Document:

EX-10.5

 Exhibit 10.5 
  

 
  

ASSET REPRESENTATIONS REVIEW AGREEMENT 

VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2021-1, 

as Issuer 
 and 

VW CREDIT, INC., 
 as
Servicer 
 and 
 CLAYTON
FIXED INCOME SERVICES LLC, 
 as Asset Representations Reviewer 

 
  

Dated as of December 13, 2021 
  

 
  

 
  

 TABLE OF CONTENTS 
  

							
	 ARTICLE I. USAGE AND DEFINITIONS
	  	 	1	 
			
	 Section 1.01
	 	Usage and Definitions	  	 	1	 
			
	 Section 1.02
	 	Definitions	  	 	1	 
		
	 ARTICLE II. ENGAGEMENT; ACCEPTANCE
	  	 	2	 
			
	 Section 2.01
	 	Engagement; Acceptance	  	 	2	 
			
	 Section 2.02
	 	Confirmation of Status	  	 	3	 
		
	 ARTICLE III. ASSET REPRESENTATIONS REVIEW PROCESS
	  	 	3	 
			
	 Section 3.01
	 	Review Notices and Identification of Subject Receivables	  	 	3	 
			
	 Section 3.02
	 	Review Materials	  	 	3	 
			
	 Section 3.03
	 	Performance of Reviews	  	 	4	 
			
	 Section 3.04
	 	Review Report	  	 	5	 
			
	 Section 3.05
	 	Review Representatives	  	 	5	 
			
	 Section 3.06
	 	Dispute Resolution	  	 	6	 
			
	 Section 3.07
	 	Limitations on Review Obligations	  	 	6	 
		
	 ARTICLE IV. ASSET REPRESENTATIONS REVIEWER
	  	 	7	 
			
	 Section 4.01
	 	Representations, Warranties and Covenants of the Asset Representations Reviewer	  	 	7	 
			
	 Section 4.02
	 	Fees and Expenses	  	 	8	 
		
	 ARTICLE V. OTHER MATTERS PERTAINING TO THE ASSET REPRESENTATIONS
REVIEWER
	  	 	9	 
			
	 Section 5.01
	 	Limitation on Liability	  	 	9	 
			
	 Section 5.02
	 	Indemnification by Servicer	  	 	9	 
			
	 Section 5.03
	 	Indemnification by Asset Representations Reviewer	  	 	9	 
			
	 Section 5.04
	 	Inspections of Asset Representations Reviewer	  	 	10	 
			
	 Section 5.05
	 	Delegation of Obligations	  	 	10	 
		
	 ARTICLE VI. TREATMENT OF CONFIDENTIAL INFORMATION
	  	 	10	 
			
	 Section 6.01
	 	Confidential Information	  	 	10	 
			
	 Section 6.02
	 	Personally Identifiable Information	  	 	12	 
		
	 ARTICLE VII. REMOVAL, RESIGNATION
	  	 	14	 
			
	 Section 7.01
	 	Eligibility of the Asset Representations Reviewer	  	 	14	 
			
	 Section 7.02
	 	Resignation and Removal of Asset Representations Reviewer	  	 	14	 

  
 i 

							
	 Section 7.03
	 	Successor Asset Representations Reviewer	  	 	15	 
			
	 Section 7.04
	 	Merger, Consolidation or Succession	  	 	15	 
		
	 ARTICLE VIII. OTHER AGREEMENTS
	  	 	16	 
			
	 Section 8.01
	 	Independence of the Asset Representations Reviewer	  	 	16	 
			
	 Section 8.02
	 	No Petition	  	 	16	 
			
	 Section 8.03
	 	Limitation of Liability of Owner Trustee	  	 	16	 
			
	 Section 8.04
	 	Termination of Agreement	  	 	17	 
		
	 ARTICLE IX. MISCELLANEOUS PROVISIONS
	  	 	17	 
			
	 Section 9.01
	 	Amendments	  	 	17	 
			
	 Section 9.02
	 	Assignment; Benefit of Agreement; Third Party Beneficiaries	  	 	18	 
			
	 Section 9.03
	 	Notices	  	 	18	 
			
	 Section 9.04
	 	Governing Law	  	 	18	 
			
	 Section 9.05
	 	Submission to Jurisdiction; Waiver of Jury Trial	  	 	19	 
			
	 Section 9.06
	 	No Waiver; Remedies	  	 	19	 
			
	 Section 9.07
	 	Severability	  	 	19	 
			
	 Section 9.08
	 	Headings	  	 	19	 
			
	 Section 9.09
	 	Counterparts	  	 	20	 
			
	 Section 9.10
	 	Electronic Signatures and Transmission	  	 	20	 

 Schedule A – Representations and Warranties, Review Materials and Tests 

 

  
 ii 

 This ASSET REPRESENTATIONS REVIEW AGREEMENT (this “Agreement”), entered
into as of December 13, 2021, by and among VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2021-1, a Delaware statutory trust, as issuer (the “Issuer”), VW CREDIT, INC., a Delaware corporation
(“VCI”), as servicer (in such capacity, the “Servicer”) and Clayton Fixed Income Services LLC, a Delaware limited liability company, as asset representations reviewer (the “Asset Representations
Reviewer”). 
 WHEREAS, in connection with a securitization transaction sponsored by VCI, VCI sold a pool of Receivables consisting
of retail installment sale contracts to Volkswagen Auto Lease/Loan Underwritten Funding, LLC (the “Depositor”), who sold them to the Issuer; 

WHEREAS, the Issuer will engage the Asset Representations Reviewer to perform reviews of certain Receivables for compliance with certain
representations and warranties made with respect thereto; and 
 WHEREAS, the Asset Representations Reviewer desires to perform such reviews
of Receivables in accordance with the terms of this Agreement. 
 NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows: 

ARTICLE I. 
 USAGE AND
DEFINITIONS 
 Section 1.01 Usage and Definitions. 

Except as otherwise defined herein or as the context may otherwise require, capitalized terms used but not otherwise defined herein are defined
in Appendix A to the Sale and Servicing Agreement, dated as of the date hereof (as from time to time amended, supplemented or otherwise modified and in effect, the “Sale and Servicing Agreement”) among the Issuer, the Servicer, the
Depositor, as seller, and the Indenture Trustee, which also contains rules as to usage that are applicable herein. 
 Section 1.02
Definitions. 
 Whenever used in this Agreement, the following words and phrases shall have the following meanings: 

“Annual Fee” has the meaning stated in Section 4.02(a). 

“Asset Review” means the completion by the Asset Representations Reviewer of the testing procedures for each Test and for
each Subject Receivable as further described in Section 3.03. 

 “Confidential Information” has the meaning stated in
Section 6.01(b). 
 “Eligible Representations” shall mean those representations identified on Schedule A
attached hereto. 
 “Information Recipients” has the meaning stated in Section 6.01(a). 

“Indenture” means the Indenture, dated as of December 13, 2021, between the Issuer and the Indenture Trustee, as the
same may be amended, supplemented or modified from time to time. 
 “Indenture Trustee” means U.S. Bank National
Association, as indenture trustee under the Indenture, and any successor thereto. 
 “Issuer PII” has the meaning stated in
Section 6.02(a). 
 “PII” has the meaning stated in Section 6.02(a). 

“Review Fee” has the meaning stated in Section 4.02(b). 

“Review Materials” means the documents, data, and other information required for each Test listed under “Documents”
in Schedule A. 
 “Review Notice” means a notice delivered to the Asset Representations Reviewer by the Indenture
Trustee pursuant to Section 7.5(b) of the Indenture. 
 “Review Report” means, for an Asset Review, the report
of the Asset Representations Reviewer prepared according to Section 3.04. 
 “Test” has the meaning stated in
Section 3.03(a). 
 “Test Complete” has the meaning stated in Section 3.03(c). 

“Test Fail” has the meaning stated in Section 3.03(a). 

“Test Incomplete” has the meaning stated in Section 3.03(a). 

“Test Pass” has the meaning stated in Section 3.03(a). 

ARTICLE II. 

ENGAGEMENT; ACCEPTANCE 

Section 2.01 Engagement; Acceptance. 

The Issuer hereby engages Clayton Fixed Income Services LLC to act as the Asset Representations Reviewer for the Issuer. Clayton Fixed Income
Services LLC accepts the engagement and agrees to perform the obligations of the Asset Representations Reviewer on the terms stated in this Agreement. 

  
 2 

 Section 2.02 Confirmation of Status. 

The parties confirm that the Asset Representations Reviewer is not responsible for (a) reviewing the Receivables for compliance with the
representations and warranties under the Transaction Documents, except as described in this Agreement, or (b) determining whether noncompliance with the representations or warranties constitutes a breach of the Transaction Documents. 

ARTICLE III. 
 ASSET
REPRESENTATIONS REVIEW PROCESS 
 Section 3.01 Review Notices and Identification of Subject Receivables. 

(a) On receipt of a Review Notice from the Indenture Trustee according to Section 7.5(b) of the Indenture, the Asset Representations
Reviewer will start an Asset Review. The Asset Representations Reviewer will not be obligated to start an Asset Review until a Review Notice is received. 

(b) Within 10 Business Days after receipt of a Review Notice, the Servicer will deliver to the Asset Representations Reviewer, with a copy to
the Indenture Trustee, a list of the Subject Receivables. The Asset Representations Reviewer will not be obligated to start an Asset Review until a Review Notice and the related list of Subject Receivables is received. The Asset Representations
Reviewer is not obligated to verify (i) whether the Indenture Trustee properly determined that a Review Notice was required or (ii) the accuracy or completeness of the list of Subject Receivables provided by the Servicer. 

Section 3.02 Review Materials. 

(a) Access to Review Materials. The Servicer will render reasonable assistance to the Asset Representations Reviewer to facilitate the
Asset Review. The Servicer will give the Asset Representations Reviewer access to the Review Materials for all of the Subject Receivables within sixty (60) calendar days after receipt of the Review Notice in one or more of the following ways in
the Servicer’s reasonable discretion: (i) by electronic posting to a password-protected website to which the Asset Representations Reviewer has access, (ii) by providing originals or photocopies at an office of the Servicer during
normal business hours upon reasonable prior written notice in connection with the Asset Review or (iii) in another manner agreed by the Servicer and the Asset Representations Reviewer. The Servicer may redact or remove Personally Identifiable
Information from the Review Materials so long as all information in the Review Materials necessary for the Asset Representations Reviewer to complete the Asset Review remains intact and unchanged. The Asset Representations Reviewer shall be entitled
to rely in good faith, without independent investigation or verification, that the Review Materials are accurate and complete in all material respects, and not misleading in any material respect. 

  
 3 

 (b) Missing or Insufficient Review Materials. The Asset Representations Reviewer will
review the Review Materials to determine if any Review Materials are missing or insufficient for the Asset Representations Reviewer to perform any Test. If the Asset Representations Reviewer reasonably determines any missing or insufficient Review
Materials, the Asset Representations Reviewer will notify the Servicer promptly, and in any event no less than twenty (20) calendar days before completing the Asset Review. The Servicer will use reasonable efforts to provide the Asset
Representations Reviewer access to the missing Review Materials or other documents or information to correct the insufficiency within fifteen (15) calendar days. If the missing Review Materials or other documents have not been provided by the
Servicer within sixty (60) calendar days, the related Review Report will report a Test Incomplete for each Test that requires use of the missing or insufficient Review Materials. 

Section 3.03 Performance of Reviews. 

(a) Test Procedures. For an Asset Review, the Asset Representations Reviewer will perform, for each Subject Receivable, the procedures
listed under “Procedures to be Performed” in Schedule A for each representation and warranty being tested (each, a “Test”) using the Review Materials listed in Schedule A for each such Test. For each Test and
Subject Receivable, the Asset Representations Reviewer will determine in its reasonable judgment if the Test has been satisfied (a “Test Pass”), if the Test has not been satisfied (a “Test Fail”) or if the Test
could not be conducted as a result of missing or incomplete Review Materials (a “Test Incomplete”). The Asset Representations Reviewer will use such determination for all Subject Receivables that are subject to the same Test. 

