Document:

Exhibit

Exhibit 10.1

ACTUA CORPORATION
Third Amended and Restated 
Non-Management Director Compensation Plan

Effective as of June 17, 2016, the Board of Directors (“Board”) of Actua Corporation (the “Company”) hereby adopts this Third Amended and Restated Non-Management Director Compensation Plan (this “Plan”).  This Plan amends and restates in its entirety the text of the Company’s Second Amended and Restated Non-Management Director Compensation Plan, dated as of September 3, 2014.  The purpose of the Plan is to advance the interests of the Company’s stockholders by providing non-management directors (“Participants”) with remuneration that allows the Company to attract and retain qualified individuals to serve on the Company’s Board and aligns their interests with those of the Company’s stockholders.  

The Compensation Committee of the Board (the “Compensation Committee”) shall administer the Plan.  The Compensation Committee may delegate such administration as it deems appropriate.

1.    Initial Equity Grant

Subject to Section 6 hereof, the Company shall grant each Participant 25,000 Company stock appreciation rights (“SARs”) at the first regularly scheduled Board meeting held where such Participant serves as a member of the Board.  The SARs (a) will have a base price equal to the fair market value of the Company’s common stock on the date of grant, (b) will vest 25% on each anniversary of the date of grant (provided the Participant is a member of the Board on the relevant vesting date) and (c) will expire eight years from the grant date. 

2.    Annual Board Retainer

Each non-management director shall receive an annual board retainer fee of $60,000, payable in shares of restricted Company common stock.  At the Board meeting held immediately following each of the Company’s annual meetings of stockholders (each, an “Annual Meeting”), subject to Section 6, the Company shall grant to each Participant a number of shares of the Company’s common stock equal to the quotient obtained by dividing (i) $60,000 by (ii) the fair market value of the Company’s common stock on the date of grant.  Such shares will vest on the one-year anniversary of the date of grant; provided, however, that if a Participant’s Board service terminates prior to such date, other than by virtue of removal from the Board for cause, then upon the termination of such service, a number of such shares equal to the product of the (A) the number of unvested shares granted pursuant to this Section 2 and (B) the quotient obtained by dividing (x) the number of days elapsed since such shares were granted by (y) 365 shall vest and the unvested remaining shares shall be automatically forfeited.  

3.    Committee Retainers

Each Participant who serves on a standing committee of the Company’s Board (a “Committee”) shall receive an annual retainer in respect of such service in the applicable amount set forth on Exhibit A (each such fee, a “Committee Retainer”), payable in shares of restricted Company common stock.  At the Board meeting held immediately following each Annual Meeting, subject to Section 6, the Company shall grant to each Participant serving on a Committee, a number of shares of the Company’s common stock equal to the quotient obtained by dividing (i) the applicable Committee Retainer by (ii) the fair market value of the 

Company’s common stock on the date of grant.  Such shares will vest on the one-year anniversary of the date of grant; provided, however, that a Committee member’s service terminates prior to such date, other than by virtue of removal from the Board and/or such Committee for cause, then upon the termination of such service, a number of such shares equal to the product of the (A) the number of shares granted pursuant to this Section 3 in connection with the Committee Service and (B) the quotient obtained by dividing (x) the number of days elapsed since such shares were granted by (y) 365 shall vest and the remaining unvested shares shall be automatically forfeited.  

4.    Lead Independent Director Retainer    

Each non-management director who serves as the lead independent director shall receive $25,000 per year of service, payable in shares of restricted Company common stock.  At the Board meeting held immediately following each Annual Meeting, subject to Section 6, the Company shall grant the lead independent director a number of shares of the Company’s common stock equal to the quotient obtained by dividing (i) $25,000 by (ii) the fair market value of the Company’s common stock on the date of grant.  Such shares will vest on the one-year anniversary of the date of grant; provided, however, that if such Participant’s service as lead independent director terminates prior to such date, other than by virtue of removal from the Board for cause, then upon the termination of such service, a number of such shares equal to the product of the (A) the number of shares granted pursuant to this Section 4 and (B) the quotient obtained by dividing the (x) number of days elapsed since such shares were granted by (y) 365 shall vest and the remaining shares shall be automatically forfeited.

5.    Triennial Service Equity Grants

(a)The Company shall, on the date of the Board meeting immediately following every third Annual Meeting (each, a “Grant Date”), grant each Participant 22,500 securities consisting of (i) Company deferred stock units (“Service DSUs”), (ii) shares of Company restricted common stock (“Service RS”) or (iii) a combination of Service DSUs and Service RS.  The first Grant Date shall be the date of the Company’s 2015 Annual Meeting.  New directors on the Company’s Board shall not be eligible to receive Service DSUs or Service RS until (A) the Board meeting immediately following the first Annual Meeting after the election of such director to the Board, in the case of directors elected to the Company’s Board at an Annual Meeting, and (B) the Board meeting immediately following the second Annual Meeting after the election of such director to the Board, in the case of directors elected to the Company’s Board other than at an Annual Meeting (each date referred to in (A) and (B) being an “Effective Service Date”).  In the event a new director’s Effective Service Date does not coincide with a Grant Date, the Company shall grant such director a number of DSUs equal to the product of (x) 7,500 and (y) the number of years between such Effective Service Date and the next Grant Date.    

