Contribution Account balance in a lump sum within forty-five (45) days of the Executive’s death or the Change in Control. 

4.5 Termination for Cause. If the Employer terminates the Executive’s employment for Cause, then the Executive shall forfeit all
amounts credited to the Contribution Account. 
 4.6 Restriction on Commencement of Distributions. Notwithstanding any provision
of this Agreement to the contrary, if the Executive is considered a Specified Employee at the time of Separation from Service, the provisions of this Section shall govern all distributions hereunder. Distributions which would otherwise be made to
the Executive due to Separation from Service shall not be made during the first six (6) months following Separation from Service. Rather, any distribution which would otherwise be paid to the Executive during such period shall be accumulated
and paid to the Executive in a lump sum on the first day of the seventh month following Separation from Service, or if earlier, upon the Executive’s death. All subsequent distributions shall be paid as they would have had this Section not
applied. 

  
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 4.7 Acceleration of Payments. Except as specifically permitted herein, no acceleration of
the time or schedule of any payment may be made hereunder. Notwithstanding the foregoing, payments may be accelerated, in accordance with the provisions of Treasury Regulation §1.409A-3(j)(4) in the following circumstances: (i) as a result
of certain domestic relations orders; (ii) in compliance with ethics agreements with the federal government; (iii) in compliance with the ethics laws or conflicts of interest laws; (iv) in limited cashouts (but not in excess of the
limit under Code §402(g)(1)(B)); (v) to pay employment-related taxes; or (vi) to pay any taxes that may become due at any time that the Agreement fails to meet the requirements of Code Section 409A. 

4.8 Delays in Payment by Employer. A payment may be delayed to a date after the designated payment date under any of the circumstances
described below, and the provision will not fail to meet the requirements of establishing a permissible payment event. The delay in the payment will not constitute a subsequent deferral election, so long as the Employer treats all payments to
similarly situated Participants on a reasonably consistent basis. 
 (a) Payments subject to Code Section 162(m).
If the Employer reasonably anticipates that the Employer’s deduction with respect to any distribution under this Agreement would be limited or eliminated by application of Code Section 162(m), then to the extent deemed necessary by the
Employer to ensure that the entire amount of any distribution from this Agreement is deductible, the Employer may delay payment of any amount that would otherwise be distributed under this Agreement. The delayed amounts shall be distributed to the
Executive (or the Beneficiary in the event of the Executive’s death) at the earliest date the Employer reasonably anticipates that the deduction of the payment of the amount will not be limited or eliminated by application of Code
Section 162(m). 
 (b) Payments that would violate Federal securities laws or other applicable law. A payment may
be delayed where the Employer reasonably anticipates that the making of the payment will violate Federal securities laws or other applicable law provided that the payment is made at the earliest date at which the Employer reasonably anticipates that
the making of the payment will not cause such violation. The making of a payment that would cause inclusion in gross income or the application of any penalty provision of the Internal Revenue Code is not treated as a violation of law. 

(c) Solvency. Notwithstanding the above, a payment may be delayed where the payment would jeopardize the ability of the
Employer to continue as a going concern. 
 4.9 Treatment of Payment as Made on Designated Payment Date. Solely for purposes of
determining compliance with Code Section 409A, any payment under this Agreement made after the required payment date shall be deemed made on the required payment date provided that such payment is made by the latest of: (i) the end of the

  
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calendar year in which the payment is due; (ii) the 15th day of the third calendar month following the payment due date; (iii) if
Employer cannot calculate the payment amount on account of administrative impracticality which is beyond the Executive’s control, the end of the first calendar year which payment calculation is practicable; and (iv) if Employer does not
have sufficient funds to make the payment without jeopardizing the Employer’s solvency, in the first calendar year in which the Employer’s funds are sufficient to make the payment. 

4.10 Facility of Payment. If a distribution is to be made to a minor, or to a person who is otherwise incompetent, then the
Administrator may make such distribution: (i) to the legal guardian, or if none, to a parent of a minor payee with whom the payee maintains his or her residence; or (ii) to the conservator or administrator or, if none, to the person having
custody of an incompetent payee. Any such distribution shall fully discharge the Employer and the Administrator from further liability on account thereof. 

4.11 Changes in Form of Timing of Benefit Payments. The Employer and the Executive may, subject to the terms hereof, amend this
Agreement to delay the timing or change the form of payments. Any such amendment: 
 (a) must take effect not less than
twelve (12) months after the amendment is made; 
 (b) must, for benefits distributable due solely to the arrival of a
specified date, or on account of Separation from Service or Change in Control, delay the commencement of distributions for a minimum of five (5) years from the date the first distribution was originally scheduled to be made; 

(c) must, for benefits distributable due solely to the arrival of a specified date, be made not less than twelve
(12) months before distribution is scheduled to begin; and 
 (d) may not accelerate the time or schedule of any
distribution. 
 ARTICLE 5 

BENEFICIARIES 
 5.1
Designation of Beneficiaries. The Executive may designate any person to receive any benefits payable under the Agreement upon the Executive’s death, and the designation may be changed from time to time by the Executive by filing a new
designation. Each designation will revoke all prior designations by the Executive, shall be in the form prescribed by the Administrator and shall be effective only when filed in writing with the Administrator during the Executive’s lifetime. If
the Executive names someone other than the Executive’s spouse as a Beneficiary, the Administrator may, in its sole discretion, determine that spousal consent is required to be provided in a form designated by the Administrator, executed by the
Executive’s spouse and returned to the Administrator. The Executive’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and the
marriage is subsequently dissolved. 

  
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 5.2 Absence of Beneficiary Designation. In the absence of a valid Beneficiary designation,
or if, at the time any benefit payment is due to a Beneficiary, there is no living Beneficiary validly named by the Executive, the Employer shall pay the benefit payment to the Executive’s spouse. If the spouse is not living then the Employer
shall pay the benefit payment to the Executive’s living descendants per stirpes, and if there no living descendants, to the Executive’s estate. In determining the existence or identity of anyone entitled to a benefit payment, the
Employer may rely conclusively upon information supplied by the Executive’s personal representative, executor, or administrator. 