(b) Review Period. The Asset Representations Reviewer will complete the Asset Review within sixty (60) calendar days of receiving
access to the Review Materials. However, if additional Review Materials are provided to the Asset Representations Reviewer as described in Section 3.02(b), the Asset Review period will be extended for an additional thirty
(30) calendar days. 
 (c) Completion of Review for Certain Subject Receivables. Following the delivery of the list of the
Subject Receivables and before the delivery of the Review Report by the Asset Representations Reviewer, the Servicer may notify the Asset Representations Reviewer if a Subject Receivable is paid in full by the Obligor or purchased from the Issuer in
accordance with the terms of the Transaction Documents. On receipt of such notice, the Asset Representations Reviewer will immediately terminate all Tests of the related Subject Receivable, and the Asset Review of such Subject Receivables will be
considered complete (a “Test Complete”). In this case, the related Review Report will indicate a Test Complete for such Subject Receivable and the related reason. 

  
 4 

 (d) Previously Reviewed Receivables; Duplicative Tests. If any Subject Receivable was
included in a prior Asset Review, the Asset Representations Reviewer will not conduct additional Tests on such Subject Receivable, but will include the previously reported Test results in the Review Report for the current Asset Review. If the same
Test is required for more than one representation and warranty, the Asset Representations Reviewer will only perform the Test once for each Subject Receivable, but will report the results of the Test for each applicable representation and warranty
on the Review Report. 
 (e) Termination of Review. If an Asset Review is in process and the Notes will be paid in full on the next
Payment Date, the Servicer will notify the Asset Representations Reviewer and the Indenture Trustee no less than ten (10) calendar days before that Payment Date. On receipt of such notice, the Asset Representations Reviewer will terminate the
Asset Review immediately and will not be obligated to deliver a Review Report. 
 (f) Review Systems; Personnel. The Asset
Representations Reviewer will maintain business process management and/or other systems necessary to ensure that it can perform each Test and, on execution of this Agreement, will load each Test into these systems. The Asset Representations Reviewer
will ensure that these systems allow for each Subject Receivable and the related Review Materials to be individually tracked and stored as contemplated by this Agreement. The Asset Representations Reviewer will maintain adequate staff that is
properly trained to conduct Asset Reviews as required by this Agreement. 
 Section 3.04 Review Report. 

Within 10 calendar days after the end of the applicable Asset Review period under Section 3.03(b), the Asset Representations
Reviewer will deliver to the Issuer, the Servicer, and the Indenture Trustee a Review Report indicating for each Subject Receivable whether there was a Test Pass, Test Incomplete, Test Fail or Test Complete for each related Test. For each Test Fail
or Test Complete, the Review Report will indicate the related reason. The Review Report will contain the findings and conclusions of the Asset Representations Reviewer with respect to the Asset Review, and will be included in the Issuer’s Form
10-D report for the Collection Period in which the Review Report is received. The Asset Representations Reviewer will ensure that the Review Report does not contain any PII. On reasonable request of the Servicer, the Asset Representations Reviewer
will provide additional details on the Test results. 
 Section 3.05 Review Representatives. 

(a) Servicer Representative. The Servicer will designate one or more representatives who will be available to assist the Asset
Representations Reviewer in performing the Asset Review, including responding to requests and answering questions from the Asset Representations Reviewer about access to Review Materials on the Servicer’s originations, receivables or other
systems, obtaining missing or insufficient Review Materials and/or providing clarification of any Review Materials or Tests. 
 (b) Asset
Representations Review Representative. The Asset Representations Reviewer will designate one or more representatives who will be available to the Issuer and the Servicer during the performance of an Asset Review. 

  
 5 

 (c) Questions About Review. The Asset Representations Reviewer will make appropriate
personnel available to respond in writing to written questions or requests for clarification of any Review Report from the Servicer until the earlier of (i) one (1) year after the delivery of the subject Review Report or (ii) the
payment in full of the Notes. The Asset Representations Reviewer will not be obligated to respond to questions or requests for clarification from Noteholders or any other Person and will direct such Persons to submit written questions or requests to
the Servicer. 
 Section 3.06 Dispute Resolution. 

If a Subject Receivable that was the subject of an Asset Review becomes the subject of a dispute resolution proceeding under Section 9.24
of the Sale and Servicing Agreement, the Asset Representations Reviewer will participate in the dispute resolution proceeding on request of a party to the proceeding. The reasonable out-of-pocket expenses of the Asset Representations Reviewer for
its participation in any dispute resolution proceeding will be considered expenses of the Requesting Party for the dispute resolution and will be paid by a party to the dispute resolution as determined by the mediator or arbitrator for the dispute
resolution according to Section 9.24 of the Sale and Servicing Agreement. If not paid by a party to the dispute resolution, the expenses will be reimbursed according to Section 4.02(c) of this Agreement. 

Section 3.07 Limitations on Review Obligations. 

(a) Review Process Limitations. The Asset Representations Reviewer will have no obligation (i) to determine whether a Delinquency
Trigger has occurred or whether the required percentage of Noteholders has voted to direct an Asset Review under the Indenture, (ii) to determine which Receivables are subject to an Asset Review, (iii) to obtain or confirm the validity of
the Review Materials, (iv) to obtain missing or insufficient Review Materials except as specifically described herein, (v) to take any action or cause any other party to take any action under any of the Transaction Documents to enforce any
remedies for breaches of representations or warranties about the Subject Receivables, (vi) to determine the reason for the delinquency of any Subject Receivable, the creditworthiness of any Obligor, the overall quality of any Subject
Receivable, or the compliance by the Servicer with its covenants with respect to the servicing of any Subject Receivable, or (vii) to establish cause, materiality, or recourse for any failed Test. 

(b) Maintenance of Review Materials. The Asset Representations Reviewer will maintain copies of any Review Materials, Review Reports and
other documents relating to an Asset Review, including internal correspondence and work papers, until the earlier of (i) two (2) years after the delivery of any Review Report or (ii) the repayment of the Notes in full. 

  
 6 

 ARTICLE IV. 

ASSET REPRESENTATIONS REVIEWER 

Section 4.01 Representations, Warranties and Covenants of the Asset Representations Reviewer. 

The Asset Representations Reviewer hereby makes the following representations, warranties and covenants as of the Closing Date: 

(a) Organization and Qualification. The Asset Representations Reviewer is duly organized and validly existing as a limited liability
company in good standing under the laws of State of Delaware. The Asset Representations Reviewer is qualified as a foreign limited liability company in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which
the ownership or lease of its properties or the conduct of its activities requires the qualification, license or approval, unless the failure to obtain the qualifications, licenses or approvals would not reasonably be expected to have a material
adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under this Agreement. 
 (b) Power,
Authority and Enforceability. The Asset Representations Reviewer has the power and authority to execute, deliver and perform its obligations under this Agreement. The Asset Representations Reviewer has authorized the execution, delivery and
performance of this Agreement. This Agreement is the legal, valid and binding obligation of the Asset Representations Reviewer enforceable against the Asset Representations Reviewer, except as may be limited by insolvency, bankruptcy, reorganization
or other laws relating to the enforcement of creditors’ rights or by general equitable principles. 
 (c) No Conflicts and No
Violation. The completion of the transactions contemplated by this Agreement and the performance of the Asset Representations Reviewer’s obligations under this Agreement will not (i) conflict with, or be a breach or default under, any
indenture, loan agreement, guarantee or similar document under which the Asset Representations Reviewer is a debtor or guarantor, (ii) result in the creation or imposition of a Lien on the properties or assets of the Asset Representations
Reviewer under the terms of any indenture, loan agreement, guarantee or similar document, (iii) violate the organizational documents of the Asset Representations Reviewer or (iv) violate a law or, to the Asset Representations
Reviewer’s knowledge, an order, rule or regulation of a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Asset Representations Reviewer or its property that
applies to the Asset Representations Reviewer, which, in each case, would reasonably be expected to have a material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under this Agreement. 

(d) No Proceedings. To the Asset Representations Reviewer’s knowledge, there are no proceedings or investigations pending or
threatened in writing before a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Asset Representations Reviewer or its properties (i) asserting the invalidity of
this Agreement, (ii) seeking to prevent the completion of the transactions contemplated by this Agreement or (iii) seeking any determination or ruling that would reasonably be expected to have a material adverse effect on the Asset
Representations Reviewer’s ability to perform its obligations under, or the validity or enforceability of, this Agreement. 

  
 7 

 (e) Eligibility. The Asset Representations Reviewer meets the eligibility
requirements in Section 7.01, and will notify the Issuer and the Servicer promptly if it no longer meets, or reasonably expects that it will no longer meet, the eligibility requirements in Section 5.01. 

Section 4.02 Fees and Expenses. 

(a) Annual Fee. The Servicer will pay the Asset Representations Reviewer, as compensation for its activities under this Agreement, an
annual fee of $5,000.00 (the “Annual Fee”). The Annual Fee will be payable by the Servicer on the Closing Date and on each anniversary thereof until this Agreement is terminated; provided, that in the year in which all Notes are
paid in full, the Annual Fee shall be reduced pro rata by an amount equal to the days of the year in which the Notes are no longer outstanding. 

(b) Review Fee. Following the completion of an Asset Review and the delivery of the related Review Report pursuant to
Section 3.04, or the termination of an Asset Review according to Section 3.03(e), and the delivery to the Indenture Trustee and the Servicer of a detailed invoice, the Asset Representations Reviewer will be entitled to a fee
of $200.00 for each Subject Receivable for which the Asset Review was started (the “Review Fee”). However, no Review Fee will be charged for any Subject Receivable which was included in a prior Asset Review or for which no Tests
were completed prior to the Asset Representations Reviewer being notified of a termination of the Asset Review according to Section 3.03(e) or due to missing or insufficient Review Materials under Section 3.02(b). 

(c) Dispute Resolution Expenses. If the Asset Representations Reviewer participates in a dispute resolution proceeding under
Section 3.06 of this Agreement and its reasonable out-of-pocket expenses for participating in the proceeding are not paid by a party to the dispute resolution within ninety (90) days after the end of the proceeding, the Servicer
will reimburse the Asset Representations Reviewer for such expenses upon receipt of a detailed invoice. 
 (d) Reimbursement of
Expenses. The Servicer shall reimburse the Asset Representations Reviewer for all reasonable out-of-pocket expenses incurred or made by it, in addition to the compensation for its services. Such expenses shall include the reasonable compensation
and expenses, disbursements and advances of the Asset Representations Reviewer’s agents, counsel, accountants and experts. 
 (e)
Payment of Invoices. The Asset Representations Reviewer will issue invoices to the Servicer at the notices address set forth in Schedule II to the Sale and Servicing Agreement and Servicer shall pay all invoices submitted by the Asset
Representations Reviewer within thirty (30) days following the receipt by the Servicer. Any amounts payable by the Servicer to the Asset Representations Reviewer pursuant to this Agreement that have been outstanding for at least thirty
(30) days shall be paid on the Payment Date related to the Collection Period in which such 30th day occurs, in accordance with Section 4.4 of the Sale and Servicing Agreement or
Section 5.4(b) of the Indenture, as applicable. 

  
 8 

 ARTICLE V. 

OTHER MATTERS PERTAINING TO THE ASSET REPRESENTATIONS REVIEWER 

Section 5.01 Limitation on Liability. 

The Asset Representations Reviewer will not be liable to any Person for any action taken, or not taken, in good faith under this Agreement or
for errors in judgment. However, the Asset Representations Reviewer will be liable for its willful misconduct, bad faith, breach of this Agreement or negligence in performing its obligations under this Agreement. In no event will the Asset
Representations Reviewer be liable for special, indirect or consequential losses or damages (including lost profit), even if the Asset Representations Reviewer has been advised of the likelihood of the loss or damage and regardless of the form of
action. 
 Section 5.02 Indemnification by Servicer. 

