Document:

<PAGE>
                                                                    EXHIBIT 10.3

                  THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
                  INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
                  NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY OR A
                  SUCCESSOR DEPOSITARY. TRANSFERS OF THIS GLOBAL SECURITY SHALL
                  BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES
                  OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S
                  NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY
                  SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
                  RESTRICTIONS SET FORTH IN SECTIONS 306 AND 307 OF THE
                  INDENTURE.

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
                  REPRESENTATIVE OF THE DEPOSITARY TRUST COMPANY, A NEW YORK
                  CORPORATION ("DTC"), TO THE COMPANY OR ITS AGENT FOR
                  REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT AND ANY SUCH
                  CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
                  IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
                  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
                  OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
                  REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
                  HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
                  INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
                  INTEREST HEREIN.

                  THE OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER
                  AND TO THE EXTENT SET FORTH IN ARTICLE FOURTEEN OF THE
                  INDENTURE TO THE OBLIGATIONS (INCLUDING INTEREST) OWED BY THE
                  COMPANY AND CERTAIN OF ITS SUBSIDIARIES TO ALL SENIOR
                  INDEBTEDNESS; AND EACH HOLDER HEREOF, BY ITS ACCEPTANCE
                  HEREOF, SHALL BE BOUND BY THE PROVISIONS OF SUBORDINATION AS
                  SET FORTH IN SAID ARTICLE FOURTEEN OF THE INDENTURE.

<PAGE>

         United Auto Group, Inc.

                                ---------------

               9 5/8% SENIOR SUBORDINATED NOTE DUE 2012, SERIES B

                                                         CUSIP NO. _____________
No. 1                                                        $____________

         United Auto Group, Inc., a Delaware corporation (herein called the
"Company," which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay Cede & Co.
or registered assigns, the principal sum of $____________________United States
dollars or such other principal amount (which, when taken together with the
principal amounts of all other Outstanding Securities, initially shall not
exceed $300,000,000 less the principal amount of Securities redeemed by the
Company in accordance with the Indenture) as may be set forth on the Security
Register on Appendix A hereto in accordance with the Indenture on March 18,
2012, at the office or agency of the Company referred to below, and to pay
interest thereon from March 18, 2002, or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semiannually on March
15 and September 15 in each year, commencing September 15, 2002, at the rate of
9 5/8% per annum, in United States dollars, until the principal hereof is paid
or duly provided for; provided that to the extent interest has not been paid or
duly provided for with respect to the Series A Security exchanged for this
Series B Security, interest on this Series B Security shall accrue from the most
recent Interest Payment Date to which interest on the Series A Security which
was exchanged for this Series B Security has been paid or duly provided for, or
if not interest has been paid on the Series A Security, it shall accrue interest
from March 18, 2002 with respect to Series A Securities exchanged for Series B
Securities. Interest shall be computed on the basis of a 360-day year comprised
of twelve 30-day months. The Company is allowed by the Indenture to issue
additional Securities which, when taken together with all Series A Securities
and all Series B Securities, may not exceed $500,000,000 in aggregate principal
amount.

         This Series B Security was issued pursuant to the Exchange Offer
pursuant to which the 9 5/8% Senior Subordinated Notes due 2012, Series A and
related Guarantees (herein called the "Series A Securities") were exchanged for
the Series B Securities and related Guarantees. The Series A Securities and the
Series B Securities are together (including related Guarantees) referred to as
the "Securities." The Series B Securities rank pari passu in right of payment
with the Series A Securities.

         In addition, for any period in which a Series A Security exchanged for
this Series B Security was outstanding, if (1) the Company and the Guarantors
fail to file any of the registration statements required by the Registration
Rights Agreement on or before the date specified for such filing, or (2) any of
such registration statements is not declared effective by the Commission on or
prior to the date specified for such effectiveness (the "Effectiveness Target
Date"), or (3) the Company and the Guarantors fail to consummate the Exchange
Offer within 30 Business Days of the Effectiveness Target Date with respect to
the Exchange Offer Registration Statement, or (4) the Shelf Registration
Statement or the Exchange Offer Registration Statement

<PAGE>

is declared effective but thereafter ceases to be effective or usable in
connection with resales or exchanges of Securities during the periods specified
in the Registration Rights Agreement (each such event referred to in clauses (1)
through (4) above, a "Registration Default"), then the Company and the
Guarantors will pay Liquidated Damages to each Holder of Securities, with
respect to the first 90-day period immediately following the occurrence of the
first Registration Default in an amount equal to $0.05 per week per $1,000
principal amount of Securities held by such Holder. The amount of Liquidated
Damages will increase by an additional $0.05 per week per $1,000 principal
amount of Securities with respect to each subsequent 90-day period until all
Registration Defaults have been cured, up to a maximum amount of Liquidated
Damages for all Registration Defaults of $0.50 per week per $1,000 principal
amount of Securities. Following the cure of all Registration Defaults, the
accrual of Liquidated Damages will cease. All references herein to "interest"
shall be deemed to include the payment of any Liquidated Damages owed pursuant
to the Registration Rights Agreement.

         The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or any Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which
shall be the March 1 or September 1 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Any such interest not so
punctually paid, or duly provided for, and interest on such defaulted interest
at the interest rate borne by the Series B Securities, to the extent lawful,
shall forthwith cease to be payable to the Holder on such Regular Record Date,
and may either be paid to the Person in whose name this Security (or any
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such defaulted interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities not less than 10
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed, and upon such notice as may be required
by the Indenture not inconsistent with the requirements of such exchange, all as
more fully provided in the Indenture.

         Payment of the principal of, premium, if any, and interest on, this
Security, and exchange or transfer of the Security, will be made at the office
or agency of the Company maintained for such purpose (which initially will be a
corporate trust office of the Trustee located at Bank One Plaza, Suite 0823,
Chicago, Illinois 60670), or at such other office or agency as may be maintained
for such purpose, in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts;
provided, however, that payment of interest may be made at the option of the
Company by check mailed to the address of the Person entitled thereto as such
address shall appear on the Security Register.

         Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Security is entitled to the benefits of the Guarantees by the
Guarantors of the punctual payment when due and performance of the Indenture
Obligations made in favor of the Trustee for the benefit of the Holders.
Reference is made to Article Thirteen of the Indenture for

<PAGE>

a statement of the respective rights, limitations of rights, duties and
obligations under the Guarantees of the Guarantors.

         Unless the certificate of authentication hereon has been duly executed
by the Trustee referred to on the reverse hereof or by the authenticating agent
appointed as provided in the Indenture by manual signature of an authorized
signer, this Security shall not be entitled to any benefit under the Indenture,
or be valid or obligatory for any purpose.

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed by the manual or facsimile signature of its authorized officers.

                                        United Auto Group, Inc.

