Document:

Exhibit 10.9

 

Execution Version

 

THIRD OMNIBUS AMENDMENT

 

This THIRD OMNIBUS AMENDMENT,
dated as of November 26, 2021 (this “Agreement”), is entered into among Pareteum Corporation, a Delaware corporation
(the “Issuer”), each of the Subsidiaries of the Issuer a party hereto (each a “Guarantor”; and together
with the Issuer, collectively, the “Grantors”), B.M.F. De Kroes–Brinkers ( the “First Holder”),
Arjan de Nijs (the “Second Holder”), Roloro Beheer BV (the “Third Holder”), Hoving & Partners
Nominees Sàrl (the “Fourth Holder”) and J. de Nijs (the “Fifth Holder”, and together with
the First Holder, the Second Holder, the Third Holder and the Fourth Holder, collectively, the “Existing Holders” and
individually, each an “Existing Holder”), Hoving & Partners S.A., in its capacity as administrative agent (in such
capacity, the “Existing Administrative Agent”) and as collateral agent (in such capacity, the “Existing Collateral
Agent”) for the Existing Holders, and Channel Ventures Group, LLC, a Delaware limited liability company (“Channel Ventures”),
in its capacity as successor administrative agent (in such capacity, the “Successor Administrative Agent”) and as successor
collateral agent (in such capacity, the “Successor Collateral Agent”) for the Existing Holders. Capitalized terms used
in this Agreement without definition shall have the meanings provided in Article I.

 

PRELIMINARY STATEMENTS:

 

The Issuer issued the First
Note and the First Warrant, each in favor of the First Holder pursuant to the First Securities Purchase Agreement; and the Issuer issued
the Sixth Note in favor of the First Holder pursuant to the Second Securities Purchase Agreement.

 

The Issuer issued the Second
Note and Second Warrant each in favor of the Second Holder, the Third Note and Third Warrant each in favor of the Third Holder, and the
Fourth Note, the Fourth Warrant and the Fifth Note each in favor of the Fourth Holder, and the Seventh Note in favor of the Fifth Holder,
each pursuant to the Second Securities Purchase Agreement.

 

The Existing Administrative
Agent and the Existing Collateral Agent would like to resign in such capacities. The Existing Holders would like to accept such resignations
and to appoint Channel Ventures as Successor Administrative Agent and Successor Collateral Agent. Channel Ventures would like to accept
such appointments. The Existing Holders, the Existing Administrative Agent, the Existing Collateral Agent, the Successor Administrative
Agent and the Successor Collateral Agent would like the Issuer and the other Grantors to acknowledge such resignations and appointments
for all purposes of the Note Documents and the Intercreditor Agreement. The Grantors are willing to so acknowledge such resignations and
appointments as hereinafter set forth. The Senior Agent is willing to execute this Agreement as provided below to consent to such resignations
and appointments and the amendments of the Note Documents and the Intercreditor Agreement as hereinafter set forth.

 

Third Omnibus Amendment

 

    

    

    

 

NOW THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each party to this Agreement agrees, as follows:

 

ARTICLE
I

DEFINITIONS

 

1.01          
Definitions. The following terms (whether or not underscored) when used in this Agreement, including its preamble and recitals,
shall have the following meanings (such definitions to be equally applicable to the singular and plural forms thereof):

 

“Agent Party”
means each of the Successor Administrative Agent and the Successor Collateral Agent.

 

“Agreement”
is defined in the preamble.

 

“Agreement Effective
Date” means the date on which the conditions precedent to the effectiveness of this Agreement as specified in Article III
herein have been satisfied.

 

“Claims”
is defined in Section 5.02.

 

“Existing Administrative
Agent” is defined in the preamble.

 

“Existing Collateral
Agent” is defined in the preamble.

 

“Existing Notes”
means collectively, the First Note, the Second Note, the Third Note, the Fourth Note, the Fifth Note, the Sixth Note and the Seventh Note.

 

“Fifth Holder”
is defined in the preamble.

 

“Fifth Note”
means the Senior Second Lien Secured Convertible Note due 2025, A-5, dated June 18, 2021, issued by the Issuer in favor of the Fourth
Holder,

 

“First Holder”
is defined in the preamble.

 

“First Note”
means the Senior Second Lien Secured Convertible Note due 2025, A-1, dated February 22, 2021, issued by the Issuer in favor of the First
Holder, as amended by the First Omnibus Amendment and the Second Omnibus Amendment.

 

“First Omnibus Amendment”
means the Omnibus Amendment dated as of April 13, 2021, among the Issuer, each Guarantor party thereto, the First Holder and the Existing
Collateral Agent.

 

“First Securities
Purchase Agreement” means the Securities Purchase Agreement dated as of February 22, 2021, between the Issuer and the First
Holder.

 

“First Warrant”
means the Warrant, A-1, dated as of February 22, 2021, issued by the Issuer in favor of the First Holder.

 

“Fourth Holder”
is defined in the preamble.

 

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“Fourth Note”
means the Senior Second Lien Secured Convertible Note due 2025, A-4, dated June 18, 2021, issued by the Issuer in favor of the Fourth
Holder,

 

“Fourth Warrant”
the Warrant, A-4, dated as of June 18, 2021, issued by the Issuer in favor of the Fourth Holder.

 

“Grantors”
is defined in the preamble.

 

“Guarantor”
is defined in the preamble.

 

“Intercreditor Agreement”
is defined in the Second Securities Purchase Agreement.

 

“Issuer”
is defined in the preamble.

 

“Note Documents”
is defined in the Security Agreement.

 

“Note Party”
means collectively, each Existing Holder, the Existing Administrative Agent, the Existing Collateral Agent, the Successor Administrative
Agent and the Successor Collateral Agent.

 

“Released Parties”
is defined in Section 5.02.

 

“Second Omnibus Amendment”
means the Second Omnibus Amendment dated as of June 18, 2021, among the Issuer, each Guarantor party thereto, the First Holder, the Second
Holder, the Third Holder and the Existing Collateral Agent.

 

“Second Holder”
is defined in the preamble.

 

“Second Note”
means the Senior Second Lien Secured Convertible Note due 2025, A-2, dated April 13, 2021, issued by the Issuer in favor of the Second
Holder, as amended by the Second Omnibus Amendment.

 

“Second Securities
Purchase Agreement” means the Securities Purchase Agreement dated as of April 13, 2021, among the Issuer, the Second Holder,
the Existing Administrative Agent and the Existing Collateral Agent, as supplemented by the Joinder Agreement dated as of April 15, 2021,
among the Issuer, the Third Holder, the Existing Administrative Agent and the Existing Collateral Agent, the Joinder Agreement dated as
of June 18, 2021, among the Issuer, the First Holder, the Existing Administrative Agent and the Existing Collateral Agent, the Joinder
Agreement dated as of June 18, 2021, among the Issuer, the Fourth Holder, JFG Capital BV, the Existing Administrative Agent and the Existing
Collateral Agent, and the Joinder Agreement dated as of August 13, 2021, among the Issuer, the Fifth Holder and the Successor Administrative
Agent, and as amended by the Second Omnibus Amendment.

 

“Second Warrant”
means the Warrant, A-2, dated as of April 13, 2021, issued by the Issuer in favor of the Second Holder.

 

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“Security Agreement”
means the Security Agreement dated as of February 22, 2021, among the Issuer, the other Grantors and the First Holder, as initial collateral
agent, as amended by the First Omnibus Amendment.

 

“Senior Agent”
is defined in the Intercreditor Agreement.

 

“Seventh Note”
means the Senior Second Lien Secured Convertible Note due 2025, A-7, dated August 13, 2021, issued by the Issuer in favor of the Fifth
Holder.

 

“Sixth Note”
means the Senior Second Lien Secured Convertible Note due 2025, A-6, dated June 18, 2021, issued by the Issuer in favor of the First Holder.

 

“Subsidiary Guaranty”
means the Subsidiary Guaranty dated as of February 22, 2021, by each Guarantor in favor of the First Holder, as initial collateral agent,
as amended by the First Omnibus Amendment.

 

“Successor Administrative
Agent” is defined in the preamble.

 

“Successor Collateral
Agent” is defined in the preamble.

 

“Third Holder”
is defined in the preamble.

 

“Third Note”
means the Senior Second Lien Secured Convertible Note due 2025, A-3, dated April 15, 2021, issued by the Issuer in favor of the Third
Holder, as amended by the Second Omnibus Amendment.

 

“Third Warrant”
means the Warrant, A-3, dated as of April 15, 2021, issued by the Issuer in favor of the Third Holder.

 

“Transactions”
is defined in Section 5.02.

 

1.02          
Other Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement, including
its preamble and recitals, have the meanings provided in the Second Securities Purchase Agreement or in any Convertible Note referred
to therein.

 

ARTICLE
II

AMENDMENTS

 

2.01          
Resignations. Effective as of the Agreement Effective Date, the Existing Administrative Agent and the Existing Collateral
Agent hereby resign in such capacities and each Existing Holder hereby accepts such resignations.

 

2.02          
Appointments. Effective as of the Agreement Effective Date, each Existing Holder hereby appoints Channel Ventures as Successor
Administrative Agent and Successor Collateral Agent for all purposes of the Note Documents and the Intercreditor Agreement. Channel Ventures
hereby accepts such appointments and agrees to be bound by the Note Documents and the Intercreditor Agreement in such capacities.

 

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2.03          
Intercreditor Agreement Amendments. Effective as of the Agreement Effective Date, the Intercreditor Agreement shall be amended
to delete the stricken text (indicated textually in the same manner as the following example: stricken
text) and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined
text) as set forth in the redline attached as Exhibit A hereto.

 

2.04          
Convertible Notes Amendment. Effective as of the Agreement Effective Date, Section 22(H) of each Convertible Note and the
form of Convertible Note attached to the Second Securities Purchase Agreement shall be amended to read as follows:

 

(H)           Reimbursement
by Holder and Other Holders. To the extent that the Company for any reason fails to indefeasibly pay any costs or expenses of the
Agent (or any sub-agent thereof) or any Related Party of the Agent (or any sub-agent thereof) pursuant to Section 5.02 of the Third Omnibus
Amendment dated as of November 26, 2021, among the Company, the Agent and the other parties thereto, the Holder hereby agrees, jointly
and severally with each Other Holder, to pay to the Agent (or any such sub-agent) or such Related Party of the Agent (or any sub-agent
thereof), as the case may be, such unpaid amount

 

2.05          
Grantor Acknowledgement. (a) Each Grantor (i) consents and agrees to the terms of this Agreement and each Note Document
and the Intercreditor Agreement, as amended and otherwise modified by this Agreement, and (ii) confirms and agrees that each Note Document
to which it is a party, is, and shall continue to be, in full force and effect.

 

(b)          
On and after the Agreement Effective Date, (i) each reference in a Note Document to “hereunder”, “hereof”
or words of like import shall mean and be a reference to such Note Document as amended and otherwise modified by this Agreement, (ii)
each reference in a Note Document to the Administrative Agent shall mean and be a reference to the Successor Administrative Agent, (iii)
each reference in a Note Document to the Collateral Agent shall mean and be a reference to the Successor Collateral Agent, and (iv) each
reference in the Intercreditor Agreement to the Subordinated Agent shall mean and be a reference to the Successor Collateral Agent.

 

(c)          
Each Grantor (and the Existing Collateral Agent) hereby confirms the authorization of the Successor Collateral Agent pursuant to
Section 4.1(b) of the Security Agreement to file an amendment to each financing statement naming such Grantor as debtor and the Existing
Collateral Agent as secured party to change the name and address of the secured party thereunder to the name and address of the Successor
Collateral Agent.

 

2.06          
Senior Agent Acknowledgement. The Senior Agent has executed this Agreement solely for the purpose of acknowledging and consenting
to the modifications to the Note Documents and the Intercreditor Agreement contemplated by this Agreement (and for the purposes provided
in Section 2.07).

 

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2.07          
Other Acknowledgments. Each party to this Agreement acknowledges that Events of Default have occurred and are continuing
as of the date hereof under the First Lien Documents and no waiver or agreement to forbear from exercising any remedies under the First
Lien Documents have been agreed by the parties thereunder. Nothing in this Agreement shall effect any such waiver or forbearance.

 

ARTICLE
III

CONDITIONS PRECEDENT

 

3.01          
Conditions of Effectiveness. This Agreement shall become effective when, and only when, each of the following conditions
shall have been satisfied:

 

(a)          
Delivery. The Successor Administrative Agent shall have received counterparts of this Agreement executed by each Grantor,
the Existing Administrative Agent, the Existing Collateral Agent, each Existing Holder, each New Holder and the Senior Agent; and

 

(b)          
Representations and Warranties. The representations and warranties of each Grantor contained in Article IV should
be true and correct in all material respects.

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES

 

In order to induce the Existing
Holders to enter into this Agreement, each Grantor, hereby represents and warrants that on and as of the Agreement Effective Date after
giving effect to this Agreement:

 

4.01          
Due Authorization; No Conflict. The execution and delivery by each Grantor of this Agreement and the performance by such
Grantor of this Agreement and each Note Document to which such Grantor is a party, as amended and otherwise modified by this Agreement,
have been duly authorized by all necessary corporate or other organizational action of such Grantor, and do not and will not: (a) contravene
the terms of such Grantor’s organizational documents; (b) conflict with or result in any breach or contravention of, or the creation
of any Lien under, or require any payment to be made under (i) any contractual obligation to which such Grantor is a party (other than
the Security Agreement) or affecting such Grantor or any properties of such Grantor or (ii) any order, injunction, writ or decree of any
governmental entity or any arbitral award to which such Grantor or any of their property is subject; or (c) violate any applicable law
to which such Grantor or any of their property is subject.

 

4.02          
Enforceability. Each of this Agreement and each Note Document to which any Grantor is a party, as amended and otherwise
modified by this Agreement, constitute a legal, valid and binding obligation of such Grantor, enforceable against such Grantor in accordance
with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance and
moratorium laws and other laws of general application affecting enforcement of creditors’ rights generally.

 

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ARTICLE
V

MISCELLANEOUS

 

5.01          
Effect of Agreement. Each Note Document, as specifically amended or otherwise modified by this Agreement, is and shall continue
to be in full force and effect and is hereby in all respects ratified and confirmed.

 

5.02          
Expenses; Indemnity; Damage Waiver. Without limiting any of the rights of the Agent Parties under the Note Documents (including
without limitation, under Section 22 of each of the Convertible Notes), the parties hereto agree as follows:

 

(a)          
The Grantors shall pay (i) all reasonable, documented out-of-pocket expenses incurred by each of the Agent Parties (limited, in
the case of counsel, to the reasonable fees, charges and disbursements of one primary counsel and one additional local counsel in each
applicable jurisdiction for the Agent Parties) in connection with the preparation and administration of this Agreement and the other Note
Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated
hereby or thereby shall be consummated), (ii) all reasonable, documented out-of-pocket expenses incurred by the Agent Parties and all
reasonable, documented out-of-pocket expenses incurred by advisors and other professionals hired by the Agent Parties (limited, in the
case of counsel, to the fees, charges and disbursements of one primary counsel and one additional local counsel in each applicable jurisdiction
for the Agent Parties) in connection with the enforcement or protection of their rights in connection with this Agreement and any other
Note Document, including their rights under this Section, or in connection with the Convertible Notes, including all such out-of-pocket
expenses incurred during any workout, restructuring or negotiations in respect of the Convertible Notes and (iii) all reasonable, documented
out-of-pocket costs and expenses incurred by each of the Agent Parties in connection with each of the Agent Parties’ service as
Successor Administrative Agent or Successor Collateral Agent.

 

(b)          
The Grantors shall indemnify each of the Agent Parties and each of their affiliates, directors, officers, partners, members, trustees,
employees, agents, administrators, managers, representatives and advisors (each such person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the
fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection
with, or as a result of (i) each of the Agent Parties’ service as Successor Administrative Agent or Successor Collateral Agent or
the execution of any document in any such capacity or (ii) any actual or prospective claim, litigation, investigation or proceeding relating
to the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by any Grantor, and regardless
of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and no
appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.

 

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(c)          
To the extent that any Grantor fails to pay any amount required to be paid by it to any of the Agent Parties (or any sub-agent
thereof or any other Indemnitee) under paragraph (a) or (b) of this Section, each Existing Holder severally agrees to pay to the Agent
Parties (or any other Indemnitee), as the case may be, such Existing Holder’s pro rata portion based on the then outstanding amount
under each Convertible Note held by each Existing Holder (it being understood that a Grantor’s failure to pay any such amount shall
not relieve such Grantor of any default in the payment thereof).

 

(d)          
To the extent permitted by applicable law, no Existing Holder shall assert, and each Existing Holder hereby waives, any claim against
any Indemnitee, (i) for any damages arising from the use by others of information or other materials obtained through telecommunications,
electronic or other information transmission systems (including the internet), or (ii) on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this
Agreement, any Note Document, or any agreement or instrument contemplated hereby or thereby, any Convertible Note or the use of the proceeds
thereof.

 

(e)          
Each Existing Holder agrees not to transfer any not to transfer any Convertible Note or interest therein unless the transferee
agrees to be bound by the provisions of this Section 5.02 as if it were an Existing Holder.

 

(f)          All amounts due under this Section shall be payable not later than fifteen (15) days after written demand therefor.