The Servicer shall indemnify the Asset Representations Reviewer against any and all loss, liability or expense (including reasonable
attorneys’ fees) incurred by it in connection with the administration of this Agreement and the performance of its duties hereunder. The Asset Representations Reviewer shall notify the Servicer promptly of any claim for which it may seek
indemnity. Failure by the Asset Representations Reviewer to so notify the Servicer shall not relieve the Servicer of its obligations hereunder. The Servicer shall defend any such claim, and the Asset Representations Reviewer may have separate
counsel and the Servicer shall pay the fees and expenses of such counsel. The Servicer shall not reimburse any expense or indemnify against any loss, liability or expense incurred by the Asset Representations Reviewer arising out of or resulting
from the Asset Representations Reviewer’s own bad faith, negligence, willful misfeasance or breach of this Agreement. The Servicer’s obligations under this Section 5.02 will survive the termination of this Agreement, the
termination of the Issuer and the resignation or removal of the Asset Representations Reviewer. 
 Section 5.03 Indemnification by
Asset Representations Reviewer. 
 The Asset Representations Reviewer will indemnify each of the Issuer, the Seller, the Servicer, the
Administrator, the Owner Trustee, the Issuer Delaware Trustee and the Indenture Trustee and their respective directors, officers, employees and agents for all fees, expenses, losses, damages and liabilities resulting from (a) the willful
misconduct, bad faith or negligence of the Asset Representations Reviewer in performing its obligations under this Agreement and (b) the Asset Representations Reviewer’s breach of any of its representations or warranties in this Agreement.
The Asset Representations Reviewer’s obligations under this Section 5.03 will survive the termination of this Agreement, the termination of the Issuer and the resignation or removal of the Asset Representations Reviewer. 

  
 9 

 Section 5.04 Inspections of Asset Representations Reviewer. 

The Asset Representations Reviewer agrees that, with reasonable advance notice not more than once during any year, it will permit authorized
representatives of the Issuer or the Servicer, during the Asset Representations Reviewer’s normal business hours, to examine and review the books of account, records, reports and other documents and materials of the Asset Representations
Reviewer relating to (a) the performance of the Asset Representations Reviewer’s obligations under this Agreement, (b) payments of fees and expenses of the Asset Representations Reviewer for its performance and (c) a claim made
by the Asset Representations Reviewer under this Agreement. In addition, the Asset Representations Reviewer will permit the Issuer’s or the Servicer’s representatives to make copies and extracts of any of those documents and to discuss
them with the Asset Representations Reviewer’s officers and employees. Each of the Issuer and the Servicer will, and will cause its authorized representatives to, hold in confidence the information except if disclosure may be required by law or
if the Issuer or the Servicer reasonably determines that it is required to make the disclosure under this Agreement or the other Transaction Documents. The Asset Representations Reviewer will maintain all relevant books, records, reports and other
documents and materials for a period of at least two years after the termination of its obligations under this Agreement. 

Section 5.05 Delegation of Obligations. 

The Asset Representations Reviewer may not delegate or subcontract its obligations under this Agreement to any Person without the consent of
the Issuer and the Servicer. 
 ARTICLE VI. 

TREATMENT OF CONFIDENTIAL INFORMATION 

Section 6.01 Confidential Information. 

(a) Treatment. The Asset Representations Reviewer agrees to hold and treat Confidential Information given to it under this Agreement in
confidence and under the terms and conditions of this Article VI, and will implement and maintain safeguards to further assure the confidentiality of the Confidential Information. The Confidential Information will not, without the prior
consent of the Issuer and the Servicer, be disclosed or used by the Asset Representations Reviewer, or its officers, directors, employees, agents, representatives or affiliates, including legal counsel (collectively, the “Information
Recipients”) other than for the purposes of performing Reviews of Subject Receivables or performing its obligations under this Agreement. The Asset Representations Reviewer agrees that it will not, and will cause its Affiliates to not
(i) purchase or sell securities issued by VCI or its Affiliates or special purpose entities on the basis of Confidential Information or (ii) use the Confidential Information for the preparation of research reports, newsletters or other
publications or similar communications. 

  
 10 

 (b) Definition. “Confidential Information” means oral, written and
electronic materials (irrespective of its source or form of communication) furnished before, on or after the date of this Agreement to the Asset Representations Reviewer for the purposes contemplated by this Agreement, including: 

(i) lists of Subject Receivables and any related Review Materials; 

(ii) origination and servicing guidelines, policies and procedures, and form contracts; and 

(iii) notes, analyses, compilations, studies or other documents or records prepared by the Servicer, which contain information
supplied by or on behalf of the Servicer or its representatives. 
 However, Confidential Information will not include information that
(A) is or becomes generally available to the public other than as a result of disclosure by the Information Recipients, (B) was available to, or becomes available to, the Information Recipients on a non-confidential basis from a Person or
entity other than the Issuer or the Servicer before its disclosure to the Information Recipients who, to the knowledge of the Information Recipient is not bound by a confidentiality agreement with the Issuer or the Servicer and is not prohibited
from transmitting the information to the Information Recipients, (C) is independently developed by the Information Recipients without the use of the Confidential Information, as shown by the Information Recipients’ files and records or
other evidence in the Information Recipients’ possession or (D) the Issuer or the Servicer provides permission to the applicable Information Recipients to release. 

(c) Protection. The Asset Representations Reviewer will use best efforts to protect the secrecy of and avoid disclosure and unauthorized
use of Confidential Information, including those measures that it takes to protect its own confidential information and not less than a reasonable standard of care. The Asset Representations Reviewer acknowledges that Personally Identifiable
Information is also subject to the additional requirements in Section 6.02. 
 (d) Disclosure. If the Asset
Representations Reviewer is required by applicable law, regulation, rule or order issued by an administrative, governmental, regulatory or judicial authority to disclose part of the Confidential Information, it may disclose the Confidential
Information. However, before a required disclosure, the Asset Representations Reviewer, if permitted by law, regulation, rule or order, will use its reasonable efforts to provide the Issuer and the Servicer with notice of the requirement and will
cooperate, at the Servicer’s expense, in the Issuer’s and the Servicer’s pursuit of a proper protective order or other relief for the disclosure of the Confidential Information. If the Issuer or the Servicer is unable to obtain a
protective order or other proper remedy by the date that the information is required to be disclosed, the Asset Representations Reviewer will disclose only that part of the Confidential Information that it is advised by its legal counsel it is
legally required to disclose. 
 (e) Responsibility for Information Recipients. The Asset Representations Reviewer will be responsible
for a breach of this Section 6.01 by its Information Recipients. 

  
 11 

 (f) Violation. The Asset Representations Reviewer agrees that a violation of this
Agreement may cause irreparable injury to the Issuer and the Servicer and the Issuer and the Servicer may seek injunctive relief in addition to legal remedies. If an action is initiated by the Issuer or the Servicer to enforce this
Section 6.01, the prevailing party will be reimbursed for its fees and expenses, including reasonable attorney’s fees, incurred for the enforcement. 

Section 6.02 Personally Identifiable Information. 

(a) Definitions. “Personally Identifiable Information” or “PII” means information in any format about
an identifiable individual, including, name, address, phone number, e-mail address, account number(s), identification number(s), vehicle identification number or “VIN,” any other actual or assigned attribute associated with or identifiable
to an individual and any information that when used separately or in combination with other information could identify an individual. “Issuer PII” means PII furnished by the Issuer, the Servicer or their Affiliates to the Asset
Representations Reviewer and PII developed or otherwise collected or acquired by the Asset Representations Reviewer in performing its obligations under this Agreement. 

(b) Use of Issuer PII. The Issuer does not grant the Asset Representations Reviewer any rights to Issuer PII except as provided in this
Agreement. The Asset Representations Reviewer will use Issuer PII only to perform its obligations under this Agreement or as specifically directed in writing by the Issuer and will only reproduce Issuer PII to the extent necessary for these
purposes. The Asset Representations Reviewer must comply with all laws applicable to PII, Issuer PII and the Asset Representations Reviewer’s business, including any legally required codes of conduct, including those relating to privacy,
security and data protection. The Asset Representations Reviewer will protect and secure Issuer PII. The Asset Representations Reviewer will implement privacy or data protection policies and procedures that comply with applicable law and this
Agreement. The Asset Representations Reviewer will implement and maintain reasonable and appropriate practices, procedures and systems, including administrative, technical and physical safeguards to (i) protect the security, confidentiality and
integrity of Issuer PII, (ii) ensure against anticipated threats or hazards to the security or integrity of Issuer PII, (iii) protect against unauthorized access to or use of Issuer PII and (iv) otherwise comply with its obligations
under this Agreement. These safeguards include a written data security plan, employee training, information access controls, restricted disclosures, systems protections (e.g., intrusion protection, data storage protection and data transmission
protection) and physical security measures. 

  
 12 

 (c) Additional Limitations. In addition to the use and protection requirements
described in Section 6.02(b), the Asset Representations Reviewer’s disclosure of Issuer PII is also subject to the following requirements: 

(i) The Asset Representations Reviewer will not disclose Issuer PII to its personnel or allow its personnel access to Issuer
PII except (A) for the Asset Representations Reviewer personnel who require Issuer PII to perform an Asset Review, (B) with the prior consent of the Issuer or (C) as required by applicable law. When permitted, the disclosure of or
access to Issuer PII will be limited to the specific information necessary for the individual to complete the assigned task. The Asset Representations Reviewer will inform personnel with access to Issuer PII of the confidentiality requirements in
this Agreement and train its personnel with access to Issuer PII on the proper use and protection of Issuer PII. 
 (ii) The
Asset Representations Reviewer will not sell, disclose, provide or exchange Issuer PII with or to any third party without the prior consent of the Issuer. 

(d) Notice of Breach. The Asset Representations Reviewer will notify the Issuer promptly in the event of an actual or reasonably
suspected security breach, unauthorized access, misappropriation or other compromise of the security, confidentiality or integrity of Issuer PII and, where applicable, immediately take action to prevent any further breach. 

(e) Return or Disposal of Issuer PII. Except where return or disposal is prohibited by applicable law, promptly on the earlier of the
completion of the Asset Review or the request of the Issuer, all Issuer PII in any medium in the Asset Representations Reviewer’s possession or under its control will be (i) destroyed in a manner that prevents its recovery or restoration
or (ii) if so directed by the Issuer, returned to the Issuer without the Asset Representations Reviewer retaining any actual or recoverable copies, in both cases, without charge to the Issuer. Where the Asset Representations Reviewer retains
Issuer PII, the Asset Representations Reviewer will limit the Asset Representations Reviewer’s further use or disclosure of Issuer PII to that required by applicable law. 

(f) Compliance; Modification. The Asset Representations Reviewer will cooperate with and provide information to the Issuer regarding the
Asset Representations Reviewer’s compliance with this Section 6.02. The Asset Representations Reviewer and the Issuer agree to modify this Section 6.02 as necessary for either party to comply with applicable law. 

(g) Audit of Asset Representations Reviewer. The Asset Representations Reviewer will permit the Issuer and its authorized
representatives to audit the Asset Representations Reviewer’s compliance with this Section 6.02 during the Asset Representations Reviewer’s normal business hours on reasonable advance notice to the Asset Representations
Reviewer, and not more than once during any year unless circumstances necessitate additional audits. The Issuer agrees to make reasonable efforts to schedule any audit described in this Section 6.02 with the inspections described in
Section 5.04. The Asset Representations Reviewer will also permit the Issuer and its authorized representatives during normal business hours on reasonable advance notice to audit any service providers used by the Asset Representations
Reviewer to fulfill the Asset Representations Reviewer’s obligations under this Agreement. 
 (h) Affiliates and Third Parties.
If the Asset Representations Reviewer processes the PII of the Issuer’s Affiliates or a third party when performing an Asset Review, and if such Affiliate or third party is identified to the Asset Representations Reviewer, such Affiliate or
third party is an intended third-party beneficiary of this Section 6.02, and this Agreement is intended to benefit the Affiliate or third party. The Affiliate or third party may enforce the PII related terms of this
Section 6.02 against the Asset Representations Reviewer as if each were a signatory to this Agreement. 

  
 13 

 ARTICLE VII. 

REMOVAL, RESIGNATION 

Section 7.01 Eligibility of the Asset Representations Reviewer. 

The Asset Representations Reviewer must be a Person who (a) is not Affiliated with VCI, the Depositor, the Servicer, the Indenture
Trustee, the Owner Trustee, the Issuer Delaware Trustee or any of their Affiliates and (b) was not, and is not Affiliated with a Person that was, engaged by the Sponsor or any underwriter to perform any due diligence on the Receivables prior to
the Closing Date. 
 Section 7.02 Resignation and Removal of Asset Representations Reviewer. 