                                        By:
                                            -----------------------------------
                                            James R. Davidson
                                            Executive Vice President - Finance

Attest:

---------------------------------------
         Robert H. Kurnick, Jr.
         Executive Vice President,
         General Counsel and Secretary

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the 9 5/8% Senior Subordinated Notes due 2012, Series B
referred to in the within-mentioned Indenture.

                                                Bank One Trust Company, N.A.,
                                                         as Trustee

                                                By:
                                                    --------------------------
                                                         Authorized Signer

Dated:  ___________ __, 2003

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you wish to have this Security purchased by the Company pursuant to
Section 1012 or Section 1014 as applicable, of the Indenture, check the
Box: [ ].

         If you wish to have a portion of this Security purchased by the Company
pursuant to Section 1012 or Section 1014 as applicable, of the Indenture, state
the amount (in original principal amount):

                                $
                                 ----------------

Date:                                      Your Signature:
     -----------------------------------                  ---------------------

(Sign exactly as your name appears on the other side of this Security)

Signature Guarantee:
                     -----------------------------------------------------------

[Signature must be guaranteed by an eligible Guarantor Institution (banks, stock
brokers, savings and loan associations and credit unions) with membership in an
approved guarantee medallion program pursuant to Securities and Exchange
Commission Rule 17Ad-15]

<PAGE>

                             United Auto Group, Inc.
               9 5/8% Senior Subordinated Notes due 2012, Series B

         This Security is one of a duly authorized issue of Securities of the
Company designated as its 9 5/8% Senior Subordinated Notes due 2012, Series B
(herein called the "Securities"), limited (except as otherwise provided in the
Indenture referred to below) in aggregate principal amount to $300,000,000 (less
the principal amount of Series A Securities outstanding), issued under and
subject to the terms of an indenture (herein called the "Indenture") dated as of
March 18, 2002 among the Company, the Guarantors and Bank One Trust Company,
N.A., as trustee (herein called the "Trustee," which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights,
limitations of rights, duties, obligations and immunities thereunder of the
Company, the Guarantors, the Trustee and the Holders of the Securities, and of
the terms upon which the Securities are, and are to be, authenticated and
delivered.

         The Company is allowed by the Indenture to create and issue additional
Securities ranking equally with this Security in all respects, subject to
limitations in Section 1008 of the Indenture. The total amount of Securities,
including this Security and any additional Securities which the Company may
issue, may not exceed $500,000,000. Any additional Securities may be
consolidated and form a single series with this Security, vote together with
this Security and have the same terms as to status, redemption or otherwise as
this Security. References herein to Securities include these additional
Securities, unless the context requires otherwise.

         The Series B Securities are subject to redemption at any time on or
after March 15, 2007, at the option of the Company, in whole or in part, on not
less than 30 nor more than 60 days' prior notice, in amounts of $1,000 or an
integral multiple thereof, at the following redemption prices (expressed as
percentages of the principal amount), if redeemed during the 12-month period
beginning March 15 of the years indicated below:

<TABLE>
<CAPTION>
                                                              Redemption
                           Year                                 Price
                           ----                                 -----
                          <S>                                 <C>
                           2007................................104.813%
                           2008................................103.208%
                           2009................................101.604%
</TABLE>

and thereafter at 100% of the principal amount, in each case, together with
accrued and unpaid interest, if any, to the Redemption Date (subject to the
rights of Holders of record on relevant Regular Record Dates to receive interest
due on an Interest Payment Date).

         In addition, at any time prior to March 15, 2005, the Company, at its
option, may use the Net Cash Proceeds of one or more Public Equity Offerings to
redeem up to an aggregate of 35% of the aggregate principal amount of the
Securities issued under the Indenture at a redemption price equal to 109.625% of
the aggregate principal amount of the Securities redeemed, plus accrued and
unpaid interest, if any, to the redemption date (subject to the rights of
Holders of record on relevant Regular Record Dates to receive interest due on an
Interest Payment Date). At least 65% of the aggregate principal amount of the
Securities issued under the Indenture must

<PAGE>

remain outstanding immediately after the occurrence of such redemption. In order
to effect this redemption, the Company must mail a notice of redemption no later
than 30 days after the closing of the related Public Equity Offering and must
complete such redemption within 60 days of the closing of the Public Equity
Offering.

         If less than all of the Securities are to be redeemed, the Trustee
shall select the Securities or portions thereof to be redeemed in compliance
with the requirements of the principal national securities exchange, if any, on
which the Securities are listed or if the Securities are not so listed, pro
rata, by lot or by any other method the Trustee shall deem fair and reasonable.

         Upon the occurrence of a Change of Control, each Holder may require the
Company to purchase such Holder's Securities in whole or in part in integral
multiples of $1,000, at a purchase price in cash in an amount equal to 101% of
the principal amount thereof, plus accrued and unpaid interest, if any, to the
date of purchase, pursuant to Change of Control Offer and in accordance with the
procedures set forth in the Indenture.

         Under certain circumstances, in the event the Net Cash Proceeds
received by the Company from any Asset Sale exceeds a specified amount, and such
proceeds are not used to repay permanently any Senior Indebtedness or Senior
Guarantor Indebtedness or invested in Replacement Assets, the Company will be
required to apply such proceeds to the repayment of the Securities and certain
Indebtedness ranking pari passu in right of payment to the Securities.

         In the case of any redemption or repurchase of Securities in accordance
with the Indenture, interest installments whose Stated Maturity is on or prior
to the Redemption Date will be payable to the Holders of such Securities of
record as of the close of business on the relevant Regular Record Date or
Special Record Date referred to on the face hereof. Securities (or portions
thereof) for whose redemption and payment provision is made in accordance with
the Indenture shall cease to bear interest from and after the Redemption Date.

         In the event of redemption or repurchase of this Security in accordance
with the Indenture in part only, a new Security or Securities for the unredeemed
portion hereof shall be issued in the name of the Holder hereof upon the
cancellation hereof.

         If an Event of Default shall occur and be continuing, the principal
amount of all the Securities may be declared due and payable in the manner and
with the effect provided in the Indenture.

         The Indenture contains provisions for defeasance at any time of (a) the
entire Indebtedness on the Securities and (b) certain restrictive covenants and
related Defaults and Events of Default, in each case upon compliance with
certain conditions set forth therein.

         The Indenture permits, with certain exceptions (including certain
amendments permitted without the consent of any Holders, certain amendments
which require the consent of Holders of at least 75% of the Outstanding
Securities and certain amendments which require the consent of all Holders) as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Company and the Guarantors and the rights of the Holders
under the Indenture

<PAGE>

and the Securities and the Guarantees at any time by the Company and the Trustee
with the consent of the Holders of at least a majority in aggregate principal
amount of the Securities at the time Outstanding. The Indenture also contains
provisions permitting the Holders of at least a majority in aggregate principal
amount of the Securities (Holders of at least 75% in aggregate principal amount
of the Securities or 100% of the Holders in certain circumstances) at the time
Outstanding, on behalf of the Holders of all the Securities, to waive compliance
by the Company and the Guarantors with certain provisions of the Indenture and
the Securities and the Guarantees and certain past Defaults under the Indenture
and the Securities and the Guarantees and their consequences. Any such consent
or waiver by or on behalf of the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof whether or not notation of such consent or waiver is made upon
this Security.