 

5.03          
Section Captions. Section captions used in this Agreement are for convenience of reference only, and shall not affect the
construction of this Agreement.

 

5.04          
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but
all of which shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Agreement by
telecopy or other electronic means shall be effective as delivery of a manually executed counterpart of this Agreement.

 

5.05          
Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

 

	 	PARETEUM CORPORATION, as a Grantor
	 	 	 
	 	By:	/s/ Alexander Korff
	 	Name:	Alexander Korff
	 	Title:	Corporate Secretary
	 	 	 
	 	PARETEUM NORTH AMERICA CORP., as a Grantor and a Guarantor
	 	 	 
	 	By:	/s/ Alexander Korff
	 	Name:	Alexander Korff
	 	Title:	Corporate Secretary
	 	 	 
	 	DEVICESCAPE HOLDINGS, INC., as a Grantor and a Guarantor
	 	 	 
	 	By:	/s/ Alexander Korff
	 	Name:	Alexander Korff
	 	Title:	Corporate Secretary
	 	 	 
	 	IPASS INC., as a Grantor and a Guarantor
	 	 	 
	 	By:	/s/ Alexander Korff
	 	Name:	Alexander Korff
	 	Title:	Corporate Secretary
	 	 	 
	 	IPASS IP LLC, as a Grantor and a Guarantor
	 	 	 
	 	By:	/s/ Alexander Korff
	 	Name:	Alexander Korff
	 	Title:	Corporate Secretary
	 	 	 
	 	PARETEUM EUROPE B.V., as a Grantor and a Guarantor
	 	 	 
	 	By:	/s/ Alexander Korff
	 	Name:	Alexander Korff
	 	Title:	Corporate Secretary

 

Signature Page

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	 	FIRST Holder:
	 	 
	 	/s/ B.M.F. de Kroes-Brinkers
	 	B.M.F. de Kroes-Brinkers

 

Signature Page

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	 	Second Holder:
	 	 
	 	/s/ Arjan de Nijs
	 	Arjan de Nijs

 

Signature Page

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	 	THIRD HOLDER:
	 	 
	 	Roloro beheer bv
	 	 	 
	 	By:	/s/ H.U. d Boog
	 	Name:	H.U. d Boog
	 	Title:	Owner

 

Signature Page

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	 	FOURTH Holder:
	 	 
	 	HOVING & Partners nominees sÀrl
	 	 	 
	 	By:	/s/ Patrick Raslot
	 	Name:	Patrick Raslot
	 	Title:	Manager
	 	 	 
	 	By:	/s/ M.J. Walpam
	 	Name:	M.J. Walpam
	 	Title:	Hoving Partners SA shareholder of Nominees Sarl

 

Signature Page

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	 	FIFTH Holder
	 	 
	 	/s/ J. de Jinjs
	 	J. de Nijs

 

Signature Page

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	 	HOVING & PARTNERS S.A., 

as Existing Administrative Agent and Existing Collateral Agent
	 	 	 
	 	By:	/s/ M van Woll Polthe
	 	Name:	M van Woll Polthe
	 	Title:	Director

 

Signature Page

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	 	Channel Ventures Group, LLC,
	 	a Delaware limited liability company
	 	 
	 	by its sole Member, Channel Beheer Management B.V.,
	 	a Dutch private limited liability company
	 	 
	 	by its Statutory Director, Maring Management B.V.,
	 	a Dutch private limited liability company

 

	 	By:	/s/ Markwin Maring
	 	Name:	Markwin Maring
	 	Title:	Statutory Director

 

Signature Page

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	 	high trail investments sa llc,
	 	as Senior Agent
	 	 	 
	 	By:	/s/ Eric Helenek
	 	 	Name: Eric Helenek
	 	 	Title: Authorized Signatory

 

Signature Page 

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Exhibit A

 

Intercreditor Agreement Amendments

 

 

[See attached]

 

    

    

    

 

Exhibit
A

Conformed
to reflect amendments pursuant to

Amendment
No. 1 to Intercreditor Agreement dated as of April 13, 2021 referred to below and

the
Third Omnibus Amendment dated as of November 26, 2021 referred to below 

 

INTERCREDITOR
AGREEMENT

 

This INTERCREDITOR AGREEMENT,
dated as of [_____]February
22, 2021, as amended by Amendment No. 1 to Intercreditor Agreement dated as of April 13, 2021, and Third Omnibus Amendment dated as of
November 26, 2021 (as so amended, this “Agreement”),
iseach entered
into by and among Pareteum Corporation, a Delaware corporation (the “Issuer”), [_____],
a [_____]Channel Ventures Group, LLC, in its capacity
as collateral agent for the Subordinated Parties (as such term is hereinafter defined) (in such capacity, together with its successors
and assigns in such capacity, the “Subordinated Agent”)
(and successor to each of B.M.F De Kroes-Brinkers in such capacity and Hoving & Partners S.A., in such capacity), and High
Trail Investments SA LLC, a Delaware limited liability company, in its capacity as collateral agent for the Senior Parties (as hereinafter
defined) (in such capacity, together with its successors and assigns in such capacity, the “Senior Agent”).

R E C I T
A L S

 

WHEREAS, the Issuer has issued
that certain Senior Secured Convertible Note due 2025, dated as of June 8, 2020 (as the same may be amended, amended and restated, supplemented,
waived, replaced, refinanced, renewed, extended or otherwise modified from time to time, the “Existing
Senior Note”) to the Holders (as defined in the Existing
Senior Note) (the “Existing Senior Holders”).

 

WHEREAS,
the Issuer may from time to time issue additional Senior Secured Convertible Notes due 2025 (as the same may be amended, amended and restated,
supplemented, waived, replaced, refinanced, renewed, extended or otherwise modified from time to time, the “Incremental Senior
Notes”, and together with the Existing Senior Note, collectively, the “Senior Notes”) to the Holders (as
defined in the Senior Notes) (the “Incremental Senior Holders”, and together with the Existing Senior Holders, collectively,
the “Senior Holders”) pursuant to that certain Securities Purchase Agreement dated as of June 8, 2020, as amended by
the Omnibus Amendment (as defined below), each among the Issuer, the Existing Senior Holder and the Senior Agent, as supplemented from
time to time by each joinder agreement thereto among the Issuer, the Senior Holder party thereto and the Senior Agent, and as the same
may be further amended, amended and restated, supplemented, waived, replaced, refinanced, renewed, extended or otherwise modified from
time to time.

 

WHEREAS, the Issuer and certain
subsidiaries of the Issuer have granted the Senior Agent, as collateral security for the payment and performance of the Obligations (as
defined in the Senior Security Agreement) owed to the Senior Holders under the Senior Documents, first priority liens over the Collateral
pursuant to that certain Security Agreement, dated as June 8, 2020, among the Issuer, the subsidiaries of the Issuer party thereto and
the Senior Agent (, as amended
by the Omnibus Amendment (as amended, the “Senior Security Agreement”).

 

WHEREAS, the Issuer has issued
that certain Senior Second Lien Secured Convertible Note due 2025, dated as of [_____]February
22, 2021 (as the same may be amended, amended and restated, supplemented, waived, replaced, refinanced, renewed, extended or
otherwise modified from time to time, the “Existing
Subordinated Note”) to the Holders (as defined in the Existing Subordinated
Note) (the “Existing Subordinated Holders”).

 

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WHEREAS,
the Issuer may from time to time issue additional Senior Second Lien Secured Convertible Notes due 2025 (as the same may be amended, amended
and restated, supplemented, waived, replaced, refinanced, renewed, extended or otherwise modified from time to time, together with the
Existing Subordinated Note, collectively, the “Subordinated Notes”) pursuant to that certain Securities Purchase Agreement
dated as of April 13, 2021, as amended by the Second Omnibus Amendment dated as of June 18, 2021, and the Third Omnibus Amendment dated
as of November 26, 2021, each among the Issuer, the Holders (as therein defined) party thereto (together with the Existing Subordinated
Holders, collectively, the “Subordinated Holders”) and the Subordinated Agent, as supplemented from time to time by
each joinder agreement thereto among the Issuer, the Subordinated Holder party thereto and the Subordinated Agent, and as the same may
be further amended, amended and restated, supplemented, waived, replaced, refinanced, renewed, extended or otherwise modified from time
to time.

 

WHEREAS, the Issuer and certain
subsidiaries of the Issuer have granted the Subordinated Agent, as collateral security for the payment and performance of the Obligations
(as defined in the Subordinated Security Agreement) owed to the Subordinated Holders under the Subordinated Documents, second priority
liens over the Collateral pursuant to that certain Security Agreement, dated as [_____]February
22, 2021, as amended by the Omnibus Amendment dated as of April
13, 2021, and the Third Omnibus Amendment referred to above, each among the Issuer, the subsidiaries of the Issuer party thereto
and the Subordinated Agent (as so amended and as the same may be amended, amended
and restated, supplemented, waived, replaced, refinanced, renewed, extended or otherwise modified from time to time, the “Subordinated
Security Agreement”).

 

WHEREAS, the Issuer and the
Senior Agent have entered into that certain letter agreement re: Pareteum Corporation Financing, dated as of the
date hereof ( February 22, 2021, as amended by Amendment No.
1 to Intercreditor Agreement dated as of April 13, 2021, and as supplemented by the Third Omnibus Amendment referred to above (as so amended
and supplemented and as the same may be amended, amended and restated, supplemented, waived, replaced, refinanced, renewed,
extended or otherwise modified from time to time, the “Senior Consent”),
pursuant to which the Senior Agent agreed, subject to the terms and conditions set forth in the Senior Consent, to consent to the issuance
of the Subordinated NoteNotes,
the execution of the Subordinated Documents and granting liens on the Collateral in favor of the Subordinated Agent, which consent is
required by the terms of the Senior Documents.

 

WHEREAS, as an inducement
to and as one of the conditions precedent to the agreement of the Senior Agent and the other Senior Parties (as hereinafter defined) to
consummate the transactions contemplated by the Senior Consent and to permit the Issuer to issue the Subordinated NoteNotes,
execute the Subordinated Documents and grant the liens on the Collateral in favor of the Subordinated Parties (as hereinafter defined),
the Senior Agent and Senior Parties have required the execution and delivery of this Agreement by the Subordinated Agent and the Issuer
in order to subordinate the Subordinated Indebtedness (as hereinafter defined), on the terms and provisions set forth herein, to the Senior
Indebtedness (as hereinafter defined), and to provide for the additional agreements set forth herein.

 

NOW, THEREFORE, in order to
induce the Senior Parties to consummate the transactions contemplated by the Senior Consent, and for other good and valuable consideration,
the receipt and sufficiency of which hereby are acknowledged, the parties hereto hereby agree as follows:

 

1.          
Definitions; Use of Certain Terms.

 

2.          
1.1Definitions. The following terms shall have the following meanings in this Agreement:

 

“Agreement” has the meaning
assigned to such term in the preamble.

 

    3

    

    

 

 

“Bankruptcy Code”
means Title 11 of the United States Code, as amended from time to time and any successor statute and all rules and regulations promulgated
thereunder.

 

“Business Day” means any day
excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of New York or is a day on which banking institutions
located in such state are authorized or required by law or other governmental action to close.

 

“Cash Collateral” has the meaning
assigned to such term in Section 2.3(d).

 

“Collateral” means, at any time,
all of the assets and property of the Issuer or any subsidiary of the Issuer, whether real, personal or mixed, in which any Senior Party
holds, purports to hold or are required to hold, a security interest at such time,
including without limitation any such assets and property subject to the Senior Security Agreement.

 

“Debtor Relief Laws” means the
Bankruptcy Code and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, adjustment of debt, moratorium,
rearrangement, compromise, receivership, winding-up, plan of arrangement, insolvency, dissolution, reorganization, or similar debtor relief
laws (whether federal, provincial, foreign or otherwise) of the United States of America and any other applicable jurisdictions from time
to time in effect.

 

“Discharge of Senior Obligations”
means the indefeasible payment in full of all of the Senior Indebtedness.

 

“DIP Financing” has the meaning
assigned to such term in Section 2.3(d).

 

“Distribution”
means, with respect to any indebtedness, guarantee, obligation, liability or security, (a) any payment or distribution by any Person of
cash, debt, equity or other securities or other property or assets, by set-off, offset, recoupment or otherwise, on account of such indebtedness,
guarantee, obligation, liability or security (including, without limitation, any adequate protection payments, backstop fees, reimbursement
of fees and expenses and indemnities), (b) any redemption, purchase or other acquisition of such indebtedness, obligation or security
by any Person or (c) the granting of any Lien or security interest to or for the benefit of the holders of such indebtedness, guarantee,
obligation, liability or security in or upon any property of any Person, in the case of each of the foregoing clauses (a), (b) and (c),
including but not limited to any such payment, distribution, redemption, purchase or other acquisition, and granting of Lien or security
interest in connection with a Proceeding.

 

“Enforcement Action” means (a)
to take, accept or receive from or for the account of the Issuer, in each case, by set-off, offset, recoupment or otherwise, the whole
or any part of any money, amount or other obligation of any kind whatsoever which may now or hereafter be due or owing by the Issuer with
respect to the Subordinated Indebtedness, (b) to sue for payment of, or to initiate or participate with others in any suit, action or
proceeding, including, without limitation, any Proceeding, against the Issuer (i) to enforce payment of or to collect the whole or any
part of the Subordinated Indebtedness or (ii) to commence judicial enforcement of any of the rights or remedies under the Subordinated
Documents or applicable law against the Issuer with respect to the Subordinated Indebtedness or any portion thereof, (c) to exercise any
put option with respect to the Issuer or to cause the Issuer to honor any redemption or prepayment obligation under any Subordinated Document,
(d) (i) to exercise or seek to exercise any rights or remedies against the Issuer with respect to the Subordinated Indebtedness or any
portion thereof, (ii) to commence or prosecute the enforcement of any of the rights and remedies against the Issuer under the Subordinated
Documents or applicable law or (iii) to exercise or seek to exercise any rights or remedies against the Issuer with respect to the Subordinated
Indebtedness or any portion thereof or to commence or prosecute the enforcement of any of the rights and remedies against the Issuer under
the Subordinated Documents or applicable law (in each case, including, without limitation, the exercise any rights or remedies of a secured
creditor under the UCC or in a Proceeding with respect to the Issuer, or (f) without limiting the foregoing, to take any action under
the provisions of any state or federal law, including, without limitation, the UCC, or under any contract or agreement, to enforce, foreclose
upon (whether judicially or non-judicially), take possession of or sell any Collateral or any other property or assets of the Issuer or
otherwise exercise any remedies against such Collateral or other property or assets, including, without limitation, the giving of any
notices of foreclosure, any notices of collection to account debtors or notices under any deposit or securities account control agreement
or the acceptance of Subordinated Debt Collateral in satisfaction of any indebtedness, guarantee, liability or obligation of the Issuer;
provided, however, that “Enforcement Action” shall not include any of the following in and of itself: (x) sending
or delivering to a notice of default regarding the Subordinated Indebtedness, or (y) the accrual (but not the payment) of interest at
a default rate to the extent permitted by the Subordinated Documents.

 

    4

     

    

 

“Grantors”
has the meaning assigned to such term in the Senior Security Agreement. 

 

“Incremental
Senior Holders” has the meaning assigned to such term in the preamble. 

 

“Incremental
Senior Notes” has the meaning assigned to such term in the preamble. 

 

“Issuer” has the meaning assigned
to such term in the preamble.

 

“Lien”
means any lien (including, without limitation judgment liens and liens arising by operation of law), mortgage, pledge, assignment, security
interest, charge or encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale or other title
retention agreement, and any lease in the nature thereof) and any option, call, trust, UCC financing statement or other preferential arrangement
having the practical effect of any of the foregoing.

 

“Omnibus
Amendment” means that certain Omnibus Amendment dated as of November 26, 2021, among the Issuer, each of the Subsidiaries (as
defined therein) of the Issuer a party thereto, the Existing Senior Holders, and the Senior Agent.

 

“Permitted Subordinated Debt Payments”
means, so long as no Senior Debt Default has occurred and is continuing (a) regularly scheduled payments of cash interest on the Subordinated
Indebtedness due and payable on a non-accelerated basis in accordance with the terms of the Subordinated NoteNotes
as in effect on the date hereof or as modified in accordance with the terms of this Agreement, and (b) reasonable and documented out-of-pocket
costs and expenses owing by the Issuer in accordance with the Subordinated NoteNotes
as in effect on the date hereof or as modified in accordance with the terms of this Agreement.

 

“Person”
means any natural person, corporation, general or limited partnership, limited liability company, firm, trust, association, government,
governmental agency or other entity, whether acting in an individual, fiduciary or other capacity.

 

“Pledged Collateral”
has the meaning assigned to such term in Section 3.5.

 

“Post-Petition Interest”
means interest, fees, expenses and other charges that pursuant to the Senior Documents continue to accrue after the commencement of any
Proceeding, whether or not such interest, fees, expenses and other charges are allowed or allowable under the Bankruptcy Code or any other
Debtor Relief Law or in any such Proceeding.

