Document:

EX-4.2

 Exhibit 4.2 

UNITED FINANCIAL BANCORP, INC. 

and 
 WILMINGTON TRUST,
NATIONAL ASSOCIATION 
 as Trustee 

FIRST SUPPLEMENTAL INDENTURE 

Dated as of September 23, 2014 

to 
 SUBORDINATED DEBT
SECURITIES INDENTURE 
 Dated as of September 23, 2014 

 
  

5.75% Subordinated Notes due October 1, 2024 
  

 

  
 1 

 THIS FIRST SUPPLEMENTAL INDENTURE (this “First Supplemental Indenture”), dated
as of September 23, 2014, between UNITED FINANCIAL BANCORP, INC., a corporation duly organized and existing under the laws of the State of Connecticut (the “Company”), and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national
banking association duly organized and existing under the laws of the United States, as Trustee (the “Trustee”), under the Base Indenture (as hereinafter defined). 

RECITALS 
 WHEREAS, the Company
and the Trustee have heretofore executed and delivered the Subordinated Debt Securities Indenture, dated as of September 23, 2014 (the “Base Indenture” and, as hereby supplemented and amended, the “Indenture”),
providing for the establishment from time to time of Series of the Company’s subordinated unsecured debt securities, which may be notes, bonds, debentures or other evidences of indebtedness of the Company (hereinafter called the
“Securities”) and the issuance from time to time of Securities under the Indenture; 
 WHEREAS, Section 8.01(f) of the
Base Indenture provides that the Company and the Trustee may enter into an indenture supplemental to the Base Indenture to establish a Series of Securities thereunder and the form and terms, provisions and conditions of Securities of such Series of
Securities as permitted by Section 2.01 and Section 2.03 of the Base Indenture; 
 WHEREAS, pursuant to Section 2.03 of the
Base Indenture, the Company desires to establish a new Series of Securities under the Indenture to be known as its “5.75% Subordinated Notes due October 1, 2024” (the “2024 Series”) and to establish and set the form
and terms, provisions and conditions of the notes of the 2024 Series (the “Notes”), as provided in this First Supplemental Indenture and to provide for the initial issuance of Notes of the 2024 Series in the aggregate principal
amount of $75,000,000; and 
 WHEREAS, the Company has requested that the Trustee execute and deliver this First Supplemental Indenture; and
all requirements necessary to make this First Supplemental Indenture a valid, binding and enforceable instrument in accordance with its terms, and to make the Notes, when executed by the Company and authenticated and delivered by the Trustee, the
valid, binding and enforceable obligations of the Company, have been satisfied; and the execution and delivery of this First Supplemental Indenture has been duly authorized in all respects. 

NOW, THEREFORE, in consideration of the covenants and agreements set forth herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 ARTICLE 1 

DEFINITIONS 

Section 1.01 Relation to Base Indenture. This First Supplemental Indenture constitutes an integral part of the Base
Indenture. 
 Section 1.02 Definition of Terms. For all purposes of this First Supplemental Indenture: 

(a) Capitalized terms used herein without definition shall have the meanings set forth in the Base Indenture; provided,
however, that if the definition of a capitalized term defined in this First Supplemental Indenture conflicts with the definition of that capitalized term in the Base Indenture, the definition of that capitalized term in this First Supplemental
Indenture shall control for purposes of the Indenture, including this First Supplemental Indenture, with respect to the Notes; 

(b) a term defined anywhere in this First Supplemental Indenture has the same meaning throughout; 

(c) the singular includes the plural and vice versa; 

  
 2 

 (d) headings are for convenience of reference only and do not affect
interpretation; 
 (e) unless otherwise specified or unless the context requires otherwise, (i) all references in this
First Supplemental Indenture to Sections refer to the corresponding Sections of this First Supplemental Indenture and (ii) the terms “herein”, “hereof”, “hereunder” and any other word of similar import refer to
this First Supplemental Indenture; and 
 (f) for purposes of this First Supplemental Indenture and the Notes, the following
terms have the meanings given to them in this Section 1.02(f): 
 “Business Day” means any day other
than a Saturday, Sunday or other day on which banking institutions in the Town of Glastonbury, Connecticut, or The City of New York, New York, or a place of payment are authorized or obligated by law, regulation or executive order to close. 

“Depository Institution” means a Significant Subsidiary of the Company that is a major subsidiary depository
institution within the meaning of 12 CFR Section 217.20(d)(1)(vi). 
 “DTC” shall have the meaning set
forth in Section 2.03 hereof. 
 “Event of Default” means any one of the following events (whatever the
reason for such Event of Default and whether or not it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or
governmental body): 
 (1) default in the payment of any interest on any Note, when such interest becomes due and payable,
and continuance of such default for a period of 30 days; or 
 (2) default in the payment of the principal of any Note when
it becomes due and payable at its Maturity or upon redemption; or 
 (3) default in the performance, or breach, of any
covenant or warranty of the Company with respect to any Note (other than a covenant or warranty which has expressly been included in the Base Indenture solely for the benefit of a series of Securities issued under the Base Indenture other than the
Notes), and continuance of such default or breach for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount
of the Notes a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” under the Base Indenture; or 

(4) the Company or any Significant Subsidiary that is not a depository institution pursuant to or within the meaning of any
Bankruptcy Law: 
  

	 	(A)	commences a voluntary case, 

  

	 	(B)	consents to the entry of an order for relief against it in an involuntary case, 

  

	 	(C)	consents to the appointment of a Custodian of it or for all or substantially all of its property, or 

  

	 	(D)	makes a general assignment for the benefit of its creditors; or 

 (5) a court of
competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

  
 3 

	 	(A)	is for relief against the Company or any Significant Subsidiary that is not a depository institution in an involuntary case, 

  

	 	(B)	appoints a Custodian of the Company or any Significant Subsidiary that is not a depository institution or for all or substantially all of either of its property, or 

 

	 	(C)	orders the liquidation of the Company or any Significant Subsidiary that is not a depository institution, and the order or decree remains unstayed and in effect for 90 days; or 

(6) any Significant Subsidiary that is a depository institution consents to the entry of or a court other governmental agency
enters an order or decree for the appointment of a receiver or conservator or similar official in a liquidation, insolvency or similar proceeding with respect to such Significant Subsidiary that is a or all or substantially all of its property and
the order or decree remains unstayed and in effect for 90 days. 
 As used herein, the term “Bankruptcy Law” means title 11, U.S.
Code or any similar Federal or state law for the relief of debtors and the term “Custodian” means any receiver, trustee, assignee, liquidator or other similar official under any Bankruptcy Law. 

“Existing Company Junior Subordinated Debt” means those subordinated debentures of the Company due
March 15, 2036. 
 “Federal Reserve Board” means the Board of Governors of the Federal Reserve System
or any successor regulatory authority with jurisdiction over bank holding companies. 
 “Global Note” shall
be a Global Security and have the meaning set forth in Section 2.04 hereof. 
 “Indebtedness” means,
with respect to any Person, without duplication, (i) any Obligation of such Person relating to any indebtedness of such Person (A) for borrowed or purchased money, including, without limitation, such obligations as are evidenced by or
arise pursuant to credit agreements, notes, debentures, bonds and similar instruments, (B) in respect of any deferred obligation of such Person for the payment of the purchase price of property, goods, materials or services purchased or
acquired and accrued liabilities arising in the ordinary course of business, (C) in respect of letters of credit, bankers acceptances, securities purchase facilities and similar transactions, (D) in respect of capitalized lease
obligations, (E) in respect of such Person’s obligations as lessee under leases of property whether made as part of a sale and leaseback transaction to which we are a party or otherwise, (F) under or relating to derivatives contracts,
including interest rate swaps, caps or similar agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts, commodity contracts and similar agreements, or (G) in respect of any obligations
of such Person to its general creditors, as defined for the purposes of the regulations of the Federal Reserve Board, applicable to bank holding companies and codified at 12 C.F.R. Part 217, as the same may be amended or supplemented from time to
time, and as necessary for the notes to qualify as Tier 2 Capital under such regulations; (ii) any liability of others of the kind described in the preceding clause (i), which such Person has Guaranteed or which is otherwise its legal liability
as a result of any assumption, purchase commitment, or otherwise or which is secured by any lien on any of such Person’s property or assets; and (iii) any and all deferrals, renewals, extensions and refunding of, or amendments,
modifications or supplements to, any liability of the kind described in the preceding clauses (i) and/or (ii). 

“Independent Bank Regulatory Counsel” means a law firm, a member of a law firm or an independent practitioner
that is experienced in matters of federal bank holding company and banking regulatory law, including the laws, rules and the guidelines of the Federal Reserve Board relating to regulatory capital, and shall include any person who, under the
standards of professional conduct then prevailing and applicable to such counsel, would not have a conflict of interest in representing the Company in connection with providing the legal opinion contemplated by the definition of the term “Tier
2 Capital Event.” 

  
 4 

 “Independent Tax Counsel” means a law firm, a member of a law
firm or an independent practitioner that is experienced in matters of federal income taxation law, including the deductibility of interest payments made with respect to corporate debt instruments, and shall include any person who, under the
standards of professional conduct then prevailing and applicable to such counsel, would not have a conflict of interest in representing the Company in connection with providing the legal opinion contemplated by the definition of the term “Tax
Event.” 
 “Insolvency Event of Default” means items 4, 5 and 6 set forth in the definition of
“Event of Default.” 
 “Interest Payment Date” shall have the meaning set forth in
Section 2.05(b) hereof. 
 “Maturity Date” shall have the meaning set forth in Section 2.02
hereof. 
 “Regular Record Date” means with respect to each Interest Payment Date that is on April 1,
the immediately preceding March 15, whether or not a Business Day, and with respect to each Interest Payment Date that is on October 1, the immediately preceding September 15, whether or not a Business Day. 

“Redemption Date” shall have the meaning set forth in Section 3.01 hereof. 

“Redemption Price” shall have the meaning set forth in Section 3.01 hereof. 

