Document:

MLA No. RX0886(A)

 

AMENDED AND RESTATED
MASTER LOAN AGREEMENT

 

THIS AMENDED AND
RESTATED MASTER LOAN AGREEMENT (this “Agreement”), dated as of October 31, 2012, is made by and between
COBANK, ACB (“CoBank”) and WARWICK VALLEY TELEPHONE COMPANY, a New York corporation (the
“Borrower”), and amends and restates in its entirety the Master Loan Agreement, dated as of February 18, 2003,
between CoBank and Borrower, as it previously may have been amended (the “Prior Agreement”).

 

WHEREAS, from
time to time CoBank may make loans to the Borrower, and in order to reduce the amount of paperwork associated therewith, CoBank
and the Borrower would like to enter into a master loan agreement;

 

NOW, THEREFORE,
in consideration of the foregoing, intending to be legally bound hereby, and in consideration of CoBank making one or more loans
to the Borrower, CoBank and the Borrower agree, and hereby amend and restate the Prior Agreement, as follows:

 

SECTION 1.      Supplements.
In the event the Borrower desires to borrow from CoBank and CoBank is willing to lend to the Borrower, or in the event CoBank
and the Borrower desire to consolidate any existing loans hereunder, the parties will enter into a supplement to this Agreement
(each supplement, as it may be amended, modified, supplemented, extended or restated from time to time, a “Supplement”
and, collectively, the “Supplements”). Each Supplement will set forth CoBank’s commitment to make
a loan or loans (each, a “Loan” and, collectively, the “Loans”) to the Borrower,
the amount of the Loan(s), the purpose of the Loan(s), the interest rate or rate options applicable to the Loan(s), the repayment
terms of the Loan(s), and any other terms and conditions applicable to the Loan(s). Each Loan will be governed by the terms and
conditions contained in this Agreement and in the Supplement and the Note (as hereinafter defined in Section 3) relating
to that Loan. The initial Supplement shall be that certain Amended and Restated Third Supplement to the Amended and Restated Master
Loan Agreement, dated as of October 31, 2012, between CoBank and the Borrower (the “Third Supplement”).

 

SECTION 2.      Availability.
Advances under the Loans will be made available on any day on which CoBank and the Federal Reserve Banks are open for business
(a “Business Day”) upon the telephonic or written request of an authorized employee of the Borrower.
Requests for advances under the Loans must be received no later than 12:00 noon Eastern time on the date the advance is desired
or at such earlier date and time as may be specified in the relevant Supplement. Advances under the Loans will be made available
by wire transfer of immediately available funds. Wire transfers will be made to such account or accounts as may be designated in
writing by the Borrower. In taking actions upon telephonic requests, CoBank shall be entitled to rely on (and shall incur no liability
to the Borrower in acting upon) any request made by a Person (as hereinafter defined in Subsection 25(E)) identifying himself
or herself as one of the Persons authorized by the Borrower to request advances under a delegation and wire and electronic transfer
authorization form with CoBank, so long as any funds advanced are wired to an account previously designated in writing by the Borrower.

 

    	 

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SECTION 3.      Notes
and Payments. The Borrower’s obligation to repay the Loans made under each Supplement shall be evidenced by a promissory
note in form and content acceptable to CoBank (such notes, as they may be amended, modified, supplemented, extended, restated or
replaced from time to time, collectively, the “Notes,” and each a “Note”).
The Borrower shall make each payment which it is required to make under the terms of this Agreement, each Supplement, each Note,
any Interest Rate Agreement (as hereinafter defined in this Section 3) provided by CoBank and all security and other instruments
and documents relating hereto and thereto (this Agreement, the Supplements, the Notes, the Interest Rate Agreements provided by
CoBank, any instruments or documents related to any cash management or other bank product provided by CoBank to the Borrower or
any other Loan Party (as hereinafter defined in Subsection 4(A)) and all other instruments, documents and agreements executed
and delivered at any time in connection with the Loans and other transactions contemplated by this Agreement or any Supplement,
including all security, negative pledge and guarantee documents described in Section 5 and all perfection and diligence
certificates, collectively, the “Loan Documents”) by wire transfer of immediately available funds, by
check, or by automated clearing house (ACH) or by other similar cash handling processes as specified by separate agreement between
the Borrower and CoBank. Wire transfers shall be made to ABA No. 307088754 for advice to and credit of CoBank (or to such
other account as CoBank may direct by notice). The Borrower shall give CoBank telephonic notice no later than 12:00 noon Eastern
time of its intent to pay by wire. Funds received by wire before 3:00 p.m. Eastern time shall be credited on the day received and
funds received by wire after 3:00 p.m. Eastern time shall be credited on the next Business Day. Checks shall be mailed to CoBank,
at Department 167, Denver, Colorado 80291-0167 (or to such other place as CoBank may direct by notice). Credit for payment by check
will not be given until the later of: (i) the day on which CoBank receives immediately available funds; or (ii) the next Business
Day after receipt of the check. If any date on which a payment is due under any Loan Document is not a Business Day, then such
payment shall be made on the next Business Day and such extension of time shall be included in the calculation of interest due.
“Interest Rate Agreement” means any interest rate swap, hedge, cap, collar or similar agreement or arrangement,
in form and content acceptable to CoBank, designed to protect the Borrower against fluctuations in interest rates.

 

SECTION 4.      Mandatory
Repayments; Application.

 

(A)         Repayments
from Asset Dispositions. The Borrower shall repay the Loans in an amount equal to all Net Proceeds (as hereinafter defined
in this Subsection 4(A)) received by any Loan Party or any Subsidiary of any Loan Party (as such terms are hereinafter defined
in this Subsection 4(A)) that are from any Asset Disposition (as hereinafter defined in this Subsection 4(A)) to
the extent that such Net Proceeds are not reinvested in equipment or other assets that are used or useful in the business of a
Loan Party or such Subsidiary within 120 days of receipt by such Loan Party or Subsidiary of such Net Proceeds. All such repayments
shall be applied in accordance with Subsection 4(E).

 

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Asset Disposition”
means the disposition, whether by sale, lease, transfer, loss, damage, destruction, condemnation or otherwise, by any Loan Party
or any Subsidiary of a Loan Party of any or all of such Loan Party’s or such Subsidiary’s assets other than dispositions
of assets permitted under Subsection 9(E).

 

“Loan
Party” or “Loan Parties” means the Borrower and any of its wholly-owned Subsidiaries, other
than any Subsidiary which is or becomes a Negative Pledgor.

 

“Negative
Pledgor” means Warwick Valley Telephone Restructuring Company, LLC, a New York limited liability company.

 

“Net
Proceeds” means the cash proceeds received by any Loan Party or any Subsidiary of a Loan Party from any Asset Disposition,
debt or equity issuance (including insurance proceeds, awards of condemnation, and payments under notes or other debt securities
received in connection with any Asset Disposition), net of (i) the reasonable costs of such sale, lease, transfer, issuance or
other disposition (including taxes attributable to such sale, lease, transfer, issuance or other disposition), (ii) amounts applied
to repayment of Indebtedness (as hereinafter defined in Subsection 8(I)(1)), other than Indebtedness outstanding hereunder,
secured by a lien on the asset or property disposed, and (iii) for Subsidiaries not wholly-owned by a Loan Party, the percentage
equal to the ownership interests of Persons other than such Loan Party (by way of example, if a Loan Party owns a Subsidiary 95%,
who in turn owns another Subsidiary 80%, and an Asset Disposition occurs at the other Subsidiary, only 76% (95% of 80%) of the
proceeds thereof that would otherwise have constituted Net Proceeds will constitute Net Proceeds).

 

“Subsidiary”
or “Subsidiaries” means, with respect to any Person of which more than 50% of the total voting power
of shares of stock (or equivalent ownership or controlling interests) entitled (without regard to the occurrence of any contingency)
to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly,
by that Person or one or more Subsidiaries of that Person or any combination thereof.

 

(B)         Mandatory
Repayments from Equity Issuances. Immediately upon receipt of
proceeds from the issuance of any ownership interests in any Loan Party (excluding Investments among Loan Parties as permitted
by Subsection 9(F)) or any Subsidiary of any Loan Party, or any rights to purchase any such interest, in each case as permitted
by CoBank, the Borrower shall repay the Loans in an amount equal to the amount of the Net Proceeds received in connection
with such equity issuance. All such repayments shall be applied in accordance with Subsection 4(E).

 

(C)         Mandatory
Repayments from Put Option Proceeds. In the event that the Borrower exercises the put option with respect to its ownership
interest in Orange County-Poughkeepsie Limited Partnership (the “O-P Partnership”) as described in Section
5 of that certain Agreement dated as of May 26, 2011 by and among Verizon Wireless of the East LP, Cellco Partnership and the Borrower
(the “Put Option Agreement”), the Net Proceeds received by the Borrower from such exercise (the “Put
Option Net Proceeds”) shall be applied to repay the Loans in an amount equal to the lesser of (a) 100% of the Put
Option Net Proceeds or (b) the total amount outstanding with respect to the Loans (inclusive of accrued but unpaid interest, fees
and expenses related thereto). All such repayments shall be applied in accordance with Subsection 4(E).

 

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(D)         Mandatory
Repayments from Aggregate Outstanding Amount. If at any time the aggregate outstanding amount of advances under any revolving
Loan exceeds such revolving Loan Commitment, the Borrower shall repay promptly such revolving Loan in an amount at least sufficient
to reduce the aggregate principal balance of such revolving Loan then outstanding to the amount of the revolving Loan Commitment
and until such repayment is made CoBank shall not be obligated to make any additional advances under any Loan.

 

(E)         Application
of Repayments; Related Interest and Surcharge Payments. Unless otherwise provided in any Supplement, all repayments made pursuant
to this Section 4 will be applied first pro rata to all term Loans, based upon the principal amount then outstanding, and
then pro rata to all revolving Loans, based upon the principal amount of the Commitments (as defined in the Supplements evidencing
the revolving Loans). All term Loan repayments made pursuant to this Section 4 will be applied to principal installments
in the inverse order of their maturity and to such portions or Portions (as defined in the Supplements evidencing the term Loans)
of the term Loans as the Borrower specifies in writing or, in the absence of such direction, as CoBank specifies, and all repayments
on revolving Loans will be applied to such Portions (as defined in the Supplements evidencing the revolving Loans) of the revolving
Loans as the Borrower specifies in writing or, in the absence of such direction, as CoBank specifies. The Commitments (as defined
in the Supplements evidencing the revolving Loans) also will be permanently reduced to the extent and in the amount that the Borrower
is required, pursuant to this Section 4, to apply mandatory repayments to be made pursuant to this Section 4 (whether
or not any advances are then outstanding and available to be repaid thereunder) to revolving Loans, in the inverse order of the
Commitment Adjustment Dates (as defined in the Supplements evidencing the revolving Loans). If any revolving Loan does not have
a Commitment Adjustment Date, the Maturity Date (as defined in such Supplement) of such revolving Loan shall be deemed its Commitment
Adjustment Date for the purpose of the proceeding sentence. All reductions provided for in this Section 4 will be in addition
to any voluntary reductions and all scheduled reductions and, accordingly, may result in the termination of the Commitments prior
to the Maturity Dates (as such terms are defined in the Supplements evidencing the revolving Loans). All repayments required under
this Section 4 are to be accompanied by payment of all applicable Surcharges (as defined in the Supplements evidencing the
Loans) and accrued interest on the amount repaid.

 

SECTION 5.      Security.

 

(A)         The
Borrower’s obligations under this Agreement, the Notes, the Supplements, any Interest Rate Agreements provided by CoBank
and the other Loan Documents are secured by a statutory first lien on all equity which the Borrower may now own or hereafter acquire
or be allocated in CoBank.

 

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(B)         In
addition, except as otherwise provided in the Supplements, the Borrower’s obligations under this Agreement, the Notes, the
Supplements, any Interest Rate Agreement with CoBank and the other Loan Documents are guaranteed by that certain Continuing Guaranty
(the “Continuing Guaranty”), dated as of even date herewith, made by Warwick Valley Long Distance Co.,
Inc., a New York corporation (“WVLD”), Hometown Online Inc., a New York corporation (“Hometown”),
USA Datanet, Inc., a New York corporation (“Datanet”), Alteva, Inc., a New York corporation (“Alteva”)
and each additional Subsidiary of the Borrower which hereafter becomes a party thereto (together with WVLD, Hometown, Datanet and
Alteva, collectively, the “Subsidiary Guarantors”), in favor of CoBank. The Borrower agrees, and agrees
to cause each other Loan Party, to cause any Person who becomes a direct or indirect, wholly-owned Subsidiary of any Loan Party
after the date hereof (other than the Negative Pledgor) to execute a joinder to the Continuing Guaranty.

 

(C)         In
addition, except as otherwise provided in the Supplements, the Borrower’s obligations under this Agreement, the Notes, the
Supplements, any Interest Rate Agreement with CoBank and the other Loan Documents are supported by that certain Negative Pledge
Agreement (the “Negative Pledge Agreement”), dated as of even date herewith, made by the Negative Pledgor
in favor of CoBank.

 

(D)         In
addition, except as otherwise provided in the Supplements, the Borrower’s obligations under this Agreement, the Notes, the
Supplements, the Interest Rate Agreements provided by CoBank and the other Loan Documents are secured by that certain Stock Pledge
Agreement, dated as of even date herewith, between the Borrower and CoBank (as the same may be amended, modified, supplemented,
extended or restated from time to time, the “Stock Pledge Agreement”) pursuant to which the Borrower
has granted CoBank a first priority security interest in all of its direct or indirect ownership interests in each of its Subsidiaries.
The Borrower agrees, and agrees to cause each other Loan Party (including any person who becomes a direct or indirect, wholly-owned
Subsidiary of any Loan Party after the date hereof), to (i) execute and deliver to CoBank, and/or file and record with the appropriate
Governmental Authority (as hereinafter defined in Subsection 7(D)), as the case may be, any pledge agreements, security
agreements, financing statements, irrevocable stock powers, collateral assignments, acknowledgments of pledge, and amendments to
any of the foregoing, and such other instruments and documents as CoBank may from time to time require to enable CoBank to obtain,
perfect and maintain its security interests in the Pledged Collateral (as defined in the Stock Pledge Agreement), and (ii) pay
any applicable documentary stamp or similar taxes incurred in connection with the foregoing.

