Document:

Exhibit 10.1

 

STANDSTILL AGREEMENT

 

THIS STANDSTILL AGREEMENT (the “Agreement”),
dated this 12th day of March 2014, is by and among Naugatuck Valley Financial Corporation
(the “Company”) and Naugatuck Valley Savings and Loan (the “Bank,” and collectively with the Company, “Naugatuck
Valley”), Stilwell Value Partners II, L.P. (“Stilwell Value Partners II”), Stilwell Value Partners VII, L.P.
(“Stilwell Value Partners VII”), Stilwell Activist Fund, L.P. (“Activist Fund”), Stilwell Activist Investments,
L.P. (“Activist Investments”), Stilwell Partners, L.P. (“Stilwell Partners”), Stilwell Value LLC (“Stilwell
Value”), and Joseph Stilwell, an individual (collectively, the “Stilwell Group,” and each individually, a “Stilwell
Group Member”), and Robert M. Bolton, an individual (the “Nominee”).

 

RECITALS

 

WHEREAS, Naugatuck Valley, the Stilwell
Group and the Nominee have agreed that it is in their mutual interests to enter into this Agreement.

 

NOW THEREFORE, in consideration of
the Recitals and the representations, warranties, covenants and agreements contained herein and other good and valuable consideration,
and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.            Representations and Warranties
of the Stilwell Group Members. The Stilwell Group Members represent and warrant to Naugatuck Valley, as follows:

 

(a)            The Stilwell Group has
fully disclosed in Exhibit A to this Agreement the total number of shares of common stock of the Company, par value $0.01
per share (“Company Common Stock”), as to which it is the beneficial owner, and neither the Stilwell Group nor any
Stilwell Group Member nor any of their affiliates has (i) a right to acquire any interest in any capital stock of the Company,
or (ii) a right to vote any shares of capital stock of the Company other than as set forth in Exhibit A;

 

(b)            The Stilwell Group and the Stilwell
Group Members have full power and authority to enter into and perform their obligations under this Agreement, and the execution
and delivery of this Agreement by the Stilwell Group and Stilwell Group Members has been duly authorized by the Stilwell Group
and the Stilwell Group Members. This Agreement constitutes a valid and binding obligation of the Stilwell Group and the Stilwell
Group Members and the performance of its terms will not constitute a violation of any limited partnership agreement, operating
agreement, bylaws, or any agreement or instrument to which the Stilwell Group or any Stilwell Group Member is a party;

 

(c)            There are no other persons who, by
reason of their personal, business, professional or other arrangement with the Stilwell Group or any Stilwell Group Member, have
agreed, in writing or orally, explicitly or implicitly, to take any action on behalf of or in lieu of the Stilwell Group or any
Stilwell Group Member that would be prohibited by this Agreement; and

 

    	 

    	 

    

 

(d)            There are no arrangements, agreements
or understandings concerning the subject matter of this Agreement between the Stilwell Group or any Stilwell Group Member and Naugatuck
Valley or between the Stilwell Group or any Stilwell Group Member and the Nominee other than as set forth in this Agreement and
other than the Stock Option Agreement dated the date hereof by and between the Stilwell Group Members and the Nominee.

 

2.            Representations and Warranties
of the Company and the Bank.

 

(a)            The Company and the Bank hereby represent
and warrant to the Stilwell Group that the Company and the Bank have full power and authority to enter into and perform their respective
obligations under this Agreement and that the execution and delivery of this Agreement by the Company and the Bank has been duly
authorized by the Board of Directors of the Company and the Bank. This Agreement constitutes a valid and binding obligation of
the Company and the Bank and the performance of its terms will not constitute a violation of their respective articles of incorporation,
charter or bylaws or any agreement or instrument to which the Company or the Bank is a party.

 

(b)            The Company and the Bank hereby represent
and warrant to the Stilwell Group that there are no arrangements, agreements, or understandings concerning the subject matter of
this Agreement between the Stilwell Group or any Stilwell Group Member and Naugatuck Valley other than as set forth in this Agreement.

 

3.            Covenants.

 

(a)            During the term of this Agreement,
Naugatuck Valley covenants and agrees as follows:

 

(i)            Upon receipt of all necessary regulatory
approvals for the appointment of the Nominee, the Board of Directors of the Company will be expanded by one board seat, and the
Nominee will be appointed a director of the Company to serve in the class of directors with terms expiring at the Company’s
2016 annual meeting of stockholders or until his successor, if any, is elected and qualified. Upon receipt of all necessary regulatory
approvals for the appointment of the Nominee, the Board of Directors of the Company will cause the Board of Directors of the Bank
to expand the Bank’s Board of Directors by one board seat and to appoint the nominee to fill the vacancy created by the expansion
of the Bank’s Board of Directors to serve in the class of directors with terms expiring at the Bank’s 2016 annual meeting
of stockholders or until his successor, if any, is elected and qualified. The parties hereto understand and agree that any new
director of the Company and the Bank, including the Nominee must receive all necessary regulatory approvals and non-objections,
including those of the Board of Governors of the Federal Reserve System (the “FRB”) and the Office of the Comptroller
of the Currency (the “OCC”), before commencing service as a director of the Company and the Bank. The Company and the
Bank agree to act in good faith and cooperate with the Nominee in promptly submitting all necessary applications and notices to
the FRB and the OCC contemplated hereby;

 

(ii)            Upon his appointment and qualification
to the Company’s and the Bank’s Boards of Directors, the Nominee shall be treated on a consistent basis with other
members of the Company’s and the Bank’s Boards of Director with respect to compensation and benefits, and he shall
be appointed to the Compensation Committee of the Company Board of Directors;

 

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(iii)            Should the Nominee not receive
the necessary regulatory approvals and nonobjections, the Company shall appoint an alternate director, selected by Mr. Stilwell
(the “Alternate”), subject to the approval of the Company, which approval shall not be unreasonably withheld, and the
Alternate shall, subject to the receipt of all necessary approvals of the FRB and/or the OCC and his or her agreement to honor
the provisions of Sections 3(c) and 3(d) hereof, be appointed to the Boards of the Company and the Bank;

 

(iv)            Should the Nominee’s or Alternate’s,
as the case may be, position as a director of the Company or the Bank be terminated during the term of this Agreement due to his
resignation, death, permanent disability or otherwise, the Company shall appoint a replacement director, selected by Mr. Stilwell
(“Replacement Director”), subject to the approval of the Company, which approval shall not be unreasonably withheld,
and the Replacement Director shall, subject to the receipt of any necessary approvals of the FRB and/or the OCC and his or her
agreement to honor the provisions of Sections 3(c) and 3(d) hereof, be appointed to the Boards of the Company and the Bank; and

 

(v)            During the term of this Agreement,
the Company shall not submit for shareholder approval at any Company annual meetings of stockholders any new stock benefit plans.