 

    5

     

    

 

“Proceeding”
means, with respect to any Person, any (a) voluntary or involuntary insolvency, bankruptcy, receivership, custodianship, liquidation,
adjustment, readjustment, composition, dissolution, reorganization, winding up, compromise, arrangement, protection, moratorium, relief,
stay of proceedings of creditors generally (or any class of creditors), or other similar proceeding of or against such Person or its property
or its creditors as such, (b) appointment of a custodian, receiver, conservator, administrator, trustee, liquidator or other officer with
similar powers or any other proceeding for the liquidation, dissolution or other winding up of such Person, voluntary or involuntary,
whether or not involving insolvency or bankruptcy proceedings, (c) assignment for the benefit of creditors of such Person or (d) marshalling
of the assets of such Person, in the case of each of the foregoing clauses (a) through (d), including but not limited to any such proceeding
or other action under any Debtor Relief Law.

 

“Recovery” has the meaning assigned
to such term in Section 2.3(g).

 

“Security
Documents” has the meaning assigned to such term in the Senior Security Agreement. 

 

“Security
Purchase Agreement” means that certain Security Purchase Agreement, dated as of June 8, 2020, between the Issuer and the Senior
Agent, as amended by the Omnibus Amendment.

 

“Senior Agent” has the meaning
assigned to such term in the preamble.

 

“Senior Agent Notice”
means a written notice from the Senior Agent to the Subordinated Agent of the occurrence of a Senior Debt Default.

 

“Senior Consent”
has the meaning assigned to such term in the recitals.

 

“Senior Debt Collateral”
means all of the assets and property of the Issuer or any other Person with respect to which a Lien is granted, or purported to be granted,
as security for any Senior Indebtedness.

 

“Senior Debt Default” means
any “Default” under and as defined in the applicable Senior Documents or any “Event of Default” under and as defined
in the applicable Senior Documents.

 

“Senior Documents”
means the Senior Note, the Senior Security Agreement and the other “Note Documents” under and as defined in the Senior Security
Agreement, and all other documents and instruments evidencing or pertaining to all or any portion of the Senior Indebtedness, in each
case, as amended, amended and restated, supplemented, replaced, extended, renewed, refinanced, waived or otherwise modified from time
to time.

 

“Senior Holders” has the meaning
assigned to such term in the recitals.

 

    6

     

    

 

“Senior Indebtedness” means
the “Obligations,” as such term is defined in the Senior Security Agreement and all indebtedness, guarantees, liabilities
and obligations of every nature of the Issuer and other obligors thereof from time to time owed to the Senior Parties under the Senior
Documents, including, without limitation, the principal amount of all debts, claims and indebtedness, accrued and unpaid interest (including,
without limitation, Post-Petition Interest), all premiums, guarantee obligations, fees, costs, expenses and indemnities (including the
cash collateralization to the reasonable satisfaction of the Senior Agent of any contingent obligations in respect of which no assertion
of liability (whether oral or written) and no claim or demand for payment (whether oral or written) has been made), in each instance,
whether primary, secondary, direct, contingent, fixed or otherwise, heretofore, now and from time to time hereafter owing, due or payable,
whether before or after the commencement of a Proceeding and without regard to whether or not an allowed claim, together with (a) any
amendments, restatements, amendments and restatements, modifications, renewals, extensions, refinancings or other replacements thereof
to the extent not prohibited by the terms of this Agreement and (b) any interest, fees, expenses and charges accruing thereon after the
commencement of a Proceeding, without regard to whether or not such interest, fees, expenses or charges are an allowed claim. Senior Indebtedness
shall be considered to be outstanding whenever any commitment to extend credit under the Senior Documents is outstanding. Without limiting
the foregoing, to the extent any payment with respect to any Senior Indebtedness (whether by or on behalf of the Issuer or other obligor
thereof, as proceeds of security, enforcement of any right of set-off, offset or otherwise) is declared to be a fraudulent conveyance
or a preference in any respect, set aside or required to be paid to a debtor in possession, any Subordinated Party, receiver or similar
Person, then the obligation or part thereof originally intended to be satisfied shall, for the purposes of this Agreement and the rights
and obligations of the Senior Parties and the Subordinated Parties, be deemed to be reinstated and outstanding as if such payment had
not occurred. To the extent that any interest, fees, expenses or other charges (including, without limitation, Post-Petition Interest)
to be paid pursuant to the Senior Documents are disallowed by order of any court, including, without limitation, by order of a Bankruptcy
Court in any Proceeding, such interest, fees, expenses and charges (including, without limitation, Post-Petition Interest) shall, as between
the Senior Agent and the Subordinated Agent, be deemed to continue to accrue and be added to the amount to be calculated as the “Senior
Indebtedness”.

 

“Senior Note”
has the meaning assigned to such term in the recitals.

 

“Senior Parties”
means the Senior Agent and the Senior Holders.

 

“Senior Security
Agreement” has the meaning assigned to such term in the recitals.

 

“Subordinated Agent” has the
meaning assigned to such term in the preamble.

 

“Subordinated Debt
Collateral” means all of the assets and property of the Issuer or any other Person with respect to which a Lien is granted,
or purported to be granted, as security for any Subordinated Indebtedness.

 

“Subordinated Documents”
means the Subordinated NoteNotes,
the Subordinated Security Agreement and the other “Note Documents” under and as defined in the Subordinated Security Agreement,
and all other documents and instruments evidencing or pertaining to all or any portion of the Subordinated Indebtedness, in each case,
as amended, amended and restated, supplemented, replaced, extended, renewed, refinanced, waived or otherwise modified from time to time.

 

“Subordinated Holders” has the
meaning assigned to such term in the recitals.

 

“Subordinated Indebtedness”
means the “Obligations,” as such term is defined in the Subordinated Security Agreement and all indebtedness, guarantees,
liabilities and obligations of every nature of the Issuer and other obligors thereof from time to time owed to the Subordinated Parties
under the Subordinated Documents.

 

“Subordinated NoteNotes”
has the meaning assigned to such term in the recitals.

 

“Subordinated Parties”
means the Subordinated Agent and the Subordinated Holders.

 

“Subordinated Security
Agreement” has the meaning assigned to such term in the recitals.

 

“Transfer”
has the meaning assigned to such term in Section 2.6.

 

    7

     

    

 

“UCC” means the Uniform Commercial
Code (or any similar or equivalent legislation) as in effect in the State of New York or any other applicable jurisdiction.

 

3.             1.2           Use of Certain Terms. 

 

 

(a)           As
used herein, and any certificate or other document made or delivered pursuant hereto or thereto:

 

(i)            the words “including” and “include” shall mean including without limiting the generality of any description preceding
such term, and, for purposes of this Agreement, the parties hereto agree that the rule of ejusdem generis shall not be applicable
to limit a general statement, which is followed by or referable to an enumeration of specific matters, to matters similar to the matters
specifically mentioned;

 

(ii)           the word “incur” shall be construed to mean incur, create, issue, assume, become liable in respect of (and the words “incurred”
and “incurrence” shall have correlative meanings); and

 

(iii)          the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties (whether real or personal), including cash, equity interests, securities, revenues,
accounts, leasehold interests and contract rights.

 

(b)           The words “hereof,” “herein,” “hereto” and “hereunder” and words of similar import when
used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Article,
Schedule, recital, preamble and analogous references are to this Agreement unless otherwise specified.

 

(c)           References to any Person shall include such Person, its successors and permitted assigns and transferees.

 

4.             Subordination of Subordinated Indebtedness to Senior Indebtedness.

 

5.             2.1           Payment Subordination. The Issuer covenants and agrees, and each Subordinated Party by its acceptance of the Subordinated
Documents (whether upon original issue or upon transfer or assignment) likewise covenants and agrees, notwithstanding anything to the
contrary contained in any of the Subordinated Documents, and whether or not any Proceeding shall have been commenced by or against the
Issuer or any other Person, that the payment of any and all of the Subordinated Indebtedness shall be subordinate (and junior in right
of payment) and subject in right and time of payment, to the extent and in the manner set forth herein, to the prior Discharge of Senior
Obligations. Each holder of Senior Indebtedness, whether such Senior Indebtedness is now outstanding or hereafter created, incurred, assumed
or guaranteed, shall be deemed to have acquired Senior Indebtedness in reliance upon the provisions contained in this Agreement. 

 

    8

     

    

 

6.             2.2           Restriction on Payments and Exercise of Rights. Notwithstanding anything to the contrary contained in any of the Subordinated
Documents, (a) each Subordinated Party hereby agrees that it will not take any Enforcement Action or otherwise accept, receive or retain
any proceeds from any Enforcement Action, until a Discharge of Senior Obligations, and (b) the Issuer hereby agrees that it will not make,
and each Subordinated Party hereby agrees that it will not accept or otherwise receive or retain directly or indirectly from the Issuer
or any subsidiary thereof, any Distribution on account of or with respect to the Subordinated Indebtedness (or any proceeds thereof),
in each case, other than Permitted Subordinated Debt Payments. Notwithstanding the foregoing, the Subordinated Parties agree that immediately
upon receipt by the Subordinated Agent of a Senior Agent Notice, and until such Senior Agent Notice has been terminated by the Senior
Agent in writing as provided herein, the Subordinated Parties shall not be permitted to accept or otherwise receive or retain directly
or indirectly from the Issuer or any subsidiary thereof any further Permitted Subordinated Debt Payments. If the Senior Agent has delivered
to the Subordinated Agent a Senior Agent Notice then upon such Senior Agent obtaining actual knowledge that all then existing Senior Debt
Defaults have been cured or waived in accordance with the terms of the applicable Senior Documents it shall deliver to the Subordinated
Agent a notice terminating such Senior Agent Notice. Upon delivery of any such termination notice, and subject to Section 2.3 hereof and
to the further rights of the Senior Agent to issue one or more Senior Agent Notices as contemplated hereby, this Agreement shall not prohibit
the Issuer from resuming Permitted Subordinated Debt Payments. Notwithstanding anything to the contrary herein, nothing in this Agreement
shall (1) impair, as between or among the Issuer and the Senior Agent (or any Senior Party represented by it), the covenants, undertakings
and obligations under the Senior Documents, or (2) be construed to constitute, or be deemed to be, as between or among the Issuer and
the Senior Agent (or any Senior Party represented by it), an amendment or modification, or a waiver by any such Senior Agent or any other
Senior Party, of the covenants, undertakings and obligations under the Senior Documents. For
the avoidance of doubt, nothing in this Agreement shall limit the right of any Subordinated Party that is also a Senior Holder from receiving
any payment under any Senior Note due to such Senior Holder at the times and in the amounts provided in such Senior Note and the Senior
Security Agreement (including, without limitation, Section 5.11(c) of the Senior Security Agreement) or from exercising any applicable
right of such Senior Holder thereunder. 

 

Notwithstanding
anything to the contrary in this Agreement or the Senior Documents, the Senior Indebtedness under the Existing Senior Notes and the Senior
Indebtedness under the Incremental Senior Notes shall be secured with the same priority under the Senior Security Agreement and the other
Senior Documents, except to the extent that the proceeds received by the Senior Agent thereunder shall be allocated as provided in Section
5.11(c) of the Senior Security Agreement. Pursuant to Section 5.11(c) of the Senior Security Agreement:

 

The
Senior Agent shall allocate proceeds received by the Senior Agent pursuant to the exercise of remedies under the Senior Documents or at
law or in equity (including without limitation with respect to any secured creditor remedies exercised against the Collateral and any
other collateral security provided for under any Security Documents) to the then outstanding Senior Indebtedness in the following order:

 

(i)            first,
to the Senior Agent to reimburse the costs and expenses (including attorney’s fees and expenses of any counsel to the Senior Agent)
incurred by the Senior Agent in the collection of such amounts under the Senior Documents, including, without limitation, any costs incurred
in connection with the sale or disposition of any Collateral, in such order as the Senior Agent shall elect until such Senior Indebtedness
is paid in full;

 

(ii)           second,
to the Senior Holders on a pro rata basis to pay the other Senior Indebtedness under the Existing Senior Notes and the Incremental Senior
Notes until an aggregate of $13,000,000 shall have been distributed pursuant to this clause (ii); provided, however, that solely for purposes
of determining the pro rata allocation of any distribution made under this clause (ii), (A) 10/13 of the amount of such distribution shall
be allocated to the Senior Indebtedness under the Existing Senior Notes and (B) 3/13 of such amount shall be allocated to the Senior Indebtedness
under the Incremental Senior Notes;

 

    9

     

    

 

(iii)          third,
to the Existing Senior Holders to pay any remaining Senior Indebtedness under the Existing Senior Notes until an aggregate of $5,000,000
shall have been distributed pursuant to this clause (iii);

 

(iv)          fourth,
to the Incremental Senior Holders to pay remaining Senior Indebtedness under the Incremental Senior Notes until an aggregate of $1,000,000
shall have been distributed pursuant to this clause (iv);

 

(v)           fifth,
if the Incremental Senior Holders have purchased an aggregate initial principal amount of Incremental Senior Notes in excess of $3,000,000,
to the Incremental Senior Holders to pay remaining Senior Indebtedness under the Incremental Senior Notes until an aggregate amount equal
to the amount of such excess shall have been distributed pursuant to this clause (v);

 

(vi)          sixth,
to the Senior Holders on a pro rata basis (based on the then outstanding amount under each Senior Note) to pay any remaining Senior Indebtedness
until all Senior Indebtedness is paid in full; and

 

(vii)         seventh,
to the applicable Grantors, their successors or assigns, or as court of competent jurisdiction may otherwise direct.

 

7.            
2.3     Proceedings. 

 

(a)           Each Subordinated Party and each of the parties hereto intend that this Agreement be enforceable in the event of any Proceeding with respect
to the Issuer or any subsidiary of the Issuer or otherwise under the Bankruptcy Code and all other applicable Debtor Relief Laws with
respect to the Issuer or any subsidiary of the Issuer. 

 

(b)           In the event of any Proceeding involving the Issuer or any subsidiary of the Issuer, each Subordinated Party agrees that: 

 

(i)            a
Discharge of Senior Obligations must first occur before any Distribution (whether in cash, securities or other property) shall be made
on account of or with respect to the Subordinated Indebtedness, including, without limitation, Permitted Subordinated Debt Payments;

 

(ii)           any
Distribution (whether in cash, securities or other property) described in the foregoing clause (i) which would otherwise, but for the
terms hereof, be payable or deliverable, shall be paid or delivered directly to the Senior Agent until the Discharge of Senior Obligations.
Such Subordinated Party irrevocably authorizes, empowers and directs all debtors, debtors-in-possession, receivers, trustees, liquidators,
custodians, conservators and other Persons having authority to effect all such payments and deliveries to the Senior Agent. Such Subordinated
Party also irrevocably authorizes, empowers and directs the Senior Agent (and their respective sub-agents, designees and/or representatives)
to demand, sue for, collect and receive any and all such Distributions; provided, that neither the Senior Agent nor any other Senior Party
shall have any obligation to do so;

 

(iii)          Such
Subordinated Party hereby irrevocably authorizes, empowers and appoints the Senior Agent its agent and attorney-in-fact to execute, verify,
deliver and file (but not vote) any proofs of claim in respect of the Subordinated Indebtedness upon the failure of such Subordinated
Party promptly to do so prior to 15 days before the expiration of the time to file any such proof of claim; provided, no Senior Agent
shall have any obligation to execute, verify, deliver and/or file any such proof of claim;

 

    10

     

    

 

(iv)          it
shall not consent to the use of Cash Collateral nor provide any DIP Financing or support any other Person in providing such DIP Financing,
unless the Senior Agent (in the Senior Agent’s sole discretion) shall have agreed to such use of Cash Collateral or DIP Financing;
and

 

(v)           it
shall execute and deliver to the Senior Agent (and their respective sub-agents, designees and/or representatives) all such further documents
and instruments reasonably requested by any Senior Agent (or any such sub-agents, designees or representatives) to confirm the authorizations
and other matters described above.

 

(c)           In
the event of any Proceeding involving the Issuer or any subsidiary of the Issuer, each Subordinated Party agrees that:

 

(i)            it
will not take (or support any Person in taking) any action, nor vote any proofs of claim, nor vote any plan of reorganization in any manner
contrary to the written direction of the Senior Agent or in any event that would have the effect of impairing or reducing the amount of
or the interest rate on or delaying the time of payment of the Senior Indebtedness or be inconsistent with the terms of this Agreement,
or take (or support any Person in taking) any action to: (1) without limiting Section 3.1 hereof, contest the validity, perfection, priority
or enforceability of any Senior Indebtedness, any Lien or security interest of any Senior Party in any Senior Debt Collateral or any guarantee
thereof; (2) contest the relative rights and duties of the Senior Parties with respect to any Senior Debt Collateral established in any
instruments or agreements creating or evidencing any of the Senior Indebtedness; or (3) contest, impair, reduce or adversely affect any
Subordinated Party’s obligations and agreements set forth in this Agreement;

 

(ii)           it will not support, endorse, file, propose, or sponsor, whether directly or indirectly, any plan of reorganization for the Issuer or
any subsidiary of the Issuer contrary to the written direction of the Senior Agent or that provides for or contemplates the impairment
of repayment of the Senior Indebtedness (or any portion thereof) unless the Senior Agent shall have consented thereto in writing (in each
such Senior Agent’s sole discretion);

 

(iii)          it
will not oppose or seek to challenge any claim by the Senior Agent or any other Senior Party for allowance in any Proceeding of Senior
ObligationsIndebtedness
consisting of Post-Petition Interest to the extent of the value of any Senior Party’s Lien on the Collateral, without regard to
the existence of the Liens of the Subordinated Parties on the Collateral; and

 

(iv)          it
shall execute and deliver to the Senior Agent (and their respective sub-agents, designees and/or representatives) all such further documents
and instruments reasonably requested by any Senior Agent (or any such sub-agents, designees or representatives) to confirm the authorizations
and other matters described above.

