Exhibit 4.1


 


 


THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF
THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR QUALIFIED UNDER
ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT COVERING SUCH SECURITIES UNDER THE ACT AND ANY REQUIRED QUALIFICATION UNDER
APPLICABLE STATE AND FOREIGN LAW OR THE TRANSACTION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS UNDER
THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND AN OPINION SATISFACTORY TO THE ISSUER TO
SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.


 


Warrant


 





	Warrant No. W-001	Original Issue Date:  June 28, 2013







 








For
Value Received, First Internet Bancorp, an Indiana corporation
(the “Company”), hereby certifies that Community BanCapital, L.P.,
a Delaware limited partnership (together with its registered assigns as hereinafter provided, the “Holder”)
is entitled to purchase from the Company Forty-Eight Thousand Seven Hundred Fifty (48,750) duly authorized, validly issued,
fully paid and nonassessable shares of Common Stock at a per share price equal to Nineteen and Thirty-Three Hundredths Dollars ($19.33),
subject to adjustment as provided in Section 4 (the “Exercise Price” ),
all subject to the terms, conditions and adjustments set forth below in this Warrant. Certain capitalized terms used herein are
defined in Section 1.


 


This
Warrant has been issued pursuant to the terms of that certain Subordinated Debenture Purchase Agreement dated of even date herewith
(the “Purchase Agreement”) between the Holder and the Company.


 


Section 1.        
Definitions. As used in this Warrant, the following terms have the respective meanings set forth below:


 


“Aggregate
Exercise Price” means an amount equal to the product of: (a) the number of Warrant Shares in respect
of which this Warrant is then being exercised pursuant to Section 3, multiplied by (b) the Exercise Price.


 


“Bank” means
First Internet Bank, an Indiana chartered commercial non-member bank with its main office located in Indianapolis, Indiana.


 


“Board” means
the board of directors of the Company.


 


“Business
Day” means any day, except a Saturday, Sunday or legal holiday, on which banking institutions in the city
of Indianapolis, Indiana, are authorized or obligated by law or executive order to close.


 


“Change
in Control” has the meaning set forth in Section 2.


 


“Common
Stock” means the common stock, no par value per share, of the Company, and any capital stock into which such
Common Stock shall have been converted, exchanged or reclassified following the date hereof.


 


“Common
Stock Deemed Outstanding” means, at any given time, the sum of: (a) the number of shares of Common Stock
actually outstanding at such time; plus (b) the number of shares of Common Stock issuable upon exercise of Options actually
outstanding at such time; plus (c) the number of shares of Common Stock issuable upon conversion or exchange of Convertible Securities
actually outstanding at such time (treating as actually outstanding any Convertible Securities issuable upon exercise of Options
actually outstanding at such time), in each case, regardless of whether the Options or Convertible Securities are actually exercisable
at such time; provided, that Common Stock Deemed Outstanding at any given time shall not include shares owned or held by
or for the account of the Company or any of its wholly owned subsidiaries.


 






    	



    	 



    

 


 


“Company” has
the meaning set forth in the preamble.


 


“Convertible
Securities” means any securities (directly or indirectly) convertible into or exchangeable for Common Stock,
but excluding Options.


 


“Excluded
Issuances” means any issuance or sale by the Company after the Original Issue Date of: (a) shares of
Common Stock issued upon the exercise of this Warrant; (b) shares of Common Stock issued directly or upon the exercise of
Options to directors, officers, consultants or employees, in connection with their service as directors of the Company or their
employment by or consulting services to the Company, in each case authorized by the Board and issued pursuant to the First Internet
Bancorp 2013 Equity Incentive Plan as amended from time to time (including any successor equity incentive plan, the “Plan”),
including all such shares of Common Stock and Options outstanding prior to the Original Issue Date; (c) shares of Common Stock
issued upon the vesting of restricted stock awards made under the Plan; or (d) Convertible Securities issued prior to the Original
Issue Date provided that such securities are not amended after the date hereof to increase the number of shares of Common Stock
issuable thereunder or to lower the exercise or conversion price thereof.


 


“Exercise
Date” means, for any given exercise of this Warrant, the date on which the conditions to such exercise as
set forth in Section 3 shall have been satisfied at or prior to 5:00 p.m., Chicago, Illinois, time, on a Business Day,
including the receipt by the Company of the Exercise Agreement, the Warrant and the Aggregate Exercise Price.


 


“Exercise
Agreement” has the meaning set forth in Section 3.


 


“Exercise
Period” has the meaning set forth in Section 2.


 


“Exercise
Price” has the meaning set forth in the preamble.


 


“Expiration
Date” has the meaning set forth in Section 2.