(b)On or before December 31 of each year prior to a Grant Date or Effective Service Date, as applicable, each Participant shall make an election with respect to the securities that he or she elects to receive on the next Grant Date or Effective Service Date, as applicable; provided, however, that a Participant may elect to receive Service RS only if, at the time of the election, such Participant has achieved and will remain in compliance with the Company’s director stock ownership guidelines.  On each Grant Date or Effective Service Date, as applicable, subject to Section 6, the Company shall grant Service DSUs and/or Service RS, as applicable, pursuant to Section 5(a) in accordance with each Participant’s valid election.  

(c)One-third of each equity grant shall vest on the one-year anniversary of the applicable Grant Date, and the remainder of each equity grant shall vest ratably on a quarterly basis between the first 

year anniversary of the Grant Date and the third year anniversary of the Grant Date, provided that the recipient of such equity grant is serving on the Company’s Board on the applicable vesting date.  7,500 shares of each grant made on an Effective Service Date (which may constitute the entire grant) shall vest on each yearly anniversary of such Effective Service Date, provided that the recipient of such equity grant is then serving on the Company’s Board.  

6.    Timing of Grant and Vesting of Equity Awards and Share Adjustments

Notwithstanding anything to the contrary in this Plan, all equity grants contemplated by this Plan shall be made on the latest of (a) the date specified above, (b) the earliest date permissible under the Company’s Equity Awards Grant Policy and (c) promptly after the date that the Company has sufficient shares available for grant pursuant to an equity compensation plan approved by stockholders.  If any specified vesting date provided for herein is not a business day, then the applicable vesting shall occur on the first business day following such date.  Additionally, the number of shares underlying the grants of restricted stock, SARs, and DSUs set forth above shall be subject to proportionate adjustment in the event of a stock split, reverse stock split, combination, reclassification, stock dividend or other similar event. 

7.    Expenses

The Company shall reimburse non-management directors for reasonable, documented out-of-pocket expenses incurred by them related to their attendance at Company meetings and otherwise incurred by them in service to the Company.  

Exhibit A

	
		
	Annual Fees Payable
	Payable For Committee Service As

	$25,000
	Audit Committee Chair

	$20,000
	Compensation Committee Chair

	$15,000
	Nominating and Governance Committee Chair

	$13,500
	Audit Committee (Non-Chair)

	$11,000
	Compensation Committee (Non-Chair)

	$8,500
	Nominating and Governance Committee (Non-Chair)pfis_EX_10_1

		

			Exhibit 10.1

		

		

			 

		

		

			Peoples Security Bank and Trust Company

		

		

			Supplemental Executive Retirement Plan Agreement

		

		

			 

		

		
			Peoples Security Bank and Trust Company
		

		
			Supplemental Executive Retirement Plan Agreement
		

		
			 
		

		
			This Supplemental Executive Retirement Plan Agreement (this “Agreement”) is adopted effective February 1, 2016, by and among Peoples Security Bank and Trust Company, a Pennsylvania state chartered bank and trust company (the “Bank”), Peoples Financial Services Corp., a Pennsylvania corporation (the “Corporation”), and Michael L. Jake (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; and
		

		
			 
		

		
			WHEREAS, the Executive is currently employed by the Bank, and is qualified by education and experience to serve as the Bank’s Executive Vice President and Chief Risk Officer.
		

		
			 
		

		
			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
			

			
	
			
			“Cause” means (i) conviction of, or the entry of a plea of guilty or no contest to a felony or any other crime of moral turpitude that causes the Corporation, the Bank or any of their subsidiaries or affiliates public disgrace or disrepute, or adversely affects their operations, financial performance, or relationship with its customers; (ii) fraud, embezzlement or other misappropriation of funds; (iii) illegal use of controlled drugs; (iv) refusal to perform the lawful and reasonable directives of the Chief Executive Officer of the Bank or the Board; (v) any government regulatory agency instructs the Corporation or Bank to terminate the employment of the Executive or relieve him of his duties; (vi) the Executive’s willful violation of any law, rule or regulation governing banks or bank officers; or (vii) the Executive’s unlawful discrimination, including harassment against employees, customers, business associates, contractors, or visitors of the Bank or the Corporation or any of their affiliates and subsidiaries.