 

SECTION 6.      Conditions
Precedent. 

 

(A)         Conditions
to Third Supplement. CoBank’s obligation to extend credit under the Third Supplement is subject to the conditions precedent
that CoBank receive, in form and substance satisfactory to CoBank, each of the following:

 

(1)         This
Agreement, Etc. A duly executed original of this Agreement and all instruments and documents contemplated hereby, including
the Continuing Guaranty, the Security Agreement and the Negative Pledge Agreement.

 

(2)         Security.
Such evidence as CoBank shall require that all steps required by CoBank to enable CoBank to obtain and perfect its lien on
the security contemplated by the Stock Pledge Agreement have been taken and that such lien has the priority contemplated by this
Agreement and the Stock Pledge Agreement.

 

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(3)         Corporate
Structure. Evidence of satisfactory corporate and capital structure of the Loan Parties and their respective Subsidiaries,
to be determined in CoBank’s sole discretion.

 

(B)         Conditions
to Each Supplement. CoBank’s obligations, if any, to extend credit under each Supplement, including the Third Supplement,
is subject to the conditions precedent that CoBank receive, in form and content satisfactory to CoBank, each of the following:

 

(1)         Supplement.
A duly executed original of such Supplement, the Note relating thereto, and all other instruments and documents contemplated
by such Supplement.

 

(2)         Evidence
of Authority. Such certified board, member, manager or partner resolutions, evidence of incumbency, and other evidence that
CoBank may require that such Supplement and all other instruments and documents executed in connection therewith, and, in the case
of the initial Supplement, this Agreement and all instruments and documents executed in connection herewith, have been duly authorized
and executed.

 

(3)         Consents
and Approvals. Such evidence as CoBank may require that all required consents and approvals of any Governmental Authority (as
hereinafter defined in Subsection 7(D)) or third-party which are necessary for the validity or enforceability of any of
the Loan Documents or for the consummation of any of the transactions contemplated thereby have been obtained and are in full force
and effect.

 

(4)         License,
Etc. Such evidence as CoBank may require that all franchises, licenses, certificates, permits, orders, consents, authorizations,
approvals and the like, including all Telecommunications Licenses (as hereinafter defined in Subsection 7(R)) (collectively,
the “Licenses”) which are necessary for the operation of the business of each of the Loan Parties and
their respective Subsidiaries have been obtained and are in full force and effect.

 

(5)
         Fees and Other Charges.  Payment of all fees and other charges provided
for herein or in such Supplement which are due.

 

(6)         Insurance.
Such evidence as CoBank may require that the Loan Parties and their Subsidiaries are in compliance with Subsection 8(D).

 

(7)         Evidence
of Perfection, Etc. Such evidence as CoBank may require that CoBank has a duly perfected first-priority security interest in
all collateral contemplated by this Agreement and such Supplement.

 

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(8)         Opinions
of Counsel. Opinions of counsel (who shall be acceptable to CoBank) to the Borrower and any other party to the Loan Documents
(other than CoBank) relating to such Supplement acceptable to CoBank; provided, however, such opinions may take exception
for limitations imposed by or resulting from bankruptcy, insolvency, moratorium, reorganization or other laws affecting creditors’
rights generally and may conform to the generally recognized principles of opinions among practicing counsel in the States of New
York and New Jersey or promulgated by a recognized national association of counsel.

 

(9)         Additional
Security and Guaranties. A duly executed copy of any additional security documents or guaranties required by Section 5
or by such Supplement.

 

(C)         Conditions
to Each Advance. CoBank’s obligation under each Supplement to make any Loan or advance to the Borrower thereunder is
subject to the further conditions set forth in such Supplement and the following conditions precedent.

 

(1)         No
Material Adverse Change. That from December 31, 2011 to the date of such advance there shall not have occurred any event which
has had or could reasonably be expected to have a Material Adverse Effect.

 

(2)         Representations
and Warranties. That the representations and warranties of the Borrower, the other Loan Parties and any other party to any
Loan Document (other than CoBank) contained in this Agreement, any Supplement and any other Loan Document be true and correct in
all material respects on and as of the date of such advance, as though made on and as of such date (and the request (regardless
of form) for each Loan or advance shall be deemed a remaking of such representations and warranties as of such date by such parties).

 

(3)         Events
of Default. That no Event of Default (as hereinafter defined in Section 10) or event which solely with the giving of
notice and/or the passage of time could reasonably be expected to become an Event of Default hereunder (a “Potential
Default”), shall have occurred and be continuing.

 

(4)         Other
Information. That CoBank receive such other information regarding the condition, financial or otherwise, and operations of
the Borrower, the other Loan Parties, any Subsidiary of any Loan Party and any other party to any Loan Document (other than CoBank)
as CoBank shall request and such other opinions, certificates or documents as CoBank shall request.

 

SECTION 7.      Representations
and Warranties. The execution by the Borrower of each Supplement and each request for an advance thereunder shall constitute
a representation and warranty to CoBank that:

 

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(A)         Application.
Each representation and warranty and all other information set forth in any application, any Loan Document or other document submitted
in connection with, or to induce CoBank to enter into, such Supplement is correct in all material respects as of the date of the
Supplement or request for advance, except for representations and warranties that are date-specific, which shall be correct in
all material respects as of the reference date.

 

(B)         Disclosure.
No representation or warranty of the Borrower contained in this Agreement, the financial statements referred to in Subsection
7(F), any other document, certificate or written statement furnished to CoBank by or on behalf of any Loan Party or any Subsidiary
of any Loan Party for use in connection with the Loan Documents contains any untrue statement of a material fact or omits to state
a material fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances
in which the same were made.

 

(C)         Organization;
Powers; Etc. Each Loan Party and each Subsidiary of any Loan Party (i) is duly incorporated, organized, or formed (as
applicable), validly existing, and in good standing under the Laws (as hereinafter defined in this Subsection 7(C)) of its
state of incorporation, organization or formation (as applicable); (ii) is duly qualified to do business and is in good standing
in each jurisdiction in which the character of its properties or the nature of its business requires such qualification, except
where failure to be so qualified could not reasonably be expected to have a Material Adverse Effect (as hereinafter defined in
this Subsection 7(C)); (iii) has all requisite legal and corporate, partnership or limited liability company power (as applicable)
to own and operate its assets and to carry on its business and to enter into and perform its obligations under the Loan Documents
to which it is a party; and (iv) has duly and lawfully obtained and maintained all Licenses which are necessary in the conduct
of its business, or which may be otherwise required by Law, which if not obtained and maintained, could reasonably be expected
to have a Material Adverse Effect.

 

“Laws”
means all applicable provisions of federal, state, provincial and other local constitutions, laws, rules, regulations, ordinances,
codes, orders, decisions, judgments and decrees of any Governmental Authority.

 

“Material
Adverse Effect” means a material adverse effect upon (a) the condition (financial or otherwise), operations, properties
or business of any Loan Party, any Subsidiary of any Loan Party, or any guarantor of the Borrower’s obligations hereunder,
(b) the ability of any Loan Party, any guarantor of the Borrower’s obligations hereunder, or any negative pledgor to perform
its obligations under the Loan Documents to which it is a party, (c) the rights and remedies of CoBank under the Loan Documents,
or (d) the enforceability, validity or priority of the liens and security interests granted to CoBank pursuant to the terms of
the Loan Documents

 

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(D)         Due
Authorization; No Violations; Etc. The execution and delivery by each of each Loan Party and the Negative Pledgor of, and the
performance by each of each Loan Party and the Negative Pledgor of its obligations under, the Loan Documents to which it is a party,
have been duly authorized by all requisite corporate, partnership or limited liability company action (as applicable) and do not
and will not (i) violate its articles or certificate of incorporation, articles or certificate of organization or articles or certificate
of formation (as applicable), its bylaws, partnership agreement or operating agreement (as applicable), any provision of any Law
or any rule, regulation, judgment, order or ruling of any Governmental Authority (as hereinafter defined in this Subsection
7(D)), any agreement or any indenture, mortgage, or other instrument to which any Loan Party or the Negative Pledgor is a party
or by which any Loan Party, any Subsidiary of any Loan Party, or its respective properties are bound, or (ii) be in conflict with,
result in a breach of, or constitute with the giving of notice or lapse of time, or both, a default under any such agreement, indenture,
mortgage, or other instrument. All actions on the part of the shareholders, partners, managers or members (as applicable) of each
of each Loan Party and the Negative Pledgor necessary in connection with the execution and delivery by such Loan Party or the Negative
Pledgor, as applicable, of, and the performance by each of each Loan Party and the Negative Pledgor of its obligations under, the
Loan Documents to which it is a party have been taken and remain in full force and effect.

 

“Governmental
Authority” means any federal, state, provincial or other local government or Person exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity exercising
such functions owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing, including the Securities
and Exchange Commission, FCC and PUC. “FCC” means the Federal Communications Commission. “PUC”
means any state, provincial or other local public utility commission, local franchising authority, or similar regulatory agency
or body that exercises jurisdiction over the rates or services or the ownership, construction or operation of any Communications
System (and its related facilities) or over any Persons who own, construct or operate a Communications System, in each case by
reason of the nature or type of the business subject to regulation and not pursuant to Laws of general applicability to Persons
conducting business in any such jurisdiction. “Communications System” means a system or business providing
voice, data or video transport, connection, monitoring services, or other communications and/or information services (including
cable television), through any means or medium, and the provision of facilities, marketing, management, technical and financial
(including call rating) or other services to companies providing such transport, connection or monitoring services or constructing,
creating, developing or marketing communications-related network equipment, software and other devices for use in the business
described above.

 

(E)         Binding
Agreement. Each of the Loan Documents to which each of each Loan Party and the Negative Pledgor is a party is, or when executed
and delivered will be, the legal, valid, and binding obligation of such Loan Party or the Negative Pledgor, as applicable, enforceable
against such Loan Party or the Negative Pledgor, as applicable, in accordance with its terms, subject only to limitations on enforceability
imposed by (i) applicable bankruptcy, insolvency, reorganization, moratorium, or similar Laws affecting creditors’ rights
generally, and (ii) general equitable principles.

 

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(F)         Financial
Statements, Budgets, Projections, Etc.  All financial statements of any Loan Party or any Subsidiary of any Loan Party (collectively,
the “Reporting Parties”) submitted to CoBank in connection with, or to induce CoBank to enter into, this
Agreement or such Supplement fairly and fully present the financial condition of such Reporting Party in all material respects
and the results of such Reporting Party’s operations for the periods covered thereby, and are prepared in accordance with
generally accepted accounting principles (“GAAP”) consistently applied, except, in the case of any unaudited
financial statements, the omission of footnotes and, in the case of any interim financial statements, normal year-end adjustments.
As of the date of such financial statements, there were no material liabilities of such Reporting Party, fixed or contingent, not
reflected in such financial statements or the notes thereto. Since the date of such financial statements, there has been no material
adverse change in the financial condition or operations of such Reporting Party. All budgets, projections, feasibility studies,
and other documentation submitted by any Reporting Party to CoBank in connection with, or to induce CoBank to enter into, such
Supplement are based upon assumptions that are reasonable and realistic, and as of the date of such Supplement or request for advance,
no fact has come to light, and no event or transaction has occurred, which would cause any such assumption not to be reasonable
or realistic.

 

(G)         Consents
and Approvals. Except as contemplated in Section 19, no License of any Governmental Authority or of any party to any
agreement to which any Loan Party is a party or by which it, any of its Subsidiaries or any of its respective property may be bound
or affected, is necessary at the time this representation is being made or remade in connection with the project, acquisition or
other activity being financed by such Supplement, the execution, delivery, performance or enforcement of the Loan Documents
or the creation and perfection of the liens and security interests granted thereby, except such as have been obtained and are in
full force and effect or which are required in connection with the enforcement of or exercise of remedies under any Loan Document.

 

(H)         Compliance.
Each of each Loan Party and the Negative Pledgor is in compliance with all of the terms of the Loan Documents to which it is a
party and no Event of Default or Potential Default exists.

 

(I)         Compliance
with Laws. Each Loan Party and each Subsidiary of any Loan Party is in compliance in all material respects with all Laws, the
failure to comply with which could reasonably be expected to have a Material Adverse Effect.

 

(J)         Environmental
Compliance. Without limiting the provisions of Subsection 7(I), except as set forth on Schedule 7(J):

 

(1)         all
property owned by any Loan Party or any Subsidiary of any Loan Party and all operations conducted by any Loan Party or any Subsidiary
of any Loan Party are in compliance in all material respects with all Environmental Laws (as hereinafter defined in this Subsection
7(J));

 

(2)         to
the Borrower’s knowledge, no Hazardous Substance (as hereinafter defined in this Subsection 7(J)) has been released
onto or disposed of or is otherwise present in, on, under, over, at, about or from any property owned by any Loan Party or any
Subsidiary of any Loan Party;

 

(3)         no
investigations, inquiries, orders, hearings, liens, claims, actions or other proceedings by or before any Governmental Authority
or third-party claims are pending or, to the Borrower’s knowledge, threatened in connection with any violation of Environmental
Laws with respect to any property owned by any Loan Party or any Subsidiary of any Loan Party; and

 

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(4)         other
than as described in Schedule 7(J)(4), there are no underground storage tanks of any kind or character, whether empty
or containing substances or any nature, located on or under any property owned by any Loan Party or any Subsidiary of any
Loan Party and any and all aboveground storage tanks located on any property owned by any Loan Party or any Subsidiary
of any Loan Party are in compliance with all Environmental Laws, and to Borrower's knowledge after due investigation,
all underground storage tanks that have ever been located on or under any such property have been removed in compliance with Environmental
Laws existing at the time of removal.

 

“Environmental
Laws” means any and all laws, statutes, regulations, ordinances, rules, codes, judgments, decrees, orders, guidance
documents, or other legally enforceable requirements now or hereafter in effect of any federal, state, municipal or local Governmental
Authority relating to (i) pollution or protection of human health or the environment, including the air, water, land, or natural
resources; (ii) exposure of persons or property to Hazardous Substances; or (iii) the generation, use, handling, treatment, storage,
disposal, arrangement for disposal, and transportation of harmful and deleterious substances.

