Document:

wise2022

1    EMPLOYMENT AGREEMENT  EMPLOYMENT AGREEMENT executed as of this 27 day of January, 2022  (“Agreement”) among ARROW FINANCIAL CORPORATION, a New York corporation with  its principal place of business at 250 Glen Street, Glens Falls, New York 12801 (“Arrow”), its  wholly-owned subsidiary, GLENS FALLS NATIONAL BANK AND TRUST COMPANY, a  national banking association with its principal place of business at 250 Glen Street, Glens Falls,  New York 12801 (the “Bank” and collectively with Arrow, the “Company”), and ANDREW J.  WISE, residing at 10 Chloe’s Way, Saratoga Springs, New York 12866 (the “Executive”).   The  effective date of this Agreement shall be February 1, 2022 (the “Effective Date”).  Capitalized  terms used herein and not otherwise defined herein shall have the meanings set forth in  Paragraph 11 of this Agreement.  Recitals  WHEREAS, Arrow and the Bank consider the maintenance of a competent and  experienced executive management team to be essential to the long-term success of Arrow and  the Bank; and  WHEREAS, the Executive wishes to continue to serve Arrow and the Bank as part of  such executive management team; and   WHEREAS, in this regard, Arrow and the Bank, on the one hand, and the Executive, on  the other, have determined that it is in the best interests of all of the parties that the Executive  serve as Senior Executive Vice President and Chief Operating Officer of Arrow and Senior  Executive Vice President and Chief Operating Officer of the Bank, pursuant to a written  employment agreement and in order to secure Executive’s services and skills, which are  considered extraordinary, special and unique for its business and the long-term success thereof;  and     WHEREAS, the parties have agreed that this Agreement will supersede and replace any  and all agreements, written or oral, previously in place regarding the employment of the  Executive by either Arrow or the Bank, except for compensatory or employee benefit plans  applicable to employees of Arrow and/or the Bank generally or to certain groups or sub-groups  of employees of which the Executive is a member, and awards or award agreements issued to the  Executive under such plans; and   NOW, THEREFORE, in furtherance of the interests described above and in consideration  of the respective covenants and agreements herein contained, the parties hereto agree as follows:  1. Employment.  Arrow and the Bank will employ the Executive, and the Executive  agrees to be employed by Arrow and the Bank, for the Term of this Agreement, as defined in  Paragraph 2 (such employment, the “Employment”).  Arrow and the Bank agree to employ the  Executive and the Executive agrees to serve as Senior Executive Vice President and Chief  Operating Officer of Arrow and Senior Executive Vice President and Chief Operating Officer of  the Bank, with such duties as are described in Paragraph 3 and subject to the other terms and  conditions of this Agreement.    

 

2    2. Term.  (a) Term.  The term of Employment of the Executive under this Agreement (“Term”)  shall commence on the Effective Date and, unless the Executive becomes a Retired Early  Employee under Paragraph 6 of this Agreement or such Employment is earlier terminated as  provided in Paragraph 7 of this Agreement, shall expire on the last day of the second full year  following the Effective Date.   (b) Annual Review.  On or before each anniversary of the Effective Date of this  Agreement, each of the Arrow Board and the Bank Board, will consider and vote upon a  proposal to extend to the Executive an offer to replace this Agreement with a new employment  agreement (the “Replacement Agreement”) commencing on the date of such anniversary.  The  Replacement Agreement (i) will be for a new term of two (2) years, (ii) will provide for a Base  Salary for the Executive at commencement of the Replacement Agreement at least equal to the  Base Salary of the Executive as of the last day immediately preceding such commencement, (iii)  subject to Paragraph 5(b) hereof, will provide for other benefits having an aggregate value to the  Executive at least equal to the aggregate value of the other benefits provided to the Executive as  of the last day immediately preceding such commencement, and (iv) will contain other terms and  conditions relating to the Executive’s position and duties, place of performance, rights upon a  Change of Control of Arrow and rights in connection with any early Termination of Employment  of the Executive that are, in each such instance, at least as favorable to the Executive as the terms  and conditions relating to such matters under this Agreement, and generally shall be as favorable  to the Executive as is this Agreement, as of the last day immediately preceding such  commencement.  If the Arrow Board and the Bank Board shall determine to offer such a  Replacement Agreement to the Executive and the Executive shall accept, this Agreement shall  terminate at 11:59 p.m. on the day prior to the commencement date of the Replacement  Agreement and the Replacement Agreement shall take effect at 12:00 midnight on such  commencement date.   If, prior to any anniversary of the Effective Date of this Agreement, either the Arrow Board or  the Bank Board shall not have offered a Replacement Agreement to the Executive under the  preceding subparagraph of this Paragraph 2(b) (a “Non-Offer”), or the Executive, having been  offered such a Replacement Agreement, shall not have accepted such Replacement Agreement (a  “Non-Acceptance” and with either such Non-Offer or Non-Acceptance constituting a “Non- Renewal”), this Agreement and the Employment of the Executive hereunder shall nevertheless  continue in full force and effect until the expiration of the Term of this Agreement in accordance  with the terms hereof, and the rights and obligations of each of the parties hereunder, including  the rights and obligations of the parties under this Paragraph 2(b), shall continue unchanged  during the remaining Term of this Agreement, despite such Non-Renewal, except as may be  specifically provided otherwise in this Agreement.   3. Position and Duties.  The Executive shall continue to serve as Senior Executive  Vice President and Chief Operating Officer of Arrow and Senior Executive Vice President and  Chief Operating Officer of the Bank and shall have such duties, responsibilities, and authority as  normally attend such positions or as may reasonably be assigned to the Executive from time to  

 

3    time by the Arrow Board or the Bank Board.  The Executive shall devote substantially all his  working time and efforts to the business and affairs of Arrow and the Bank, provided however,  that the Executive may, with the approval of the Arrow Board and the Bank Board, serve as a  director or officer of any non-competing business or engage in any other activity, including but  not limited to, charitable or community activity, to the extent that such does not inhibit the  performance of his duties hereunder or otherwise violate this Agreement.  4. Place of Performance.  In connection with the Executive's Employment  hereunder, the Executive shall be based at the principal executive offices of Arrow or the Bank,  except for required travel on business.  Arrow or the Bank shall furnish the Executive with office  space, administrative assistance, and such other facilities and services as shall be suitable to the  Executive's position and adequate for the performance of his duties hereunder.  5. Compensation.  (a) Salary.  The base annual salary (“Base Salary”) of the Executive shall be  $325,000, payable by Arrow and/or the Bank in equal bi-weekly installments (i.e., every two  weeks) or at such other intervals as shall constitute the regular payroll practice of Arrow and/or  the Bank.  Such Base Salary shall be effective as of January 1, 2022.  The Executive's Base  Salary may be increased from time to time in accordance with the normal business practices of  Arrow and the Bank, as determined by the Arrow Board and the Bank Board, and, if so  increased, such Base Salary shall not thereafter during the Term be decreased and the obligation  of the Bank or Arrow hereunder to pay the Executive's Base Salary shall thereafter relate to such  increased Base Salary.  Compensation of the Executive by Base Salary payments shall not  prevent the Executive from participating in any other compensation or benefit plan of Arrow or  the Bank in which he is entitled to participate and participation in any such other compensation  or benefit plan shall not in any way limit or reduce the obligation of each of Arrow and the Bank  to pay the Executive's Base Salary hereunder.  (b) Other Benefits.  In addition to the compensation provided for in subparagraph (a)  above, the Executive shall be entitled during the Term (i) to participate in any and all employee  benefit programs or stock purchase programs of Arrow or the Bank now or hereafter in effect  and open to participation by qualifying employees of Arrow or the Bank generally including, but  not limited to, the retirement plan, supplemental retirement plan, employee stock purchase plan  and employee stock ownership plan of Arrow or the Bank, (ii) to participate in employee  incentive plans (cash or equity, annual or long-term incentive) including the Company’s short- term incentive plan under which the Executive will be eligible to receive a cash bonus with the  “Target Bonus” being set at forty percent (40%) of his Base Salary, less all necessary and  required federal, state and local payroll deductions, and (iii) to enjoy certain personal benefits  provided by Arrow or the Bank including, but not limited to:  (i) life insurance on the life of the Executive, at no cost to the Executive,  under a group plan maintained by Arrow;  (ii) disability insurance for the Executive, at no cost to the Executive, under a  group plan maintained by Arrow;  

 

4    (iii) comprehensive medical and dental insurance under a group plan provided  by Arrow, with the Executive to pay only those amounts required to be paid thereunder by  covered employees generally under the cost-sharing arrangements in effect from time to time  under such plan;  (iv) reimbursement in full of all business, travel and entertainment expenses  incurred by the Executive in performing his duties hereunder in accordance with Arrow’s  policies and guidelines regarding the same; and  (v) fully paid vacation during each calendar year in accordance with the  vacation policies of Arrow in effect from time to time.  Neither Arrow nor the Bank shall make any material changes in any of the personal benefits  specified in this Agreement adversely affecting the Executive unless such change occurs  pursuant to a program applicable to all executive officers of Arrow or the Bank, as the case may  be, and the adverse effect on the Executive is not proportionately greater than the adverse effect  of the change on any other executive officer of Arrow or the Bank previously enjoying such  benefit.  Premiums for the above-described insurance programs will be payable in accordance with the  Bank’s regular monthly premium payments applicable to such insurance programs.   Reimbursement of expenses shall be paid not later than the last day of the calendar year  following the calendar year in which the expenses were incurred.  6. Termination of Employment following Change of Control.  (a) Retired Early Employee.  If (i) a Change of Control occurs during the Term  of Employment hereunder, and (ii) within twelve (12) months after such Change of Control,  either (x) Arrow and the Bank deliver to the Executive an advance written notice of Termination  of Employment of Executive without Cause, which such notice shall comply with the  requirements of Paragraph 11(gg) hereof or (y) the Executive delivers to Arrow and the Bank an  advance written notice of a Termination of Employment of Executive for Good Reason, which  such notice shall comply with the requirements of Paragraph 11(ff) hereof then, upon subsequent  effectiveness of such Termination of Employment (either such termination, if effected under this  Paragraph 6(a), a “Termination of Employment of Executive as a Retired Early Employee”), the  Executive (sometimes referred to herein as a “Retired Early Employee”) will, following such a  Termination of Employment, be entitled to receive, subject to the satisfaction of the conditions  specified below in Paragraph 8, upon the effective date of such Termination of Employment,  such payments (in addition to any other payments then receivable by him) as are provided  hereafter in this Paragraph 6.  (b) Cash Payments and Benefits.    (i) Subject to the satisfaction of the conditions specified below in Paragraph  8, in the event of a Termination of Employment of Executive as a Retired Early Employee,  Arrow or the Bank shall, commencing on the applicable payment date specified in Paragraph 8  and continuing throughout the Pay-out Period, make equal monthly payments to the Executive  (which shall not be deemed Base Salary payments) in an amount such that the present value of  

 

5    all such payments, determined as of the date of such Termination of Employment, equals two (2)  times the sum of the Executive’s Base Salary and Target Bonus for the year in which advance  written notice of termination of employment occurs. Subject to Paragraph 8, if at any time during  the Pay-out Period the Arrow Board in its sole discretion shall determine, upon application of the  Retired Early Employee supported by substantial evidence, that the Retired Early Employee has  experienced an unforeseeable emergency, as defined in Code Section 409A and the regulations  thereunder, Arrow or the Bank shall make available to the Retired Early Employee, in one (1)  lump sum payment, an amount up to the amount needed to relieve such unforeseeable emergency  (including taxes reasonably anticipated as a result of such lump sum payment) but not greater  than the present value of all monthly payments remaining to be paid to him in the Pay-out  Period, calculated as of the date of such determination by the Arrow Board, for the purpose of  relieving such unforeseeable emergency to the extent the same has not been or may not be  relieved by (A) reimbursement or compensation by insurance or otherwise, (B) liquidation of the  Retired Early Employee's assets (to the extent such liquidation would not itself cause severe  financial hardship), or (C) distributions from other benefit plans.  If (I) the lump sum amount  thus made available is less than (II) the present value of all such remaining monthly payments,  Arrow or the Bank shall continue to pay to the Retired Early Employee monthly payments for  the duration of the Pay-out Period, but from such date forward such monthly payments will be in  a reduced amount such that the present value of all such reduced payments, calculated as of the  date of such determination, will equal the difference between (II) and (I), above.  The Retired  Early Employee may elect to waive any or all payments due him under this subparagraph.  (ii) In the event of  a Termination of Employment of Executive as a Retired  Early Employee, Arrow or the Bank shall provide the Executive during the Pay-out Period with   medical, dental and life insurance coverage maintained by Arrow that is generally equivalent to  the coverage held by the Executive (including dependent coverage, as applicable) immediately  prior to such Termination of Employment, subject to general changes in such group plan  offerings by Arrow or the Bank from time to time during the Pay-out Period and further subject  to payment by the Executive of any amounts which would be required to be paid by the  Executive if the Executive was then employed by Arrow or the Bank under the cost-sharing  arrangements then in effect from time to time, which cost-sharing amounts may be deducted  from the cash payments required to be made by Arrow or the Bank under Paragraph 6(b)(i)  above.  The cost of any such medical and dental coverage which is self-funded by Arrow or the  Bank will be included in the taxable income of Executive to the extent it is paid directly or  indirectly by Arrow or the Bank.  Notwithstanding the foregoing, Arrow’s and the Bank’s  obligations under this Paragraph 6(b)(ii) shall terminate to the extent that the Executive becomes  eligible for medical,  dental and life insurance coverage from a new employer; provided,  however, that the Executive shall be under no obligation to seek other employment or gainful  pursuit during the Pay-out Period as a result of this Agreement.  (c) Death of Retired Early Employee.  If the Retired Early Employee dies before  receiving all monthly cash payments payable to him as a Retired Early Employee under  Paragraph 6(b)(i) above, the Bank shall pay to the Executive’s spouse, or if the Executive leaves  no spouse, to the estate of the Executive, one (1) lump sum payment in an amount equal to the  present value of all such remaining unpaid monthly payments, determined as of the date of death  of the Executive.  Such amount shall be paid within thirty (30) days of the Executive’s death,  provided that the spouse may not designate the calendar year of payment.  