“Senior Indebtedness” means Indebtedness, obligation or liability of the Company, whether outstanding on the
date of this Indenture or thereafter created, incurred, assumed or guaranteed by the Company, other than the following: (1) any Indebtedness, obligation or liability as to which, in the instrument creating or evidencing such Indebtedness,
obligation or liability it is expressly provided that the Indebtedness, obligation or liability is not senior in right of payment, is junior in right of payment to, or ranks equally in right of payment with, other specified types of Indebtedness,
obligations or liabilities which other specified types of Indebtedness, obligations or liabilities include the Notes; (2) any Indebtedness, obligation or liability that is subordinated to Indebtedness, obligations or liabilities to
substantially the same extent as or to a greater extent than the Notes are subordinated; (3) with respect to any series of Notes, any Indebtedness of the Company evidenced by Notes of the same or of another series; and (4) the
Company’s outstanding subordinated debentures. 
 “Significant Subsidiary” means any Subsidiary that is
significant subsidiary as defined in Article 1, Rule 1-02 of Regulation S-X promulgated under the Securities Act of 1933, as amended. 

“Tax Event” means the receipt by the Company of an opinion of Independent Tax Counsel to the effect that, as a
result of: 
 (1) any amendment to or change (including any announced prospective amendment or change) in any law or treaty,
or any regulation thereunder, of the United States or any of its political subdivisions or taxing authorities; 
 (2) any
judicial decision, administrative action, official administrative pronouncement, ruling, regulatory procedure, regulation, notice or announcement, including any notice or announcement of intent to adopt or promulgate any ruling, regulatory procedure
or regulation (any of the foregoing, an “administrative or judicial action”); 

  
 5 

 (3) any amendment to or change in any official position with respect to, or any
interpretation of, an administrative or judicial action or a law or regulation of the United States that differs from the previously generally accepted position or interpretation; or 

(4) a threatened challenge asserted in writing in connection with an audit of the Company’s federal income tax returns or
positions or a similar audit of any of its Subsidiaries, or a publicly known threatened challenge asserted in writing against any other taxpayer that has raised capital through the issuance of securities that are substantially similar to the Notes,

 in each case, occurring or becoming publicly known on or after the first date on which any Notes are sold, there is more than an
insubstantial increase in the risk that interest paid by the Company on the Notes is not, or, within 90 days of the date of such opinion, will not be, deductible by the Company, in whole or in part, for United States federal income tax purposes.

 “Tier 2 capital” has the meaning ascribed to such term in applicable regulations of the Federal Reserve
Board. 
 “Tier 2 Capital Event” means the receipt by the Company of an opinion of Independent Bank
Regulatory Counsel to the effect that, as a result of: 
 (1) any amendment to, or change (including any announced
prospective change) in, the laws or any regulations thereunder of the United States or any rules, guidelines or policies of an applicable regulatory authority for the Company; or 

(2) any official administrative pronouncement or judicial decision interpreting or applying such laws or regulations, 

which amendment or change is effective or which pronouncement or decision is announced on or after the date of original issuance of the Notes,
the Notes do not constitute, or within 90 days of the date of such opinion will not constitute, Tier 2 capital (or its then equivalent if the Company were subject to such capital requirement) for purposes of capital adequacy guidelines of the
Federal Reserve Board, as then in effect and applicable to the Company. 
 The terms “Company,”
“Trustee,” “Base Indenture,” and “Notes” shall have the respective meanings set forth in the recitals to this First Supplemental Indenture and the paragraph preceding such recitals. 

ARTICLE 2 
 ESTABLISHMENT
OF THE 2024 SERIES AND 
 GENERAL TERMS AND CONDITIONS OF THE NOTES 

Section 2.01 Establishment of the Series of the Notes and Designation. There is hereby authorized and established a Series of
Securities designated as the “5.75% Subordinated Notes due October 1, 2024.” The Securities that are a part of such Series of Securities shall be in the form and have the terms, provisions and conditions as set forth in the Base
Indenture, this First Supplemental Indenture and the Notes in the form attached hereto as Exhibit A. 
 Section 2.02
Maturity. The date upon which the Notes shall become due and payable at final maturity, together with any accrued and unpaid interest then owing, is October 1, 2024 (the “Maturity Date”). 

Section 2.03 Form, Payment and Appointment. Except as provided in the seventh, eighth, ninth, tenth and eleventh paragraphs
of Section 2.08 of the Base Indenture, the Notes will be issued only in book-entry form, will be represented by one or more Global Notes (as defined below) registered in the name of or held by The Depository Trust Company (and any successor
thereto) (“DTC”) or its nominee. Principal or the Redemption Price, if any, of a Note shall be payable to the Person in whose name that Note is registered on the Maturity Date or Redemption Date,

  
 6 

 
as the case may be, provided that principal of, the Redemption Price, if any, of and interest on the Notes represented by one or more Global Notes (as hereinafter defined) registered in the name
of or held by DTC or its nominee will be payable in immediately available funds to DTC or its nominee, as the case may be, as the registered holder of such Global Notes. The principal of any certificated Notes will be payable at the Place of Payment
set forth below; provided, however, that payment of interest may be made at the option of the Company by check mailed to the Person entitled thereto at such address as shall appear in the Security Register or by wire transfer to an account
appropriately designated by the Person entitled to payment. 
 The Notes shall have such other terms as are set forth in the form thereof
attached hereto as Exhibit A. 
 The Security Registrar, Authenticating Agent and Paying Agent for the Notes shall initially be
the Trustee. 
 The Place of Payment for the Notes shall initially be the Corporate Trust Office of the Trustee. 

The Notes will be issuable and may be transferred only in minimum denominations of $1,000 or any amount in excess thereof that is an integral
multiple of $1,000. The amounts payable with respect to the Notes shall be payable in U.S. Dollars. 
 Section 2.04 Global
Note. The Notes shall be issued initially in the form of one or more fully registered global notes (each such global note, a “Global Note”) registered in the name of DTC or its nominee and deposited with DTC or its
designated custodian or such other Depositary as any officer of the Company may from time to time designate. Unless and until a Global Note is exchanged for Notes in certificated form, such Global Note may be transferred, in whole but not in part,
and any payments on the Notes shall be made, only to DTC or a nominee of DTC, or to a successor Depositary selected or approved by the Company or to a nominee of such successor Depositary as provided in the Indenture. 

Section 2.05 Interest. 

(a) Rate of Interest; Accrual 

The Notes shall bear interest on their principal amount at the rate of 5.75% per annum, computed on the basis of a 360-day year consisting
of twelve 30-day months and the actual number of days elapsed in any period of less than one month. 
 (b) Interest
Payment Dates 
 Accrued interest on the Notes shall be payable semi-annually in arrears on April 1 and October 1 of each year,
beginning on April 1, 2015 (each such date, an “Interest Payment Date”), or if any such day is not a Business Day, the next Business Day (but no interest will accrue as a result of that postponement), to the Holders of the
Notes at the close of business on the immediately preceding March 15 and September 15 (whether or not a Business Day), as the case may be. 

Section 2.06 Subordination. 

(a) The Company, for itself, its successors and assigns, covenants and agrees, and each Holder of Notes by the Holder’s
acceptance thereof, likewise covenants and agrees, that the payment of the principal of and interest on each and all of the Notes is and will be expressly subordinated in right of payment to the prior payment in full of all Senior Indebtedness, to
the extent and in the manner described in this Section 2.06 and Section 13.01 of the Base Indenture. 
 (b) In the
event of (i) any insolvency or bankruptcy case or proceeding, or any receivership, liquidation, reorganization or other similar case or proceeding in connection therewith, relative to the Company or to its creditors, as such, or to its assets,
or (ii) any liquidation, dissolution or other winding up of the Company, whether voluntary or involuntary and whether or not involving insolvency or bankruptcy, or (iii) any assignment for the benefit of creditors or any other marshaling
of assets and liabilities of the Company, then and in any such event specified in (i), (ii) or (iii) above (each such event, if any, herein sometimes referred to as a “Proceeding”): 

  
 7 

 (1) the holders of Senior Indebtedness shall first be entitled to receive payment
in full of all Obligations due or to become due on or in respect of all Senior Indebtedness, or provision shall be made for such payment in cash or cash equivalents or otherwise in a manner satisfactory to the holders of Senior Indebtedness, before
the Holders of the Notes are entitled to receive any payment or distribution on account of principal of or premium, if any, or interest on or other Obligations in respect of the Notes or on account of any purchase, redemption or other acquisition of
Notes by the Company or any Subsidiary (individually and collectively, a “Securities Payment”); 
 (2) any
payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities (other than Capital Stock or securities of the Company as reorganized or readjusted, or securities of the Company or any other
corporation provided for by a plan of reorganization or readjustment, the payment of which is subordinate, at least to the extent provided in Article 13 of the Base Indenture with respect to the Notes, to the payment in full, without diminution or
modification by such plan, of all Senior Indebtedness), to which the Holders would be entitled except for the provisions of Article 13 of the Base Indenture and this Section 2.06, shall be paid by the liquidating trustee or agent or other
person making such a payment or distribution, directly to the holders of Senior Indebtedness (or their representative(s) or trustee(s) acting on their behalf), ratably according to the aggregate amounts remaining unpaid on account of the principal
of or interest on and other amounts due on the Senior Indebtedness held or represented by each, to the extent necessary to make payment in full of all Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment or
distribution to the holders of such Senior Indebtedness; and 
 (3) In the event that, notwithstanding the foregoing, the
Trustee or the Holder of any Note shall have received any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities (other than Capital Stock or securities of the Company as reorganized or
readjusted, or securities of the Company or any other corporation provided for by a plan of reorganization or readjustment, the payment of which is subordinate, at least to the extent provided in Article 13 of the Base Indenture with respect to the
Notes, to the payment in full, without diminution or modification by such plan, of Senior Indebtedness), before all Senior Indebtedness is paid in full or payment thereof provided for in cash or cash equivalents or otherwise in a manner satisfactory
to the holders of Senior Indebtedness, such payment or distribution shall be held in trust for the benefit of, and be paid over to, the holders of the Senior Indebtedness remaining unpaid (or their representative(s) or trustee(s) acting on their
behalf), ratably as aforesaid, for application to the payment of such Senior Indebtedness until such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution to the holders of such Senior
Indebtedness. 
 Subject to the payment in full of all Senior Indebtedness, or the provision for such payment in cash or cash
equivalents or otherwise in a manner satisfactory to the holders of Senior Indebtedness, the Holders of the Notes shall be subrogated to the extent of payments or distributions made to the holders of the Senior Indebtedness pursuant to the rights of
such holders to receive payments and distributions of cash, property or securities of the Company applicable to the Senior Indebtedness until the principal of and interest on the Notes shall be paid in full. No such payments or distributions to
holders of such Senior Indebtedness by the Holders of the Notes or to which the Holders of the Notes would be entitled except for the provisions hereof shall, as between the Company, its creditors, other than the holders of Senior Indebtedness, and
the Holders of the Notes, be deemed to be a payment by the Company to or on account of the Senior Indebtedness. It is understood that the provisions of this Section 2.06 are intended solely for the purpose of defining the relative rights of the
Holders of the Notes, on the one hand, and the holders of Senior Indebtedness, on the other hand. Nothing contained in this Section 2.06 or elsewhere in the Base Indenture, this First Supplemental Indenture or any supplemental indenture issued
pursuant to Section 2.03 or Article 8 of the Base Indenture or in the Notes is intended to or shall impair, as between the Company, its creditors, other than the holders of Senior Indebtedness, and the Holders of the Notes, the obligation of
the Company, which is unconditional and absolute, to pay to the Holders of the Notes the principal of and interest on the Notes as and when the same shall become due and payable in accordance with their terms or to affect the relative rights of the
Holders of the Notes and creditors of the 