 

“Hazardous
Substance” means (i) any petroleum or petroleum products, natural gas, or natural gas products, radioactive materials,
asbestos, lead, urea formaldehyde foam insulation, transformers or other equipment that contains dielectric fluid containing levels
of polychlorinated biphenyls (PCBs) and radon gas; (ii) any chemical, material, waste or substance defined, listed, classified
or described as “hazardous substance,” “hazardous waste,” “regulated substance,” “solid
waste,” “hazardous material,” “extremely hazardous waste,” “restricted hazardous waste,”
“toxic substance,” “toxic pollutant,” “contaminant,” or “pollutant” under any Environmental
Laws; and (iii) any material, waste or substance which is in any way regulated as hazardous or toxic or actually or potentially
causing damage or injury to human health or the environment by any Governmental Authority.

 

(K)         Litigation.
There is no pending legal, arbitration, or governmental action or proceeding to which any Loan Party is a party or to which any
of its respective Subsidiaries or its respective properties are subject which, if adversely determined, could reasonably be expected
to have a Material Adverse Effect, and to the best of the Borrower’s knowledge, no such action or proceeding is threatened
or contemplated.

 

(L)         Principal
Place of Business; Records. The principal place of business and chief executive office of the Borrower and the place where
the records required by Subsection 8(F) are kept is at the address of the Borrower shown in Section 15.

 

(M)         Employee
Benefit Plans. Each Loan Party and each Subsidiary of any Loan Party is in compliance in all material respects with the applicable
provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”), and the regulations and
published interpretations thereunder, the failure to comply with which could reasonably be expected to have a Material Adverse
Effect.

 

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(N)         Taxes.
Each Loan Party and each Subsidiary of any Loan Party has filed or caused to be filed prior to delinquency all federal and all
material state and local tax returns that are required to be filed, and has paid and shall continue to pay when due all taxes as
shown on such returns, and has paid and shall continue to pay when due all other taxes, assessments and governmental charges or
levies upon it and its property, income, profits and assets which are due and payable, except where the payment of such
tax, assessment, governmental charge or levy is being contested in good faith and by appropriate proceedings and adequate reserves
in compliance with GAAP have been set aside on such Loan Party’s or such Subsidiary’s books therefor.

 

(O)         Investment
Company Act. No Loan Party and no Subsidiary of any Loan Party is an “investment company” as that term is defined
in, or is otherwise subject to regulation under, the Investment Company Act of 1940, as amended.

 

(P)         Use
of Proceeds. The funds to be borrowed under this Agreement and each Supplement will be used only as contemplated thereby. No
part of such funds will be used to purchase any “margin securities” or otherwise in violation of the regulations of
the Federal Reserve System.

 

(Q)         Subsidiaries;
Investments. Each of the Loan Parties and each of the Subsidiaries of the Loan Parties has no Subsidiaries other than as set
forth on Schedule 7(Q) and no Investments (as hereinafter defined in Subsection 9(F)) other than as permitted
in Subsection 9(F). Each of the Loan Parties and each of the Subsidiaries of any Loan Party is the registered and beneficial
owner of the specified percentage of the shares of issued and outstanding capital stock or other equity interests of each of its
Subsidiaries as set forth on Schedule 7(Q), which stock and other equity interests are owned free and clear of all
liens (other than liens and security interests permitted by Subsection 9(B)), warrants, options, rights to purchase, rights
of first refusal and other interests of any Person other than CoBank. The stock or other equity interests of each Loan Party and
each Subsidiary of any Loan Party has been duly authorized and validly issued and is fully paid and non-assessable.

 

(R)         Licenses;
Permits; Etc. Each Loan Party and each Subsidiary of any Loan Party is the valid holder of all Licenses which are material
to the conduct of its business or which may be required by Law, including all Telecommunications Licenses (as hereinafter defined
in this Subsection 7(R)), and all such Licenses are in full force and effect.

 

“Telecommunications
Licenses” means any cable television franchise or any landline telephone, or cellular telephone, microwave, personal
communications or other telecommunications or similar license, authorization, registration, certificate, waiver, certificate of
compliance, franchise, approval, material filing, exemption, order, or permit now or hereafter granted or issued by the FCC or
any applicable PUC or other Governmental Authority.

 

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(S)         Indebtedness,
Etc. No Loan Party and no Subsidiary of any Loan Party has incurred, assumed or allowed to exist, directly or indirectly, any
indebtedness or liabilities except as permitted pursuant to Subsection 9(A) or any guaranty, surety or other contingent
obligation except as permitted pursuant to Subsection 9(C), or, in each case, except as otherwise set forth on Schedule
7(S) hereto.

 

(T)         Title
to Properties.  Each Loan Party and each Subsidiary of any Loan Party has such title or leasehold interest in and to the real
property owned or leased by it as is necessary or desirable to the conduct of its business and valid and legal title or leasehold
interest in and to all of its personal property, including those reflected on the financial statements of the Borrower delivered
pursuant to Subsection 8(H), except those which have been disposed of by such Loan Party or such Subsidiary subsequent to
the date of such delivered financial statements which dispositions have been in the ordinary course of business or as otherwise
expressly permitted hereunder.

 

(U)         Material
Contracts. Each Loan Party and each Subsidiary of any Loan Party has performed all of its material obligations under all Material
Contracts and, to the best knowledge of the Borrower, each other party thereto is in compliance with each such Material Contract
(as hereinafter defined in this Subsection 7(U)). Each such Material Contract is in full force and effect in accordance
with the terms thereof.

 

“Material
Contract” means (a) any contract or any other agreement, written or oral, of any Loan Party or any Subsidiary of
any Loan Party involving monetary liability of or to any such Person in an amount in excess of $1,000,000 per annum and (b) any
other contract or agreement, written or oral, of any Loan Party or any Subsidiary of any Loan Party the failure to comply with
which could reasonably be expected to have a Material Adverse Effect; provided, however, that any contract or agreement
which is terminable by a party other than any Loan Party or any Subsidiary of a Loan Party without cause upon notice of 90 days
or less shall not be considered a Material Contract.

 

(V)         Intellectual
Property. Each Loan Party and each Subsidiary of any Loan Party owns, or possesses through valid licensing arrangements, the
right to use all patents, copyrights, trademarks, trade names, service marks, technology know-how and processes used in or necessary
for the conduct of its business as currently or anticipated to be conducted (collectively, the “Intellectual Property
Rights”) without infringing upon any validly asserted rights of others. No event has occurred which permits, or after
notice or lapse of time or both would permit, the revocation or termination of any such rights. No Loan Party and no Subsidiary
of any Loan Party has been threatened with any litigation regarding Intellectual Property Rights that would present a material
impediment to the business of any such Person.

 

(W)         Liens.
The property of each Loan Party and each Subsidiary of any Loan Party is subject to no lien, security interest or other encumbrance
except as permitted pursuant to Subsection 9(B).

 

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(X)         Solvency.
Each of the Loan Parties, consolidated with its respective Subsidiaries: (i) owns and will own assets the present fair saleable
value of which are (a) greater than the total amount of liabilities (including contingent liabilities) of such Loan Party and its
respective Subsidiaries, and (b) greater than the amount that will be required to pay the probable liabilities of such Loan Party’s
and its respective Subsidiaries’ then existing debts and liabilities as they become absolute and matured considering all
financing alternatives and potential asset sales reasonably available to such Loan Party and its respective Subsidiaries; (ii)
has capital that is not unreasonably small in relation to its respective business as presently conducted or after giving effect
to any contemplated transaction; and (iii) does not intend to incur and does not believe that it will incur debts and liabilities
beyond its respective ability to pay such debts and liabilities as they become due. None of the Loan Parties have incurred or will
incur any obligation under this Agreement or any other Loan Document or made or will make any conveyance pursuant to or in connection
therewith, with actual intent to hinder, delay or defraud either present or future creditors of any of the Loan Parties.

 

SECTION 8.      Affirmative
Covenants. Unless otherwise agreed to in writing by CoBank, while this Agreement is in effect, the Borrower will, and will
cause each other Loan Party and each Subsidiary of any Loan Party to:

 

(A)         Existence,
Licenses. Etc. (i) Preserve and maintain in full force and effect its existence and good standing in the jurisdiction
of its incorporation, organization or formation (as applicable); (ii) qualify and remain qualified to transact business in all
jurisdictions where such qualification is required by applicable Laws, except where failure to be so qualified could not reasonably
be expected to have a Material Adverse Effect; and (iii) obtain and maintain all Licenses, which if not obtained and maintained
could reasonably be expected to have a Material Adverse Effect.

 

(B)         Compliance
with Laws and Agreements. Comply in all material respects with (i) all Laws, the failure to comply with which could reasonably
be expected to have a Material Adverse Effect, and (ii) all agreements, indentures, mortgages, and other instruments to which any
Loan Party or any Subsidiary of any Loan Party is a party or by which it or any of its respective property is bound, the failure
to comply with which could reasonably be expected to have a Material Adverse Effect.

 

(C)         Compliance
with Environmental Laws. Without limiting the provisions of Subsection 8(B), comply in all material respects, and cause
all Persons occupying or present on any properties owned or leased by it to comply in all material respects, with all applicable
Environmental Laws, the failure to comply with which could reasonably be expected to have a Material Adverse Effect.

 

(D)         Insurance.
Maintain insurance with insurance companies or associations reasonably acceptable to CoBank in such amounts and covering such risks
as are usually carried by companies engaged in the same business and similarly situated, and make such increases in the type or
amount of coverage as CoBank may reasonably request. Within 60 days after the date hereof, the Loan Parties will, and will cause
their respective Subsidiaries to, name CoBank, pursuant to endorsements and assignments in form and substance reasonably satisfactory
to CoBank, (i) as a lender loss payee and mortgagee, if applicable, in the case of any casualty insurance, (ii) as an additional
insured in the case of all liability insurance, and (iii) as an additional insured in the case of any flood insurance, in each
case, with respect to any collateral for the Borrower’s obligations to CoBank. Proceeds of such insurance policies shall
be applied, to the extent applicable, as provided in the Loan Documents. At CoBank's request, the Borrower agrees to deliver to
CoBank such proof of compliance with this Subsection 8(D) as CoBank may require.

 

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(E)         Property
Maintenance. Maintain and preserve all of its property and each and every part and parcel thereof that is necessary to or useful
in the ordinary conduct of its business in good repair, working order, and condition, ordinary wear and tear excepted, and in compliance
with all applicable Laws, and make all alterations, replacements, and improvements thereto as may from time to time be necessary
in order to ensure that its properties remain in good working order and condition and compliance. The Borrower agrees that upon
the occurrence and during the continuance of an Event of Default, at CoBank’s request, the Borrower will furnish to CoBank
a report on the condition of any Loan Party’s and any Loan Party’s Subsidiary’s property prepared by a professional
engineer satisfactory to CoBank.

 

(F)         Books
and Records. Keep adequate records and books of account in which complete and accurate entries will be made in accordance with
GAAP consistently applied.

 

(G)         Inspection.
Permit CoBank or its representatives, upon reasonable notice and during normal business hours or at such other times as the
parties may agree, to examine any Loan Party’s properties, books, and records, and to discuss any Loan Party’s or any
Loan Party’s Subsidiary’s affairs, finances, and accounts, with any Loan Party’s or any Loan Party’s Subsidiary’s
officers, directors, employees, and independent certified public accountants; provided, however, that upon the occurrence and during
the continuance of an Event of Default, CoBank or its representatives may conduct such visits and inspections and engage in such
discussions at the expense of the Borrower, and as frequently as it may reasonably specify.

 

(H)         Reports
and Notices. Furnish, or cause to be furnished, to CoBank:

 

(1)         Annual
Financial Statements. As soon as available, but in no event later than 90 days after the end of each fiscal year of the Borrower
occurring during the term hereof, either (i) the Borrower’s Annual Report on Form 10-K filed with the SEC for such fiscal
year, or (ii) annual, audited, consolidated financial statements of the Borrower, prepared in accordance with GAAP consistently
applied and in a format that demonstrates any accounting or formatting change that may be required by the various jurisdictions
in which the business of the Borrower and its consolidated Subsidiaries is conducted (to the extent not inconsistent with GAAP).
Such financial statements shall: (a) be audited by independent certified public accountants selected by the Borrower and reasonably
acceptable to CoBank; (b) be accompanied by a report of such accountants containing an opinion (unqualified as to scope and going
concern) thereon reasonably acceptable to CoBank; (c) be prepared in reasonable detail, and in comparative form; and (d) include
a balance sheet, a statement of income, a statement of stockholders’, members’ or partners’ equity, as applicable,
a statement of cash flows and all notes and schedules relating thereto.

 

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(2)         Quarterly
Financial Statements. As soon as available but in no event later than 45 days after the end of each of the first three fiscal
quarters of each fiscal year of the Borrower occurring during the term hereof, either (i) its Quarterly Report on Form 10-Q filed
with the SEC for each such fiscal quarter, or (ii) the Borrower’s unaudited quarterly consolidated financial statements of
the Borrower, prepared in accordance with GAAP consistently applied (except for the omission of footnotes and for the effect of
normal year-end audit adjustments) and in a format that demonstrates any accounting or formatting change that may be required by
various jurisdictions in which the business of the of the Borrower and its consolidated Subsidiaries is conducted (to the extent
not inconsistent with GAAP). Each of such financial statements shall (a) be prepared in reasonable detail and in comparative
form, including a comparison of actual performance to the budget for such quarter and year-to-date, delivered to CoBank under Subsection
8(H)(3), and (b) include a balance sheet, a statement of income for such quarter and for the period year-to-date, and
such other quarterly statements as CoBank may specifically request which quarterly statements shall include any and all supplements
thereto.

 

(3)         Budget.
As soon as reasonably available, but in no event later than 30 days after the first day of each fiscal year of the Borrower occurring
during the term hereof, Board and management approved operating and capital assets budgets of the Borrower, the other Loan Parties
and their respective Subsidiaries for such fiscal year, in detail reasonably satisfactory to CoBank.