ARTICLE 6 

ADMINISTRATION 
 6.1
Administrator Duties. The Administrator shall be responsible for the management, operation, and administration of the Agreement. When making a determination or calculation, the Administrator shall be entitled to rely on information furnished
by the Employer, Executive or Beneficiary. No provision of this Agreement shall be construed as imposing on the Administrator any fiduciary duty under ERISA or other law, or any duty similar to any fiduciary duty under ERISA or other law. 

6.2 Administrator Authority. The Administrator shall enforce this Agreement in accordance with its terms, shall be charged with the
general administration of this Agreement, and shall have all powers necessary to accomplish its purposes. 
 6.3 Binding Effect of
Decision. The decision or action of the Administrator with respect to any question arising out of or in connection with the administration, interpretation or application of this Agreement and the rules and regulations promulgated hereunder shall
be final, conclusive and binding upon all persons having any interest in this Agreement. 
 6.4 Compensation, Expenses and Indemnity.
The Administrator shall serve without compensation for services rendered hereunder. The Administrator is authorized at the expense of the Employer to employ such legal counsel and recordkeeper as it may deem advisable to assist in the performance of
its duties hereunder. Expense and fees in connection with the administration of this Agreement shall be paid by the Employer. 
 6.5
Employer Information. The Employer shall supply full and timely information to the Administrator on all matters relating to the Executive’s compensation, death, Disability or Separation from Service, and such other information as the
Administrator reasonably requires. 
 6.6 Termination of Participation. If the Administrator determines in good faith that the
Executive no longer qualifies as a member of a select group of management or highly compensated employees, as determined in accordance with ERISA, the Administrator shall have the right, in its sole discretion, to prohibit the Employer from making
any additional Contributions hereunder. 

  
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 6.7 Compliance with Code Section 409A. The Employer and the Executive intend that the
Agreement comply with the provisions of Code Section 409A to prevent the inclusion in gross income of any amounts deferred hereunder in a taxable year prior to the year in which amounts are actually paid to the Executive or Beneficiary. This
Agreement shall be construed, administered and governed in a manner that affects such intent, and the Administrator shall not take any action that would be inconsistent therewith. 

ARTICLE 7 
 CLAIMS AND
REVIEW PROCEDURES 
 7.1 Claims Procedure. A Claimant who has not received benefits under this Agreement that he or she believes
should be distributed shall make a claim for such benefits as follows. 
 (a) Initiation – Written Claim. The
Claimant initiates a claim by submitting to the Administrator a written claim for the benefits. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was
received by the Claimant. All other claims must be made within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the
Claimant. 
 (b) Timing of Administrator Response. The Administrator shall respond to such Claimant within
ninety (90) days after receiving the claim. If the Administrator determines that special circumstances require additional time for processing the claim, the Administrator can extend the response period by an additional ninety (90) days by
notifying the Claimant in writing, prior to the end of the initial ninety (90) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Administrator expects
to render its decision. 
 (c) Notice of Decision. If the Administrator denies part or all of the claim, the
Administrator shall notify the Claimant in writing of such denial. The Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth: (i) the specific reasons for the
denial; (ii) a reference to the specific provisions of this Agreement on which the denial is based; (iii) a description of any additional information or material necessary for the Claimant to perfect the claim and an explanation of why it
is needed; (iv) an explanation of this Agreement’s review procedures and the time limits applicable to such procedures; and (v) a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following
an adverse benefit determination on review. 

  
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 7.2 Review Procedure. If the Administrator denies part or all of the claim, the Claimant
shall have the opportunity for a full and fair review by the Administrator of the denial as follows. 
 (a) Initiation
– Written Request. To initiate the review, the Claimant, within sixty (60) days after receiving the Administrator’s notice of denial, must file with the Administrator a written request for review. 

(b) Additional Submissions – Information Access. The Claimant shall then have the opportunity to submit written
comments, documents, records and other information relating to the claim. The Administrator shall also provide the Claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant
(as defined in applicable ERISA regulations) to the Claimant’s claim for benefits. 
 (c) Considerations on
Review. In considering the review, the Administrator shall take into account all materials and information the Claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit
determination. 
 (d) Timing of Administrator Response. The Administrator shall respond in writing to such Claimant
within sixty (60) days after receiving the request for review. If the Administrator determines that special circumstances require additional time for processing the claim, the Administrator can extend the response period by an additional sixty
(60) days by notifying the Claimant in writing, prior to the end of the initial sixty (60) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the
Administrator expects to render its decision. 
 (e) Notice of Decision. The Administrator shall notify the Claimant
in writing of its decision on review. The Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth: (a) the specific reasons for the denial; (b) a reference to the
specific provisions of this Agreement on which the denial is based; (c) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information
relevant (as defined in applicable ERISA regulations) to the Claimant’s claim for benefits; and (d) a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a). 

ARTICLE 8 
 AMENDMENT AND
TERMINATION 
 8.1 Amendment. This Agreement may be amended unilaterally by the Employer at any time by providing written notice
of such amendment to the Executive. 
 8.2 Agreement Termination Generally. This Agreement may be terminated unilaterally by the
Employer at any time by providing written notice of such termination to the Executive. Such termination shall not automatically cause a distribution of benefits under this Agreement. Rather, unless the provisions of Section 8.3 apply, upon such
termination benefit distributions will be made at the earliest distribution event permitted under Article 4. 
 8.4 Effect of Complete
Termination. Notwithstanding anything to the contrary in Section 8.3, and subject to the requirements of Code Section 409A and Treasury 

  
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Regulations §1.409A-3(j)(4)(ix), at certain times the Employer may completely terminate and liquidate the Agreement. In the event of such a complete termination, the Employer shall pay the
Contribution Account balance to the Executive. Such complete termination of the Agreement shall occur only under the following circumstances and conditions. 