  
 8 

 
Company, other than the holders of the Senior Indebtedness, nor, except as otherwise expressly provided in the Base Indenture, this First Supplemental Indenture and the Notes with respect to the
limitation on the rights of the Trustee and the Holders of Notes to accelerate the maturity of the Notes and pursue remedies upon such an acceleration, shall anything herein or in the Notes prevent the Trustee or the Holder of any Notes from
exercising all remedies otherwise permitted by applicable law upon any Event of Default under the Indenture occurring, subject to the rights, if any, under this Section 2.06 of the holders of Senior Indebtedness, in respect of cash, property or
securities of the Company received upon the exercise of any such remedy. Upon any payment or distribution of assets of the Company referred to in this Section 2.06, the Trustee and the Holders of the Notes shall be entitled to rely upon any
order or decree of a court of competent jurisdiction in which such Proceeding is pending or upon a certificate of the liquidating trustee or agent or other Person making any distribution to the Trustee or to the Holders of the Notes for the purpose
of ascertaining the Persons entitled to participate in such distribution, the holders of the Senior Indebtedness and other indebtedness of the Company, the amount hereof or payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Section 2.06. In the absence of any such liquidating trustee, agent or other person, the Trustee shall be entitled to rely upon a written notice by a Person representing itself to be a holder of Senior
Indebtedness (or a trustee or representative on behalf of such holder) as evidence that such Person is a holder of Senior Indebtedness (or is such a trustee or representative). If the Trustee determines, in good faith, that further evidence is
required with respect to the right of any Person, as a holder of Senior Indebtedness, to participate in any payment or distribution pursuant to this Section 2.06, the Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, as to the extent to which such Person is entitled to participation in such payment or distribution, and as to other facts pertinent to the rights of such Person
under this Section 2.06, and if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment. 

With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only such of its covenants
and obligations as are specifically set forth in this Section 2.06, and no implied covenants or obligations with respect to the holders of Senior Indebtedness shall be read into this Section 2.06 against the Trustee. The Trustee, however,
shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness by reason of the execution of the Base Indenture, this First Supplemental Indenture, or any other supplemental indenture entered into pursuant to Section 2.03
or Article 8 of the Base Indenture, and shall not be liable to any such holders if it shall mistakenly pay over or distribute to or on behalf of Holders of the Notes or the Company moneys or assets to which any holders of Senior Indebtedness shall
be entitled by virtue of this Section 2.06. 
 (c) No payment on account of principal of or redemption of, interest on
or other amounts due on the Notes, and no redemption, purchase, or other acquisition of the Notes, shall be made by or on behalf of the Company (i) unless full payment of amounts then due for principal and interest and of all other obligations
then due on all Senior Indebtedness has been made or duly provided for pursuant to the terms of the instrument governing such Senior Indebtedness, (ii) if, at the time of such payment, redemption, purchase or other acquisition, or immediately
after giving effect thereto, there shall exist under any Senior Indebtedness, or any agreement pursuant to which any Senior Indebtedness is issued, any default, which default shall not have been cured or waived and which default shall have resulted
in the full amount of such Senior Indebtedness being declared due and payable or (iii) if, at the time of such payment, redemption, purchase or other acquisition, the Trustee shall have received written notice from the holder or holders of any
Senior Indebtedness or their representative or representatives (a “Payment Blockage Notice”) that there exists under such Senior Indebtedness, or any agreement pursuant to which such Senior Indebtedness is issued, any default, which
default shall not have been cured or waived, permitting the holders thereof to declare the full amount of such Senior Indebtedness due and payable, but only for the period (the “Payment Blockage Period”) commencing on the date of receipt
of the Payment Blockage Notice and ending (unless earlier terminated by notice given to the Trustee by the Holders of such Senior Indebtedness) on the earlier of (A) the date on which such event of default shall have been cured or waived or
(B) 180 days from the receipt of the Payment Blockage Notice. Upon termination of a Payment Blockage Period, payments on account of principal of or interest on the Notes and redemptions, purchases or other acquisitions may be made by or on
behalf of the Company. Notwithstanding anything herein to the contrary, (A) only one Payment Blockage Notice may be given during any period of 360 consecutive days with respect to the same event of default and any other events of default on the
same issue of 

  
 9 

 
Senior Indebtedness existing and known to the person giving such notice at the time of such notice and (B) no new Payment Blockage Period may be commenced by the holder or holders of the
same issue of Senior Indebtedness or their representative or representatives during any period of 360 consecutive days unless all events of default which were the object of the immediately preceding Payment Blockage Notice, and any other event of
default on the same issue of Senior Indebtedness existing and known to the person giving such notice at the time of such notice, have been cured or waived. 

In the event that payments are made by or on behalf of the Company in contravention of the provisions of this
Section 2.06(c), such payments shall be held by the Trustee, any Paying Agent or the Holders, as applicable, in trust for the benefit of, and shall be paid over to and delivered to, the holders of Senior Indebtedness or their representative or
the trustee under the indenture or other agreement (if any), pursuant to which any instruments evidencing any Senior Indebtedness may have been issued, as their respective interests may appear, for application to the payment of all Senior
Indebtedness remaining unpaid to the extent necessary to pay all Senior Indebtedness in full in accordance with the terms of such Senior Indebtedness, after giving effect to any concurrent payment or distribution to or for the holders of Senior
Indebtedness. 
 (d) Nothing contained in the Base Indenture, this First Supplemental Indenture, any other supplemental
indenture entered into pursuant to Section 2.03 or Article 8 of the Base Indenture, or in any of the Notes shall: (i) impair, as among the Company, its creditors other than holders of Senior Indebtedness and the Holders of the Notes, the
obligation of the Company, which is absolute and unconditional (and which, subject to the rights of the holders of Senior Indebtedness, is intended to rank equally with all other general obligations of the Company), to pay at any time except as
provided in clauses (b) or (c) of this Section 2.06 to the Holders of the Notes the principal of and premium, if any, and interest on the Securities as and when the same shall become due and payable in accordance with their terms;
(ii) affect the relative rights against the Company of the Holders of the Notes and creditors of the Company other than the holders of Senior Indebtedness; or (iii) except as otherwise expressly provided in the Base Indenture, this First
Supplemental Indenture and the Notes with respect to the limitation on the rights of the Trustee and the Holders of Notes, to accelerate the maturity of the Notes and pursue remedies upon such an acceleration, prevent the Trustee or the Holder of
any Security from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Section 2.06 of the holders of Senior Indebtedness to receive cash, property and
securities otherwise payable or deliverable to the Trustee or such Holder. 
 (e) Each Holder by his acceptance of any Notes
authorizes and expressly directs the Trustee on such Holder’s behalf to take such action as may be necessary or appropriate to effectuate the subordination provided in the Indenture, and appoints the Trustee such Holder’s attorney-in-fact
for such purposes, including, in the event of any dissolution, winding up, liquidation or reorganization of the Company (whether in bankruptcy, insolvency, receivership, reorganization or similar proceedings or otherwise), the filing of a claim for
the unpaid balance of the Notes in the form required in those proceedings. 
 The Company shall give prompt written notice to
the Trustee of any default or event of default with respect to any Senior Indebtedness or of any fact known to the Company that would prohibit the Company from making any payment to or by the Trustee in respect of the Notes pursuant to the
provisions of this Section 2.06 or Article 13 of the Base Indenture. The Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the making of any payment to or by the Trustee in respect of the Notes,
unless and until a Responsible Officer of the Trustee shall have received written notice thereof at its Corporate Trust Office from the Company or a holder of Senior Indebtedness or from any representative or trustee acting on their behalf, together
with proof satisfactory to the Trustee of such holding of Senior Indebtedness or of such authority of such trustee; and, prior to the receipt of any such written notice, the Trustee, subject to the provisions of Article 6 of the Base Indenture,
shall be entitled in all respects to assume that no such facts exist; provided that, if the Trustee shall not have received the notice provided for in this Section 2.06 at least three Business Days prior to the date upon which by the terms
hereof any money may become payable for any purpose (including, without limitation, the payment of the principal of and premium, if any, or interest on any Note), then, anything herein contained to the contrary notwithstanding, the Trustee shall
have full power and authority to receive such money and to apply the same to the purpose for which such money was received and shall not be affected by any notice to the contrary which may be received by it within three Business Days prior to such
date. The foregoing shall not apply if the Paying Agent is the Company. Nothing contained in the Base Indenture or in 

  
 10 

 
any of the Notes shall prevent (a) the Company, at any time except during the pendency of any Proceeding or under the conditions described in this Section 2.06, from making payments at
any time in respect of the Notes, or (b) the application by the Trustee of any money deposited with it hereunder to the payment of or on account of the Notes, or the retention thereof by any Holder, if the Trustee did not have notice, as
provided herein, that such payment would have been prohibited by the provisions of this Section 2.06 or Article 13 of the Base Indenture. The Trustee shall be entitled to rely on the delivery to it of a written notice by a Person representing
himself or itself to be a holder of any Senior Indebtedness (or a representative or trustee on behalf of such holder) to establish that such notice has been given by a holder of such Senior Indebtedness or a trustee on behalf of any such holder. In
the event that the Trustee determines in good faith that any evidence is required with respect to the right of any Person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Section 2.06 or Article
13 of the Base Indenture, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate
in such payment or distribution and any other facts pertinent to the rights of such Person under this Section 2.06 or Article 13 of the Base Indenture and, if such evidence is not furnished to the Trustee, the Trustee may defer any payment to
such Person pending such evidence being furnished to the Trustee or a judicial determination that such Person has the right to receive such payment. 