 


“Fair
Market Value” means the fair market value of a share of Common Stock as follows: (a) if shares of Common
Stock are readily tradable on an established securities market (as determined under Code Section 409A), then Fair Market Value
will be the closing sales price for a share on the principal securities market on which it trades on the date for which it is being
determined, or if no sale of shares occurred on that date, on the next preceding date on which a sale of shares occurred, as reported
in The Wall Street Journal or such other source as the Committee deems reliable; or (b) if shares of Common Stock are not
then readily tradable on an established securities market (as determined under Code Section 409A), the Fair Market Value of a share
of Common Stock shall be determined jointly by the Company and the Holder or, if they are unable to agree, by an appraisal, if
any, requested by the Holder and performed by a third-party mutually acceptable to the Holder and the Company.


 


“Holder” has
the meaning set forth in the preamble.


 


“Options” means
any warrants or other rights or options to subscribe for or purchase Common Stock or Convertible Securities.


 


“Original
Issue Date” means June 28, 2013.


 


“Person” means
any individual, sole proprietorship, partnership, limited liability company, corporation, joint venture, trust, incorporated organization
or government or department or agency thereof.


 


“Purchase Agreement”
has the meaning set forth in the preamble.


 


“Target
VWAP” has the meaning set forth in Section 3(i).


 






    	2



    	 



    

 


 


“Trading Day” means any
day on which the Common Stock is traded on its principal market; provided that “Trading Day” shall not include any
day on which the Common Stock is scheduled to trade, or actually trades, on such exchange or market for less than 4.5 hours.


 


“VWAP” per share
of the Common Stock means the per share volume-weighted average price as displayed with respect to the Company on a Bloomberg terminal
under the heading Bloomberg VWAP in respect of any twenty (20) day period of Trading Days from the Original Issue Date through
the Expiration Date, calculated from the period from the official open of trading on the relevant Trading Day until the official
close of trading on the relevant Trading Day (or if such volume-weighted average price is unavailable, the market price of one
share of Common Stock on such Trading Days determined, using a volume-weighted average method, by a nationally recognized investment
banking firm (unaffiliated with the Company) retained for this purpose by the Company).


 


“VWAP
Deadline” has the meaning set forth in Section 3(i).


 


“VWAP
Notice” has the meaning set forth in Section 3(i).


 


“Warrant” means
this Warrant and all warrants issued upon division or combination of, or in substitution for, this Warrant.


 


“Warrant
Shares” means the shares of Common Stock or other capital stock of the Company then purchasable upon exercise
of this Warrant in accordance with the terms of this Warrant.


 


Section 2.        
Term of Warrant. Subject to the terms and conditions hereof, including Section 3(g), at any time or from
time to time commencing with the first (1st) anniversary of the Original Issue Date, and prior to 5:00 p.m.,
Chicago, Illinois, time, on the eighth (8th) anniversary of the Original Issue Date or, if such day is not a Business
Day, on the next succeeding Business Day (the “Expiration Date”), the Holder
of this Warrant may exercise this Warrant for all or any part of the Warrant Shares purchasable hereunder (subject to adjustment
as provided herein), provided, however, that the Holder of this Warrant may exercise this Warrant at any time before the
Expiration Date while an application has been filed and remains pending with or approved by any banking regulator with jurisdiction
over the Company or the Bank requesting prior approval for the acquisition of control of greater than fifty percent (50%)
of the voting stock of the Company or the Bank (a “Change in Control”). The period during which the Holder of
this Warrant may exercise this Warrant is referred to herein as (the “Exercise Period”).


 


Section 3.        
Exercise of Warrant.


 


(a)          
Exercise Procedure. This Warrant may be exercised from time to time on any Business Day during the Exercise Period,
for all or any part of the unexercised Warrant Shares, upon:


 


(i)            
surrender of this Warrant to the Company at its then principal executive offices (or an indemnification undertaking in form
and substance satisfactory to the Company with respect to this Warrant in the case of its loss, theft or destruction), together
with an Exercise Agreement in the form attached hereto as Exhibit A (each, an “Exercise Agreement”), duly completed
(including specifying the number of Warrant Shares to be purchased) and executed; and


 


(ii)          
payment to the Company of the Aggregate Exercise Price in accordance with Section 3(b).


 


(b)          
Payment of the Aggregate Exercise Price. Payment of the Aggregate Exercise Price shall be made, at the option of
the Holder as expressed in the Exercise Agreement, by the following methods:


 


(i)            
by delivery to the Company of a certified or official bank check payable to the order of the Company or by wire transfer
of immediately available funds to an account designated in writing by the Company, in the amount of such Aggregate Exercise Price;


 






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(ii)          
by instructing the Company to withhold a number of Warrant Shares then issuable upon exercise of this Warrant with an aggregate
Fair Market Value as of the Exercise Date equal to such Aggregate Exercise Price;


 


(iii)         
by surrendering to the Company: Warrant Shares (or other shares of Common Stock) previously acquired by the Holder with
an aggregate Fair Market Value as of the Exercise Date equal to such Aggregate Exercise Price; or


 


(iv)        
any combination of the foregoing.