 

6    (d) Indemnification of Executive.  To the fullest extent permitted under  applicable law, in the event a Change of Control and a Termination of Employment of Executive  as a Retired Early Employee occurs, Arrow and the Bank shall indemnify the Executive for all  legal fees and expenses subsequently incurred by the Executive in seeking to obtain or enforce  any right or benefit provided under this Agreement related to such events, provided, however,  that such right to indemnification will not apply if and to the extent that a court of competent  jurisdiction shall determine that any such fees and expenses have been incurred as a result of the  Executive's bad faith.  Indemnification payments payable hereunder by Arrow and the Bank shall  be made not later than thirty (30) days after a request for payment has been received from the  Executive with such evidence of indemnifiable fees and expenses as Arrow or the Bank may  reasonably request, provided, however, that such indemnification and reimbursement payments  shall not be made later than the last day of the calendar year following the calendar year in which  the expenses were incurred.  (e) No Offset.  Except as is contemplated by Paragraph 6(b)(ii) above, amounts  payable to the Executive as a Retired Early Employee under this Paragraph 6 shall not be subject  to any offset or reduction for (i) any amounts owed or claimed to be owed by the Executive to  Arrow or the Bank or their Affiliates or (ii) any amounts of compensation or income received or  generated by the Executive as a result of any other employment or self-employment of the  Executive during the Pay-out Period.  The Executive shall be under no obligation to seek other  employment or gainful pursuit during the Pay-out Period as a result of this Agreement, and shall  be prohibited from accepting certain other forms of employment and from engaging in certain  other types of business during the Pay-out Period (as well as during certain other post- Termination of Employment periods) as and to the extent specified in Paragraph 9 of this  Agreement.  (f) Allocation.  If the Executive should elect to become a Retired Early  Employee under this Paragraph 6 and as a result of such election should become entitled to  receive certain cash payments during the Pay-out Period as set forth above, Arrow shall  determine, as soon as practicable following its receipt from the Executive of written notice of  such election, the amount, if any, of such future cash payments that may properly be allocated to  the Executive’s future performance of his obligations not to compete with, solicit customers or  employees from, or disparage Arrow or its Affiliates under Paragraph 9 of this Agreement, with  such allocation to be expressed as a single dollar amount equal to the present value determined as  of the date of Termination of Employment, of the amounts of the required future payments thus  allocated.  When thus determined, the dollar amount of this allocation shall be communicated by  Arrow to the Executive.  (g) Excess Parachute Payment.  (i) Anything in this Agreement to the contrary notwithstanding, to the extent  that any Company provided payment, distribution or benefit in favor of the Executive  (within  the meaning of Section 280G of the Code and the regulations thereunder), whether paid or  payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the  “Change of Control Termination Total Payments”), is or will be subject to the excise tax  imposed under Section 4999 of the Code (the “Excise Tax”), then the Change of Control  Termination Total Payments shall be reduced (but not below zero) to the extent that, and only to  

 

7    the extent that, such reduction in the Change of Control Termination Total Payments would  result in the Executive not being subject to the Excise Tax.  Unless the Executive shall have  given prior written notice specifying a different order to the Company to effectuate the  foregoing, the Company shall reduce or eliminate the Change of Control Termination Total  Payments, by first reducing or eliminating the portion of the Change of Control Termination  Total Payments which are payable in cash and then by reducing or eliminating non-cash  payments, in each case in reverse order beginning with payments or benefits which are to be paid  the farthest in time from the date of the Change of Control. Any notice given by the Executive  pursuant to the preceding sentence shall take precedence over the provisions of any other plan,  arrangement or agreement governing the Executive's rights and entitlements to any benefits or  compensation.  (ii) The determination of whether the Change of Control Termination Total  Payments shall be reduced as provided in Paragraph 6(g)(i) above and the amount of such  reduction (the “Section 4999 Determination”) shall be made at the Company's expense by an  accounting firm selected by the Executive from among the six largest accounting firms in the  United States or at the Executive’s expense by an attorney selected by the Executive.  Such  accounting firm or attorney shall provide its Section 4999 Determination, together with detailed  supporting calculations and documentation to the Company and the Executive not later than  thirty (30) days after the effective date of the Termination of Employment of Executive as a  Retired Early Employee.  If such firm or attorney determines that no Excise Tax is payable by  the Executive with respect to the Change of Control Termination Total Payments, it shall furnish  the Executive with an opinion reasonably acceptable to the Executive that no Excise Tax will be  imposed with respect to any such payments and, absent manifest error, such determination shall  be binding, final and conclusive upon the Company and the Executive.  If such firm or attorney  determines that an Excise Tax would be payable, the Company shall have the absolute right to  accept such determination as to the extent of the reduction, if any, pursuant to Paragraph 7(g)(i)  above, or if the Company so chooses, at its sole discretion, to have such determination reviewed  by another accounting firm selected by the Company, at the Company’s expense.  If the  Company’s accounting firm is different from an accounting firm that makes such determination,  and does not agree with such latter accounting firm, a third accounting firm shall be jointly  chosen by the two firms, in which case the determination of such third accounting firm shall be  binding, final and conclusive upon the Company and the Executive.  7. Early Termination of Employment.  In addition to any Termination of  Employment of Executive as a Retired Early Employee under Paragraph 6 of this Agreement, a  Termination of Employment of Executive may occur prior to the normal expiration of the Term  under the circumstances and with the consequences set forth below.  (a) Termination of Employment for Cause.  At any time during the Term of  Employment under this Agreement, and subject to the provisions of this Paragraph 7(a), either  Arrow or the Bank may effect a Termination of Employment of Executive for Cause if and only  if the applicable standards set forth herein are met. Notwithstanding the foregoing, any such  Termination of Employment of Executive for Cause shall not become effective unless and until:   

 

8    (i) reasonable advance notice is given to the Executive in writing setting forth  the “for Cause” reasons Arrow or the Bank intends to effect such Termination of Employment of  Executive for Cause;  (ii) not sooner than thirty (30) days after delivery to the Executive of such  notice, an opportunity is provided for the Executive to be heard before the Arrow Board or the  Bank Board with counsel; and  (iii) after such hearing or opportunity to be heard, written notice of final  Termination of Employment of Executive for Cause is delivered to the Executive, setting forth  the specific reasons therefore, which Termination of Employment shall be effective as of the date  of the delivery of such notice.  Any Termination of Employment of Executive for Cause by Arrow or the Bank (including  delivery of the notice specified in subsection (i), above)  shall require the affirmative vote of at  least two-thirds (2/3) of the entire Arrow Board or the Bank Board. The Executive will not be  entitled to any further compensation for any period subsequent to the effective date of such  Termination of Employment, except for payments, if any, payable in accordance with the then  current plans and policies of Arrow or the Bank.  Any attempted Termination of Employment of  Executive for Cause initiated by Arrow or the Bank under this Paragraph 7(a), by delivery to the  Executive of the advance written notice specified in subsection (i) above, that follows the  initiation of any other attempted Termination of Employment of Executive under any other  provision of this Agreement, by delivery of advance written notice of such earlier attempted  Termination of Employment (any such, an “Earlier Termination”) by the party effecting such  Termination of Employment to the other party or parties, shall be disregarded such that the  Earlier Termination shall govern the procedures applicable to the Termination of Employment of  Executive, the effective time of such Termination of Employment, and the consequences of such  Termination of Employment, including the compensation and other benefits payable to the  Executive as a result thereof, except in each case as may otherwise be required by law, by the  affirmative language of applicable statute, regulation or judicial or administrative order, and not  by implication alone.  (b) Termination of Employment Without Cause.  At any time during the Term of  Employment under this Agreement, either Arrow or the Bank may effect, pursuant to this  Paragraph 7(b), and in accordance with the requirements set forth in Paragraph 11(gg) below, a  Termination of Employment of Executive without Cause, provided, however, that any attempt to  do so under circumstances that would also qualify such Termination of Employment as a  Termination of Employment of Executive without Cause under Paragraph 6(a) of this  Agreement, that is, as a Termination of Employment of Executive without Cause following a  Change in Control that meets the conditions set forth in Paragraph 6(a), will be deemed a  Termination of Employment of Executive without Cause under Paragraph 6(a), and not a  Termination of Employment of Executive without Cause under this Paragraph 7(b).  In the event  of a Termination of Employment of Executive without Cause under this Paragraph 7(b), on the  applicable payment date specified in Paragraph 8, and subject to the satisfaction of the conditions  specified below in Paragraph 8, Arrow or the Bank shall pay to the Executive, and the Executive  shall be entitled to receive, one (1) lump sum payment in a dollar amount equal to the greater of  (i) the total amount of Base Salary payments which would have been payable to the Executive  

 

9    during the period extending from such effective date until the normal expiration date of  Employment under this Agreement as in effect at such time, had there been no early Termination  of Employment of Executive without Cause (and assuming the Executive otherwise would have  remained employed throughout such period and that his Base Salary would have remained  unchanged throughout such period), or (ii) an amount equal to one hundred percent (100%) of  the current Base Salary of the Executive on the effective date of such Termination of  Employment.  (c) Termination of Employment for Good Reason.  At any time during the Term of  Employment under this Agreement, the Executive may effect at his own discretion, pursuant to  this Paragraph 7(c), and in accordance with the requirements set forth in Paragraph 11(ff) below,  a Termination of Employment of Executive for Good Reason, provided, however, that any  attempt to do so under circumstances that would also qualify such Termination of Employment  as a Termination of Employment of Executive for Good Reason under Paragraph 6(a) of this  Agreement, that is, as a Termination of Employment of Executive for Good Reason following a  Change in Control that meets the conditions set forth in Paragraph 6(a), will be deemed a  Termination of Employment of Executive for Good Reason under Paragraph 6(a), and not a  Termination of Employment of Executive for Good Reason under this Paragraph 7(c).  In the  event of a Termination of Employment of Executive for Good Reason under this Paragraph 7(c),  on the applicable payment date specified in Paragraph 8, and subject to the satisfaction of the  conditions specified below in Paragraph 8, Arrow or the Bank shall pay to the Executive, and the  Executive shall be entitled to receive, one (1) lump sum payment in a dollar amount equal to the  dollar amount of the lump sum payment the Executive would have been entitled to receive had a  Termination of Employment of Executive without Cause under Paragraph 7(b) above occurred  on such date, and under identical circumstances except for the identity of the party effecting such  Termination of Employment and the existence of Good Reason.   (d) Termination of Employment for Disability.  If, as a result of the Executive's  incapacity due to physical or mental illness, the Executive shall not have performed his duties  hereunder on a full time basis for six (6) consecutive months, Arrow or the Bank may effect a  Termination of Employment of Executive for Disability upon thirty (30) days' written notice.   Such Termination of Employment of Executive for Disability shall require the affirmative vote  of a majority of the entire Arrow Board or Bank Board.  The compensation of the Executive  during any period of disability prior to the effective date of such Termination of Employment of  Executive for Disability shall be the amounts normally payable to him in accordance with this  Agreement, reduced by the sum of the amounts, if any, paid to the Executive for such period  under disability benefit plans maintained by Arrow or the Bank.   The Executive shall not be  entitled to any further compensation from Arrow or the Bank for any period subsequent to the  effective date of such Termination of Employment of Executive for Disability, except for  payments, if any, payable in accordance with the then current plans and policies of Arrow or the  Bank.    (e) Termination of Employment upon Death.   Upon the death of Executive during the  Term of Employment hereunder (and simultaneous Termination of Employment of Executive  upon Death), the Executive’s estate or beneficiaries, as applicable, shall not be entitled to any  further compensation for any period subsequent to the date of death, except for payments, if any,  

 

10    payable in accordance with the then current plans and policies of Arrow or the Bank, including  death benefits.   (f) Other Early Terminations of Employment.  The Employment of Executive may be  terminated before the normal expiration of the Term hereof under certain other circumstances,  not otherwise addressed in Paragraphs 6 or 7 hereof, as follows:  (i) Retirement.  Executive may terminate his Employment hereunder upon  retirement at or after attaining retirement or early retirement age under any retirement  plan of Arrow and its Affiliates then in effect with respect to which Executive is a  covered person (“Retirement”).  Upon any such Termination of Employment of  Executive due to Retirement, Executive shall not be entitled to any further compensation  for any period subsequent to the effective date of such Termination of Employment for  Retirement, except for payments, if any, payable in accordance with the then current  plans and policies of Arrow or the Bank including applicable post-retirement benefits and  payments provided to or for the Executive under retirement, severance and similar plans  of Arrow, the Bank or their Affiliates then in effect as to which the Executive  participates.  (ii) Termination by Executive without Good Reason.  If the Executive  determines, at his own discretion, to terminate his Employment prior to the expiration of  the Term of Employment hereunder, without Good Reason and in the absence of the  Retirement or Disability of the Executive (any such, a “Termination of Employment of  Executive without Good Reason”), including any such Termination of Employment of  Executive without Good Reason effected by the Executive following his Non-Acceptance  of a Replacement Agreement, Executive shall not be entitled to any further compensation  for any period subsequent to the effective date of such Termination of Employment of  Executive without Good Reason, except for payments, if any, payable in accordance with  the then current plans and policies of Arrow or the Bank including applicable qualified or  non-qualified employee benefit plans or policies covering Executive or under any other  applicable agreements with Executive.  Under no circumstances will Executive effect a  Termination of Employment of Executive without Good Reason, except after delivery of  advance written notice thereof to Arrow or the Bank, and the effective date of any such  Termination of Employment of Executive without Good Reason shall be the thirtieth  (30th) day following delivery of such written notice, or such other day as may be mutually  agreed upon by Arrow and the Executive.  (iii) Termination as a Result of Liquidation, Dissolution, Order, Etc.  If the  Employment of Executive by Arrow or the Bank is terminated prior to the expiration date  of this Agreement as a result of the liquidation, dissolution or winding up of the affairs of  Arrow or the Bank or the involuntary closing of the Bank by bank regulators prior to such  date, or by virtue of any order or decree of any court or administrative or regulatory  agency or body with jurisdiction over Arrow or the Bank ordering or requiring the  Termination of Employment of Executive by either or both such entities prior to such  expiration date, Executive shall have no right to receive from Arrow or the Bank, and  neither Arrow nor the Bank shall have any obligation to pay or provide to Executive, any  compensation or benefits, other than such Base Salary payments and normal benefits as  

 

11    may be required to be paid or provided to the Executive through the effective date of the  Termination of Employment of Executive; provided, however, that nothing herein shall  reduce or affect any obligations that Arrow or the Bank may have to Executive under any  other agreement with Executive or under any qualified or non-qualified employee benefit  plan or policy covering Executive or under any plan of liquidation or dissolution adopted  by Arrow or the Bank in connection with any such liquidation, dissolution or winding up.  8. Delayed Payment of Benefits; Conditions to Payment of Benefits.    (a) Notwithstanding anything in the foregoing to the contrary, if the Executive is a  “specified employee,” as defined in Code Section 409A and the regulations thereunder, on  the date of his Termination of Employment, amounts that constitute nonqualified deferred  compensation subject to Code Section 409A that would otherwise have been paid during the  six-month period immediately following the date of such Termination of Employment shall  be paid on the first regular payroll date immediately following the six-month anniversary of  such Termination of Employment, with interest to be paid on each such amount, the payment  of which is then delayed, at the rate of yield on U.S. Treasury Bills with the earliest maturity  date that occurs at least six months after such date of such Termination of Employment (as  reported in the Wall Street Journal) from such date of Termination of Employment to the  date of actual payment.  Reimbursements or payments directly to the service provider for  health care expenses incurred during such six month period, plus reimbursements and in-kind  benefits in an amount up to the applicable dollar limit on elective deferrals to a 401(k) plan  under Section 402(g)(1)(B) of the Code, and other amounts that do not constitute  nonqualified deferred compensation subject to Section 409A shall not be subject to such six  month delay requirement.    (b) Notwithstanding anything in the foregoing to the contrary, neither Arrow nor the  Bank will have any obligation to make or commence any payment, or provide any benefit,  provided for in Paragraphs 6(b), 7(b) or 7(c) unless and until Executive (1) first signs and  delivers to Arrow and/or the Bank within 45 days of the date of Termination of Employment  a separation and release agreement prepared by Arrow in a form acceptable to Arrow and  which such agreement shall include a full release of Arrow, its Affiliates, employee benefit  plans/trusts, and their respective directors, officers, employees, agents, administrators,  trustees, fiduciaries, insurers, successors and assigns and such other provisions as are  typically required by an employer therein, and (2) all conditions to the effectiveness of such  separation and release agreement shall have been satisfied. Upon satisfaction of these  conditions, the payments and benefits provided for in Paragraphs 6(b), 7(b) or 7(c) will be  paid, or commence to be paid, on the later of (i) the first applicable regular payroll date of  Arrow immediately following the 60th day anniversary of the date of Termination of  Employment, without interest to be paid on such amount, or (ii) the date provided for in  Paragraph 8(a), if applicable.  Arrow agrees to provide to Executive on or prior to the date of   the Termination of Employment of Executive, the form of separation and release agreement  required by it.   9. Non-Competition; Non-Solicitation; Non-Disparagement.  Arrow and its  Affiliates are engaged in the businesses of banking, lending, trust operations and providing  financial, property, casualty and health insurance and investment adviser services and products  

 