 

The Senior Indebtedness shall
continue to be treated as Senior Indebtedness hereunder and the provisions of this Agreement shall continue to govern the relative rights
and priorities of the Senior Agent and the Senior Parties, on the one hand, and the Subordinated Agent and the Subordinated Parties, on
the other hand, even if all or part of the Senior Indebtedness or any guarantee thereof or the security interests or Liens securing any
Senior Indebtedness are subordinated, set aside, avoided, invalidated or disallowed in connection with any such Proceeding (including,
without limitation, under Section 548(a) of the Bankruptcy Code or any applicable provision of any other Debtor Relief Law). This Agreement
shall be reinstated if at any time any payment of any of the Senior Indebtedness is rescinded or must otherwise be returned by any Senior
Agent or any other holder of Senior Indebtedness or any representative of such holder and the Senior Indebtedness, or portion thereof,
intended to have been satisfied shall be deemed to be reinstated and outstanding as if such payment had not occurred.

 

    11

     

    

 

(d)           Until
the Discharge of Senior Obligations, if the Issuer or any subsidiary of the Issuer shall be subject to any Proceeding and the Senior
Agent (or either of them) shall desire to permit the use of “Cash Collateral” (as such term is defined in Section 363(a)
of the Bankruptcy Code) (“Cash Collateral”) on which the Senior Agent (or either of them) or any other creditor has
a Lien or to permit the Issuer or any subsidiary of the Issuer to obtain financing, whether from the Senior Agent (or either of them)
or any other Person under Section 364 of the Bankruptcy Code or any similar Debtor Relief Law (“DIP Financing”), each
Subordinated Party agrees that it will raise no objection (or support any other Person objecting) to such Cash Collateral use or DIP
Financing and will not request adequate protection or any other relief in connection therewith. Each Subordinated Party further agrees
that, in connection with any such Proceeding, it shall not seek to provide DIP Financing other than on terms and conditions approved
by the Senior Agent (in Senior Agent’s sole discretion).

(e)           Each
Subordinated Party agrees that it shall not contest (or support any other Person contesting):

(i)            any
request by any Senior Agent or any other Senior Party for adequate protection with respect to the Issuer or any subsidiary of the Issuer;
or

 

(ii)           any
objection by any Senior Agent or any other Senior Party to any motion, relief, action or proceeding based on any Senior Party claiming
a lack of adequate protection with respect to the Issuer or any subsidiary of the Issuer.

 

(f)          Each
Subordinated Party agrees that it will not seek consultation rights in connection with, and it will not object to or oppose, a motion
to sell, liquidate or otherwise dispose of Collateral under Section 363 of the Bankruptcy Code if the requisite Senior Parties have consented
to such sale, liquidation or other disposition. Each Subordinated Party further agrees that it will not directly or indirectly oppose
or impede entry of any order in connection with such sale, liquidation or other disposition, including orders to retain professionals
or set bid procedures in connection with such sale, liquidation or disposition if the requisite Senior Parties have consented to (i) such
retention of professionals and bid procedures in connection with such sale, liquidation or disposition of such assets and (ii) the sale,
liquidation or disposition of such assets, in which event such Subordinated Party will be deemed to have consented to the sale or disposition
of Collateral pursuant to Section 363(f) of the Bankruptcy Code.

 

(g)           If
any Senior Party is required in any Proceeding or otherwise to turn over or otherwise pay to the estate of the Issuer or any subsidiary
of the Issuer any amount paid in respect of Senior ObligationsIndebtedness
(a “Recovery”), then such Senior Party shall be entitled to a reinstatement of its Senior ObligationsIndebtedness
with respect to all such recovered amounts on the date of such Recovery, and from and after the date of such reinstatement the Discharge
of Senior Obligations shall be deemed not to have occurred for all purposes hereunder. If this Agreement shall have been terminated prior
to such Recovery, this Agreement shall be reinstated in full force and effect, and such prior termination shall not diminish, release,
discharge, impair or otherwise affect the obligations of the parties hereto from such date of reinstatement. This Section 2.3(g) shall
survive termination of this Agreement.

 

    12

     

    

 

2.4           Restriction
on Actions by Subordinated Parties. (a) Until the Discharge of Senior Obligations, no Subordinated Party shall take any Enforcement
Action with respect to the Subordinated Indebtedness (other than to sue for payment of the Permitted Subordinated Debt Payments so long
as the Issuer was permitted to make such payments to the Subordinated Party pursuant to this Agreement and the Senior Documents) or the
Collateral.

 

(b)          No Subordinated Party
will contest, protest or object to any exercise of remedies (including, without limitation, remedies similar to those described in the
definition of Enforcement Action) or other foreclosure proceeding or action brought by the Senior Agent or any Senior Party or any other
exercise by the Senior Agent or any Senior Party of any rights and remedies relating to the Collateral under the Senior Documents or otherwise
and will not object to the forbearance by the Senior Agent or any Senior Party from bringing or pursuing any foreclosure proceeding or
action or any other exercise of any rights or remedies relating to the Collateral.

 

(c)           Notwithstanding
the foregoing, any Subordinated Party may (I) file proofs of claim against the Issuer in any Proceeding involving the Issuer, (II) file
a claim or statement of interest with respect to the Subordinated Indebtedness; provided that a Proceeding has been commenced by or against
the Issuer, (III) file any necessary responsive or defensive pleadings in opposition to any motion, claim, adversary proceeding or other
pleading made by any person objecting to or otherwise seeking the disallowance of the claims of any Subordinated Party, in each case in
accordance with the terms of this Agreement, (IV) vote on any plan of reorganization, file any proof of claim, make other filings and
make any arguments and motions that are, in each case, in accordance with the terms of this Agreement, with respect to the Subordinated
Debt and (V) bid for or purchase any assets at any public, private or judicial foreclosure or in connection with a Proceeding so long
as the cash portion of any such bid is sufficient to cause a Discharge of Senior Obligations.

 

(d)           Any Distribution (whether in cash, securities or other property) or proceeds thereof and all proceeds
of any Enforcement Action, or otherwise in respect of any Subordinated Indebtedness, and any Distribution pursuant to Section 2.2(b),
in each case, obtained, received or accepted by any Subordinated Party shall, except to the extent expressly permitted under Section 2.2,
in any event not be commingled with any of the assets or property of such Subordinated Party, shall be held in trust by it for the benefit
of the Senior Agent and the Senior Parties and shall promptly, until the Discharge of Senior Obligations, be paid or delivered or transferred
to the Senior Agent in the form received. In the event of the failure of any Subordinated Party to endorse or assign any Distribution
(whether in cash, securities or other property) or other proceeds, as applicable, the Senior Agent is hereby irrevocably authorized to
endorse or assign the same.

 

2.5           Amendments and Waivers.
Until the Discharge of Senior Obligations, and notwithstanding anything to the contrary contained in any of the Subordinated Documents,
(a) no Subordinated Party shall, without the prior written consent of the Senior Agent (in such Senior Agent’s sole discretion)
agree to any amendment, amendment and restatement, waiver, extension, renewal, replacement, refinancing, supplement or other modification
to any Subordinated Documents, and (b) notwithstanding the foregoing, in the event that the Senior Parties waive, or the Issuer and the
Senior Parties amend, any covenant, condition or other provision of any Senior Document, and there is a corresponding covenant, condition
or other provision in the Subordinated Documents, the Subordinated Parties shall waive, or the Issuer and the Subordinated Parties shall
amend, the Subordinated Documents in an identical fashion as in the Senior Documents.

 

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8.             2.6           Sale, Transfer or Other Disposition of Subordinated Indebtedness. (a) No Subordinated Party shall, without the consent
of the Senior Agent (which shall not be unreasonably withheld) sell, assign, pledge, dispose of or otherwise transfer (collectively, “Transfer”)
all or any portion of the Subordinated Indebtedness or any Subordinated Document and any such Transfer implemented without the Senior
Agent’s consent shall be void ab initio. To the extent that the Senior Agent provides its consent, such Transfer shall nonetheless
not become effective unless, prior to or concurrent with the consummation of any such Transfer, the transferor and transferee thereof
shall execute and deliver to the Senior Agent a joinder to this Agreement, or an agreement substantially identical to this Agreement,
in either case providing for the continued (in form and substance reasonably satisfactory to the Senior Agent) subordination and forbearance
of the Subordinated Indebtedness to the Senior Indebtedness as provided herein and for the continued effectiveness of all of the rights
of the Senior Agent and the Senior Parties arising under this Agreement. 

 

 

9.             (b)           Notwithstanding the foregoing and notwithstanding the failure to execute or deliver any such agreement as described in
clause (a) above, the subordination effected hereby shall survive any sale, assignment, pledge, disposition or other transfer of all or
any portion of the Subordinated Indebtedness (including any such in violation of the foregoing prohibition), and the terms of this Agreement
shall be binding upon the successors, assigns and other transferees of any Subordinated Party, as provided in Section 12.

 

10.           2.7           Legends.
Until the termination of this Agreement in accordance with Section 17, each Subordinated Party will cause to be clearly, conspicuously
and prominently inserted in theeach
Subordinated Note and each other Subordinated Document, as well as any renewals or replacements thereof, and each Subordinated
Party agrees that theeach
Subordinated Note and each other Subordinated Document is a party shall at all times contain in a conspicuous manner, the
following legend:

 

 

“THIS INSTRUMENT AND THE RIGHTS AND
OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH HEREIN AND IN THE INTERCREDITOR AGREEMENT, DATED
AS OF [_____]FEBRUARY 22,
2021 (AS AMENDED AND IN EFFECT FROM TIME TO TIME PURSUANT TO THE TERMS THEREOF,
THE “INTERCREDITOR AGREEMENT”), BY AND AMONG PARETEUM CORPORATION, A DELAWARE CORPORATION, [_____]HOVING
 & PARTNERS S.A. (TOGETHER WITH ITS SUCCESSORS AND ASSIGNS), IN ITS CAPACITY AS “SUBORDINATED AGENT” UNDER AND
AS DEFINED THEREIN (AS SUCCESSOR TO B.M.F. DE KROES-BRINKERS IN SUCH CAPACITY),
HIGH TRAIL INVESTMENTS SA LLC (TOGETHER WITH ITS SUCCESSORS AND ASSIGNS), IN ITS CAPACITY AS “SENIOR AGENT” UNDER AND AS DEFINED
THEREIN. THE HOLDER(S) OF THIS INSTRUMENT, BY ITS (THEIR) ACCEPTANCE HEREOF, IRREVOCABLY AND UNCONDITIONALLY AGREE(S) TO BE BOUND BY THE
PROVISIONS OF THE INTERCREDITOR AGREEMENT.”

 

11.           Liens.

 

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12.           3.1           Lien Priority. Notwithstanding the date, time, method, manner or order of grant, attachment or perfection of any Liens
on the Collateral and notwithstanding any provision of the UCC, or any other applicable law or the Subordinated Documents or any defect
or deficiencies in, or failure to perfect or lapse in perfection of, or avoidance as a fraudulent conveyance or otherwise of, the Liens
and security interests on the Collateral or any other circumstance whatsoever, whether or not any Proceeding has been commenced by or
against the Issuer or any other Person, each Subordinated Party hereby agrees that: 

 

(a)           the Liens on the
Collateral now or hereafter held by any Senior Agent, any other Senior Party or any agent or trustee therefor, regardless of how acquired,
whether by grant, possession, statute, operation of law, subrogation or otherwise, shall be and are hereby senior in all respects and
prior to any Lien on the Collateral securing any Subordinated Indebtedness and/or any Subordinated Indebtedness; and

 

(b)           any Lien on the
Collateral securing any Subordinated Indebtedness and/or any Subordinated Indebtedness now or hereafter held by any Subordinated Party
or any agent or trustee therefor, regardless of how acquired, whether by grant, possession, statute, operation of law, subrogation or
otherwise, shall be and are hereby junior and subordinate in all respects to all Liens on the Collateral securing any Senior Indebtedness.
All Liens on the Collateral securing any Senior Indebtedness shall be and remain senior in all respects and prior to all Liens on the
Collateral securing any Subordinated Indebtedness and/or any Subordinated Indebtedness for all purposes, whether or not such Liens on
the Collateral securing any Senior Indebtedness are subordinated to any Lien securing any other obligation of the Issuer or any other
Person.

 

3.2           Prohibition
on Contesting Liens. Each Subordinated Party agrees that it will not (and hereby waives any right to) contest or support any other
Person in contesting, in any proceeding (including any Proceeding), the priority, validity, perfection or enforceability of a Lien held,
or purported to be held, by any Senior Agent or any other Senior Party in the Senior Debt Collateral, or the provisions of this Agreement.
Until the Discharge of Senior Obligations, no Subordinated Party will assert any marshaling, appraisal or valuation right, or any other
right or remedy that may otherwise be available to a junior secured creditor or to an unsecured creditor.

 

3.3.          No New Liens.
So long as the Discharge of Senior Obligations has not occurred, whether or not any Proceeding has been commenced by or against the Issuer
or any subsidiary of the Issuer, neither the Issuer nor any subsidiary of the Issuer shall grant or permit any Liens on any asset or property
to secured any Subordinated Indebtedness unless it has granted or concurrently grants a Lien on such asset or property to secure the Senior
Indebtedness.

 

3.4           Releases.
If in connection with any exercise of the Senior Agent’s remedies prior to the Discharge of Senior Obligations, the Senior Agent,
for itself or on behalf of any other Senior Party, releases any of its Liens on any part of the Collateral or releases the Issuer or any
other Person from its obligations under its guaranty of the Senior Indebtedness, then the Liens, if any, of the Subordinated Parties on
such Collateral, and the obligations of such Person under its guaranty of the Subordinated Indebtedness, shall be automatically, unconditionally
and simultaneously released. If in connection with any exercise of rights and remedies by the Senior Agent, in each case prior to the
Discharge of Senior Obligations, the equity interests of any Person are foreclosed upon or otherwise disposed of and the Senior Agent
releases its Lien on the property or assets of such Person then the Liens of the Subordinated Parties with respect to the property or
assets of such Person will be automatically released to the same extent as the Liens of the Senior Agent. Each Subordinated Party promptly
shall execute and deliver to the Senior Agent such termination statements, releases and other documents as the Senior Agent may request
to effectively confirm the foregoing releases.

 

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3.5.         Possession
of Collateral. The Senior Agent shall have the exclusive right to possess Collateral and each Subordinated Party shall promptly remit
to the Senior Agent any Collateral that comes into its possession. The Senior Agent agrees to hold that part of the Collateral that is
in its possession or control (or in the possession or control of its agents or bailees) to the extent that possession or control thereof
is taken to perfect a Lien thereon under the UCC (such Collateral being the “Pledged Collateral”) as collateral agent
for the Senior Parties and as gratuitous bailee for the Subordinated Parties (such bailment being intended, among other things, to satisfy
the requirements of Sections 8-106(d)(3), 8-301(a)(2) and 9-313(c) of the UCC) and any assignee thereof solely for the purpose of perfecting
the security interest granted under the Senior Documents and the Subordinated Documents. The Senior Agent shall have no obligation whatsoever
to the Subordinated Parties to ensure that the Pledged Collateral is genuine or owned by any Person, to perfect the security interest
of the Subordinated Parties or to preserve rights or benefits of any Person. Neither the Senior Agent nor any other Senior Party shall
have a fiduciary relationship in respect of the Subordinated Parties and each Subordinated Party hereby waives and releases the Senior
Agent and the other Senior Parties from all claims and liabilities arising pursuant to the Senior Agent’s role under this Section
3.5 as gratuitous bailee with respect to the Pledged Collateral.

 

3.6           Reorganization
Securities. If, in any Proceeding, debt or equity securities of the Issuer or any other Person are distributed pursuant to a plan
of reorganization, arrangement, compromise or liquidation or similar dispositive restructuring plan on account of the Senior Indebtedness
and/or the Subordinated Indebtedness, then any such debt or equity securities distributed to the Senior Parties shall constitute Senior
Indebtedness hereunder and any such debt or equity securities distributed to the Subordinated Parties shall constitute Subordinated Indebtedness
hereunder, and the provisions of this Agreement will survive the distribution of such debt or equity securities pursuant to such plan
and will apply with like effect to such debt or equity securities.

 

13.           Representations and Warranties. The Subordinated Agent hereby represents and warrants to the Senior Agent that as of the
date hereof: (a) the Subordinated Agent is duly organized, validly existing and in good standing under the laws of its jurisdiction of
organization; (b) the Subordinated Agent has the power and authority to enter into, execute, deliver and carry out the terms of this Agreement,
all of which have been duly authorized by all proper and necessary action; (c) the execution of this Agreement by the Subordinated Agent
will not violate or conflict with the organizational documents of the Subordinated Agent, any material agreement binding upon the Subordinated
Agent or any law, regulation or order or require any consent or approval which has not been obtained; (d) this Agreement is the legal,
valid and binding obligation of the Subordinated Agent, enforceable against the Subordinated Agent in accordance with its terms, except
as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors’ rights generally and by equitable principles; (e) the Subordinated Agent has authority, pursuant to the terms of theeach
Subordinated Note, to execute and deliver this Agreement; and (f) the Subordinated Agent has the authority to bind each other Subordinated
Party to the terms of this Agreement.