(a) No Resignation. The Asset Representations Reviewer will not resign as Asset Representations Reviewer except if (i) the Asset
Representations Reviewer no longer meets the eligibility requirements in Section 7.01 or (ii) the Asset Representations Reviewer has determined that the performance of its duties under this Agreement is no longer permissible under
applicable law and there is no reasonable action that it could take to make the performance of its obligations under this Agreement permitted under applicable law. Upon the occurrence of one of the foregoing events, the Asset Representations
Reviewer shall promptly resign and the Servicer shall appoint a successor Asset Representations Reviewer. The Asset Representations Reviewer will deliver a notice of its resignation to the Issuer and the Servicer, and an Opinion of Counsel
supporting its determination. 
 (b) Removal. If any of the following events occur, the Servicer, by notice to the Asset
Representations Reviewer and the Issuer, may remove the Asset Representations Reviewer and terminate its rights and obligations under this Agreement: 

(i) the Asset Representations Reviewer no longer meets the eligibility requirements in Section 7.01; 

(ii) the Asset Representations Reviewer breaches of any of its representations, warranties, covenants or obligations in this
Agreement; or 
 (iii) a Bankruptcy Event of the Asset Representations Reviewer occurs. 

(c) Notice of Resignation or Removal. The Issuer will notify the Servicer, the Owner Trustee and the Indenture Trustee of any
resignation or removal of the Asset Representations Reviewer. 

  
 14 

 (d) Continue to Perform After Resignation or Removal. No resignation or removal of
the Asset Representations Reviewer will be effective, and the Asset Representations Reviewer will continue to perform its obligations under this Agreement, until a successor Asset Representations Reviewer has accepted its engagement according to
Section 7.03(b). 
 Section 7.03 Successor Asset Representations Reviewer. 

(a) Engagement of Successor Asset Representations Reviewer. Following the resignation or removal of the Asset Representations Reviewer,
the Servicer will engage a successor Asset Representations Reviewer who meets the eligibility requirements of Section 7.01. 

(b) Effectiveness of Resignation or Removal. No resignation or removal of the Asset Representations Reviewer will be effective until the
successor Asset Representations Reviewer has executed and delivered to the Issuer and the Servicer an agreement accepting its engagement and agreeing to perform the obligations of the Asset Representations Reviewer under this Agreement or entering
into a new agreement with the Issuer and the Servicer on substantially the same terms as this Agreement. 
 (c) Transition and
Expenses. If the Asset Representations Reviewer resigns or is removed, the Asset Representations Reviewer will cooperate with the Issuer and the Servicer and take all actions reasonably requested to assist the Issuer in making an orderly
transition of the Asset Representations Reviewer’s rights and obligations under this Agreement to the successor Asset Representations Reviewer. The Asset Representations Reviewer will pay the reasonable expenses of transitioning the Asset
Representations Reviewer’s obligations under this Agreement and preparing the successor Asset Representations Reviewer to take on the obligations on receipt of an invoice with reasonable detail of the expenses from the Issuer and the Servicer
or the successor Asset Representations Reviewer. 
 Section 7.04 Merger, Consolidation or Succession. 

Any Person (a) into which the Asset Representations Reviewer is merged or consolidated, (b) resulting from any merger or
consolidation to which the Asset Representations Reviewer is a party or (c) succeeding to the business of the Asset Representations Reviewer, if that Person meets the eligibility requirements in Section 7.01, will be the successor
to the Asset Representations Reviewer under this Agreement. Such Person will execute and deliver to the Issuer and the Servicer an agreement to assume the Asset Representations Reviewer’s obligations under this Agreement (unless the assumption
happens by operation of law). 

  
 15 

 ARTICLE VIII. 

OTHER AGREEMENTS 

Section 8.01 Independence of the Asset Representations Reviewer. 

The Asset Representations Reviewer will be an independent contractor and will not be subject to the supervision of, or deemed to be the agent
of, the Issuer, the Indenture Trustee or the Owner Trustee for the manner in which it accomplishes the performance of its obligations under this Agreement. None of the Issuer, the Indenture Trustee or the Owner Trustee shall be responsible for
monitoring the performance of the Asset Representations Reviewer or liable to any Person for the failure of the Asset Representations Reviewer to perform its obligations hereunder. Unless authorized by the Issuer, the Indenture Trustee or the Owner
Trustee, respectively, the Asset Representations Reviewer will have no authority to act for or represent the Issuer, the Indenture Trustee or the Owner Trustee and will not be considered an agent of the Issuer, the Indenture Trustee or the Owner
Trustee. Nothing in this Agreement will make the Asset Representations Reviewer and either of the Issuer, the Indenture Trustee or the Owner Trustee members of any partnership, joint venture or other separate entity or impose any liability as such
on any of them. 
 Section 8.02 No Petition. 

Each party hereto agrees that, prior to the date which is one year and one day after payment in full of all obligations of each Bankruptcy
Remote Party in respect of all securities issued by any Bankruptcy Remote Party (a) such party hereto shall not authorize any Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary case or other proceeding seeking
liquidation, reorganization or other relief with respect to such Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect in any jurisdiction or seeking the appointment of an
administrator, a trustee, receiver, liquidator, custodian or other similar official with respect to such Bankruptcy Remote Party or any substantial part of its property or to consent to any such relief or to the appointment of or taking possession
by any such official in an involuntary case or other proceeding commenced against such Bankruptcy Remote Party, or to make a general assignment for the benefit of its creditors generally, any party hereto or any other creditor of such Bankruptcy
Remote Party, and (b) such party shall not commence or join with any other Person in commencing any proceeding against such Bankruptcy Remote Party under any bankruptcy, reorganization, liquidation or insolvency law or statute now or hereafter
in effect in any jurisdiction. This Section 8.02 shall survive the termination of this Agreement. 
 Section 8.03
Limitation of Liability of Owner Trustee. 
 Notwithstanding anything contained herein to the contrary, (a) this Agreement has
been executed and delivered by Citibank, N.A., not in its individual capacity but solely as Owner Trustee (b) each of the representations, undertakings and agreements herein made on the part of the Owner Trustee and the Issuer is made and
intended not as personal representations, undertakings and agreements by Citibank, N.A. but is made and intended for the purpose of 

  
 16 

 
binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on Citibank, N.A., individually or personally, to perform any covenant either expressed or
implied contained herein of the Owner Trustee or the Issuer, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto, (d) Citibank, N.A. has made no
investigation as to the accuracy or completeness of any representations and warranties made by the Owner Trustee or the Issuer in this Agreement and (e) under no circumstances shall Citibank, N.A. be personally liable for the payment of any
indebtedness or expenses of the Owner Trustee or the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Owner Trustee or the Issuer under Agreement or any other related
documents. For the purposes of this Agreement, in the performance of its duties or obligations hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust
Agreement. 
 Section 8.04 Termination of Agreement. 

This Agreement will terminate, except for the obligations under Article VI and Sections 5.02 and 5.03, on the earlier of
(a) the payment in full of all outstanding Notes and the satisfaction and discharge of the Indenture and (b) the date the Issuer is terminated under the Trust Agreement. 

ARTICLE IX. 

MISCELLANEOUS PROVISIONS 

Section 9.01 Amendments. 

(a) Any term or provision of this Agreement may be amended by the Servicer and the Asset Representations Reviewer without the consent of the
Indenture Trustee, any Noteholder, the Issuer, the Owner Trustee or any other Person subject to the satisfaction of one of the following conditions: 
  

	 	(i)	 the Servicer delivers an Opinion of Counsel to the Indenture Trustee to the effect that such amendment will not
materially and adversely affect the interests of the Noteholders; 

  

	 	(ii)	 the Servicer delivers an Officer’s Certificate to the Indenture Trustee to the effect that such amendment
will not materially and adversely affect the interests of the Noteholders; or 

  

	 	(iii)	 the Rating Agency Condition is satisfied with respect to such amendment and the Servicer notifies the Indenture
Trustee in writing that the Rating Agency Condition is satisfied with respect to such amendment; 

  
 17 

 provided, that no amendment pursuant to this Section 9.01 shall be
effective which affects the rights, protections or duties of the Indenture Trustee or the Owner Trustee without the prior written consent of such Person. 

(b) This Agreement may also be amended from time to time by the Servicer and the Asset Representations Reviewer with the consent of the Holders
of Notes evidencing not less than a majority of the aggregate principal balance of the Outstanding Notes for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Noteholders. It will not be necessary for the consent of Noteholders to approve the particular form of any proposed amendment or consent, but it will be sufficient if such consent approves the substance thereof. The
manner of obtaining such consents (and any other consents of Noteholders provided for in this Agreement) and of evidencing the authorization of the execution thereof by Noteholders will be subject to such reasonable requirements as the Indenture
Trustee may prescribe, including the establishment of record dates pursuant to the Note Depository Agreement. 
 Section 9.02
Assignment; Benefit of Agreement; Third Party Beneficiaries. 
 (a) Assignment. Except as stated in Section 7.04,
this Agreement may not be assigned by the Asset Representations Reviewer without the consent of the Issuer and the Servicer. 
 (b)
Benefit of Agreement; Third-Party Beneficiaries. This Agreement is for the benefit of and will be binding on the parties and their permitted successors and assigns. The Owner Trustee, the Issuer Delaware Trustee and the Indenture Trustee, for
the benefit of the Noteholders, will be third-party beneficiaries of this Agreement and may enforce this Agreement against the Asset Representations Reviewer and the Servicer. No other Person will have any right or obligation under this Agreement.

 Section 9.03 Notices. 

All demands, notices and communications hereunder shall be in writing and shall be delivered or mailed by registered or certified first-class United States mail, postage prepaid, hand delivery, prepaid courier service, via electronic mail, or by facsimile and addressed in each case as specified on Schedule II to the Sale and Servicing
Agreement, or at such other address as shall be designated in a written notice to the other parties hereto. 
 Section 9.04
Governing Law. 
 THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL, SUBSTANTIVE LAWS OF THE STATE
OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING TO CONFLICTS OF LAW, OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS. 

  
 18 

 Section 9.05 Submission to Jurisdiction; Waiver of Jury Trial. 

Each of the parties hereto hereby irrevocably and unconditionally: 

(a) submits for itself and its property in any legal action or proceeding relating to this Agreement or any documents executed and delivered in
connection herewith, or for recognition and enforcement of any judgment in respect thereof, to the nonexclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New
York and appellate courts from any thereof; 
 (b) consents that any such action or proceeding may be brought and maintained in such courts
and waives any objection that it may now or hereafter have to the venue of such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

(c) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail
(or any substantially similar form of mail), postage prepaid, to such Person at its address determined in accordance with Section 9.03; 

(d) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the
right to sue in any other jurisdiction; and to the extent permitted by applicable law, each party hereto irrevocably waives all right of trial by jury in any action, proceeding or counterclaim based on, or arising out of, under or in connection with
this Agreement, any other Transaction Document, or any matter arising hereunder or thereunder. 
 Section 9.06 No Waiver;
Remedies. 
 No party’s failure or delay in exercising a power, right or remedy under this Agreement will operate as a waiver. No
single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power, right or remedy or the exercise of any other power, right or remedy. The powers, rights and remedies under this Agreement are in
addition to any powers, rights and remedies under law. 
 Section 9.07 Severability. 

If a part of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining Agreement and will
not affect the validity, legality or enforceability of the remaining Agreement. 
 Section 9.08 Headings. 

The headings in this Agreement are included for convenience and will not affect the meaning or interpretation of this Agreement. 

  
 19 

 Section 9.09 Counterparts. 