12    (collectively, the “Business”).  As a senior executive, Executive provides services that are  unique, special and/or extraordinary to the Business in which Arrow and its Affiliates engage,  and have access to and will learn of trade secrets of Arrow and its Affiliates and confidential  information pertaining to their customers.  The provisions of Paragraphs 9 and 10 are agreed by  the parties to be reasonable and necessary to protect the goodwill of Arrow’s and its Affiliates’  Business, the good will of special/long-term customer relationships, Arrow’s and its Affiliates’  confidential information and trade secrets (including but not limited to information concerning  their customers, marketing studies, marketing strategies, acquisition plans, costs, personnel and  financial performance) and confidential customer information and to protect against unfair  competition by an employee whose services are special, unique and/or extraordinary to the  Business of Arrow and its Affiliates and their long-term success.  Accordingly, the Executive  agrees as follows:   (a) Non-Compete.  For a period of two (2) years following the effective date of  Termination of Employment of the Executive by any party for any reason (excluding death),  including any Termination of Employment following a Change in Control under Paragraph 6 of  this Agreement, the Executive will not, directly or indirectly: (1) engage in the business of  banking, lending, trust operations or providing financial, property, casualty, or health insurance  or investment adviser services or products anywhere in the Designated Area or (2) manage,  operate, or control, or accept or hold a position as a director, officer, employee, agent or partner  of or adviser or consultant to, or otherwise perform substantial services for or provide advice to,  any bank or insured financial institution or other corporation or entity engaged in the business of  banking, lending, trust operations or providing financial, property, casualty, or health insurance  or investment adviser services and products (directly or through a subsidiary), excluding Arrow  and its Affiliates (any such other bank, institution, corporation or entity, a “Financial  Institution”), if, as of the effective date of such Termination of Employment, such Financial  Institution has any office or branch located within the Designated Area or has immediate plans to  establish any office or branch within the Designated Area.  For purposes of the preceding  sentence, the “Designated Area” as of any particular time will consist of all counties in the State  of New York and any other state in which Arrow or any of its Affiliates maintains an office or  branch through which it engages in Business or has acted to establish an office or a branch  through which it will engage in Business.  The provisions of this paragraph shall not prohibit  Executive during such two-year period from working for a company whose principal business is  providing property, casualty or health insurance, private equity investments, or serving as a  securities broker if Executive is engaged solely in that business and not in the business of  providing banking, lending or trust services.  The term financial services means financial  products associated with the business of banking, including in particular but not limited to credit  cards, debit cards, checking and savings accounts, and money market funds.  (b) Non-Solicitation.  For a period of two (2) years following the effective date of  Termination of Employment of the Executive by any party for any reason (excluding death), the  Executive will not, directly or indirectly,  (i) acting on behalf of any Financial Institution, regardless of where such  Financial Institution is located or doing business, solicit any banking, lending or trust business or  the business of providing financial, insurance or investment adviser services or products business  for such Financial Institution from, or otherwise seek to obtain as a customer or client of such  

 

13    Financial Institution, any person or entity that, to the knowledge of the Executive, was a  customer or client of Arrow or any of its Affiliates, and whom Executive, or anyone supervised  directly or indirectly by Executive, worked with, at any point during the one-year period  immediately preceding the effective date of such Termination of Employment; or  (ii) acting on behalf of any other corporation or entity, including any  Financial Institution, regardless of where such other corporation or entity is located or doing  business, employ, recruit or solicit as an employee of such corporation or entity or retain or seek  to retain as an agent or consultant of such corporation or entity, any individual employed by or  retained as an agent or consultant of Arrow or any of its Affiliates in furtherance of their  Business at any point during the one-year period immediately preceding the effective date of  such Termination of Employment if such individual possesses knowledge of any trade secrets or  confidential customer information of Arrow or any of its Affiliates, or provided services that  were unique and/or extraordinary to Arrow or its Affiliates in their Business and Executive  worked with or directly or indirectly managed such individual at any time during the last year of  Executive’s Employment.  (c) Non-Disparagement. For a period of ten (10) years following the effective date of  Termination of Employment of the Executive by any party for any reason (excluding death), the  Executive will not, directly or indirectly, make any statements, declarations, announcements,  assertions, remarks, comments or suggestions, orally or in writing, that individually or  collectively are, or may be construed as being, defamatory, derogatory, negative, or disparaging  to Arrow or its Affiliates (including any successor to Arrow or its Affiliates by merger or  acquisition or any of such successor’s affiliates), or to any director, officer, controlling  shareholder, member, employee or agent of any of the foregoing.  It is the intention of the parties to restrict the activities of the Executive under this Paragraph 9  only to the extent necessary for the protection of the legitimate business interests of Arrow  and/or its Affiliates, and the parties specifically covenant and agree that should any of the clauses  or provisions of the restrictions set forth herein, under any set of circumstances, be held by a  court of competent jurisdiction to be illegal, invalid or unenforceable under present or future  laws effective, then and in that event, the court so holding may reduce the extent or duration of  such restrictions or effect any other change to such restrictions to the extent necessary to render  such restrictions enforceable by said court to the maximum extent permissible under applicable  law.  The enforceability of the provisions of this Paragraph 9 shall not be affected by the  existence or non-existence of any agreement with similar terms between Arrow and another  employee, or by the failure of Arrow or its Affiliates to enforce, or their agreement to waive or  change, the terms of any such agreement with another employee containing similar terms.  This  Paragraph 9 shall survive termination of this Agreement in accordance with its terms.  10. Confidential Information.  The Executive specifically acknowledges that all  information pertaining to Arrow or its Affiliates received by him during the course of his  employment which has been designated confidential, constitutes a trade secret or otherwise has  not been made publicly available, including, without limitation, plans, strategies, projections,  analyses, and information pertaining to customers or potential customers, is the exclusive  property of Arrow and its Affiliates and the Executive covenants and agrees not to disclose any  of such information, without the express prior written consent of the Arrow Board or the Chief  

 

14    Executive Officer of Arrow, during his employment hereunder or after Termination of  Employment, to anyone not employed or engaged by Arrow or an Affiliate thereof to render  services to it.  The Executive further covenants and agrees that he will not at any time use any  such information, without such express prior written consent, for his own benefit or the benefit  of any party other than Arrow or its Affiliates.  This Paragraph 10 shall survive termination of  this Agreement.  11. Definitions.  The following capitalized terms when used in this Agreement shall  have the following meanings.   (a) “Affiliate” means any corporation or other business entity that from time to time  is, along with Arrow, a member of a controlled group of businesses, as defined in Sections  414(b) and 414(c) of the Code, provided that the language “at least 50 percent” shall be used  instead of “at least 80 percent” each place it appears in such test.  A corporation or other business  entity is an Affiliate only while a member of such group.  (b) “Agreement” shall have the meaning set forth in the introductory paragraph  hereof.   (c) Intentionally omitted.   (d) “Arrow” shall mean Arrow Financial Corporation.   (e) “Arrow Board” shall mean the Board of Directors of Arrow.   (f) “Bank” shall mean Glens Falls National Bank and Trust Company.  (g) “Bank Board” shall mean the Board of Directors of the Bank.   (h) “Base Salary” shall have the meaning set forth in Paragraph 5(a) hereof.   (i) “Change of Control” means:  (i) The acquisition by one person, or more than one person acting as a  group, of ownership of stock of Arrow that, together with stock held by such person or group,  constitutes more than 50% of the total fair market value or total voting power of the stock of the  Arrow;  (ii) The acquisition by one person, or more than one person acting as a  group, of ownership of stock of Arrow that, together with stock of Arrow acquired during the  twelve-month period ending on the date of the most recent acquisition by such person or group,  constitutes 30% or more of the total voting power of the stock of Arrow;  (iii) A majority of the members of the Arrow Board are replaced during any  twelve-month period by directors whose appointment or election is not endorsed by a majority of  the members of the Arrow Board before the date of the appointment or election; or     

 

15    (iv) One person, or more than one person acting as a group, acquires (or has  acquired during the twelve-month period ending on the date of the most recent acquisition by  such person or group) assets from Arrow that have a total gross fair market value (determined  without regard to any liabilities associated with such assets) equal to or more than 40% of the  total gross fair market value of all of the assets of Arrow immediately before such acquisition or  acquisitions.  Persons will not be considered to be acting as a group solely because they  purchase or own stock  of the same corporation at the same time, or as a result of the same public offering.  However,  persons will be considered to be acting as a group if they are owners of a corporation that enters  into a merger, consolidation, purchase or acquisition of stock, or similar business transaction  with Arrow.     This definition of Change of Control shall be interpreted in accordance with, and in a manner  that will bring the definition into compliance with, the regulations under Section 409A of the  Code.  (j) “Change of Control Termination Total Payments” shall have the meaning set  forth in Paragraph 6(g) hereof.  (k) “Code” shall mean the Internal Revenue Code of 1986, as amended.   (l) Intentionally omitted.    (m) “Designated Area” shall have the meaning set forth in Paragraph 9(a) hereof.  (n) “Effective Date” shall have the meaning set forth in the introductory paragraph  hereof.  (o) “Employment” shall have the meaning set forth in Paragraph 1 hereof.  (p) “Excise Tax” shall have the meaning set forth in Paragraph 6(g)(i) hereof.  (q) “Executive” shall mean Andrew J. Wise.  (r) “Financial Institution” shall have the meaning set forth in Paragraph 9(a) hereof.  (s) “Non-Acceptance” shall have the meaning set forth in Paragraph 2(b) hereof.   (t) “Non-Offer” shall have the meaning set forth in Paragraph 2(b) hereof.  (u) “Non-Renewal” shall have the meaning set forth in Paragraph 2(b) hereof.   (v)  “Pay-out Period” shall mean the period commencing on the date of Termination  of Employment and ending two years thereafter.  (w)  “Replacement Agreement” shall have the meaning set forth in Paragraph 2(b)  hereof.    

 

16    (x)  “Retired Early Employee” shall have the meaning set forth in Paragraph 6 hereof.   (y)  “Retirement” shall have the meaning set forth in Paragraph 7(f)(i) hereof.   (z) “Section 4999 Determination” shall have the meaning set forth in Paragraph  6(g)(ii) hereof.  (aa) “Target Bonus” shall have the meaning set forth in Paragraph 5(b) hereof.   (bb) “Term” shall have the meaning set forth in Paragraph 2(a) hereof.   (cc) “Termination of Employment” or “Termination of Employment of Executive”  means the separation from service of the Executive, as defined in the regulations under Section  409A of the Code, with and from Arrow and its Affiliates. Generally, for purposes of Section  409A, a separation from service means a decrease in the performance of services to no more than  20% of the average for the preceding 36-month period, disregarding leaves of absence of up to  six months where there is a reasonable expectation the Executive will return.  (dd) “Termination of Employment of Executive as a Retired Early Employee” means  a Termination of Employment of Executive pursuant to Paragraph 6(a) hereof, that is, either a  Termination of Employment of Executive without Cause or a Termination of Employment of  Executive for Good Reason, in either case, following a Change in Control and otherwise meeting  the requirements of Paragraph 6(a) hereof.  (ee) “Termination of Employment of Executive for Cause” shall mean a termination  of the Employment of Executive by Arrow or the Bank pursuant to Paragraph 7(a) for any one or  more of the following “Causes:”  (i) any willful misconduct by the Executive which is  materially injurious to Arrow or the Bank or their Affiliates, monetarily or otherwise;    (ii) any willful failure by the Executive to follow the  reasonable directions of the Arrow Board or the Bank Board or the Chief Executive  Officer of Arrow or the Bank;   (iii) any failure by the Executive substantially to perform any  reasonable directions of the Arrow Board or the Bank Board or the Chief Executive  Officer of Arrow or the Bank (other than failure resulting from disability or death),  within thirty (30) days after delivery to the Executive by the respective Board  or the  Chief Executive officer of Arrow or the Bank a written demand for substantial  performance, which written demand shall specifically identify the manner in which the  respective Board believes that the Executive has not substantially performed;   (iv) any inability of the Executive to serve as an officer or  director of any subsidiary company, or perform any substantial portion of Executive’s  duties hereunder, by reason of any order of the Federal Deposit Insurance Corporation,  the Office of the Comptroller of Currency, or any other regulatory authority or agency  having jurisdiction over Bank or any of its Affiliates; or  

 

17    (v) intentionally providing false or misleading information to,  or otherwise misleading, the Arrow Board, the Bank Board or any committee thereof.  (ff)  “Termination of Employment of Executive for Good Reason” means any  Termination of Employment of Executive, effected by the Executive, in his sole discretion,  following Executive’s discovery of a Good Reason for such Termination of Employment (as  defined below), and meeting all of the requirements for such Termination of Employment set  forth below.  Any such Termination of Employment of Executive for Good Reason shall be  deemed to have been effected under Paragraph 7(c) of this Agreement unless it meets all of the  conditions for a Termination of Employment of Executive for Good Reason under Paragraph  6(a) hereunder, in which event it shall be deemed to have been effected under Paragraph 6(a).   Any Termination of Employment of Executive for Good Reason under this Agreement will be  commenced upon, and only upon, delivery of advance written notice thereof by the Executive to  Arrow or the Bank, which written notice must be delivered, if such Termination of Employment  is to become effective, not later than ninety (90) days after the discovery by the Executive of the  Good Reason underlying such Termination of Employment (and, if the Termination of  Employment of Executive for Good Reason is being effected under Paragraph 6(a) of this  Agreement, not later than one (1) year after the date of the Change in Control the occurrence of  which is a pre-condition to the right of Executive to effect such a Termination of Employment  under Paragraph 6(a)).  The written notice of termination delivered by the Executive to Arrow or  the Bank shall (i) state that the Termination of Employment of Executive for Good Reason is  being effected under Paragraph 6(a) or Paragraph 7(c), as appropriate, (ii) identify with  reasonable particularity the Good Reason or Good Reasons underlying the Termination of  Employment, and (iii) specify the effective date of such Termination of Employment, which  shall be a date not less than thirty (30) days nor more than one hundred eighty (180) days after  the delivery of such notice to Arrow or the Bank, as determined by the Executive.  If, prior to the  effective date of the Termination of Employment of Executive specified in the written notice,  Arrow or the Bank is able to remedy in full, and remedies in full, the circumstances underlying  or constituting the Good Reason or Good Reasons identified by the Executive in the written  notice, then such Good Reason or Good Reasons shall be deemed cured and the Termination of  Employment of Executive for Good Reason shall be deemed null and void, effective upon  execution of written affidavit of cure signed by Arrow and the Bank and consented to by the  Executive, such consent not to be unreasonably withheld.  For purposes of any Termination of  Employment of Executive for Good Reason, “Good Reason” shall mean (i) the occurrence of a  Non-Offer of a Replacement Agreement pursuant to Paragraph 2(b) hereof; (ii) a material  diminution in the Executive’s title, authority, duties, or responsibilities; (iii) Executive is  required to relocate more than 100 miles from the base location at which Executive currently  performs his employment duties; or (iv) the occurrence of a material breach by the Company of  any provision of this Agreement.   (gg)  “Termination of Employment of Executive without Cause” means any  Termination of Employment of Executive by Arrow or the Bank prior to normal expiration of the  Term of Employment hereunder, for any reason or no reason, that does not qualify as a  Termination of Employment of Executive for Cause or otherwise meet the definition of any other  Termination of Employment of Executive hereunder.  Any such Termination of Employment of  Executive without Cause shall be deemed to have been effected under Paragraph 7(b) of this  Agreement unless it meets all the conditions for a Termination of Employment of Executive  

 