 

(b)            During the term of this Agreement,
the Stilwell Group and each Stilwell Group Member covenant and agree not to do the following, directly or indirectly, alone or
in concert with any affiliate, other group or other person:

 

(i)            own, acquire, offer or propose to
acquire or agree to acquire, whether by purchase, tender or exchange offer, or through the acquisition of control of another person
or entity (including by way of merger or consolidation) any additional shares of the outstanding Company Common Stock, any rights
to vote or direct the voting of any additional shares of Company Common Stock, or any securities convertible into Company Common
Stock (except by way of stock splits, stock dividends, stock reclassifications or other distributions or offerings made available
and, if applicable, exercised on a pro rata basis, to holders of the Company Common Stock generally);

 

(ii)            without the Company’s prior
written consent, directly or indirectly, sell, transfer or otherwise dispose of any interest in the Stilwell Group’s shares
of Company Common Stock to any person the Stilwell Group believes, after reasonable inquiry, would be beneficial owner after any
such sale or transfer of more than 5% of the outstanding shares of the Company Common Stock;

 

(iii)            (A) propose or seek to effect a
merger, consolidation, recapitalization, reorganization, sale, lease, exchange or other disposition of substantially all the assets
of, or other business combination involving, or a tender or exchange offer for securities of, the Company or the Bank or any material
portion of the Company’s or the Bank’s business or assets or any type of transaction that would result in a change
in control of the Company (any such transaction described in this clause (A) is a “Company Transaction” and any proposal
or other action seeking to effect a Company Transaction as described in this clause (A) is defined as a “Company Transaction
Proposal”), (B) seek to exercise any control or influence over the management of the Company or the Boards of Directors of
the Company or the Bank or any of the businesses, operations or policies of the Company or the Bank, (C) present to the Company,
its shareholders or any third party any proposal constituting or that could reasonably be expected to result in a Company Transaction,
or (D) seek to effect a change in control of the Company;

 

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(iv)            publicly suggest or announce its
willingness or desire to engage in a transaction or group of transactions or have another person engage in a transaction or group
of transactions that would constitute or could reasonably be expected to result in a Company Transaction or take any action that
might require the Company to make a public announcement regarding any such Company Transaction;

 

(v)            initiate, request, induce, encourage
or attempt to induce or give encouragement to any other person to initiate any Company Transaction Proposal, or otherwise provide
assistance to any person who has made or is contemplating making, or enter into discussions or negotiations with respect to, any
Company Transaction Proposal;

 

(vi)            solicit proxies or written consents
or assist or participate in any other way, directly or indirectly, in any solicitation of proxies or written consents, or otherwise
become a “participant” in a “solicitation,” or assist any “participant” in a “solicitation”
(as such terms are defined in Rule 14a-1 of Regulation 14A and Instruction 3 of Item 4 of Schedule 14A, respectively, under the
Securities Exchange Act of 1934) in opposition to any recommendation or proposal of the Company’s Board of Directors, or
recommend or request or induce or attempt to induce any other person to take any such actions, or seek to advise, encourage or
influence any other person with respect to the voting of (or the execution of a written consent in respect of) the Company Common
Stock, or execute any written consent in lieu of a meeting of the holders of the Company Common Stock or grant a proxy with respect
to the voting of the capital stock of the Company to any person or entity other than the Board of Directors of the Company;

 

(vii)            initiate, propose, submit, encourage
or otherwise solicit shareholders of the Company for the approval of one or more shareholder proposals or induce or attempt to
induce any other person to initiate any shareholder proposal, or seek election to, or seek to place a representative or other affiliate
or nominee on, the Company’s Board of Directors (other than with respect to the provisions of Sections 3(a)(i), (iii) and
(iv), providing for the possible election of the Nominee, Alternate or Replacement Director) or seek removal of any member of the
Company’s or the Bank’s Boards of Directors;

 

(viii)            form, join in or in any other
way (including by deposit of the Company’s capital stock) participate in a partnership, pooling agreement, syndicate, voting
trust or other group with respect to Company Common Stock, or enter into any agreement or arrangement or otherwise act in concert
with any other person, for the purpose of acquiring, holding, voting or disposing of Company Common Stock;

 

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(ix)            (A) join with or assist any person
or entity, directly or indirectly, in opposing, or make any statement in opposition to, any proposal or director nomination submitted
by the Company’s Board of Directors to a vote of the Company’s shareholders, or (B) join with or assist any person
or entity, directly or indirectly, in supporting or endorsing (including supporting, requesting or joining in any request for a
meeting of shareholders in connection with), or make any statement in favor of, any proposal submitted to a vote of the Company’s
shareholders that is opposed by the Company’s Board of Directors;

 

(x)            vote for any nominee or nominees
for election to the Board of Directors of the Company other than those nominated or supported by the Company’s Board of Directors;

 

(xi)            except in connection with the enforcement
of this Agreement, initiate or participate, by encouragement or otherwise, in any litigation against the Company or the Bank or
their respective officers and directors, or in any derivative litigation on behalf of the Company or the Bank, except for testimony
which may be required by law;

 

(xii)            advise, assist, encourage or finance
(or arrange, assist or facilitate financing to or for) any other person in connection with any of the matters restricted by, or
otherwise seek to circumvent the limitations of, this Agreement; and

 

(xiii)            object to any employment agreement
or change in control agreement for William C. Calderara or James Cotter, including any stock option grants to be awarded in connection
therewith.

 

(c)            During the term of this Agreement,
each Stilwell Group Member and the Nominee agree not to disparage the Company, the Bank or any of their directors (including nominees
supported by the Company’s Board of Directors), officers or employees in any public or quasi-public forum, and the Company
and the Bank agree not to disparage the Stilwell Group and the Nominee in any public or quasi-public forum.

 

(d)            (i)            The Nominee agrees that during
the term of this Agreement he will not take any action, directly or indirectly, which, if the Nominee were deemed to be a Stilwell
Group Member, would be in violation of or inconsistent with any of the covenants and agreements made by the Stilwell Group in clauses
(iii), (iv), (v), (vi), (vii), (viii), (ix), (x), (xi) and (xii) of Section 3(b) hereof, provided, however, that nothing herein
shall prevent or limit the Nominee, upon his appointment and qualification as a director of the Company and the Bank, from expressing
his views or positions on matters related to the Company’s or the Bank’s business, operations or policies to other
members of the Company’s or the Bank’s Board of Directors at duly convened meetings of the Company’s or the Bank’s
Board of Directors in such manner as may be necessary and appropriate in order to fulfill his duties as a director;

 

(ii)            In the event that the Nominee, breaches
clause (i) of this Section 3(d), he shall promptly resign his positions as a director of the Company and the Bank; in the event
that the Nominee fails to resign after a breach in accordance with the provisions of this clause (ii), the Nominee agrees that
the remaining directors of the Company and the Bank, by majority vote thereof, may remove the Nominee, from his directorship positions
with the Company and the Bank.

 

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(iii)            The Nominee, and any Alternate
or Replacement Director, agrees to promptly submit his resignation as a director in the event of the termination of this Agreement
prior to the Company’s 2016 Annual Meeting of Stockholders.

 

(e)            Upon appointment of the Nominee, and
the commencement of his services as a director of the Company after the receipt of all necessary regulatory approvals or non-objections,
the Company, the Stilwell Group and the Nominee, will enter into a Non-Disclosure Agreement, substantially in the form attached
as Exhibit B hereto, which shall remain in force through the Nominee’s tenure on the Board of Directors.