This Agreement may be executed in any number of counterparts, including in counterparts executed via electronic signature, each of which so
executed shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument. Delivery of an executed counterpart of a signature page of this Agreement by electronic transmission shall be
effective as delivery of a manually executed counterpart of this Agreement. 
 Section 9.10 Electronic Signatures and
Transmission. 
 (a) For purposes of this Agreement, any reference to “written” or “in writing” means any form of
written communication, including, without limitation, electronic signatures, and any such written communication may be transmitted by electronic transmission. The term “electronic signature” shall mean any electronic symbol or process
attached to, or associated with, a contract or other record and adopted by a person with the intent to sign, authenticate or accept such contract or record. Each of the parties hereto agrees that this Agreement, any addendum or amendment hereto or
any other document necessary for the consummation of the transactions contemplated by this Agreement may be accepted, executed or agreed to through the use of an electronic signature in accordance with the E-Sign Act, UETA or any applicable state
law. Each of the parties hereto are authorized to accept written instructions, directions, reports, notices or other communications delivered by electronic transmission and shall not have any duty or obligation to verify or confirm that the Person
sending instructions, directions, reports, notices or other communications or information by electronic transmission is, in fact, a Person authorized to give such instructions, directions, reports, notices or other communications or information on
behalf of the party purporting to send such electronic transmission; and none of the parties hereto shall have any liability for any losses, liabilities, costs or expenses incurred or sustained by any party as a result of such reliance upon or
compliance with such instructions, directions, reports, notices or other communications or information delivered to such party, including, without limitation, the risk of such party acting on unauthorized instructions, notices, reports or other
communications or information, and the risk of interception and misuse by third parties. 
 (b) Any requirement in this Agreement that a
document, including this Agreement, is to be signed or authenticated by “manual signature” or similar language shall not be deemed to prohibit signature by facsimile or electronic signature and shall not be deemed to prohibit delivery
thereof by electronic transmission. 
 [Remainder of Page Left Blank] 

  
 20 

 IN WITNESS WHEREOF, the Issuer, the Servicer, and the Asset Representations Reviewer have
caused their names to be signed hereto by their respective officers thereunto duly authorized as of the date first above written. 
  

			
	 VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2021-1,
as Issuer

		
	By:	 	Citibank, N.A., not in its individual capacity, but solely as Owner Trustee
		
	By:	 	  

		 	Name:
		 	Title:
	
	 VW CREDIT, INC.,
as Servicer

		
	By:	 	  

		 	 Name:  Rafael Vieira Teixeira

		 	 Title:   Executive Vice President and

		 	      Chief Financial Officer

		
	By:	 	  

		 	 Name:  Jens Schreiber

		 	 Title:   Treasurer

	
	 CLAYTON FIXED INCOME SERVICES LLC,
as Asset Representations
Reviewer

		
	By:	 	
                

		 	Name:
		 	Title:

  
 2021-1 Asset
Representations Review Agreement 

 Schedule A 

REPRESENTATIONS AND WARRANTIES, REVIEW MATERIALS AND TESTS 

Characteristics of Receivables (a): Each Receivable: 
  

	 	(i)	 has been fully executed by the Obligor thereto; 

 

	 	(ii)	 has either (A) been originated by a Dealer located in the United States to finance the sale by a Dealer of
the related Financed Vehicle and has been purchased by the Originator or (B) has been originated or acquired by the Originator; 

  

	 	(iii)	 as of the Closing Date is secured by a first priority perfected security interest in the Financed Vehicle in
favor of the Originator, as secured party, or all necessary actions have been commenced that would result in a first priority validly perfected security interest in the Financed Vehicle in favor of the Originator, as secured party;

  

	 	(iv)	 contains provisions that permit the repossession and sale of the Financed Vehicle upon a default under the
Receivable by the Obligor; 

  

	 	(v)	 provided, at origination, for level monthly payments which fully amortize the initial Outstanding Principal
Balance over the original term; provided, that the amount of the first and last payments may be different but in no event more than three times the level monthly payment; 

 

	 	(vi)	 provides for interest at the Contract Rate specified in the Schedule of Receivables; and 

 

	 	(vii)	 was denominated in Dollars. 

Documents 
  

	 	(i)	 Retail contract 

  

	 	(ii)	 Title documents 

  

	 	(iii)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Fully Executed 

  

	 	(A)	 Confirm there is a signature of the appropriate Obligor on the contract. 

 

	 	(ii)	 Origination of Receivable 

 

	 	(A)	 Confirm the Receivable was either originated by a Dealer or Originator or acquired by the Originator.

  

	 	(B)	 If originated by a Dealer, confirm the Dealer’s address is in the United States. 

 

	 	(C)	 If originated by a Dealer, confirm the Receivable was assigned by the Dealer to the Originator.

	 	(iii)	 First Priority Interest 

	 	(A)	 Confirm the contract contains language regarding the creation of an enforceable security interest.

  

	 	(B)	 Confirm that a Certificate of Title lists VCI, or an acceptable variation of its name, as primary lienholder or
that an application for a Certificate of Title has been filed in the applicable state listing VCI, or an acceptable variation of its name, as primary lienholder. 

 

	 	(C)	 Confirm that the Obligor’s name, or an acceptable variation thereof, on the contract matches the name on
the title documents. 

  

	 	(D)	 Confirm that the Vehicle Identification Number (VIN) on the contract matches the VIN on the title documents.

  

	 	(E)	 Confirm the Receivable is listed on the Schedule of Receivables. 

 

	 	(iv)	 Repossession 

  

	 	(A)	 Observe the contract and confirm it contains provisions that permit the repossession and sale of the Financed
Vehicle upon a default under the Receivable by the Obligor. 

  

	 	(v)	 Payment Schedule Structure 

 

	 	(A)	 Confirm all payments are equivalent with the possible exception of the first and last month’s payments
which may differ by no more than three times the amount of the level monthly payment. 

  

	 	(B)	 Confirm that the number of payments and the amount of payments, together with any first and last month’s
payment (if applicable), equals the Total of the Payments as stated within the Truth and Lending section of the contract. 

  

	 	(vi)	 Contract Rate 

  

	 	(A)	 Review the system screenprint and confirm the Contract Rate matches the Contract Rate in the Schedule of
Receivables. 

  

	 	(vii)	 Dollar Denomination 

  

	 	(A)	 Review the retail contract and confirm the amount is denominated in Dollars. 

 

	 	(viii)	 If steps (i) through (vii) are confirmed, then Test Pass. 

Representation 
 Individual Characteristics
(b): Each Receivable has the following individual characteristics as of the Cut-Off Date: 
  

	 	(i)	 each Receivable is secured by a new or used automobile, minivan or sport utility vehicle;

  

	 	(ii)	 each Receivable has a Contract Rate of no less than 0.00%; 

 

	 	(iii)	 each Receivable had an original term to maturity of not more than 72 months and not less than 12 months and
each Receivable has a remaining term to maturity, as of the Cut-Off Date, of 3 months or more; 

	 	(iv)	 each Receivable has an Outstanding Principal Balance as of the Cut-Off
Date of greater than or equal to $1,000.00; 

  

	 	(v)	 no Receivable has a scheduled maturity date later than July 31, 2027; 

 

	 	(vi)	 no Receivable was more than 30 days past due as of the Cut-Off Date;

  

	 	(vii)	 as of the Cut-Off Date, no Receivable was noted in the records of VCI
or the Servicer as being the subject of any pending bankruptcy or insolvency proceeding; 

  

	 	(viii)	 no Receivable is subject to a force-placed Insurance Policy on the related Financed Vehicle; and

  

	 	(ix)	 each Receivable is a Simple Interest Receivable. 

Documents 
  

	 	(i)	 Retail contract 

  

	 	(ii)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Financed Vehicle 

  

	 	(A)	 Review the contract and confirm that the Financed Vehicle is new or used automobile, minivan or sport utility
vehicle. 

  

	 	(ii)	 Contract Rate 

  

	 	(A)	 Review the system screenprint and confirm the Contract Rate is not less than the minimum allowable Contract
Rate. 

  

	 	(iii)	 Original Term 

  

	 	(A)	 Review the contract and confirm the number of payments (including first and last payments) does not exceed the
maximum allowable contract term of no more than 72 months. 

  

	 	(B)	 Review the system screenprint and confirm that the remaining term of the contract is within the allowable
limits of no less than 12 months. 

  

	 	(C)	 Review the system screenprint and confirm that, as of the Cut-Off Date,
the remaining term to maturity of the contract is no less than 3 months. 

  

	 	(iv)	 Remaining Balance 

  

	 	(A)	 Review the system screenprint and confirm that the unpaid balance as of the
Cut-Off Date is not less than the minimum allowable Outstanding Principal Balance. 

  

	 	(v)	 maturity date 

  

	 	(A)	 Review the system screenprint and confirm that the Receivable has a maturity date on or before July 31,
2027. 

	 	(vi)	 Delinquency Status 

  

	 	(A)	 Review the system screenprint and confirm that the Receivable is not more than 30 days past due as of the Cut-Off Date. 

  

	 	(vii)	 Bankruptcy and Insolvency 

 

	 	(A)	 Verify through the system screenprint that there is no evidence the Receivable is the subject of a bankruptcy
or insolvency proceeding. 

  

	 	(viii)	 Force-Placed Insurance 

 

	 	(A)	 Verify through the system screenprint that the Receivable did not have a force-placed Insurance Policy.

  

	 	(ix)	 Interest Method 

  

	 	(A)	 Review the contract and confirm that the Receivable is amortized using the Simple Interest Method.

  

	 	(x)	 If steps (i) through (ix) are confirmed, then Test Pass. 

Representation 

Compliance with Law (c): The Receivable complied, at the time it was originated or made, in all material respects with all
requirements of law in effect at that time and applicable to such Receivable. 
 Documents 

 

	 	(i)	 Retail contract 

  

	 	(ii)	 List of approved contract forms 

 

	 	(iii)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Observe the contract and confirm the form number and revision date are on the list of approved contract Forms.

  

	 	(ii)	 Confirm the following disclosures are included in the contract: 

 

	 	(A)	 Prepayment disclosure 

 

	 	(B)	 Late payment policy including the late charge amount (or calculation) 

 

	 	(C)	 Security interest disclosure 

 

	 	(D)	 Contract reference 

  

	 	(E)	 Insurance requirements 

 

	 	(iii)	 Review the system screenprint and confirm that there is no evidence of any judgment against VCI indicating that
the contract was originated in violation of applicable law. 

	 	(iv)	 Review the system screenprint and confirm that there is no evidence of any Obligor(s) alleging non-compliance. 

  

	 	(v)	 If steps (i) through (iv) are confirmed, then Test Pass. 

Representation 
 Binding
Obligation (d): The Receivable constitutes the legal and binding payment obligation in writing of the Obligor, enforceable by the holder thereof in all material respects, subject as to enforcement, to applicable bankruptcy, insolvency,
reorganization, liquidation or other laws and equitable principles, consumer protection laws and the Servicemembers Civil Relief Act. 
 Documents

  

	 	(i)	 Retail contract 

  

	 	(ii)	 List of approved forms 

Procedures to be Performed 
  

	 	(i)	 Confirm that the contract form number and revision date are on the list of approved contract forms.

  

	 	(ii)	 Confirm that the Obligor(s) signed the contract. 

 

	 	(iii)	 If steps (i) and (ii) are confirmed, then Test Pass. 

Representation 
 Receivable
in Force (e): As of the Cut-Off Date, neither VCI’s nor the Servicer’s records related to the Receivable indicate that the Receivable has been satisfied, subordinated or rescinded or that the
related Financed Vehicle been released from the lien granted by the Receivable in whole or in part. 
 Documents 

 

	 	(i)	 Title documents 

  

	 	(ii)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Confirm there is no indication within the title documents or the system screenprint that the Receivable was
satisfied. 

  

	 	(ii)	 Confirm there is no indication within the title documents or the system screenprint that the Receivable was
subordinated or rescinded. 

  

	 	(iii)	 Confirm there is no indication within the title documents or the system screenprint that the Financed Vehicle
has been released from the Lien in whole or in part. 

  

	 	(iv)	 Confirm that the Receivable is noted as “active” within the system screenprint.

	 	(v)	 If steps (i) through (iv) are confirmed, then Test Pass. 

Representation 
 No Default
(f): Except for payment delinquencies continuing for a period of not more than 30 days as of the Cut-Off Date, the records of the Servicer did not disclose that any default, breach, violation or event
permitting acceleration under the terms of the Receivable existed as of the Cut-Off Date or that any continuing condition that with notice or lapse of time, or both, would constitute a default, breach,
violation or event permitting acceleration under the terms of the Receivable as of the Cut-Off Date. 

Documents 
  

	 	(i)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Observe the system screenprint and confirm there is no indication of a default, breach, violation or event that
would permit acceleration under the terms of the Receivable except for payment default within 30 days of the Cut-Off Date. 

 

	 	(ii)	 Confirm that no continuing condition (other than payment delinquencies continuing for a period of not more than
30 days as of the Cut-Off Date) would constitute a default, breach, violation or event permitting acceleration under the terms of the Receivable. 

 

	 	(iii)	 If steps (i) and (ii) are confirmed, then Test Pass. 