         The Securities are, to the extent and manner provided for in Article
Fourteen of the Indenture, subordinated and subject in right of payment to the
prior payment in full (in cash or as otherwise agreed to by the holders of
Senior Indebtedness) of all Senior Indebtedness. Each Holder by its acceptance
hereof agrees to be bound by the provisions of such Article Fourteen and
authorizes and expressly directs the Trustee on its behalf to take such action
as may be necessary or appropriate to effect the subordination provided for in
the Indenture and appoints the Trustee its attorney-in-fact for such purposes.

         No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, any
Guarantor or any other obligor on the Securities (in the event such Guarantor or
such other obligor is obligated to make payments in respect of the Securities),
which is absolute and unconditional, to pay the principal of, premium, if any,
and interest on, this Security at the times, place, and rate, and in the coin or
currency, herein prescribed, subject to the rights of the holders of Senior
Indebtedness and Senior Guarantor Indebtedness as set forth in the Indenture.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company provided therefor, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or its
attorney duly authorized in writing, and thereupon one or more new Securities,
of authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

         Certificated Securities shall be transferred to all beneficial holders
in exchange for their beneficial interests in the Rule 144A Global Securities or
the Regulation S Global Securities if (x) the Depositary notifies the Company
that it is unwilling or unable to continue as Depositary for such Global
Security, or the Depositary ceases to be a clearing agency registered under the
Exchange Act, and in either case a successor Depositary is not appointed by the
Company within 90 days or (y) there shall have occurred and be continuing a
Default or an Event of Default, or (z) the Company, at its option, notifies the
Trustee in writing that it elects to cause the issuance of the Securities in
certificated form. Upon any such issuance, the Trustee is required to register
<PAGE>

such certificated Securities in the name of, and cause the same to be delivered
to, such Person or Persons (or the nominee of any thereof).

         Securities in certificated form are issuable only in registered form
without coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
the Securities are exchangeable for a like aggregate principal amount of
Securities of a differing authorized denomination, as requested by the Holder
surrendering the same.

         No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection therewith.

         Prior to due presentment of this Security for registration of transfer,
the Company, any Guarantor, the Trustee and any agent of the Company, any
Guarantor or the Trustee may treat the Person in whose name this Security is
registered as the owner hereof for all purposes, whether or not this Security is
overdue, and neither the Company, any Guarantor, the Trustee nor any such agent
shall be affected by notice to the contrary.

         THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES
THEREOF.

         All terms used in this Security which are defined in the Indenture and
not otherwise defined herein shall have the meanings assigned to them in the
Indenture.

<PAGE>

                         FORM OF TRANSFEREE CERTIFICATE

I or we assign and transfer this Security to:

--------------------------------------------------------------------------------
Print or type name, address and zip code of assignee

--------------------------------------------------------------------------------
Please insert social security or other identifying number of assignee

I irrevocably appoint _____________________, to transfer this Security on the
books of the Company. The Agent may substitute another to act for him.

Dated                                    Signed
      ------------------------------            --------------------------------
(Sign exactly as name appears on the other side of this Security)

[Signature must be guaranteed by an eligible Guarantor Institution (banks, stock
brokers, savings and loan associations and credit unions) with membership in an
approved guarantee medallion program pursuant to Securities and Exchange
Commission Rule 17Ad-15]

<PAGE>

                                   APPENDIX A

             EXCHANGES FOR GLOBAL SECURITIES OR PHYSICAL SECURITIES

         The following increases or decreases in the principal amount of this
Global Security in accordance with the Indenture have been made:

<TABLE>
<CAPTION>
                                           New principal amount
               Increase (decrease) in      of this Global Security       Notation made by or
               the principal amount of     following such increase       on behalf of the
Date Made      this Global Security        or decrease                   Security Registrar
---------      --------------------        -----------                   ------------------

<S>            <C>                         <C>                           <C>

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

---------      -----------------------     -----------------------       --------------------

</TABLE>

<PAGE>

                                    GUARANTEE

         For value received, each of the undersigned hereby absolutely, fully
and unconditionally and irrevocably guarantees, jointly and severally with each
other Guarantor, to the holder of this Security the payment of principal of,
premium, if any, and interest on this Security upon which these Guarantees are
endorsed in the amounts and at the time when due and payable whether by
declaration thereof, or otherwise, and interest on the overdue principal and
interest, if any, of this Security, if lawful, and the payment or performance of
all other obligations of the Company under the Indenture or the Securities, to
the holder of this Security and the Trustee, all in accordance with and subject
to the terms and limitations of this Security and Article Thirteen of the
Indenture. This Guarantee will not become effective until the Trustee duly
executes the certificate of authentication on this Security. These Guarantees
shall be governed by and construed in accordance with the laws of the State of
New York, without regard to conflict of law principles thereof. The Indebtedness
evidenced by these Guarantees is, to the extent and in the manner provided in
the Indenture, subordinate and subject in right of payment to the prior payment
in full of all Senior Guarantor Indebtedness, whether outstanding on the date of
the Indenture or thereafter, and the Guarantees are issued subject to such
provisions.

Dated:  _____________ __, 20__

<PAGE>

                                           UAG NORTHEAST BODY SHOP, INC.
                                           LANDERS UNITED AUTO GROUP NO. 2, INC.
                                           UAG TEXAS, INC.
                                           UAG TEXAS II, INC.
                                           UAG EAST, INC.
                                           UNITED AUTOCARE, INC.
                                           UNITED AUTOCARE PRODUCTS, INC.
                                           UNITED AUTO FOURTH FUNDING, INC.
                                           UNITED AUTO FIFTH FUNDING, INC.
                                           UAG FINANCE COMPANY, INC.
                                           ATLANTIC AUTO FUNDING CORPORATION
                                           ATLANTIC AUTO SECOND FUNDING
                                                    CORPORATION
                                           ATLANTIC AUTO THIRD FUNDING
                                                    CORPORATION
                                           UAG INTERNATIONAL HOLDINGS, INC.
                                           UAG REALTY, LLC
                                           UNITED AUTO FINANCE, INC.
                                           UAG CONNECTICUT I, LLC
                                           UAG TULSA HOLDINGS, LLC

                                           By:
                                               --------------------------------
                                               James R. Davidson, Treasurer

Attest:
        ---------------------------------
        Robert H. Kurnick, Jr., Secretary