 

4.            Notice of Breach and Remedies.

 

The parties expressly agree that an actual
or threatened breach of this Agreement by any party will give rise to irreparable injury that cannot adequately be compensated
by damages. Accordingly, in addition to any other remedy to which it may be entitled, each party shall be entitled to seek a temporary
restraining order or injunctive relief to prevent a breach of the provisions of this Agreement or to secure specific enforcement
of its terms and provisions.

 

The Stilwell Group and each Stilwell Group
Member expressly agree that they will not be excused or claim to be excused from performance under this Agreement as a result of
any material breach by Naugatuck Valley unless and until Naugatuck Valley is given written notice of such breach and thirty (30)
business days either to cure such breach or seek relief in court. If Naugatuck Valley seeks relief in court, the Stilwell Group
and each Stilwell Group Member irrevocably stipulate that any failure to perform by the Stilwell Group and/or any Stilwell Group
Member or any assertion by the Stilwell Group and/or any Stilwell Group Member that they are excused from performing their obligations
under this Agreement would cause Naugatuck Valley irreparable harm, that Naugatuck Valley shall not be required to provide further
proof of irreparable harm in order to obtain equitable relief and that the Stilwell Group and each Stilwell Group Member shall
not deny or contest that such circumstances would cause Naugatuck Valley irreparable harm. If, after such thirty (30) business
day period, Naugatuck Valley has not either reasonably cured such material breach or obtained relief in court, the Stilwell Group
or each Stilwell Group Member may terminate this Agreement by delivery of written notice to Naugatuck Valley.

 

Naugatuck Valley expressly agrees that it
will not be excused or claim to be excused from performance under this Agreement as a result of any material breach by the Stilwell
Group or any Stilwell Group Member unless and until the Stilwell Group and each Stilwell Group Member is given written notice of
such breach and thirty (30) business days either to cure such breach or seek relief in court. If the Stilwell Group or any Stilwell
Group Member seeks relief in court, Naugatuck Valley irrevocably stipulates that any failure to perform by Naugatuck Valley or
any assertion by Naugatuck Valley that it is excused from performing its obligations under this Agreement would cause the Stilwell
Group and each Stilwell Group Member irreparable harm, that the Stilwell Group or any Stilwell Group Member shall not be required
to provide further proof of irreparable harm in order to obtain equitable relief and that Naugatuck Valley shall not deny or contest
that such circumstances would cause the Stilwell Group and each Stilwell Group Member irreparable harm. If, after such thirty (30)
business day period, the Stilwell Group or the Stilwell Group Member has not either reasonably cured such material breach or obtained
relief in court, Naugatuck Valley may terminate this Agreement by delivery of written notice to the Stilwell Group and each Stilwell
Group Member.

 

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5.            Term. This Agreement
shall be effective upon the execution of the Agreement, and will remain in effect for a period expiring as of the close of business
on the date of the Company’s 2016 Annual Meeting of Stockholders, provided, however, the Stilwell Group may terminate this
Agreement at any time after the date of the Company’s 2015 Annual Meeting of Stockholders by delivery of written notice to
Naugatuck Valley, provided further, that the Nominee, Alternate or Replacement Director, as the case may be, resigns as a director
of the Company and the Bank in accordance with paragraph (iii) of Section 3(d) hereof.

 

6.            Publicity. Any press
release or publicity with respect to this Agreement or any provisions hereof shall be jointly prepared and issued by the parties
hereto. During the term of this Agreement, no party to this Agreement shall cause, discuss, cooperate or otherwise aid in the preparation
of any press release or other publicity concerning any other party to this Agreement or its operations without the prior approval
of such other party, which approval shall not be unreasonably withheld.

 

7.            Notices. All notices, communications
and deliveries required or permitted by this Agreement shall be made in writing signed by the party making the same, shall specify
the Section of this Agreement pursuant to which it is given or being made and shall be deemed given or made (a) on the date delivered
if delivered by telecopy or in person, (b) on the third Business Day after it is mailed if mailed by registered or certified mail
(return receipt requested) (with postage and other fees prepaid) or (c) on the day after it is delivered, prepaid, to an overnight
express delivery service that confirms to the sender delivery on such day, as follows:

 

	Stilwell Group:	Joseph Stilwell
	 	111 Broadway, 12th Floor
	 	New York, New York 10006
	 	Facsimile: 212-269-2675
	 	 
	With a copy to:	E. J. Borrack, Esq.
	 	c/o The Stilwell Group
	 	111 Broadway, 12th Floor
	 	New York, New York 10006
	 	Facsimile: 212-269-2675
	 	 
	Nominee:	Robert M. Bolton
	 	
        2507 Browncroft Blvd.

        Suite 102

        Rochester, New York 14625

 

 

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	Naugatuck Valley:	William C. Calderara
	 	President and Chief Executive Officer
	 	Naugatuck Valley Financial Corporation
	 	333 Church Street
	 	Naugatuck, Connecticut 06770
	 	Facsimile: 203-720-5016
	 	 
	With a copy to:	Sean P. Kehoe, Esq.
	 	Kilpatrick Townsend & Stockton LLP 
	 	607 14th Street, NW, Suite 900
	 	Washington, DC 20005
	 	Facsimile: 202-585-0051

 

8.            Governing Law and Choice of Forum.
Unless applicable federal law or regulation is deemed controlling, Connecticut law shall govern the construction and enforceability
of this Agreement. Any and all actions concerning any dispute arising hereunder shall be filed and maintained in the United States
District Court for the State of Connecticut or, if there is no basis for federal jurisdiction, in the Waterbury Superior Court.
The Stilwell Group, the Stilwell Group Members the Nominee agree that the United States District Court for the State of Connecticut
and the Waterbury Superior Court may exercise personal jurisdiction over them in any such actions.

 

9.            Severability. If any term,
provision, covenant or restriction of this Agreement is held by any governmental authority or a court of competent jurisdiction
to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall
remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

10.            Successors and Assigns.
This Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the successors and assigns, and
transferees by operation of law, of the parties. Except as otherwise expressly provided, this Agreement shall not inure to the
benefit of, be enforceable by or create any right or cause of action in any person, including any shareholder of the Company, other
than the parties to the Agreement. Nothing contained herein shall prohibit any Stilwell Group Member from transferring any portion
or all of the shares of Company Common Stock owned thereby at any time to any affiliate of Stilwell or any other Stilwell Group
Member but only if the transferee agrees in writing for the benefit of Naugatuck Valley (with a copy thereof to be furnished to
Naugatuck Valley prior to such transfer) to be bound by the terms of this Agreement (any such transferee shall be included in the
terms “Stilwell Group” and “Stilwell Group Member”).

 

11.            Survival of Representations,
Warranties and Covenants. All representations, warranties and covenants shall survive the execution and delivery of this Agreement
and shall continue for the term of this Agreement unless otherwise provided.

 

12.            Amendments. This Agreement
may not be modified, amended, altered or supplemented except by a written agreement executed by all of the parties.

 

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13.            Definitions. As used
in this Agreement, the following terms shall have the meanings indicated, unless the context otherwise requires:

 

(a)            The term “acquire” means
every type of acquisition, whether effected by purchase, exchange, operation of law or otherwise.