 

14.           Continued Effectiveness of this Agreement; Modifications to Senior Indebtedness.

 

(a)           The
provisions of this Agreement shall be deemed a continuing offer to the Senior Agent and the other Senior Parties to act in reliance on
such provisions (but no such reliance shall be required to be proven to receive the benefits hereof) and may be enforced by the Senior
Agent and the other Senior Parties, and no right of the Senior Agent or any other Senior Party to enforce the subordination as provided
in this Agreement shall be prejudiced or impaired by any act or failure to act on the part of the Issuer or any other Person or by any
act or failure to act by any such holder, or by any non-compliance the Issuer or any other Person with the terms, provisions and covenants
of this Agreement, the Senior Note or any other Senior Document. The terms of this Agreement, the subordination effected hereby, and the
rights and the obligations of the Subordinated Parties and the Senior Parties arising hereunder, shall not be affected, modified or impaired
in any manner or to any extent by: (i) any amendment, waiver or modification of or supplement to any Senior Note or any other Senior Document
or any Subordinated Document (including, without limitation, any increase in the aggregate principal amount of any Senior Indebtedness,
any increase in the interest rate of the Senior Indebtedness and any extension in the payment date thereof); (ii) the validity or enforceability
of any of such documents; or (iii) any exercise or non-exercise of any right, power or remedy under or in respect of the Senior Indebtedness
or the Subordinated Indebtedness or any of the instruments or documents referred to in clause (i) above.

 

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(b)           The
Senior Agent and the other Senior Parties may at any time and from time to time, without the consent of or notice to any Subordinated
Party without incurring liability to any Subordinated Party and without impairing or releasing the obligations of the Subordinated Parties
under this Agreement, do any one or more of the following: (i) change the manner or place of payment or extend the time of payment of
or renew or alter any of the terms of, forbear or waive defaults under, the applicable Senior Indebtedness or any Lien on any Senior Debt
Collateral or guaranty thereof or any liability of the Issuer or any other Person, or any liability incurred directly or indirectly in
respect thereof, or otherwise amend, restate, amend and restate, supplement, waive or otherwise modify in any manner any applicable Senior
Document or any other agreement, note, guaranty or other instrument evidencing or securing or otherwise relating to the applicable Senior
Indebtedness (including to increase the amount thereof or the rate of interest or fees accruing thereon; (ii) sell, exchange, release,
surrender, realize upon, enforce or otherwise deal with in any manner and in any order any property pledged or mortgaged to secure or
otherwise securing Senior Indebtedness or any liability of the Issuer or any other Person to the Senior Agent and the other Senior Parties,
or any liability incurred directly or indirectly in respect thereof; (iii) settle or compromise any Senior Indebtedness or any other liability
of the Issuer or any other Person or any security therefor or any liability incurred directly or indirectly in respect thereof and apply
any sums by whomsoever paid and however realized to any liability (including the Senior Indebtedness) in any manner or order, or release
any Person liable in any manner for the payment or collection of Senior Indebtedness; and (iv) exercise or delay in or refrain from exercising
any right or remedy against the Issuer or any other Person, including any guarantor or surety, elect any remedy and otherwise deal freely
with the Issuer or any other Person or any Senior Debt Collateral and any security and any guarantor or any liability of the Issuer or
any other Person to the Senior Agent or any other Senior Party or any liability incurred directly or indirectly in respect thereof.

 

15.           Cumulative Rights, No Waivers. Each and every right, remedy and power granted to the Senior Agent hereunder shall be cumulative
and in addition to any other right, remedy or power specifically granted herein, in the Senior Note or the other Senior Documents or now
or hereafter existing in equity, at law, by virtue of statute or otherwise, and may be exercised by the applicable Senior Agent and the
other applicable Senior Parties, from time to time, concurrently or independently and as often and in such order as the applicable Senior
Agent may deem expedient. Any failure or delay on the part of the Senior Agent or any other Senior Party in exercising any such right,
remedy or power, or abandonment or discontinuance of steps to enforce the same, shall not operate as a waiver thereof or affect such Senior
Agent’s or other Senior Party’s right thereafter to exercise the same, and any single or partial exercise of any such right,
remedy or power shall not preclude any other or further exercise thereof or the exercise of any other right, remedy or power, and no such
failure, delay, abandonment or single or partial exercise of the Senior Agent’s or any other Senior Party’s rights hereunder
shall be deemed to establish a custom or course of dealing or performance among the parties hereto.

 

    17

     

    

 

16.           Subordinated Party’s Waivers. Each Subordinated Party expressly waives all notice of the acceptance by the Senior
Agent and the other Senior Parties of the subordination and other provisions of this Agreement and all the notices not specifically required
pursuant to the terms of this Agreement, whether in connection with foreclosure on or sale of assets or otherwise, whatsoever. Each Subordinated
Party acknowledges that none of the Senior Agent nor any other Senior Party has made any warranties or representations with respect to
the due execution, legality, validity, completeness or enforceability of the Senior Indebtedness or the Senior Note or the other Senior
Documents or the collectability of the Senior Indebtedness, or otherwise, that the Senior Agent and the other Senior Parties shall be
entitled to manage and supervise their respective financial arrangements with the Issuer or any other Person in accordance with their
respective usual practices, modified from time to time as they deem appropriate under the circumstances, without affecting the validity
or enforceability of this Agreement and without regard to the existence of any rights that any Subordinated Party may now or hereafter
have in or to any of the assets of the Issuer or any other Person, and that none of the Senior Agent nor any other Senior Party shall
have any liability to any Subordinated Party for, and each Subordinated Party waives any claim which it may now or hereafter have against,
any Senior Agent or any other Senior Party arising out of (a) any and all actions which any Senior Agent or any other Senior Party takes,
permits or omits to take (including, without limitation, actions or any failure to act with respect to the Senior Documents, the creation,
perfection or continuation of any lien or security interest in any existing or future Senior Debt Collateral, actions or any failure to
act with respect to the occurrence of a “Default” or an “Event of Default” under and as defined in the applicable
Senior Documents, actions or any failure to act with respect to the foreclosure upon, sale, liquidation, disposition, release, or depreciation
of, or failure to realize upon, any of the Senior Debt Collateral and actions or any failure to act with respect to the collection of
any claim for all or any part of the Senior Indebtedness from any account debtor, guarantor, obligor or any other party) or with respect
to the collection of the Senior Indebtedness or the valuation, use, protection, foreclosure, liquidation, release, sale and/or other disposition
of the Senior Debt Collateral, (b) any Senior Agent’s election, in any proceeding instituted under the Bankruptcy Code, of the application
of Section 1111(b)(2) of the Bankruptcy Code, and/or out of any cash collateral or financing arrangement or out of any grant of a security
interest in connection with the Senior Debt Collateral in any Proceeding or (c) any borrowing or grant of a security interest under Section
364 of the Bankruptcy Code by the Issuer or any other Person, as debtor in possession in any Proceeding.

 

Each Subordinated Party hereby
acknowledges and agrees that none of the Senior Agent nor any other Senior Party has any duty to them in respect of the maintenance or
preservation of the Senior Debt Collateral, the Senior Indebtedness or otherwise. Without limiting the generality of the foregoing, each
Subordinated Party waives the right to assert the doctrine of marshalling with respect to any of the Senior Debt Collateral, and consents
and agrees that the Senior Agent may proceed against any or all of the Senior Debt Collateral in such order as the Senior Agent shall
determine in their sole discretion.

 

17.           Modification. Any amendment, modification or waiver of any provision of this Agreement, or any consent to any departure
by any party hereto from the terms hereof, shall not be effective in any event unless the same is in writing and signed by the Senior
Agent and the Subordinated Agent, and then such amendment, modification, waiver or consent shall be effective only in the specific instance
and for the specific purpose given. Any notice to or demand on any party hereto in any event not specifically required hereunder shall
not entitle the party receiving such notice or demand to any other or further notice or demand in the same, similar or other circumstances
unless specifically required hereunder.

 

18.           Additional Documents and Actions. Each Subordinated Party at any time, and from time to time, after the execution and delivery
of this Agreement, upon the request of the Senior Agent and at the sole cost and expense of the Issuer, shall promptly execute and deliver
such further documents, instruments and agreements and do such further acts and things as such Senior Agent may request in order to effect
fully the purposes of this Agreement.

 

    18

     

    

 

19.           Notices. Unless otherwise specifically provided herein, all notices and other communications provided for hereunder shall
be in writing and shall be mailed, facsimiled or delivered to the following addresses:

 

	
    If to the Subordinated

    Agent:
	
    [_____]‌Channel
    Ventures Group, LLC

    [_____]

    [_____]

    c/o Becker,
    Glynn, Muffly, Chassin & Hosinski LLP

    299 Park
    Avenue, 16th Floor

    New York,
    NY 10171

    Attention: [_____]‌
    Eric D. Kuhn, Esq.

    Email Address:
    ‌EKuhn@beckerglynn.com

    Telephone:
    (212) 888-3033

    Facsimile:
    (212) 888-0255

     

    With a copy
    to: 

     

    Lexence
    N.V. advocaten & notarissen

    Postbus/P.O.
    box 75999

    1070 AZ
    Amsterdam, Nederland/The Netherlands

    Attention:
    Joost Kolkman

    Email Address: [_____] ‌j.kolkman@lexence.com

    Telephone: [_____]‌+31
    20 5736 766

    Facsimile:
    +31 20 5736 887

     

	
    If to the Issuer:

     
	
    Pareteum Corporation

    1185 Avenue of the Americas, 37th Floor

    New York, NY 10036

    Attention: Laura Thomas, Interim Chief Financial Officer

    Email: laura.thomas@pareteum.com

     

	If to the Senior Agent:	
    High Trail Investments SA LLC

    c/ High Trail Capital

    221 River Street, 9th Floor

    Hoboken, NJ 07030

	
     

     

     

     
	
    Attention: Eric Helenek

    Telephone: (917) 414-1733

    Facsimile: (917) 905-9799

    Email: eric@hightrailcap.com

 

or to any other address, as to any of the parties
hereto, as such party shall designate in a written notice to the other parties hereto. All notices sent pursuant to the terms of this
Section 10 shall be effective, (i) if mailed, when received or three days after deposited in the mails, postage prepaid, whichever occurs
first, (ii) if transmitted by facsimile, on the date of transmission if transmitted on a Business Day before 4:00 p.m. (New York time)
or otherwise on the next Business Day, (iii) if delivered in person, upon delivery, or (iv) if delivered by overnight courier one Business
Day after delivery to the courier, in each case, properly addressed.

 

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20.           Severability. In the event that any provision of this Agreement is deemed to be invalid, illegal or unenforceable by reason
of the operation of any law or by reason of the interpretation placed thereon by any court or governmental authority, the validity, legality
and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby, and the affected
provision shall be modified to the minimum extent permitted by law so as most fully to achieve the intention of this Agreement.

 

21.           Successors and Assigns. This Agreement shall inure to the benefit of the successors and assigns of the Senior Agent and
each other Senior Party and shall be binding upon the successors and assigns of the Subordinated Agent, each other Subordinated Party
and the Issuer. To the extent permitted under the applicable Senior Documents, the Senior Agent and the other Senior Parties may, from
time to time, without notice to any Subordinated Party, assign or transfer any or all of the Senior Indebtedness or any interest therein
to any Person and, notwithstanding any such assignment or transfer, or any subsequent assignment or transfer, the Senior Indebtedness
shall, subject to the terms hereof, be and remain Senior Indebtedness for purposes of this Agreement, and every permitted assignee or
transferee of any of the Senior Indebtedness or of any interest therein shall, to the extent of the interest of such permitted assignee
or transferee in the Senior Indebtedness, be entitled to rely upon and be the third party beneficiary of the subordination provided under
this Agreement and shall be entitled to enforce the terms and provisions hereof to the same extent as if such assignee or transferee were
initially a party hereto.

 

22.           Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. Delivery
of an executed counterpart of this Agreement by facsimile or other electronic transmission (in “pdf” or “tif”
format) shall be equally as effective as delivery of an original executed counterpart of this Agreement.

 

23.           Defines Rights of Creditors.

 

The provisions of this Agreement are
solely for the purpose of defining the relative rights of the Senior Agent and the Senior Parties, on the one hand, and the Subordinated
Agent and the Subordinated Parties, on the other hand, and shall not be deemed to create any rights or priorities in favor of any other
party, including, without limitation, the Issuer. Nothing in this Agreement shall (i) impair, as among the Issuer and any Senior Agent
(or Senior Party represented by it) and as between the Issuer and any Subordinated Agent (or Subordinated Party represented by it), the
obligation of the Issuer or any other Person with respect to the payment of the Senior Indebtedness or with respect to the payment of
the Subordinated Indebtedness in accordance with their respective terms and on the respective due dates therefor or (ii) affect the relative
rights of (A) the Senior Agent with respect to any other creditors of the Issuer or other Person or (B) the Subordinated Agent with respect
to any other creditors of the Issuer or other Person.

 

24.           Conflict. In the event of any conflict between any term, covenant, condition or other provision of this Agreement and any
term, covenant, condition or other provision of any of the Subordinated Documents, the provisions of this Agreement shall control and
govern.

 

25.           Headings. Section and subsection headings herein are included for convenience of reference only and shall not constitute
a part of this Agreement for any other purpose or affect the interpretation of any of the provisions hereof.

 

26.           Termination. This Agreement shall remain in full force and effect until the Discharge of Senior Obligations (but, for the
avoidance of doubt, subject to the reinstatement provisions hereof).

 

    20

     

    

 

27.           Effectiveness in Bankruptcy. The Issuer, the Subordinated Agent and the Senior Agent acknowledges and agrees that this Agreement
is a “subordination agreement” under Section 510(a) of the Bankruptcy Code, which will be effective before, during and after
the commencement of any Proceeding with respect to the Issuer or any other Person. All references in this Agreement to the Issuer or any
subsidiary thereof will include such Person as a debtor-in-possession and any receiver or trustee for such Person in any such Proceeding.

 

28.           APPLICABLE LAW. THIS AGREEMENT, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER, SHALL BE GOVERNED BY, AND CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

29.           CONSENT TO JURISDICTION; VENUE. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT SHALL BE BROUGHT IN THE
FEDERAL AND NEW YORK STATE COURTS LOCATED IN NEW YORK CITY, BOROUGH OF MANHATTAN (AND APPELLATE COURTS THEREOF), AND, BY EXECUTION AND
DELIVERY OF THIS AGREEMENT, THE SUBORDINATED AGENT, THE SENIOR AGENT, AND THE ISSUER HEREBY IRREVOCABLY ACCEPTS IN RESPECT OF ITS PROPERTY,
GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY SENIOR AGENT OR
ANY OTHER SENIOR PARTY TO SERVICE OF PROCESS IN ANY MANNER PERMITTED BY LAW. THE SENIOR AGENT, THE SUBORDINATED AGENT AND THE ISSUER HEREBY
EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE JURISDICTION
OR LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO IN THE FIRST SENTENCE OF THIS SECTION 20 AND ANY CLAIM
THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT THE SUBORDINATED AGENT OR THE ISSUER HAS OR HEREAFTER
MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR
TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, EACH SUCH PARTY HEREBY IRREVOCABLY WAIVES
SUCH IMMUNITY IN RESPECT OF ITS RIGHTS AND OBLIGATIONS UNDER THIS AGREEMENT.

 

30.           WAIVER OF RIGHT TO JURY TRIAL. THE SUBORDINATED AGENT, THE ISSUER AND THE SENIOR AGENT HEREBY WAIVES (TO THE EXTENT PERMITTED
BY APPLICABLE LAW) ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM (WHETHER SOUNDING IN TORT, CONTRACT OR
OTHERWISE) ARISING OUT OF, IN CONNECTION WITH OR RELATING TO, THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. THE SUBORDINATED
AGENT AND THE ISSUER HEREBY CERTIFIES THAT NO OFFICER, REPRESENTATIVE, AGENT OR ATTORNEY OF THE SENIOR AGENT OR ANY OTHER SENIOR PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE SENIOR AGENT OR ANY OTHER SENIOR PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT,
PROCEEDING OR COUNTERCLAIM, SEEK TO ENFORCE THE FOREGOING WAIVERS. THE SUBORDINATED AGENT AND THE ISSUER HEREBY ACKNOWLEDGES THAT THIS
PROVISION IS A MATERIAL INDUCEMENT FOR THE SENIOR AGENT ENTERING INTO THIS AGREEMENT.

 

    21

     

    

 

31.           Specific Performance. The Senior Agent and each other Senior Party may demand specific performance of this Agreement against
the Subordinated Parties and the Issuer. Each Subordinated Party and the Issuer hereby irrevocably waives any defense based on the adequacy
of a remedy at law and any other defense which might be asserted to bar the remedy of specific performance in any action which may be
brought by any Senior Agent or any other Senior Party.