 


In the event of any withholding of Warrant Shares or surrender
of other equity securities pursuant to clause (ii), (iii) or (iv) above where the number of shares whose value is equal to
the Aggregate Exercise Price is not a whole number, the number of shares withheld by or surrendered to the Company shall be rounded
up to the nearest whole share and the Company shall make a cash payment to the Holder (by delivery of a certified or official bank
check or by wire transfer of immediately available funds) based on the incremental fraction of a share being so withheld by or
surrendered to the Company in an amount equal to the product of: (x) such incremental fraction of a share being so withheld
or surrendered; multiplied by (y) in the case of Common Stock, the Fair Market Value per Warrant Share as of the Exercise
Date, and, in all other cases, the value thereof as of the Exercise Date determined in accordance with clause (iii)(y) above.


 


(c)          
Delivery of Stock Certificates. Upon receipt by the Company of the Exercise Agreement, surrender of this Warrant
and payment of the Aggregate Exercise Price (in accordance with Section 3(a)), the Company shall, as promptly as practicable,
and in any event within ten (10) Business Days thereafter, execute (or cause to be executed) and deliver (or cause to be delivered)
to the Holder a certificate or certificates representing the Warrant Shares issuable upon such exercise, together with cash in
lieu of any fraction of a share, as provided in Section 3(d). The stock certificate or certificates so delivered shall bear
such legends as the Company may require under applicable securities laws and shall be, to the extent possible, in such denomination
or denominations as the exercising the Holder shall reasonably request in the Exercise Agreement and shall be registered in the
name of the Holder or, subject to compliance with Section 6, such other Person’s name as shall be designated in the
Exercise Agreement. This Warrant shall be deemed to have been exercised and such certificate or certificates of Warrant Shares
shall be deemed to have been issued, and the Holder or any other Person so designated to be named therein shall be deemed to have
become a holder of record of such Warrant Shares for all purposes, as of the Exercise Date.


 


(d)          
Fractional Shares. The Company shall not be required to issue a fractional Warrant Share upon exercise of any Warrant.
As to any fraction of a Warrant Share that the Holder would otherwise be entitled to purchase upon such exercise, the Company shall
pay to such Holder an amount in cash (by delivery of a certified or official bank check or by wire transfer of immediately available
funds) equal to the product of: (i) such fraction; multiplied by (ii) the Fair Market Value of one Warrant Share on the
Exercise Date.


 


(e)          
Delivery of New Warrant. Unless the purchase rights represented by this Warrant shall have expired or shall have
been fully exercised, the Company shall, at the time of delivery of the certificate or certificates representing the Warrant Shares
being issued in accordance with Section 3(c), deliver to the Holder a new Warrant evidencing the rights of the Holder to
purchase the unexpired and unexercised Warrant Shares called for by this Warrant. Such new Warrant shall in all other respects
be identical to this Warrant.


 


(f)           
Valid Issuance of Warrant and Warrant Shares; Payment of Taxes. With respect to the exercise of this warrant, the
Company hereby represents, covenants and agrees:


 


(i)            
This Warrant is, and any Warrant issued in substitution for or replacement of this Warrant shall be, upon issuance, duly
authorized and validly issued.


 


(ii)          
All Warrant Shares issuable upon the exercise of this Warrant pursuant to the terms hereof shall be, upon issuance against
receipt of the Exercise Price, and the Company shall take all such actions as may be necessary or appropriate in order that such
Warrant Shares are, validly issued, fully paid and non-assessable, issued without violation of any pre-emptive or similar rights
of any stockholder of the Company and free and clear of all taxes, liens and charges.


 






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(iii)         
The Company shall take all such actions as may be necessary to ensure that all such Warrant Shares are issued without violation
by the Company of any applicable law or governmental regulation or any requirements of any domestic securities exchange upon which
shares of Common Stock or other securities constituting Warrant Shares may be listed at the time of such exercise (except for official
notice of issuance which shall be immediately delivered by the Company upon each such issuance).


 


(iv)        
The Company shall use its best efforts to cause the Warrant Shares, immediately upon such exercise, to be listed on any
domestic securities exchange upon which shares of Common Stock or other securities constituting Warrant Shares are listed at the
time of such exercise.


 


(v)          
The Company shall pay all expenses in connection with, and all taxes and other governmental charges that may be imposed
with respect to, the issuance or delivery of Warrant Shares upon exercise of this Warrant; provided, that the Company shall
not be required to pay any tax or governmental charge that may be imposed with respect to any applicable withholding or the issuance
or delivery of the Warrant Shares to any Person other than the Holder, and no such issuance or delivery shall be made unless and
until the Person requesting such issuance has paid to the Company the amount of any such tax, or has established to the satisfaction
of the Company that such tax has been paid.


 


(g)          
Conditional Exercise. Notwithstanding any other provision hereof, if an exercise of any portion of this Warrant is
to be made in connection with a Change in Control, such exercise may at the election of the Holder be conditioned upon the consummation
of such Change in Control, in which case such exercise shall not be deemed to be effective until immediately prior to the consummation
of such transaction.