 

(4)         Notice
of Default. Promptly after becoming aware thereof, notice of (i) the occurrence of any Potential Default or Event of Default
under any of the Loan Documents; and (ii) the occurrence of any breach, default, event of default, or other event or occurrence
of any other condition which with the giving of notice or lapse of time, or both, could become a breach, default, or event of default
under any agreement, indenture, mortgage, or other instrument (other than the Loan Documents) to which it is a party or by which
it or any of its property is bound or affected; provided, however, that the failure to give such notice shall not
affect the right and power of CoBank to exercise any and all of the remedies specified herein.

 

(5)         Notice
of Non-Environmental Litigation. Promptly after the commencement thereof, notice of the commencement of all actions, suits,
or proceedings before any Governmental Authority affecting any Loan Party or any Subsidiary of any Loan Party which, if determined
adversely, could reasonably be expected to have a Material Adverse Effect.

 

(6)         Notice
of Environmental Matters. Without limiting the provisions of Subsection 8(H)(5), promptly after receipt thereof, notice
of the receipt of all pleadings, inquiries, proceedings, demands, claims, liens, actions, orders, complaints, indictments, or any
other communication alleging a condition that may require any Loan Party or any Subsidiary of any Loan Party to undertake or to
contribute to a cleanup or other response under any Environmental Laws, or which seeks penalties, damages, injunctive relief, criminal
sanctions or other relief related to alleged violations of such Environmental Laws, or which claims personal injury or property
damage to any Person as a result of environmental factors or conditions, and which could reasonably be expected to have a Material
Adverse Effect if adversely determined.

 

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(7)         Regulatory
and Other Notices. Promptly after filing, receipt or becoming aware thereof, copies of any filings or communications sent to
and notices or other communications received by any Loan Party or any Subsidiary of any Loan Party from any Governmental Authority
relating to any material noncompliance by such Loan Party or such Subsidiary with any Laws or with respect to any matter or proceeding
the effect of which, if adversely determined, could have a Material Adverse Effect.

 

(8)         Material
Adverse Change.  Promptly after becoming aware thereof, notice of any matter which has had or could reasonably be expected
to have a Material Adverse Effect.

 

(9)         Compliance
Certificates. Concurrently with each statement required to be furnished pursuant to Subsection 8(H)(1) or Subsection
8(H)(2), a compliance certificate in the form attached hereto as Exhibit A executed by the chief executive officer or
the chief financial officer of the Borrower (or such other officer as CoBank shall agree to in writing in its sole discretion).

 

(10)        
Management Letters. Promptly after receipt thereof, a copy of any management letters submitted to any Loan Party or any Subsidiary
of any Loan Party by its independent certified public accountants.

 

(11)        ERISA
Reportable Events. Within 30 days after it becomes aware of the occurrence of any Reportable Event (as defined in Section 4043
of ERISA) applicable to any Loan Party or any Subsidiary of any Loan Party, a statement describing such Reportable Event and the
actions it proposes to take in response to such Reportable Event.

 

(12)        Other
Information. Such other information regarding the condition, financial or otherwise, or operations of any Loan Party or any
Subsidiary of any Loan Party or any guarantor of the Borrower’s obligations hereunder as CoBank may, from time to time, request.

 

(I)         Financial
Covenants. All of the following financial covenants shall, except as expressly provided otherwise, be determined on a consolidated
basis and in accordance with GAAP consistently applied:

 

(1)         Total
Leverage Ratio. The Borrower shall maintain at all times, measured on a consolidated basis for the Borrower and its Subsidiaries
and reported as of the last day of each fiscal quarter of the Borrower (each a “Quarterly Date”), a Total
Leverage Ratio not exceeding 2.50:1.00.

 

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The
term “Total Leverage Ratio” shall mean the ratio of Indebtedness on the applicable Quarterly Date to
Operating Cash Flow (as each such term is hereinafter defined) for the then most recently completed four fiscal quarters. “Indebtedness”
shall mean (i) obligations for borrowed money, (ii) obligations representing the deferred purchase price of property or services
other than accounts payable arising in connection with the purchase of goods or services on terms customary in the trade, (iii)
obligations, whether or not assumed, secured by liens or a pledge of or an encumbrance on the proceeds or production from property
now or hereafter owned or acquired, (iv) obligations which are evidenced by notes, acceptances or other instruments, (v) leases
of real or personal property which are required to be capitalized under GAAP (each a “Capital Lease”),
and (vi) fixed payment obligations under guarantees that are due and remain unpaid. For purposes of this Agreement, the term “Operating
Cash Flow” (i) shall mean the sum of (a) net income or deficit, as the case may be (excluding extraordinary gains
and losses and the write-up or down of any asset), plus (b) total interest expense (including non-cash interest), plus (c) depreciation
and amortization expense plus (d) taxes, federal and state, imposed on income, to the extent deducted in determining income plus
(e) for the relevant period, the excess, if any, of cash distributions received by the Borrower from the O-P Partnership during
such period over any net income of the O-P Partnership included in net income under clause (a) of this definition plus (f) non-cash
compensation paid in stock or other equity to employees of the Borrower or any of its Subsidiaries, minus, (g) for the relevant
period, the excess, if any, of any net income of the O-P Partnership included in net income under clause (a) of this definition
over cash distributions received by the Borrower from the O-P Partnership during such period, and (ii) shall be adjusted to give
effect to any acquisition, sale or other disposition, directly or through a Subsidiary, of any business (or any portion thereof)
during the period of calculation as if such acquisition, sale or other disposition occurred on the first day of such period of
calculation.

 

(2)         Indebtedness
to Total Capitalization Ratio. Maintain at all times, measured at each Quarterly Date, an Indebtedness to Total Capitalization
Ratio (as hereinafter defined) not exceeding 0.50:1.00.

 

The
term “Indebtedness to Total Capitalization Ratio” shall mean the ratio derived by dividing (i) Indebtedness
by (ii) Total Capitalization (as hereinafter defined). The term “Total Capitalization” shall mean that
amount equal to Indebtedness plus the difference of (x) total assets minus (y) total liabilities.

 

(3)         Debt
Service Coverage Ratio. The Borrower shall maintain at all times, measured on a consolidated basis for the Borrower and its
Subsidiaries and reported as of each Quarterly Date, during the periods set forth below, a Debt Service Coverage Ratio greater
than or equal to 2.50:1:00.

 

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The
term “Debt Service Coverage Ratio” shall mean, as of the date of calculation, the ratio derived by dividing
(i) Operating Cash Flow minus cash taxes measured by (ii) the sum of: (a) the difference of (x) all principal payments scheduled
to be made on Indebtedness (or scheduled reductions in commitments on lines of credit to the extent such reductions would cause
the repayment of principal amounts then outstanding under such lines) less (y) to the extent included in principal payments made
on Indebtedness, all principal payments scheduled to be made pursuant to Section 3.5 of that certain Asset Purchase Agreement,
dated as of July 14, 2011, by and among Warwick Valley Networks, Inc., the Borrower and Alteva, LLC (as the same has been amended,
modified, supplemented and restated from time to time), in an aggregate amount not to exceed $2,750,000 (the “Alteva
Earn Out Amount”), plus (b) cash interest expense, each measured in the same manner as Operating Cash Flow set forth
in Subsection 8(I)(1) above and for the then most recently completed four fiscal quarters.

 

(4)         Fixed
Charge Coverage Ratio. The Borrower shall maintain at all times, measured on a consolidated basis for the Borrower and its
Subsidiaries and reported as of each Quarterly Date, commencing on the Quarterly Date falling on March 31, 2013 and calculated
as set forth below, a Fixed Charge Coverage Ratio greater than or equal to 1.00:1:00.

 

The
term “Fixed Charge Coverage Ratio” shall mean, as of the date of calculation, the ratio derived by dividing
(i) Operating Cash Flow by (ii) Fixed Charges. The term “Fixed Charges” shall mean the sum of (i) scheduled
principal payments made on Indebtedness (or scheduled reductions in commitments on lines of credit to the extent such reductions
caused the repayment of principal amounts then outstanding under such lines), (ii) cash interest expense, (iii) cash income taxes,
(iv) capital expenditures, (v) management fees, and (vi) dividends and distributions. For the Quarterly Date occurring on March
31, 2013, the Fixed Charge Coverage Ratio shall be calculated for the then most recently completed fiscal quarter. For the Quarterly
Date occurring on June 30, 2013, the Fixed Charge Coverage Ratio shall be calculated for the then most recently completed two fiscal
quarters. For the Quarterly Date occurring on September 30, 2013, the Fixed Charge Coverage Ratio shall be calculated for the then
most recently completed three fiscal quarters. For the Quarterly Date occurring on December 31, 2013, and for each Quarterly Date
occurring thereafter, the Fixed Charge Coverage Ratio shall be calculated for the then most recently completed four fiscal quarters.

 

(J)         Capital.
Acquire equity in CoBank in such amounts and at such times as CoBank may from time to time require in accordance with its Bylaws
and Capital Plan (as each may amended from to time time), except that the maximum amount of equity that the Borrower may be required
to purchase in connection with a Loan may not exceed the maximum amount permitted by the Bylaws at the time the Note and Supplement
relating to such Loan is entered into or such Loan is renewed or refinanced by CoBank. The rights and obligations of the parties
with respect to such equity and any patronage or other distributions made by CoBank shall be governed by CoBank’s Bylaws
and Capital Plan.

 

(K)         Taxes.
File or caused to be filed prior to delinquency all federal and all material state and local tax returns that are required to be
filed, and pay when due all taxes as shown on such returns, any pay when due all other taxes, assessments and governmental charges
or levies upon it and its property, income, profits and assets which are due and payable, except where the payment of such tax,
assessment, government charge or levy is being contested in good faith and by appropriate proceedings and adequate reserves in
compliance with GAAP have been set aside on such Loan Party’s or such Subsidiary’s books therefor.

 

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(L)         Use
of Proceeds. The funds to be borrowed under this Agreement and each Supplement will be used only as contemplated hereby and
thereby. No part of such funds will be used to purchase any “margin securities” or otherwise in violation of the regulations
of the Federal Reserve System.

 

SECTION 9.      Negative
Covenants. Unless otherwise agreed to in writing by CoBank, while this Agreement is in effect the Borrower will not, will cause
the other Loan Parties not to, and will cause any Subsidiary of any Loan Party not to:

 

(A)         Borrowings.
Create, incur, assume, or allow to exist, directly or indirectly, any Indebtedness except for (i) obligations to CoBank, (ii) unsecured
Indebtedness in an amount not to exceed $6,500,000, less any amount outstanding as permitted pursuant to Subsection 9(A)(iii),
in the aggregate for the Borrower and its Subsidiaries at any one time, (iii) Indebtedness under purchase money security agreements
and Capital Leases in an amount not to exceed $2,500,000, less any amount outstanding as permitted pursuant to Subsection 9(A)(ii)
in excess of $4,000,000, in the aggregate for the Borrower and its Subsidiaries at any one time, and (iv) Indebtedness with respect
to the Alteva Earn Out Amount (as defined in Subsection 8(K)).

 

(B)         Liens.
Create, incur, assume, or allow to exist any mortgage, deed of trust, pledge, lien (including the lien of an attachment, judgment,
or execution), security interest, or other encumbrance of any kind upon any of its property, real or personal. The foregoing restrictions
shall not apply to (i) liens in favor of CoBank; (ii) liens for taxes, assessments, or governmental charges that are not past
due, unless the same are being contested in good faith and by appropriate proceedings and then only if and to the extent reserves
required by GAAP have been set aside therefor; (iii) liens, pledges, and deposits under workers’ compensation, unemployment
insurance, social security and similar Laws; (iv) liens, deposits, and pledges to secure the performance of bids, tenders, contracts
(other than contracts for the payment of money), and like obligations arising in the ordinary course of its business; (v) liens
imposed by Law in favor of mechanics, materialmen, warehousemen, lessors and like Persons that secure obligations that are not
past due, unless the same are being contested in good faith and by appropriate proceedings and then only if and to the extent reserves
required by GAAP have been set aside therefor; (vi) liens constituting encumbrances in the nature of zoning restrictions, easements
and rights or restrictions of record on the use of real property of any Loan Party or any Subsidiary of any Loan Party that, in
the sole judgment of CoBank, do not materially detract from the value of such real property or impair the use thereof in such Loan
Party’s or such Subsidiary’s business; (vii) judgment liens, provided enforcement thereof is effectively stayed
and the claims secured thereby are being contested in good faith by appropriate proceedings and for which reserves have been established
in accordance with GAAP; and (viii) purchase money security interests and Capital Leases securing Indebtedness permitted under
Subsection 9(A)(iii) in an amount not to exceed the cost incurred to acquire or lease such property, provided further that
such security interests and leases do not encumber any property other than the items purchased with the proceeds thereof or leased
thereby.

 

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(C)         Contingent
Liabilities. Assume, guarantee, become liable as a surety, endorse, contingently agree to purchase, or otherwise be or become
liable, directly or indirectly (including, but not limited to, by means of a maintenance agreement, an asset or stock purchase
agreement, or any other agreement designed to ensure any creditor against loss), for or on account of the obligation of any Person
or Persons, except (i) for indebtedness permitted by this Agreement, (ii) pursuant to the Continuing Guaranty required by Section
5 and by the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course
of a Loan Party's or a Loan Party’s Subsidiary’s business, or (iii) pursuant to (x) that certain Order Authorizing
Restructuring and Transfer of Investment Revenues issued by the New York PUC, effective as of July 13, 2012, as amended by that
certain Erratum Notice, issued July 25, 2012, by the New York PUC, and that certain Order Approving Issuance of Securities and
Transfer with Conditions issued by the New York PUC, effective as of October 22, 2012 (together, the “New York PUC
Order”) and (y) that certain Telecommunications Order In the Matter of the Petition of Warwick Valley Telephone Company
for Approval of a Proposed Restructuring Plan, issued by the New Jersey PUC on August 15, 2012, and that certain Telecommunications
Order in the Matter of the Petition of Warwick Valley Telephone Company for Authorization to Transfer Assets to Warwick Valley
Telephone Restructuring Company, LLC and to Surrender its Certificate of Public Convenience and Necessity; and Petition of Warwick
Valley Telephone Restructuring Company, LLC for (i) Issuance of a Certificate of Public Convenience and Necessity (ii) Approval
of its Adoption of Warwick Valley Telephone Company’s Plan for Alternative Regulation and Intrastate Tariffs and (iii) Related
Relief, issued by the New Jersey PUC on October 23, 2012 (together, the “New Jersey PUC Order”), in each
case subject to the limitations set forth in Subsection 9(F).