 

32.           Obligations Hereunder Not Affected. All rights and interests of the Senior Agent and the other Senior Parties hereunder,
and all agreements and obligations of the Subordinated Parties and the Issuer hereunder, shall remain in full force and effect irrespective
of:

 

(a)           any lack of validity
or enforceability of any Senior Document;

 

(b)           any change in the
time, manner or place of payment of, or any other term of, all or any of the Senior Indebtedness, or any other amendment or waiver of
or any consent to departure from any of the documents evidencing or relating to the Senior Indebtedness;

 

(c)           any exchange, release
or non-perfection of any Senior Debt Collateral, or any release or amendment or waiver of or consent to departure from any guaranty or
Senior Document, for all or any of the Senior Indebtedness;

 

(d)           any failure of
any Senior Agent or any other Senior Party to assert any claim or to enforce any right or remedy against any other party hereto under
the provisions of this Agreement or any Senior Document;

 

(e)           any reduction,
limitation, impairment or termination of the Senior Indebtedness for any reason, including, without limitation, any claim of waiver, release,
surrender, alteration or compromise, and shall not be subject to (and Issuer and the Subordinated Parties hereby waive any right to or
claim of) any defense or set-off, offset, counterclaim, recoupment or termination whatsoever by reason of invalidity, illegality, nongenuineness,
irregularity, compromise, unenforceability of, or any other event or occurrence affecting, any Senior Indebtedness; and

 

(f)            any other circumstance
which might otherwise constitute a defense available to, or a discharge of, the Issuer or any other Person in respect of the Senior Indebtedness
or any portion thereof or any Subordinated Party in respect of this Agreement.

 

[Signature Pages Follow]

 

    22

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be executed and delivered as of the date first above written.

 

	 	PARETEUM CORPORATION, a Delaware corporation,
	 	as Issuer

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

 
	 	HIGH TRAIL INVESTMENTS SA LLC,
	 	as Senior Agent

 

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

	 	[______],
	 	CHANNEL VENTURES GROUP, LLC,
	 	a Delaware limited liability company
	 	as Subordinated Agent (as successor to each of Hoving & Partners S.A. and B.M.F De Kroes-Brinkers in such capacity)
	 	 
	 	by its sole Member, Channel Beheer Management B.V., 
	 	a Dutch private limited liability company
	 	 
	 	by its Statutory Director, Maring Management B.V.,

                                                                                a Dutch private limited liability company

 

	 	By:	 	__________
	 	Name:	Markwin Maring
	 	Title:	Statutory
DirectorDocument

SUBORDINATED NOTE PURCHASE AGREEMENT

    This SUBORDINATED NOTE PURCHASE AGREEMENT (this “Agreement”) is dated as of December 9, 2021, and is made by and among CB Financial Services, Inc., a Pennsylvania corporation (the “Company”), and the several purchasers of the Subordinated Notes (as defined herein) identified on the signature pages hereto (each a “Purchaser” and collectively, the “Purchasers”). 

RECITALS

    WHEREAS, the Company is offering up to $15,000,000 million in aggregate principal amount of Subordinated Notes, which aggregate principal amount is intended to qualify as Tier 2 Capital (as defined herein); 

    WHEREAS, the Company has engaged D.A. Davidson & Co. as its exclusive placement agent (the “Placement Agent”) for the offering of the Subordinated Notes; 

    WHEREAS, each of the Purchasers is an institutional “accredited investor” as such term is defined in Rule 501 of Regulation D (“Regulation D”) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), or a “qualified institutional buyer” as such term is defined in Rule 144A of Regulation D promulgated under the Securities Act (“QIB”); 

    WHEREAS, the offer and sale of the Subordinated Notes by the Company is being made in reliance upon the exemptions from registration available under Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D promulgated under the Securities Act; and

    WHEREAS, each Purchaser is willing to purchase from the Company a Subordinated Note in the principal amount set forth on such Purchaser’s respective signature page hereto (the “Subordinated Note Amount”) in accordance with the terms, subject to the conditions and in reliance on, the recitals, representations, warranties, covenants and agreements set forth herein and in the Subordinated Notes. 

    NOW, THEREFORE, in consideration of the mutual covenants, conditions and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties, intending to be legally bound, hereto hereby agree as follows: 

AGREEMENT

1.    DEFINITIONS. 

    1.1.    Defined Terms. The following capitalized terms used in this Agreement and in the Subordinated Notes have the meanings defined or referenced below. Certain other capitalized terms used only in specific sections of this Agreement may be defined in such sections. 

    “Affiliate(s)” means, with respect to any Person, such Person’s immediate family members, partners, members or parent and subsidiary corporations, and any other Person directly or indirectly controlling, controlled by, or under common control with such Person and their respective Affiliates. 

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

    “Articles of Incorporation” means the Articles of Incorporation of the Company as in effect on the Closing Date. 

    “Bank” means Community Bank, a Pennsylvania bank and wholly-owned subsidiary of the Company. 

    “Business Day” means any day other than a Saturday, Sunday or any other day on which banking institutions in the Commonwealth of Pennsylvania are permitted or required by any applicable law or executive order to close. 

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    “Bylaws” means the Bylaws of the Company as in effect on the Closing Date. 

    “Closing” has the meaning set forth in Section 2.5. 

    “Closing Date” means December 9, 2021. 

    “Company” has the meaning set forth in the preamble hereto and shall include any successors to the Company. 

    “Company Covered Person” has the meaning set forth in Section 4.3(d). 

    “Company’s Reports” means (a) audited consolidated financial statements of the Company for the year ended December 31, 2020; (b) unaudited consolidated financial statements of the Company for the period ended September 30, 2021 and (c) the Company’s reports for the periods ended September 30, 2021 and December 31, 2020 as filed with the Federal Reserve as required by regulations of the Federal Reserve. 

    “Disbursements” has the meaning set forth in Section 3.1. 

    “Disqualification Event” has the meaning set forth in Section 4.3(d). 

    “DTC” has the meaning set forth in Section 3.1. 

“Equity Interest” means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person that is not a corporation, and any and all warrants, options or other rights to purchase any of the foregoing. 

    “Event of Default” has the meaning set forth in the Subordinated Notes. 

    “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

    “FDIC” means the Federal Deposit Insurance Corporation. 

    “Federal Reserve” means the Board of Governors of the Federal Reserve System. 

    “GAAP” means generally accepted accounting principles in effect from time to time in the United States of America. 

    “Global Certificate” has the meaning set forth in Section 3.1. 

“Governmental Agency(ies)” means, individually or collectively, any federal, state, county or local governmental department, commission, board, regulatory authority or agency (including, without limitation, each applicable Regulatory Agency) with jurisdiction over the Company or a Subsidiary. 

    “Governmental Licenses” has the meaning set forth in Section 4.4. 

    “Hazardous Materials” means flammable explosives, asbestos, urea formaldehyde insulation, polychlorinated biphenyls, radioactive materials, hazardous wastes, toxic or contaminated substances or similar materials, including, without limitation, any substances that are “hazardous substances,” “hazardous wastes,” “hazardous materials” or “toxic substances” under the Hazardous Materials Laws and/or other applicable environmental laws, ordinances or regulations. 

    “Hazardous Materials Laws” mean any laws, regulations, permits, licenses or requirements pertaining to the protection, preservation, conservation or regulation of the environment that relate to real property, including: the Clean Air Act, as amended, 42 U.S.C. Section 7401 et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. Section 1251 et seq.; the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Section 6901 et seq.; the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (including the Superfund Amendments and Reauthorization Act of 1986), 42 U.S.C. Section 9601 et seq.; the Toxic Substances Control Act, as 
2

amended, 15 U.S.C. Section 2601 et seq.; the Occupational Safety and Health Act, as amended, 29 U.S.C. Section 651 et seq.; the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.; the Mine Safety and Health Act of 1977, as amended, 30 U.S.C. Section 801 et seq.; the Safe Drinking Water Act, 42 U.S.C. Section 300f et seq.; and all comparable state and local laws, laws of other jurisdictions or orders and regulations. 

    “Indebtedness” means: (a) all items arising from the borrowing of money that, according to GAAP as in effect from time to time, would be included in determining total liabilities as shown on the consolidated balance sheet of the Company; and (b) all obligations for indebtedness secured by any lien in property owned by the Company or any Subsidiary whether or not such obligations shall have been assumed; provided, however, Indebtedness shall not include deposits or other indebtedness created, incurred or maintained in the ordinary course of the Company’s or the Bank’s business (including, without limitation, federal funds purchased, advances from any Federal Home Loan Bank, secured deposits of municipalities, letters of credit issued by the Company or the Bank and repurchase arrangements) and consistent with customary banking practices and applicable laws and regulations. 

    “Leases” means all leases, licenses or other documents providing for the use or occupancy of any portion of any Property, including all amendments, extensions, renewals, supplements, modifications, sublets and assignments thereof and all separate letters or separate agreements relating thereto. 

    “Material Adverse Effect” means, with respect to any Person, any change or effect that (a) is or would be reasonably likely to be material and adverse to the financial condition, results of operations or business of such Person, or (b) would materially impair the ability of such Person to perform its respective obligations under any of the Transaction Documents, or otherwise materially impede the consummation of the transactions contemplated hereby; provided, however, that “Material Adverse Effect” shall not be deemed to include the impact of (i) changes in banking and similar laws, rules or regulations of general applicability or interpretations thereof by Governmental Agencies, (ii) changes in GAAP or regulatory accounting requirements applicable to financial institutions and their holding companies generally, (iii) changes after the date of this Agreement in general economic or capital market conditions affecting financial institutions or their market prices generally and not specifically related to the Company, the Bank or the Purchasers, including change in interest rates, (iv) direct effects of compliance with this Agreement on the operating performance of the Company, the Bank or the Purchasers, including expenses incurred by the Company, the Bank or the Purchasers in consummating the transactions contemplated by this Agreement, (v) natural disasters or other force majeure events or any epidemic, pandemic or disease outbreak (including COVID-19), (vi) changes in national or international political or social conditions, including the engagement by the United States in hostilities, whether or not pursuant to the declaration of a national emergency or war, or by the occurrence of any military or terrorist attack upon or within the United States and (vii) the effects of any action or omission taken by the Company with the prior written consent of the Purchasers, and vice versa, which in the event of (i), (iii), (v), and (vi) do not disproportionately affect the operations or business of the Company or the Bank in comparison to other banking institutions with similar operations. 

    “Maturity Date” means December 15, 2031.

    “Paying Agency Agreement” means the Paying Agency and Registrar Agreement, dated as of December 9, 2021, between the Company and Computershare Trust Company, N.A., as paying agent and registrar, as amended, modified or restated from time to time.

    “Paying Agent” means Computershare Trust Company, N.A., as paying agent and registrar under the Paying Agency Agreement, or any successor in accordance with the applicable provisions of the Paying Agency Agreement.

    “Person” means an individual, a corporation (whether or not for profit), a partnership, a limited liability company, a joint venture, an association, a trust, an unincorporated organization, a government or any department or agency thereof (including a Governmental Agency) or any other entity or organization. 

    “Placement Agent” has the meaning set forth in the Recitals. 

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    “Property” means any real property owned or leased by the Company or any Affiliate or Subsidiary of the Company. 

    “Purchaser” or “Purchasers” has the meaning set forth in the preamble hereto. 

    “QIB” has the meaning set forth in the Recitals. 

    “Regulation D” has the meaning set forth in the Recitals. 

    “Regulatory Agency” means any federal or state agency charged with the supervision or regulation of depository institutions or holding companies of depository institutions, or engaged in the insurance of depository institution deposits, or any court, administrative agency or commission or other authority, body or agency having supervisory or regulatory authority with respect to the Company, the Bank or any of their Subsidiaries. 

    “Secondary Market Transaction” has the meaning set forth in Section 5.5. 

    “Securities Act” has the meaning set forth in the Recitals. 

    “Subordinated Note” means the Subordinated Note (or collectively, the “Subordinated Notes”) in the form attached as Exhibit A hereto, as amended, restated, supplemented or modified from time to time, and each Subordinated Note delivered in substitution or exchange for such Subordinated Note. 

    “Subordinated Note Amount” has the meaning set forth in the Recitals. 

    “Subsidiary” means with respect to any Person, any corporation or entity in which a majority of the outstanding Equity Interest is directly or indirectly owned by such Person. 

    “Tier 2 Capital” has the meaning given to the term “Tier 2 capital” in 12 C.F.R. Part 217, as amended, modified and supplemented and in effect from time to time or any replacement thereof. 

    “Tier 2 Capital Event” has the meaning set forth in the Subordinated Notes.

    “Transaction Documents” has the meaning set forth in Section 3.2(a). 

    1.2.    Interpretations. The foregoing definitions are equally applicable to both the singular and plural forms of the terms defined. The words “hereof,” “herein” and “hereunder” and words of like import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The word “including” when used in this Agreement without the phrase “without limitation,” shall mean “including, without limitation.” All references to time of day herein are references to Eastern Time unless otherwise specifically provided. All references to this Agreement and Subordinated Notes or the Paying Agency Agreement shall be deemed to be to such documents as amended, modified or restated from time to time. With respect to any reference in this Agreement to any defined term, (i) if such defined term refers to a Person, then it shall also mean all heirs, legal representatives and permitted successors and assigns of such Person, and (ii) if such defined term refers to a document, instrument or agreement, then it shall also include any amendment, replacement, extension or other modification thereof. 

    1.3.    Exhibits Incorporated. All Exhibits attached are hereby incorporated into this Agreement. 

2.     SUBORDINATED DEBT. 

    2.1.    Certain Terms. Subject to the terms and conditions herein contained, the Company proposes to issue and sell to the Purchasers, severally and not jointly, Subordinated Notes in an aggregate principal amount equal to the aggregate of the Subordinated Note Amounts. The Purchasers, severally and not jointly, each agree to purchase the Subordinated Notes from the Company on the Closing Date in accordance with the terms of, and subject to the conditions and provisions set forth in, this Agreement and the Subordinated Notes and the Paying Agency Agreement. The Subordinated Note Amounts shall be 
4

disbursed in accordance with Section 3.1.  The Subordinated Notes shall bear interest per annum as set forth in the Subordinated Notes. The unpaid principal balance of the Subordinated Notes plus all accrued but unpaid interest thereon shall be due and payable on the Maturity Date, or such earlier date on which such amount shall become due and payable on account of (a) acceleration by the Purchasers in accordance with the terms of the Subordinated Notes and this Agreement or (b) the Company’s delivery of a notice of redemption or repayment in accordance with the terms of the Subordinated Notes. Any partial redemption of the Subordinated Notes shall be made on a pro rata pass-through distribution of principal among all of the Subordinated Notes outstanding at the time thereof. 

    2.2.    Subordination. The Subordinated Notes shall be subordinated in accordance with the subordination provisions set forth therein. 

    2.3.    Maturity Date. On the Maturity Date, all sums due and owing under this Agreement and the Subordinated Notes shall be repaid in full. The Company acknowledges and agrees that the Purchasers have not made any commitments, either express or implied, to extend the terms of the Subordinated Notes past their Maturity Date, and shall not extend such terms beyond the Maturity Date unless the Company and the Purchasers hereafter specifically otherwise agree in writing. 

    2.4.    Unsecured Obligations. The obligations of the Company to the Purchasers under the Subordinated Notes shall be unsecured and not covered by a guarantee of the Company or an Affiliate of the Company. 

    2.5.    The Closing. The closing of the sale and purchase of the Subordinated Notes (the “Closing”) shall occur at the offices of the Company at 10:00 a.m. (local time) on the Closing Date, or at such other place or time or on such other date as the parties hereto may agree. 

    2.6.    Payments. The Company agrees that matters concerning payments and application of payments shall be as set forth in this Agreement and in the Subordinated Notes. 

    2.7.    Right of Offset. Each Purchaser hereby expressly waives any right of offset it may have against the Company or any of its Subsidiaries. 

    2.8.    Use of Proceeds. The Company shall use the net proceeds from the sale of the Subordinated Notes for general corporate purposes, which may include the repurchase of outstanding shares of the common stock of the Company.

3.     DISBURSEMENT. 

    3.1.    Disbursement. On the Closing Date, assuming all of the terms and conditions set forth in Section 3.2 and Section 3.3 have been satisfied by the Company and the Company has executed and delivered to each of the Purchasers this Agreement and such Purchaser’s Subordinated Note and any other related documents in form and substance reasonably satisfactory to the Purchasers, each Purchaser shall disburse in immediately available funds the Subordinated Note Amount set forth on each Purchaser’s respective signature page hereto to the Company in exchange for an electronic securities entitlement through the facilities of the Depository Trust Company (“DTC”) with a principal amount equal to such Subordinated Note Amount (the “Disbursement”). The Company will deliver to the Paying Agent a global certificate (the “Global Certificate”) representing the Subordinated Notes registered in the name of “Cede & Co.” as nominee for DTC.  

    3.2.    Conditions to the Purchasers’ Obligation. The obligation of each Purchaser to consummate the purchase of the Subordinated Notes to be purchased by them at Closing and to effect the Disbursement is subject to delivery by or at the direction of the Company to such Purchaser each of the following (or written waiver by such Purchaser before the Closing of such delivery): 

        (a)    Transaction Documents. This Agreement and the Global Certificate (collectively, the “Transaction Documents”), each duly authorized and executed by the Company. 

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        (b)    Authority Documents. 