(f) Notwithstanding the provisions of this Section 2.06 or any other provisions of the Base Indenture, this First
Supplemental Indenture or any other supplemental indenture issued pursuant to Section 2.03 or Article 8 of the Base Indenture, neither the Trustee nor any Paying Agent shall be charged with knowledge of the existence of any Senior Indebtedness
or of any event that would prohibit the making of any payment or moneys to or by the Trustee or such Paying Agent, unless and until the Trustee or such Paying Agent shall have received written notice thereof from the Company or from the holder of
any Senior Indebtedness or from the representative of any such holder. 
 (g) The Trustee in its individual capacity shall be
entitled to all of the rights set forth in this Section 2.06 in respect of any Senior Indebtedness at any time held by it to the same extent as any other holder of such Senior Indebtedness, and nothing in the Base Indenture, this First
Supplemental Indenture or any other supplemental indenture issued pursuant to Section 2.03 or Article 8 of the Base Indenture shall be construed to deprive the Trustee of any of its rights as such holder. 

(h) The failure to make a payment pursuant to the Notes by reason of any provision in this Section 2.06 shall not be
construed as preventing the occurrence of a Default or any Event of Default. 
 (i) Nothing contained in this
Section 2.06 shall apply to the claims of, or payments to, the Trustee under or pursuant to Section 6.06 of the Base Indenture. 

(j) The Notes shall rank senior in right of payment to the Existing Company Junior Subordinated Debt. 

(k) The subordination provisions in this Section 2.06 or Article 13 of the Base Indenture do not apply to amounts due to
the Trustee pursuant to other sections of the Indenture, including Section 6.06 of the Base Indenture. 
 Section 2.07 Events
of Default; Acceleration. All of the Events of Default set forth in clauses (1) through (6) in the definition of “Event of Default” above will apply with respect to the Notes and the Events of Default contained in
Section 5.01 of the Base Indenture will be inapplicable to the Notes. Notwithstanding the foregoing, upon the occurrence of an Event of Default other than an Insolvency Event of Default with respect to a Depository Institution, neither the
Trustee nor the holders of the Notes may accelerate the Maturity of the Notes and make the principal of, and any accrued and unpaid interest on, the Notes, immediately due and payable. If an Insolvency Event of Default with respect to a Depository
Institution occurs and is continuing, then the Holders of not less than 25% in principal amount of the Notes or the Trustee, upon written direction from such Holders, may declare the principal amount of the all of the Notes to be due and payable
immediately pursuant to and in accordance with Section 5.02 of the Base Indenture. Notwithstanding anything to the contrary in the foregoing or the Base Indenture, if an Insolvency Event of Default with respect to the Company occurs and is
continuing, then the principal amount of and interest accrued and unpaid on all of the Notes shall be immediately due and payable without any declaration or other action on the part of the Trustee or any Holder of Notes. 

  
 11 

 Section 2.08 No Sinking Fund. The Notes are not entitled to the benefit of any
sinking fund. 
 Section 2.09 No Conversion or Exchange Rights. The Notes shall not be convertible into or exchangeable for
any equity securities, other securities or other assets of the Company or any Subsidiary. 
 ARTICLE 3 

REDEMPTION OF THE NOTES 

Section 3.01 Redemption. The Company may, at its option, subject to obtaining the prior approval of the Federal Reserve Board
to the extent such approval is then required in order for the Notes to qualify as Tier 2 capital under the rules and guidelines of the Federal Reserve Board, redeem the Notes before the Maturity Date in whole, at any time, or in part from time to
time, upon the occurrence of a Tier 2 Capital Event or a Tax Event or if the Company is required to register as an investment company pursuant to the Investment Company Act of 1940, as amended. Any such redemption will be in cash and at a redemption
price equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date (the “Redemption Date”) fixed by the Company (the “Redemption Price”),
provided that, for avoidance of doubt, the payment of such accrued and unpaid interest paid as a part of the Redemption Price shall satisfy in full the obligation of the Company to pay accrued and unpaid interest on the Notes redeemed from and
including the most recent Interest Payment Date on which all accrued and unpaid interest on the Notes was paid or provided for through, but excluding, the Redemption Date. The provisions of Article 12 of the Base Indenture shall apply to any
redemption of the Notes pursuant to this Article 3; provided that notwithstanding anything to the contrary in the Base Indenture in connection with any redemption of Notes pursuant to this Section 3.01, the Company will provide at least 38
calendar days’ prior notice (or such shorter period of time as may be acceptable to the Trustee) of the Redemption Date to the Trustee. 

ARTICLE 4 
 FORM OF NOTES

 Section 4.01 Form of Notes. The Notes and the Trustee’s Certificate of Authentication thereon are to be
substantially in the form attached as Exhibit A hereto, with such changes therein as the officers of the Company executing the Notes (by manual or facsimile signature) may approve, such approval to be conclusively evidenced by
their execution thereof. 
 ARTICLE 5 

ISSUE OF NOTES 

Section 5.01 Original Issue of Notes. Notes having an aggregate principal amount of $75,000,000 may from time to time, upon
execution of this First Supplemental Indenture, be executed by the Company and delivered to the Trustee for authentication, and upon Issuer Order the Trustee shall thereupon authenticate and deliver said Notes in accordance with a Issuer Order
pursuant to Section 303 of the Base Indenture without any further action by the Company (other than as required by the Base Indenture). 

Section 5.02 Additional Issues of Notes. The Company may from time to time, without notice to or the consent of the holders of the
Notes, issue additional Notes, which Notes will rank pari passu with the Notes and be identical in all respects as the Notes previously issued except for their issuance date, the offering price, the payment of interest accruing
prior to the issue date of such additional Notes and the first payment of interest following the issue date of such additional Notes in order that such additional Notes may be consolidated and form a single Series with the Notes outstanding
immediately prior to the issuance of such additional Notes and have the same terms as to status, redemption or otherwise as the Notes. Such additional Notes may have the same or different CUSIP numbers that the Notes issued on the date hereof or no
CUSIP number, as the case may be. 

  
 12 

 ARTICLE 6 

IMMUNITY OF SHAREHOLDERS, EMPLOYEES, AGENTS, OFFICERS AND DIRECTORS 

Section 6.01 Indenture and Notes Solely Corporate Obligations. No recourse for the payment of the principal of or interest on
any Note, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, shareholder, officer, director, employee or agent, as such, past, present or future, of the Company or of any successor Person to the
Company, it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this First Supplemental Indenture and the issue of the Notes. 

ARTICLE 7 
 MISCELLANEOUS

 Section 7.01 Ratification of Base Indenture. The Base Indenture, as supplemented by this First Supplemental
Indenture, is in all respects ratified and confirmed, and this First Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein provided. 

Section 7.02 Trustee Not Responsible for Recitals. The recitals contained herein and in the Notes, except the Trustee’s
certificates of authentication, shall be taken as statements of the Company and not those of the Trustee, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representations as to the validity or sufficiency
of this First Supplemental Indenture or of the Notes except that the Trustee represents that it is duly authorized to execute and deliver this First Supplemental Indenture, authenticate the Notes and perform its obligations hereunder. The Trustee
shall not be accountable for the use or application by the Company of the Notes or of the proceeds thereof. 
 Section 7.03 New York
Law To Govern. THIS FIRST SUPPLEMENTAL INDENTURE AND EACH NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

Section 7.04 Separability. In case any provision in this First Supplemental Indenture or in the Notes shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired by such invalid, illegal or unenforceable provision. 

Section 7.05 Counterparts. This First Supplemental Indenture may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but such counterparts shall together constitute but one and the same instrument. The exchange of copies of this First Supplemental Indenture and of signature pages by facsimile or electronic format (i.e.,
“.pdf” or “.tif”) transmission shall constitute effective execution and delivery of this First Supplemental Indenture as to the parties hereto and may be used in lieu of the original First Supplemental Indenture for all purposes.
Signatures of the parties hereto transmitted by facsimile or electronic format (i.e., “.pdf” or “.tif”) shall be deemed to be their original signatures for all purposes. 

Section 7.06 Benefits of First Supplemental Indenture. Nothing in this First Supplemental Indenture or in the Notes, express
or implied, shall give to any Person, other than the parties to this First Supplemental Indenture and their successors under this First Supplemental Indenture and the Persons in whose names the Notes are registered on the Security Register from time
to time, any benefit or any legal or equitable right, remedy or claim under this First Supplemental Indenture. 
 Section 7.07
Conflict with Base Indenture. If any provision of this First Supplemental Indenture relating to the Notes is inconsistent with any provision of the Base Indenture, such provision of this First Supplemental Indenture shall control. 

Section 7.08 Provisions of Trust Indenture Act Controlling. This First Supplemental Indenture is subject to the provisions of
the Trust Indenture Act that are required to be part of the Indenture and shall, to the extent applicable, be governed by such provisions. If any provision of this First Supplemental Indenture limits, qualifies, or

  
 13 

 
conflicts with a provision of the Trust Indenture Act that is required under the Trust Indenture Act to be a part of and govern this First Supplemental Indenture, the provision of the Trust
Indenture Act shall control. 
 [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK.] 

  
 14 

 IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly
executed as of the day and year first written above. 
  

			
	UNITED FINANCIAL BANCORP, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  

	Name:	 	
	Title:	 	

 [Signature Page to First Supplemental Indenture] 

  
 15 

 EXHIBIT A 

[Note: The following legend is to be placed at the beginning of any Global Note representing Notes.] 