Representation 
 Insurance
(g): The Receivable requires the Obligor thereunder to insure the Financed Vehicle under a physical damage insurance policy. 
 Documents

  

	 	(i)	 Retail contract 

Procedures to be Performed 
  

	 	(i)	 Confirm the contract contains language that requires the Obligor(s) to obtain and maintain physical damage
insurance covering the Financed Vehicle. 

  

	 	(ii)	 If step (i) is confirmed, then Test Pass. 

Representation 
 No
Government Obligor (h): The Obligor on the Receivable is not listed on VCI’s records as the United States of America or any state thereof or any local government, or any agency, department, political subdivision or instrumentality of
the United States of America or any state thereof or any local government. 
 Documents 

 

	 	(i)	 Retail contract. 

 Procedures to be Performed 

 

	 	(i)	 Confirm the Buyer section of the contract includes the name of a natural person. 

 

	 	(ii)	 If the Buyer section of the contract does not report a natural person’s name, confirm internet search
results show no indication the Buyer is the United States of America or any State, or any agency, department or instrumentality of the United States of America or any State. 

 

	 	(iii)	 If step (i) or (ii) is confirmed, then Test Pass. 

Representation 
 Assignment
(i): The terms of the Receivable do not prohibit the sale, transfer or assignment of such Receivable or the grant of a security interest in such Receivable under the Indenture. 

Documents 
  

	 	(i)	 Retail contract 

  

	 	(ii)	 List of approved forms 

Procedures to be Performed 
  

	 	(i)	 Confirm that the contract form number and revision date are included on the list of approved forms.

  

	 	(ii)	 Confirm that the contract does not contain language that limits the sale or transfer of the Receivable.

  

	 	(iii)	 If (i) and (ii) are confirmed, then Test Pass. 

Representation 
 Good Title
(j): Immediately prior to the transfers and assignments herein contemplated, VCI had good and marketable title to each Receivable free and clear of all Liens (except Permitted Liens and any Lien that will be released prior to the assignment
of such Receivable hereunder), and, immediately upon the transfer thereof to the Purchaser, the Purchaser will have good and marketable title to each Receivable, free and clear of all Liens except Permitted Liens. 

Documents 
  

	 	(i)	 Retail contract 

  

	 	(ii)	 Title documents 

Procedures to be Performed 
  

	 	(i)	 Review the contract and confirm that the Receivable has not been assigned to any party other than VCI (or an
acceptable variation of the name). 

  

	 	(ii)	 Observe the title documents and confirm they report VCI, or an acceptable variation of its name, as the first
lien holder. 

	 	(iii)	 If steps (i) and (ii) are confirmed, then Test Pass. 

Representation 
 Receivable
Files (k): There is only one original executed copy of each “tangible record” constituting or forming a part of such Receivable that is tangible chattel paper and a single “authoritative copy” (as such term is used in Section 9-105 of the UCC) of each electronic record constituting or forming a part of such Receivable that is electronic chattel paper. The Receivable Files that constitute or evidence such
Receivable do not have any marks or notations indicating that the Receivable has been pledged, assigned or otherwise conveyed by VCI to any Person other than to a party to the Transaction Documents. 

Documents 
  

	 	(i)	 Retail contract 

Procedures to be Performed 
  

	 	(i)	 Confirm there is a signature of the appropriate Obligor(s) on the contract. 

 

	 	(ii)	 Confirm that the contract either constitutes an electronically authenticated original, or is marked
“Authoritative Copy.” 

  

	 	(iii)	 Confirm no marks or notations on contract indicating that it has been pledged, assigned or otherwise conveyed
to any Person other than a party to the Transaction Documents. 

  

	 	(iv)	 If steps (i) through (iii) are confirmed, then Test Pass. 

Representation 
 No Defenses
(l): VCI’s and the Servicer’s FiServ electronic data warehouse containing records related to the Receivables do not reflect any right of rescission, set-off, counterclaim or defense, or of
the same being asserted or threatened, in writing by any Obligor with respect to any Receivable. 
 Documents 

 

	 	(i)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Review the system screenprint and confirm there is no evidence of litigation or other attorney involvement.

  

	 	(ii)	 Review the system screenprint and confirm that there is no evidence that the Receivable is subject to
recission, set-off, counterclaim or defense that would cause the Receivable to become invalid. 

If steps (i) and (ii) are confirmed, then Test Pass. 

 Representation 

No Repossession (m): As of the Cut-Off Date, no Financed Vehicle shall have been
repossessed. 
 Documents 
  

	 	(i)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Review the system screenprint and confirm the Receivable was not held in repossession as of the Cut-Off Date. 

 If step (i) is confirmed, then Test Pass.ex_314809.htm

 

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT ("Agreement") is made and entered into as of December 7, 2021 ("Effective Date"), by and among First Northwest Bancorp (the "Company"), the Company’s wholly owned subsidiary First Fed Bank (the "Bank," and together with the Company referred to as "Employer"), and Matt Deines (hereinafter referred to as "Executive"). This Agreement supersedes and replaces any and all previous employment agreements between the parties, including, without limitation, the Employment Agreement between Executive and Employer dated August 1, 2019 (the “Prior Agreement”).

 

WITNESSETH:

 

WHEREAS, Employer desires to employ Executive in the capacity hereinafter stated and Executive desires to continue in the employ of Employer in such capacity, for the period and on the terms and conditions set forth herein:

 

NOW, THEREFORE, in consideration of the promises and of the mutual covenants and conditions herein contained, the parties hereto, intending to be legally bound, do hereby agree as follows:

 

1.         EMPLOYMENT DUTIES AND AUTHORITY

 

The Company and the Bank shall each employ Executive as its President and Chief Executive Officer, and Executive shall accept such employment. If elected, Executive shall also serve as a member of the Board of Directors of the Company and a member of the Board of Directors of the Bank for no additional compensation. Executive agrees to perform the duties that are customarily performed by the President and Chief Executive Officer of a bank holding company and a state-chartered banking institution and accepts all other duties described herein or as prescribed by the Employer's Boards of Directors (the "Board") and agrees to discharge the same faithfully and to the best of his ability and the highest and best standards of the banking industry, in accordance with the policies of the Employer's Articles of Incorporation, Bylaws, policies and procedures. Executive shall devote his full business time and attention to the business and affairs of Employer for which he is employed and shall perform the duties thereof to the best of his ability. Except as permitted by the prior written consent of the Employer's Board, Executive shall not directly or indirectly render any services of a business, commercial or professional nature to any other person, firm or corporation, whether for compensation or otherwise, which are in conflict with Employer’s interests. Executive shall have such responsibility and duties and such authority to transact business on behalf of Employer as are customarily incident to the office of President and Chief Executive Officer of a bank holding company and a state-chartered banking institution.

 

-1-

 

 

 

2.     TERM

 

Employer hereby employs Executive and Executive hereby accepts employment with Employer for the period of three years (the "Term") commencing the Effective Date, with such Term being subject to prior termination as herein provided; provided, that, on such third anniversary of the Effective Date, at its option, Employer may extend the Term for a period of one year, upon the same terms and conditions, by written notice to Executive not less than 30 days prior to the end of the Term.

 

Where used herein, "Term" shall refer to the entire period of employment of Executive by Employer, whether for the period provided above, or whether terminated earlier as hereinafter provided, or extended as provided above.

 

3.     EXECUTIVE COMPENSATION

 

(a)    Base Salary. Employer agrees to pay Executive a base salary of FOUR HUNDRED FIFTY THOUSAND DOLLARS ($450,000.00) per year beginning on the Effective Date. Employer's Board or the Compensation Committee of the Board (the “Compensation Committee”) shall in its sole and absolute discretion determine any increases in Executive's base salary annually following an annual performance evaluation. Executive's salary shall be paid in accordance with Employer’s standard payroll practices. Employer shall deduct therefrom all taxes which may be required to be deducted or withheld under any provision of the law (including, but not limited to, social security payments and income tax withholding) now in effect or which may become effective anytime during the term of this Agreement.

 

(b)    Annual Bonus. Executive will be eligible for an incentive bonus as a percentage of Executive's base salary and as authorized and declared by the Board or the Compensation Committee for executive officers (“Annual Bonus”). Payments of Annual Bonus provided for under this Agreement must be paid no later than seventy-five (75) days after the end of the year in which the Executive obtains a legally binding right to those payments, or such other time that still qualifies the payment as a "short-term deferral" under Section 409A of the Internal Revenue Code (the "Code"). Executive will also be entitled to participate in an equitable manner with all other executive officers of Employer in any performance-based and discretionary bonuses that are authorized and declared by the Board or Compensation Committee for executive officers.

 

-2-

 

 

(c)    Equity Awards. The Executive will be eligible to receive equity incentive awards under the Employer's equity incentive plan, as it may be amended from time to time, or any successor plan. Except as otherwise provided herein, each such award shall be subject to the terms of the Employer's equity incentive program under which it is granted.

 

(d)    Vacation and Sick Leave. Executive is entitled to (A) annual paid vacation in accordance with the policies established by the Board or the Compensation Committee for executive officers, and (B) voluntary leaves of absence, with or without pay, from time to time at the times and upon the conditions as the Board and the Compensation Committee may determine in their discretion. Executive will be paid for all accrued unused vacation upon termination of employment. In addition, Executive is entitled to seven (7) days of annual sick leave. Unused sick leave may be accumulated until retirement or separation (without limitation). After completing five (5) full years of service, Executive will be paid for one-half of the unused sick leave, not to exceed two hundred forty (240) hours, upon termination of employment. Executive will not receive any additional compensation from Employer for unused sick leave, except to the extent authorized by the Board or the Compensation Committee in writing. Payments of accrued vacation pay or unused sick leave will be made as soon as reasonably and administratively practicable and as required by applicable law following Executive's termination of employment.

 

(e)    Employee Benefits. Executive shall be entitled to participate in any and all other employee benefits and plans that may be developed and adopted by Employer and in which Executive is eligible to participate under the terms of such plans, subject to the Employer's right to amend or terminate such plans.

 

(f)    Fringe Benefits and Perquisites. Employer agrees to reimburse Executive for all ordinary and customary expenses for business-related entertainment, meals, travel, cellular phone, and incidental business expense in accordance with Employer's policies. Reasonable costs incurred for professional education, publications, seminars, meetings and special social entertainment shall also be reimbursed in accordance with Employer's policies.

 

-3-

 

 

4.     INSURANCE

 

Employer agrees to provide Executive with health and life insurance benefits that are now or may hereinafter be in effect for all other full-time employees subject to the eligibility requirements of the plans, subject to Employer's right to amend or terminate such benefits. Employer may also obtain a "key-man" life insurance policy on the life of Executive which shall be a general asset of the Employer and to which Executive and the Executive's beneficiary will have no preferred or secured claim.

 

5.     TERMINATION

 

Employer shall have the right to terminate this Agreement for any of the reasons specified in (a) and (b) below, such reasons constituting "Cause," by serving written notice upon Executive. Employer shall have the right to terminate this Agreement for any of the reasons specified in (c) and (d) below by serving written notice upon Executive, his conservator, or his estate, as the case may be. Executive shall have the right to terminate this Agreement for any of the reasons specified in (e) below by serving written notice upon Employer:

 

(a)    Embezzlement, willful misconduct, gross negligence, dishonesty, or other fraudulent acts involving Employer or Employer's business operations or in the performance of Executive's duties under this Agreement, including but not limited to Executive's refusal to comply with legal directives of the Board. A material breach of Executive's fiduciary duties to Employer if such breach has not been remedied, or is not being remedied, to Employer's reasonable satisfaction within 30 days after written notice, including a detailed description of such breach, has been delivered to Executive. Executive’s material breach of Section 9 or any confidentiality policy of Employer;

 

(b)    An act or omission that materially injures Employer’s reputation, business affairs, or financial condition, if such injury could have been reasonably avoided by Executive, including but not limited to Executive’s conviction of or a plea of no contest or nolo contendere to a felony or crime involving dishonesty or moral turpitude;

 

(c)    Physical or mental disability rendering Executive incapable of performing the essential functions of his position, with or without reasonable accommodation; provided, however, that Executive shall, if medically necessary, be entitled to a leave of absence for a consecutive period of 180 days, during which time Executive shall continue to receive his base salary and other benefits, once his accrued sick leave has first been exhausted. If applicable state and federal law require an additional leave of absence beyond the 180 days, Employer shall provide such leave, but Executive shall not be entitled to receive his base salary or any other benefits during such time, except for benefits provided under any long-term disability policy of the Employer as may be in effect from time to time;

 

-4-

 

 

(d)    A determination by Employer's Board, in its sole and absolute discretion and documented in a Board resolution, to terminate the employment of Executive without Cause for any reason or for no reason.