(a) Corporate Dissolution or Bankruptcy. The Employer may terminate and liquidate this Agreement within twelve
(12) months of a corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), provided that all benefits paid under the Agreement are included in the
Executive’s gross income in the latest of: (i) the calendar year which the termination occurs; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year
in which the payment is administratively practicable. 
 (b) Change in Control. The Employer may terminate and
liquidate this Agreement by taking irrevocable action to terminate and liquidate within the thirty (30) days preceding or the twelve (12) months following a Change in Control. This Agreement will then be treated as terminated only if all
substantially similar arrangements sponsored by the Company which are treated as deferred under a single plan under Treasury Regulations §1.409A-1(c)(2) are terminated and liquidated with respect to each participant who experienced the Change
in Control so that the Executive and any participants in any such similar arrangements are required to receive all amounts of compensation deferred under the terminated arrangements within twelve (12) months of the date the Employer takes the
irrevocable action to terminate the arrangements. 
 (c) Discretionary Termination. The Employer may terminate and
liquidate this Agreement provided that: (i) the termination does not occur proximate to a downturn in the financial health of the Company; (ii) all arrangements sponsored by the Employer and Affiliates that would be aggregated with any
terminated arrangements under Treasury Regulations §1.409A-1(c) are terminated; (iii) no payments, other than payments that would be payable under the terms of this Agreement if the termination had not occurred, are made within twelve
(12) months of the date the Employer takes the irrevocable action to terminate this Agreement; (iv) all payments are made within twenty-four (24) months following the date the Employer takes the irrevocable action to terminate and
liquidate this Agreement; and (v) neither the Employer nor any of its Affiliates adopt a new arrangement that would be aggregated with any terminated arrangement under Treasury Regulations §1.409A-1(c) if the Executive participated in both
arrangements, at any time within three (3) years following the date the Employer takes the irrevocable action to terminate this Agreement. 

ARTICLE 9 
 MISCELLANEOUS

 9.1 No Effect on Other Rights. This Agreement constitutes the entire agreement between the Employer and the Executive as to
the subject matter hereof. No rights are granted to the Executive by virtue of this Agreement other than those specifically set forth 

  
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herein. Nothing contained herein will confer upon the Executive the right to be retained in the service of the Employer nor limit the right of the Employer to discharge or otherwise deal with the
Executive without regard to the existence hereof. 
 9.2 State Law. To the extent not governed by ERISA, the provisions of this
Agreement shall be construed and interpreted according to the internal law of the Commonwealth of Pennsylvania without regard to its conflicts of laws principles. 

9.3 Validity. In case any provision of this Agreement shall be illegal or invalid for any reason, said illegality or invalidity shall
not affect the remaining parts hereof, but this Agreement shall be construed and enforced as if such illegal or invalid provision had never been inserted herein. 

9.4 Nonassignability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any
manner. 
 9.5 Unsecured General Creditor Status. Payment to the Executive or any Beneficiary hereunder shall be made from assets
which shall continue, for all purposes, to be part of the general, unrestricted assets of the Employer and no person shall have any interest in any such asset by virtue of any provision of this Agreement. The Employer’s obligation hereunder
shall be an unfunded and unsecured promise to pay money in the future. In the event that the Employer purchases an insurance policy insuring the life of the Executive to recover the cost of providing benefits hereunder, neither the Executive nor the
Beneficiary shall have any rights whatsoever in said policy or the proceeds therefrom. 
 9.6 Life Insurance. If the Employer chooses
to obtain insurance on the life of the Executive in connection with its obligations under this Agreement, the Executive hereby agrees to take such physical examinations and to truthfully and completely supply such information as may be required by
the Employer or the insurance company designated by the Employer. 
 9.7 Unclaimed Benefits. The Executive shall keep the Employer
informed of the Executive’s current address and the current address of the Beneficiary. If the location of the Executive is not made known to the Employer within three years after the date upon which any payment of any benefits may first be
made, the Employer shall delay payment of the Executive’s benefit payment(s) until the location of the Executive is made known to the Employer; however, the Employer shall only be obligated to hold such benefit payment(s) for the Executive
until the expiration of three (3) years. Upon expiration of the three (3) year period, the Employer may discharge its obligation by payment to the Beneficiary. If the location of the Beneficiary is not made known to the Employer by the end
of an additional two (2) month period following expiration of the three (3) year period, the Employer may discharge its obligation by payment to the Executive’s estate. If there is no estate in existence at such time or if such fact
cannot be determined by the Employer, the Executive and Beneficiary shall thereupon forfeit all rights to any benefits provided under this Agreement. 

  
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 9.8 Removal. Notwithstanding anything in this Agreement to the contrary, the Employer
shall not distribute any benefit under this Agreement if the Executive is subject to a final removal or prohibition order issued pursuant to Section 8(e) of the Federal Deposit Insurance Act. Furthermore, any payments made to the Executive
pursuant to this Agreement shall, if required, comply with 12 U.S.C. 1828, FDIC Regulation 12 CFR Part 359 and any other regulations or guidance promulgated thereunder. 

9.9 Notice. Any notice, consent or demand required or permitted to be given to the Employer or Administrator under this Agreement shall
be sufficient if in writing and hand-delivered or sent by registered or certified mail to the Employer’s principal business office. Any notice or filing required or permitted to be given to the Executive or Beneficiary under this Agreement
shall be sufficient if in writing and hand-delivered or sent by mail to the last known address of the Executive or Beneficiary, as appropriate. Any notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the
date shown on the postmark or on the receipt for registration or certification. 
 9.10 Headings and Interpretation. Headings and
sub-headings in this Agreement are inserted for reference and convenience only and shall not be deemed part of this Agreement. Wherever the fulfillment of the intent and purpose of this Agreement requires and the context will permit, the use of the
masculine gender includes the feminine and use of the singular includes the plural. 
 9.11 Alternative Action. In the event it
becomes impossible for the Employer or the Administrator to perform any act required by this Agreement due to regulatory or other constraints, the Employer or Administrator may perform such alternative act as most nearly carries out the intent and
purpose of this Agreement and is in the best interests of the Employer, provided that such alternative act does not violate Code Section 409A. 