            (i)    A copy, certified by the Secretary or Assistant Secretary of the Company, of the Articles of Incorporation of the Company and all amendments thereto as in effect as of the Closing Date; 

            (ii)    A certificate of existence of the Company issued by the Secretary of the Commonwealth of Pennsylvania; 

            (iii)     A copy, certified by the Secretary or Assistant Secretary, of the Bylaws of the Company and all amendments thereto as in effect as of the Closing Date; 

            (iv)    A copy, certified by the Secretary or Assistant Secretary of the Company, of the resolutions of the board of directors of the Company, and any committee thereof, authorizing the issuance of the Subordinated Notes and the execution, delivery and performance of the Transaction Documents; 

            (v)    An incumbency certificate of the Secretary or Assistant Secretary of the Company certifying the names of the officer or officers of the Company authorized to sign the Transaction Documents and the other documents provided for in this Agreement; and 

            (vi)    The opinion of Luse Gorman, PC, counsel to the Company, dated as of the Closing Date, substantially in the form set forth at Exhibit B attached hereto addressed to the Purchasers and Placement Agent. 

    (c)    Other Documents. Such other certificates, affidavits, schedules, resolutions, notes and/or other documents that are provided for hereunder or as a Purchaser may reasonably request. 

    (d)     Aggregate Investments. Before or contemporaneously with the Closing, each Purchaser shall have actually subscribed for the Subordinated Note Amount set forth on such Purchaser’s signature page. 

    3.3.    Conditions to the Company’s Obligation. With respect to a given Purchaser, the obligation of the Company to consummate the sale of the Subordinated Notes and to effect the Closing is subject to delivery by or at the direction of such Purchaser to the Company of this Agreement, duly authorized and executed by such Purchaser, and the Company’s receipt of the Subordinated Note Amount set forth on such Purchaser’s signature page. 

    4.    REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

    The Company hereby represents and warrants to each Purchaser as follows: 

    4.1.    Organization and Authority. 

        (a)    The Company is a duly organized corporation, is validly existing and in good standing under the laws of the Commonwealth of Pennsylvania and has all requisite corporate power and authority to conduct its business and activities as presently conducted, to own its properties, and to perform its obligations under the Transaction Documents. The Company is duly qualified as a foreign corporation to transact business and is in good standing in each other jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where the failure so to qualify or to be in good standing would not result in a Material Adverse Effect. The Company is duly registered as a bank holding company under the Bank Holding Company Act of 1956, as amended.

        (b)    The Bank is the only direct Subsidiary of the Company. The Bank has been duly chartered and is validly existing as a Pennsylvania state-chartered bank, in good standing under the laws of the jurisdiction of its incorporation, has corporate power and authority to own, lease and operate its properties and to conduct its business and is duly qualified as a foreign corporation to transact business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of 
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the ownership or leasing of property or the conduct of business, except where the failure so to qualify or to be in good standing would not reasonably be expected to result in a Material Adverse Effect. All of the issued and outstanding shares of capital stock or other Equity Interests in each Subsidiary of the Company have been duly authorized and validly issued, are fully paid and non-assessable and are owned by the Company, directly or through a Subsidiary of the Company, free and clear of any security interest, mortgage, pledge, lien, encumbrance or claim; none of the outstanding shares of capital stock of, or other Equity Interests in, any Subsidiary of the Company were issued in violation of the preemptive or similar rights of any security holder of such Subsidiary of the Company or any other entity. 

        (c)    The deposit accounts of the Bank are insured by the FDIC up to applicable limits. The Bank has not received any notice or other information indicating that the Bank is not an “insured depository institution” as defined in 12 U.S.C. Section 1813, nor has any event occurred that could reasonably be expected to adversely affect the status of the Bank as an FDIC-insured institution. 

    4.2.    Capital Stock and Related Matters. The Articles of Incorporation of the Company authorizes the Company to issue 35,000,000 shares of common stock, par value $0.4167 per share, and 5,000,000 shares of preferred stock, no par value per share. As of November 30, 2021, there were 5,282,853 shares of the Company’s common stock issued and outstanding and no shares of the Company’s preferred stock issued and outstanding. All of the outstanding capital stock of the Company has been duly authorized and validly issued and is fully paid and non-assessable. There are, as of the date hereof, no outstanding options, rights, warrants or other agreements or instruments obligating the Company to issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of the capital stock of the Company or obligating the Company to grant, extend or enter into any such agreement or commitment to any Person other than the Company except pursuant to the Company’s equity incentive plans duly adopted by the Company’s Board of Directors. 

    4.3.    No Impediment to Transactions. 

        (a)    Transaction is Legal and Authorized. The issuance of the Subordinated Notes, the execution of the Transaction Documents and the compliance by the Company with all of the provisions of the Transaction Documents are within the corporate and other powers of the Company. 

        (b)    Agreement. This Agreement has been duly authorized, executed and delivered by the Company, and, assuming due authorization, execution and delivery by the other parties hereto, constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors’ rights generally or by general equitable principles. 

        (c)    Subordinated Notes. The Subordinated Notes have been duly authorized by the Company and when executed by the Company and issued, delivered to and paid for by the Purchasers in accordance with the terms of the Agreement will have been duly executed, authenticated, issued and delivered, and will constitute the legal, valid and binding obligations of the Company and enforceable in accordance with their terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors’ rights generally or by general equitable principles. 

        (d)    Exemption from Registration. Neither the Company, nor any of its Subsidiaries or Affiliates, nor to the Company’s knowledge, any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Subordinated Notes. Assuming the accuracy of the representations and warranties of each Purchaser set forth in this Agreement, the Subordinated Notes will be issued in a transaction exempt from the registration requirements of the Securities Act. No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of Regulation D (a “Disqualification Event”) is applicable to the Company or, to the Company’s knowledge, any Person described in Rule 506(d)(1) (each, a “Company Covered Person”). The Company has exercised reasonable care to determine whether any Company Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e) of Regulation D. 
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        (e)    No Defaults or Restrictions. Neither the execution and delivery of the Transaction Documents nor compliance with their respective terms and conditions will (whether with or without the giving of notice or lapse of time or both) (i) violate, conflict with or result in a breach of, or constitute a default under: (A) the Articles of Incorporation or Bylaws of the Company; (B) any of the terms, obligations, covenants, conditions or provisions of any corporate restriction or of any contract, agreement, indenture, mortgage, deed of trust, pledge, bank loan or credit agreement, or any other agreement or instrument to which the Company or Bank, as applicable, is now a party or by which it or any of its properties may be bound or affected; (C) any judgment, order, writ, injunction, decree or demand of any court, arbitrator, grand jury, or Governmental Agency applicable to the Company or the Bank; or (D) any statute, rule or regulation applicable to the Company, except, in the case of items (B), (C) or (D), for such violations and conflicts that would not, singularly or in the aggregate, result in a Material Adverse Effect on the Company and its Subsidiaries taken as a whole, or (ii) result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any property or asset of the Company. Neither the Company nor the Bank is in default in the performance, observance or fulfillment of any of the terms, obligations, covenants, conditions or provisions contained in any indenture or other agreement creating, evidencing or securing Indebtedness of any kind or pursuant to which any such Indebtedness is issued, or any other agreement or instrument to which the Company or the Bank, as applicable, is a party or by which the Company or the Bank, as applicable, or any of its properties may be bound or affected, except, in each case, for defaults that would not, singularly or in the aggregate, result in a Material Adverse Effect on the Company. 

        (f)    Governmental Consent. No governmental orders, permissions, consents, approvals or authorizations are required to be obtained by the Company that have not been obtained, and no registrations or declarations are required to be filed by the Company that have not been filed in connection with, or, in contemplation of, the execution and delivery of, and performance under, the Transaction Documents, except for such consents, approvals, authorizations, orders or qualifications that have already been obtained or made, those that are required or permitted to be made or obtained after the date hereof and except for applicable requirements, if any, of the Securities Act, the Exchange Act or state securities laws or “blue sky” laws of the various states and any applicable federal or state banking laws and regulations. 

    4.4.    Possession of Licenses and Permits. The Company and its Subsidiaries possess such permits, licenses, approvals, consents and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate Governmental Agencies necessary to conduct the business now operated by them, except where the failure to possess such Governmental Licenses would not, singularly or in the aggregate, have a Material Adverse Effect on the Company or such applicable Subsidiary; the Company and each Subsidiary of the Company is in compliance with the terms and conditions of all such Governmental Licenses, except where the failure so to comply would not, individually or in the aggregate, have a Material Adverse Effect on the Company or such applicable Subsidiary of the Company; all of the Governmental Licenses are valid and in full force and effect, except where the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not have a Material Adverse Effect on the Company or such applicable Subsidiary of the Company; and neither the Company nor any Subsidiary of the Company has received any notice of proceedings relating to the revocation or modification of any such Governmental Licenses. 

    4.5.     Financial Condition. 

        (a)    Company Financial Statements. The financial statements included in the Company’s Reports (including the related notes, where applicable), which have been provided to the Purchasers (i) have been prepared from, and are in accordance with, the books and records of the Company or the Bank, as applicable; (ii) fairly present in all material respects the results of operations, cash flows, changes in stockholders’ equity and financial position of the Company and its consolidated subsidiaries for the respective fiscal periods or as of the respective dates therein set forth (subject in the case of unaudited statements to recurring year-end audit adjustments normal in nature and amount), as applicable; (iii) complied as to form, as of their respective dates of filing in all material respects with applicable accounting and banking requirements as applicable, with respect thereto; and (iv) have been prepared in accordance with GAAP consistently applied during the periods involved, except, in each case, (x) as indicated in such statements or in the notes thereto, (y) for any statement therein or omission 
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therefrom that was corrected, amended, or supplemented or otherwise disclosed or updated in a subsequent Company’s Report, and (z) to the extent that any unaudited interim financial statements do not contain the footnotes required by GAAP, and were or are subject to normal and recurring year-end adjustments, which were not or are not expected to be material in amount, either individually or in the aggregate. The books and records of the Company have been, and are being, maintained in all material respects in accordance with GAAP and any other applicable legal and accounting requirements. The Company does not have any material liability of any nature whatsoever (whether absolute, accrued, contingent or otherwise and whether due or to become due), except for those liabilities that are reflected or reserved against on the consolidated balance sheet of the Company contained in the Company’s Reports for the Company’s most recently completed quarterly or annual fiscal period, as applicable, and for liabilities incurred in the ordinary course of business consistent with past practice or in connection with this Agreement and the transactions contemplated hereby. 

        (b)     Absence of Default. Since December 31, 2020, no event has occurred that either of itself or with the lapse of time or the giving of notice or both, would give any creditor of the Company the right to accelerate the maturity of any material Indebtedness of the Company. Neither the Company nor the Bank is in default under any other Lease, agreement or instrument, or any law, rule, regulation, order, writ, injunction, decree, determination or award, except where non-compliance could not reasonably be expected to result in a Material Adverse Effect on the Company. 

        (c)    Solvency. After giving effect to the consummation of the transactions contemplated by this Agreement, the Company has capital sufficient to carry on its business and transactions and is solvent and able to pay its debts as they mature. No transfer of property is being made and no Indebtedness is being incurred in connection with the transactions contemplated by this Agreement with the intent to hinder, delay or defraud either present or future creditors of the Company or any Subsidiary of the Company. 

        (d)    Ownership of Property. The Company and each of its Subsidiaries has good and marketable title as to all real property owned by it and good title to all assets and properties owned by the Company and such Subsidiary in the conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the most recent balance sheet contained in the Company’s Reports or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheet), subject to no encumbrances, liens, mortgages, security interests or pledges, except (i) those items that secure liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the Federal Home Loan Bank, inter-bank credit facilities, reverse repurchase agreements or any transaction by the Bank acting in a fiduciary capacity, (ii) statutory liens for amounts not yet delinquent or that are being contested in good faith and (iii) those that would not, individually or in the aggregate, result in a Material Adverse Effect on the Company and its Subsidiaries taken as a whole. The Company and each of its Subsidiaries, as lessee, has the right under valid and existing Leases of real and personal properties that are material to the Company or such Subsidiary, as applicable, in the conduct of its business to occupy or use all such properties as presently occupied and used by it. Such existing Leases and commitments to Lease constitute or will constitute operating Leases for both tax and financial accounting purposes except as otherwise disclosed in the Company’s Reports and the Lease expense and minimum rental commitments with respect to such Leases and Lease commitments are as disclosed in all material respects in the Company’s Reports. 

    4.6.     No Material Adverse Change. Since December 31, 2020, there has been no development or event which has had or would have a Material Adverse Effect on the Company or any of its Subsidiaries. 

    4.7.     Legal Matters. 

        (a)    Compliance with Law. The Company and each of its Subsidiaries (i) has complied with and (ii) to the Company’s knowledge, is not under investigation with respect to, and, to the Company’s knowledge, has not been threatened to be charged with or given any notice of any material violation of any applicable statutes, rules, regulations, orders and restrictions of any domestic or foreign government, or any instrumentality or agency thereof, having jurisdiction over the conduct of its business or the ownership of its properties, except where any such failure to comply or violation would not have a 
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Material Adverse Effect on the Company and its Subsidiaries taken as a whole. The Company and each of its Subsidiaries is in compliance with, and at all times before the date hereof has been in compliance with, (x) all statutes, rules, regulations, orders and restrictions of any domestic or foreign government, or any Governmental Agency, applicable to it, and (y) its own privacy policies and written commitments to customers, consumers and employees, concerning data protection, the privacy and security of personal data, and the nonpublic personal information of its customers, consumers and employees, in each case except where any such failure to comply, would not result, individually or in the aggregate, in a Material Adverse Effect. At no time during the three (3) years before the date hereof has the Company or any of its Subsidiaries received any written notice asserting any violations of any of the foregoing. 

        (b)    Regulatory Enforcement Actions. The Company, the Bank and its other Subsidiaries are in compliance in all material respects with all laws administered by and regulations of any Governmental Agency applicable to it or to them, except for such violations as would not have a Material Adverse Effect. None of the Company, the Bank, the Company’s or the Bank’s Subsidiaries nor any of their officers or directors is now operating under any restrictions, agreements, memoranda, commitment letter, supervisory letter or similar regulatory correspondence, or other commitments (other than restrictions of general application) imposed by any Governmental Agency, nor are, to the Company’s knowledge, (i) any such restrictions threatened, (ii) any agreements, memoranda or commitments being sought by any Governmental Agency, or (iii) any legal or regulatory violations previously identified by, or penalties or other remedial action previously imposed by, any Governmental Agency remains unresolved. Notwithstanding the foregoing, nothing in this Section 4.7(b) or this Agreement shall require the Company or any of its Subsidiaries to provide any confidential regulatory supervisory information of the Company as any of its Subsidiaries.

        (c)    Pending Litigation. There are no actions, suits, proceedings or written agreements pending, or, to the Company’s knowledge, threatened or proposed, against the Company or any of its Subsidiaries at law or in equity or before or by any federal, state, municipal, or other governmental department, commission, board, or other administrative agency, domestic or foreign, that, either separately or in the aggregate, would have a Material Adverse Effect on the Company and any of its Subsidiaries, taken as a whole, or materially and adversely affect the issuance or payment of the Subordinated Notes; and neither the Company nor any of its Subsidiaries is a party to or named as subject to the provisions of any order, writ, injunction, or decree of, or any written agreement with, any court, commission, board or agency, domestic or foreign, that either separately or in the aggregate, will have a Material Adverse Effect on the Company and any of its Subsidiaries, taken as a whole. 

        (d)    Environmental. Expect as would not, singularly or in the aggregate, result in a Material Adverse Effect on the Company, (i) no Property is or, to the Company’s knowledge, has been a site for the use, generation, manufacture, storage, treatment, release, threatened release, discharge, disposal, transportation or presence of any Hazardous Materials and neither the Company nor any of its Subsidiaries has engaged in such activities and (ii) there are no claims or actions pending or, to the Company’s knowledge, threatened against the Company or any of its Subsidiaries by any Governmental Agency or by any other Person relating to any Hazardous Materials or pursuant to any Hazardous Materials Law. 

        (e)    Brokerage Commissions. Except for commissions paid to the Placement Agent, neither the Company nor any Affiliate of the Company is obligated to pay any brokerage commission or finder’s fee to any Person in connection with the transactions contemplated by this Agreement. 

        (f)    Investment Company Act. Neither the Company nor any of its Subsidiaries is an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended. 

    4.8    No Misstatement.  No information, exhibit, report, schedule or document, when viewed together as a whole, furnished by the Company to the Purchasers in connection with the negotiation, execution or performance of this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein not misleading in light of the circumstances in which they were made.

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    4.9.    Internal Accounting Controls. The Company, the Bank and each other Subsidiary has established and maintains proper and adequate internal accounting controls that provide reasonable assurance that (a) all material transactions are executed with the authorization of the Company’s management, (b) all material transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP and (c) access to the Company’s material assets is permitted only in accordance with the authorization of the Company’s management. Such internal accounting controls are effective to provide reasonable assurance regarding the reliability of the Company’s financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with GAAP. Since the conclusion of the Company’s last completed fiscal year, to the Company’s knowledge, there has not been and there currently is not (x) any material deficiency in the design or operation of its internal accounting controls that is reasonably likely to have a Material Adverse Effect on such system of internal accounting controls, or (y) any fraud that involves management or other employees who have a role in the Company’s or the Bank’s internal accounting controls. 

    4.10.    Tax Matters. The Company, Bank and each Subsidiary of the Company have (a) filed all material foreign, U.S. federal, state and local tax returns, information returns and similar reports that are required to be filed (taking into account any extensions), and all such tax returns are true, correct and complete in all material respects, and (b) paid all material taxes required to be paid by it and any other material assessment, fine or penalty levied against it other than taxes (x) currently payable without penalty or interest, or (y) being contested in good faith by appropriate proceedings. 