                                           UAG SOUTHEAST, INC.
                                           UAG DULUTH, INC.
                                           UNITED NISSAN, INC. (GA)
                                           PEACHTREE NISSAN, INC.
                                           PALM AUTO PLAZA, INC.
                                           FLORIDA CHRYSLER PLYMOUTH, INC.
                                           WEST PALM NISSAN, INC.
                                           NORTHLAKE AUTO FINISH, INC.
                                           JS IMPORTS, INC.
                                           WEST PALM AUTO MALL, INC.
                                           AUTO MALL PAYROLL SERVICES, INC.
                                           UAG CAROLINA, INC.
                                           REED-LALLIER CHEVROLET, INC.
                                           MICHAEL CHEVROLET-OLDSMOBILE, INC.
                                           GENE REED CHEVROLET, INC.
                                           UAG PARAMOUNT MOTORS, INC.
                                           UAG KISSIMMEE MOTORS, INC.
                                           UAG ATLANTA IV MOTORS, INC.
                                           UAG CHCC, INC.

<PAGE>

                                           LRP, LTD.
                                           UAG NORTHEAST, INC.
                                           DIFEO PARTNERSHIP, INC.
                                           UAG HUDSON, INC.
                                           SOMERSET MOTORS, INC.
                                           LANDERS AUTO SALES, INC.
                                           LANDERS UNITED AUTO GROUP NO. 6, INC.
                                           LANDERS BUICK-PONTIAC, INC.
                                           LANDERS FORD NORTH, INC.
                                           UNITED NISSAN, INC. (NV)
                                           UNITED NISSAN, INC. (TN)
                                           UAG WEST, INC.
                                           SA AUTOMOTIVE, LTD.
                                           SL AUTOMOTIVE, LTD.
                                           SPA AUTOMOTIVE, LTD.
                                           SUN MOTORS, LTD.
                                           SCOTTSDALE MANAGEMENT GROUP, LTD.
                                           SAU AUTOMOTIVE, LTD.
                                           SK MOTORS, LTD.
                                           KMT/UAG, INC.
                                           RELENTLESS PURSUIT ENTERPRISES, INC.
                                           TRI-CITY LEASING, INC.
                                           HT AUTOMOTIVE, LTD.
                                           WESTBURY SUPERSTORE, LTD.
                                           UNITED AUTO DODGE OF SHREVEPORT,
                                                    INC.
                                           COVINGTON PIKE DODGE, INC.
                                           THE NEW GRACELAND DODGE, INC.
                                           UAG GRACELAND II, INC.
                                           UAG MEMPHIS II, INC.
                                           UAG MEMPHIS IV, INC.
                                           UAG MEMPHIS V, INC.
                                           UAG-CARIBBEAN, INC.
                                           DAN YOUNG CHEVROLET, INC.
                                           YOUNG MANAGEMENT GROUP, INC.
                                           UAG YOUNG II, INC.
                                           UAG CLASSIC, INC.
                                           CLASSIC AUTO GROUP, INC.
                                           CLASSIC MANAGEMENT COMPANY, INC.
                                           CLASSIC IMPORTS, INC.
                                           CLASSIC MOTOR SALES, LLC
                                           D. YOUNG CHEVROLET LLC
                                           DAN YOUNG MOTORS LLC
                                           UAG YOUNG AUTOMOTIVE GROUP LLC
                                           YOUNG AUTOMOTIVE HOLDINGS LLC
                                           EUROPA AUTO IMPORTS, INC.

<PAGE>

                                           UAG LAKE NORMAN, LLC
                                           UAG INDIANAPOLIS, LLC
                                           MOTORCARS ACQUISITION, LLC
                                           MOTORCARS ACQUISITION II, LLC
                                           MOTORCARS ACQUISITION III, LLC
                                           SCOTTSDALE FERRARI, LLC
                                           UAG OLDSMOBILE OF INDIANA, LLC
                                           GOODSON NORTH, LLC
                                           GOODSON PONTIAC GMC, LLC
                                           GOODSON SPRING BRANCH, LLC
                                           PIONEER FORD WEST, LLC
                                           UAG CERRITOS, LLC
                                           UAG CONNECTICUT, LLC
                                           UAG FAIRFIELD CA, LLC
                                           UAG FAIRFIELD CM, LLC
                                           UAG FAIRFIELD CP, LLC
                                           UAG LANDERS SPRINGDALE, LLC
                                           UAG MENTOR ACQUISITION, LLC
                                           UAG MICHIGAN CADILLAC, LLC
                                           UAG MICHIGAN PONTIAC-GMC, LLC
                                           UAG MICHIGAN T1, LLC
                                           UAG MICHIGAN TMV, LLC
                                           UAG PHOENIX VC, LLC
                                           UAG SPRING, LLC
                                           UNITED RANCH AUTOMOTIVE, LLC
                                           UAG CHEVROLET, INC.
                                           UAG FAIRFIELD CV, LLC
                                           BRETT MORGAN CHEVROLET-GEO, INC.
                                           HBL, LLC
                                           MOTORCARS ACQUISITION IV, LLC
                                           UAG NANUET I, LLC
                                           UAG NANUET II, LLC
                                           NISSAN OF NORTH OLMSTED, LLC
                                           LANDERS NISSAN, LLC
                                           UAG FAYETTEVILLE I, LLC
                                           UAG FAYETTEVILLE II, LLC
                                           UAG FAYETTEVILLE III, LLC

                                           By:
                                               ---------------------------------
                                               James R. Davidson,
                                               Assistant Treasurer

Attest:
        ---------------------------------------------
         Robert H. Kurnick, Jr., Assistant Secretary

<PAGE>

                                           DIFEO HYUNDAI PARTNERSHIP
                                           DIFEO NISSAN PARTNERSHIP
                                           DIFEO CHRYSLER PLYMOUTH JEEP EAGLE
                                                    PARTNERSHIP
                                           DIFEO LEASING PARTNERSHIP
                                           DANBURY AUTO PARTNERSHIP
                                           DIFEO TENAFLY PARTNERSHIP
                                           OCT PARTNERSHIP
                                           HUDSON MOTORS PARTNERSHIP
                                           COUNTY AUTO GROUP PARTNERSHIP
                                           SOMERSET MOTORS PARTNERSHIP

                                           By:      DIFEO PARTNERSHIP, INC.
                                                    A general partner

                                           By:
                                               ---------------------------------
                                                    James R. Davidson,
                                                    Assistant Treasurer

Attest:
        ---------------------------------------------
         Robert H. Kurnick, Jr., Assistant Secretary

                                           SHANNON AUTOMOTIVE, LTD.
                                           UAG HOUSTON ACQUISITION, LTD.