 


(h)          
Reservation of Shares. During the Exercise Period, the Company shall at all times reserve and keep available out
of its authorized but unissued Common Stock or other securities constituting Warrant Shares, solely for the purpose of issuance
upon the exercise of this Warrant, the maximum number of Warrant Shares issuable upon the exercise of this Warrant, and the par
value per Warrant Share shall at all times be less than or equal to the applicable Exercise Price. Unless required by law or governmental
authority, the Company shall not increase the par value of any Warrant Shares receivable upon the exercise of this Warrant above
the Exercise Price then in effect, and shall take all such actions as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant.


 


(i)            
Forced Exercise. If at any time during the Exercise Period, (x) the Company has paid to the holder of the Subordinated
Debenture (as defined in the Purchase Agreement) the outstanding principal balance, plus all accrued but unpaid interest, thereon,
and any other amounts due and payable by the Company under the terms of the Purchase Agreement, and (y) the VWAP is Thirty
Dollars ($30.00) or higher (the “Target VWAP”), the Company may notify the Holder in writing of the Target VWAP
and the Company’s intent to cancel the Warrant in exchange for a cash payment to the Holder if the Holder fails to exercise
the Warrant as provided in Section 3(a) (the “VWAP Notice”). Thereafter, the Holder shall have fifteen (15)
Business Days after the date of its receipt of the VWAP Notice (the “VWAP Deadline”) to exercise the Warrant
in the manner provided in this Section. If the Holder fails to exercise the Warrant on or prior to the VWAP Deadline, then the
Company shall pay to the Holder, by no later than two (2) Business Days after the VWAP Deadline, and in immediately available
funds, an amount in cash equal to the product of (1) Thirty Dollars ($30.00) less the Exercise Price, multiplied
by (2) the number of unexercised Warrant Shares. After such payment is made by the Company, the Warrant shall automatically
be cancelled and the Holder shall have no further rights hereunder.


 


Section 4.        
Adjustment to Exercise Price and Number of Warrant Shares. In order to prevent dilution of the purchase rights
granted under this Warrant, the Exercise Price and the number of Warrant Shares issuable upon exercise of this Warrant shall be
subject to adjustment from time to time as provided in this Section 4.


 


(a)          
Adjustment to Exercise Price and Warrant Shares Upon Dividend, Subdivision or Combination of Common Stock. If the
Company shall, at any time or from time to time after the Original Issue Date and before the Expiration Date: (i) pay a dividend
or make any other distribution upon the Common Stock or any other capital stock of the Company payable in shares of Common Stock
or in Options or Convertible Securities; or (ii) subdivide (by any stock split, recapitalization or otherwise) its outstanding
shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to any such dividend, distribution
or subdivision shall be proportionately reduced and the number of Warrant Shares issuable upon exercise of this Warrant shall be
proportionately increased. If the Company at any time combines (by combination, reverse stock split or otherwise) its outstanding
shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall
be proportionately increased and the number of Warrant Shares issuable upon exercise of this Warrant shall be proportionately decreased.
Any adjustment under this Section 4(a) shall become effective at the close of business on the date the dividend, subdivision
or combination becomes effective.


 






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(b)          
Adjustment to Exercise Price and Warrant Shares Upon Reorganization, Reclassification, Consolidation or Merger. In
the event of any: (i) capital reorganization of the Company; (ii) reclassification of the stock of the Company (other
than a change in par value or from par value to no par value or from no par value to par value or as a result of a stock dividend
or subdivision, split-up or combination of shares); (iii) consolidation or merger of the Company with or into another Person;
(iv) sale of all or substantially all of the Company’s assets to another Person; or (v) other similar transaction
(other than any such transaction covered by Section 4(a)), in each case which entitles the holders of Common Stock to receive
(either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common Stock, each
Warrant shall, immediately after such reorganization, reclassification, consolidation, merger, sale or similar transaction, remain
outstanding and shall thereafter, in lieu of or in addition to (as the case may be) the number of Warrant Shares then exercisable
under this Warrant, be exercisable for the kind and number of shares of stock or other securities or assets of the Company or of
the successor Person resulting from such transaction to which the Holder would have been entitled upon such reorganization, reclassification,
consolidation, merger, sale or similar transaction if the Holder had exercised this Warrant in full immediately prior to the time
of such reorganization, reclassification, consolidation, merger, sale or similar transaction and acquired the applicable number
of Warrant Shares then issuable hereunder as a result of such exercise (without taking into account any limitations or restrictions
on the exercisability of this Warrant); and, in such case, appropriate adjustment shall be made with respect to the Holder’s
rights under this Warrant to insure that the provisions of this Section 4 shall thereafter be applicable, as nearly as possible,
to this Warrant in relation to any shares of stock, securities or assets thereafter acquirable upon exercise of this Warrant (including,
in the case of any consolidation, merger, sale or similar transaction in which the successor or purchasing Person is other than
the Company, an immediate adjustment in the Exercise Price to the value per share for the Common Stock reflected by the terms of
such consolidation, merger, sale or similar transaction, and a corresponding immediate adjustment to the number of Warrant Shares
acquirable upon exercise of this Warrant without regard to any limitations or restrictions on exercise, if the value so reflected
is less than the Exercise Price in effect immediately prior to such consolidation, merger, sale or similar transaction). The provisions
of this Section 4(b) shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers, sales
or similar transactions. The Company shall not effect any such reorganization, reclassification, consolidation, merger, sale or
similar transaction unless, prior to the consummation thereof, the successor Person (if other than the Company) resulting from
such reorganization, reclassification, consolidation, merger, sale or similar transaction, shall assume, by written instrument
substantially similar in form and substance to this Warrant, the obligation to deliver to the Holder such shares of stock, securities
or assets which, in accordance with the foregoing provisions, such Holder shall be entitled to receive upon exercise of this Warrant.
Notwithstanding anything to the contrary contained herein, with respect to any corporate event or other transaction contemplated
by the provisions of this Section 4(b), the Holder shall have the right to elect prior to the consummation of such event
or transaction, to give effect to the exercise rights contained in Section 3 instead of giving effect to the provisions
contained in this Section 4(b) with respect to this Warrant.