9.12 Coordination with Other Benefits. The benefits provided for the Executive or the Beneficiary under this Agreement are in addition
to any other benefits available to the Executive under any other plan or program for employees of the Employer. This Agreement shall supplement and shall not supersede, modify, or amend any other such plan or program except as may otherwise be
expressly provided herein. 
 9.13 Inurement. This Agreement shall be binding upon and shall inure to the benefit of the Employer,
its successor and assigns, and the Executive, the Executive’s successors, heirs, executors, administrators, and the Beneficiary. 

9.14 Tax Withholding. The Employer may make such provisions and take such action as it deems necessary or appropriate for the
withholding of any taxes which the Employer is required by any law or regulation to withhold in connection with any benefits under the Agreement. The Executive shall be responsible for the payment of all individual tax liabilities relating to any
benefits paid hereunder. 
 9.15 Aggregation of Agreement. If the Employer offers other account balance deferred compensation plans
in addition to this Agreement, this Agreement and those plans shall be treated as a single plan to the extent required under Code Section 409A. 

  
 13 

 IN WITNESS WHEREOF, the Executive and a representative of the Employer have executed this
Agreement document as indicated below: 
  

							
	Executive:	 		 	Employer:
		 		 	Peoples Security Bank and Trust Company
				
	 /s/ Craig W. Best
	 		 	By:	 	 /s/ Michael Jake

	Craig W. Best	 		 	Its:	 	 Executive Vice President

  
 14EX-10.2

 Exhibit 10.2 

Peoples Financial Services Corp. 

Supplemental Executive Retirement Plan Agreement 

This Supplemental Executive Retirement Plan Agreement (this “Agreement”) is adopted effective as of April 22, 2014, by
and among Peoples Security Bank and Trust Company, a Pennsylvania state chartered bank (the “Bank”), Peoples Financial Services Corp., a Pennsylvania corporation (the “Corporation”), and Joseph M. Ferretti (the
“Executive”). 
 WHEREAS, the purpose of this Agreement is to provide specified benefits to the Executive, a member
of a select group of management or highly compensated employees who contribute materially to the continued growth, development and future business success of the Bank, in accordance with section 3.4(d) of that certain Employment Agreement, dated as
of December 1, 2013, by and among the Corporation, the Bank and the Executive; and 
 WHEREAS, the Executive is currently
employed by the Bank, and is qualified by education and experience to serve as the Bank’s Senior Vice President and Co-Chief Lending Officer – North. 

NOW THEREFORE, the parties hereto, intending to be legally bound, agree as follows: 

Article 1 
 Definitions

 Whenever used in this Agreement, the following words and phrases shall have the meanings specified: 

 

	1.1	“Beneficiary” means each designated person or entity, or the estate of the deceased Executive, entitled to any benefits upon the death of the Executive pursuant to Article 4. 

 

	1.2	“Beneficiary Designation Form” means the form established from time to time by the Plan Administrator that the Executive completes, signs and returns to the Plan Administrator to designate one or more
Beneficiaries. 

  

	1.3	“Board” means the Board of Directors of the Corporation as from time to time constituted. 

  

	1.4	“Change in Control” shall have the meaning given it in the Employment Agreement. 

  

	1.5	“Code” means the Internal Revenue Code of 1986, as amended, and all regulations and guidance thereunder, including such regulations and guidance as may be promulgated after the Effective Date.

  

	1.6	“Disability” shall have the meaning given it in the Employment Agreement. 

  

	1.7	“Effective Date” means the Effective Time as defined in the Merger Agreement. 

  

	1.8	“Employment Agreement” means that certain Employment Agreement, dated as of December 1, 2013, by and among the Corporation, the Bank and the Executive, as may be amended from time to time.

  

	1.9	“Normal Retirement Age” means age sixty-five (65). 

  

	1.10	“Normal Retirement Date” means the later of Normal Retirement Age or Separation from Service. 

  

	1.11	“Plan Administrator” means the Board or such committee or person as the Board shall appoint. 

  

	1.12	“Plan Year” means each twelve (12) month period commencing on January 1 and ending on December 31 of each year. 

	1.13	“Separation from Service” means termination of the Executive’s employment with the Bank (and Corporation, if applicable) constituting a “separation from service” within its meaning under
Treasury Regulations Section 1.409A-1(h). 

  

	1.14	“Schedule A” means the schedule attached to this Agreement and made a part hereof. Schedule A shall be updated upon a change in any of the benefit amounts under Article 2 or 3. 

 

	1.15	“Specified Employee” means a “specified employee” as defined in Treasury Regulations Section 1.409A-1(i). 

 

	1.16	“Termination for Cause” means a Separation from Service in connection with a termination of Executive’s employment by the Bank for Cause (as defined in the Employment Agreement). 

 

	1.17	“Termination without Cause” means a Separation from Service in connection with a termination of Executive’s employment by the Bank without Cause (as defined in the Employment Agreement).

 Article 2 

Distributions During Lifetime 
  

	2.1	Normal Retirement Benefit. Upon Separation from Service on or after attaining Normal Retirement Age, the Bank shall distribute to the Executive the benefit described in this Section 2.1 in lieu of any other
benefit under this Article. 

  

	 	2.1.1	Amount of Benefit. The annual benefit under this Section 2.1 is Forty Thousand Dollars ($40,000). 

  

	 	2.1.2	Distribution of Benefit. The Bank shall distribute the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following Normal Retirement Date. The
annual benefit shall be distributed to the Executive for ten (10) years. 

  

	2.2	Disability Benefit. If the Executive experiences a Disability which results in a Separation from Service prior to Normal Retirement Age, the Bank shall distribute to the Executive the benefit described in this
Section 2.2 in lieu of any other benefit under this Article. 

  

	 	2.2.1	Amount of Benefit. The benefit under this Section 2.2 is the Disability Benefit set forth on Schedule A for the Plan Year ended immediately prior to the date in which Separation from Service due to
Disability occurs. Additionally, the annual benefit amount shall be increased by a pro-rated amount relative to the Executive’s service during the partial Plan Year in which Separation from Service takes place. This amount will be added to the
Annual Benefit amount at the end of the preceding Plan Year on Schedule A. 