                                           By:      UAG TEXAS, INC.,
                                                    a general partner

                                           By:
                                               ---------------------------------
                                                    James R. Davidson, Treasurer

Attest:
        ---------------------------------------------
         Robert H. Kurnick, Jr., Secretary

                                           CLASSIC ENTERPRISES, LLC
                                           CLASSIC NISSAN OF TURNERSVILLE, LLC

                                           By:      UAG CLASSIC, INC., Member

                                           By:
                                               ---------------------------------
                                                    James R. Davidson,
                                                    Assistant Treasurer

Attest:
        ---------------------------------------------
         Robert H. Kurnick, Jr., Assistant Secretary

<PAGE>

                                           LANDERS FORD, INC.
                                           NATIONAL CITY FORD, INC.
                                           CENTRAL FORD CENTER, INC.
                                           PIONEER FORD SALES, INC.

                                           By:
                                               ---------------------------------
                                                    James R. Davidson,
                                                    Assistant Treasurer

Attest:
        ---------------------------------------------
         Robert H. Kurnick, Jr., Assistant Secretary

                                           CLASSIC TURNERSVILLE, INC.
                                           GMG MOTORS, INC.
                                           KMPB, LLC
                                           SCOTTSDALE JAGUAR, LTD.
                                           CJNS, LLC
                                           H.B.L. HOLDINGS, INC.
                                           LANTZSCH-ANDREAS ENTERPRISES, INC.
                                           LMNS, LLC
                                           UAG VK, LLC

                                           By:
                                               ---------------------------------
                                                    James R. Davidson,
                                                    Assistant Secretary

Attest:
        ---------------------------------------------
         Robert H. Kurnick, Jr., Assistant Secretary

                                           UAG TURNERSVILLE REALTY, LLC

                                           By:
                                               ---------------------------------
                                                    James R. Davidson, Treasurer

Attest:
        ---------------------------------------------
         Robert H. Kurnick, Jr., Secretary

                                           UNITED AUTO LICENSING, LLC

                                           By:
                                               ---------------------------------
                                                    Robert H. Kurnick, Jr.,
                                                    Treasurer

Attest:
        ---------------------------------------------
         Tamara Hartke, Assistant Secretary<PAGE>

                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         This Agreement is made this eighteenth day of August, 2003, by and
between North Country Financial Corporation, a Michigan corporation, (the
"Corporation") and, Joseph E. Petterson (the "Employee").

         WHEREAS, the Board of Directors of the Corporation believes that the
future services of the Employee in the capacity of Executive Vice President will
be of great value to the Corporation;

         WHEREAS, the Corporation operates a wholly owned commercial banking
subsidiary known as North Country Bank & Trust Company which is engaged in the
general business of banking, hereinafter the "Bank"; and

         WHEREAS, the Bank is presently the subject of a Cease and Desist Order
issued by the Federal Deposit Insurance Corporation and the Michigan Office of
Financial and Insurance Services; and

         WHEREAS, the Employee is willing to serve in the employ of the
Corporation and the Bank on a full-time basis for the term of this Agreement.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein set forth, the parties hereto have agreed and do hereby
mutually agree as follows:

1.       Term -- Agreement to Serve

         The Corporation hereby employs for itself, the Bank and or any
         additional subsidiaries (hereinafter sometimes collectively referred to
         as the "Corporation"), the services of Employee for a period commencing
         as of the date first written above and terminating July 31, 2005 (the
         "Termination Date"), subject to the rights of earlier termination
         hereinafter set forth, to perform the duties of Executive Vice
         President for the Corporation and the Bank. The Employee hereby accepts
         such employment in consideration of the compensation and the other
         terms and conditions herein provided, and agrees to serve the
         Corporation well and faithfully and to devote his best efforts to such
         employment as long as it shall continue hereunder. During the period of
         such employment, the Employee will devote his substantial full-time
         attention -- reasonable vacations, periods of illness and the like
         excepted -- to the affairs of the Corporation.

2.       Base Salary and Fringe Benefits

         Except as otherwise provided herein, as compensation for these services
         hereunder, the Corporation will pay to Employee, in installments and on
         dates in accordance with its normal payroll, during the period of his
         employment hereunder, a base salary at the aggregate rate of one
         hundred seventy-five thousand ($175,000) per annum, subject to the

                                       1
<PAGE>

         right of the parties, by mutual agreement, to adjust such rate upward
         in respect of any future period after the date hereof, (hereinafter
         referred to as "Base Pay").

         In addition the Corporation shall:

         (a)      Pay a cash retention bonus in the amount of seven thousand
                  five hundred dollars ($7,500) to Employee upon his
                  commencement of employment with the Corporation, and (ii) if,
                  during the term of this Agreement, the Bank is no longer
                  subject to any formal or informal enforcement action including
                  cease and desist orders, written agreements or memorandum of
                  understanding by any federal or state banking regulatory
                  agency, the Bank will pay to Employee a cash bonus equal to
                  one year of Employee's Base Pay.

         (b)      Provide four (4) weeks paid vacation annually beginning
                  January 1, 2004, with one (1) week paid vacation during the
                  period of initial employment through December 31, 2003.

         (c)      Reimburse fees and expenses incurred in connection with
                  business of the Corporation or the Bank, including fees for
                  attendance at banking related conventions and similar items
                  approved by the President and CEO.

         (d)      Provide an automobile allowance in the amount of $450 per
                  month and pay for the insurance, maintenance and gasoline
                  utilized by Employee while in Manistique, Michigan.

         (e)      Provide reimbursement to Employee during the initial one
                  hundred eighty (180) day term of this Agreement to cover
                  Employees living expenses, not to exceed one thousand dollars
                  ($1,000) per month.

3.       Bonus and Options

         Subject to the rules and regulations applicable thereto, the
         Corporation shall provide for Employee's participation in any option,
         incentive employee benefit plans or compensation programs administered
         by the Corporation or the Bank or under its direction, including any
         employee bonus plans as may presently exist or are to be placed into
         effect after the date hereof.

4.       Termination of Employment

         The employment of the Employee under the terms of this Agreement shall
         cease and terminate as follows:

         (a)      Expiration of Term

                  On the Termination Date; or,

                                       2
<PAGE>

         (b)      Death

                  On the date of his death; or,

         (c)      Disability

                  Upon receipt by the Employee of written notice from the
                  Corporation that, in its opinion, based on reliable medical
                  evidence, the Employee is unable by reason of permanent
                  physical or mental disability to continue the proper
                  performance of his duties hereunder. For purposes of this
                  Employment Agreement, the Employee's "permanent disability"
                  shall be deemed to have occurred after thirty (30) consecutive
                  days, during which thirty (30) days the Employee, by reason of
                  his physical or mental disability or illness, shall have been
                  unable, in the reasonable opinion of the Corporation, to
                  discharge his duties under this Employment Agreement. The date
                  of permanent disability shall be such thirtieth (30th) day;
                  or,

         (d)      Termination by the Corporation with Cause

                  For Cause at any time by action of the Board. For purposes
                  hereof, the term "Cause" shall mean receipt of any written
                  criticism of the performance of Employee by a regulatory
                  agency having jurisdiction over the Corporation or the Bank,
                  failure of the Employee to satisfactorily perform his duties
                  as determined annually in a written performance review by the
                  President and CEO, or the Employee's willful and repeated
                  failure to perform his duties under this Employment Agreement,
                  which failure has not been cured within thirty (30) days after
                  the Corporation gives notice thereof to the Employee; or,

         (e)      Termination by Employee's Resignation without Good Reason.