 


(c)          
Certain Events. If any event of the type described in or contemplated by the provisions of this Section 4 but
not expressly provided for by such provisions (including the granting of stock appreciation rights, phantom stock rights or other
rights with equity features (other than an Excluded Issuance)) occurs, then the Board shall make an appropriate adjustment in the
Exercise Price and the number of Warrant Shares issuable upon exercise of this Warrant so as to protect the rights of the Holder
in a manner consistent with the provisions of this Section 4; provided, that no such adjustment pursuant
to this Section 4(c) shall increase the Exercise Price or decrease the number of Warrant Shares issuable as otherwise determined
pursuant to this Section 4.


 






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(d)          
Certificate as to Adjustment.


 


(i)            
As promptly as reasonably practicable following any adjustment of the Exercise Price, but in any event not later than forty-five (45)
Business Days thereafter, the Company shall furnish to the Holder a certificate of an executive officer setting forth in reasonable
detail such adjustment and the facts upon which it is based and certifying the calculation thereof.


 


(ii)          
As promptly as reasonably practicable following the receipt by the Company of a written request by the Holder, but in any
event not later than forty-five (45) Business Days thereafter, the Company shall furnish to the Holder a certificate of an
executive officer certifying the Exercise Price then in effect and the number of Warrant Shares or the amount, if any, of other
shares of stock, securities or assets then issuable upon exercise of the Warrant.


 


(e)          
Notices. In the event:


 


(i)            
that the Company shall take a record of the holders of its Common Stock (or other capital stock or securities at the time
issuable upon exercise of the Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution,
to vote at a meeting (or by written consent), to receive any right to subscribe for or purchase any shares of capital stock of
any class or any other securities, or to receive any other security; or


 


(ii)          
of any capital reorganization of the Company, any reclassification of the Common Stock of the Company, any consolidation
or merger of the Company with or into another Person, or sale of all or substantially all of the Company’s assets to another
Person; or


 


(iii)         
of the voluntary or involuntary dissolution, liquidation or winding-up of the Company;


 


then, and in each such case, the Company shall send or cause
to be sent to the Holder at least sixty (60) days prior to the applicable record date or the applicable expected effective
date, as the case may be, for the event, a written notice specifying, as the case may be: (A) the record date for such dividend,
distribution, meeting or consent or other right or action, and a description of such dividend, distribution or other right or action
to be taken at such meeting or by written consent; or (B) the effective date on which such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding-up is proposed to take place, and the date, if any is to be fixed,
as of which the books of the Company shall close or a record shall be taken with respect to which the holders of record of Common
Stock (or such other capital stock or securities at the time issuable upon exercise of the Warrant) shall be entitled to exchange
their shares of Common Stock (or such other capital stock or securities) for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up, and the amount per share
and character of such exchange applicable to the Warrant and the Warrant Shares.


 


(f)           
Exceptions to Adjustment Upon Issuance of Common Stock. Anything herein to the contrary notwithstanding, there shall
be no adjustment to the Exercise Price upon exercise of this Warrant with respect to any Excluded Issuance.


 


Section 5.        
Purchase Rights. In addition to any adjustments pursuant to Section 4, if at any time the Company grants,
issues or sells any shares of Common Stock, Options, Convertible Securities or rights to purchase stock, warrants, securities or
other property pro rata to the record holders of Common Stock (the “Purchase Rights”),
then the Holder shall be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights
which the Holder would have acquired if the Holder had held the number of Warrant Shares acquirable upon complete exercise of this
Warrant immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if
no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale
of such Purchase Rights. Anything herein to the contrary notwithstanding, the Holder shall not be entitled to the Purchase Rights
granted herein with respect to any Excluded Issuance.