 

(b)            The term “acting in concert”
means (i) knowing participation in a joint activity or conscious parallel action towards a common goal, whether or not pursuant
to an express agreement, or (ii) a combination or pooling of voting or other interests in the securities of an issuer for a common
purpose pursuant to any contract, understanding, relationship, agreement or other arrangement, whether written or otherwise.

 

(c)            The term “affiliate” means,
with respect to any person, a person or entity that directly, or indirectly through one or more intermediaries, controls or is
controlled by, or is under common control with such other person.

 

(d)            The term “beneficial owner”
shall have the meaning ascribed to it, and be determined in accordance with, Rule 13d-3 of the Securities and Exchange Commission’s
Rules and Regulations under the Securities Exchange Act of 1934.

 

(e)            The term “change in control”
denotes circumstances under which: (i) any person or group becomes the beneficial owner of shares of capital stock of the Company
or the Bank representing 25% or more of the total number of votes that may be cast for the election of the Boards of Directors
of the Company or the Bank, (ii) the persons who were directors of the Company or the Bank cease to be a majority of the Board
of Directors, in connection with any tender or exchange offer (other than an offer by the Company or the Bank), merger or other
business combination, sale of assets or contested election, or combination of the foregoing, or (iii) shareholders of the Company
or the Bank approve a transaction pursuant to which substantially all of the assets of the Company or the Bank will be sold.

 

(f)            The term “control” (including
the terms “controlling,” “controlled by,” and “under common control with”) means the possession,
direct or indirect, of the power to direct or cause the direction of the management, activities or policies of a person or organization,
whether through the ownership of capital stock, by contract, or otherwise.

 

(g)            The term “group” has the
meaning as defined in Section 13(d)(3) of the Securities Exchange Act of 1934.

 

(h)            The term “person” includes
an individual, group acting in concert, corporation, partnership, association, joint stock company, trust, unincorporated organization
or similar company, syndicate, or any other group formed for the purpose of acquiring, holding or disposing of the equity securities
of the Company.

 

(i)            The term “transfer” means,
directly or indirectly, to sell, gift, assign, pledge, encumber, hypothecate or similarly dispose of (by operation of law or otherwise),
either voluntarily or involuntarily, or to enter into any contract, option or other arrangement or understanding with respect to
the sale, gift, assignment, pledge, encumbrance, hypothecation or similar disposition of (by operation of law or otherwise), any
Company Common Stock or any interest in any Company Common Stock; provided, however, that a merger or consolidation in which the
Company is a constituent corporation shall not be deemed to be the transfer of any common stock beneficially owned by the Stilwell
Group or a Stilwell Group Member.

 

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(j)            The term “vote” means to
vote in person or by proxy, or to give or authorize the giving of any consent as a stockholder on any matter.

 

14.            Counterparts; Facsimile.
This Agreement may be executed in any number of counterparts and by the parties in separate counterparts, and signature pages may
be delivered by facsimile, each of which when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

 

15.            Duty to Execute. Each
party agrees to execute any and all documents, and to do and perform any and all acts and things necessary or proper to effectuate
or further evidence the terms and provisions of this Agreement.

 

16.            Termination. This Agreement
shall cease, terminate and have no further force and effect upon the expiration of the term as set forth in Section 5, unless earlier
terminated pursuant to Section 4 or Section 5 hereof or by mutual written agreement of the parties.

 

[Remainder of this page intentionally
left blank.]

 

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IN WITNESS WHEREOF, this Agreement has been
duly executed by the undersigned and is effective as of the day and year first above written.

 

	 	 	 	 	 	 
	STILWELL VALUE PARTNERS II, L.P.	 	 	 	 
	 	 	 	 	 	 
	By:	Stilwell Value LLC	 	 	 	 
	 	General Partner	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Joseph Stilwell	 	 	 	 
	 	Joseph Stilwell	 	 	 	 
	 	Managing Member	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	STILWELL VALUE PARTNERS VII, L.P.	 	 	 	 
	 	 	 	 	 	 
	By:	Stilwell Value LLC	 	 		 
	 	General Partner	 	 	JOSEPH STILWELL	 
	 	 	 	 	 	 
	By:	/s/ Joseph Stilwell	 	 	/s/ Joseph Stilwell	 
	 	Joseph Stilwell 	 	 	Joseph Stilwell 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	STILWELL ACTIVIST INVESTMENTS, L.P.	 	 	 	 
	 	 	 	 	 	 
	By:	Stilwell Value LLC	 	 	 	 
	 	General Partner	 	By:	ROBERT M. BOLTON	 
	 	 	 	 	 	 
	By:	/s/ Joseph Stilwell	 	 	/s/ Robert M. Bolton	 
	 	Joseph Stilwell	 	 	Robert M. Bolton	 
	 	Managing Member	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	STILWELL PARTNERS, L.P.	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Joseph Stilwell	 	 	 	 
	 	Joseph Stilwell	 	 	 	 
	 	General Partner	 	 	 	 
	 	 	 	 	 	 
	STILWELL VALUE LLC	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Joseph Stilwell	 	 	 	 
	 	Joseph Stilwell	 	 	 	 
	 	Managing Member	 	 	 	 

 

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	STILWELL ACTIVIST FUND, L.P.	 	NAUGATUCK VALLEY FINANCIAL CORPORATION	 
	 	 	 	 	 	 
	By:	Stilwell Value LLC	 	 	 	 
	 	General Partner	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Joseph Stilwell	 	By:	/s/ William C. Calderara	 
	 	Joseph Stilwell	 	 	William C. Calderara	 
	 	Managing Member	 	 	President and Chief Executive Officer	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	NAUGATUCK VALLEY SAVINGS AND LOAN	 
	 	 	 	 	 	 
	 	 	 	By:	/s/ William C. Calderara	 
	 	 	 	 	William C. Calderara	 
	 	 	 	 	President and Chief Executive Officer	 

 

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EXHIBIT A

 

The Stilwell Group currently holds 679,831
shares of Company Common Stock.

 

    	A-1

    	 

    

 

EXHIBIT B

 

NON-DISCLOSURE AGREEMENT

 

THIS NON-DISCLOSURE
AGREEMENT (this “Agreement”), is made and entered into as of the date on which it is fully executed, as indicated
by signatures below, by and among Naugatuck Valley Financial Corporation (the “Company”), the Stilwell Group (composed
of Stilwell Value Partners II, L.P., Stilwell Value Partners VII, L.P., Stilwell Partners, L.P., Stilwell Value LLC, Stilwell Activist
Fund, L.P., Stilwell Activist Investments, L.P., and Joseph Stilwell, an individual, and their employees and representatives),
and ______________, a director whose name was placed in nomination by the Stilwell Group (“Director”).

 

WHEREAS, the
Director is a member of the Board of Directors of the Company and its wholly owned subsidiary, Naugatuck Valley Savings and Loan
(the “Bank”);

 

WHEREAS, the
Company, the Stilwell Group and the Director have agreed that it is in their mutual interests to enter into this Agreement as hereinafter
described.