		
			 
		

			
	
			
				 1.5
			

			
	
			
			“Change in Control” means a change in the ownership or effective control applicable to the Corporation or the Bank as described in Section 409(a)(2)(A)(v) of the Code (or any successor provision thereto) and the regulations thereunder.

		
			 
		

			
	
			
				 1.6
			

			
	
			
			“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.

		
			 
		

			
	
			
				 1.7
			

			
	
			
			“Disability” means a condition entitling Executive to benefits under the long term disability plan, policy or arrangement maintained for employees of the Bank.

		
			 
		

			
	
			
				 1.8
			

			
	
			
			“Effective Date” means 2/1/2016.

		
			 
		

		 

 

		

			Peoples Security Bank and Trust Company

		

		

			Supplemental Executive Retirement Plan Agreement

		

		

			 

		

		

			 

		

			
	
			
				 1.9
			

			
	
			
			“Normal Retirement Age” means age sixty-seven (67).

		
			 
		

			
	
			
				 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 the 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.

		
			 
		

			
	
			
				 1.17
			

			
	
			
			“Termination without Cause” means a Separation from Service as a result of a termination of Executive’s employment by the Bank without Cause.

		
			 
		

		
			Article 2
		

		
			Distributions During Lifetime

		

		
			2.1Normal 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.
		

		
			
		

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

		
			 
		

		
			2.1.2Distribution 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.
		

		
			 
		

		
			2.2Disability 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.
		

		
			 
		

		
			2.3.1Amount 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.
		

		
			 
		

		
			2.3.2Distribution 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.
		

		
			 
		

		
			2.3Change in Control Benefit.  If a Change in Control occurs prior to Normal Retirement Age followed by Separation from Service within twenty-four (24) months following the Change in Control, the Bank shall 

		 

		

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distribute to the Executive the benefit described in this Section 2.3 in lieu of any other benefit under this Article.
		

		
			 
		

		
			2.4.1Amount 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.
		

		
			 
		

		
			2.4.2Distribution 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.
		

		
			 
		

		
			2.4Termination 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.
		

		
			 
		

		
			2.4.1Amount 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.
		

		
			 
		

		
			2.4.2Distribution 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.
		

		
			 
		

		
			2.5Restriction 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.
		

		
			 
		

		
			2.6Distributions 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.
		

		
			 
		

		
			2.7Change 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;

			
	
			
				 (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 

		 

		

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	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
		

		
			 
		

		
			3.1Death 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.
		

		
			 
		

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

		
			 
		

		
			3.1.2Distribution 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.
		

		
			 
		

		
			3.2Death 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
		

		
			 
		

		
			4.1In 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.
		

		
			 
		

		
			4.2Designation.  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.
		

		
			 
		

		
			4.3Acknowledgment.  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.
		

		
			 
		

		
			4.4No 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.
		

		
			 
		

		
			

		 

		

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4.5Facility 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
		

		
			 
		

		
			5.1Termination 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.
		

		
			 
		

		
			5.2Suicide 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.
		

		
			 
		

		
			5.3Removal.    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.
		

		
			 
		

			
	
			
				 3.4
			

			
	
			
			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.

		
			 
		

			
	
			
				 3.5
			

			
	
			
			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.

		
			 
		

			
	
			
				 3.6
			

			
	
			
			Competition after Separation from Service.  Any unpaid benefits shall be forfeited if the Executive breaches any restrictive covenants (including, without limitation, any non-competition or non-solicitation restrictions) applicable to Executive.

		
			 
		

		
			 
		

		
			Article 6
		

		
			Administration of Agreement
		

		
			 
		

		
			6.1Plan 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.
		

		
			 
		

		
			6.2Agents.  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 

		 

		

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representative, and may from time to time consult with counsel who may be counsel to the Bank.
		

		
			 
		

		
			6.3Binding 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.
		

		
			 
		

		
			6.4Indemnity 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.
		

		
			 
		

		
			6.5Bank 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
		

		
			 
		

		
			7.1Claims 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:
		

		
			 
		

		
			7.1.1Initiation – 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.
		

		
			 
		

		
			7.1.2Timing 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.
		

		
			 
		

		
			7.1.3Notice 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.
		

		
			 
		

		
			7.2Review 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:
		

		
			 
		

		
			

		 

		

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7.2.1Initiation – 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.
		

		
			 
		

		
			7.2.2Additional 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.
		

		
			 
		

		
			7.2.3Considerations 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.
		

		
			 
		

		
			7.2.4Timing 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.
		

		
			 
		

		
			7.2.5Notice 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).
		

		
			 
		

		
			7.3Arbitration 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
		

		
			 
		

			
	
			
				 3.1
			

			
	
			
			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.

		
			 
		

		
			8.2Plan 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 Exhibit 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.
		