 

(e)    "Good Reason," which shall mean the occurrence of any of the following, in each case, during the Term without the Executive's written consent:

 

(i)      a material reduction in the Executive's base salary;

 

(ii)     a relocation of the Executive's principal place of employment by more than 35 miles;

 

(iii)    a material adverse change in the Executive's authority, duties, or responsibilities (other than temporarily while the Executive is physically or mentally incapacitated or as required by applicable law);

 

provided, however, that Good Reason shall only be deemed to have occurred if: (A) within 90 days after the initial existence of the circumstances constituting Good Reason, Executive provides the Employer with a written notice describing such circumstances, (B) the Employer fails to cure the circumstances within 30 days after the Employer receives Executive's notice, and (C) Executive terminates his employment with the Employer and all affiliates of the Employer within 90 days of the date of Executive's initial notice.

 

In the event this Agreement is terminated for any of the reasons specified above, Executive shall be deemed to have resigned from positions that the Executive holds as an officer or member of the Board (or a committee thereof) of the Employer or any of its affiliates immediately.

 

-5-

 

 

6.     SEVERANCE BENEFITS

 

In the event this Agreement is terminated by Employer for Cause, as specified in paragraphs (a) or (b) of Section 5 above, by Executive for any reason other than as specified in paragraph (e) of Section 5, or by reason of Executive’s death, Executive shall not be entitled to any severance pay. In the event this Agreement is terminated for any reason specified in paragraphs (d) or (e) of Section 5 above, Executive shall be entitled to severance pay in an amount equal to two times the sum of (A) Executive’s current annual base salary and (B) the average of the Annual Bonus paid to Executive for services during the preceding three calendar years (or the Executive's period of employment, if less than three years), calculated as of the date of the Executive's termination, to be paid in one lump sum.

 

In the case of termination in (d) or (e) of Section 5 above, the Employer will also make a lump-sum payment to Executive within 60 days of Executive's termination of employment in an amount equal to the amount necessary to pay Executive's COBRA premiums for continuation of group health insurance coverage for 12 months based on such premiums in effect on the date of Executive's termination; provided, that Executive shall not be obligated to use such lump-sum payment exclusively for payment of COBRA premiums.

 

The benefits referenced above are collectively referred to herein as "Severance." Executive acknowledges and agrees that any Severance provided upon termination is in lieu of all damages, payments and liabilities on account of the early termination of this Agreement and is the sole and exclusive remedy for Executive and shall only be paid, within 60 days after his termination of employment with Employer, subject to Executive's execution and delivery to Employer, within 45 days after termination, of a complete release of all claims Executive may have against the Employer, its officers, directors, agents, employees, predecessors, successors, parents, subsidiaries, and affiliates. If the 60-day period referred to above begins in one calendar year and ends in the following calendar year, then the payment shall be made in the latter calendar year.

 

If upon termination of employment Executive chooses to arbitrate any claims pursuant to Section 15, Executive shall be deemed to have waived Executive's right, if any, to Severance.

 

Termination of the Executive's employment shall not be deemed to be for Cause, as specified in paragraphs (a) or (b) of Section 5 above, unless and until the Board delivers to the Executive a written notice finding that the Executive has engaged in the conduct described in any of paragraphs (a) or (b) Section 5 above. Executive shall give 90 days' prior notice, in writing, to Employer in the event Executive resigns or voluntarily terminates employment.

 

-6-

 

 

7.     CHANGE IN CONTROL BENEFITS

 

In the event there is (i) a Change in Control, as defined below, or (ii) any party announces or is required by law to announce a prospective Change in Control, and the Executive's employment hereunder is terminated by the Executive for Good Reason as specified in paragraph (e) of Section 5 or by the Employer without Cause as specified in paragraph (d) of Section 5 within 18 months following the later of (A) the announcement or the date of required announcement of the prospective Change in Control or (B) the Change in Control, the Executive shall be entitled to be paid, in a single lump sum, severance (“CIC Severance”) equal to the sum of (1) Executive’s current annual base salary multiplied by 2.99, (2) the average of the Annual Bonus paid to Executive for services during the preceding three calendar years (or the Executive's period of employment, if less than three years), (3) a prorated Annual Bonus for the current year, and (4) an amount equal to the amount necessary to pay Executive's COBRA premiums for continuation of group health insurance coverage for 12 months based on such premiums in effect on the date of Executive's termination. Executive acknowledges and agrees that the CIC Severance is in lieu of all damages, payments and liabilities on account of the early termination of this Agreement (including, without limitation, Severance under Section 6 of this Agreement) and is the sole and exclusive remedy for Executive, and shall only be paid, within 60 days after his separation from service with Employer, subject to Executive's execution and delivery to Employer, within 45 days of termination, of a complete release of all claims Executive may have against the Employer, its officers, directors, agents, employees, predecessors, successors, parents, subsidiaries, and affiliates. If the 60-day period referred to above begins in one calendar year and ends in the following calendar year, then the payment shall be made in the latter calendar year. If upon termination of employment Executive chooses to arbitrate any claims pursuant to Section 15, Executive shall be deemed to have waived Executive's right, if any, to CIC Severance under this Section 7. Executive shall give 90 days' prior notice, in writing, to Employer in the event Executive resigns or voluntarily terminates employment.

 

"Change in Control" means a change in the ownership or effective control or in the ownership of a substantial portion of the assets of the Bank or Company, within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"); provided, however that (i) an internal reorganization of Employer or (ii) the placement of the Bank into receivership or conservatorship by the Federal Deposit Insurance Corporation ("FDIC") shall not constitute a "Change in Control."

 

-7-

 

 

Notwithstanding the above, payments under a change in control related to this agreement shall be paid within any limits and subject to any approvals that may be imposed by the FDIC for "parachute payments" under applicable provisions of 12 C.F.R. 359.

 

(a)    Excess Parachute Payment. If any of the payments or benefits received or to be received by the Executive (including, without limitation, any payment or benefits received in connection with a Change in Control or the Executive's termination of employment, whether pursuant to the terms of this Agreement or any other plan, arrangement, or agreement or otherwise) (all such payments collectively referred to herein as the "280G Payments") constitute "parachute payments" within the meaning of Section 280G of the Code and would, but for this Section 7(a), be subject to the excise tax imposed under Section 4999 of the Code (the "Excise Tax"), then such 280G Payments shall be reduced in a manner determined by the Employer (by the minimum possible amounts) that is consistent with the requirements of Section 409A until no amount payable to the Executive will be subject to the Excise Tax. If two economically equivalent amounts are subject to reduction but are payable at different times, the amounts shall be reduced (but not below zero) on a pro rata basis.

 

8.     RESTRICTIVE COVENANTS.

 

(a)    Noncompetition. Executive agrees that, during Executive's employment with Employer, and for a period of one year thereafter (the "Noncompetition Period"), Executive will not directly or indirectly become interested in, as a founder, organizer, principal shareholder, director, officer, or employee of or consultant to any bank, savings bank, savings and loan association, credit union, or similar financial institution or holding company of such an entity, now existing or organized hereafter, that competes or may compete with Employer, including any successor, within any county in which Employer operates a full-service branch office or lending center. Executive will not be deemed a "principal shareholder" unless (i) Executive's investment in such institution exceeds three percent (3%) of the institution's outstanding voting securities or (ii) Executive is active in the organization, management, or affairs of the institution. The provisions restricting competition by Executive may be waived by written action of the Board.

 

-8-

 

 

(b)    Noninterference. During the Noncompetition Period, Executive shall not directly or indirectly (i) solicit or attempt to solicit any employee of Employer to leave the employ of Employer, or in any way interfere with the relationship between Employer or any other employee of Employer, (ii) solicit or attempt to solicit any customers or potential customers whom Employer actively solicited at any time during the 12 month period before Executive's date of termination (the "Customers"), including but not limited to all successors, owners, directors, partners, and management personnel of such Customers, to cease doing business with Employer or to otherwise divert the Customers' business from Employer, or (iii) solicit or attempt to solicit any supplier, licensee, or other business associate of Employer to cease doing business with Employer.

 

(c)    Interpretation. The parties agree that the terms of Section 8(a) and Section 8(b) (collectively, the "Restrictive Covenants") are reasonable as to both time and scope. The parties additionally agree (i) that the Restrictive Covenants are necessary for the protection of the Employer’s business and goodwill; (ii) that the Restrictive Covenants are not any greater than are reasonably necessary to secure Employer’s business and goodwill; and (iii) that the degree of injury to the public from the loss of the service and skill of Executive or the restrictions placed on Executive's opportunity to make a living with Executive's skills upon enforcement of the Restrictive Covenants does not and will not warrant non-enforcement of them. If an arbitrator, court, or any other administrative body with jurisdiction over a dispute related to this Agreement determines that the Restrictive Covenants are unreasonably broad, the parties hereby authorize and direct the arbitrator, court, or administrative body to narrow them so as to make them reasonable, given all relevant circumstances, and to enforce them. This Section 8 will survive the termination of Executive's employment.

 

(d)    Acknowledgement. The parties acknowledge that the terms of Sections 8(a) through Section (c) are a restatement of the Restrictive Covenants contained in the Prior Agreement and that the provisions of this Agreement, including Executive’s increase in rate of pay and enhanced severance benefits, are additional consideration for the Restrictive Covenants and restatement thereof.

 

-9-

 

 

9.     CONFIDENTIAL INFORMATION AND NONDISCLOSURE

 

(a)    Confidential Information. Employer has and will develop and own certain Confidential Information, which has a great value in its business. Employer also has and will have access to Confidential Information of its Customers.

 

"Customers" shall mean any persons or entities for whom Employer performs services or from whom Employer obtains information. Confidential Information includes information disclosed to Executive during the course of his employment and information developed or learned by Executive during the course of his employment.

 

Confidential Information is broadly defined and includes all information which has or could have commercial value or other utility in Employer's business or the businesses of Employer's Customers. Confidential Information also includes all information which could be detrimental to the interests of Employer or its Customers if it were disclosed.

 

By example and without limitation, Confidential Information includes all information concerning loan information, Customer data, including but not limited to Customer and supplier identities, Customer characteristics or agreements and Customer lists, applicant data, employment categories, job classifications, employment histories, job analyses and validations, preferences, credit history, agreements, and any personally identifiable information related to Customers; any information provided to Executive by a Customer, including but not limited to electronic information, documents, software, and trade secrets; historical sales information; advertising and marketing materials and strategies; financial information related to Employer, Customers, Customer's employees or any other party; labor relations strategies; research and development strategies and results, including new materials research; pending projects and proposals; production processes; scientific or technological data, formulae and prototypes; employee data; pricing and product information; computer data information; inventory levels and products; supplier information and data; testing techniques; processes; formulas; trade secrets; inventions; discoveries; improvements; specifications; data, know-how, and formats; marketing plans; pending projects and proposals; business plans; computer processes; computer programs and codes; technological data; strategies; forecasts; budgets; and projections.

 

-10-

 

 

(b)    Protection of Confidential Information. Executive agrees that at all times during and after his employment by Employer, Executive will keep confidential and not disclose to any third party or make any use of the Confidential Information of Employer or its Customers, except for the benefit of Employer or its Customers and in the course of his employment. In the event Executive is required by law to disclose such information described in this paragraph, Executive will provide Employer and its legal counsel with immediate notice of such request so that Employer may consider seeking a protective order. For purposes of this Agreement, the disclosure of any Confidential Information, at any time except as required by law, shall be considered to be "unfair competition." Executive also agrees not to remove or permit the removal of Confidential Information from Employer's place of business without the express written authorization of an officer (other than himself) of Employer or its authorized representative. Executive acknowledges that he is aware that the unauthorized disclosure of Confidential Information of Employer or its Customers may be highly prejudicial to their interests, an invasion of privacy, and an improper disclosure of trade secrets and financial information in violation of state and federal law.

 

(c)    Return of Property. In the event Executive's employment with Employer is terminated (voluntarily or otherwise), Executive agrees to inform Employer of all Employer property, documents and other data relating to his employment which is in his possession and control and to deliver promptly all such property, documents and data to Employer.