  

	 	2.2.2	Distribution of Benefit. The Bank shall distribute the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following Separation from Service.
The annual benefit shall be distributed to the Executive for ten (10) years. 

  

	2.3	Change in Control Benefit. If a Change in Control occurs prior to Normal Retirement Age followed by a Termination without Cause within twenty-four (24) months following the Change in Control, the Bank shall
distribute to the Executive the benefit described in this Section 2.3 in lieu of any other benefit under this Article. 

  
 2 

	 	2.3.1	Amount of Benefit. The annual benefit under this Section 2.3 is the Change in Control benefit set forth on Schedule A for the Plan Year ended immediately prior to the date Separation from Service occurs.
Additionally, the annual benefit amount shall be increased by a pro-rated amount relative to the Executive’s service during the partial Plan Year in which Separation from Service takes place. This amount will be added to the Annual Benefit
amount at the end of the preceding Plan Year on Schedule A. 

  

	 	2.3.2	Distribution of Benefit. The Bank shall distribute the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following Separation from Service.
The annual benefit shall be distributed to the Executive for ten (10) years. 

  

	2.4	Termination without Cause Prior to Normal Retirement Age. If the Executive experiences a Termination without Cause during or before the Plan Year in which the Executive attains Normal Retirement Age, the Bank
shall distribute to the Executive the benefit described in this Section 2.4 in lieu of any other benefit under this Article. 

  

	 	2.4.1	Amount of Benefit. The benefit under this Section 2.4 is the Termination without Cause Benefit set forth on Schedule A for the Plan Year ended immediately prior to the date in which the Termination without
Cause prior to Normal Retirement Age occurs. Additionally, the annual benefit amount shall be increased by a pro-rated amount relative to the Executive’s service during the partial Plan Year in which such Separation from Service takes place.
This amount will be added to the Annual Benefit amount at the end of the preceding Plan Year on Schedule A. 

  

	 	2.4.2	Distribution of Benefit. The Bank shall distribute the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following the Termination without
Cause. The annual benefit shall be distributed to the Executive for ten (10) years. 

  

	2.5	Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Executive is considered a Specified Employee, the provisions of this Section 2.5
shall govern all distributions hereunder. If benefit distributions which would otherwise be made to the Executive due to Separation from Service are limited because the Executive is a Specified Employee, then such distributions shall not be made
during the first six (6) months following Separation from Service. Rather, any distribution which would otherwise be paid to the Executive during such period shall be accumulated and paid to the Executive in a lump sum on the first day of the
seventh month following Separation from Service. All subsequent distributions shall be paid in the manner specified. 

  

	2.6	Distributions Upon Taxation of Amounts Deferred. If, pursuant to Code Section 409A, the Federal Insurance Contributions Act or other state, local or foreign tax, the Executive becomes subject to tax on the
amounts deferred hereunder, then the Bank may make a limited distribution to the Executive in a manner that conforms to the requirements of Code Section 409A. Any such distribution will decrease the Executive’s benefits distributable under
this Agreement. 

  

	2.7	Change in Form or Timing of Distributions. For distribution of benefits under this Article 2, the Executive and the Bank may, subject to the terms of Section 8.1, amend this Agreement to delay the
timing or change the form of distributions. Any such amendment shall be subject to approval by the Bank in its sole and absolute discretion and: 

  

	 	(a)	may not accelerate the time or schedule of any distribution, except as provided in Code Section 409A; 

  
 3 

	 	(b)	except for benefits distributable under Section 2.2, must delay the commencement of distributions for a minimum of five (5) years from the date the distribution was originally scheduled to be made; and 

  

	 	(c)	must take effect not less than twelve (12) months after the amendment is made. 

  

Article 3 
 Distribution
at Death 
  

	3.1	Death During Active Service. If the Executive dies prior to Separation from Service, the Bank shall distribute to the Beneficiary the benefit described in this Section 3.1. This benefit shall be distributed
in lieu of any benefit under Article 2. 

  

	 	3.1.1	Amount of Benefit. The benefit under this Section 3.1 is the Normal Retirement Benefit as described in Section 2.1.1. 

 

	 	3.1.2	Distribution of Benefit. The Bank shall distribute the annual benefit to the Beneficiary in twelve (12) equal monthly installments commencing within sixty (60) days following the Executive’s death.
The annual benefit shall be distributed to the Beneficiary for ten (10) years. The Beneficiary shall be required to provide to the Bank the Executive’s death certificate. 

 

	3.2	Death During Distribution of a Benefit. If the Executive dies after any benefit distributions have commenced under this Agreement but before receiving all such distributions, the Bank shall distribute the
remaining benefits to the Beneficiary at the same time and in the same amounts they would have paid to the Executive had the Executive survived. The Beneficiary shall be required to provide to the Bank the Executive’s death certificate.

 Article 4 

Beneficiaries 
  

	4.1	In General. The Executive shall have the right, at any time, to designate a Beneficiary to receive any benefit distributions under this Agreement upon the death of the Executive. The Beneficiary designated under
this Agreement may be the same as or different from the beneficiary designated under any other plan of the Bank in which the Executive participates. 

  

	4.2	Designation. The Executive shall designate a Beneficiary by completing and signing the Beneficiary Designation Form and delivering it to the Plan Administrator or its designated agent. If the Executive names
someone other than the Executive’s spouse as a Beneficiary, the Plan Administrator may, in its sole discretion, determine that spousal consent is required to be provided in a form designated by the Plan Administrator, executed by the
Executive’s spouse and returned to the Plan Administrator. The Executive’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and the
marriage is subsequently dissolved. The Executive shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Plan Administrator’s rules and procedures.
Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be cancelled. The Plan Administrator shall be entitled to rely on the last Beneficiary Designation Form filed by
the Executive and accepted by the Plan Administrator prior to the Executive’s death. 