 






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Section 6.        
Transfer of Warrant. Subject to the transfer conditions referred to in the legend endorsed hereon, commencing
with the first (1st) anniversary of the Original Issue Date, this Warrant and all rights hereunder are transferable,
in whole or in part, by the Holder without charge to the Holder, upon surrender of this Warrant to the Company at its then principal
executive offices (or, if the Company designates a transfer agent for this warrant, at the offices of such transfer agent) with
a properly completed and duly executed Assignment in the form attached hereto as Exhibit B, together with funds sufficient
to pay any transfer taxes as described in Section 3(f)(v) in connection with the making of such transfer. Upon such compliance,
surrender and delivery and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name
of the assignee or assignees and in the denominations specified in such instrument of assignment, and shall issue to the assignor
a new Warrant evidencing the portion of this Warrant, if any, not so assigned and this Warrant shall promptly be cancelled.


 


Section 7.        
Holder Not Deemed a Stockholder; Limitations on Liability. Prior to the issuance to the Holder of the Warrant
Shares to which the Holder is then entitled to receive upon the due exercise of this Warrant, the Holder shall not be entitled
to vote or receive dividends or be deemed the holder of shares of capital stock of the Company for any purpose, nor shall anything
contained in this Warrant be construed to confer upon the Holder, as such, any of the rights of a stockholder of the Company or
any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification
of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights,
or otherwise. In addition, nothing contained in this Warrant shall be construed as imposing any obligations on the Holder to purchase
any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such obligations are asserted
by the Company or by creditors of the Company.


 


Section 8.        
Replacement on Loss; Division and Combination.


 


(a)          
Replacement of Warrant on Loss. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and upon delivery of an indemnity agreement reasonably satisfactory to it accompanied
by a bond in customary form and, in case of mutilation, upon surrender of such Warrant for cancellation to the Company, the Company
at its own expense shall execute and deliver to the Holder, in lieu hereof, a new Warrant of like tenor and exercisable for an
equivalent number of Warrant Shares as the Warrant so lost, stolen, mutilated or destroyed; provided, that, in the case
of mutilation, no indemnity shall be required if this Warrant in identifiable form is surrendered to the Company for cancellation.


 


(b)          
Division and Combination of Warrant. Subject to compliance with the applicable provisions of this Warrant as to any
transfer or other assignment which may be involved in such division or combination, this Warrant may be divided or, following any
such division of this Warrant, subsequently combined with other Warrants, upon the surrender of this Warrant or Warrants to the
Company at its then principal executive offices, together with a written notice specifying the names and denominations in which
new Warrants are to be issued, signed by the respective Holders or their agents or attorneys. Subject to compliance with the applicable
provisions of this Warrant as to any transfer or assignment which may be involved in such division or combination, the Company
shall at its own expense execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants so surrendered in
accordance with such notice. Such new Warrant or Warrants shall be of like tenor to the surrendered Warrant or Warrants and shall
be exercisable in the aggregate for an equivalent number of Warrant Shares as the Warrant or Warrants so surrendered in accordance
with such notice.


 


Section 9.        
No Impairment. The Company shall not, by amendment of its certificate or articles of incorporation or bylaws
or other similar charter documents, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue
or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms
to be observed or performed by it hereunder, but shall at all times in good faith assist in the carrying out of all the provisions
of this Warrant and in the taking of all such action as may reasonably be requested by the Holder in order to protect the exercise
rights of the Holder against dilution or other impairment, consistent with the tenor and purpose of this Warrant.


 


Section 10.     
Compliance with the Securities Act.


 


(a)          
Agreement to Comply with the Securities Act; Legend. By acceptance of this Warrant, the Holder, agrees to comply
in all respects with the provisions of this Section 10 and the restrictive legend requirements set forth on the face of
this Warrant and further agrees that such Holder shall not offer, sell or otherwise dispose of this Warrant or any Warrant Shares
to be issued upon exercise hereof except under circumstances that will not result in a violation of the Securities Act of 1933,
as amended (the “Securities Act”). This Warrant and all Warrant Shares issued
upon exercise of this Warrant (unless issued in a transaction registered under the Securities Act) shall be stamped or imprinted
with a legend in substantially the following form:


 






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“THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR QUALIFIED UNDER
ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT COVERING SUCH SECURITIES UNDER THE ACT AND ANY REQUIRED QUALIFICATION UNDER
APPLICABLE STATE AND FOREIGN LAW OR THE TRANSACTION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS UNDER
THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND AN OPINION SATISFACTORY TO THE ISSUER TO
SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.”


(b)          
Representations of the Holder. In connection with the issuance of this Warrant, the Holder specifically represents,
as of the date hereof, to the Company by acceptance of this Warrant as follows:


 


(i)            
The Holder is an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities
Act. The Holder is acquiring this Warrant and the Warrant Shares to be issued upon exercise hereof for investment for its own account
and not with a view towards, or for resale in connection with, the public sale or distribution of this Warrant or the Warrant Shares,
except pursuant to sales registered or exempted under the Securities Act.