 

(D)         Fundamental
Changes. (i) Unless, and only to the extent required by Law, amend, modify or waive any provision of its articles or certificate
of incorporation, articles or certificate of organization, articles or certificate of formation (as applicable) other than an amendment,
modification or waiver that is solely ministerial or administrative in nature; provided, however, Borrower shall promptly
give CoBank notice of any such amendment, modification or waiver, bylaws, partnership agreement or operating agreement (as applicable),
(ii)  merge or consolidate with any other Person or acquire all or substantially all of the assets of any Person,
provided that, upon 30 days prior written notice to CoBank of its intention to do so and delivery to CoBank of any
documents, instruments, financial statements and opinions that CoBank may reasonably request, any Loan Party may (x) merge or consolidate
with or dissolve into the Borrower if the Borrower is the surviving entity, or (y) merge or consolidate with or dissolve into any
Loan Party other than the Borrower, (iii) form, create or acquire any Subsidiary, or (iv) commence operations under any
other name (without providing CoBank 30 days’ prior written notice thereof), organization, or Person, including any joint
venture.

 

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(E)         Transfer
of Assets. Sell, transfer, lease, enter into any contract for the sale, transfer or lease of, or otherwise dispose of, any
of its assets (including, without limitation, the sale, transfer, lease, pledge or other disposition by the Borrower of any interest
held by it in the O-P Partnership except as a result of the Borrower exercising its put option pursuant to the Put Option Agreement),
except (i) bona fide sales of inventory in the ordinary course of business, (ii) dispositions of obsolete equipment not used or
useful in the business of such Loan Party or such Subsidiary in the ordinary course of business, (iii) sales of Investments described
in Subsection 9(F)(ii) through (v) for fair value, (iv) dispositions among Loan Parties, and (v) any other disposition of
assets if all of the following conditions are met: (a) the aggregate market value of assets sold in any one transaction or series
of related transactions for any calendar year does not exceed $500,000 for the Loan Parties and their respective Subsidiaries;
(b) the consideration received is at least equal to the fair market value of such assets; (c) the sole consideration received is
cash; (d) after giving effect to the sale or other disposition of such assets, Borrower, on a consolidated basis with its Subsidiaries,
is in compliance on a pro forma basis with the covenants set forth in Subsections 8(I) recomputed for the earlier of the
most recently ended month for which information is available or the most recently ended month which is more than 45 days prior
to the date of such asset disposition (calculated on a rolling twelve months basis); and (e) no Event of Default then exists or
shall result from such sale or other disposition.

 

(F)         Loans
and Investments. After the date hereof, make any loan or advance to, invest in, purchase or make any commitment to purchase
any stock, bonds, notes, or other securities of, or guarantee, assume, or otherwise become obligated or liable with respect to
the obligations of any person or entity (each, whether made directly or indirectly, an “Investment”) other than
(i) stock or other securities of, or investments in CoBank or CoBank investment services or programs, (ii) marketable direct obligations
issued or unconditionally guarantied by the United States Government or issued by any agency thereof and backed by the full faith
and credit of the United States, in each case maturing within one year from the date of acquisition thereof; (iii) commercial paper
maturing no more than one year from the date issued and, at the time of acquisition, having a rating of at least A- from Standard
& Poor’s Rating Service or at least A3 from Moody’s Investors Service, Inc.; (iv) certificates of deposit or bankers’
acceptances maturing within one year from the date of issuance thereof issued by, or overnight reverse repurchase agreements from,
any commercial bank organized under the laws of the United States of America or any state thereof or the District of Columbia having
combined capital and surplus of not less than $500,000,000; (v) time deposits maturing no more than 30 days from the date of creation
thereof with commercial banks having membership in the Federal Deposit Insurance Corporation in amounts at any one such institution
not exceeding the lesser of $100,000 or the maximum amount of insurance applicable to the aggregate amount of Borrower’s
deposits at such institution, (vi) Investments among Loan Parties, (vii) Investments in the Negative Pledgor in an amount not to
exceed $2,000,000; and (vii) other Investments not to exceed $2,500,000 in the aggregate at any time.

 

(G)         Change
in Business. Engage in any business activity or operation different from or substantially unrelated to such Loan Party’s
or such Subsidiary’s present business activities and operations.

 

(H)         Disposition
of Licenses.  Sell, assign, transfer or otherwise dispose of, or attempt to dispose of, in any way, any License which may be
required by Law or which is material to the conduct of its business, the disposition of which could reasonably be expected to have
a Material Adverse Effect.

 

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(I)         Dividends
and Other Distributions. Provide, make, declare or pay, directly or indirectly, any dividend or other distribution of assets
to shareholders of the Borrower, or retire, redeem, purchase or otherwise acquire for value any capital stock or equity interests
(as applicable) of the Borrower; provided, however, that (i) the Borrower may during the fiscal year ending December
31, 2012, make, declare or pay lawful cash dividends or distributions to the shareholders of the Borrower in an aggregate amount
which does not exceed $6,480,000, and (ii) so long as no Event of Default exists before or could reasonably be expected to result
under Subsection 8(I) in the succeeding twelve months after such dividend or other distribution, the Borrower may, during
any fiscal year ending after December 31, 2012, make, declare or pay lawful cash dividends or distributions to the shareholders
of the Borrower in an aggregate amount which does not exceed 100% of the net income of the Borrower for the prior fiscal year,
determined in accordance with GAAP consistently applied.

 

(J)         Transactions
with Affiliates. Other than as set forth on Schedule 9(J), directly or indirectly enter into or permit to exist any
transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate
(as hereinafter defined in this Subsection 9(J)) or with any director, officer or employee of any Loan Party or any Affiliate
of any Loan Party or any of its Subsidiaries, except (i) transactions among the Loan Parties, (ii) transactions in the ordinary
course of and pursuant to the reasonable requirements of the business of such Loan Party or such Subsidiary of any Loan Party and
upon fair and reasonable terms which are fully disclosed to CoBank and are no less favorable to such Loan Party or such Subsidiary
than would be obtained in a comparable arm’s length transaction with a Person that is not an Affiliate, and (iii) payment
of compensation to directors, officers and employees in the ordinary course of business for services actually rendered in their
capacities as directors, officers and employees, provided such compensation is reasonable and comparable with compensation
paid by companies of like nature and similarly situated. Notwithstanding the foregoing, upon the election of CoBank, no payments
may be made with respect to any items set forth in clauses (i) through (ii) of the preceding sentence upon the occurrence
and during the continuance of a Potential Default or an Event of Default.

 

“Affiliate”
means any Person: (i) directly or indirectly controlling, controlled by, or under common control with, any Loan Party or any Subsidiary
of any Loan Party; (ii) directly or indirectly owning or holding 5% or more of any equity interest in any Loan Party or any Subsidiary
of any Loan Party; or (iii) 5% or more of whose voting stock or other equity interest is directly or indirectly owned or held by
any Loan Party or any Subsidiary of any Loan Party, provided that the beneficial, and not the legal, holder of title to
any equity interest in any Loan Party or any Subsidiary of any Loan Party shall be deemed an Affiliate. For purposes of this definition,
“control” (including with correlative meanings, the terms “controlling,” “controlled by” and
“under common control with”) means the possession directly or indirectly of the power to direct or cause the direction
of the management and policies of a Person, whether through the ownership of voting securities or by contract or otherwise.

 

(K)         Management
Fees. Directly or indirectly pay any management, consulting or other similar fees to any Person, except (i) any management,
consulting or other similar fees paid to any Loan Party and (ii) legal or consulting fees paid to Persons that are not Affiliates
of any Loan Party or any Subsidiary of any Loan Party for services actually rendered and in amounts typically paid by entities
engaged in a Loan Party’s or a Subsidiary’s business.

 

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(L)         Modifications
of O-P Partnership Agreement. Make any modification or change, or grant any consent or waiver, under or with respect to that
certain Agreement Establishing Poughkeepsie Limited Partnership Between Nynex Communications Company and Contel Cellular, Inc.,
Highland Telephone Company, Sylvan Lake Telephone Company, Taconic Telephone Corporation and the Borrower, dated as of April 21,
1987 (as the same has been amended, modified, supplemented and restated from time to time, the “O-P Partnership Agreement”)
or any agreements related to the O-P Partnership Agreement (including, without limitation, the Put Option Agreement). Any consent
of CoBank to such modification, change, consent or waiver shall be conditioned upon the acceptability to CoBank of the terms and
conditions of such modification, change, consent or waiver, to be determined by CoBank in its reasonable discretion.

 

(M)         Inconsistent
Agreements. Enter into any agreement containing any provision which would (i) grant a negative pledge upon any of its property,
real or personal, in favor of any other creditor of any Loan Party or any Subsidiary of any Loan Party, except in connection
with Indebtedness under purchase money security agreements and Capital Leases permitted under Subsection 9(A)(iii), provided
that such negative pledge only relates to items purchased with the proceeds thereof or leased thereby, or (ii) create or permit
to exist or become effective any consensual encumbrance or restriction on the ability of such Loan Party or Subsidiary to (x) pay
dividends or make other distributions to its parent or any other applicable Subsidiary of its parent, or pay any Indebtedness owed
to its parent or any Subsidiary of its parent, (y) make loans or advances to its parent, or (z) transfer any of its assets or properties
to its parent.

 

(N)         Accounting.
Make any changes to any Loan Party or any Subsidiary of any Loan Party’s method of accounting except as required by GAAP
or by new accounting pronouncements, or calculation of such Loan Party or such Subsidiary of such Loan Party’s fiscal year.

 

SECTION 10.     Events
of Default. Each of the following shall constitute an “Event of Default” under this Agreement:

 

(A)         Payment
Default.  The Borrower should fail to (i) make any principal payment to CoBank under any Note, Supplement, Interest Rate Agreement
provided by CoBank or any other Loan Document to which the Borrower is a party at the time required, (ii) pay to CoBank, within
3 days of when due, any interest under any Note, Supplement, Interest Rate Agreement provided by CoBank or any other Loan Document
to which it is a party, or (iii) make any investment in CoBank required to be made hereunder.

 

(B)         Representations
and Warranties.  Any opinion, certificate or like document furnished to CoBank by or on behalf of any Loan Party or any Subsidiary
of any Loan Party, or any representation or warranty made herein, in any Note, any Supplement or in any other Loan Document shall
prove to have been false or misleading in any material respect on or as of the date made or deemed made.

 

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(C)         Certain
Affirmative Covenants. Any Loan Party or any Subsidiary of any Loan Party should fail to perform or comply with any covenant
set forth in Section 8 (other than Subsection 8(D), Subsection 8(H)), Subsection 8(I) and Subsection
8(L)) and such failure continues for 30 days after written notice thereof shall have been delivered by CoBank to the Borrower.

 

(D)         Other
Covenants and Agreements. Any Loan Party or any Subsidiary of any Loan Party should fail to perform or comply with Subsection
8(D), Subsection 8(H), Subsection 8(I), Subsection 8(L) or any other covenant or agreement contained in
this Agreement or in any other Loan Document or should use the proceeds of any Loan for an unauthorized purpose.

 

(E)         Cross-Default.
(i) The occurrence of a breach, default or event of default under any other Loan Document, (ii) the failure, after any applicable
grace period, on the part of any Loan Party, any Subsidiary of any Loan Party or any other Person that is a party to any other
Loan Document to observe, keep or perform any covenant or agreement contained in such other Loan Document, or (iii) the failure,
after any applicable grace period, on the part of any Loan Party, any Subsidiary of any Loan Party or any other Person that is
a party to any other Loan Document to observe, keep or perform any covenant or agreement contained in any agreement (other than
the Loan Documents) between such Person and CoBank or any affiliate of CoBank (including Farm Credit Leasing Services Corporation),
including any guaranty, loan agreement, lease, security agreement, subordination agreement, mortgage, deed to secure debt, or deed
of trust.

 

(F)         Other
Indebtedness. Any Loan Party, any Subsidiary of any Loan Party or any other guarantor of the Borrower’s obligations hereunder
should fail to pay when due any Indebtedness, or any other event occurs which, under any agreement or instrument relating to any
Indebtedness, has the effect of accelerating or permitting the acceleration of such Indebtedness, whether or not such Indebtedness
is actually accelerated or the right to accelerate is conditioned on the giving of notice, the passage of time, or otherwise, or
such Person commences the exercise of any remedies against such Loan Party, such Subsidiary of any Loan Party or other guarantor
of the Borrower’s obligations hereunder or its respective properties, and the aggregate amount of all such Indebtedness exceeds
$50,000.

 

(G)         Judgments.
A judgment, decree, or order for the payment of money in the aggregate amount of all such judgments, decrees or orders in excess
of $50,000 should be rendered against any Loan Party, any Subsidiary of any Loan Party or any other guarantor of the Borrower’s
obligations hereunder and either: (i) enforcement proceedings should have been commenced; (ii) a lien prohibited under Subsection
9(B) shall have been obtained; or (iii) such judgment, decree, or order should continue unsatisfied and in effect for
a period of 60 consecutive days without being vacated, discharged, satisfied, or stayed pending appeal.

 

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(H)         Insolvency,
Etc. Any Loan Party, any Subsidiary of any Loan Party or any other guarantor of the Borrower’s obligations hereunder
should: (i) become insolvent or should generally not, or should be unable to, or should admit in writing its inability to, pay
its debts as they come due; or (ii) suspend its business operations or a material part thereof or make an assignment for the
benefit of creditors; or (iii) apply for, consent to, or acquiesce in the appointment of a trustee, receiver, or other custodian
for it or any of its property or, in the absence of such application, consent, or acquiescence, a trustee, receiver, or other custodian
is so appointed; or (iv) commence or have commenced against it any proceeding under any bankruptcy, reorganization, arrangement,
readjustment of debt, dissolution, or liquidation Law of any jurisdiction, which, in the case of a proceeding commenced against
any Loan Party, any Subsidiary of any Loan Party or any other guarantor of the Borrower’s obligations hereunder, is not dismissed
within 45 days.