  
 4 

	4.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Plan Administrator or its designated agent.

  

	4.4	No Beneficiary Designation. If the Executive dies without a valid beneficiary designation, or if all designated Beneficiaries predecease the Executive, then the Executive’s spouse shall be the designated
Beneficiary. If the Executive has no surviving spouse, any benefit shall be paid to the Executive’s estate. 

  

	4.5	Facility of Distribution. If the Plan Administrator determines in its discretion that a benefit is to be distributed to a minor, to a person declared incompetent or to a person incapable of handling the
disposition of that person’s property, the Plan Administrator may direct distribution of such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person. The Plan
Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any distribution of a benefit shall be a distribution for the account of the Executive and the Beneficiary, as
the case may be, and shall completely discharge any liability under this Agreement for such distribution amount. 

 Article
5 
 General Limitations 
  

	5.1	Termination for Cause; Other Events. Notwithstanding any provision of this Agreement to the contrary, the Bank shall not distribute any benefit under this Agreement if (i) the Executive’s employment
with the Bank is terminated by the Bank due to a Termination for Cause or (ii) the Executive has a Separation from Service other than one explicitly described under Sections 2.1 through 2.4 or Article 3. 

 

	5.2	Suicide or Misstatement. No benefit shall be distributed if the Executive commits suicide within two (2) years after the Effective Date, or if an insurance company which issued a life insurance policy
covering the Executive and owned by the Bank denies coverage (i) for material misstatements of fact made by the Executive on an application for such life insurance, or (ii) for any other reason. 

 

	5.3	Removal. Notwithstanding any provision of this Agreement to the contrary, the Bank shall not distribute any benefit under this Agreement if the Executive is subject to a final removal or prohibition order issued
by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act. 

  

	5.4	Regulatory Restrictions. Notwithstanding anything herein to the contrary, any payments made to the Executive pursuant to this Agreement, or otherwise, shall be subject upon compliance with 12 U.S.C. 1828 and FDIC
Regulation 12 CFR Part 359, Golden Parachute Indemnification Payments and any other regulations or guidance promulgated thereunder. 

  

	5.5	Section 280G. If any payment or benefit due under this Agreement, together with all other payments and benefits that the Executive receives or is entitled to receive from the Bank, the Corporation or any of
their subsidiaries, affiliates or related entities, would (if paid or provided) constitute a “parachute payment” (within the meaning under Section 280G(b)(2) of the Code) or an excise tax under Section 4999 of the Code, the
amounts otherwise payable under this Agreement will be limited to the minimum extent necessary to ensure that no portion thereof will fail to be tax-deductible to the Corporation and Bank by reason of Section 280G of the Code or subject to an
excise tax under Section 4999 of the Code. 

  

	5.6	Competition after Separation from Service. Any unpaid benefits shall be forfeited if the Executive breaches the Employment Agreement, including, without limitation, any restrictive covenant in Article IV thereof.

  
 5 

 Article 6 

Administration of Agreement 
  

	6.1	Plan Administrator Duties. The Plan Administrator shall administer this Agreement according to its express terms and shall also have the discretion and authority to (i) make, amend, interpret and enforce all
appropriate rules and regulations for the administration of this Agreement and (ii) decide or resolve any and all questions, including interpretations of this Agreement, as may arise in connection with this Agreement to the extent the exercise
of such discretion and authority does not conflict with Code Section 409A. 

  

	6.2	Agents. In the administration of this Agreement, the Plan Administrator may employ agents and delegate to them such administrative duties as the Plan Administrator sees fit, including acting through a duly
appointed representative, and may from time to time consult with counsel who may be counsel to the Bank. 

  

	6.3	Binding Effect of Decisions. Any decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation or application of this Agreement
and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this Agreement. 

  

	6.4	Indemnity of Plan Administrator. The Bank shall indemnify and hold harmless the Plan Administrator against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act
with respect to this Agreement, except in the case of willful misconduct by the Plan Administrator. 

  

	6.5	Bank Information. To enable the Plan Administrator to perform its functions, the Bank shall supply full and timely information to the Plan Administrator on all matters relating to the date and circumstances of
the Executive’s death, Disability or Separation from Service, and such other pertinent information as the Plan Administrator may reasonably require. 

Article 7 
 Claims And
Review Procedures 
  

	7.1	Claims Procedure. An Executive or Beneficiary (“claimant”) who has not received benefits under this Agreement that he or she believes should be distributed shall make a claim for such benefits as
follows: 

  

	 	7.1.1	Initiation – Written Claim. The claimant initiates a claim by submitting to the Plan Administrator a written claim for the benefits. If such a claim relates to the contents of a notice received by the
claimant, the claim must be made within sixty (60) days after such notice was received by the claimant. All other claims must be made within one hundred eighty (180) days of the date on which the event that caused the claim to arise
occurred. The claim must state with particularity the determination desired by the claimant. 

  

	 	7.1.2	Timing of Plan Administrator Response. The Plan Administrator shall respond to such claimant within thirty (30) days after receiving the claim. If the Plan Administrator determines that special circumstances
require additional time for processing the claim, the Plan Administrator can extend the response period by an additional thirty (30) days by notifying the claimant in writing, prior to the end of the initial thirty (30) day period, which
an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision. 

  
 6 

	 	7.1.3	Notice of Decision. If the Plan Administrator denies part or all of the claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall write the notification in a
manner calculated to be understood by the claimant. The notification shall set forth: 

  

	 	(a)	The specific reasons for the denial; 

  

	 	(b)	A reference to the specific provisions of this Agreement on which the denial is based; 

  

	 	(c)	A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed; 

 

	 	(d)	An explanation of this Agreement’s review procedures and the time limits applicable to such procedures; and 

  

	 	(e)	A statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review. 

 

	7.2	Review Procedure. If the Plan Administrator denies part or the entire claim, the claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial as follows:

  

	 	7.2.1	Initiation – Written Request. To initiate the review, the claimant, within sixty (60) days after receiving the Plan Administrator’s notice of denial, must file with the Plan Administrator a written
request for review. 