 


(ii)          
The Holder understands and acknowledges that this Warrant and the Warrant Shares to be issued upon exercise hereof are “restricted
securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving
a public offering and that, under such laws and applicable regulations, such securities may be resold without registration under
the Securities Act only in certain limited circumstances. In addition, the Holder represents that it is familiar with Rule 144
promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the
Securities Act.


 


(iii)         
The Holder acknowledges that it can bear the economic and financial risk of its investment for an indefinite period, and
has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the
investment in the Warrant and the Warrant Shares. The Holder has had an opportunity to ask questions and receive answers from the
Company regarding the terms and conditions of the offering of the Warrant and the business, properties, prospects and financial
condition of the Company.


 


Section 11.     
Warrant Register. Unless it is designated a transfer agent to do so, the Company shall keep and properly maintain
at its principal executive offices books for the registration of the Warrant and any transfers thereof. The Company (and any transfer
agent) may deem and treat the Person in whose name the Warrant is registered on such register as the Holder thereof for all purposes,
and the Company (and any transfer agent) shall not be affected by any notice to the contrary, except any assignment, division,
combination or other transfer of the Warrant effected in accordance with the provisions of this Warrant.


 


Section 12.     
Notices. Except as otherwise expressly provided herein, all notices, requests, consents, claims, demands, waivers
and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand
(with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier
(receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if
sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient;
or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid.
Such communications must be sent to the respective parties at the addresses indicated below (or at such other address for a party
as shall be specified in a notice given in accordance with this Section 12).


 






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	if to the Company:	 	First Internet Bancorp
	 	 	8888 Keystone Crossing, Suite 1700


Indianapolis, Indiana 46240






	 	 	Attn:	David B. Becker
	 	 	 	Chairman, President and Chief Executive Officer
	 	 	


Fax No.: (317) 532-7901


E-Mail Address: dbecker@firstib.com






	 	 	 
	with a copy to	 	Faegre Baker Daniels
	 	 	600 E 96th Street, Suite 600


Indianapolis, Indiana 46240-3789






	 	 	Attn:	John Taylor
	 	 	Fax No.: (317) 237-8438


E-Mail Address: john.taylor@FaegreBD.com






	 	 	 
	if to the Holder:	 	CBC Management Partners, LLC


1000 SW Broadway, Suite 1010


Portland, Oregon 97205-3062






	 	 	
        Attn:

        
	Frank Reppenhagen
	 	 	Telephone No.: (503) 227-1400


Fax No.: (503) 228-7105


E-Mail Address: far@cbancap.com






	 	 	 
	with a copy to:	 	Barack
Ferrazzano Kirschbaum & Nagelberg, LLP

                                                       200
West Madison Street, Suite 3900

                                                       Chicago, Illinois 60606






	 	 	
        Attn:

        
	Dennis R. Wendte
	 	 	Telephone No.: (312) 984-3188


Fax No.: (312) 984-3150


E-Mail Address: dennis.wendte@bfkn.com










 








Section 13.     
Cumulative Remedies. The rights and remedies provided in this Warrant are cumulative and are not exclusive of,
and are in addition to and not in substitution for, any other rights or remedies available at law, in equity or otherwise.


 


Section 14.     
Equitable Relief. Each of the Company and the Holder acknowledges that a breach or threatened breach by such
party of any of its obligations under this Warrant might give rise to irreparable harm to the other party hereto for which monetary
damages would not be an adequate remedy and hereby agrees that in the event of a breach or a threatened breach by such party of
any such obligations, the other party hereto shall, in addition to any and all other rights and remedies that may be available
to it in respect of such breach, may be entitled to seek equitable relief, including a restraining order, an injunction, specific
performance and any other relief that may be available from a court of competent jurisdiction.


 


Section 15.     
Entire Agreement. This Warrant, together with the Purchase Agreement, constitutes the sole and entire agreement
of the parties to this Warrant with respect to the subject matter contained herein, and supersedes all prior and contemporaneous
understandings and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between
the statements in the body of this Warrant and the Purchase Agreement, the statements in the body of this Warrant shall control.


 


Section 16.     
Successor and Assigns. This Warrant and the rights evidenced hereby shall be binding upon and shall inure to
the benefit of the parties hereto and the successors of the Company and the successors and permitted assigns of the Holder. Such
successors and/or permitted assigns of the Holder shall be deemed to be a Holder for all purposes hereunder.


 


Section 17.     
No Third-Party Beneficiaries. This Warrant is for the sole benefit of the Company and the Holder and their respective
successors and, in the case of the Holder, permitted assigns and nothing herein, express or implied, is intended to or shall confer
upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Warrant.


 






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Section 18.     
Headings. The headings in this Warrant are for reference only and shall not affect the interpretation of this
Warrant.