 

(d)    Sanctions for Unauthorized Taking of Trade Secrets. Executive understands that taking of Employer's trade secrets is a crime and could also result in civil liability under the Washington Trade Secrets Act and that willful misappropriation may result in an award against Executive of double the amount of the Employer's damages and Employer's attorney fees for collecting such damages.

 

(e)    Notice of Immunity. Notwithstanding any other provision of this Agreement:

 

(i)    The Executive will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that: (A) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (2) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed under seal in a lawsuit or other proceeding.

 

(ii)    If the Executive files a lawsuit for retaliation by the Employer for reporting a suspected violation of law, the Executive may disclose the Employer's trade secrets to the Executive's attorney and use the trade secret information in the court proceeding if the Executive: (A) files any document containing trade secrets under seal; and (B) does not disclose trade secrets except pursuant to court order.

 

-11-

 

 

(f)    Injunctive Relief. Executive acknowledges that breach of this section may cause Employer irreparable harm for which money is inadequate compensation. Executive therefore agrees that Employer will be entitled to injunctive relief consistent with Section 15 below, without the necessity of posting a bond, to enforce this section and this Agreement, in addition to damages and other available remedies, and Executive consents to such injunctive relief in accordance with Section 15 below.

 

10.     DISCOVERIES AND INVENTIONS; WORK MADE FOR HIRE

 

Executive agrees that upon conception and/or development of any discovery, invention, improvement, software, writing or other material or design that: (i) relates to the business of Employer, or (ii) relates to Employer’s actual or demonstrably anticipated research or development, or (iii) results from any work performed by Executive for Employer, Executive will assign to Employer the entire right, title and interest in and to any such discovery, invention, improvement, software, writing or other material or design. Executive has no obligation to assign any discovery, invention, improvement, software, writing or other material or design that Executive conceives and/or develops entirely on Executive’s own time without using Employer’s equipment, supplies, facilities, or trade secret information unless the discovery, invention, improvement, software, writing or other material or design: (A) relates to the business of Employer, or (B) relates to Employer’s actual or demonstrably anticipated research or development, or (C) results from any work performed by Executive for Employer. Executive agrees that any discovery, invention, improvement, software, writing or other material or design that relates to the business of Employer or relates to Employer’s actual or demonstrably anticipated research or development which is conceived or suggested by Executive, either solely or jointly with others, within one year following termination of the Executive’s employment with Employer shall be presumed to have been so made, conceived or suggested in the course of such employment with the use of Employer’s equipment, supplies, facilities, and/or trade secrets.

 

-12-

 

 

In order to determine the rights of Executive and Employer in any discovery, invention, improvement, software, writing or other material, and to insure the protection of the same, Executive agrees that during Executive’s employment, and for one year after termination of Executive’s employment with Employer, Executive will disclose immediately and fully to Employer any discovery, invention, improvement, software, writing or other material or design conceived, made or developed by Executive solely or jointly with others. Employer agrees to keep any such disclosures confidential. Executive also agrees to record descriptions of all work in the manner directed by Employer and agrees that all such records and copies, samples and experimental materials will be the exclusive property of Employer. Executive agrees that at the request of and without charge to Employer, but at Employer’s expense, Executive will execute a written assignment of the discovery, invention, improvement, software, writing or other material or design to Employer and will assign to Employer any application for letters patent or for trademark registration made thereon, and to any common-law or statutory copyright therein; and that Executive will do whatever may be necessary or desirable to enable Employer to secure any patent, trademark, copyright, or other property right therein in the United States and in any foreign country, and any division, renewal, continuation, or continuation in part thereof, or for any reissue of any patent issued thereon. In the event Employer is unable, after reasonable effort, and in any event after 10 business days, to secure Executive’s signature on a written assignment to Employer of any application for letters patent or to any common-law or statutory copyright or other property right therein, whether because of the Executive’s physical or mental incapacity or for any other reason whatsoever, the Executive irrevocably designates and appoints the Corporate Secretary of Employer as Executive’s attorney-in-fact to act on Executive’s behalf to execute and file any such application and to do all other lawfully permitted acts to further the prosecution and issuance of such letters patent, copyright or trademark.

 

Executive acknowledges that, to the extent permitted by law, all work papers, reports, documentation, drawings, photographs, negatives, tapes and masters therefor, prototypes and other materials (hereinafter, “items”) (including, without limitation, any and all such items generated and maintained on any form of electronic media) generated by Executive during Executive’s employment with Employer shall be considered a “work made for hire” and that ownership of any and all copyrights in any and all such items shall belong to Employer. The item will recognize Employer as the copyright owner, will contain all proper copyright notices, e.g., “(creation date) First Northwest Bancorp, All Rights Reserved,” and will be in condition to be registered or otherwise placed in compliance with registration or other statutory requirements throughout the world.

 

-13-

 

 

11.     INDEMNIFICATION

 

To the maximum extent permitted under applicable law and the Company's and the Bank's bylaws (as may be amended from time to time), Employer shall indemnify and hold harmless Executive in the event that the Executive is made a party or threatened to be made a party to any action, suit, or proceeding, whether civil, criminal, administrative, or investigative (a "Proceeding"), other than any Proceeding initiated by the Executive or the Employer related to any contest or dispute between the Executive and the Employer or any of its affiliates with respect to this Agreement or the Executive's employment hereunder, by reason of the fact that the Executive is or was a director or officer of the Company or the Bank, or any affiliate of the Company or the Bank, from and against any liabilities, costs, claims, expenses, judgments, fines, or settlements, including all costs and expenses incurred in defense of any Proceeding (including attorney fees). Costs and expenses incurred by the Executive in defense of such Proceeding (including attorneys' fees and expenses) shall be paid by the Employer in advance of the final disposition of such litigation upon receipt by the Employer of: (i) a written request for payment; (ii) appropriate documentation evidencing the incurrence, amount, and nature of the costs and expenses for which payment is being sought; and (iii) an undertaking adequate under applicable law made by or on behalf of the Executive to repay the amounts so paid if it shall ultimately be determined that the Executive is not entitled to be indemnified by the Company or the Bank under this Agreement.

 

Employer or any successor to the Employer shall purchase and maintain, at its own expense, directors' and officers' liability insurance providing coverage to the Executive on terms that are no less favorable than the coverage provided to other directors and similarly situated executives of the Employer.

 

12.     CLAWBACK PROVISIONS

 

The Executive agrees that any compensation provided by the Employer to Executive is subject to recoupment or clawback under any applicable clawback or recoupment policy that is generally applicable to the Company's executives, as may be in effect from time to time, or as required by law.

 

-14-

 

 

13.     NOTICES

 

Any notice, request, demand, or other communication required or permitted hereunder shall be deemed to be properly given when personally served in writing, when deposited in the U.S. mail, postage prepaid, or when communicated to a public telegraph company for transmittal, addressed as follows:

 

To Employer:

 

First Northwest Bancorp/First Fed Bank

Attention: Board of Directors

First Fed Bank

105 W Eighth Street

Port Angeles, WA 98362

 

To Executive:

 

Matt Deines

3539 NW 67th St.

Seattle, WA 98177

 

Any party hereto may change its or his address for purposes of this section by giving notice in accordance herewith.

 

14.     BENEFIT OF AGREEMENT

 

This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective executors, administrators, successors and assigns.

 

15.     GOVERNING LAW; ARBITRATION. 

 

This Agreement is made with reference to and is intended to be construed in accordance with the laws of the State of Washington. Any dispute or controversy arising under or in connection with this Agreement must be settled exclusively by arbitration in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator's award in any court having jurisdiction. Notwithstanding the foregoing, the Employer may resort to the Superior Court of Clallam County, Washington, for injunctive and other relief as available if Executive engages in conduct during or after termination of this Agreement that amounts to a violation of Section 8 or Section 9, a violation of the Washington Trade Secrets Act, or interference with the business expectancies of Employer.

 

-15-

 

 

16.     CAPTIONS AND PARAGRAPH HEADINGS

 

Captions and paragraph headings used herein are for convenience only and are not a part of this Agreement and shall not be used in construing it.

 

17.     INVALID PROVISIONS

 

Should any provision of this Agreement for any reason be declared invalid, void, or unenforceable by a court of competent jurisdiction, the validity and binding effect of any remaining portions shall not be affected, and the remaining portions of this Agreement shall remain in full force and effect as if this Agreement had been executed with said provision eliminated.

 

18.     WAIVER. 

 

No waiver of any obligation of any party hereto under this Agreement shall be effective unless in a writing specifying such waiver and executed by the other party. No waiver of any right or remedy of any party hereto under this Agreement shall be effective unless in a writing specifying such waiver and executed by such party. A waiver by any party hereto of any of its rights or remedies under this Agreement on any occasion shall not be a bar to the exercise of the same right or remedy on any subsequent occasion or of any other right or remedy at any time.

 

19.     ENTIRE AGREEMENT

 

This Agreement contains the entire Agreement of the parties and, in consideration for the Employer to enter into this Agreement, supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of Executive by Employer, except to the extent that it is contemplated that Executive and Employer may enter into one or more agreements relating to equity-based compensation. Each party to this Agreement acknowledges that no representations, promises, or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement shall be valid or binding. This Agreement may not be modified or amended by oral agreement, but only by an agreement in writing signed by the Employer and Executive.

 

-16-

 

 

20.     IRC SECTION 409A COMPLIANCE

 

The severance payments and other benefits under this Agreement are intended to be exempt from the requirements of Section 409A of the Code by reason of all payments under this Agreement being "short-term deferrals" within the meaning of Treasury Regulation Section 1.409A-1(b)(4). All provisions of this Agreement shall be interpreted in a manner consistent with preserving this exemption. If Executive is a "specified employee" as defined in Section 409A of the Code, and U.S. Treasury regulations promulgated thereunder ("Section 409A Rules"), then any amounts subject to the Section 409A rules that are otherwise required to be paid to him upon his separation from service (as defined in the Section 409A Rules) shall not be paid until the date that is six months after the date of his separation from service or, if earlier, the date of his death. To the extent that this Agreement provides for the reimbursement of specified expenses incurred, such reimbursement will be made in accordance with the provisions of the Agreement (or other applicable plan or policy), but in no event later than the last day of the taxable year following the taxable year in which the expense was incurred. The amount of expenses eligible for reimbursement or in-kind benefits provided by Employer in any taxable year will not affect the amount of expenses or in-kind benefits to be reimbursed or provided in any other year. The term "termination," when used in reference to termination of employment, shall mean "separation from service," as defined in the Section 409A Rules.

 

21.     ATTORNEY FEES AND COSTS

 

In the event of litigation, arbitration or any other action or proceeding between the parties to interpret or enforce this Agreement or any part thereof or otherwise arising out of or relating to this Agreement, the prevailing party shall be entitled to recover its costs related to any such action or proceeding and its reasonable fees of attorneys, accountants and expert witnesses incurred by such party in connection with any such action or proceeding. The prevailing party shall be deemed to be the party which obtains substantially the relief sought by final resolution, compromise or settlement, or as may otherwise be determined by order of a court of competent jurisdiction in the event of litigation, an award or decision of one or more arbitrators in the event of arbitration, or a decision of a comparable official in the event of any other action or proceeding.

 

-17-

 

 

EXECUTIVE AND EMPLOYER AGREE THAT BY ENTERING INTO THIS AGREEMENT, EXECUTIVE AND EMPLOYER KNOWINGLY AND VOLUNTARILY WAIVE THEIR RIGHTS TO A TRIAL BY A JUDGE OR JURY. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT AND HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT.

 

[Signature Page Follows]

 

-18-

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written.

 

	
			EMPLOYER:

			 

			FIRST NORTHWEST BANCORP

			 

			 

			By:  /s/ Stephen E. Oliver                  

			Name: Stephen E. Oliver                   

			Title:  Board Chair                             

				
			 

			 

			FIRST FED BANK

			 

			 

			By:  /s/ Stephen E. Oliver                  

			Name: Stephen E. Oliver                   

			Title:  Board Chair                             

			
	
			 

			EXECUTIVE:

			 

			/s/ Matt Deines                                   

			Matt Deines

				 

 

 

-19-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00337-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00337-of-00352.parquet"}]]