  

	 	7.2.2	Additional Submissions – Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim. The Plan Administrator
shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits.

  

	 	7.2.3	Considerations on Review. In considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating to the claim, without regard to whether such
information was submitted or considered in the initial benefit determination. 

  

	 	7.2.4	Timing of Plan Administrator Response. The Plan Administrator shall respond in writing to such claimant within thirty (30) days after receiving the request for review. If the Plan Administrator determines
that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional thirty (30) days by notifying the claimant in writing, prior to the end of the initial thirty
(30) day period, which an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision. 

 

	 	7.2.5	Notice of Decision. The Plan Administrator shall notify the claimant in writing of its decision on review. The Plan Administrator shall write the notification in a manner calculated to be understood by the
claimant. The notification shall set forth: 

  

	 	(a)	The specific reasons for the denial; 

  

	 	(b)	A reference to the specific provisions of this Agreement on which the denial is based; 

  

	 	(c)	A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA
regulations) to the claimant’s claim for benefits; and 

  

	 	(d)	A statement of the claimant’s right to bring a civil action under ERISA Section 502(a). 

  
 7 

	7.3	Arbitration of Claims. All claims or controversies arising out of or in connection with this Agreement shall, subject to the initial review provided for in the foregoing provisions of this Article, be resolved
through arbitration. Except as otherwise mutually agreed to by the parties, any arbitration shall be administered under and by the American Arbitration Association (“AAA”), in accordance with the AAA procedures then in effect. The
arbitration shall be held in the AAA office nearest to where the Executive is or was last employed by the Bank or at a mutually agreeable location. 

Article 8 
 Amendments
and Termination 
  

	8.1	Amendments. This Agreement may be amended only by a written agreement signed by the Bank and the Executive. However, the Bank may unilaterally amend this Agreement to conform with written directives to the Bank
from its auditors or banking regulators or to comply with legislative changes or tax law, including without limitation Code Section 409A. 

  

	8.2	Plan Termination Generally. This Agreement may be terminated only by a written agreement signed by the Bank and the Executive. The benefit shall be the Accrual Balance (as described in Schedule A) as of the date
this Agreement is terminated. Except as provided in Section 8.3, the termination of this Agreement shall not cause a distribution of benefits under this Agreement. Rather, upon such termination benefit distributions will be made at the earliest
distribution event permitted under Article 2 or Article 3. 

  

	8.3	Plan Terminations Under Code Section 409A. Notwithstanding anything to the contrary in Section 8.2, the Bank may terminate this Agreement pursuant to and in accordance with Treasury Regulation
Section 1.409A-3(j)(4)(ix) (or any successor provision) and, upon such termination, the Bank may distribute the Accrual Balance (as described in Schedule A), determined as of the date of the termination of this Agreement, to the Executive in a
lump sum. 

 Article 9 

Miscellaneous 
  

	9.1	Binding Effect. This Agreement shall bind the Executive and the Bank and their beneficiaries, survivors, executors, administrators and transferees. 

 

	9.2	No Guarantee of Employment. This Agreement is not a contract for employment. It does not give the Executive the right to remain as an employee of the Bank nor interfere with the Bank’s right to discharge the
Executive. It does not require the Executive to remain an employee nor interfere with the Executive’s right to terminate employment at any time. 

  

	9.3	Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner. 

  
 8 

	9.4	Tax Withholding and Reporting. The Bank shall withhold any taxes that are required to be withheld, including but not limited to taxes owed under Code Section 409A from the benefits provided under this
Agreement. The Executive acknowledges that the Bank’s sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authorities. The Bank shall satisfy all applicable reporting requirements, including those under
Code Section 409A. 

  

	9.5	Applicable Law. This Agreement and all rights hereunder shall be governed by the laws of the Commonwealth of Pennsylvania, except to the extent preempted by the laws of the United States of America.

  

	9.6	Unfunded Arrangement. This Agreement shall be unfunded for tax purposes and for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended from time to time (“ERISA”).
The Executive and the Beneficiary are general unsecured creditors of the Bank for the distribution of benefits under this Agreement. The benefits represent the mere promise by the Bank to distribute such benefits. The rights to benefits are not
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment by creditors. Any insurance on the Executive’s life or other informal funding asset is a general asset of the Bank to
which the Executive and Beneficiary have no preferred or secured claim. 

  

	9.7	Entire Agreement. This Agreement constitutes the entire agreement between the Bank and the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue of this Agreement other than
those specifically set forth herein. This Agreement supersedes any and all agreements, either oral or in writing between the parties with respect to the provision of a supplemental executive retirement plan agreement to Executive, including but not
limited to the 2011 SERP. The Executive specifically releases all parties of any rights and obligations under the 2011 SERP and said agreement is null and void. 

  

	9.8	Interpretation. Wherever the fulfillment of the intent and purpose of this Agreement requires and the context will permit, the use of the masculine gender includes the feminine and use of the singular includes
the plural. 

  

	9.9	Alternative Action. In the event it shall become impossible for the Bank or the Plan Administrator to perform any act required by this Agreement due to regulatory or other constraints, the Bank or Plan
Administrator may perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Bank, provided that such alternative act does not violate Code Section 409A.

  

	9.10	Headings. Article and section headings are for convenient reference only and shall not control or affect the meaning or construction of any provision herein. 

 

	9.11	Validity. If any provision of this Agreement shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Agreement shall be construed and
enforced as if such illegal or invalid provision had never been included herein. 

  

	9.12	Notice. Any notice or filing required or permitted to be given to the Bank or Plan Administrator under this Agreement shall be sufficient if in writing and hand-delivered or sent by registered or certified mail
to the address below: 

  

					
		 	 Peoples Financial Services Corp.
	 	
		 	 150 North Washington Ave
	 	
		 	 Scranton, PA 18504
	 	

  
 9 

 Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as
of the date shown on the postmark on the receipt for registration or certification. 
 Any notice or filing required or permitted to be given
to the Executive under this Agreement shall be sufficient if in writing and hand-delivered or sent by mail to the last known address of the Executive. 
  