18    without Cause under Paragraph 6(a) hereunder, in which event it shall be deemed to have been  effected under Paragraph 6(a).  Any Termination of Employment of Executive without Cause  under this Agreement will be commenced upon, and only upon, delivery of advance written  notice thereof by Arrow or the Bank to Executive, stating that such Termination of Employment  is a Termination of Employment of Executive without Cause under Paragraph 6(a) or Paragraph  7(b) of this Agreement, as appropriate, and specifying the effective date of such Termination of  Employment, which shall be a date not less than thirty (30) days nor more than ninety (90) days  after the date of delivery of such notice to Executive, as determined by Arrow or the Bank.  Any  such Termination of Employment of Executive without Cause (including the delivery of the  required written notice of termination) shall require the affirmative vote of not less than two- thirds (2/3) of the entire Arrow Board or Bank Board.  12. Successors and Assigns; Assumption by Successors.  This Agreement is a  personal services contract which may not be assigned by Arrow or the Bank to, or assumed from  Arrow or the Bank by, any other party without the prior consent of the Executive.  All rights  hereunder shall inure to the benefit of the parties hereto, their personal or legal representatives,  heirs, successors and assigns.  Arrow will require any successor (whether direct or indirect, by  purchase, assignment, merger, consolidation or otherwise) to all or substantially all of the  business and/or assets of Arrow in any consensual transaction expressly to assume this  Agreement and to agree to perform hereunder in the same manner and to the same extent that  Arrow would be required to perform if no such succession had taken place. References herein to  “Arrow” or the “Bank” will be understood to refer to the successor or successors of Arrow or the  Bank, respectively.  13. Notices.  Any notice required or desired to be given hereunder shall be in writing  and shall be deemed given when delivered personally or sent by certified or registered mail,  postage prepaid, to the addresses of the other parties set forth in the first Paragraph of this  Agreement, provided that all notices to Arrow or the Bank shall be directed in each case to the  Chief Executive Officer thereof.  14. Waiver of Breach.  Waiver by any party of a breach of any provision shall not  operate as or be construed a waiver by such party of any subsequent breach hereof.  15. Invalidity.  The invalidity or unenforceability of any provision of this Agreement  shall not affect the validity or enforceability of any other provisions, which shall remain in full  force and effect.  16. Entire Agreement; Written Modification; Termination.  This Agreement  contains the entire agreement among the parties concerning the employment of the Executive by  Arrow and the Bank.   No modification, amendment or waiver of any provision hereof shall be  effective unless in writing specifically referring hereto and signed by the party against whom  such provision as modified or amended or such waiver is sought to be enforced.  This Agreement  shall terminate as of the time Arrow or the Bank makes the final payment which it may be  obligated to pay hereunder or provides the final benefit which it may be obligated to provide  hereunder, or, if later, as of the time the last remaining restriction set forth in Paragraph 9  expires.  Paragraph 10 shall survive termination of this Agreement.  

 

19    17. Performance by Arrow or the Bank.  Performance under this Agreement by  Arrow and the Bank, including the payment of any amounts provided for hereunder, are subject  to applicable law and regulation including payments prohibited under 12 CFR 359 and any other  payment restrictions on executive compensation under applicable banking law and regulation.   Any obligation of Arrow or the Bank to make a payment under any provision of this Agreement  shall be deemed an obligation of both parties to make such payment, and the making of such  payment by either such party shall be deemed performance of the obligation to pay by both such  parties.  18. Company Policies or Guidelines.  In consideration of the Executive’s  employment with Arrow and the Bank, Executive agrees that his compensation and benefits  provided for hereunder or otherwise by Arrow or the Bank are subject to (i) applicable laws and  regulations as are in effect from time to time, and (ii) current or subsequently adopted policies or  guidelines issued by the Arrow Board or the Bank Board , in each case, impacting such  compensation or benefits pursuant to the terms of such applicable laws, regulations, policies or  guidelines (e.g., clawback or incentive compensation recoupment policies and/or stock  ownership guidelines).  19. Counterparts.  This Agreement may be made and executed in counterparts, in  which case all counterparts shall be deemed to constitute one original document for all purposes.  20. Governing Law.  This Agreement is governed by and is to be construed and  enforced in accordance with the laws of the State of New York without reference to conflicts of  law principles.  21. Section 409A Compliance.  The parties intend that all provisions of this  Agreement comply with the requirements of Internal Revenue Code Section 409A to the extent  applicable.  No provision of this Agreement shall be operative to the extent that it will result in  the imposition of the additional tax described in Code Section 409A(a)(1)(B)(i)(II).  If any  provision hereof is reasonably deemed to contradict Section 409A, the parties agree to revise, to  the extent practicable, the Agreement as necessary to comply with Section 409A and fulfill the  purpose of the voided provision.  Nothing in this Agreement shall be interpreted to permit  accelerated payment of nonqualified deferred compensation, as defined in Section 409A, or any  other payment in violation of the requirements of Section 409A.  With respect to reimbursements  that constitute taxable income to Executive, no such reimbursements or expenses eligible for  reimbursement in any calendar year shall in any way affect the expenses eligible for  reimbursement in any other calendar year and Executive’s right to reimbursement shall not be  subject to liquidation in exchange for any other benefit.  22. Authorization.  Arrow and the Bank represent and warrant that the execution of  this Agreement has been duly authorized by resolution of their respective boards.  [SIGNATURE PAGE FOLLOWS]  

 

20      IN WITNESS WHEREOF, the parties have executed or caused to be executed this  Agreement effective as of February 1, 2022.   ARROW FINANCIAL CORPORATION        By: Thomas J. Murphy  Thomas J. Murphy, President and CEO        GLENS FALLS NATIONAL BANK   AND TRUST COMPANY        By: Thomas J. Murphy  Thomas J. Murphy, President and CEO         “EXECUTIVE”      Andrew J. Wise  Andrew J. Wise  Senior Executive Vice President and Chief Operating  Officer of Arrow and Senior Executive Vice President and  Chief Operating Officer of the BankDocument

Exhibit 10.1

MASTER FRAMEWORK AGREEMENT
This MASTER FRAMEWORK AGREEMENT (this “Framework Agreement”), is made and entered into as of January 26, 2022 (the “Effective Date”), by and between:
(i) MUFG BANK, LTD., NEW YORK BRANCH, a Japanese banking corporation acting through its New York Branch (“Buyer”); and
(ii) USCC EIP LLC, a Delaware limited liability company (“Seller”).
Each of Buyer and Seller may also be referred to herein individually as a “Party”, and collectively as the “Parties”.
RECITALS
WHEREAS, Seller owns Receivables and Buyer wishes to provide Seller with a facility pursuant to which Buyer may purchase Receivables from Seller from time to time subject to the terms and conditions hereof.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants, agreements and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1.    Interpretation.
1.1    Definitions.  All capitalized terms used in this Framework Agreement (including its recitals, Exhibits and Schedules) shall, unless defined herein, have the respective meanings set forth in Schedule 1 hereto.
1.2    Construction.
(a)    The headings, sub-headings and table of contents in this Framework Agreement shall not affect its interpretation.  References in this Framework Agreement to Sections, Exhibits and Schedules shall, unless the context otherwise requires, be references to Sections of, and Exhibits and Schedules to, this Framework Agreement.
(b)    Words denoting the singular number only shall include the plural number also and vice versa; words denoting one gender only shall include the other genders and words denoting persons shall include firms and corporations and vice versa.
(c)    References to a Person are also to its permitted successors or assigns.
(d)    References in this Framework Agreement to any agreement or other document shall be deemed also to refer to such agreement or document as amended or varied or novated from time to time.
(e)    References to an amendment include a supplement, novation, restatement or re-enactment, and “amend” and “amended” (or any of their derivative forms) will be construed accordingly.
(f)    Reference to a time of day is a reference to New York City, New York time.
(g)    “Include”, “includes” and “including” shall be deemed to be followed by the words “without limitation.”
(h)    “Hereof”, “hereto”, “herein” and “hereunder” and words of similar import when used in this Framework Agreement refer to this Framework Agreement as a whole and not to any particular provision of this Framework Agreement.
(i)    References to a “writing” or “written” include any text transmitted or made available on paper or through electronic means.
(j)    References to “$”, U.S. Dollars or otherwise to dollar amounts refer to the lawful currency of the United States.
(k)    References to a law include any amendment or modification to such law and any rules and regulations issued thereunder, whether such amendment or modification is made, or issuance of such rules and regulations occurs, before or after the Effective Date.
2.    Transaction Agreements.
2.1    Agreements to be Executed at the Closing.  Concurrently with this Framework Agreement, the Parties intend to execute the following additional agreements (together with this Framework Agreement and each Confirmation entered into during the Facility Term, the “Transaction Agreements”) to which they are party:
(a)    the Master Repurchase Agreement;
        

(b)    the Fee Letter; and
(c)    the Guaranty.
2.2    Definitions.  When used in any Transaction Agreement, capitalized terms not otherwise defined therein will, to the extent defined herein, have the meanings set forth in this Framework Agreement (including Schedule 1).
3.    Closing; Closing Deliveries.
3.1    Closing.  Subject to the terms and conditions of this Framework Agreement, the transactions contemplated in this Framework Agreement to occur concurrently with the execution hereof (other than the entry into any Confirmations) will take place at a closing (the “Closing”) to be held on the Effective Date at a mutually agreeable location or by the exchange of electronic documentation.
3.2    Seller Closing Deliverables.  At the Closing or prior to the Closing, Seller will deliver, or cause to be delivered, to Buyer:
(a)    an executed counterpart to each of the Transaction Agreements (other than any Confirmations) to which it is a party;
(b)    a counterpart of the Guaranty executed by Guarantor;
(c)    a certificate of the Secretary or an Assistant Secretary of Seller, dated the Effective Date, certifying as to (i) the incumbency of the officers of Seller executing the Transaction Agreements, (ii) attached copies of Seller’s certificate of formation and limited liability company agreement; and (iii) copies of all limited liability company approvals and consents of Seller that are required by it in connection with entering into, and the exercise of its rights and the performance of its obligations under, the Transaction Agreements;
(d)    a certificate of the Secretary or an Assistant Secretary of Guarantor, dated the Effective Date, certifying as to (i) the incumbency of the officer(s) of Guarantor executing the Guaranty, (ii) attached copies of Guarantor’s certificate of incorporation and bylaws; and (iii) copies of all corporate approvals and consents of Guarantor that are required by it in connection with entering into, and the exercise of its rights and the performance of its obligations under, the Guaranty;
(e)    a customary legal opinion or opinions, in form and substance satisfactory to Buyer, with respect to Seller opining on existence, due authorization and execution, absence of conflicts with Organizational Documents and with the Credit Facility Documents and the Securitization Facility Documents, binding nature of obligations, absence of violations of, and absence of consents under, certain U.S. Federal and New York State laws and creation and perfection of security interests; 
(f)    a customary legal opinion or opinions, in form and substance satisfactory to Buyer, with respect to Guarantor opining on existence, due authorization and execution, absence of conflicts with Organizational Documents and with the Credit Facility Documents, binding nature of obligations, and absence of violations of, and absence of consents under, certain U.S. Federal and New York State laws;
(g)    results of UCC lien searches with respect to Seller for the State of Delaware as of a date not more than thirty (30) days prior to the Closing; and
(h)    a fully prepared UCC-1 financing statement describing the Collateral.
3.3    Buyer Closing Deliverables.  At the Closing or prior to the Closing, Buyer will deliver to Seller:
(a)    an executed counterpart to each of the Transaction Agreements (other than any Confirmations) to which it is a party; and
(b)    an executed copy of IRS Form W-8ECI.
4.    Transactions.
4.1    Requests for Transactions.  
(a)    Transaction Notices.  Seller may, from time to time during the Facility Term, deliver a written notice, substantially in the form attached hereto as Exhibit A (a “Transaction Notice”) to Buyer requesting that Buyer enter into a Transaction on any Permitted Business Day; provided that no Permitted Business Day may be selected that would result in two Transactions being outstanding at any one time.  Such notice (i) shall be delivered to Buyer not less than three (3) Business Days prior to such proposed Permitted Business Day, (ii) shall include a completed forms of Confirmations for such Transaction (including the proposed Purchase Price (which shall not exceed the Maximum Purchase Price and shall be not be less than $5,000,000 and shall be in minimum increments of $1,000,000) but excluding the terms thereof pertaining to Pricing Rate, Price Differential and Repurchase Price), and (iii) shall be accompanied by a copy of the Portfolio Report.  

(b)    Buyer’s Option to Proceed or Decline.  Following receipt of a properly completed Transaction Notice and other documentation specified in Section 4.1(a), Buyer may, at its sole discretion, elect to either (i) so long as the Funding Conditions with respect to such proposed Transaction have been satisfied or waived by Buyer, enter into the proposed Transaction with Seller on the terms set forth in the Transaction Notice (with such modifications as Buyer and Seller shall have agreed) by delivering to Seller the  finalized and executed Confirmation evidencing such Transaction and paying any applicable Funded Purchase Price in accordance with Section 4.1(c) below or (ii) decline Seller’s request to enter into such Transaction (in which case Buyer shall deliver written notice of such election promptly after determining to make such election (but in any event not later than the second Business Day immediately preceding the proposed Purchase Date specified in the Transaction Notice)).  To the extent Buyer wishes to proceed with the Transaction, Buyer shall, no later than 2:00 p.m. on the Business Day immediately preceding the proposed Purchase Date, deliver to Seller a fully completed draft Confirmation with respect to the proposed Transaction.  In the event Seller and Buyer disagree with respect to any portion of the draft Confirmation or in the event Buyer determines that any applicable Funding Conditions are not, or will not be, satisfied as of the relevant Purchase Date, Seller or Buyer (as applicable) shall promptly notify the other of the same, and Seller and Buyer shall, subject to Section 4.1(d), cooperate expeditiously and in good faith to resolve any such matters (to the extent the same are capable of being resolved). If, notwithstanding such efforts, such disagreement is not resolved or the applicable Funding Conditions are not satisfied or waived as of the proposed Purchase Date, then no Transaction shall be entered into on such proposed Purchase Date.
(c)    Confirmation and Closings.  In the event Buyer elects to enter into the proposed Transaction, Buyer shall, subject to satisfaction of the Funding Conditions, enter into such Transaction by executing and delivering to Seller the finalized and executed Confirmation evidencing such Transaction in accordance with the Master Repurchase Agreement at or prior to the time of closing for such Transaction.  Concurrently with its delivery of such Confirmation, Buyer shall pay the Funded Purchase Price (if any) for the Transaction in accordance Section 7.1 hereof and the terms of the Master Repurchase Agreement and such Confirmation, whereupon Seller will sell and assign, and Buyer will purchase, the Seller Receivables subject to such Transaction.  The closing of such Transaction and payment of any such Funded Purchase Price shall occur at or before 2:00 p.m. on the applicable Purchase Date (or such later time on such Purchase Date as Seller and Buyer may agree).
(d)    UNCOMMITTED ARRANGEMENT. SELLER AND BUYER ACKNOWLEDGE THAT THIS IS AN UNCOMMITTED ARRANGEMENT.  PROPOSED TRANSACTIONS FOR THE SALE OF RECEIVABLES BY SELLER SHALL BE REQUESTED AT SELLER’S SOLE AND ABSOLUTE DISCRETION, AND ACCEPTANCE OF ANY SUCH REQUESTS AND ENTRY INTO ANY SUCH TRANSACTIONS BY BUYER SHALL BE AT BUYER’S SOLE AND ABSOLUTE DISCRETION. 
4.2    [Reserved].
4.3    Funding Conditions.  
(a)    The obligation of Buyer to enter into a Transaction shall be subject to satisfaction of the following conditions (in each case, as of the applicable Purchase Date) (together, the “Funding Conditions”): 
(i)    solely with respect to the initial Transaction, each of the items required to be delivered by Seller pursuant to Section 3.2 shall have been delivered in accordance with the terms hereof;
(ii)    all amounts (if any) then due and owing by Seller under the Fee Letter shall have been paid in full;
(iii)    [reserved];
(iv)    the Transaction Notice (including the Portfolio Report required to be included therewith), shall have been duly delivered to Buyer in accordance with Section 4.1(a);
(v)    Seller shall have delivered to Buyer a duly executed counterpart to the Confirmation with respect to such Transaction;
(vi)    each of the representations and warranties of Seller and Guarantor (as applicable) set forth in the Transaction Agreements (giving effect to the entry into such Transaction) shall be true and correct in all material respects (except that any representation or warranty that is subject to any materiality qualification shall be true and correct in all respects);
(vii)    the Purchase Date for such Transaction shall be a Business Day occurring no later than five (5) Business Days prior to the Facility Expiration Date;
(viii)    Buyer shall have received the full amount of Funded Repurchase Price (if any) due and payable by Seller on such Purchase Date;
(ix)    no Potential Event of Default or Event of Default shall have occurred and be continuing; 
(x)    after entering into such Transaction only one Transaction will be outstanding; and
(xi)    in the case of the initial Transaction, Seller shall have paid the fees payable by it pursuant to the last sentence of Section 8.2.
4.4    Funding of Transaction Repurchase Prices.  On each Repurchase Date for a Transaction on which Funded Repurchase Price is payable by Seller pursuant to the Transaction Agreements (including, for the avoidance of doubt, on the Facility Expiration Date), Seller shall fund the Funded Repurchase Price for such Transaction by wire transfer of immediately available funds to the account of Buyer specified in Schedule 2, no later than 12:00 p.m. on such Repurchase Date.