 

NOW THEREFORE,
for good and valuable consideration, and intending to be legally bound hereby, the parties hereto mutually agree as follows:

 

1.            In connection
with the Director serving on the Boards of Directors of the Company and the Bank, the Director and other Company employees, directors,
and agents may divulge nonpublic information concerning the Company and its subsidiaries to the Stilwell Group and such information
may be shared among the Stilwell Group’s employees and agents who have a need to know such information. The Stilwell Group expressly
agrees to maintain all nonpublic information concerning the Company and its subsidiaries in confidence. The Stilwell Group expressly
acknowledges that federal and state securities laws may prohibit a person from purchasing or selling securities of a company, or
from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such other
person is likely to purchase or sell such securities, while the first-mentioned person is in possession of material nonpublic information
about such company. The Stilwell Group agrees to comply with the Company’s insider trading policies and procedures, as in effect
from time to time, to the same extent as if it were a director of the Company. To the extent the nonpublic information concerning
the Company and its subsidiaries received by the Stilwell Group is material, this Agreement is intended to satisfy the confidentiality
agreement exclusion of Regulation FD of the U.S. Securities and Exchange Commission (the “SEC”) set forth in Rule 100(b)(2)(ii)
of Regulation FD of the SEC.

 

2.            Each of the Stilwell
Group and the Director represents and warrants to the Company that this Agreement has been duly and validly authorized (in the
case of the entity members of the Stilwell Group), executed and delivered by them, and is a valid and binding agreement enforceable
against them in accordance with its terms.

 

3.            The Director
hereby further confirms to the Company that no event has occurred with respect to the Director that would require disclosure in
a document filed by the Company with the SEC pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act
of 1934, as amended, under Item 401(f) or Item 404(a) of SEC Regulation S-K.

 

    	B-1

    	 

    

 

4.            The Stilwell
Group acknowledges that with regard to its obligations to maintain the confidentiality of nonpublic information of the Company
and its subsidiaries, monetary damages may not be a sufficient remedy for any breach or threatened breach of this Agreement and
that, in addition to all other remedies, the Company may be entitled to seek specific performance and injunctive or other equitable
relief as a remedy for such breach, and agrees that in conjunction therewith the Company shall not be required to post any bond.

 

5.            This Agreement
constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof and supersedes all prior and
contemporaneous agreements, understandings, negotiations and discussions of the parties in connection therewith not referred to
herein.

 

6.            This Agreement
shall be governed by, and construed in accordance with, the laws of the State of Connecticut, without regard to choice of law principles
that may otherwise compel the application of the laws of any other jurisdiction. Each of the parties hereby irrevocably consents
to the exclusive jurisdiction of the state and federal courts sitting in the State of Connecticut to resolve any dispute arising
from this Agreement and waives any defense of inconvenient or improper forum.

 

7.            The terms and
provisions of this Agreement shall be deemed severable and, in the event any term or provision hereof or portion thereof is deemed
or held to be invalid, illegal or unenforceable, such provision shall be conformed to prevailing law rather than voided, if possible,
in order to achieve the intent of the parties, and, in any event, the remaining terms and provisions of this Agreement shall nevertheless
continue and be deemed to be in full force and effect and binding upon the parties.

 

8.            All representations,
warranties, covenants and agreements made herein shall survive the execution and delivery of this Agreement.

 

9.            This Agreement
may not be modified, amended, altered or supplemented except upon the execution and delivery of a written agreement executed by
all of the parties hereto.

 

10.            This Agreement
may be executed in counterparts, each of which shall be an original, but all of which together shall constitute one and the same
agreement.

 

    	B-2

    	 

    

 

IN WITNESS WHEREOF,
this Agreement has been duly executed and delivered by duly authorized officers of the undersigned as of the day and year first
above written.

 

 

	THE STILWELL GROUP	 	NAUGATUCK VALLEY FINANCIAL CORPORATION	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	Joseph Stilwell	 	By:	William C. Calderara, President and Chief Executive
Officer	 
	Date:	____________ __, 2014	 	Date:	____________ __, 2014	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	DIRECTOR	 	 	 	 
	Date:	____________ __, 2014	 	 	 	 

 

    	B-3Exhibit 4.1

 

FORM OF SUBORDINATED NOTE

 

NEWBRIDGE BANCORP

 

7.25% Subordinated Note due March 14, 2024

 

THIS OBLIGATION IS NOT A DEPOSIT AND
IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (THE “FDIC”) OR ANY OTHER GOVERNMENT AGENCY OR FUND.

 

THIS OBLIGATION IS SUBORDINATED AND JUNIOR
IN RIGHT OF PAYMENT TO THE OBLIGATIONS OF NEWBRIDGE BANCORP (THE “ISSUER”) TO ITS GENERAL AND SECURED CREDITORS
AND IS UNSECURED. IT IS INELIGIBLE AS COLLATERAL FOR ANY EXTENSION OF CREDIT BY THE ISSUER OR ANY OF ITS SUBSIDIARIES.

 

THIS NOTE WILL BE ISSUED AND MAY BE TRANSFERRED
ONLY IN MINIMUM DENOMINATIONS OF $50,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS NOTE IN A DENOMINATION
OF LESS THAN $50,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
NOT TO BE THE HOLDER OF THIS NOTE FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PAYMENTS ON THIS NOTE, AND SUCH
PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS NOTE.

 

THIS NOTE MAY BE SOLD ONLY IN COMPLIANCE
WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS NOTE
NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT. THIS NOTE IS ISSUED SUBJECT TO THE RESTRICTIONS ON TRANSFER, EXERCISE AND OTHER PROVISIONS OF A SUBORDINATED
NOTE PURCHASE AGREEMENT DATED MARCH 14, 2014 BETWEEN THE ISSUER AND THE LENDERS REFERRED TO THEREIN (THE “PURCHASE AGREEMENT”),
A COPY OF WHICH IS ON FILE WITH THE ISSUER. THE NOTE REPRESENTED BY THIS INSTRUMENT MAY NOT BE TRANSFERRED OR EXERCISED EXCEPT
IN COMPLIANCE WITH THE PURCHASE AGREEMENT. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH THE PURCHASE AGREEMENT WILL BE VOID.

 

    	 

    	 

    

 

CERTAIN ERISA CONSIDERATIONS:

 

THE HOLDER OF THIS NOTE, OR ANY INTEREST
HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
(“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)
(EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S
INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS NOTE OR ANY INTEREST
HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS
NOTE, OR ANY INTEREST HEREIN, ARE NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE
AND HOLDING. ANY PURCHASER OR HOLDER OF THIS NOTE OR ANY INTEREST HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND
HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN TO WHICH TITLE I OF ERISA OR SECTION 4975 OF THE
CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF ANY SUCH EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR
ENTITY USING THE “PLAN ASSETS” OF ANY SUCH EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE
OR HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH FULL EXEMPTIVE
RELIEF IS NOT AVAILABLE UNDER APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

 

ANY FIDUCIARY OF ANY PLAN WHO IS CONSIDERING
THE ACQUISITION OF ANY OF THIS SUBORDINATED NOTE SHOULD CONSULT WITH HIS OR HER LEGAL COUNSEL PRIOR TO ACQUIRING SUCH SUBORDINATED
NOTE.