 

(I)         Material
Adverse Change. Any event, change or condition not referred to elsewhere in this Section 10 should occur which results
in a Material Adverse Effect.

 

(J)         Guarantees,
Etc. Any guarantee, suretyship, subordination agreement, maintenance agreement, pledge agreement or other agreement
furnished in connection with the Borrower’s, any other Loan Party’s or the Negative Pledgor’s obligations hereunder
or under any other Loan Document shall, at any time, cease to be in full force and effect, or shall be revoked or declared null
and void, or the validity or enforceability thereof shall be contested by the guarantor, pledgor, surety or other maker thereof
(individually or collectively, the “Surety”), or the Surety shall deny any further liability or obligation
thereunder, or shall fail to perform its obligations thereunder, or any representation or warranty set forth therein shall be breached,
or the Surety shall breach or be in default under the terms of any other agreement with CoBank (including any loan agreement or
security agreement), or a default set forth in Subsection 10(F) through Subsection 10(I) shall occur with respect
to the Surety or the Surety shall die, be determined to be legally incompetent, or merger, consolidate or dissolve into another
Person (except as expressly permitted pursuant to the terms of this Agreement).

 

(K)         Security.
Any pledge agreement, security agreement or other agreement executed by any of the Loan Parties, any Subsidiary of any Loan Party,
any other guarantor of the Borrower’s obligations hereunder, or any other Surety intended to create a valid and perfected
lien, security interest or security title in property as described herein or in a Supplement or any other Loan Document shall for
any reason (other than upon payment in full of the obligations secured thereby) fail (i) to create a valid and perfected lien,
security interest, or security title (subject only to such exceptions as are therein permitted) as contemplated herein or by the
Supplement or any other Loan Document, (ii) to secure thereunder the obligations purported to be secured thereby, or (iii) to have
the intended priority as contemplated by the Loan Documents.

 

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(L)         ERISA
Pension Plans. (i) Any Loan Party, any Subsidiary of any Loan Party, or any other guarantor of the Borrower’s obligations
hereunder fails to make full payment when due of all amounts which, under the provisions of any employee benefit plans or any applicable
provisions of the Internal Revenue Code of 1986 and all rules promulgated thereunder (the “IRC”), are
required to pay as contributions thereto, and such failure results in or could reasonably be expected to have a Material Adverse
Effect; (ii) there is a failure to satisfy the minimum funding standard (within the meaning of ERISA section 302 and IRC section
412) or a waiver thereof has been applied for or received; or (iii) any employee benefit plan of any Loan Party, any Subsidiary
of any Loan Party, or any other guarantor of the Borrower’s obligations hereunder loses its status as a qualified plan under
the IRC and such loss results in or could reasonably be expected to have a Material Adverse Effect.

 

(M)         Licenses
and Permits. (i) The loss, suspension or revocation of, or failure to renew, any License now held or hereafter acquired
by any Loan Party, any Subsidiary of any Loan Party, or any other guarantor of the Borrower’s obligations hereunder, if such
loss, suspension, revocation or failure to renew could reasonably be expected to have a Material Adverse Effect or (ii) any
regulatory or Governmental Authority replaces the management of any Loan Party, any Subsidiary of any Loan Party, or any other
guarantor of the Borrower’s obligations hereunder or assumes control over any Loan Party, any Subsidiary of any Loan Party,
or any other guarantor of the Borrower’s obligations hereunder.

 

(N)         Material
Contracts. Any Loan Party or any Subsidiary of any Loan Party should breach or be in default under a Material Contract, which
breach or default could reasonably be expected to have a Material Adverse Effect.

 

(O)         Change
in Control. Any Person shall acquire, in its own name or beneficially, directly or indirectly, more than 50% of the issued
and outstanding voting and other capital stock of the Borrower.

 

SECTION 11.    Remedies.
Upon the occurrence and during the continuance of an Event of Default or any Potential Default, CoBank shall have no obligation
to continue to extend credit to the Borrower under any Note or any Supplement or any other Loan Document and may discontinue doing
so at any time without prior notice. Upon the occurrence of an Event of Default under Subsection 10(H), the entire unpaid
principal balance of the Loans, all accrued interest thereon, and all other amounts payable under this Agreement, all Notes, all
Supplements and all other Loan Documents and all other agreements between CoBank and the Borrower shall become immediately due
and payable without protest, presentment, demand or further notice of any kind, all of which are hereby expressly waived by the
Borrower. In addition, upon the occurrence and during the continuance of any Event of Default, CoBank may:

 

(A)         Termination
and Acceleration. Terminate any commitment and declare the entire unpaid principal balance of the Loans, all accrued interest
thereon, and all other amounts payable under this Agreement, all Notes and Supplements, and the other Loan Documents to be immediately
due and payable. Upon such a declaration, the unpaid principal balance of the Loans and all such other amounts shall become immediately
due and payable, without protest, presentment, demand, or further notice of any kind, all of which are hereby expressly waived
by the Borrower.

 

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(B)         Enforcement.
Proceed to protect, exercise, and enforce such rights and remedies as may be provided by this Agreement, any other Loan Document
or under applicable Laws. Each and every one of such rights and remedies shall be cumulative and may be exercised from time to
time, and no failure on the part of CoBank to exercise, and no delay in exercising, any right or remedy shall operate as a waiver
thereof, and no single or partial exercise of any right or remedy shall preclude any other or future exercise thereof, or the exercise
of any other right. Without limiting the foregoing, CoBank may hold and/or set off and apply against the Borrower’s obligations
to CoBank the proceeds of any equity in CoBank, any cash collateral held by CoBank, or any balances held by CoBank for the Borrower’s
account (whether or not such balances are then due).

 

(C)         Application
of Funds. Apply all payments received by it to the Borrower’s obligations to CoBank in such order and manner as CoBank
may elect in its sole discretion; provided that any payments received from any guarantor or other Surety or from any disposition
of any collateral provided by such guarantor or such other Surety shall only be applied against obligations guaranteed or secured
by such guarantor or other Surety.

 

(D)         Default
Rate of Interest. In addition to the rights and remedies set forth above and notwithstanding any Note or Supplement, upon the
occurrence and during the continuance of an Event of Default, at CoBank’s option in each instance, the unpaid balances of
the Loans shall bear interest from the date of the Event of Default or such other later date as CoBank shall elect at 4.00% per
annum in excess of the rate(s) of interest that would otherwise be in effect on the Loans under the terms of the Notes and Supplements.
All interest provided for herein shall be payable on demand and shall be calculated from the date any such payment was due to the
date paid on the basis of a year consisting of 360 days.

 

SECTION 12.    Complete
Agreement, Amendments.  This Agreement, the Notes, the Supplements and the other Loan Documents are intended by the parties
to be a complete and final expression of their agreement. No amendment, modification, or waiver of any provision of this Agreement
or the other Loan Documents, and no consent to any departure by any Loan Party or any Subsidiary of any Loan Party or any other
party (other than CoBank) herefrom or therefrom, shall be effective unless approved by CoBank and contained in a writing signed
by or on behalf of CoBank, and then such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given. In the event this Agreement is amended or restated, each such amendment or restatement shall be applicable
to all Notes and all Supplements hereto. Each Note and each Supplement shall be deemed to incorporate all of the terms and conditions
of this Agreement as if fully set forth therein. Without limiting the foregoing, any capitalized term utilized in any Note or any
Supplement (or in any amendment to this Agreement or any Note or any Supplement) and not otherwise defined in the Note or the Supplement
(or amendment) shall have the meaning set forth herein..

 

SECTION 13.    Other
Types of Credit.  From time to time, CoBank may issue letters of credit or extend other types of credit to or for the account
of the Borrower. In the event the parties desire to do so under the terms of this Agreement, such extensions of credit may be set
forth in a Note or a Supplement and this Agreement shall be applicable thereto.

 

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SECTION 14.    Applicable
Law. Without giving effect to the principles of conflict of laws and except to the extent governed by federal law, the Laws
of the State of Colorado, without reference to choice of law doctrine, shall govern this Agreement, each Note and Supplement and
any other Loan Document for which Colorado is specified as the applicable law, and all disputes and matters between the parties
to this Agreement, including all disputes and matters whatsoever arising under, in connection with or incident to the lending and/or
leasing or other business relationship between the parties, and the rights and obligations of the parties to this Agreement or
any other Loan Document by and between the parties for which Colorado is specified as the applicable law.

 

SECTION 15.    Notices.
All notices hereunder or under any Note or any Supplement shall be in writing and shall be deemed to be duly given upon delivery
if personally delivered or sent by facsimile transmission (electronic confirmation received), or three days after mailing if sent
by express, certified or registered mail, to the parties at the following addresses (or such other address for a party as shall
be specified by like notice):

 

	If to CoBank, as follows:	 	If to the Borrower, as follows:
	 	 	 
	CoBank, ACB	 	Warwick Valley Telephone Company
	900 Circle 75 Parkway	 	47 Main Street
	Suite 1400	 	Warwick, New York 10990
	Atlanta, Georgia  30339	 	Attn:  Chief Financial Officer
	Attn: Communications and Energy Banking Group	 	Fax No.:  (845) 986-6699
	Fax No.: (770) 618-3202	 	 
	 	 	 
	With copy to:	 	With a copy to:
	 	 	 
	CoBank, ACB	 	James M. Jenkins
	5500 S. Quebec Street	 	Harter, Secrest & Emery LLP
	Greenwood Village, Colorado  80111	 	1600 Bausch & Lomb Place
	Attn: Communications Banking Group	 	Rochester, NY  14604
	Fax No.:  303-224-2718	 	Fax No.:  (583) 232-2152

 

SECTION 16.    Costs,
Expenses and Taxes. To the extent allowed by Law, the Borrower agrees to pay all reasonable out-of-pocket costs and expenses
(including the fees and expenses of counsel retained or employed by CoBank) incurred by CoBank in connection with the origination,
negotiation, documentation, administration, amendment, waiver, extension, collection, and enforcement of this Agreement and the
other Loan Documents, including all costs and expenses incurred in obtaining, perfecting, maintaining, determining the priority
of, releasing and inspecting any security for the Borrower’s or any other Loan Party’s obligations to CoBank, and any
stamp, intangible, transfer, or like tax payable in connection with this Agreement or any other Loan Document or the recording
hereof or thereof.

 

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SECTION 17.    Indemnities.
The Borrower agrees to, and agrees to cause each Loan Party to, indemnify, pay, and hold CoBank, its affiliates and the respective
officers, directors, employees, agents, and attorneys of CoBank and its affiliates (the “Indemnitees”)
harmless from and against any and all liabilities, obligations, losses (including reasonable fees of attorneys and consultants),
damages, penalties, actions, judgments, suits and claims of any kind or nature whatsoever that may be imposed on, incurred by,
or asserted against the Indemnitee as a result of CoBank being a party to this Agreement or otherwise in connection with this Agreement,
any of the other Loan Documents or any of the transactions contemplated hereby or thereby or the occurrence of any violation of
Environmental Laws in connection with any property owned or leased by any Loan Party or any Subsidiary of any Loan Party; provided,
that the Loan Parties shall have no obligation to an Indemnitee hereunder with respect to liabilities arising from the gross negligence
or willful misconduct of that Indemnitee, in each such case as determined by a final non appealable judgment of a court of competent
jurisdiction. The foregoing indemnity is in no way conditioned upon fault on the part of any Loan Party or on any other event,
occurrence, matter or circumstance, except as specifically set forth above in this Section 17.

 

SECTION 18.    Effectiveness
and Severability. This Agreement shall continue in effect until: (A) all indebtedness and obligations of the Borrower
under this Agreement, all Notes, all Supplements and all other Loan Documents shall have been paid or satisfied; (B) CoBank has
no commitment to extend credit to or for the account of the Borrower under any Note or any Supplement; and (C) either party sends
written notice to the other terminating this Agreement. Any provision of this Agreement or any other Loan Document which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof or thereof

 

SECTION 19.    Regulatory
Approvals. Upon any action by CoBank to commence the exercise of remedies hereunder, or under the Note, the Supplements or
other Loan Documents, the Borrower hereby undertakes and agrees on behalf of itself, the other Loan Parties, and the Subsidiaries
of any Loan Party to cooperate and join with CoBank and cause the Loan Party and the Subsidiaries of any Loan Party to cooperate
and join with CoBank in any application to any Governmental Authority with respect thereto and to provide such assistance in connection
therewith as CoBank may request, including the preparation of, consenting to or joining in of filings and appearances of officers
and employees of the Borrower, the Loan Parties, or the Subsidiaries of any Loan Party before such Governmental Authority, in each
case in support of any such application made by CoBank, and none of the Borrower, the other Loan Parties, or the Subsidiaries of
any Loan Party shall directly or indirectly, oppose any such action by CoBank before any such Governmental Authority.

 

SECTION 20.    Successors
and Assigns. This Agreement, each Note, each Supplement, and the other Loan Documents shall be binding upon and inure to the
benefit of the Borrower and CoBank and their respective successors and assigns, except that the Borrower may not assign or transfer
its rights or obligations under this Agreement, any Note, any Supplement or any other Loan Document without the prior written consent
of CoBank.

 

SECTION 21.    Consent
to Jurisdiction. To the maximum extent permitted by Law, the Borrower agrees that any legal action or proceeding with respect
to this Agreement or any of the other Loan Documents may be brought in the courts of the United States of America for the District
of Colorado, all as CoBank may elect. By execution of this Agreement, the Borrower hereby irrevocably submits to each such jurisdiction,
expressly waiving any objection it may have to the laying of venue by reason of its present or future domicile. Nothing contained
herein shall affect the right of CoBank to commence legal proceedings or otherwise proceed against the Borrower in any other jurisdiction
or to serve process in any manner permitted or required by Law.

 

    	30

    	Amended and Restated Master Loan Agreement/Warwick Valley Telephone Company
MLA No.  RX0886(A)

    

 

SECTION 22.    Waiver
of Jury Trial. THE BORROWER AND COBANK HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY NOTE, ANY SUPPLEMENT, ANY OTHER LOAN DOCUMENT, OR ANY DEALINGS BETWEEN THEM RELATING
TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER
IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER
OF THIS AGREEMENT, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.
THE BORROWER AND COBANK ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH
HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED
FUTURE DEALINGS. THE BORROWER AND COBANK FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL,
AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THE LOAN DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS. IN
THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. THE BORROWER AND COBANK ALSO
WAIVE ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF COBANK.