5.    Representations and Warranties; Certain Covenants. 
5.1    Representations and Warranties of Seller.  Seller represents to Buyer as of the Effective Date and each Purchase Date that:
(a)    Organization and Good Standing.  Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the state of its formation, and has the limited liability company power to own its assets and to transact the business in which it is currently engaged, and to execute, deliver and perform its obligations under this Framework Agreement and the other Transaction Agreements to which it is a party.
(b)    Due Qualification.  Seller is duly qualified to do business as a foreign company and is in good standing in each jurisdiction in which the character of the business transacted by it or properties owned or leased by it requires such qualification and in which the failure so to qualify could reasonably be expected to have a material adverse effect on the business, properties, assets, or condition (financial or otherwise) of Seller, or Seller’s ability to perform its applicable duties under this Framework Agreement and the other Transaction Agreements to which it is a party.
(c)    Authorization; Binding Obligations.  Seller has the power and authority to make, execute, deliver and perform this Framework Agreement and the other Transaction Agreements to which Seller is a party and all of the transactions contemplated under this Framework Agreement and the other Transaction Agreements to which Seller is a party, and has taken all necessary limited liability company or corporate action, as applicable, to authorize the execution, delivery and performance of this Framework Agreement and the other Transaction Agreements to which it is a party.  This Framework Agreement and each other Transaction Agreement to which Seller is a party has been duly executed and delivered by Seller and constitutes the legal, valid and binding obligation of Seller, enforceable in accordance with their terms, except as enforcement of such terms may be limited by applicable Insolvency Laws, any applicable law imposing limitations upon, or otherwise affecting, the availability or enforcement of rights to indemnification hereunder, and by the availability of equitable remedies.
(d)    Licensing.  Seller is properly licensed in each jurisdiction to the extent required by the laws of such jurisdiction in order to originate, acquire or own the Receivables.
(e)    No Violations.  Seller’s execution, delivery and performance of this Framework Agreement and the other Transaction Agreements to which it is a party will not violate any existing law or regulation or any order or decree of any court or Governmental Authority in any material respect or the certificate of formation or limited liability company agreement of Seller or constitute a breach of any material mortgage, indenture, contract or other agreement to which Seller is a party or by which it or any of its properties may be bound.
(f)    No Proceedings.  There are no Proceedings or investigations pending or, to the best knowledge of Seller, threatened, against Seller before any Governmental Authority (i) asserting the invalidity of this Framework Agreement or any other Transaction Agreement to which it is a party, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Framework Agreement or any other Transaction Agreement to which it is a party, (iii) seeking any determination or ruling that, in the reasonable judgment of Seller, would materially and adversely affect the performance by Seller of its obligations under this Framework Agreement or the other Transaction Agreements to which it is a party, or (iv) seeking any determination or ruling that would materially and adversely affect the validity or enforceability of this Framework Agreement or any other Transaction Agreement to which it is a party which, in each case, if adversely determined would be reasonably likely to result in a material adverse effect on the transactions contemplated by, or Seller’s ability to perform its obligations under, this Framework Agreement or any other Transaction Agreement to which it is a party.
(g)    All Consents.  All authorizations, consents, orders or approvals of or registrations or declarations with any Governmental Authority required to be obtained, effected or given by Seller in connection with the execution and delivery by Seller of this Framework Agreement and the other Transaction Agreements to which it is a party and the performance by Seller of the transactions contemplated by this Framework Agreement and the other Transaction Agreements to which it is a party have been duly obtained, effected or given and are in full force and effect, except for those which the failure to obtain would not have a material adverse effect on this Framework Agreement or the other Transaction Agreements to which it is a party or the transactions contemplated hereby or thereby, or on the ability of Seller to perform its obligations under this Framework Agreement or the other Transaction Agreements to which it is a party.
(h)    Investment Company Act.  Seller is not required to register as an “Investment Company” under (and as defined in) the Investment Company Act. 
(i)    No Defaults.  No Event of Default or Potential Event of Default has occurred and is continuing, or would result from the entry into the proposed Transaction on the applicable Purchase Date.
(j)    No Insolvency Event.  No Insolvency Event with respect to Seller has occurred and each transfer of the Receivables by Seller to Buyer has not been made in contemplation of the occurrence thereof.
(k)    Beneficial Ownership Rule.  Seller is wholly-owned by an entity (other than a bank) whose common stock or analogous equity interests are listed on the New York Stock Exchange or the American Stock Exchange or have been designated as a NASDAQ National Market Security listed on the NASDAQ stock exchange (as used in this clause, a “listed entity”) or that is organized under the laws of the United States or of any state and at least 51 percent of whose common stock or analogous equity interest is owned by a listed entity and is excluded on that basis from the definition of Legal Entity Customer as defined in the Beneficial Ownership Rule.
(l)    Market Value.  As of the applicable date specified in the Portfolio Report delivered in connection with a Transaction Notice for such Purchase Date, the aggregate Market Value of the Seller Receivables that would be selected in accordance with the Ordering Priority on such date for inclusion in in the applicable Transaction Portfolio if such date were the Purchase Date is equal to or greater than 125% of the proposed Purchase Price for such Purchase Date.

5.2    Asset Representations and Warranties.  Seller represents and warrants to Buyer as of the applicable Transfer Date with respect to each Purchased Receivable included in the Transaction Portfolio for the Transaction being entered into or in effect as of such Transfer Date (or, in the case of Section 5.2(a) and (b), with respect to the Portfolio Report delivered in connection with such Transaction), that:
(a)    Accuracy of Information.  The information set forth in each Portfolio Report delivered by Seller pursuant to the Transaction Agreements is true and correct in all material respects as of the applicable date specified therein  and, in the case of any Full Portfolio Report, such Full Portfolio Report includes an accurate and complete listing in all material respects of all the Receivables required to be included therein pursuant to the terms of the Transaction Agreements as of the applicable date specified in such Portfolio Report. 
(b)    Eligibility.  Each such Receivable treated as having a positive Market Value included in any Portfolio Report is an Eligible Receivable as of date specified in such Portfolio Report as if such date were the Purchase Date. 
(c)    Ownership.  Each such Purchased Receivable, together with the Related Rights, immediately prior to giving effect to the sale thereof pursuant to the applicable Confirmation is owned by Seller free and clear of any Lien. The Master Repurchase Agreement, taken together with the applicable Confirmation, constitutes a valid sale to Buyer of all right, title and interest of Seller in the Purchased Receivables, together with the Related Rights, and all actions necessary to perfect the grant of the security interest by Seller in such Purchased Receivables pursuant to Section 6(a) of the Master Repurchase Agreement have been taken. 
(d)    Consents.  All authorizations, consents, orders or approvals of or registrations or declarations with any Governmental Authority required to be obtained, effected or given by Seller in connection with the conveyance of Receivables from Seller to Buyer hereunder have been duly obtained, effected or given and are in full force and effect.

5.3    Certain Covenants.  Seller covenants with Buyer as follows:
(a)    [Reserved].  
(b)    Preservation of Existence.  Except as otherwise provided in this Section 5.3, Seller will keep in full force and effect its existence, rights and franchises as a limited liability company under the laws of its jurisdiction of formation, and Seller will obtain and preserve its qualification to do business as a foreign limited liability company in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Framework Agreement, any Transaction Agreements and any of the Purchased Receivables which have been conveyed under a Transaction Agreement, and to perform its duties under this Framework Agreement.
(c)    Performance of Agreements.  Seller shall perform and comply with each Contract governing a Purchased Receivable in such a way as would not (or would not reasonably be expected to) materially and adversely affect the entitlement and/or ability to receive and/or to recover and/or enforce and/or collect payment of the full amount of such Purchased Receivable, and the exercise by Buyer of its rights under this Framework Agreement and the other Transaction Agreements shall not relieve Seller of such obligations.
(d)    Seller’s Obligations.  Except as otherwise expressly provided herein, the obligations of Seller to make any payments contemplated by this Framework Agreement or the Master Repurchase Agreement are absolute and unconditional (including, in the case of its obligation to pay the Repurchase Price and any Price Differential, irrespective of the existence of, or the Receivable Balance of, any Purchased Receivables) and all payments to be made by Seller under or in connection with this Framework Agreement or the Master Repurchase Agreement, as applicable, shall be made free and clear of, and Seller hereby irrevocably and unconditionally waives all rights of, any counterclaim, set-off, deduction or other analogous rights or defenses, in connection with such obligations, which it may have against Buyer. 
(e)    Books and Records; Marking of Records.  
(i)    At all times, Seller will maintain books of account, with the particulars of all monies, goods and effects belonging to or owing to Seller or paid, received, sold or purchased in the course of Seller’s business, and of all such other transactions, matters and things relating to the business of Seller.  
(ii)    At its expense, Seller will maintain records evidencing that the Purchased Receivables have been sold in accordance with the Master Repurchase Agreement and a security interest therein granted to Buyer.
(f)    Indemnification.  Seller will indemnify and keep indemnified Buyer, their Affiliates, and their respective officers, directors, employees and agents and their successors and assigns (each, an “Indemnified Party”) against any cost, claim, loss, expense, liability or damages (including reasonable and documented legal costs and out-of-pocket expenses) arising out of or involving a claim or demand made by any Person (other than by any Indemnified Party) against such Indemnified Party (each a “Claim”) and incurred or suffered by it in connection with:
(i)    any representation or warranty made by Seller or Guarantor under or in connection with any Transaction Agreement (including with respect to any Portfolio Report delivered by Seller pursuant hereto) that shall have been false or incorrect when made or deemed made (without regard to any knowledge, materiality or Material Adverse Effect qualifiers contained therein);
(ii)    the failure by Seller to comply with any applicable Law with respect to any Purchased Receivable included in any Transaction Portfolio, or the nonconformity of any related Contract with any such applicable Law or any failure of Seller to keep or perform any of its obligations with respect to any such Contract;

(iii)    any failure of Seller or Guarantor to perform its duties, covenants or other obligations in accordance with the provisions of any Transaction Agreement;
(iv)    any products liability, personal injury or damage, suit or other similar claim arising out of or in connection with merchandise, insurance or services that are the subject of any Receivable in which any Indemnified Party becomes involved as a result of any of the transactions contemplated by the Transaction Agreements;
(v)    any investigation, litigation or proceeding related to or arising from any Transaction Agreement, any Transactions entered into thereunder, Seller’s use of the proceeds of such Transactions, the ownership of any Receivables originated by Seller, the Collateral or any exercise of remedies by Buyer with respect thereto, or any other investigation, litigation or proceeding relating to Seller or Guarantor in which any Indemnified Party becomes involved as a result of any of the transactions contemplated by the Transaction Agreements; and
(vi)    any civil penalty or fine assessed by OFAC or any other Governmental Authority administering any Anti-Terrorism Law, anti-money laundering law or Sanctions against, and all reasonable costs and expenses (including reasonable documented legal fees and disbursements) incurred in connection with defense thereof by, any Indemnified Party as a result of any action of Seller or its Affiliates; 
provided, that notwithstanding the foregoing, in no event shall Seller be liable hereunder to any Indemnified Party or any other Person for (A) any special, indirect, consequential or punitive damages or (B) Claims to the extent arising from any Indemnified Party’s gross negligence or willful misconduct.
(g)    No Sales, Liens.  Seller will not sell, pledge, assign (by operation of law or otherwise) or transfer to any other Person, or otherwise dispose of, or grant, create, incur, assume or suffer to exist any Lien (arising through or under the Seller) upon or with respect to, any Purchased Receivable or any interest therein, or assign any right to receive income in respect thereof, or take any other action inconsistent with Buyer’s ownership of, the Purchased Receivables, except to the extent arising under any Transaction Agreement and except as expressly permitted under the Transaction Agreements and Seller shall not claim any ownership interest in any Purchased Receivable and shall defend the right, title and interest of Buyer in, to and under the Purchased Receivables against all claims (other than any claims of third parties claiming through or under Buyer).
(h)    Contracts and Credit and Collection Policies; Modification of Receivables.  
(i)    Seller shall timely and fully comply with and perform its obligations, covenants and other promises under the Contracts relating to the Purchased Receivables and the Credit and Collection Policies except insofar as any failure so to comply or perform would not materially and adversely affect the rights of Buyer. 
(ii)    Seller will not amend, modify or waive in any material respect any term or condition relating to payments under or enforcement of any Contract related thereto.
(i)    Notice of Liens.  Seller shall notify the Buyer promptly after becoming aware of any Lien arising through or under Seller on any Purchased Receivables other than the conveyances hereunder.
(j)    Documentation of Transfer.  Seller shall timely file in all appropriate filing offices the documents which are necessary or advisable to perfect and maintain the perfection of the security interest granted by Seller under Paragraph 6(a) of the Master Repurchase Agreement in favor of Buyer in the Purchased Receivables.
(k)    Changes Concerning Seller.  Seller will not change its (i) jurisdiction of organization, (ii) name  or (iii) type of organization, unless it shall have notified Buyer of the same and delivered to Buyer all financing statement amendments and other documents necessary to maintain the perfection of the security interest granted  by Seller under Paragraph 6(a) of the Master Repurchase Agreement in favor of Buyer under the Transaction Agreements in connection with such change or relocation without giving Buyer not less than 45 days’ prior written notice of such change.
(l)    Compliance with Laws.  So long as any Transaction is outstanding, Seller will comply in all material respects with all applicable laws, rules, regulations and orders and preserve and maintain its existence, rights, franchises, qualifications, and privileges except to the extent that the failure so to comply with such laws, rules and regulations or the failure so to preserve and maintain such existence, rights, franchises, qualifications and privileges would not materially adversely affect the collectability of the Purchased Receivables or the ability of Seller to perform its obligations under the Transaction Agreements in all material respects.
(m)    Taxes.  Subject to the provision by Buyer of the IRS Form W-8ECI in accordance with Section 3.3 and any other relevant tax forms and related documentation confirming its exemption from withholding Taxes (including, without limitation, withholding Taxes under FATCA), Seller will pay all Taxes (other than Excluded Taxes) and Seller shall indemnify and hold Buyer harmless from and against any Taxes (for the avoidance of doubt, other than Excluded Taxes), including any Taxes payable in connection with Purchased Receivables or the sale thereof contemplated by the Transaction Agreements.  
(n)    Margin Reporting.  So long as any Transaction is outstanding, Seller shall promptly following the later of (x) two (2) Business Days following after such Business Day and (y) having actual knowledge thereof notify Buyer in writing if, as of any Business Day, the aggregate Market Value of such the applicable Transaction Portfolio (after giving effect to any transfer of Additional Purchased Receivables pursuant to Paragraph 4(a) of the Master Repurchase Agreement) decreases to an extent sufficient to require the transfer of cash pursuant to Paragraph 4(a) of the Master Repurchase Agreement.
(o)    Request to Deliver Full Portfolio Report.  So long as any Transaction is outstanding, if requested by Buyer from time to time, Seller shall, within five (5) Business Days of such request, deliver to Buyer an updated Full Portfolio Report for the applicable Transaction, which shall include a complete listing of all Purchased Receivables comprising the Transaction Portfolio as of the last day of the month immediately preceding the date on which such updated Portfolio Report is delivered and shall indicate the Market Value of the Transaction Portfolio as of such date; provided, that, so long as no Event of Default has occurred and is continuing, Buyer shall make such interim reporting request no more than once during any 12-month period. 