	9.13	Compliance with Section 409A. This Agreement shall be interpreted and administered consistent with Code Section 409A. 

IN WITNESS WHEREOF, the Executive and a duly authorized representative of the Bank have signed this Agreement. 

 

							
	EXECUTIVE	 		 	PEOPLES SECURITY BANK AND TRUST COMPANY
				
	 /s/ Joseph M. Ferretti
	 		 	By:	 	 /s/ Linda Gordon

	Joseph M. Ferretti	 		 		 	  

			
		 		 	PEOPLES FINANCIAL SERVICES CORP.
				
		 		 	By:	 	 /s/ Michael Jake

		 		 		 	 Executive Vice President

  
 10 

 

 
 Supplemental Executive Retirement Plan 

Schedule A 
 Joseph Ferretti 

 

																			
	 Birth Date: 05/11/1969

Plan Anniversary Date:
12/31/2014
 Normal
Retirement:
05/11/2034, Age 65
 Normal Retirement
Payment: Monthly for
10
Years
	  	 	  	Early Termination 
Without Cause  

Amount Payable Monthly for 10
Years at Separation from Service
	 	  	Disability  

 
 Amount Payable Monthly for
10 Years Upon
Disability
	 	  	Change In Control  

 
 Amount Payable Monthly for
10 Years Upon
Separation
	 	  	Death  

 
 Amount Payable Monthly for
10 Years Upon
Death
	 
	 Values As Of
	  	Age	  	Annual Benefit1	 	  	Annual Benefit1	 	  	Annual
Benefit1	 	  	Annual
Benefit1,2	 
	 Jun 2014
	  	45	  	 	0	  	  	 	0	  	  	 	0	  	  	 	40,000	  
	 Dec 2014
	  	45	  	 	730	  	  	 	730	  	  	 	730	  	  	 	40,000	  
	 Dec 2015
	  	46	  	 	2,026	  	  	 	2,026	  	  	 	2,026	  	  	 	40,000	  
	 Dec 2016
	  	47	  	 	3,381	  	  	 	3,381	  	  	 	3,381	  	  	 	40,000	  
	 Dec 2017
	  	48	  	 	4,799	  	  	 	4,799	  	  	 	4,799	  	  	 	40,000	  
	 Dec 2018
	  	49	  	 	6,282	  	  	 	6,282	  	  	 	6,282	  	  	 	40,000	  
	 Dec 2019
	  	50	  	 	7,833	  	  	 	7,833	  	  	 	7,833	  	  	 	40,000	  
	 Dec 2020
	  	51	  	 	9,456	  	  	 	9,456	  	  	 	9,456	  	  	 	40,000	  
	 Dec 2021
	  	52	  	 	11,153	  	  	 	11,153	  	  	 	11,153	  	  	 	40,000	  
	 Dec 2022
	  	53	  	 	12,928	  	  	 	12,928	  	  	 	12,928	  	  	 	40,000	  
	 Dec 2023
	  	54	  	 	14,784	  	  	 	14,784	  	  	 	14,784	  	  	 	40,000	  
	 Dec 2024
	  	55	  	 	16,726	  	  	 	16,726	  	  	 	16,726	  	  	 	40,000	  
	 Dec 2025
	  	56	  	 	18,757	  	  	 	18,757	  	  	 	18,757	  	  	 	40,000	  
	 Dec 2026
	  	57	  	 	20,881	  	  	 	20,881	  	  	 	20,881	  	  	 	40,000	  
	 Dec 2027
	  	58	  	 	23,103	  	  	 	23,103	  	  	 	23,103	  	  	 	40,000	  
	 Dec 2028
	  	59	  	 	25,427	  	  	 	25,427	  	  	 	25,427	  	  	 	40,000	  
	 Dec 2029
	  	60	  	 	27,857	  	  	 	27,857	  	  	 	27,857	  	  	 	40,000	  
	 Dec 2030
	  	61	  	 	30,399	  	  	 	30,399	  	  	 	30,399	  	  	 	40,000	  
	 Dec 2031
	  	62	  	 	33,059	  	  	 	33,059	  	  	 	33,059	  	  	 	40,000	  
	 Dec 2032
	  	63	  	 	35,840	  	  	 	35,840	  	  	 	35,840	  	  	 	40,000	  
	 Dec 2033
	  	64	  	 	38,749	  	  	 	38,749	  	  	 	38,749	  	  	 	40,000	  
	 May 2034
	  	65	  				  	 	40,000	  	  	 	40,000	  	  	 	40,000	  

 The first line represents the initial plan values as of the plan implementation date of June 01, 2014. 

 

	1 	The annual benefit amount will be distributed in 12 equal monthly payments for a total of 120 monthly payments. 

	2 	Note that accounting rules may require an additional accrual at the time this benefit is triggered. 

  

					
	 SERP:Peoples Security Bank and Trust Company-Scranton,PA

7514#,10436#,1976#,03/14/2014
	 	1	 	Copyright© 2014 -All Rights Reserved

 

 
 Supplemental Executive Retirement Plan 

Schedule A 
  

 IF THERE IS A CONFLICT BETWEEN THIS SCHEDULE A AND THE AGREEMENT, THE TERMS AND PROVISIONS OF THE
AGREEMENT SHALL PREVAIL. IF A TRIGGERING EVENT OCCURS, REFER TO THE AGREEMENT TO DETERMINE THE ACTUAL BENEFIT AMOUNT BASED ON THE DATE OF THE EVENT. 
  

									
		 		 		 	By	 	 Michael Jake

	 Joseph Ferretti
	 		 		 	
		 		 		 	Title	 	 Executive Vice President

	Date	 	  
	 		 		 	
		 		 		 	Date	 	 4-22-14

  

					
	 SERP:Peoples Security Bank and Trust Company-Scranton,PA

7514#,10436#,1976#,03/14/2014
	 	2	 	Copyright© 2014 -All Rights Reserved

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00230-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00230-of-00352.parquet"}]]