 

SECTION 23.    Counterparts.
This Agreement, each Note, each Supplement and any other Loan Document may be executed in any number of counterparts and by the
different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original and shall be binding
upon all parties and their respective permitted successors and assigns, and all of which taken together shall constitute one and
the same agreement.

 

SECTION 24.    Participations,
Etc. From time to time, CoBank may sell to one or more banks, financial institutions or other lenders a participation in one
or more of the loans or other extensions of credit made pursuant to this Agreement. However, no such participation shall relieve
CoBank of any commitment made to the Borrower hereunder.  In connection with the foregoing, CoBank may disclose information
concerning the Borrower and its subsidiaries, if any, to any participant or prospective participant, provided that such participant
or prospective participant agrees to keep such information confidential.  Patronage distributions in the event of a sale of
a participation interest shall be governed by CoBank’s Bylaws and Capital Plan (as each may be amended from time to time).
 A sale of a participation interest may include certain voting rights of the participants regarding the loans hereunder (including
without limitation the administration, servicing and enforcement thereof).  CoBank agrees to give written notification to
the Borrower of any sale of a participation interest. 

 

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    	Amended and Restated Master Loan Agreement/Warwick Valley Telephone Company
MLA No.  RX0886(A)

    

 

SECTION 25.    Rules
of Construction. The following rules of construction shall be applicable for all purposes of this Agreement and all amendments
and supplements hereto except as otherwise expressly provided or unless the context otherwise requires: (A) the terms used herein
shall, unless the context otherwise requires, include the plural as well as the singular, and vice versa; (B) terms importing any
gender shall include the other gender; (C) all references in this Agreement to designated sections, paragraphs, other subdivisions,
schedules, exhibits and other attachments are to the designated sections, paragraphs, subdivisions, schedules, exhibits and attachments
of this Agreement, unless otherwise specifically provided; (D) the terms “hereof,” “herein,” “hereto,”
“hereunder” and the like mean and refer to this Guaranty as a whole and not merely to the specific section, article,
paragraph or clause in which the respective term appears; (E) the term “Person” includes natural persons, corporations,
limited liability companies, limited partnerships, limited liability partnerships, general partnerships, joint stock companies,
joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or other organizations, whether
or not legal entities, and governments and agencies and political subdivisions thereof and their respective permitted successors
and assigns (or in the case of a governmental Person, the successor functional equivalent of such Person); (F) the term “writing”
shall include printing, typing, lithography and other means of reproducing words in a tangible visible form; (G) references to
agreements and other contractual instruments shall be deemed to include subsequent amendments, assignments, extensions, renewals,
and other modifications thereto, but only to the extent such amendments, assignments, extensions, renewals and other modifications
are not prohibited by the terms of this Agreement or any other Loan Document; (H) all references to statutes and related regulations
shall include any amendments of same and any successor statutes and regulations; and (I) the terms “including,” “includes”
and “include” shall be deemed to be followed by the words “without limitation.”

 

SECTION 26.    Accounting
Changes. In the event of an Accounting Change (as defined below) that results in a change in any calculations required by Subsection
8(I) of this Agreement that would not have resulted had such Accounting Change not occurred, the parties hereto agree to enter
into negotiations in good faith in order to amend such provisions so as to equitably reflect such Accounting Change such that the
criteria for evaluating compliance with such covenants shall be the same after such Accounting Change as if such Accounting Change
had not been made; provided, however, that no change in GAAP that would affect a calculation that measures compliance
with Subsections 8(I), 9(A) and 9(D) of this Agreement shall be given effect until such provisions are amended
to reflect such change in GAAP.

 

“Accounting
Change” means any change in accounting principles that is required or permitted hereafter by the rules, regulations,
pronouncements and opinions of the Financial Accounting Standards Board or the American Institute of Certified Public Accountants
(or successors thereto) and such change is adopted by any Loan Party and its respective Subsidiaries with the agreement of its
accountants.

 

    	32

    	Amended and Restated Master Loan Agreement/Warwick Valley Telephone Company
MLA No.  RX0886(A)

    

 

SECTION 27.    Effect
of Amendment; No Novation. The amendment and restatement of the Prior Agreement pursuant to this Agreement shall be effective
as of the Closing Date (as defined in that certain Amended and Restated Third Supplement to the Amended and Restated Master Loan
Agreement, dated as of even date herewith, between the Borrower and CoBank). All obligations and rights of the Borrower and CoBank
arising out of or relating to the period commencing on the Closing Date shall be governed by the terms and provisions of this Agreement;
the obligations of and rights of the Borrower and CoBank arising out of or relating to the period prior to the Closing Date shall
continue to be governed by the Prior Agreement without giving effect to the amendment and restatements provided for herein. This
Agreement shall not constitute a novation or termination of Borrower’s obligations under the Prior Agreement or any Supplement
or any Note or any other Loan Document executed or delivered in connection therewith, but shall constitute effective on the date
hereof an amendment and restatement of the obligations and covenants of Borrower under such Loan Documents (and Borrower hereby
reaffirms all such obligations and covenants, as hereby amended).

 

[Signatures follow on
next page.]

 

    	33

    	Amended and Restated Master Loan Agreement/Warwick Valley Telephone Company
MLA No.  RX0886(A)

    

 

IN WITNESS WHEREOF,
the Borrower has caused this Agreement to be executed and delivered, and CoBank has caused this Agreement to be executed and delivered,
each by their respective duly authorized officers as of the date first shown above.

 

	 	WARWICK VALLEY TELEPHONE COMPANY
	 	 	 
	 	By:	/s/ Duane W. Albro
	 	 	Duane W. Albro
	 	 	Chief Executive Officer

 

[Signatures continue on
next page.]

 

    	34

    	Amended and Restated Master Loan Agreement/Warwick Valley Telephone Company
MLA No.  RX0886(A)

    

 

[Signatures continue from
previous page.]

 

	 	COBANK, ACB
	 	 	 
	 	By:	/s/ Gary Franke
	 	 	Gary Franke
	 	 	Vice President

 

    	35

    	 

    

 

EXHIBIT A

 

COMPLIANCE CERTIFICATE
- MLA NO. 0886(A)

 

THIS COMPLIANCE
CERTIFICATE is given by [____________], Chief Financial Officer of WARWICK VALLEY TELEPHONE COMPANY (the “Borrower”),
pursuant to Subsection 8(H)(9) of that certain Amended and Restated Master Loan Agreement, dated as of October 31, 2012 (the “MLA”),
by and between the Borrower and CoBank .

 

Capitalized terms used
herein and not otherwise defined herein shall have the meanings ascribed to them in the MLA.

 

I hereby certify as
follows:

 

	1.	I am the Chief Financial Officer of the Borrower and
as such possess the knowledge and authority to certify to the matters set forth in this Compliance Certificate;

 

	2.	Attached hereto as Annex A are the [audited/unaudited]
[annual/quarterly] financial statements of Borrower for the fiscal [year/quarter] ended ______________, as required
by Subsection [8(H)(1)/(2)] of the MLA. Such financial statements were prepared in accordance with GAAP consistently applied
(except for the omission of footnotes and for the effect of normal year-end audit adjustments) and in a format that demonstrates
any accounting or formatting changes that may be required by various jurisdictions in which the business of the Borrower is conducted
(to the extent not inconsistent with GAAP);

 

	3.	The representations and warranties contained in Section
7 of the MLA are true and correct in all material respects as of the date of this Certificate, except as disclosed on Annex C
hereto; and

 

	4.	I have reviewed the activities of the Borrower during
the fiscal [year/quarter] ended ______________, and consulted with appropriate representatives of the Borrower and all
other parties (other than CoBank) to the Loan Documents, and reviewed the Loan Documents (as defined in the MLA). As of the date
of this Compliance Certificate, except as disclosed on Annex D hereto, I am not aware of any condition, event or act
which constitutes a Potential Default or an Event of Default under the MLA.

 

    	 

    	Amended and Restated Master Loan Agreement/Warwick Valley Telephone Company
MLA No.  RX0886(A)

    

 

IN WITNESS WHEREOF,
I have executed this Compliance Certificate as of _____________, _____.

 

	 	 
	 	[Name], Chief Financial Officer of Warwick Valley Telephone Company

 

    	 

    	 

    

 

Schedule 7(J)

to

Master Loan Agreement

(MLA No. RX0886(A))

 

ENVIRONMENTAL COMPLIANCE

 

None.

 

    	 

    	Amended and Restated Master Loan Agreement/Warwick Valley Telephone Company
MLA No.  RX0886(A)

    

 

Schedule 7(J)(4)

to

Master Loan Agreement

(MLA No. RX0886(A))

 

UNDERGROUND TANKS

 

None.

 

    	 

    	Amended and Restated Master Loan Agreement/Warwick Valley Telephone Company
MLA No.  RX0886(A)

    

 

Schedule 7(Q)

to

Master Loan Agreement

(MLA No. RX0886(A))

 

SUBSIDIARIES

 

	 	 	Number and Type	 	Percentage of
	Name of	 	of Equity Interests	 	Outstanding Equity Interests
	Subsidiary	 	Beneficially Owned	 	Owned
	 	 	 	 	 
	1.          Hometown Online, Inc.	 	
        200 shares common stock,
        no par value

        200 shares
authorized 
	 	100%
	 	 	 	 	 
	2.          Warwick Valley Long Distance Co., Inc.	 	
        1 share common stock,
        no par value

        1 share authorized 
	 	100%
	 	 	 	 	 
	3.          USA Datanet Inc.	 	
        1 share common stock,
        no par value

        100 shares
authorized 
	 	
        100%

         

	 	 	 	 	 
	4.          Alteva Inc.	 	
        200 shares common stock,
        no par value

        200 shares
authorized 
	 	100%
 

	 	 	 	 	 
	5.          Warwick Valley Telephone Restructuring Company, LLC	 	100 membership units	 	100%
	 	 	 	 	 

 

    	 

    	Amended and Restated Master Loan Agreement/Warwick Valley Telephone Company
MLA No.  RX0886(A)

    

 

Schedule 7(S)

to

Master Loan Agreement

(MLA No. RX0886(A))

 

EXISTING INDEBTEDNESS

 

$4,000,000 of unsecured
Indebtedness from Provident Bank, consented to by CoBank pursuant to that certain Amendment and Consent Letter Agreement, dated
as of August 2, 2012, by and between the Borrower and CoBank.

 

    	 

    	Amended and Restated Master Loan Agreement/Warwick Valley Telephone Company
MLA No.  RX0886(A)

    

 

Schedule 9(J)

to

Master Loan Agreement

(MLA No. RX0886(A))

 

TRANSACTIONS WITH AFFILIATES

 

[None.]Loan No. RX0886-S3(A)

 

AMENDED AND RESTATED THIRD SUPPLEMENT

TO THE AMENDED AND RESTATED MASTER LOAN
AGREEMENT

 

This AMENDED AND
RESTATED THIRD SUPPLEMENT TO THE AMENDED AND RESTATED MASTER LOAN AGREEMENT (this “Third Supplement”),
is entered into as of October 31, 2012, by and between COBANK, ACB (“CoBank”) and WARWICK VALLEY
TELEPHONE COMPANY (the “Borrower”), supplements the Amended and Restated Master Loan Agreement, dated
as of October 31, 2012, by and between CoBank and the Borrower (as the same has been amended on the date hereof and as the same
may be amended, modified, supplemented, extended or restated from time to time, the “MLA”), and amends
and restates that certain Third Supplement to the Master Loan Agreement, dated as of August 2, 2012, by and between CoBank and
the Borrower (the “Prior Supplement”). Capitalized terms used and not otherwise defined in this Third
Supplement shall have the meanings assigned to them in the MLA.

 

SECTION 1.
The Revolving Loan. On the terms and conditions set forth in the MLA and this Third Supplement, CoBank agrees to make
one or more advances (collectively, the “Loan”) to the Borrower during the Availability Period (as hereinafter
defined in Section 3 hereof) in an aggregate principal amount outstanding at any one time not to exceed $10,000,000 (the
“Commitment”). The Commitment shall expire at 11:00 am Mountain time on August 2, 2013 (the “Maturity
Date”).  Under the Commitment, amounts borrowed and later prepaid may be reborrowed during
the Availability Period.

 

SECTION 2.
Purpose. The proceeds of the Loan shall be used by the Borrower to (A) finance capital expenditures, working capital and
general corporate expenditures of the Borrower, including acquisitions expressly permitted by CoBank in writing, and (B) pay the
expenses and fees incurred by the Borrower in connection with the closing of the Loan. The Borrower agrees that the proceeds of
the Loan shall be used only for the purposes set forth in this Section 2.

 

SECTION 3.
Availability. Subject to Sections 2 and 6 of the MLA and Section 9 hereof, during the period commencing
on the date on which all conditions precedent to the initial advance under the Loan were satisfied (the “Closing Date”)
and ending on the Business Day immediately preceding the Maturity Date (the “Availability Period”), advances
under the Loan shall be made as provided in the MLA.

 

SECTION 4.
Interest.

 

(A)         Rate
Options; Etc. The unpaid principal balance of the Loan shall accrue interest at the rate or rates determined or selected by
the Borrower in accordance with this Section 4(A).

 

    	 

    	Amended and Restated Third Supplement to the Amended and Restated Master Loan
Agreement/Warwick Valley Telephone Company
Loan No. RX0886-S3(A)

    

 

(1)         Weekly
Quoted Rate Option (Variable Rate Option). As to any portion of the unpaid principal balance of the Loan selected by
the Borrower (any such portion, and any portion selected pursuant to Section 4(A)(2) hereof, is hereinafter referred to
as a “Portion” of the Loan), interest shall accrue pursuant to this variable
rate option at a variable annual interest rate (the “Variable Rate”) equal at all times to the
rate of interest established for the Borrower by CoBank in CoBank’s sole and absolute discretion on the first Business Day
of each week. The rate of interest so established by CoBank will be effective from and including the first Business Day of each
week to and excluding the first Business Day of the next week. Each change in the Variable Rate shall be applicable to the Portion
of the Loan subject to this option and information about the then current Variable Rate shall be made available upon telephonic
request.