(p)    Amendments to Securitization Facility Documents.  Seller shall deliver (or cause to be delivered) to Buyer written notice of any actual or contemplated material amendment, supplement or other modification to any Securitization Facility Document (including a copy of such amendment, supplement or other modification) no less than five (5) Business Days (or such shorter period of time as may be consented to in writing by Buyer) prior to such amendment, supplement or other modification becoming effective, in each case to the extent such amendment, supplement or other modification could affect the sale of Seller Receivables contemplated hereby; provided that Buyer shall at the request of Seller execute a non-disclosure agreement to the extent required by any applicable confidentiality covenants. 
(q)    Mergers, Sales, Etc.  Any Person into which the Seller may be merged or consolidated, or any entity resulting from such merger or consolidation to which the Seller is a party, or any Person succeeding to the business of the Seller, shall be successor to the Seller hereunder, without execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding; provided that Seller shall not merge or consolidate with or into any Person without giving Buyer not less than 45 days’ prior written notice thereof. 
(r)    Sanctions.  Seller shall not directly or knowingly indirectly, use the proceeds of any Transaction, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other individual or entity, to fund any activities of or business with any individual or entity, or in any Designated Jurisdiction, that, at the time of such Transaction, is the subject of Sanctions, or in any other manner that will result in a violation of any applicable Sanctions by any individual or entity (including any individual or entity participating in the transactions contemplated by the Transaction Agreements).
6.    Reserved.
7.    Certain Calculations.
7.1    Buyer shall calculate the Funded Purchase Prices, and all other amounts to be calculated under the Transaction Agreements, as well as any adjustments thereto, which calculations shall be conclusive absent manifest error.  Upon the reasonable request of Seller, Buyer shall promptly provide such calculations to Seller.
8.    Miscellaneous. 
8.1    Further Assurances.  Subject to Paragraph 6(d) of the Master Repurchase Agreement, Seller agrees that from time to time it will promptly execute and deliver such other documents and instruments, all instruments and documents, and take all further action that Buyer may reasonably request, to carry out the purpose and intent of the Transaction Agreements, including in order to perfect, protect or more fully evidence Buyer’s interest in the Purchased Receivables and any proceeds thereof. 
8.2    Expenses.  Seller shall, promptly following written demand thereof, which shall be accompanied by reasonable detail with respect thereto, pay all reasonably incurred costs, liabilities, losses, damages and expenses (including reasonable and documented fees and expenses of its outside counsel) incurred or suffered by Buyer in connection with (x) any amendments of the Transaction Agreements or any related documents after the Effective Date or (y) the occurrence of an Event of Default or the exercise of any remedies under the Transaction Agreements in connection therewith. Seller shall pay the reasonable and documented fees and expenses of its outside counsel incurred in connection with the negotiation, execution and delivery of the Transaction Agreements which amounts shall be paid on the Effective Date to the extent an invoice is received therefor no later than the Business Day prior to the Effective Date and otherwise no later than five (5) Business Days following receipt of such invoice.
8.3    Entire Agreement.  This Framework Agreement, together with the other Transaction Agreements, constitutes the entire agreement between the Parties and supersedes all prior oral and written negotiations, communications, discussions, and correspondence pertaining to the subject matter of the Transaction Agreements.
8.4    Order of Precedence.  If there is a conflict between this Framework Agreement and any other Transaction Agreement, this Framework Agreement will control unless the conflicting provision of the other Transaction Agreement specifically references the provision of this Framework Agreement to be superseded.
8.5    Amendments and Waivers.   No amendment, supplement, modification or waiver of any provision of this Framework Agreement or any other Transaction Agreement, and no consent to any departure by Seller or Guarantor therefrom, shall be effective unless in writing signed by Buyer and Seller and/or Guarantor, as the case may be, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.
8.6    Binding Effect.  The Transaction Agreements will be binding upon and inure to the benefit of the Parties and their respective successors, and permitted assigns.
8.7    Assignment. Except as provided in this Framework Agreement or any other Transaction Agreement, neither this Framework Agreement nor any other Transaction Agreement, respectively, may be assigned or otherwise transferred, nor may any right or obligation hereunder or under another Transaction Agreement be assigned or transferred by any Party without the consent of the other Party.  Any permitted assignee shall assume all obligations of its assignor under this Framework Agreement; provided, that if an Event of Default shall have occurred and be continuing, Buyer may assign all or any portion of its rights and obligations under any Transaction Agreement without the consent of Seller.  Any attempted assignment not in accordance with this Section 8.7 shall be void.

8.8    Notices.  All notices, requests, demands, and other communications required or permitted to be given under any of the Transaction Agreements to any Party must be in writing delivered to the applicable Party at the following address:

If to Buyer:
    
						
	MUFG Bank, Ltd., New York Branch
	1251 Avenue of the Americas
	New York, New York 10020-1104
	Attention:	Thomas Giuntini
	E-Mail:	TGiuntini@us.mufg.jp

If to Seller:        
USCC EIP LLC
30 N. LaSalle, Suite 4000
Chicago, IL 60602
Attention:  John M. Toomey 
Telephone: 312-592-5308
Facsimile: 608-830-5530
Electronic Mail:  John.Toomey@tdsinc.com
With a copy to (which shall not constitute notice):
USCC EIP LLC
8410 West Bryn Mawr Avenue
Chicago, Illinois  60631
Attention:  Doug Chambers 
Telephone: (773) 399-8930
Electronic Mail:  doug.chambers@uscellular.com
and

Sidley Austin LLP
One S. Dearborn Street
Chicago, Illinois  60603
Attention:  John P. Kelsh, General Counsel 
Telephone: (312) 853-7097
Facsimile:  (312) 853-7036
Electronic Mail:  jkelsh@sidley.com  

or to such other address as such Party may designate by written notice to each other Party.  Each notice, request, demand, or other communication will be deemed given and effective, as follows: (i) if sent by hand delivery, upon delivery; (ii) if sent by first-class U.S. Mail, postage prepaid, upon the earlier to occur of receipt or three days after deposit in the U.S. Mail; (iii) if sent by a recognized prepaid overnight courier service, one Business Day after the date it is given to such service; (iv) if sent by facsimile, upon receipt of confirmation of successful transmission by the facsimile machine; and (v) if sent by e-mail, upon acknowledgement of receipt by the recipient.
8.9    GOVERNING LAW.  THIS FRAMEWORK AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAW PROVISIONS THEREOF OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW.
8.10    Jurisdiction.  Each Party hereby irrevocably and unconditionally:
(a)    submits for itself and its property in any legal action or proceeding relating to this Framework Agreement, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the state of New York located in the Borough of Manhattan in the City 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 in such courts and waives any objection that it may now or hereafter have to the venue of any 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 the applicable party at its respective address set forth in Section 8.8 or at such other address which has been designated in accordance therewith; and
(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.

8.11    WAIVER OF JURY TRIAL.  EACH PARTY HEREBY WAIVES ITS RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO ANY OF THE TRANSACTION AGREEMENTS OR THE TRANSACTIONS CONTEMPLATED BY THE TRANSACTION AGREEMENTS, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY EITHER PARTY AGAINST THE OTHER, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE.  EACH PARTY HEREBY AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION WILL BE TRIED BY A COURT TRIAL WITHOUT A JURY.  WITHOUT LIMITING THE PREVIOUS SENTENCE, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM, OR OTHER PROCEEDING THAT SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF ANY PORTION OF ANY TRANSACTION AGREEMENTS.  THIS WAIVER WILL APPLY TO ANY SUBSEQUENT AMENDMENT, RENEWAL, SUPPLEMENT, OR MODIFICATION TO ANY OF THE TRANSACTION AGREEMENTS.
8.12    Severability.  If any provision of a Transaction Agreement is held by a court of competent jurisdiction to be invalid, unenforceable, or void, that provision will be enforced to the fullest extent permitted by applicable Law, and the remainder of the applicable Transaction Agreement will remain in full force and effect.  If the time period or scope of any provision is declared by a court of competent jurisdiction to exceed the maximum time period or scope that that court deems enforceable, then that court will reduce the time period or scope to the maximum time period or scope permitted by Law.  
8.13    Survival.  The provisions of Section 5.3(f), Section 5.3(m) and this Article 8 shall survive any termination or expiration of this Framework Agreement and any of the other Transaction Agreements.
8.14    Counterparts.  This Framework Agreement shall be valid, binding, and enforceable against a party only when executed and delivered by an authorized individual on behalf of the party by means of (i) any electronic signature permitted by the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic Transactions Act, and/or any other relevant electronic signatures law, including relevant provisions of the Uniform Commercial Code (collectively, “Signature Law”); (ii) an original manual signature; or (iii) a faxed, scanned, or photocopied manual signature.  Each electronic signature or faxed, scanned, or photocopied manual signature shall for all purposes have the same validity, legal effect, and admissibility in evidence as an original manual signature.  Each Party shall be entitled to conclusively rely upon, and shall have no liability with respect to, any faxed, scanned, or photocopied manual signature, or other electronic signature, of any Party and shall have no duty to investigate, confirm or otherwise verify the validity or authenticity thereof. This Framework Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but such counterparts shall, together, constitute one and the same instrument.
8.15    Right of Setoff.  If an Event of Default shall have occurred and be continuing, Buyer is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable Requirements of Law, to set off any obligations at any time owing by Buyer to or for the credit or the account of the Seller (other than obligations of Buyer arising under the Transaction Agreements) against any and all of the obligations of the Seller now or hereafter existing under this Framework Agreement or any other Transaction Agreement to Buyer, irrespective of whether or not Buyer shall have made any demand under this Framework Agreement or any other Transaction Agreement.  The rights of Buyer under this Section 8.15 are in addition to other rights and remedies (including other rights of setoff) that Buyer may have.  Buyer agrees to notify Seller promptly after any such setoff and application; provided, that the failure to give such notice shall not affect the validity of such setoff and application.
8.16    Extensions of Facility Expiration Date.  Notwithstanding anything in Section 8.5 to the contrary, on or before the date that is thirty (30) days prior to the Current Facility Expiration Date, the Parties hereto may, in their sole discretion, upon mutual written agreement, extend the Scheduled Facility Expiration Date then in effect for an additional Extension Period beyond the Current Facility Expiration Date, with such extension to become effective on the Current Facility Expiration Date.
8.17    USA PATRIOT Act. Buyer hereby notifies Seller that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies Seller and Guarantor, which information includes name and address and other information that will allow Buyer to identify Seller and Guarantor, as applicable, in accordance with the Patriot Act. Seller shall, promptly following a request by the Buyer, provide all documentation and other information that the Buyer requests in order to comply with its ongoing obligations under applicable Anti-Terrorism Laws, including the Patriot Act.
[SIGNATURE PAGES FOLLOW]

 

IN WITNESS WHEREOF, the Parties have executed this Framework Agreement as of the date first written above.
						
	Buyer:	
		
	MUFG BANK, LTD., NEW YORK BRANCH

	

	
	By:	/s/ Thomas Giuntini
	Name:	Thomas Giuntini
	Title:	Managing Director

[SIGNATURE PAGES CONTINUE ON FOLLOWING PAGE]

 

IN WITNESS WHEREOF, the Parties have executed this Framework Agreement as of the date first written above.

						
	Seller:	
		
	USCC EIP LLC
	

	
	By:	/s/ Douglas W. Chambers
	Name:	Douglas W. Chambers
	Title:	Authorized Person of USCC EIP LLC and Executive Vice President, Chief Financial Officer and Treasurer of United States Cellular Corporation
		
		
	By:	/s/ John M. Toomey
	Name:	John M. Toomey
	Title:	Authorized Person of USCC EIP LLC and Vice President and Treasurer of Telephone and Data Systems, Inc.

 

SCHEDULE 1
DEFINITIONS 
As used in the Transaction Agreements, the following terms have the following meanings unless otherwise defined in any Transaction Agreement: 
“Additional Purchased Receivables” has the meaning set forth in the Master Repurchase Agreement.
“Affiliate” means, with respect to any specified Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, another Person or a Subsidiary of such other Person; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.  A Person shall be deemed to control another Person if the controlling Person owns, directly or indirectly, 10% or more of any class of voting securities of the controlled Person or possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of the controlled Person, whether through ownership of stock or otherwise.
“Anti-Terrorism Laws” means any Requirements of Law relating to financing terrorism, “know your customer” or money laundering, including Executive Order No. 13224, the Patriot Act, the Laws comprising or implementing the Bank Secrecy Act, and the Laws administered by the United States Treasury Department’s Office of Foreign Asset Control.
“Bankruptcy Code” means title 11 of the United States Code, 11 U.S.C. §§ 101 et seq.
“Beneficial Ownership Rule” means 31 C.F.R. § 1010.230.
“Business Day” means any day other than (i) a Saturday or Sunday or (ii) any other day on which national banking associations or state banking institutions in New York City, New York or Chicago, Illinois  are authorized or obligated by law, executive order or governmental decree to be closed.
“Buyer” has the meaning set forth in the Preamble.
“Category A Receivables” means each Seller Receivable arising under a Contract with a sales credit class rated A, AC or E (Business Major and Regular only) as reflected on Seller’s books and records. 
“Category B Receivables” means each Seller Receivable arising under a Contract with a sales credit class rated B, J, or K as reflected on Seller’s books and records.
“Category C Receivables” means each Seller Receivable arising under a Contract with a sales credit class rated D, DL, DM, BC, C, or E (Consumer and Sole Owner only) as reflected on Seller’s books and records. 
“Category D Receivables” means each Seller Receivable arising under a Contract with a sales credit class rated CC, DC, L, L2, L3, LH, LM, M, M2, M3, MM, N, O, Y, or Z as reflected on Seller’s books and records.
“Category E Receivables” means each Seller Receivable arising under a Contract with a sales credit class rated X, X1, X2, X3, XC, XL, or XM as reflected on Seller’s books and records. 
“Category F Receivables” means Seller Receivables not having the characteristics of any Seller Receivables in any other Receivables Category.
“Collateral” has the meaning set forth in the Master Repurchase Agreement.
“Collections” means, with respect to any Receivable, any payments (or equivalent) made by or on behalf of the related Obligor with respect to such Receivable, in the form of cash, checks, wire transfers, electronic transfers, ATM transfers or any other form of payment in accordance with a Contract in effect from time to time, and any other cash proceeds of such Receivable, including recoveries in respect of Defaulted Receivables and cash proceeds of Related Rights with respect to such Receivable.
“Confirmation” has the meaning set forth in the Master Repurchase Agreement.
“Consolidated Affiliate” means, with respect to any Person, each Affiliate of such Person (whether now existing or hereafter created or acquired) the financial statements of which are (or should be) consolidated with the financial statements of such Person in accordance with GAAP.  
“Contract” means with respect to a Receivable, the retail installment contract, credit sale contract, retail installment obligation, or retail installment sale agreement or any other agreement between an Originator and an Obligor pursuant to or under which such Obligor shall be obligated to pay for a wireless communication device sold by such Originator, along with the agreements between the Originator or an Affiliate of such Originator and the related Obligor governing the terms and conditions of such contract, as such agreements or statements may be amended, modified or otherwise changed from time to time.
“Credit and Collection Policies” means, with respect to the Receivables and Related Rights, those policies and procedures of the Servicer (or one of its Affiliates) relating to the operation of its retail equipment installment plan sales contract financing business, including the established policies and procedures for determining the creditworthiness of sales contract customers, and relating to the origination, underwriting, servicing, administration, and maintenance of and collection of retail equipment installment plan sales contract receivables, as such policies and procedures may be amended, modified, or otherwise changed from time to time.