GLOBAL NOTE 
 THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO IN THIS SECURITY AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR ITS NOMINEE. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY
PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE OR A SUCCESSOR OF SUCH DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY SECURITY AUTHENTICATED AND
DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES. 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
 THIS SECURITY AND THE OBLIGATIONS OF THE COMPANY (AS DEFINED HEREIN) AS EVIDENCED HEREBY (1) ARE NOT
DEPOSITS WITH OR HELD BY THE COMPANY OR ANY DEPOSITORY INSTITUTION OF THE COMPANY AND ARE NOT INSURED OR GUARANTEED BY ANY FEDERAL AGENCY OR INSTRUMENTALITY, INCLUDING, WITHOUT LIMITATION, THE FEDERAL DEPOSIT INSURANCE CORPORATION AND (2) ARE
SUBORDINATE IN THE RIGHT OF PAYMENT TO THE SENIOR INDEBTEDNESS (AS DEFINED IN THE SUBORDINATED DEBT INDENTURE IDENTIFIED HEREIN). 

  
 16 

 UNITED FINANCIAL BANCORP, INC. 

5.75% SUBORDINATED NOTES DUE OCTOBER 1, 2024 
  

					
	No.                    	 		 	CUSIP: 910304 AA2
		 		 	ISIN: US910304AA27

 $                     

 United Financial Bancorp, Inc., a Connecticut corporation (hereinafter called the “Company”, which term includes any
successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to                     , or registered
assigns, the principal sum of $             DOLLARS (or such other amount as set forth in the Schedule of Increases or Decreases in Note attached hereto) on October 1, 2024 (such
date is hereinafter referred to as the “Maturity Date”). 
 The Company further promises to pay interest on said principal
sum from and including September 23, 2014 to, but excluding, October 1, 2024 or any earlier Redemption Date, at the annual rate of 5.75% (computed on the basis of a 360-day year consisting of twelve 30-day months and the actual number of
days elapsed in any period of less than one month) semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2015 (each, an “Interest Payment Date”). In the event that any interest payment
date falls on a day that is not a Business Day, the interest payment due on that date will be postponed to the next day that is a Business Day, and no interest will accrue as a result of that postponement. 

The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, as provided in said Indenture, will be paid
to the Person in whose name this Note (or one or more Predecessor Securities) are registered at the close of business on the Regular Record Date for such interest, which shall be March 15 and September 15 (whether or not a Business Day),
as the case may be, immediately preceding such Interest Payment Date. 
 Payment of the principal of and interest on this Note will be made
at the office or agency of the Company, which shall initially be the office of the Trustee specified on the reverse hereof, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and
private debts; provided, however, that payment of interest may be made at the option of the Company by check mailed to the Person entitled thereto at such address as shall appear in the Security Register or by wire transfer
to an account appropriately designated by the Person entitled to payment. 
 Reference is hereby made to the further provisions of this Note
set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual or facsimile
signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 [Signature Page
Follows] 

  
 17 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

Dated: 
  

			
	UNITED FINANCIAL BANCORP, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

		 	

  
 18 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the Series designated therein referred to in the within-mentioned Indenture. 

 

			
	Dated:
	
	WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  

		 	Authorized Signatory

  
 19 

 REVERSE OF NOTE 

UNITED FINANCIAL BANCORP, INC. 

5.75% SUBORDINATED NOTES DUE OCTOBER 1, 2024 

This Note is one of a duly authorized issue of Securities of the Company of a Series designated as the “5.75% Subordinated Notes due
October 1, 2024” (herein called the “Notes”) initially issued in an aggregate principal amount of $75,000,000 on September 23, 2014. Such Series of Securities has been established pursuant to, and is one of an
indefinite number of Series of subordinated debt securities of the Company issued or issuable under and pursuant to, the Subordinated Debt Indenture (the “Base Indenture”), dated as of September 23, 2014, between the Company
and Wilmington Trust, Bank National Association, as Trustee (herein called the “Trustee,” which term includes any successor trustee), as supplemented and amended by the First Supplemental Indenture between the Company and the
Trustee, dated as of September 23, 2014, thereto (the “First Supplemental Indenture” and the Base Indenture as supplemented and amended by the First Supplemental Indenture the “Indenture”), to which Indenture
and any other indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Persons in whose names Notes are registered
on the Security Register from time to time and of the terms upon which the Notes are, and are to be, authenticated and delivered. The terms, conditions and provisions of the Notes are those stated in the Indenture, those made part of the Indenture
by reference or pursuant to the Trust Indenture Act of 1939, as amended, and those set forth in this Note. All capitalized terms used in this Note and not defined herein that are defined in the Base Indenture or the First Supplemental Indenture
shall have the meanings assigned to them in the Base Indenture or the First Supplemental Indenture. If any capitalized term used in this Note and defined herein is also defined in the Base Indenture or the First Supplemental Indenture, in the event
of any conflict in the meanings ascribed to such capitalized term, the definition of the capitalized term in this Note shall control. If there is any conflict between the terms of the Indenture and this Note, the terms of the Indenture shall govern.

 The indebtedness of the Company evidenced by the Notes, including the principal thereof and interest thereon, is, to the extent and in
the manner set forth in the First Supplemental Indenture, subordinate and junior in right of payment to obligations of the Company constituting the Senior Indebtedness (as defined in the Indenture) on the terms and subject to the terms and
conditions as provided and set forth in Section 2.06 of the First Supplemental Indenture and shall rank pari passu in right of payment with all other Notes and with all other unsecured subordinated indebtedness of the Company issued
under the Indenture and not by its terms subordinate and junior in right of payment to the promissory notes, bonds, debentures or other evidences of indebtedness of types that include the Notes. Each Holder of this Security, by the acceptance
hereof, agrees to and shall be bound by such provisions of the Indenture and authorizes and directs the Trustee on his behalf to take such actions as may be necessary or appropriate to effectuate the subordination so provided. 

The Notes are intended to be treated as Tier 2 capital. If an Event of Default with respect the Company shall occur and be continuing, the
principal and interest owed on the Notes shall only become due and payable in accordance with the terms and conditions set forth in Article Five of the Base Indenture and Section 2.07 of the First Supplemental Indenture. Accordingly, the
holder of this Note has no right to accelerate the maturity of this Note in the event the Company fails to pay interest on any of the Notes, fails to perform any other obligations under the Notes or in the Indenture that are applicable to the Notes.
 
 The Company may, at its option, subject to obtaining the prior approval of the Federal Reserve Board to the extent such approval is
then required in order for the Notes to qualify as Tier 2 capital under the rules and guidelines of the Federal Reserve Board, redeem the Notes before the Maturity Date in whole or in part upon the occurrence of a Tier 2 Capital Event or a Tax Event
or if the Company is required to register as an investment company pursuant to the Investment Company Act of 1940, as amended. 
 The Notes
of this Series are not entitled to the benefit of any sinking fund. The Notes are not convertible into or exchangeable for any of the equity securities, other securities or assets of the Company or any Subsidiary. 

  
 20 

 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the holders of the Notes at any time by the Company and the Trustee with the consent of the holders of a majority in principal amount of the Notes affected thereby and at
the time Outstanding. The Indenture also contains provisions permitting the holders of not less than a majority in principal amount of the Notes of a Series at the time Outstanding, on behalf of the holders of all Notes of such Series, to waive
certain past defaults under the Indenture and their consequences. Any such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all future holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security
Register, upon surrender of this Note for registration of transfer at the office or agency of the Company in any place where the principal of and interest on this Note are payable, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Company and the Security Registrar duly executed by the holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this Series, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees. 
 The Notes of this Series are issuable only in registered
form without coupons in minimum denominations of $1,000 and any integral multiple of $1,000 in excess of $1,000. 
 The Company and the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note is overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest (if any) on this Note at the times, place and rate, and in the coin or currency, herein prescribed. 

[Note: The provisions below that appear in brackets will be inserted into any Global Note representing Notes.] [This Security is a global
note, represented by one or more permanent global certificates registered in the name of the nominee of The Depository Trust Company (each a “Global Note” and collectively, the “Global Notes”). Accordingly, unless and until it is
exchanged in whole or in part for individual certificates evidencing the Notes represented hereby, this Security may not be transferred except as a whole by The Depository Trust Company (the “Depositary”) to a nominee of such Depositary or
by a nominee of such Depositary or by the Depositary or any nominee to a successor Depositary or any nominee of such successor. Ownership of beneficial interests in this Security will be shown on, and the transfer of that ownership will be effected
only through, records maintained by the applicable Depositary or its nominee (with respect to interest of persons that have accounts with the Depositary (“Participants”) and the records of Participants (with respect to interests of persons
other than Participants)). Beneficial interests in Notes owned by persons that hold through Participants will be evidenced only by, and transfers of such beneficial interests with such Participants will be effected only through, records maintained
by such Participants. Except as provided below, owners of beneficial interests in this Security will not be entitled to have any individual certificates and will not be considered the owners or Holders thereof under the Indenture. 

Except in the limited circumstances set forth in Section 305 of the Base Indenture, Participants and owners of beneficial interests in
the Global Notes will not be entitled to receive Securities in definitive form and will not be considered Holders of Notes. Neither the Company nor the principal Paying Agent will be liable for any delay by the Depositary, its nominee or any direct
or indirect participant in identifying the beneficial owners of the related Notes. The Company and the principal payment agent may conclusively rely on, and will be protected in relying on, instructions from the Depositary or its nominee for all
purposes, including with respect to the registration and delivery, and the respective principal amounts, of the Notes to be issued. 

Except as provided in Section 305 of the Base Indenture, beneficial owners of Global Notes will not be entitled to receive physical
delivery of Notes in definitive form and no Global Note will be exchangeable except for another Global Note of like denomination and tenor to be registered in the name of the Depositary or its nominee. Accordingly, each person owning a beneficial
interest in a Global Note must rely on the procedures of the Depositary and, if such person is not a Participant, on the procedures of the Participant through which such person owns its interest, to exercise any rights of a Holder under the Notes.