 

    	2

    	 

    

 

	 	Principal	 
	 	 	 
	 	Amount:	
        $____________

 

NEWBRIDGE BANCORP

7.25% Subordinated Note due March 14, 2024

 

1.          Payment.

 

(a)         NEWBRIDGE
BANCORP, a North Carolina corporation (the “Issuer”), for value received, hereby promises to pay to ____________________,
the principal sum of _________________ Dollars (U.S.) ($________) plus accrued but unpaid interest on March 14, 2024 (the “Maturity
Date”) and to pay interest on such principal amount at the rate of 7.25% per annum (computed on the basis of a 360-day
year of twelve 30-day months) from March 14, 2014, or from the most recent Interest Payment Date to which interest has been paid
or duly provided, on January 1 and July 1 of each year (each, an “Interest Payment Date”), commencing July 1,
2014, until the principal hereof is paid or made available for payment.

 

(b)         Any
payment of principal of or interest on this 7.25% Subordinated Note (this “Note”) that would otherwise become
due and payable on a day which is not a Business Day shall become due and payable on the next succeeding Business Day, with the
same force and effect as if made on the date for payment of such principal or interest, and no interest shall accrue in respect
of such payment for the period after such day. The term “Business Day” means any day that is not a Saturday
or Sunday and that is not a day on which banks in the State of North Carolina are generally authorized or required by law or executive
order to be closed.

 

2.          Subordinated
Notes. This Note is one of a duly authorized issue of notes of the Issuer designated as 7.25% Subordinated Notes due March
14, 2024 (herein called the “Subordinated Notes”), initially limited in aggregate principal amount to $15,500,000.

 

3.          Subordination.
The indebtedness of the Issuer evidenced by the Subordinated Notes, including the principal and interest on this Note, shall be
subordinate and junior in right of payment to the following, whether now outstanding or subsequently created, assumed or incurred
(collectively, “Senior Indebtedness”): (a) all indebtedness of the Issuer for money borrowed, whether or not
evidenced by bonds, debentures, securities, notes or other written instruments; (b) any deferred obligations of the Issuer for
the payment of the purchase price of property or assets acquired other than in the ordinary course of business; (c) all obligations,
contingent or otherwise, of the Issuer in respect of any letters of credit, bankers’ acceptances, security purchase facilities
and similar credit transactions; (d) any capital lease obligations of the Issuer; (e) all obligations of the Issuer in respect
of interest rate swap, cap or other agreements, interest rate future or option contracts, currency swap agreements, currency future
or option contacts, commodity contracts and other similar arrangements; (f) all obligations of the type referred to in clauses
(a) through (e) of other persons for the payment of which the Issuer is responsible or liable as obligor, guarantor or otherwise;
and (g) all obligations of the types referred to in clauses (a) through (f) of other persons secured by a lien on any property
or asset of the Issuer; except “Senior Indebtedness” does not include (i) the Subordinated Notes, (ii) any obligation
that by its terms is on parity with the Subordinated Notes, (iii) any indebtedness between the Issuer and any of its subsidiaries
or affiliates or (iv) the Junior Subordinated Indebtedness (as defined below).

 

    	3

    	 

    

 

In the event of any
insolvency, dissolution, assignment for the benefit of creditors, reorganization, restructuring of debt, marshaling of assets and
liabilities or similar proceedings or any liquidation or winding up of or relating to the Issuer, whether voluntary or involuntary,
holders of Senior Indebtedness shall be entitled to be paid in full before any payment shall be made on account of the principal
of or interest on the Subordinated Notes, including this Note. In the event of any such proceeding, after payment in full of all
sums owing with respect to the Senior Indebtedness, the registered holders of the Subordinated Notes from time to time (the “Noteholders”),
together with the holders of any obligations of the Issuer ranking on a parity with the Subordinated Notes, shall be entitled to
be paid from the remaining assets of the Issuer the unpaid principal thereof, and the unpaid interest thereon before any payment
or other distribution, whether in cash, property or otherwise, shall be made on account of any capital stock or any present or
future obligations of the Issuer ranking junior to the Subordinated Notes (collectively, “Junior Subordinated Indebtedness”),
which includes (i) any obligation that by its terms is subordinated to the Subordinated Notes and (ii) the $25,000,000 junior subordinated
debenture due September 30, 2035 and guaranty issued by the Issuer in connection with the trust preferred securities of FNB Financial
Services Capital Trust I (the “Trust Preferred Securities”) and all other debt securities and guarantees in
respect of similar preferred securities or other securities issued by a financing vehicle of the Issuer and guaranteed by the Issuer
that rank pari passu with, or junior to, the Trust Preferred Securities.

 

If there shall have
occurred and be continuing (a) a default in any payment with respect to any Senior Indebtedness or (b) an event of default with
respect to any Senior Indebtedness as a result of which the maturity thereof is accelerated, unless and until such payment default
or event of default shall have been cured or waived or shall have ceased to exist, no payments shall be made by the Issuer with
respect to the Notes. The provisions of this paragraph shall not apply to any payment with respect to which the immediately preceding
paragraph of this Section 3 would be applicable.

 

Nothing herein shall
impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note in
accordance with its terms. Nothing herein shall act to prohibit, limit or impede the Issuer from issuing additional debt of the
Issuer having the same rank as the Subordinated Notes or which may be junior or senior in rank to the Subordinated Notes.

 

4.          Merger
and Sale of Assets. The Issuer shall not merge into another entity or convey, transfer or lease its properties and assets substantially
as an entirety to any person, unless:

 

(a)         the
continuing entity into which the Issuer is merged or the person which acquires by conveyance or transfer or which leases the properties
and assets of the Issuer substantially as an entirety shall be a corporation, association or other legal entity organized and existing
under the laws of the United States of America, any State thereof or the District of Columbia and expressly assumes the due and
punctual payment of the principal of and any premium and interest on the Subordinated Notes according to their terms, and the due
and punctual performance of all covenants and conditions hereof on the part of the Issuer to be performed or observed; and

 

    	4

    	 

    

 

(b)         immediately
after giving effect to such transaction, no Event of Default (as defined below), and no event which, after notice or lapse of time
or both, would become an Event of Default, shall have happened and be continuing.

 

5.          Events
of Default; Acceleration; Compliance Certificate. If any of the following events shall occur and be continuing (each an “Event
of Default”):

 

(a)         the
Issuer shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect,
or shall consent to the appointment of a receiver, liquidator, trustee or other similar official in any liquidation, insolvency
or similar proceeding with respect to the Issuer or all or substantially all of its property, or shall make an assignment for the
benefit of creditors; or

 

(b)        a
court or other governmental agency or body having jurisdiction on the premises shall enter a decree or order for the appointment
of a receiver, liquidator, trustee or other similar official in any liquidation, insolvency or similar proceeding with respect
to the Issuer or all or substantially all of the property of the Issuer, or for the winding up of the affairs or business of the
Issuer and such decree or order shall have remained in force for 60 days;

 

then, and in each such case, unless the
principal of this Note already shall have become due and payable, the Noteholder of this Note, by notice in writing to the Issuer,
may declare the principal amount of this Note to be due and payable immediately and, upon any such declaration the same shall become
and shall be immediately due and payable. The Issuer waives demand, presentment for payment, notice of nonpayment, notice of protest,
and all other notices.