                  The Employee may terminate his employment at any time by
                  resignation without Good Reason.

         (f)      Termination by the Corporation without Cause

                  At the election of the Corporation, at any time during the
                  term of this Agreement without cause.

         (g)      Termination Other Than for Cause; Resignation by the Employee
                  for Good Reason.

                  If the Company terminates the Employee's employment for any
                  reason other than Cause (as defined in Section 4(c)), or in
                  the event of the Employee's Resignation for Good Reason, the
                  Employee shall be entitled to receive the payments provided
                  for herein. "Resignation for Good Reason" shall mean the
                  termination of this Agreement by the Employee in the event
                  that (i) Employee is required to provide

                                       3
<PAGE>

                  services at a work location other than the Corporation's main
                  office in Manistique, Michigan, or within a fifty mile radius
                  thereof (ii) Employee's duties are substantially reduced, or
                  (iii) the breach of this Agreement by the Corporation, or (iv)
                  there is any reduction in the Base Pay of Employee, or a
                  reduction in the other benefits provided to the Employee by
                  the Corporation, other than an immaterial change in the
                  benefits provided to Employee resulting from changes in
                  service providers, insurance companies and similar changes
                  affecting all employees generally under the Corporation's
                  health and welfare benefit plans.

         (h)      Payments Upon Termination

                  Upon termination of employment of the Employee pursuant to
                  Section 4(b),(c),(d) or (e) above, the Employee shall be
                  entitled to receive the amount of Base Pay and Benefits
                  (including cash payment for any unused vacation) provided for
                  in Paragraphs 2 and 3 hereof through the date of his
                  termination of employment. In the event of the termination of
                  employment of Employee pursuant to Sections 4(f) or (g) above,
                  the Corporation shall pay to the Employee his Base Pay and
                  other benefits listed in Paragraphs 2 and 3 through the
                  Termination Date, and at Employee's election shall pay the
                  aggregate amount of Base Pay, any accrued bonus, and unused
                  vacation pay otherwise payable to Employee, in a single lump
                  sum at such termination of employment.

5.       Change in Control Provision.

         If during the term of this Agreement or within one (1) year following
         the Termination Date, the Corporation engages in a Change in Control
         transaction as hereinafter defined, Employee's employment hereunder
         shall automatically terminate two (2) months following the consummation
         of the Change in Control Transaction (if not earlier terminated) and
         Employee shall receive: (A) the payments provided to Employee upon a
         termination without cause as set forth in 4(f), and (B) one year of
         Employee's then Base Pay. In the event of: (X) Employee's termination
         of employment prior to the Termination Date pursuant to 4(f) or (g),
         the provisions of this paragraph 5 shall apply notwithstanding such
         earlier termination of employment, and (Y) the provisions of this
         paragraph 5 shall not apply and shall be void in the event of
         termination of employment pursuant to 4(b)(c)(d)(and(e).

         A "Change in Control" shall result if, and shall be deemed to have
         occurred on the date of, a transaction pursuant to which:

         (a)      Any person or group (as such terms are used in connection with
                  Sections 13(d) and 14(d) of the Exchange Act) becomes the
                  "beneficial owner" (as defined in Rule 13(d)(3) and 13(d)(5)
                  under the Exchange Act), directly or indirectly, of securities
                  of the Corporation representing twenty-five percent (25%) or
                  more of the combined voting power of the Corporation's then
                  outstanding securities;

                                       4
<PAGE>

         (b)      A merger, consolidation, sale of assets, reorganization, or
                  proxy contest is consummated and, as a consequence of which,
                  members of the Board in office immediately prior to such
                  transaction or event constitute less than a majority of the
                  Board thereafter;

         (c)      During any period of 24 consecutive months, individuals who at
                  the beginning of such period constitute the Board (including
                  for this purpose any new director whose election or nomination
                  for election by the Corporation's stockholders was approved by
                  a vote of at least one-half of the directors then still in
                  office who were directors at the beginning of such period)
                  cease for any reason to constitute at least a majority of the
                  Board; or

         (d)      A merger, consolidation or reorganization is consummated with
                  any other corporation pursuant to which the shareholders of
                  the Corporation immediately prior to the merger, consolidation
                  or reorganization do not immediately thereafter directly or
                  indirectly own more than fifty percent (50%) of the combined
                  voting power of the voting securities entitled to vote in the
                  election of directors of the merged, consolidated or
                  reorganized entity.

         Notwithstanding the foregoing, no trust department or designated
         fiduciary or other trustee of such trust department of the Corporation
         or a subsidiary of the Corporation, or other similar fiduciary capacity
         of the Corporation with direct voting control of the stock shall be
         treated as a person or group within the meaning of subsection (i)(a)
         hereof. Further, no profit-sharing, employee stock ownership, employee
         stock purchase and savings, employee pension, or other employee benefit
         plan of the Corporation or any of its subsidiaries, and no trustee of
         any such plan in its capacity as such trustee, shall be treated as a
         person or group within the meaning of subsection (i)(a) hereof.

6.       Internal Revenue Code Section 280G.

         In the event the payments required under this Agreement, when added
         together with any other amounts required to be included by Employee
         under the provisions of the Internal Revenue Code of 1986, as amended,
         result in an "Excess Parachute Payment," as that term is defined in
         Section 280G of the Code, then the amount of the payments provided for
         in this agreement shall be reduced in an amount which eliminates any
         and all excise tax to be imposed under Section 4999 (or any successor
         thereto) of the Code.

7.       Right to Other Benefits.

         Except as otherwise specified herein, nothing in this Agreement shall
         abridge, eliminate, or cause Employee to lose Employee's right or
         entitlement to any other Corporation benefit to which Employee may be
         entitled due to his status as an employee under any plan or policy of
         Corporation on such terms and conditions as are required of any
         employee under any plan or policy of Corporation. Further, nothing in
         this Agreement shall create in Employee any greater rights or
         entitlements, except as specified in this

                                       5
<PAGE>

         Agreement. The plans and policies referred to in this Paragraph 7
         include, but are not limited to, life insurance plans, dental,
         disability or health insurance benefits, severance policies, club
         memberships, and accrued vacation pay.