 

(2)         LIBOR
Option. As to any Portion or Portions of the Loan selected by the Borrower, interest shall accrue pursuant to this LIBOR option
at a fixed rate per annum equal to LIBOR (as hereinafter defined in this Section 4(A)(2)) plus 4.50%. Under this option:
(i) rates may be fixed for Interest Periods (as hereinafter defined in this Section 4(A)(2)) of one, two, three, or six
months, as selected by the Borrower; (ii) amounts fixed shall be in increments of $100,000 or multiples thereof; and (iii) rates
may only be fixed on a Banking Day (as hereinafter defined in this Section 4(A)(2)) on three Banking Days’ prior written
notice.  “LIBOR” means the rate (rounded upward to the nearest thousandth
and adjusted for reserves required on Eurocurrency Liabilities (as hereinafter defined in this Section 4(A)(2)) for banks
subject to FRB Regulation D (as hereinafter defined in this Section 4(A)(2)) or required by any other federal law or regulation)),
as quoted by the BBA at 11:00 a.m. London time and published by Bloomberg, on the date the Borrower elects to fix a rate under
this option for the offering of U.S. dollar deposits in the London interbank market for the Interest Period designated by the Borrower,
as published by Bloomberg or another major information vendor listed on BBA’s official website. “Banking Day”
shall mean a day on which CoBank is open for business, dealings in U.S. dollar deposits are being carried out in the London interbank
market, and banks are open for business in New York City and London, England. “Interest Period” shall
mean the time period chosen by the Borrower during which the chosen fixed rate is to apply to a Portion of the Loan, which period
commences on the day a rate fixed under Section 4(A)(4) hereof becomes effective. The Interest Period for Portions
accruing interest at the LIBOR option shall end on the day in the next calendar month or in the month that is two, three or six
months thereafter which corresponds numerically with the day the Interest Period commences; provided, however, that:
(a) in the event such ending day is not a Banking Day, such period shall be extended to the next Banking Day unless such next Banking
Day falls in the next calendar month, in which case it shall end on the preceding Banking Day; and (b) if there is no numerically
corresponding day in the month, then such period shall end on the last Banking Day in the relevant month. No Interest Period shall
extend beyond the Maturity Date. “Eurocurrency Liabilities” has the meaning as set forth in FRB Regulation
D. “FRB Regulation D” means Regulation D as promulgated by the Board of Governors of the Federal Reserve
System, 12 CFR Part 204, as amended from time to time.

 

    	2

    	Amended and Restated Third Supplement to the Amended and Restated Master Loan
Agreement/Warwick Valley Telephone Company
Loan No. RX0886-S3(A)

    

 

Upon the occurrence and during
the continuance of a Potential Default or an Event of Default, as the Interest Periods for Portions of the Loan accruing interest
at a LIBOR option expire, at CoBank’s option in its sole and absolute discretion and upon notice to the Borrower, such Portions
of the Loan shall be converted to the Variable Rate option and the LIBOR option will not be available to the Borrower until all
Potential Defaults or Events of Default are no longer continuing.

 

(3)         Rate
Combinations. Notwithstanding the foregoing, at any one time there may be no more than a total of five Portions of the
Loan accruing interest pursuant to any fixed rate option.

 

(4)         Selection
and Changes of Rates. The Borrower shall select the rate option or options applicable to any Portion of the Loan at the time
it requests such Portion of the Loan. Thereafter, with respect to Portions of the Loan accruing interest at the Variable Rate,
the Borrower may, on any Business Day, subject to Section 4(A)(2) hereof, elect to have the LIBOR option apply to such Portion.
In addition, with respect to any Portion of the Loan accruing interest pursuant to the LIBOR option, the Borrower may, subject
to Section 4(A)(2) hereof, on the last day of the Interest Period for such Portion, elect to fix the interest rate accruing
on such Portion for another Interest Period pursuant to the LIBOR option. From time to time the Borrower may elect, on a Business
Day prior to the expiration of the Interest Period for any Portion of the Loan accruing interest pursuant to the LIBOR option,
and upon payment of the applicable Surcharge (as defined in, and calculated pursuant to, Section 6 hereof) to convert all,
but not part, of such Portion of the Loan so that it accrues interest at the Variable Rate or a combination of the Variable Rate
and the LIBOR option, for a new Interest Period or Interest Periods selected in accordance with Section 4(A)(2) hereof.
Except for the initial selection, all interest rate selections provided for herein shall be made by telephonic or written request
of an authorized employee of the Borrower by 12:00 noon, Eastern time, on the relevant day; in the case of Loans under the LIBOR
option, all such elections must be made in writing. In taking actions upon telephonic requests, CoBank shall be entitled to rely
on (and shall incur no liability to the Borrower in acting upon) any request made by a person identifying himself or herself as
one of the persons authorized by the Borrower to request the Loan or select interest rates hereunder so long as any funds advanced
are wired to an account previously designated by the Borrower.

 

(5)         Accrual
of Interest. Interest shall accrue pursuant to the LIBOR option from and including the first day of the applicable Interest
Period to but excluding the last day of the Interest Period. If the Borrower elects to refix the interest rate on any Portion of
the Loan accruing interest pursuant to one of the LIBOR option pursuant to Section 4(A)(4) hereof, the first day of the
new Interest Period shall be the last day of the preceding Interest Period. In the absence of any such election, interest shall
accrue on such Portion at the Variable Rate from and including the last day of such Interest Period. If the Borrower elects to
convert from the LIBOR option to the Variable Rate option pursuant to Section 4(A)(4) hereof upon payment of the applicable
Surcharge as provided in Section 6 hereof, interest at the applicable LIBOR shall accrue through the day before such
conversion and either (i) the first day of any new Interest Period shall be the date of such conversion, or (ii) interest
at the Variable Rate shall accrue on the Portion of the Loan so converted from and including the date of conversion.

 

    	3

    	Amended and Restated Third Supplement to the Amended and Restated Master Loan
Agreement/Warwick Valley Telephone Company
Loan No. RX0886-S3(A)

    

 

(B)         Payment
and Calculation. The Borrower shall pay interest on the Loan quarterly in arrears on the 20th day of each January, April, July
and October, commencing on October 20, 2012, upon any prepayment (whether due to acceleration or otherwise) and on the Maturity
Date; provided, however, in the event that the Borrower elects to fix all or a portion of the Loan under the LIBOR option,
interest shall be payable at the maturity of the applicable Interest Period, or, if such Interest Period exceeds three (3) months,
interest on such Portion shall be payable in arrears on each quarterly anniversary date of the date such Portion was fixed under
the LIBOR option. Interest shall be calculated on the actual number of days the Loan, or any part thereof, is outstanding on the
basis of a year consisting of 360 days. In calculating accrued interest, the date the Loan is made shall be included and the date
any principal amount of the Loan is repaid or prepaid shall be excluded as to such amount.

 

SECTION 5.
 Unused Commitment Fee. During the period commencing on the date hereof and ending on the Maturity Date, the Borrower
shall pay to CoBank a commitment fee on the average daily unused portion of the Commitment at a rate of 0.500% per annum (calculated
on a 360-day basis), payable quarterly in arrears on the 20th day of each January, April, July and October, commencing on October
20, 2012.

 

SECTION 6.
Prepayment and Surcharge. The Borrower may, (i) on any Business Day prepay in full or in part any Portion of the Loan
accruing interest at the Variable Rate, and (ii) on two (2) Business Day’s prior written notice prepay in full or in part
any Portion of the Loan accruing interest at pursuant to the LIBOR option. Notwithstanding the foregoing, the Borrower’s
right to prepay any amount accruing interest at pursuant to a fixed rate option (whether such payment is made voluntarily, as a
result of an acceleration, or otherwise) shall be conditioned upon the payment of a prepayment Surcharge as defined and calculated
below. For purposes of calculating the Surcharge provided for in this Section 6, early conversion of a Portion of the Loan
accruing interest pursuant to the LIBOR option so that it accrues interest at a different rate pursuant to Section 4(A)(4)
hereof shall be deemed a prepayment in full of that Portion of the Loan. Upon any such early conversion or any prepayment of any
Portion of the Loan accruing interest pursuant to a fixed rate option, and as a condition to any voluntary prepayment, the Borrower
shall pay to CoBank, on the date of such prepayment or early conversion, a surcharge (“Surcharge”) in an amount
equal to the greater of (a) the present value of any funding losses incurred or imputed by CoBank to have been incurred as a result
of such prepayment for the period such amount was scheduled to have been outstanding at such LIBOR and (b) $300. Such Surcharge,
including the amount of any funding losses incurred by CoBank, shall be determined and calculated in accordance with methodology
established by CoBank.

 

    	4

    	Amended and Restated Third Supplement to the Amended and Restated Master Loan
Agreement/Warwick Valley Telephone Company
Loan No. RX0886-S3(A)

    

 

SECTION 7.
Termination of Commitment; Repayment. The Commitment will terminate in full on the Maturity Date, provided that the Commitment
may terminate prior to the Maturity Date as provided in Section 4(F) of the MLA. If not sooner required to be repaid, all
advances under the Loan and all other amounts due and owing hereunder and under the Loan Documents relating to the Loan shall be
due and payable on the Maturity Date.

 

SECTION 8.
 Security. The Loan shall be unsecured, except with respect to the equity of the Borrower in CoBank, as described in
Section 5 of the MLA.

 

SECTION 9.
Additional Conditions Precedent. In addition to the conditions precedent set forth in in the MLA, including, without limitation,
the conditions precedent set forth in Subsection 6(C) of the MLA, CoBank’s obligation to make any advance, including
the initial advance, under the Loan is subject to the condition that, on or before the date of such advance, CoBank receive a certificate,
in the form of Exhibit A attached hereto, executed by the chief executive officer or president of the Borrower as to, among
other things, (i) the continuing truth and accuracy of the representations and warranties of each Loan Party under the Loan Documents
to which such Loan Party is a party, and (ii) the satisfaction of each of the conditions applicable to the making of the Loan.

 

SECTION 10.
Post-Closing Conditions. No later than 30 days after the Closing Date, the Borrower will deliver such evidence of insurance
required to be maintained by the Loan Parties and their respective Subsidiaries pursuant to Subsection 8(D) of the MLA as
acceptable to CoBank in its sole discretion.

 

SECTION 11.
Effect of Amendment; No Novation. The amendment and restatement of the Prior Supplement pursuant to this Third Supplement shall
be effective as of the Closing Date. All obligations and rights of the Borrower and CoBank arising out of or relating to the period
commencing on the Closing Date shall be governed by the terms and provisions of this Third Supplement; the obligations of and rights
of the Borrower and CoBank arising out of or relating to the period prior to the Closing Date shall continue to be governed by
the Prior Supplement without giving effect to the amendment and restatements provided for herein. This Third Supplement shall not
constitute a novation or termination of Borrower’s obligations under the Prior Supplement, the Prior Agreement (as defined
in the MLA) or any Note or any other Loan Document executed or delivered in connection therewith, but shall constitute effective
on the date hereof an amendment and restatement of the obligations and covenants of Borrower under such Loan Documents (and Borrower
hereby reaffirms all such obligations and covenants, as hereby amended).

 

[Signatures Follow on Next Page]

 

    	5

    	Amended and Restated Third Supplement to the Amended and Restated Master Loan
Agreement/Warwick Valley Telephone Company
Loan No. RX0886-S3(A)

    

 

IN WITNESS WHEREOF,
the Borrower has caused this Third Supplement to be executed and delivered, and CoBank has caused this Third Supplement to
be executed and delivered, each by their respective duly authorized officer as of the date first shown above.

 

	 	WARWICK VALLEY TELEPHONE COMPANY
	 	 	 
	 	By:	/s/ Brian H. Callahan
	 	 	Brian H. Callahan
	 	 	Chief Financial Officer

 

[Signatures Continue on Next Page]

 

    	 

    	Amended and Restated Third Supplement to the Amended and Restated Master Loan
Agreement/Warwick Valley Telephone Company
Loan No. RX0886-S3(A)

    

 

[Signatures Continued from Previous Page]

 

	 	COBANK, ACB
	 	 	 
	 	By:	/s/ Gary Franke
	 	 	Gary Franke
	 	 	Vice President

 

    	 

    	Amended and Restated Third Supplement to the Amended and Restated Master Loan
Agreement/Warwick Valley Telephone Company
Loan No. RX0886-S3(A)

    

 

ADVANCE CERTIFICATE — LOAN NO.
RX0886(A)-S3(A)

 

THIS CERTIFICATE
is given by [Name], the [chief executive officer/chief financial officer] of WARWICK VALLEY TELEPHONE COMPANY
(the “Borrower”), pursuant to Section 6(C) of that certain Amended and Restated Master Loan
Agreement, dated as of dated as of October 31, 2012 (the “MLA”), and pursuant to Section 9 of
that certain Amended and Restated Third Supplement to the Amended and Restated Master Loan Agreement, dated as of dated
as of October 31, 2012 (the “Third Supplement”), between CoBank, ACB (“CoBank”)
and the Borrower. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the
MLA and in the Third Supplement.

 

The undersigned hereby
certifies as follows:

 

1.          I
am the [chief executive officer/chief financial officer] of the Borrower and as such possess the knowledge and authority
to certify to the matters herein set forth, and the matters herein set forth are true and accurate to the best of my present knowledge,
information and belief after due inquiry;

 

2.          Since
December 31, 20__, no event has occurred which has had or could have a Material Adverse Effect.

 

3.          All
representations and warranties of each of the Loan Parties contained in the Loan Documents to which it is a party are true and
correct in all material respects on and as of the date hereof;

 

4.          No
Potential Default or Event of Default exists as of the date hereof or will result from the making of the advance with respect to
which this Certificate is delivered; and

 

5.          Each
of the conditions specified in Section 6 of the MLA and in Section 9 of the Third Supplement required to be satisfied
on or prior to the date of the making of an advance under the Loan has been fulfilled as of the date hereof.

 

IN WITNESS WHEREOF,
we have executed this Certificate as of ______ ___, 20__.

 

	 	 	 
	 	[chief executive officer/chief financial officer],

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