 

The Issuer, within
90 calendar days after the receipt of written notice from any Noteholder of the occurrence of an Event of Default with respect
to this Note, shall mail to all Noteholders, at their addresses shown on the Security Register (as defined in Section 10 below),
such written notice of Event of Default, unless such Event of Default shall have been cured or waived before the giving of such
notice as certified by the Issuer in writing.

 

6.          Failure
to Make Payment. In the event of failure by the Issuer to make any required payment of principal or interest on this Note (and,
in the case of payment of interest, such failure to pay shall have continued for 30 calendar days), the Issuer will, upon demand
of the Noteholder, pay to the Noteholder the whole amount then due and payable on this Note for principal and interest (without
acceleration), with interest on the overdue principal and interest at the rate borne by this Note, to the extent permitted by applicable
law. If the Issuer fails to pay such amount upon such demand, the Noteholder may, among other things, institute a judicial proceeding
for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the
same against the Issuer and collect the amounts adjudged or decreed to be payable in the manner provided by law out of the property
of the Issuer.

 

    	5

    	 

    

 

Upon the occurrence
of a failure by the Issuer to make any required payment of principal or interest on the Note, the Issuer shall not (a) declare
or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the
Issuer’s capital stock, (b) make any payment of principal or interest or premium, if any, on or repay, repurchase or redeem
any debt securities of the Issuer that rank equal with or junior to the Subordinated Notes, or (c) make any payments under any
guarantee that ranks equal with or junior to the Subordinated Notes, other than (i) any dividends or distributions in shares of,
or options, warrants or rights to subscribe for or purchase shares of, any class of Issuer’s common stock; (ii) any declaration
of a dividend in connection with the implementation of a shareholders’ rights plan, or the issuance of stock under any such
plan in the future, or the redemption or repurchase of any such rights pursuant thereto; (iii) as a result of a reclassification
of Issuer’s capital stock or the exchange or conversion of one class or series of Issuer’s capital stock for another
class or series of Issuer’s capital stock; (iv) the purchase of fractional interests in shares of Issuer’s capital
stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged; or
(v) purchases of any class of Issuer’s common stock related to the issuance of common stock or rights under any of benefit
plans for Issuer’s directors, officers or employees or any of Issuer’s dividend reinvestment plans.

 

7.          Redemption
or Repayment. The Issuer, in its discretion, shall have the right to redeem or prepay any or all of the Subordinated Notes,
including this Note, in whole or in part, without premium or penalty, at any time on or after March 14, 2019 and prior to the Maturity
Date, but in all cases in a principal amount with integral multiples of $1,000, on any Interest Payment Date at a price of 100%
of the principal amount of the Note to be redeemed or prepaid on such date, plus interest accrued and unpaid to the date of redemption
or prepayment. Any such redemption or prepayment shall be subject to receipt of any and all required regulatory approvals. In the
case of any redemption or prepayment of this Note, the Issuer will give the Noteholders of the Subordinated Notes to be redeemed
or prepaid notice not less than 30 nor more than 45 calendar days prior to the redemption or prepayment date as to the aggregate
principal amount to be redeemed or prepaid. In a case where the Issuer is making a redemption or prepayment with respect to the
Subordinated Notes in an amount less than the aggregate amount of principal of the Subordinated Notes then outstanding, the Issuer
shall select, in such manner as in its sole discretion it shall deem appropriate and fair, the Subordinated Notes or portions thereof
(in integral multiples of $1,000) to be redeemed or prepaid, and in connection therewith may treat differently Subordinated Notes
with outstanding principal less than, more than or equal to such amount as the Issuer shall fix in its sole discretion.

 

The Issuer shall have
the right to purchase any of the Subordinated Notes at any time in the open market, private transactions or otherwise. If the Issuer
purchases any Subordinated Notes, it may, in its discretion, hold, resell or cancel any of the purchased Subordinated Notes.

 

    	6

    	 

    

 

8.          Payment
Procedures. Unless and until the Subordinated Notes shall be evidenced by a global note held by Depository Trust Company, payment
of the principal and interest payable on the Maturity Date will be made by check, or by wire transfer in immediately available
funds to a bank account in the United States designated by the registered Noteholder of this Note if such Noteholder shall have
previously provided wire instructions to the Issuer, upon presentation and surrender of this Note at the Payment Office (as defined
in Section 13 below) or at such other place or places as the Issuer shall designate by notice to the registered Noteholders
as the Payment Office, provided that this Note is presented to the Issuer in time for the Issuer to make such payments in such
funds in accordance with its normal procedures. Payments of interest (other than interest payable on the Maturity Date) shall be
made by wire transfer in immediately available funds or check mailed to the registered Noteholder, as such person’s address
appears on the Security Register. Interest payable on any Interest Payment Date shall be payable to the Noteholder in whose name
this Note is registered at the close of business on December 15 or June 15, as the case may be (whether or not a Business Day),
next preceding such Interest Payment Date (such date being referred to herein as the “Regular Record Date”)
for such Interest Payment Date, except that interest not paid on the Interest Payment Date, if any, will be paid to the Noteholder
in whose name this Note is registered at the close of business on a Special Record Date fixed by the Issuer (a “Special
Record Date”) notice of which shall be given to the holder not less than ten (10) calendar days prior to such Special
Record Date. (The Regular Record Date and Special Record Date are referred to herein collectively as the “Record Dates”).
To the extent permitted by applicable law, interest shall accrue, at the rate at which interest accrues on the principal of this
Note, on any amount of principal or interest on this Note not paid when due. All payments on this Note shall be applied first to
accrued interest and then the balance, if any, to principal.

 

9.          Form
of Payment. Payments of principal and interest on this Note shall be made in such coin or currency of the United States of
America as at the time of payment shall be legal tender for the payment of public and private debts.

 

10.        Registration
of Transfer, Security Register. Except as otherwise provided herein, this Note is transferable in whole or in part, and may
be exchanged for a like aggregate principal amount of Subordinated Notes of other authorized denominations, by the Noteholder in
person, or by his attorney duly authorized in writing, at the Payment Office. The Issuer shall maintain a register providing for
the registration of the Subordinated Notes and any exchange or transfer thereof (the “Security Register”). Upon
surrender or presentation of this Note for exchange or registration of transfer, the Issuer shall execute and deliver in exchange
therefor a Subordinated Note or Subordinated Notes of like aggregate principal amount, each in a minimum denomination of $50,000
or any amount in excess thereof which is an integral multiple of $1,000 (and, in the absence of an opinion of counsel satisfactory
to the Issuer to the contrary, bearing the restrictive legend(s) set forth hereinabove) and that is or are registered in such name
or names requested by the Noteholder. Any Note presented or surrendered for registration of transfer or for exchange shall be duly
endorsed and accompanied by a written instrument of transfer in such form as is attached hereto and incorporated herein, duly executed
by the Noteholder or his attorney duly authorized in writing, with such tax identification number or other information for each
person in whose name a Subordinated Note is to be issued, and accompanied by evidence of compliance with any restrictive legend(s)
appearing on such Subordinated Note or Subordinated Notes as the Issuer may reasonably request to comply with applicable law. No
exchange or registration of transfer of this Note shall be made on or after the fifteenth day immediately preceding the Maturity
Date. This Note is subject to the restrictions on transfer of the Purchase Agreement between the Issuer and the original Noteholders,
a copy of which is on file with the Issuer.