 

“Credit Facility Documents” means the First Amended and Restated Credit Agreement dated as of July 20, 2021 among Guarantor, each lender from time to time party thereto, Toronto Dominion (Texas) LLC, as Administrative Agent, and The Toronto-Dominion Bank, New York Branch, as L/C Issuer and as Swing Line Lender and each Guaranty (as defined therein). 
“Current Facility Expiration Date” means, as of any time of determination, the Scheduled Facility Expiration Date (taking into account any prior extensions of the Scheduled Facility Expiration Date pursuant to Section 8.15).
“Defaulted Receivable” shall mean, as of any date of determination, any Receivable (without duplication) which (a) is sixty-one (61) days or more past due, (b) has been charged off as uncollectible in accordance with the Credit and Collection Policies, or (c) has been identified as fraudulent and has not been otherwise written-off or adjusted as of such date.
“Delinquent Receivable” means, as of any date of determination, any Receivable (without duplication) which  is thirty-one (31) days or more past due, but less than sixty (60) days past due, after its original Due Date, as of the last day of the most recently ended calendar month.
“Designated Jurisdiction” shall mean any country or territory to the extent that such country or territory itself is the subject of any Sanction.
“Dilutions” means, with respect to any Receivable, the aggregate amount of any reductions or adjustments in the Receivable Balance of such Receivable,  including as a result of any defective, rejected, returned, repossessed or foreclosed goods or any credit, rebate, sales allowance, discount or other adjustment or setoff.
“Due Date” means, with respect to any Receivable, any date on which such Receivable becomes due and payable pursuant to the corresponding Invoice.
“Eligibility Criteria” means the criteria set forth in Part 2 of Schedule 3.
“Eligible Receivable” means, as of any time of determination, a Seller Receivable that meets all of the Eligibility Criteria as of the applicable time of determination.
“Event of Default” means any of the following:
(a)    Seller or Guarantor shall have failed to pay any Repurchase Price (other than the portion thereof attributable to Price Differential) or Margin Payment in respect of any Transaction when and as the same shall become due and payable and, in the case of the failure to pay any Margin Payment, such failure shall continue unremedied for a period of three (3) or more Business Days;
(b)    Seller or Guarantor shall have failed to pay any portion of Repurchase Price attributable to Price Differential, any fee required to be paid under the Fee Letter, any amount required to be refunded pursuant to Section 4.2(c) hereof, or any other amounts owing under any Transaction Agreement (other than amounts specified in clause (a) of this definition), in each case, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five (5) or more Business Days;
(c)    [reserved];
(d)    Seller or Guarantor shall fail to observe or perform any covenant, condition or agreement contained in this Framework Agreement or any other Transaction Agreement (excluding any covenants, conditions or agreements specified in clauses (a), (b) or (c) of this definition) and such failure shall continue unremedied for a period of thirty (30) or more days;
(e)    any representation or warranty made or deemed made by or on behalf of Seller or Guarantor in or in connection with this Framework Agreement or any other Transaction Agreement shall prove to have been incorrect in any material respect when made or deemed made, and such failure to be correct shall continue unremedied for a period of thirty (30) or more days; 
(f)    the grant by Seller if favor of Buyer of the security interest pursuant to Paragraph 6(a) of the Master Repurchase Agreement shall cease to be perfected with respect to any material portion of the Collateral , except to the extent released in accordance with, or in connection with a disposition permitted under, the Transaction Agreements;
(g)    an Event of Insolvency shall occur with respect to Seller or Guarantor; 
(h)    the Guaranty shall cease to be in full force and effect, or its validity or enforceability shall be disputed by Seller or Guarantor;
(i)    Seller shall cease to be a wholly-owned direct or indirect subsidiary of Guarantor;
(j)    an “Event of Default” shall occur and be continuing under any Credit Facility Document if the effect of such “Event of Default” is to cause the indebtedness under such Credit Facility Document to be declared or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise) prior to its stated maturity or cash collateral in respect thereof to be demanded.
“Excluded Taxes” means any of the following Taxes imposed on or with respect to an Indemnified Person or required to be withheld or deducted from a payment to an Indemnified Person: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes and branch profits Taxes, in each case, (i) imposed as a result of such Indemnified Person being organized under the laws of, or having its principal office in the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Indemnified Person pursuant to a law in effect on the Effective Date, (c) Taxes attributable to such Indemnified Person’s failure to provide relevant IRS forms and related documentation, and (d) any Taxes imposed pursuant to FATCA.

 

“Extension Period” means, with respect to any extension of the Scheduled Facility Expiration Date pursuant to Section 8.15, the period commencing on (and including) the Current Facility Expiration Date (prior to giving effect to such extension) and expiring on (but excluding) the anniversary of such Current Facility Expiration Date.
“Facility Expiration Date” means the Scheduled Facility Expiration Date in effect from time to time; provided, that (i) the Facility Expiration Date shall be deemed to have occurred on the first date (if any) upon which a Repurchase Date shall be deemed to occur pursuant to Paragraph 11 of the Master Repurchase Agreement, and (ii) on any Business Day Buyer may deliver a written notice to Seller terminating the Facility Term as of the date that is thirty (30) days following the receipt by Seller of such notice, in which case the Facility Expiration Date shall be deemed to occur on the last day of such thirty-day period.
“Facility Term” means the period beginning on the Effective Date and ending on the Facility Expiration Date.
“Fee Letter” means that certain Fee Letter Agreement dated as of the Effective Date, by and between Seller and Buyer.
“Framework Agreement” has the meaning set forth in the Preamble.
“Full Portfolio Report” means a report substantially in the form attached as Exhibit B to this Framework Agreement.  The Full Portfolio Report shall set forth information with respect to the Purchased Receivables as of the end of the most recently ended calendar month.
“Funded Purchase Price” means, with respect to any Transaction entered into (or proposed to be entered into) on any Purchase Date, the excess of (a) the Purchase Price for such Transaction over (b) the amount of Repurchase Price under any Transaction whose Repurchase Date coincides with such Purchase Date which is netted against such Purchase Price in accordance with Paragraph 12 of the Master Repurchase Agreement (any such netting being subject to Paragraph 12 of Annex I to the Master Repurchase Agreement).
“Funded Repurchase Price” means, with respect to any Transaction expiring on any Repurchase Date, the excess of (a) the Repurchase Price for such Transaction over (b) the amount of any Purchase Price under any other Transaction whose Purchase Date coincides with such Repurchase Date which is netted against such Repurchase Price in accordance with Paragraph 12 of the Master Repurchase Agreement (any such netting being subject to Paragraph 12 of Annex I to the Master Repurchase Agreement).
“Funding Conditions” has the meaning set forth in Section 4.3(a).
“GAAP” means generally accepted accounting principles as applied in the United States. 
“Governmental Authority” means the United States of America, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.
“Guarantor” means United States Cellular Corporation, a Delaware corporation.
“Guaranty” means that certain Guaranty, dated as of the Effective Date, executed by Guarantor in favor of Buyer.
“Insolvency Event” means, with respect to any Person:
(a)    such Person shall file a petition commencing a voluntary case under any chapter of the federal bankruptcy laws; or such Person shall file a petition or answer or consent seeking reorganization, arrangement, adjustment, or composition under any other similar Insolvency Law, or shall consent to the filing of any such petition, answer, or consent; or such Person shall appoint, or consent to the appointment of, a custodian, receiver, liquidator, trustee, assignee, sequestrator or other similar official in bankruptcy or insolvency of it or of any substantial part of its property; such Person shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due; or
(b)    the commencement by a court having jurisdiction in the premises of an action seeking:  (i) a decree or order for relief in respect of such Person in a case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization, or other similar law, (ii) the appointment of a custodian, receiver, liquidator, conservator, assignee, trustee, sequestrator, or other similar official of such Person or (iii) the winding up or liquidation of the affairs of such Person, and notwithstanding the objection by such Person, any such action shall have remained undischarged or unstayed for a period of sixty (60) consecutive days or any order or decree providing the sought after relief, remedy or other action shall have been entered.
“Insolvency Law” means (a) the Bankruptcy Code and any other applicable federal or state liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, suspension of payments, readjustment of debt, marshalling of assets, assignment for the benefit of creditors and similar debtor relief laws from time to time in effect in any jurisdiction affecting the rights of creditors generally.
“Invoice” means, with respect to any Receivable, the monthly bill related to such Receivable issued by or on behalf of the Servicer to the related Obligor.
 “Lien” means any security interest, mortgage, deed of trust, pledge, hypothecation, assignment, deposit arrangement, equity interest, encumbrance, lien (statutory or other), preference, participation interest, priority or other security agreement or preferential arrangement of any kind or nature whatsoever, including any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing and the filing of any financing statement under the UCC or comparable law of any jurisdiction to evidence any of the foregoing.
“Margin Deficit” has the meaning set forth in the Master Repurchase Agreement.

 

“Margin Payment” means any cash required to be transferred by Seller to Buyer pursuant to Paragraph 4(a) of the Master Repurchase Agreement.
“Market Value” has the meaning set forth in the Master Repurchase Agreement.
“Master Repurchase Agreement” means that certain 1996 SIFMA Master Repurchase Agreement dated as of January 26, 2022, between Seller and Buyer, including Annex I thereto (and as amended thereby).
“Maximum Purchase Price” means $200,000,000.
“Monthly Date” means the last Business Day of each calendar month.
“Obligor” means, with respect to any Receivable and the related Contract, the Person or Persons party to the Contract who is (are) obligated to make payments with respect to such Receivable.
“OFAC” means the Office of Foreign Assets Control of the U.S. Department of the Treasury.
“Ordering Priority” means the selection of Unsold Receivables in accordance with the following order of priority: 
(a) such Unsold Receivables consisting of (i) Category A Receivables shall be selected before any other  Unsold Receivables, (ii) Category B Receivables shall be selected prior to any other Unsold Receivables (other than Category A Receivables), (iii) Category C Receivables shall be selected prior to any other Unsold Receivables (other than Category A Receivables and Category B Receivables), (iv) Category D Receivables shall be selected prior to any other Unsold Receivables (other than Category A Receivables, Category Receivables and Category C Receivables), (iv) Category E Receivables shall be selected prior to Category F Receivables, and (v) Category F Receivables shall be selected if there are no other Unsold Receivables in any other Receivables Category; and  
 (b) within each Receivables Category, such Unsold Receivables shall be selected based on the Origination Date (i.e., the earliest originated Receivable shall be selected first) and if Unsold Receivables have the same Origination Date, Unsold Receivables shall selected in descending order of the Receivable Balance thereof, with the Unsold Receivable having the highest Receivable Balance being selected first and the Unsold Receivable having the lowest Receivable Balance being selected last.
 “Organizational Documents” means a Party’s articles, certificate of incorporation or certificate of formation and its by-laws, limited liability company agreement or similar governing instruments required by the laws of its jurisdiction of formation or organization.
“Origination Date” means, with respect to any Receivable, the date on which the Contract with respect thereto is entered into.
“Originator” or “Originators” means each Person party to the Receivables Sale Agreement from time to time as an “Originator”.
“Patriot Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001).
“Party” and “Parties” have the meaning set forth in the Preamble.
“Permitted Business Day” means any Business Day that is at least five (5) Business Days prior to the next Monthly Date or the Facility Expiration Date and which is not a Business Day on which a Transaction is then scheduled to be in effect. 
“Person” means any person or entity, including any individual, corporation, limited liability company, partnership, joint venture, association, joint stock company, trust, unincorporated organization, governmental entity or other entity of any nature.
“Portfolio Report” means (x) in the case of the initial Transaction, a Full Portfolio Report and (y) otherwise, a Summary Portfolio Report.
“Potential Event of Default” means the occurrence of any event that, with the giving of notice or lapse of time, would become an Event of Default.
“Price Differential” has the meaning set forth in the Master Repurchase Agreement.
“Proceeding” means any suit in equity, action at law or other judicial or administrative proceeding.
“Purchase Date” has the meaning set forth in the Master Repurchase Agreement.
“Purchase Time” means, with respect to any transfer of Receivables on a Purchase Date or pursuant to Paragraph 4(a) of Annex I to the Master Repurchase Agreement, the time of day on such Purchase Date or such day when Receivables are transferred to Buyer pursuant to Paragraph 4(a) of Annex I to the Master Repurchase Agreement specified in the definition of Ordering Priority and Paragraph 4(a), respectively.    
“Purchase Price” has the meaning set forth in the Master Repurchase Agreement.
“Purchased Receivables” has the meaning set forth in the Master Repurchase Agreement.

 

“Receivable” means  any indebtedness, payment obligation or other amounts payable by an Obligor from time to time in connection with a Contract, including amounts payable for Scheduled Payments, whether constituting an account, chattel paper, instrument, payment intangible or general intangible arising out of or in connection with the sale of new or used retail equipment installment plan sales contracts, which is sold from time to time by the applicable Originator to the Seller pursuant to the Receivables Sale Agreement, and in each case identified on the applicable Portfolio Report delivered pursuant to the Transaction Agreements. 
“Receivable Balance” means, with respect to any Receivable, as of any date or time of determination the sum of the unpaid Scheduled Payments thereon, which, for the avoidance of doubt, shall be net of any Dilutions in respect thereof, in each case, as of such date or time of determination, as applicable; provided, that in the case of Receivables relating to Obligors and related devices that are eligible for a device upgrade pursuant to the terms of the related Contract, the Receivable Balance shall mean only the amount of the unpaid Scheduled Payments owing by such Obligor prior to the date on which the Contract becomes eligible for an upgrade; provided further, that the Receivable Balance of any Receivable may not exceed the outstanding principal amount, if any, owing by the related Obligor, and provided further, that the Receivable Balance of any Receivable which is an Ineligible Receivable as of such date or time of determination, as applicable, shall be zero. 
“Receivables Category” means Category A Receivables, Category B Receivables, Category C Receivables, Category D Receivables, Category E Receivables or Category F Receivables. 
“Receivables Sale Agreement” means that certain Receivables Sale Agreement, dated as of March 17, 2017, among each of the initial Originators named therein (and such additional Originators that may become party thereto from time to time), as sellers, and USCC EIP LLC, as purchaser.
“Related Rights” means, with respect to any Receivable, all of Seller’s right, title and interest in, to and under:
(a)    the related Contract (but not Seller’s or the applicable Originator’s obligations, if any, under such Contract), all property (other than, in each case, any wireless device or Surrendered Device and any insurance contract related thereto), security interests, hypothecations, reservations of ownership, liens or other adverse claims and property subject thereto from time to time purporting to secure payment of such Receivable, whether pursuant to the contract pursuant to which such Receivable was originated, together with all financing statements, registrations, hypothecations, charges or other similar filings or instruments against an Obligor and all security agreements describing any collateral securing such Receivable, if any;
(b)    all guarantees, letters of credit, insurance and other agreements or arrangements of whatever character from time to time supporting or securing payment of such Receivable whether pursuant to the Contract related to such Receivable or otherwise;
(c)    all Collections with respect to such Receivable;
(d)    all rights under the related Contract and related assignment as they relate to such Receivable; and
(e)    all of Seller’s right, title and interest in, to and under the Receivables Sale Agreement, including, without limitation, all amounts due or to become due to Seller from the applicable Originator under the Receivables Sale Agreement and all rights, remedies, powers, privileges and claims of Seller against any Originator under the Receivables Sale Agreement (whether arising pursuant to the terms of the Receivables Sale Agreement or otherwise available to Seller at law or in equity).
“Repurchase Date” has the meaning set forth in the Master Repurchase Agreement.
“Repurchase Price” has the meaning set forth in the Master Repurchase Agreement.
“Requirements of Law” means, as to any Person, any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject, whether federal, state or local (including usury laws and the federal Truth in Lending Act).
“Sanctions” shall mean any economic or financial sanctions or trade embargoes imposed, administered or enforced by the United States Government (including without limitation, OFAC), the United Nations Security Council, the European Union, Her Majesty’s Treasury (“HMT”) or other relevant sanctions authority.
“Scheduled Facility Expiration Date” means January 31, 2023, as such date may be extended from time to time pursuant to Section 8.15.
“Scheduled Payment” on a Receivable means the scheduled periodic payment of principal and, if applicable, interest, required to be made by the Obligor.
“Securitization Facility Documents” means (i) the Master Indenture, dated as of December 20, 2017, among USCC Master Note Trust, USCC Services, LLC and U.S. Bank National Association, as Indenture Trustee, as the same may be amended, supplemented or otherwise modified from time to time and (ii) the Receivables Purchase Agreement dated as of December 20, 2017 between Seller and USCC Receivables Funding LLC.
“Securitization Transfer Notice” means a notice in the form of Exhibit D hereto identifying Receivables that are to be transferred pursuant to the Securitization Facility Documents and specifying the date  on which such Receivables are to be so transferred.
“Seller” has the meaning set forth in the Preamble.
“Seller Receivable” means a Receivable owned by Seller.