  
 21 

 The laws of some jurisdictions may require that purchasers of securities take physical
delivery of those securities in definitive form. Accordingly, the ability to transfer interests in the Notes represented by a Global Note to those persons may be limited. In addition, because the Depositary can act only on behalf of its
Participants, who in turn act on behalf of persons who hold interests through Participants, the ability of a person having an interest in Notes represented by a Global Note to pledge or transfer such interest to persons or entities that do not
participate in the Depositary’s system, or otherwise to take actions in respect of such interest, may be affected by the lack of a physical definitive security in respect of such interest. None of the Company, the Trustee, the Paying Agent and
the Security Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of Notes by the Depositary, or for maintaining, supervising or reviewing any records of the Depositary relating to
the Notes.] 
 Wilmington Trust, National Association will act as the Company’s principal Paying Agent with respect to the Notes
through its offices presently located at Rodney Square North, 1100 North Market Street, Wilmington, Delaware, 19890. The Company may at any time rescind the designation of a Paying Agent, appoint a successor Paying Agent, or approve a change in the
office through which any Paying Agent acts. 
 Notices to the Holders of registered Notes will be mailed to such Holders at their respective
addresses in the Security Register will be deemed to have been given on the fourth weekday (being a day other than Saturday or Sunday) after the date of mailing. The Indenture contains provisions setting forth certain conditions to the institution
of proceedings by the Holders of Notes with respect to the Indenture or for any remedy under the Indenture. 
 THIS NOTE SHALL BE DEEMED TO
BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SAID STATE. 

  
 22 

 ASSIGNMENT FORM 

To assign the within Security, fill in the form below: 
 I or we
assign and transfer the within Security to: 
  
  

(Insert assignee’s legal name) 
  

 
 (Insert assignee’s social security
or tax I.D. no.) 
  
  

 
  

(Print or type assignee’s name, address and zip code) 

and irrevocably appoint as agent to transfer this Security on the books of United Financial Bancorp, Inc. The agent may substitute another to act for it. 

Your Signature:                     

                          
                       

                          
   
 (Sign exactly as your name appears on the 

    other side of this Security) 

Your Name:                     

                          
                 

                          
       

Date:                        
       

                          
               

Signature Guarantee: *                   
   

                          
                 
  

	*	NOTICE: The Signature must be guaranteed by an Institution which is a member of one of the following recognized signature Guarantee Programs: (i) The Securities Transfer Agent Medallion Program (STAMP);
(ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP); or (iv) such other guarantee program acceptable to the Trustee. 

  
 23 

 SIGNATURE GUARANTEE 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Security registrar, which
requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

  
 24 

 SCHEDULE OF INCREASES OR DECREASES IN NOTE 

The initial principal amount of this Note is $75,000,000. The following increases or decreases in the principal amount of this Note have been made: 

 

									
	 Date
	 	 Amount of

decrease in
 principal

amount of this

Note
	 	 Amount of

decrease in
 principal

amount of this

Note
	 	 Principal

amount of this
 Note
following
 such decrease
 or
increase
	 	 Signature of

authorized
 signatory of

Trustee

		 		 		 		 	
		 		 		 		 	
		 		 		 		 	
		 		 		 		 	

  
 25Terms and Separation and Consultancy Agreement, dated September 17, 2014, between Acucela Inc. and David L. Lowrance

September 17, 2014

Dave Lowrance
P.O. Box 706
Seattle, WA 98111

Re:     Terms of Separation and Consultancy
Dear Dave:
This letter confirms the agreement (this “Agreement”) between you and Acucela, Inc. (the “Company”) concerning the terms of your resignation, and offers you the separation benefits set forth below in exchange for a general release of claims and covenant not to sue.  
1.Resignation Date:  September 19, 2014 is your last day of employment with the Company (the “Resignation Date”).
2.Acknowledgment of Payment of Wages:  By your signature below, you acknowledge that on the first regularly scheduled payroll date following the Resignation Date, we will provide you a final paycheck for all wages, salary, bonuses, commissions, reimbursable expenses, accrued vacation and any similar payments due you from the Company as of the Resignation Date.  By signing below, you acknowledge that the Company does not owe you any other amounts. 
3.Separation Benefits:  In exchange for your agreement to the general release and waiver of claims and covenant not to sue set forth below and your other promises herein, the Company agrees to provide you, after the Effective Date (as defined below) of this Agreement, with the following:
a.Severance:  The Company shall provide you with a lump sum severance payment in the amount of $13,049.00, less applicable federal and state payroll withholdings, which shall be paid on the first payroll date following the Effective Date of this Agreement.
b.Consultancy:  Pursuant to the terms of the consulting agreement attached hereto as Exhibit A (the “Consulting Agreement”), the Company agrees to engage you as a consultant (such engagement, the “Consultancy”).  
By signing below, you acknowledge that you are receiving the separation benefits outlined in this section in consideration for waiving your rights to claims referred to in this Agreement and that you would not otherwise be entitled to the separation benefits.  
4.Confidential Information:  You hereby acknowledge that you are bound by the Nondisclosure, Invention Assignment, Noncompetition and Nonsolicitation Agreement (the 

Dave Lowrance
September 17, 2014
Page 2

“Confidentiality Agreement,” attached hereto as Exhibit B), and that as a result of your employment with the Company you have had access to the Company’s Proprietary Information (as defined in the Confidentiality Agreement), that you will hold all Proprietary Information in strictest confidence and that you will not make use of such Proprietary Information on behalf of anyone other than in furtherance of your duties pursuant to the Consultancy.  

5.General Release and Waiver of Claims:  
a.    The payments and promises set forth in this Agreement are in full satisfaction of all accrued salary, vacation pay, bonus and commission pay, profit sharing, stock options, termination benefits or other compensation to which you may be entitled by virtue of your employment with the Company or your resignation from the Company.  To the fullest extent permitted by law, you hereby release and waive any other claims you may have against the Company, and their respective owners, agents, officers, shareholders, employees, directors, attorneys, subscribers, subsidiaries, affiliates, successors and assigns (collectively “Releasees”), whether known or not known, including, without limitation, claims arising under or related to your employment relationship with the Company and the termination of that relationship, claims arising from or related to your offer of employment dated March 18, 2011 (the “Offer Letter”), claims under any employment laws, including, but not limited to, claims of unlawful discharge, breach of contract, breach of the covenant of good faith and fair dealing, fraud, violation of public policy, defamation, physical injury, emotional distress, claims for additional compensation, stock or other forms of equity or other benefits arising out of your employment or your resignation from employment, claims under Title VII of the 1964 Civil Rights Act, as amended, the Washington Law Against Discrimination and any other laws and/or regulations relating to employment or employment discrimination, including, without limitation, claims based on age or under the Age Discrimination in Employment Act or Older Workers Benefit Protection Act, and/or claims based on disability or under the Americans with Disabilities Act. 
b.    You hereby acknowledge that you are aware of the principle that a general release does not extend to claims that the releasor does not know or suspect to exist in his or her favor at the time of executing the release, which, if known by him or her, must have materially affected his or her settlement with the releasee.  With knowledge of this principle, you hereby agree to expressly waive any rights you may have to that effect. 
c.    You and the Company do not intend to release claims that you may not release as a matter of law, including but not limited to claims for indemnity, and any claims for enforcement of this Agreement.  To the fullest extent permitted by law, any dispute regarding the scope of this general release shall be determined by an arbitrator under the procedures set forth in the arbitration clause below.
6.Covenant Not to Sue:  
a.    To the fullest extent permitted by law, at no time subsequent to the execution of this Agreement will you pursue, or cause or knowingly permit the prosecution of, in any state, federal or foreign court, or before any local, state, federal or foreign administrative agency, or any 

2

Dave Lowrance
September 17, 2014
Page 3

other tribunal, any charge, claim or action of any kind, nature and character whatsoever, known or unknown, which you may now have, have ever had, or may in the future have against Releasees, which is based in whole or in part on any matter covered by this Agreement.  
b.    Nothing in this section shall prohibit you from filing a charge or complaint with a government agency where, as a matter of law, the parties may not restrict your ability to file such administrative complaints.  However, you understand and agree that, by entering into this Agreement, you are releasing any and all individual claims for relief, and that any and all subsequent disputes between you and the Company shall be resolved through arbitration as provided below.
c.    Nothing in this section shall prohibit or impair you or the Company from complying with all applicable laws, nor shall this Agreement be construed to obligate either party to commit (or aid or abet in the commission of) any unlawful act.
7.Stock Option:  Pursuant to the terms of the Stock Option Grants dated May 17, 2011 and May 24, 2012 and the Company’s 2002 Stock Option and Restricted Stock Plan (collectively, the “Stock Option Agreement”), you were granted Options to purchase 135,400 shares of the Company’s Common Stock (the “Option”).  On August 18, 2014, you exercised the Option as to 40,500 vested shares pursuant to the terms of your Notice of Exercise of Stock Option dated August 18, 2014.  As of the Resignation Date, the Option has vested as to 27,160 shares (the “Vested Shares”), and 67,740 of the shares subject to the Option remain unvested (the “Unvested Shares”).  Because your employment is terminating on the Resignation Date, none of the Unvested Shares can ever vest.  Pursuant to the Plan, you will have three (3) months after the Resignation Date to exercise the Vested Shares.  
8.Mutual Nondisparagement:  
a.    Employee Obligations:  Employee agrees that Employee will not disparage Releasees or their products, services, agents, representatives, directors, officers, shareholders, attorneys, employees, vendors, affiliates, consultants, contractors, successors or assigns, or any person acting by, through, under or in concert with any of them, with any written or oral statement.  Nothing in this paragraph shall prohibit Employee from providing truthful information in response to a subpoena or other legal process.
b.    Company Obligations:  The Company agrees to instruct its officers and directors not to disparage Employee with any written or oral statement.  So long as Employee refers prospective employers to Company’s Human Resources Department, Human Resources will follow Company policy and only confirm Employee’s dates of employment and last job title held. Nothing in this paragraph shall prohibit Company from providing truthful information in response to a subpoena or other legal process.
9.Arbitration:  Except for any claim for injunctive relief arising out of a breach of a party’s obligations to protect the other’s proprietary information, the parties agree to arbitrate, in Snohomish County, Washington through JAMS, any and all disputes or claims arising out of or related to the validity, enforceability, interpretation, performance or breach of this Agreement, whether sounding in tort, contract, statutory violation or otherwise, or involving the construction 