 


Section 19.     
Amendment and Modification; Waiver. Except as otherwise provided herein, this Warrant may only be amended, modified
or supplemented by an agreement in writing signed by each party hereto. No waiver by the Company or the Holder of any of the provisions
hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall
operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver,
whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay
in exercising, any rights, remedy, power or privilege arising from this Warrant shall operate or be construed as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege.


 


Section 20.     
Severability. Any provision of this Warrant which is unenforceable or invalid or contrary to law, or the inclusion
of which would adversely affect the validity, legality or enforcement of this Warrant, shall be of no effect and, in such case,
all the remaining terms and provisions of this Warrant shall subsist and be fully effective according to the tenor of this Warrant
the same as though any such invalid portion had never been included herein. Notwithstanding any of the foregoing to the contrary,
if any provisions of this Warrant or the application thereof are held invalid or unenforceable only as to particular persons or
situations, the remainder of this Warrant, and the application of such provision to persons or situations other than those to which
it shall have been held invalid or unenforceable, shall not be affected thereby, but shall continue valid and enforceable to the
fullest extent permitted by law.


 


Section 21.     
Governing Law. This Warrant shall be governed by and construed in accordance with the internal laws of the State
of Indiana. Nothing herein shall be deemed to limit any rights, powers or privileges which the Holder may have pursuant to any
law of the United States of America or any rule, regulation or order of any department or agency thereof and nothing herein shall
be deemed to make unlawful any transaction or conduct by the Holder which is lawful pursuant to, or which is permitted by, any
of the foregoing.


 


Section 22.     
Submission to Jurisdiction. Any legal suit, action or proceeding arising out of or based upon this Warrant or
the transactions contemplated hereby may be instituted in the federal courts of the United States of America or the courts
of the State of Indiana in each case located in the city of Indianapolis and County of Marion, and each party irrevocably submits
to the exclusive jurisdiction of such courts in any such suit, action or proceeding. Service of process, summons, notice or other
document by certified or registered mail to such party’s address set forth herein shall be effective service of process for
any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection
to the laying of venue of any suit, action or any proceeding in such courts and irrevocably waive and agree not to plead or claim
in any such court that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.


 


Section 23.     
Waiver of Jury Trial. Each party acknowledges and agrees that any controversy which may arise under this Warrant
is likely to involve complicated and difficult issues and, therefore, each such party irrevocably and unconditionally waives any
right it may have to a trial by jury in respect of any legal action arising out of or relating to this Warrant or the transactions
contemplated hereby.


 


Section 24.     
Counterparts. This Warrant may be executed in counterparts, each of which shall be deemed an original, but all
of which together shall be deemed to be one and the same agreement. A signed copy of this Warrant delivered by facsimile, e-mail
or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy
of this Warrant.


 






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Section 25.     
Construction. In this Warrant, unless otherwise stated or the context otherwise requires, the following uses
apply: (a) actions permitted under this Warrant may be taken at any time and from time to time in the actor’s reasonable
discretion; (b) references to a statute shall refer to the statute and any successor statute, and to all regulations promulgated
under or implementing the statute or its successor, as in effect at the relevant time; (c) in computing periods from a specified
date to a later specified date, the words “from” and “commencing on” (and the like) mean “from and
including,” and the words “to,” “until” and “ending on” (and the like) mean “to,
but excluding”; (d) ”including” means “including, but not limited to”; (e) all references
to sections, paragraphs, clauses and exhibits are to sections, paragraphs, clauses and exhibits in, of or to this Warrant unless
otherwise specified; (f) all words used in this Warrant will be construed to be of such gender or number as the circumstances
and context require; (g) the captions and headings of articles, sections, schedules and exhibits appearing in or attached
to this Warrant have been inserted solely for convenience of reference and shall not be considered a part of this Warrant nor shall
any of them affect the meaning or interpretation of this Warrant or any of its provisions; and (h) any reference to a document
or set of documents in this Warrant, and the rights and obligations of the parties under any such documents, shall mean such document
or documents as amended from time to time, and any and all modifications, extensions, renewals, substitutions or replacements thereof.
The Company and the Holder further agree that this Warrant shall be construed without regard to any presumption or rule requiring
construction or interpretation against the party drafting an instrument or causing any instrument to be drafted.


 


 


[This
Space Left Intentionally Blank]


[Signature
Page Follows]


 




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In
Witness Whereof, the Company has duly executed this Warrant on the Original Issue Date.


 








	 	First Internet Bancorp
	 	 
	 	By: 	/s/ Kay E. Whitaker
	 		Name:	Kay E. Whitaker
	 		Title:	SVP & CFO






	Accepted
    and agreed: 	 
	 	Community BanCapital,
    L.P.,
	 	 
	 	By:	CBC
    Partners GP, LLC, its General Partner
	 	 	 
	 	 	 
	 	 	/s/
    Frank Reppenhagen
	 		Name:	Frank Reppenhagen
	 		Title:	Partner



 






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