 

    	7

    	 

    

 

11.         Charges
and Transfer Taxes. No service charge (other than any cost of delivery) shall be imposed for any exchange or registration of
transfer of this Note, but the Issuer may require the payment of a sum sufficient to cover any stamp or other tax or governmental
fee or charge that may be imposed in connection therewith (or presentation of evidence that such tax, charge or fee has been paid).

 

12.         Ownership.
Prior to due presentment of this Note for registration of transfer, the Issuer may treat the Noteholder in whose name this Note
is registered in the Security Register as the absolute owner of this Note for receiving payments of principal and interest on this
Note and for all other purposes whatsoever, whether or not this Note be overdue, and the Issuer shall not be affected by any notice
to the contrary.

 

13.         Notices.
All notices to the Issuer under this Note shall be in writing and addressed to the Issuer at NewBridge Bancorp, 1501 Highwoods
Boulevard, Suite 400, Greensboro, North Carolina 27410, Attention: Treasurer, or to such other address as the Issuer may notify
to the Noteholder (the “Payment Office”). All notices to the Noteholders shall be in writing and sent by first-class
mail to each Noteholder at his or its address as set forth in the Security Register.

 

14.         Denominations.
The Subordinated Notes are issuable only as fully registered Notes without interest coupons in minimum denominations of $50,000
or any amount in excess thereof which is an integral multiple of $1,000.

 

15.         Absolute
and Unconditional Obligation of the Issuer. No provisions of this Note shall alter or impair the obligation of the Issuer,
which is absolute and unconditional, to pay the principal and interest on this Note at the times, places and rate, and in the coin
or currency, herein prescribed.

 

16.         Waiver
and Consent. (a) Any consent or waiver given by the Noteholder of this Note shall be conclusive and binding upon such Noteholder
and upon all future Noteholders of this Note and of any Note issued upon the registration of transfer hereof or in exchange therefor
or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

(a)          No
delay or omission of the Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair such right
or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.

 

(b)          Any
insured depository institution which shall be a Noteholder of this Note or which otherwise shall have any beneficial ownership
interest in this Note shall, by its acceptance of such Note (or beneficial interest therein), be deemed to have waived any right
of offset with respect to the indebtedness evidenced thereby.

 

17.         Further
Issues. The Issuer may, without the consent of the holders of the Subordinated Notes, create and issue additional notes having
the same terms and conditions of the Subordinated Notes (except for the issue date and issue price) so that such further notes
shall be consolidated and form a single series with the Subordinated Notes. Any such issuance will either be registered or issued
pursuant to an exemption from registration under the Securities Act.

 

    	8

    	 

    

 

18.         Governing
Law; Interpretation. This Note shall be governed by and construed in accordance with applicable federal law and the laws of
the State of North Carolina, without regard to conflict of laws principles of said state. This Note is intended to meet the criteria
for qualification of the outstanding principal as Tier 2 capital under the regulatory guidelines of the Board of Governors of the
Federal Reserve System, and the terms hereof shall be interpreted in a manner to satisfy such intent.

 

19.         Priority.
The Subordinated Notes rank pari passu among themselves and pari passu, in the event of any insolvency proceeding,
dissolution, assignment for the benefit of creditors, reorganization, restructuring of debt, marshaling of assets and liabilities
or similar proceeding or any liquidation or winding up of the Issuer, with all other present or future unsecured subordinated debt
obligations of the Issuer, except any unsecured subordinated debt that may be expressly stated to be senior to or subordinate to
the Subordinated Notes.

 

IN WITNESS WHEREOF,
the undersigned has caused this Note to be duly executed and attested and its corporate seal to be hereunto affixed.

 

	 	NEWBRIDGE BANCORP
	 	 	 	 
	 	By:	 
	 	 	Name	 
	 	 	Title:	 

 

	ATTEST:	 
	 	 
	 	 
	Name:	 
	Title:	 

 

    	9

    	 

    

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

I or we assign and transfer this Note to:

 

	 
	(Print or type assignee’s name, address and zip code)
	 
	 
	(Insert assignee’s social security or tax I.D. No.)

 

and irrevocably appoint ___________ agent
to transfer this Note on the books of the Issuer. The agent may substitute another to act for him.

 

	Date:	Your Signature: 	 

 

	Signature Guarantee: 	 

(Signature must be guaranteed)

 

	 
	Sign exactly as your name appears on the other side of this Note.

 

The signature(s) should be guaranteed by
an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”).

 

The undersigned
hereby certifies that it  ̈ is /  ̈
is not an Affiliate of the Issuer and that, to its knowledge, the proposed transferee  ̈
is /  ̈ is not an Affiliate of the Issuer.

 

In connection with
any transfer or exchange of this Note occurring prior to the date that is one year after the later of the date of original issuance
of this Note and the last date, if any, on which this Note was owned by the Issuer or any Affiliate of the Issuer, the undersigned
confirms that this Note is being:

 

CHECK ONE BOX BELOW:

 

	 	(1)	 ̈	acquired for the undersigned’s own account, without transfer; or
	 	 	 	 
	 	(2)	 ̈	transferred to the Issuer; or
	 	 	 	 
	 	(3)	 ̈	transferred pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”); or
	 	 	 	 
	 	(4)	 ̈	transferred pursuant to an effective registration statement under the Securities Act; or
	 	 	 	 
	 	(5)	 ̈	transferred pursuant to and in compliance with Regulation S under the Securities Act; or
	 	 	 	 
	 	(6)	 ̈	transferred to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) or an “accredited investor” (as defined in Rule 501(a)(4) under the Securities Act), that has furnished to Issuer a signed letter containing certain satisfactory representations and agreements establishing such status; or

 

    	10

    	 

    

 

	 	(7)	 ̈	transferred pursuant to another available exemption from the registration requirements of the Securities Act.

 

Unless one of the boxes is checked, the
Issuer will refuse to register this Note in the name of any person other than the registered Noteholder thereof; provided,
however, that if box (5), (6) or (7) is checked, the Issuer may require, prior to registering any such transfer of this Note,
in its sole discretion, such legal opinions, certifications and other information as the Issuer may reasonably request to confirm
that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements
of the Securities Act such as the exemption provided by Rule 144 under such Act.

 

	 	 	 
	 	 	Signature
	 	 	 
	Signature Guarantee:	 	 
	 	 	 
	 	 	 
	(Signature must be guaranteed)	 	Signature

 

The signature(s) should be guaranteed by
an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to Exchange Act Rule 17Ad-15.

 

TO BE COMPLETED BY PURCHASER IF BOX (1)
OR (3) ABOVE IS CHECKED.

 

The undersigned represents
and warrants that it is purchasing this Note for its own account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A
under the Securities Act and it is aware that the sale to it is being made in reliance on Rule 144A, and it acknowledges that
it has received such information regarding the Issuer as the undersigned has requested pursuant to Rule 144A or has determined
not to request such information and that it is aware that the transferor is relying upon the undersigned’s foregoing representations
in order to claim the exemption from registration provided by Rule 144A.

 

	 	 
	 	Signature
	 	 
	 	 
	 	Date

 

    	11

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