3

Dave Lowrance
September 17, 2014
Page 4

or application or any of the terms, provisions, or conditions of this Agreement.  Any arbitration may be initiated by a written demand to the other party.  The arbitrator’s decision shall be final, binding, and conclusive.  The parties further agree that this Agreement is intended to be strictly construed to provide for arbitration as the sole and exclusive means for resolution of all disputes hereunder to the fullest extent permitted by law.  The parties expressly waive any entitlement to have such controversies decided by a court or a jury.
10.Attorneys’ Fees:  If any action is brought to enforce the terms of this Agreement, the prevailing party will be entitled to recover its reasonable attorneys’ fees, costs and expenses from the other party, in addition to any other relief to which the prevailing party may be entitled.
11.Confidentiality:  The contents, terms and conditions of this Agreement must be kept confidential by you and may not be disclosed except to your immediate family, accountant or attorneys or pursuant to subpoena or court order.  You agree that if you are asked for information concerning this Agreement, you will state only that you and the Company reached an amicable resolution of any disputes concerning your resignation from the Company.  Any breach of this confidentiality provision shall be deemed a material breach of this Agreement.
12.No Admission of Liability:  This Agreement is not and shall not be construed or contended by you to be an admission or evidence of any wrongdoing or liability on the part of Releasees, their representatives, heirs, executors, attorneys, agents, partners, officers, shareholders, directors, employees, subsidiaries, affiliates, divisions, successors or assigns.  This Agreement shall be afforded the maximum protection allowable under Rule 408 of the Washington Rules of Evidence and/or any other state or federal provisions of similar effect.
13.Complete and Voluntary Agreement:  This Agreement, together with Exhibits A and B and the Stock Option Agreement, constitute the entire agreement between you and Releasees with respect to the subject matter hereof and supersedes all prior negotiations and agreements, whether written or oral, relating to such subject matter, including but not limited to the Offer Letter.  You acknowledge that neither Releasees nor their agents or attorneys have made any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this Agreement for the purpose of inducing you to execute this Agreement, and you acknowledge that you have executed this Agreement in reliance only upon such promises, representations and warranties as are contained herein, and that you are executing this Agreement voluntarily, free of any duress or coercion.
14.Severability:  The provisions of this Agreement are severable, and if any part of it is found to be invalid or unenforceable, the other parts shall remain fully valid and enforceable.  Specifically, should a court, arbitrator, or government agency conclude that a particular claim may not be released as a matter of law, it is the intention of the parties that the general release, the waiver of unknown claims and the covenant not to sue above shall otherwise remain effective to release any and all other claims.
15.Modification; Counterparts; Facsimile/PDF Signatures:  It is expressly agreed that this Agreement may not be altered, amended, modified, or otherwise changed in any respect except by another written agreement that specifically refers to this Agreement, executed by authorized 

4

Dave Lowrance
September 17, 2014
Page 5

representatives of each of the parties to this Agreement.  This Agreement may be executed in any number of counterparts, each of which shall constitute an original and all of which together shall constitute one and the same instrument.  Execution of a facsimile or PDF copy shall have the same force and effect as execution of an original.
16.Review of Separation Agreement; Expiration of Offer:  You understand that you may take up to twenty-one (21) days to consider this Agreement and, by signing below, affirm that you were advised to consult with an attorney prior to signing this Agreement.  You also understand you may revoke this Agreement within seven (7) days of signing this document and that the benefits to be provided to you pursuant to Section 3 will be provided only at the end of that seven (7) day revocation period.  This offer shall expire at the conclusion of the twenty-one (21) day review period set forth herein.
17.Effective Date:  Provided you sign this Agreement on or after your Resignation Date, this Agreement is effective on the eighth (8th) day after you sign it and without revocation by you (the “Effective Date”).
18.Governing Law:  This Agreement shall be governed by and construed in accordance with the laws of the State of Washington.
If you agree to abide by the terms outlined in this letter, please sign this letter below no earlier than the Resignation Date and also sign the attached copy and return it to me.   
Sincerely,
Acucela, Inc.

By: /s/Brian O'Callaghan    
Brian O’Callaghan            President & COO
                                

READ, UNDERSTOOD AND AGREED:
/s/Dave Lowrance        Date: September 16, 2014    
Dave Lowrance

5

EXHIBIT A
CONSULTING AGREEMENT
This Consulting Agreement (“Agreement”) is entered into as of September 20, 2014 (the “Effective Date”), between  Acucela, Inc. (“Company”), and Dave Lowrance (“Consultant”).
Company and Consultant desire to have Consultant perform services for Company, subject to and in accordance with the terms and conditions of this Agreement.
THEREFORE, the parties agree as follows:
1.SERVICES
1.1    Statement of Work.  Upon the Effective Date of this Consulting Agreement, the Company and Consultant will execute a statement of work, substantially in the form attached hereto as Exhibit A, that describe the specific services to be performed by Consultant (as executed, a “Statement of Work”).  The Statement of Work will expressly refer to this Agreement, will form a part of this Agreement, and will be subject to the terms and conditions contained herein.  The Statement of Work may be amended only by written agreement of the parties.
1.2    Performance of Services.  Consultant agrees to perform services with respect to such matters and projects as are mutually agreed from time to time by and between Consultant and Company, and to perform the services described in Exhibit A hereto (collectively, the “Services”).  To the extent any terms set forth in the Exhibit conflict with the terms set forth in this Agreement, the terms of this Agreement shall control unless otherwise expressly agreed by the parties in such Exhibit.  
2.    PAYMENT
2.1    Fees and Expenses.  As Consultant’s sole compensation for the performance of Services, Company will pay Consultant the fees specified in the Statement of Work in accordance with the terms set forth therein, or if applicable, pursuant to Section 8.3 below.  Unless otherwise provided in the Statement of Work, Company will also reimburse Consultant for all reasonable and customary out-of-pocket travel, lodging and related expenses incurred by Consultant in connection with Consultant’s performance of Services.  At Company’s request, Consultant will furnish Company with copies of receipts and other customary documentation for any expenses for which Consultant requests reimbursement hereunder.
2.2    Payment Terms.  All fees and other amounts set forth in the Statement of Work, if any, are stated in and are payable in U.S. dollars.  Unless otherwise provided in a Statement of Work, Consultant will invoice Company on a monthly basis for all fees and expenses payable to Consultant.  Company will pay the full amount of each such invoice within thirty (30) days following receipt thereof.
3.    RELATIONSHIP OF THE PARTIES
3.1    Independent Contractor.  Consultant is an independent contractor and nothing in this Agreement will be construed as establishing an employment or agency relationship between Company and Consultant.  Consultant has no authority to bind Company by contract or otherwise.  Consultant will perform Services under the general direction of Company, but Consultant will determine, in Consultant’s sole discretion, 

the manner and means by which Services are accomplished, subject to the requirement that Consultant will at all times comply with applicable law.
3.2    Taxes and Employee Benefits.  Consultant will report to all applicable government agencies as income all compensation received by Consultant pursuant to this Agreement.  Consultant will be solely responsible for payment of all withholding taxes, social security, workers’ compensation, unemployment and disability insurance or similar items required by any government agency.  Consultant will not be entitled to any benefits paid or made available by Company to its employees, including, without limitation, any vacation or illness payments, or to participate in any plans, arrangements or distributions made by Company pertaining to any bonus, stock option, profit sharing, insurance or similar benefits.  Consultant will indemnify and hold Company harmless from and against all damages, liabilities, losses, penalties, fines, expenses and costs (including reasonable fees and expenses of attorneys and other professionals) arising out of or relating to any obligation imposed by law on Company to pay any withholding taxes, social security, unemployment or disability insurance or similar items in connection with compensation received by Consultant pursuant to this Agreement.
3.3    Liability Insurance.  Consultant acknowledges that Company will not carry any liability insurance on behalf of Consultant.  Consultant will maintain in force adequate liability insurance to protect Consultant from claims of personal injury (or death) or tangible or intangible property damage (including loss of use) that arise out of any act or omission of Consultant.
4.    OWNERSHIP
4.1    Disclosure of Work Product.  Consultant will, as an integral part of its performance of Services, disclose in writing to Company all inventions, products, designs, drawings, notes, documents, information, documentation, improvements, works of authorship, processes, techniques, know-how, algorithms, specifications, hardware, circuits, computer programs, databases, user interfaces, encoding techniques, and other materials of any kind that Consultant may make, conceive, develop or reduce to practice, alone or jointly with others, in connection with performing Services, or that result from or that are related to such Services, whether or not they are eligible for patent, copyright, mask work, trade secret, trademark or other legal protection (collectively, “Consultant Work Product”).  
4.2    Ownership of Consultant Work Product.  Consultant and Company agree that, to the fullest extent permitted by applicable law, each item of Consultant Work Product will be a work made for hire owned exclusively by Company.  Consultant agrees that, regardless of whether an item of Consultant Work Product is a work made for hire, all Consultant Work Product will be the sole and exclusive property of Company.  Consultant hereby irrevocably transfers and assigns to Company, and agrees to irrevocably transfer and assign to Company, all right, title and interest in and to the Consultant Work Product, including all worldwide patent rights (including patent applications and disclosures), copyright rights, mask work rights, trade secret rights, know-how, and any and all other intellectual property or proprietary rights (collectively, “Intellectual Property Rights”) therein.  At Company’s request and expense, during and after the term of this Agreement, Consultant will assist and cooperate with Company in all respects, and will execute documents, and will take such further acts reasonably requested by Company to enable Company to acquire, transfer, maintain, perfect and enforce its Intellectual Property Rights and other legal protections for the Consultant Work Product.  Consultant hereby appoints the officers of Company as Consultant’s attorney-in-fact to execute documents on behalf of Consultant for this limited purpose.