8.       Confidential Information

         Employee shall not at any time, in any manner, while employed by the
         Corporation or thereafter, either directly or indirectly, except in the
         course of carrying out the Corporation's business or as previously
         authorized in writing on behalf of the Corporation, disclose or
         communicate to any person, firm, or corporation, any information of any
         kind concerning any matters affecting or relating to the Corporation's
         business or any of its data, figures, projections, estimates, customer
         lists, tax records, personnel histories, and accounting procedures of
         the Corporation, without regard to whether any or all of such
         information would otherwise be deemed confidential or material.

9        Non-Assignability

         (a)      Except as provided herein, neither party to this Agreement
                  shall have the right to assign this Agreement or any rights or
                  obligations hereunder provided that nothing herein shall
                  prevent the Employee from designating one or more members of
                  his family or a trust or trusts for the members of his family
                  as a beneficiary or beneficiaries entitled to receive payments
                  hereunder as heretofore specified.

         (b)      Except as provided above, no title to any payments which shall
                  become due and payable to the Employee, his personal
                  representative or designated beneficiary under the provisions
                  hereof, shall be vested in him or any of them until the actual
                  payment thereof is made to such person by the Corporation in
                  accordance with the provisions of this Agreement. Neither he
                  nor any of them shall have the right or power to transfer,
                  assign, anticipate or encumber any interest in any such
                  payment, prior to the actual receipt thereof from the
                  Corporation. Neither this Agreement, the Corporation nor any
                  person's rights hereunder shall be liable for the debt,
                  contract or engagement of any of them. None of them shall be
                  permitted to appoint any agent or attorney-in-fact and except
                  as provided herein, to collect or receive his share of such
                  payments or any part thereof unless permission to do so shall
                  be specifically granted by the Corporation in writing. The
                  Corporation, in the absence of such written permission, shall
                  not in any manner recognize such appointment, transfer,
                  assignment or encumbrance.

         (c)      If the Employee or any personal representative or any
                  designated beneficiary attempts to transfer, assign or
                  encumber his interest in such payments, or any part thereof,
                  prior to the payment or distribution thereof to him or her;
                  or, if any transfer or seizure thereof is attempted to be made
                  or brought through the operation of any bankruptcy or
                  insolvency law, the right of the person taking such action or
                  concerned therein or affected thereby, and who would, but for
                  this

                                       6
<PAGE>

                  provision, be entitled to receive such payments, or any part
                  thereof, shall forthwith and ipso facto terminate, all rights
                  bestowed on any such person being hereby, on the happening of
                  any such event, expressly revoked; and the Corporation shall
                  thereafter, in its absolute discretion, at such time or times
                  as it deems proper, cause such part of such person's
                  theretofore existing share of such payments to be paid to such
                  person or persons, including the Employee, of any parent,
                  spouse or child of said person, as the Corporation, in its
                  uncontrolled discretion, shall deem advisable; and the
                  remainder of such payments, if any, may be distributed by the
                  Corporation to the person or person who would have been
                  entitled to receive the same if such person had died
                  immediately prior to said attempted transfer, assignment or
                  encumbrance, or attempted transfer or seizure by operation of
                  law.

10.      Binding Effect

         This Agreement shall be binding upon and inure to the benefit of any
         successor of the Corporation, and any such successor shall be deemed
         substituted for the Corporation under the terms of this Agreement. As
         used in this Agreement, the term "successor" shall include any person,
         firm, corporation, or other business entity which, at any time, whether
         by merger, purchase, or otherwise, acquires all or substantially all of
         the assets or business of the Corporation.

11.      Entire Agreement

         This Agreement contains the entire agreement of the parties hereto
         concerning the subject matter hereof, and cancels any and all other
         oral or written agreements or understandings between the parties with
         respect to the subject matter hereof. The Agreement may not be changed
         orally, but only by agreement in writing signed by both parties.

12.      Authorization for Acts of Corporation

         Any act, request, approval, consent or opinion of the Corporation
         hereunder shall be authorized, given or expressed by resolution of its
         Board of Directors.

13.      Arbitration.

         The parties hereto agree to arbitrate any issue, misunderstanding,
         disagreement or dispute in connection with the terms in effect in this
         Agreement before one arbitrator mutually agreeable to the parties. The
         arbitration shall be administered by the National Arbitration Forum
         ("NAF") and conducted under its rules, except as otherwise provided
         below. If either party determines that the parties have been unable to
         agree upon one arbitrator, then such party may appoint one arbitrator
         and require the other party to appoint a second arbitrator. Whereupon,
         the two appointed arbitrators shall appoint a third neutral arbitrator.
         If the arbitrators selected by the parties are unable or fail to agree
         upon the third arbitrator, the NAF shall select the third arbitrator.
         Failure by a party to either (i) accept as mutually agreeable, or (ii)
         appoint an arbitrator, within 30 days of receipt of

                                       7
<PAGE>

         notice of the appointment of an arbitrator by the other party, shall be
         deemed as acceptance of arbitration by such single arbitrator. The
         arbitration shall occur in Manistique, Michigan, or such other place as
         mutually agreed upon. The prevailing party shall be entitled to recover
         any and all costs associated with any arbitration proceeding (and any
         subsequent proceeding to enforce rights thereunder) including the
         recovery of reasonable attorneys fees. Judgment on the award rendered
         by the arbitrator(s) may be entered in any court having jurisdiction
         thereof. This arbitration agreement shall be governed by the Michigan
         Arbitration Act, MCLA Section 600.5001, et seq. Information may be
         obtained from the NAF on-line at www.arb-forum.com, by calling
         800-474-2371 or writing to P.O. Box 50191, Minneapolis, MN, 55405.

14.      Noncompetition and Nonsolicitation Agreement and Business Protection.

         Notwithstanding anything to the contrary contained elsewhere in this
         Agreement:

         (a)      Noncompetition Agreement and Nonsolicitation Agreement

             (i)  In view of Employee's importance to the success of the
                  Corporation, Employee and Corporation agree that the
                  Corporation would likely suffer significant harm from
                  Employee's competing with Corporation during Employee's term
                  of employment with Corporation and for some period of time
                  thereafter. Accordingly, Employee agrees that Employee shall
                  not engage in competitive activities while employed by
                  Corporation and during the Restricted Period. Employee shall
                  be deemed to engage in competitive activities if he shall,
                  without the prior written consent of the Corporation, (i)
                  within a seventy-five (75) mile radius of the main office or
                  any branch office of the Bank, render services directly or
                  indirectly, as an employee, officer, director, consultant,
                  advisor, partner or otherwise, for any organization or
                  enterprise which competes directly or indirectly with the
                  business of Corporation or any of its affiliates in providing
                  financial products or services (including, without limitation,
                  banking, insurance, or securities products or services) to
                  consumers and businesses, or (ii) directly or indirectly
                  acquires any financial or beneficial interest in (except as
                  provided in the next sentence) any organization which conducts
                  or is otherwise engaged in a business or enterprise within a
                  seventy-five (75) mile radius of the main office or any branch
                  office of the Bank, which competes directly or indirectly with
                  the business of Corporation or any of its affiliates in
                  providing financial products or services (including, without
                  limitation, banking, insurance or securities products or
                  services) to consumers and businesses. Notwithstanding the
                  preceding sentence, Employee shall not be prohibited from
                  owning less that 5 percent of any publicly traded corporation,
                  whether or not such corporation is in competition with
                  Corporation. For purposes of this Paragraph 14 the term
                  "Restricted Period" shall equal twelve months, commencing as
                  of the date of Employee's termination of employment.