 

“Servicer” has the meaning set forth in the Master Repurchase Agreement.
“Subject Receivable” has the meaning set forth in the Master Repurchase Agreement.
“Subsidiary” means, as to any Person, any other Person that is controlled, directly or indirectly by such Person; and for purposes of this definition, the term “control” means: (a) the direct or indirect ownership of a majority of the Voting Shares of such Person, (b) having the right to appoint a majority of the board of directors or supervisory board or like board or body, or (c) having the power to direct the management and policies of such Person, whether through the ownership of such Voting Shares, by contract or otherwise.
“Summary Portfolio Report” means a report substantially in the form attached as Exhibit C to this Framework Agreement. The Summary Portfolio Report shall set forth information with respect to the Purchased Receivables as of the second Business Day prior to the delivery thereof. 
“Surrendered Device” means a qualifying device under a Contract that is traded in by the related Obligor in termination of its remaining payment obligations under the terms of such Contract.
“Tax” means all taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges payable to or imposed by any Governmental Authority, including any stamp, registration, documentation, sales, use, excise or similar taxes and inclusive of any interest, additions to tax, penalties or fines applicable thereto.
“Transaction” has the meaning set forth in the Master Repurchase Agreement.
“Transaction Agreements” has the meaning set forth in Section 2.1.
“Transaction Notice” has the meaning set forth in Section 4.1.
“Transaction Period” has the meaning set forth in the Master Repurchase Agreement.
“Transaction Portfolio” means, with respect to any Transaction, the portfolio of Receivables comprising the Purchased Receivables acquired by Buyer in connection with such Transaction in accordance with the terms of the Master Repurchase Agreement and applicable Confirmation, which shall consist of (i) Seller Receivables that are Eligible Receivables selected as Purchased Receivables as of the applicable Purchase Date, which selection shall occur by application of the Ordering Priority at 9:00 a.m. on such Purchase Date until the aggregate Market Value of the Receivables selected equals or exceeds 125% of the applicable Purchase Price for such Transaction (it being understood that no determination regarding the Purchased Receivables so selected (including the identification thereof) shall be required to be made for any purpose under this Agreement or any other Transaction Agreement prior to two (2) Business Days following the applicable Purchase Date) and (ii) all additional Seller Receivables subsequently transferred by Seller to Buyer as Additional Purchased Receivables during the Transaction Period for such Transaction pursuant to Paragraph 4(a) of the Master Repurchase Agreement (it being understood that no determination regarding the Additional Purchased Receivables so transferred (including the identification thereof) shall be required to be made for any purpose under this Agreement or any other Transaction Agreement prior to two (2) Business Days following the applicable Transfer Date) (including any such Seller Receivables reflected as having been so transferred in any Portfolio Report delivered by Seller), in each case, together with all Related Rights pertaining to such Receivables; provided, that any such Receivables and Related Rights that are re-transferred to Seller pursuant to Paragraph 4(f) of Annex I to the Master Repurchase Agreement in connection with Seller’s delivery of a Securitization Transfer Notice shall thereafter cease to be included in such Transaction Portfolio.
“Transfer Date” means, with respect to any Receivable included (or proposed to be included) in the Transaction Portfolio for any Transaction (x) if such Receivable is included in the Transaction Portfolio as of such Purchase Date, the Purchase Date for such Transaction or (y) if such Receivable is not included in the Transaction Portfolio as of such Purchase Date, the date on which such Receivable is transferred from Seller to Buyer pursuant to Paragraph 4(a) of the Master Repurchase Agreement.
“UCC” means the Uniform Commercial Code, as amended from time to time, as in effect in any specified jurisdiction.
“Unsold Receivable” means, as of any date, a Seller Receivable that is an Eligible Receivable and that is not a Purchased Receivable subject to an outstanding Transaction as of such date and is not a Subject Receivable with respect to which Seller has delivered a Securitization Transfer Notice; provided, that for purposes of applying the Ordering Priority on any Purchase Date that coincides with the Repurchase Date for an expiring Transaction, the Seller Receivables then constituting Purchased Receivables subject to such expiring Transaction shall be deemed to be Unsold Receivables as of the applicable Purchase Time. 
“Voting Shares” means, with respect to any Person, any class or classes of capital stock or other ownership interests pursuant to which the holders thereof have the general voting power under ordinary circumstances to elect directors, managers or trustees of such Person (irrespective of whether or not, at the time, stock of any other class or classes has, or might have, voting power by reason of the happening of any contingency).

 

SCHEDULE 3

ELIGIBILITY CRITERIA
In order for a Receivable to meet the Eligibility Criteria in respect of any Transaction as of any date of determination, it must satisfy all of the following (in each case, as of such date of determination, or as otherwise provided below): 
(a)    it is in existence;
(b)    it is payable in United States dollars;
(c)    it has an Obligor that is (i) not a Consolidated Affiliate of Seller, (ii) if not a natural person, organized under the laws of the United States, a State thereof or the District of Columbia and (iii) as of the date specified in the Portfolio Report delivered in connection with the Transaction Date for the applicable Purchase Date, is not identified by the applicable Originator or Seller in its computer files as being the subject of a voluntary or involuntary bankruptcy proceeding;
(d)    as of the applicable Purchase Time, it is not a Delinquent Receivable;
(e)    it has not been identified by the applicable Originator or Seller or the relevant Obligor as having been incurred as a result of fraudulent use;
(f)    the sale, assignment or transfer of such Receivable by the applicable Originator or Seller does not require any consent or approval by the related Obligor and does not contain a confidentiality provision that restricts or purports to restrict the exercise of rights under the Contract by the holder of such Contract;
(g)    it has an Obligor that is in good standing;
(h)    it has not been charged off as uncollectible in accordance with the Credit and Collection Policies or otherwise written-off; 
(i)    it arises under a Contact that has an original term of no more than thirty-six (36) months;  
(j)    [reserved]; 

(k)    [reserved];
(l)    it has a Contract that relates to an agreement for service provided by an Affiliate of the Servicer, which requires the Obligor to maintain service with an Affiliate of the Servicer (a breach of which accelerates amounts due under the Contract), and which contains cross-default provisions with the related service agreement;
(m)    it was created in compliance in all material respects with the Servicer’s underwriting criteria and the Credit and Collection Policies and all Requirements of Law applicable to the applicable Originator and pursuant to a Contract which complies with all Requirements of Law applicable to the applicable Originator;
(n)    with respect to which all material consents, licenses, approvals or authorizations of, or registrations or declarations with, any Governmental Authority required to be obtained, effected or given by the applicable Originator or Seller in connection with the creation of such Receivable or the execution, delivery and performance by the applicable Originator or Seller of its obligations, if any, under the related Contract have been duly obtained, effected or given and are in full force and effect;
(o)    (i) as of the applicable Purchase Time, the applicable Originator has good and marketable title thereto free and clear of all liens, and (ii) at the time of the sale of such Receivable to Buyer, Seller has good and marketable title thereto free and clear of all liens;
(p)    it has been the subject of a valid sale and assignment from (i) the applicable Originator to Seller of all of such Originator’s right, title and interest therein and (ii) Seller to Buyer of all of Seller’s right, title and interest therein;
(q)    it is the legal, valid and binding payment obligation of the Obligor thereon, enforceable against such Obligor in accordance with its terms, except as such enforceability may be limited by applicable Insolvency Laws and except as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity);
(r)    it constitutes an “account,” “general intangible,” “payment intangible,” or “chattel paper” as defined in Article 9 of the UCC as then in effect in the State of Delaware and the State of New York;
(s)    as of the applicable Purchase Time, it has not been waived or modified except as permitted in accordance with the Credit and Collection Policies and which waiver or modification is reflected in the applicable Originator’s and the Seller’s computer file of retail installment sales contracts at the time of its sale to Buyer;
(t)    as of the applicable Purchase Time, it is not subject to any right of rescission, setoff, counterclaim or any other defense (including the defenses arising out of violations of usury laws), other than defenses arising out of applicable Insolvency Laws or other similar laws affecting the enforcement of creditors’ rights in general and except as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity);

(u)    (i) as to which, at the time of its sale to Seller, the applicable Originator has not taken any action which would impair, or omitted to take any action the omission of which would impair, the rights of the Seller therein, and (ii) as to which, as of the applicable Purchase Time, Seller has not taken any action which would impair, or omitted to take any action the omission of which would impair, the rights of Buyer therein;
(v)    as to which, (i) at the time of its sale to Seller, the applicable Originator has satisfied and fully performed all of its obligations under the related Contract, and (ii) as of the applicable Purchase Time, Seller has satisfied and fully performed all of its obligations under the related Contract (if any); and
(w)    it (i) was originated in the ordinary course of business from the sale of a device, and (ii) satisfies all of the requirements of the Credit and Collection Policies.

 

Exhibit A
Form of Transaction Notice

MUFG BANK, LTD., a Japanese limited company acting through its New York Branch, as Agent
RE:    Transaction under the Framework Agreement and the Master Repurchase Agreement

Ladies and Gentlemen:
This Transaction Notice is delivered to you pursuant to Section 4.1 of the Master Framework Agreement, dated as of January 26, 2022 (the “Framework Agreement”), by and between USCC EIP LLC, as seller (the “Seller”), and MUFG Bank, Ltd., New York Branch (“Buyer”), relating to repurchase transactions to be entered into pursuant to the terms of the 1996 SIFMA Master Repurchase Agreement, dated as of January 26, 2022, including Annex I thereto (the “Master Repurchase Agreement”) by and between Seller and Buyer.  Capitalized terms used but not defined herein have the meanings set forth in the Framework Agreement, or if not defined therein, in the Master Repurchase Agreement.
Seller hereby requests that, in accordance with the terms of the Framework Agreement, a Transaction under the Master Repurchase Agreement with a proposed Purchase Price of $__________________ be entered into on the proposed Purchase Date of _____________________, with a proposed Repurchase Date of ________________________.  Attached hereto is a completed Portfolio Report required to be delivered pursuant to Section 4.1(a).]

 

Exhibit B
FORM OF FULL PORTFOLIO REPORT

Reference is hereby made to (i) the Master Framework Agreement dated as of January 26, 2022 (the “Framework Agreement”) between USCC EIP LLC and MUFG Bank, Ltd., New York Branch and (ii) the 1996 SIFMA Master Repurchase Agreement dated as of January 26, 2022 (including, and as amended by, Annex I thereto, the “Master Repurchase Agreement”), between USCC EIP LLC and MUFG Bank, Ltd., New York Branch.  Capitalized terms used but not defined herein shall have the meaning set forth in the Master Repurchase Agreement.   In accordance with and subject to the terms and conditions of the Framework Agreement and the Master Repurchase Agreement, this report constitutes a “Full Portfolio Report” required to be delivered pursuant to Section 4.1(a) or Section 5.3(o) of the Framework Agreement, as applicable, and sets forth certain information with respect to the portfolio of Seller Receivables as of the date specified herein. 

Exhibit C
FORM OF SUMMARY PORTFOLIO REPORT
Reference is hereby made to (i) the Master Framework Agreement dated as of January 26, 2022 (the “Framework Agreement”) between USCC EIP LLC and MUFG Bank, Ltd., New York Branch and (ii) the 1996 SIFMA Master Repurchase Agreement dated as of January 26, 2022 (including, and as amended by, Annex I thereto, the “Master Repurchase Agreement”), between USCC EIP LLC and MUFG Bank, Ltd., New York Branch.  Capitalized terms used but not defined herein shall have the meaning set forth in the Master Repurchase Agreement.   In accordance with and subject to the terms and conditions of the Framework Agreement and the Master Repurchase Agreement, this report constitutes a “Summary Portfolio Report” required to be delivered pursuant to Section 4.1(a) of the Framework Agreement, as applicable, and sets forth certain information with respect to the portfolio of Seller Receivables as of the date specified herein. 

Exhibit D
FORM OF SECURITIZATION TRANSFER NOTICE
						
		

Dated:     [Date]    

To:    MUFG Bank, Ltd., New York Branch (“Buyer”)

Attention:    Thomas Giuntini
1251 Avenue of the Americas
New York, New York 10020-1104    
E-Mail:    TGiuntini@us.mufg.jp 

From:    USCC EIP LLC (“Seller”)
30 N. LaSalle, Suite 4000
Chicago, IL 60602
Attention:  John M. Toomey 
Telephone: 312-592-5308
Facsimile: 608-830-5530
Electronic Mail:  John.Toomey@tdsinc.com 

Re:    Securitization Transfer Notice 
____________________________________________________________________________________________

Dear MUFG Bank, Ltd., New York Branch:

This Securitization Transfer Notice (this “Notice”) is being delivered to you pursuant to Paragraph 4(f) of Annex I to that certain 1996 SIFMA Master Repurchase Agreement, dated as of January 26, 2022 (as amended by such Annex I and as further amended and supplemented from time to time, the “Master Repurchase Agreement”) between Buyer and Seller. Capitalized terms used but not defined in this Notice shall have the meanings set forth in the Master Repurchase Agreement. 

The purpose of this Notice is to notify Buyer that those Receivables set forth on Attachment 1 hereto are to be transferred pursuant to the Securitization Facility Documents on the date hereof (the “Securitization Transfer Date”). 

Any Subject Receivables identified in such Attachment 1 shall be automatically re-transferred to Seller from Buyer, and the security interest in such Subject Receivables (and in the Related Rights pertaining thereto) granted pursuant to Paragraph 6 of the Master Repurchase Agreement shall be automatically released as, when and to the extent provided in Paragraph 4(f) of Annex I to the Master Repurchase Agreement. 

Seller represents and warrants that upon giving effect to such re-transfer of Subject Receivables to Seller and the transfer of Additional Purchased Receivables on the Business Day prior to the Securitization Transfer Date, the Market Value (as of the second Business Day prior to such Business Day) of all Purchased Receivables subject to a Transaction will be at least equal to Buyer’s Margin Amount.

						
	Very truly yours,
		
	USCC EIP LLC
		
		
	By:	
		Name:
		Title

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