2

4.3    Moral Rights.  To the fullest extent permitted by applicable law, Consultant also hereby irrevocably transfers and assigns to Company, and agrees to irrevocably transfer and assign to Company, and waives and agrees never to assert, any and all Moral Rights (as defined below) that Consultant may have in or with respect to any Consultant Work Product, during and after the term of this Agreement.  “Moral Rights” mean any rights to claim authorship of a work, to object to or prevent the modification or destruction of a work, to withdraw from circulation or control the publication or distribution of a work, and any similar right, existing under judicial or statutory law of any country in the world, or under any treaty, regardless of whether or not such right as called or generally referred to as a “moral right.”
4.4    Related Rights.  To the extent that Consultant owns or controls (presently or in the future) any patent rights, copyright rights, mask work rights, trade secret rights, or any other intellectual property or proprietary rights that may block or interfere with, or may otherwise be required for, the exercise by Company of the rights assigned to Company under this Agreement (collectively, “Related Rights”), Consultant hereby grants or will cause to be granted to Company a non-exclusive, royalty- free, irrevocable, perpetual, transferable, worldwide license (with the right to sublicense) to make, have made, use, offer to sell, sell, import, copy, modify, create derivative works based upon, distribute, sublicense, display, perform and transmit any products, software, hardware, methods or materials of any kind that are covered by such Related Rights, to the extent necessary to enable Company to exercise all of the rights assigned to Company under this Agreement.
5.    CONFIDENTIAL INFORMATION
For purposes of this Agreement, “Confidential Information” means and will include: (i) any information, materials or knowledge regarding Company and its business, financial condition, products, programming techniques, customers, suppliers, technology or research and development that is disclosed to Consultant or to which Consultant has access in connection with performing Services; (ii) the Consultant Work Product; and (iii) the terms and conditions of this Agreement.  Confidential Information will not include any information that: (a) is or becomes part of the public domain through no fault of Consultant; (b) was rightfully in Consultant’s possession at the time of disclosure, without restriction as to use or disclosure; or (c) Consultant rightfully receives from a third party who has the right to disclose it and who provides it without restriction as to use or disclosure.  Consultant agrees to hold all Confidential Information in strict confidence, not to use it in any way, commercially or otherwise, except in performing Services, and not to disclose it to others.  Consultant further agrees to take all actions reasonably necessary to protect the confidentiality of all Confidential Information including, without limitation, implementing and enforcing procedures to minimize the possibility of unauthorized use or disclosure of Confidential Information.
6.    WARRANTIES
6.1    No Pre-existing Obligations.  Consultant represents and warrants that Consultant has no pre-existing obligations or commitments (and will not assume or otherwise undertake any obligations or commitments) that would be in conflict or inconsistent with or that would hinder Consultant’s performance of its obligations under this Agreement.
6.2    Performance Standard.  Consultant represents and warrants that Services will be performed in a thorough and professional manner, consistent with high professional and industry standards by individuals with the requisite training, background, experience, technical knowledge and skills to perform Services.

3

6.3    Non-infringement.  Consultant represents and warrants that the Consultant Work Product will not infringe, misappropriate or violate the rights of any third party, including, without limitation, any Intellectual Property Rights or any rights of privacy or rights of publicity, except to the extent any portion of the Consultant Work Product is created, developed or supplied by Company or by a third party on behalf of Company.
6.4    Competitive Activities.  During the term of this Agreement, Consultant will not, directly or indirectly, in any individual or representative capacity, engage or participate in or provide services to any business that is competitive with the types and kinds of business being conducted by Company.
6.5    Non-Solicitation of Personnel.  During the term of this Agreement and for a period of one (1) year thereafter, Consultant will not directly or indirectly solicit the services of any Company employee or consultant for Consultant’s own benefit or for the benefit of any other person or entity.
6.6    Agreements with Consultant Personnel.  Consultant represents and warrants that all Consultant Personnel who perform Services are and will be bound by written agreements with Consultant under which: (i) Consultant owns or is assigned exclusive ownership of all Consultant Work Product; and (ii) Consultant Personnel agree to limitations on the use and disclosure of Confidential Information no less restrictive than those provided in Section 5.
7.    INDEMNITY
Consultant will defend, indemnify and hold Company harmless from and against all claims, damages, liabilities, losses, expenses and costs (including reasonable fees and expenses of attorneys and other professionals) arising out of or resulting from:
(a)    any action by a third party against Company that is based on a claim that any Services performed under this Agreement, or the results of such Services (including any Consultant Work Product), or Company’s use thereof, infringe, misappropriate or violate such third party’s Intellectual Property Rights; and
(b)    any action by a third party against Company that is based on any act or omission of Consultant and that results in: (i) personal injury (or death) or tangible or intangible property damage (including loss of use); or (ii) the violation of any statute, ordinance, or regulation.
8.    TERM AND TERMINATION
8.1    Term.  This Agreement will commence on the Effective Date and, unless terminated earlier in accordance with the terms of this Agreement, will remain in force and effect for nine (9) months, until June 20, 2015.
8.2    Termination for Breach.  Either party may terminate this Agreement (including the Statement of Work) if the other party breaches any material term of this Agreement and fails to cure such breach within thirty (30) days following written notice thereof from the non-breaching party.
8.3    Termination for Convenience.  Company may terminate this Agreement (including the Statement of Work) at any time, for any reason or no reason, upon at least ten (10) days written notice to Consultant.  Company may also terminate the Statement of Work at any time, for any reason or no reason, upon at least ten (10) days written notice to Consultant.  If the Company terminates this Agreement or Statement 

4

of Work under this provision, the remaining amount that would have been due under the Statement of Work through June 20, 2015 will become payable within thirty (30) calendar days following the termination of the Agreement.(For clarity, if the Company terminated this Agreement or Statement of Work after the first thirty (30) days, the remaining 8 (8) months retainer would become immediately due and payable to Consultant).  
8.4    Effect of Termination.  Upon the expiration or termination of this Agreement for any reason: (i) Consultant will promptly deliver to Company all Consultant Work Product, including all work in progress on any Consultant Work Product not previously delivered to Company, if any; (ii) Consultant will promptly deliver to Company all Confidential Information in Consultant’s possession or control; and (iii) Company will pay Consultant any accrued but unpaid fees due and payable to Consultant pursuant to Section 2, or if applicable, Section 8.3, pursuant to the terms set forth therein.
8.5    Survival.  The rights and obligations of the parties under Sections 2, 3.2, 3.3, 4, 5, 6.5, 6.6, 7, 8.4, 8.5, 9 and 10 will survive the expiration or termination of this Agreement.
9.    LIMITATION OF LIABILITY
9.1    IN NO EVENT WILL COMPANY BE LIABLE FOR ANY SPECIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES OF ANY KIND IN CONNECTION WITH THIS AGREEMENT, EVEN IF COMPANY HAS BEEN INFORMED IN ADVANCE OF THE POSSIBILITY OF SUCH DAMAGES.
10.    GENERAL
10.1    Assignment.  Neither Consultant nor Company may assign or transfer this Agreement, in whole or in part, without the other party’s express prior written consent.  Any attempt to assign this Agreement, without such consent, will be void.  Subject to the foregoing, this Agreement will bind and benefit the parties and their respective successors and assigns.
10.2    No Election of Remedies.  Except as expressly set forth in this Agreement, the exercise by Company of any of its remedies under this Agreement will not be deemed an election of remedies and will be without prejudice to its other remedies under this Agreement or available at law or in equity or otherwise.
10.3    Equitable Remedies.  Because the Services are personal and unique and because Consultant will have access to Confidential Information of Company, Company will have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief, without having to post a bond or other consideration, in addition to all other remedies that Company may have for a breach of this Agreement at law or otherwise.
10.4    Attorneys’ Fees.  If any action is necessary to enforce the terms of this Agreement, the substantially prevailing party will be entitled to reasonable attorneys’ fees, costs and expenses in addition to any other relief to which such prevailing party may be entitled.
10.5    Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the State of Washington, excluding its body of law controlling conflict of laws.  Any dispute arising 

5

under this Agreement shall be subject to the arbitration clause set forth in Section 9 of the separation agreement to which this Agreement is attached.
10.6    Severability.  If any provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement will remain in full force and effect, and the provision affected will be construed so as to be enforceable to the maximum extent permissible by law.
10.7    Waiver.  The failure by either party to enforce any provision of this Agreement will not constitute a waiver of future enforcement of that or any other provision.
10.8    Notices.  All notices required or permitted under this Agreement will be in writing, will reference this Agreement, and will be deemed given: (i) when delivered personally; (ii) one (1) business day after deposit with a nationally-recognized express courier, with written confirmation of receipt; or (iii) three (3) business days after having been sent by registered or certified mail, return receipt requested, postage prepaid.  All such notices will be sent to the addresses set forth above or to such other address as may be specified by either party to the other party in accordance with this Section.
10.9    Entire Agreement.  This Agreement, together with the Statement of Work, constitutes the complete and exclusive understanding and agreement of the parties with respect to its subject matter and supersedes all prior understandings and agreements, whether written or oral, with respect to its subject matter.  In the event of a conflict, the terms and conditions of the Statement of Work will take precedence over the terms and conditions of this Agreement. Any waiver, modification or amendment of any provision of this Agreement will be effective only if in writing and signed by the parties hereto.
10.10    Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
COMPANY:
By:                         
Name: Brian O’Callaghan
Title: President & COO
Date:                         
CONSULTANT:
By:                         
Name:                         
Title:                         
Date:                         

6

1

EXHIBIT A
STATEMENT OF WORK
This Statement of Work is issued under and subject to all of the terms and conditions of the Consulting Agreement dated as of September 20, 2014, between Acucela, Inc. (“Company”) and Dave Lowrance (“Consultant”).
1.    Description of Services: Transitionary corporate, financial and accounting consultation as directed by the Company.
2.    Payment Terms:  Monthly retainer, beginning September 20, 2014 and ending on June 20, 2015 (9 months). 
3.    Monthly Retainer Rate:  $10,000
4.    Monthly Hours:    Up to 40
        

AGREED AS OF SEPTEMBER 20, 2014
	
		
	COMPANY:
	CONSULTANT:

	By: /s/Brian O'Callaghan
	By:  /s/Dave Lowrance

	Name: Brian O’Callaghan
	Name:  David L. Lowrance

	Title: President & COO
	Title:  Consultant

	Date:  September 16, 2014
	Date:  September 16, 2014

 

EXHIBIT B
NONDISCLOSURE, INVENTION ASSIGNMENT, NONCOMPETITION AND NONSOLICITATION AGREEMENT

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}]]