                                       8
<PAGE>

            (ii)  While employed by Corporation and for a period of twelve
                  months following Employee's termination of employment with
                  Corporation, Employee agrees that Employee shall not, in any
                  manner directly (i) solicit by mail, by telephone, by personal
                  meeting, or by any other means, any customer or prospective
                  customer of Corporation to whom Employee provided services, or
                  for whom Employee transacted business, or whose identity
                  become known to Employee in connection with Employee's
                  services to Corporation (including employment with or services
                  to any predecessor or successor entities), to transact
                  business with a person or an entity other than the Corporation
                  or its affiliates or reduce or refrain from doing any business
                  with the Corporation or its affiliates or (ii) interfere with
                  or damage (or attempt to interfere with or damage) any
                  relationship between Corporation or its affiliates and any
                  such customer or prospective customer. The term "solicit" as
                  used in this Agreement means any communication of any kind
                  whatsoever, inviting, encouraging or requesting any person to
                  take or refrain from taking any action with respect to the
                  business of Corporation and its subsidiaries.

            (iii) While employed by Corporation and for a period of twelve
                  months following Employee's termination of employment with
                  Corporation, Employee agrees that Employee shall not, in any
                  manner directly solicit any person who is an employee of
                  Corporation or any of its affiliates to apply for or accept
                  employment or a business opportunity with any other person or
                  entity in which he has an ownership interest or directly or
                  indirectly receives compensation therefrom.

            (iv)  The parties agree that nothing herein shall be construed to
                  limit or negate the common law of torts or trade secrets or
                  Michigan Law where it provides broader protection than that
                  provided herein.

         (b)      Confidential Information

         Employee has obtained and may obtain confidential information
         concerning the businesses, operations, financial affairs,
         organizational and personnel matters, policies, procedures and other
         non-public matters of Corporation and its affiliates, and those of
         third-parties that is not generally disclosed to persons not employed
         by Corporation or its subsidiaries. Such information (referred to
         herein as the "Confidential Information") may have been or may be
         provided in written form or orally. Employee shall not disclose to any
         other person the Confidential Information at any time during his
         employment with Corporation or after the termination of his employment,
         provided that Employee may disclose such Confidential Information only
         to a person who is then a director, officer, employee, partner,
         attorney or agent of Corporation who, in Employee's reasonable good
         faith judgment, has a need to know the Confidential Information. At
         Employee's termination of employment, Employee shall return to the
         Corporation any and all memorandum, notes, records, papers, financial
         models, flowcharts, work papers, computer codes, software and any other
         documents relating to the operations of the business of the Corporation
         or the Bank.

                                       9
<PAGE>

         (c)      Remedies

             (i)  Employee acknowledges that a violation on Employee's part of
                  this Paragraph 14 would cause immeasurable and irreparable
                  damage to Corporation. Accordingly, Employee agrees that
                  notwithstanding Paragraph 13 hereof, Corporation shall be
                  entitled to injunctive relief in any court of competent
                  jurisdiction for any actual or threatened violation of any of
                  the provisions of this Paragraph 14, in addition to any other
                  remedies it may have at law.

             (ii) In addition to Corporation's right to seek injunctive relief
                  as set forth in subsection (i) above of this Section 14(c) in
                  the event that Employee shall violate the terms and conditions
                  of this Paragraph 14, Corporation may: (i) make a general
                  claim for damages and (ii) terminate any payments or benefits
                  payable by Corporation, if applicable, to Employee.

15.      Confidential Information

         Employee shall not at any time, in any manner, while employed by the
         Corporation or thereafter, either directly or indirectly, except in the
         course of carrying out the Corporation's business or as previously
         authorized in writing on behalf of the Corporation, disclose or
         communicate to any person, firm, or corporation, any information of any
         kind concerning any matters affecting or relating to the Corporation's
         business or any of its data, figures, projections, estimates, customer
         lists, tax records, personnel histories, and accounting procedures of
         the Corporation, without regard to whether any or all of such
         information would otherwise be deemed confidential or material.

16.      Governing Law

         This Agreement is executed and delivered in the State of Michigan and
         is intended to be interpreted, construed and enforced in accordance
         with the laws of such State.

17.      Regulatory Approval of Agreement.

         Employee and the Corporation acknowledge and agree that: (i) certain
         approvals of state and federal banking regulatory agencies are required
         to be received by the Corporation in order to fully bind the
         Corporation to the terms hereof; and (ii) the Corporation shall submit
         this Agreement to any and all state and federal banking regulatory
         agencies with supervisory and regulatory authority over the Corporation
         and/or the Bank as soon as practicable following its execution and
         agrees to use its best efforts to obtain as promptly as practicable any
         all consents required to permit the full enforcement of the provisions
         of this Agreement, including the payment of all compensation, benefits,
         bonuses, and change in control payments of any and all types
         contemplated herein as may be required by law, regulation, enforcement
         action or otherwise; (iii) Employee agrees that this Agreement shall
         not be binding until all required regulatory approvals to which the

                                       10
<PAGE>

         Corporation is subject have been received; and (iv) Employee
         acknowledges and agrees that all terms of this Agreement may, to the
         extent permitted or required by law, applicable banking regulations, or
         by a written agreement between the Corporation (or Bank) and its (or
         their) banking regulatory agencies and not otherwise waived in writing,
         be modified, terminated, or prohibited (from enforcement) by the
         banking regulatory agencies having jurisdiction or oversight authority
         regarding the Corporation and the Bank.

         IN WITNESS WHEREOF, the Corporation has caused this Agreement to be
executed on its behalf by the Chairman of its Board of Directors, and the
Employee has signed this Agreement, all as of the date and year first above
written.

                                       North Country Financial Corporation

                                       By: /s/ C. James Bess
                                           -------------------------------------
                                           C. James Bess
                                           President and Chief Executive Officer

                                           /s/ John Lindroth
                                           -------------------------------------
                                           John Lindroth
                                           Chairman

                                       /s/ Joseph E. Petterson
                                       -----------------------------------------
                                       Joseph E. Petterson

                                       11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}]]