		
			 
		

		
			

		 

		

			-7-

		

 

		

			Peoples Security Bank and Trust Company

		

		

			Supplemental Executive Retirement Plan Agreement

		

		

			 

		

		

			 

		

8.3Plan 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 Exhibit A), determined as of the date of the termination of this Agreement, to the Executive in a lump sum.
		

		
			 
		

		
			Article 9
		

		
			Miscellaneous
		

		
			 
		

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

		
			 
		

		
			9.2No 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.
		

		
			 
		

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

		
			 
		

		
			9.4Tax 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.
		

		
			 
		

		
			9.5Applicable 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.
		

		
			 
		

		
			9.6Unfunded 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.
		

		
			 
		

		
			9.7Entire 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.
		

		
			 
		

		
			9.8Interpretation.  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.
		

		
			 
		

		
			9.9Alternative 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.
		

		
			 
		

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

		
			 
		

		
			

		 

		

			-8-

		

 

		

			Peoples Security Bank and Trust Company

		

		

			Supplemental Executive Retirement Plan Agreement

		

		

			 

		

		

			 

		

9.11Validity.  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.
		

		
			 
		

		
			9.12Notice.  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
		

		
			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.
		

		
			 
		

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

		
			
		

		
			

		 

		

			-9-

		

 

		

			Peoples Security Bank and Trust Company

		

		

			Supplemental Executive Retirement Plan Agreement

		

		

			 

		

		

			 

		

 
		

		
			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/ Michael L. Jake

					
					
						 

					
					
						By: /s/Linda A. Gardner

					
					
						 

				
	
					
						 

					
					
						Michael L. Jake

					
					
						 

					
					
						Name:Linda A. Gardner

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title: VP/HR Manager

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						PEOPLES FINANCIAL SERVICES CORP

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						By: /s/Craig W. Best

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name:Craig W. Best

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title: President & CEO

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			-10-

		

 

		

			 

		

 
		

		
			Supplemental Executive Retirement Plan
Schedule A
		

		
			Michael Jake
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Birth Date: XX/XX/1952
Plan Anniversary Date: 12/31/2016
Normal Retirement: 08/10/2019, Age 67
Normal Retirement Payment: Monthly for 10 Years

					
					
						Termination
Without Cause
Prior to
Normal Retirement Age

					
					
						Disability

					
					
						Change in Control

					
					
						Death

				
	
					
						 

					
					
						Amount Payable Monthly for 10 Years at
Separation from Service

					
					
						Amount Payable Monthly for 10 Years Upon Separation

					
					
						Amount Payable Monthly for 10 Years Upon Separation

					
					
						Amount Payable Monthly for 10 Years Upon Separation

				
	
					
						Value As
Of

					
					
						Age

					
					
						Discount Rate
Pre/Post

					
					
						Benefit Level

					
					
						Based On

					
					
						Vesting

					
					
						Accrued Benefit Liability

					
					
						Annual Benefit1

					
					
						Annual Benefit1

					
					
						Annual Benefit1, 2

					
					
						Annual Benefit1, 2

				
	
					
						Feb 2016

					
					
						63

					
					
						4.00%/4.00%

					
					
						40,000

					
0 
					
					
						100.00%

					
0 
					
0 
					
0 
					
					
						40,000

					
					
						40,000

				
	
					
						Dec 2016

					
					
						64

					
					
						4.00%/4.00%

					
					
						40,000

					
80,058 
					
					
						100.00%

					
80,058 
					
9,694 
					
9,694 
					
					
						40,000

					
					
						40,000

				
	
					
						Dec 2017

					
					
						65

					
					
						4.00%/4.00%

					
					
						40,000

					
170,802 
					
					
						100.00%

					
170,802 
					
20,682 
					
20,682 
					
					
						40,000

					
					
						40,000

				
	
					
						Dec 2018

					
					
						66

					
					
						4.00%/4.00%

					
					
						40,000

					
265,243 
					
					
						100.00%

					
265,243 
					
32,118 
					
32,118 
					
					
						40,000

					
					
						40,000

				
	
					
						Aug 2019

					
					
						67

					
					
						4.00%/4.00%

					
					
						40,000

					
330,331 
					
					
						100.00%

					
330,331 
					
40,000 
					
40,000 
					
					
						40,000

					
					
						40,000

				

		
			 
		

		
			The first line represents the initial plan values as of the plan implementation date of February 01, 2016.
		

		
			1The 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.
		

		
			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.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Michael L. Jake

					
					
						 

					
					
						By: /s/Linda A. Gardner

				
	
					
						Michael L. Jake

					
					
						 

					
					
						Title: VP/HR Manager

				
	
					
						Date:  2/3/2016

					
					
						 

					
					
						Date:  2/3/2016

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