    4.11    Insurance.  The Company, the Bank and each Subsidiary of the Company is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which they are engaged; in the past three years, neither the Company, the Bank nor any Subsidiary has been refused any insurance coverage sought or applied for; and the Company, the Bank and each Subsidiary have no reason to believe that they will not be able to renew existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue their business at a cost that would not have a Material Adverse Effect on the Company.

    4.12.    Exempt Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in this Agreement, no registration under the Securities Act is required for the offer and sale of the Subordinated Notes by the Company to the Purchasers. 

    4.13.    Representations and Warranties Generally. The representations and warranties of the Company set forth in this Agreement that do not contain a “Material Adverse Effect” qualification or other express materiality or similar qualification are true and correct in all material respects (i) as of the Closing Date and (ii) as otherwise specifically provided herein. The representations and warranties of the Company set forth in this Agreement that contain a “Material Adverse Effect” qualification or any other express materiality or similar qualification are true and correct (a) as of the Closing Date and (b) as otherwise specifically provided herein. 

    5.    GENERAL COVENANTS, CONDITIONS AND AGREEMENTS. 

    The Company hereby further covenants and agrees with each Purchaser as follows: 

    5.1.    Compliance with Transaction Documents. The Company shall comply with, observe and timely perform each and every one of the covenants, agreements and obligations under the Transaction Documents. 

    5.2.    Affiliate Transactions. The Company shall not itself, nor shall it cause, permit or allow any of its Subsidiaries to enter into any material transaction, including, the purchase, sale or exchange of property or the rendering of any service, with any Affiliate of the Company, except in the ordinary course of business and pursuant to the reasonable requirements of the Company’s or such Affiliate’s business and upon terms consistent with applicable laws and regulations and reasonably found by the appropriate board(s) of directors to be fair and reasonable and no less favorable to the Company or such Affiliate than would be obtained in a comparable arm’s length transaction with a Person not an Affiliate. 

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    5.3.    Compliance with Laws. 

        (a)    Generally. The Company shall comply and cause the Bank and each of its other Subsidiaries to comply in all material respects with all applicable statutes, rules, regulations, orders and restrictions in respect of the conduct of its business and the ownership of its properties, except, in each case, where such noncompliance would not reasonably be expected to have a Material Adverse Effect on the Company. 

        (b)    Regulated Activities. The Company shall not itself, nor shall it cause, permit or allow the Bank or any other of its Subsidiaries to (i) engage in any business or activity not permitted by all applicable laws and regulations, except where such business or activity would not reasonably be expected to have a Material Adverse Effect on the Company, the Bank and/or such of its Subsidiaries or (ii) make any loan or advance secured by the capital stock of another bank or depository institution, or acquire the capital stock, assets or obligations of or any interest in another bank or depository institution, in each case other than in accordance with applicable laws and regulations and safe and sound banking practices. 

        (c)    Taxes. The Company shall and shall cause the Bank and any other of its Subsidiaries to promptly pay and discharge all taxes, assessments and other governmental charges imposed upon the Company, the Bank or any other of its Subsidiaries or upon the income, profits, or property of the Company or any Subsidiary and all claims for labor, material or supplies that, if unpaid, might by law become a lien or charge upon the property of the Company, the Bank or any other of its Subsidiaries. Notwithstanding the foregoing, none of the Company, the Bank or any other of its Subsidiaries shall be required to pay any such tax, assessment, charge or claim, so long as the validity thereof shall be contested in good faith by appropriate proceedings, and appropriate reserves therefor shall be maintained on the books of the Company, the Bank and such other Subsidiary. 

        (d)    Corporate Existence. The Company shall do or cause to be done all things reasonably necessary to maintain, preserve and renew its corporate existence and that of the Bank and the other Subsidiaries and its and their rights and franchises, and comply in all material respects with all related laws applicable to the Company, the Bank or the other Subsidiaries; provided, however, that the Company may consummate a merger in which (i) the Company is the surviving entity or (ii) if the Company is not the surviving entity, the surviving entity assumes, by operation of law or otherwise, all of the obligations of the Company under the Subordinated Notes. 

        (e)    Dividends, Payments, and Guarantees During Event of Default. Upon the occurrence of an Event of Default (as defined under the Subordinated Notes), until such Event of Default is cured by the Company or waived by the Noteholders (as defined under the Subordinated Notes) in accordance with Section 18 (Waiver and Consent) of the Subordinated Notes and except as required by any federal or state Governmental Agency, the Company shall not (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any of its capital stock; (ii) make any payment of principal of, or interest or premium, if any, on, or repay, repurchase or redeem any of the Company’s Indebtedness that ranks equal with or junior to the Subordinated Notes; or (iii) make any payments under any guarantee that ranks equal with or junior to the Subordinated Notes, other than (A) any dividends or distributions in shares of, or options, warrants or rights to subscribe for or purchase shares of, any class of the Company’s common stock; (B) any declaration of a non-cash dividend in connection with the implementation of a shareholders’ rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto; (C) as a result of a reclassification of the Company’s capital stock or the exchange or conversion of one class or series of the Company’s capital stock for another class or series of the Company’s capital stock; (D) the purchase of fractional interests in shares of the Company’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged; or (E) purchases of any class of the Company’s common stock related to the issuance of common stock or rights under any benefit plans for the Company’s directors, officers or employees. 

        (f)    Tier 2 Capital. If all or any portion of the Subordinated Notes ceases to be deemed to be Tier 2 Capital, other than due to the limitation imposed on the capital treatment of subordinated debt during the five (5) years immediately preceding the Maturity Date of the Subordinated Notes, the Company will immediately notify the Noteholder (as defined in the Subordinated Note), and 
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thereafter the Company and the Noteholder (as defined in the Subordinated Note) will work together in good faith to execute and deliver all agreements as reasonably necessary in order to restructure the applicable portions of the obligations evidenced by the Subordinated Notes to qualify as Tier 2 Capital; provided, however, that nothing contained in this Agreement shall limit the Company’s right to redeem the Subordinated Notes upon the occurrence of a Tier 2 Capital Event as described in the Subordinated Notes. 

    5.4.    Absence of Control. It is the intent of the parties to this Agreement that in no event shall the Purchasers, by reason of any of the Transaction Documents, be deemed to control, directly or indirectly, the Company, and the Purchasers shall not exercise, or be deemed to exercise, directly or indirectly, a controlling influence over the management or policies of the Company. 

    5.5.    Secondary Market Transactions. Each Purchaser shall have the right at any time and from time to time to securitize its Subordinated Notes or any portion thereof in a single asset securitization or a pooled loan securitization of rated single or multi-class securities secured by or evidencing ownership interests in the Subordinated Notes (each such securitization is referred to herein as a “Secondary Market Transaction”). In connection with any such Secondary Market Transaction, the Company shall, at the Company’s expense, cooperate with the Purchasers and otherwise reasonably assist the Purchasers in satisfying the market standards to which Purchasers customarily adhere or that  may be reasonably required in the marketplace or by applicable rating agencies in connection with any such Secondary Market Transaction. Subject to any written confidentiality obligation, all information regarding the Company may be furnished, without liability except in the case of gross negligence or willful misconduct, to any Purchaser and to any Person reasonably deemed necessary by such Purchaser in connection with participation in such Secondary Market Transaction. All documents, financial statements, appraisals and other data relevant to the Company or the Subordinated Notes may be retained by any such Person. 

    5.6.    Rule 144A Information. While any Subordinated Notes remain “restricted securities” within the meaning of the Securities Act, the Company will make available, upon request, to any seller of such Subordinated Notes the information specified in Rule 144A(d)(4) under the Securities Act, unless the Company is then subject to Section 13 or 15(d) of the Exchange Act. 

5.7    DTC Registration.  Upon the request of a holder of a Subordinated Note that is a QIB, the Company shall use commercially reasonable efforts to cause the Subordinated Notes held by such QIB to be registered in the name of Cede & Co. as nominee of DTC or a nominee of DTC.  For purposes of clarity and pursuant to (and as further described in) the terms of the Subordinated Notes, any redemption made pursuant to the terms of the Subordinated Notes shall be made on a pro rata basis, and, for purposes of a redemption processed through DTC, on a “Pro Rata Pass-Through Distribution of Principal” basis, among all of the Subordinated Notes outstanding at the time thereof.

6.    REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASERS. 

    Each Purchaser hereby represents and warrants to the Company, and covenants with the Company, severally and not jointly, as follows: 

    6.1.     Legal Power and Authority. It has all necessary power and authority to execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. It is an entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization. 

    6.2.    Authorization and Execution. The execution, delivery and performance of this Agreement has been duly authorized by all necessary action on the part of the Purchaser, and, assuming due authorization, execution and delivery by the other parties hereto, this Agreement is a legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors’ rights generally or by general equitable principles. 

    6.3.    No Conflicts. Neither the execution, delivery or performance of the Transaction Documents nor the consummation of any of the transactions contemplated thereby will conflict with, 
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violate, constitute a breach of or a default (whether with or without the giving of notice or lapse of time or both) under (a) its organizational documents, (b) any contract, agreement or instrument to which it is party, (c) any law, statute, rule or regulation applicable to it or (d) any order, writ, judgment, injunction, decree, determination or award binding upon or affecting it. 

    6.4.    Purchase for Investment. It is purchasing the Subordinated Note for its own account and not with a view to distribution and with no present intention of reselling, distributing or otherwise disposing of the same. It has no present or contemplated agreement, undertaking, arrangement, obligation, Indebtedness or commitment providing for, or which is likely to compel, a disposition of the Subordinated Notes in any manner. 

    6.5.    Institutional Accredited Investor. It is and will be on the Closing Date (a) an institutional “accredited investor” as such term is defined in Rule 501(a) of Regulation D and as contemplated by subsections (1), (2), (3) and (7) of Rule 501(a) of Regulation D, and has no less than $5,000,000 in total assets, or (b) a QIB. 

    6.6.    Financial and Business Sophistication. It has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the prospective investment in the Subordinated Notes. It has relied solely upon its own knowledge of, and/or the advice of its own legal, financial or other advisors with regard to, the legal, financial, tax and other considerations involved in deciding to invest in the Subordinated Notes. 

    6.7.    Ability to Bear Economic Risk of Investment. It recognizes that an investment in the Subordinated Notes is a speculative investment that involves substantial risk. It has the ability to bear the economic risk of the prospective investment in the Subordinated Notes, including the ability to hold the Subordinated Notes indefinitely and further including the ability to bear a complete loss of all of its investment in the Company. 

    6.8.    Information. It acknowledges that: (a) it is not being provided with the disclosures that would be required if the offer and sale of the Subordinated Notes were registered under the Securities Act, nor is it being provided with any offering circular or prospectus prepared in connection with the offer and sale of the Subordinated Notes; (b) it has conducted its own examination of the Company and the terms of the Subordinated Notes to the extent it deems necessary to make its decision to invest in the Subordinated Notes; and (c) it has availed itself of publicly available financial and other information concerning the Company to the extent it deems necessary to make its decision to purchase the Subordinated Notes. It has reviewed the information set forth in the Company’s Reports, the exhibits hereto and the information contained in the data room established by the Company in connection with the transactions contemplated by this Agreement. 

    6.9.    Access to Information. It acknowledges that it and its advisors have been furnished with all materials relating to the business, finances and operations of the Company that have been requested by it or its advisors and have been given the opportunity to ask questions of, and to receive answers from, persons acting on behalf of the Company concerning terms and conditions of the transactions contemplated by this Agreement in order to make an informed and voluntary decision to enter into this Agreement. 

    6.10.    Investment Decision. It has made its own investment decision based upon its own judgment, due diligence and advice from such advisors as it has deemed necessary and not upon any view expressed by any other Person or entity, including the Placement Agent. Neither such inquiries nor any other due diligence investigations conducted by it or its advisors or representatives, if any, shall modify, amend or affect its right to rely on the Company’s representations and warranties contained herein. It is not relying upon, and has not relied upon, any advice, statement, representation or warranty made by any Person by or on behalf of the Company, including, without limitation, the Placement Agent, except for the express statements, representations and warranties of the Company made or contained in this Agreement. Furthermore, it acknowledges that (a) the Placement Agent has not performed any due diligence review on behalf of it and (b) nothing in this Agreement or any other materials presented by or on behalf of the Company to it in connection with the purchase of the Subordinated Notes constitutes legal, tax or investment advice. 
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    6.11.    Private Placement; No Registration; Restricted Legends. It understands and acknowledges that the Subordinated Notes are being sold by the Company without registration under the Securities Act in reliance on the exemption from federal and state registration set forth in, respectively, Rule 506(b) of Regulation D promulgated under Section 4(a)(2) of the Securities Act and Section 18 of the Securities Act, or any state securities laws, and accordingly, may be resold, pledged or otherwise transferred only if exemptions from the Securities Act and applicable state securities laws are available to it. It is not subscribing for the Subordinated Notes as a result of or after any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, or presented at any seminar or meeting. It further acknowledges and agrees that all certificates or other instruments representing the Subordinated Notes will bear the restrictive legend set forth in the form of Subordinated Note. It further acknowledges its primary responsibilities under the Securities Act and, accordingly, will not sell or otherwise transfer the Subordinated Notes or any interest therein without complying with the requirements of the Securities Act and the rules and regulations promulgated thereunder and the requirements set forth in this Agreement. 

    6.12.    Placement Agent. It will purchase the Subordinated Note(s) directly from the Company and not from the Placement Agent and understands that neither the Placement Agent nor any other broker or dealer has any obligation to make a market in the Subordinated Notes. 

    6.13.    Tier 2 Capital. If the Company provides notice as contemplated in Section 7.5 of this Agreement of the occurrence of the event contemplated in such section, thereafter the Company and the Purchasers will work together in good faith to execute and deliver all agreements as reasonably necessary in order to restructure the applicable portions of the obligations evidenced by the Subordinated Notes to qualify as Tier 2 Capital; provided, however, that nothing contained in this Agreement shall limit the Company’s right to redeem the Subordinated Notes upon the occurrence of a Tier 2 Capital Event as described in the Subordinated Notes. 

    6.14.    Accuracy of Representations. It understands that each of the Placement Agent and the Company are relying and will rely upon the truth and accuracy of the foregoing representations, acknowledgements and agreements in connection with the transactions contemplated by this Agreement, and agrees that if any of the representations or acknowledgements made by it are no longer accurate as of the Closing Date, or if any of the agreements made by it are breached on or prior to the Closing Date, it shall promptly notify the Placement Agent and the Company. 

    6.15.    Representations and Warranties Generally. The representations and warranties of the Purchaser set forth in this Agreement are true and correct as of the date hereof and will be true and correct as of the Closing Date and as otherwise specifically provided herein. Any certificate signed by a duly authorized representative of the Purchaser and delivered to the Company or to counsel for the Company shall be deemed to be a representation and warranty by the Purchaser to the Company as to the matters set forth therein. 

7.     MISCELLANEOUS. 

    7.1.    Prohibition on Assignment by the Company. Except as described in Section 9(b) (Merger or Sale of Assets) of the Subordinated Notes, the Company may not assign, transfer or delegate any of its rights or obligations under this Agreement or the Subordinated Notes without the prior written consent of all the Noteholders (as defined in the Subordinated Note). In addition, in accordance with the terms of the Subordinated Notes, any transfer of such Subordinated Notes by the Noteholders (as defined in the Subordinated Note) must be made in accordance with the Assignment Form attached thereto and the requirements and restrictions thereof. 

    7.2.    Time of the Essence. Time is of the essence for this Agreement. 

    7.3.    Waiver or Amendment. Except as may apply to any particular waiving or consenting Noteholder, no waiver or amendment of any term, provision, condition, covenant or agreement herein or in the Subordinated Notes shall be effective except with the consent of the holders of at least fifty percent (50%) of the aggregate principal amount (excluding any Subordinated Notes held by the Company or any of its Affiliates) of the Subordinated Notes at the time outstanding; provided, however, that without the 
16

consent of each holder of an affected Subordinated Note, no such amendment or waiver may: (a) reduce the principal amount of the Subordinated Note; (b) reduce the rate of or change the time for payment of interest on any Subordinated Note; (c) extend the maturity of any Subordinated Note, (d) change the currency in which payment of the obligations of the Company under this Agreement and the Subordinated Notes are to be made; (e) lower the percentage of aggregate principal amount of outstanding Subordinated Notes required to approve any amendment of this Agreement or the Subordinated Notes, (f) make any changes to Section 7 (Failure to Make Payments) of the Subordinated Notes that adversely affects the rights of any holder of a Subordinated Note; or (g) disproportionately and adversely affect the rights of any of the holders of the then outstanding Subordinated Notes. Notwithstanding the foregoing, the Company may amend or supplement the Subordinated Notes without the consent of the holders of the Subordinated Notes to cure any ambiguity, defect or inconsistency or to provide for uncertificated Subordinated Notes in addition to or in place of certificated Subordinated Notes, or to make any change that does not adversely affect the rights of any holder of any of the Subordinated Notes. No failure to exercise or delay in exercising, by a Purchaser or any holder of the Subordinated Notes, of any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude any other or further exercise thereof, or the exercise of any other right or remedy provided by law. The rights and remedies provided in this Agreement are cumulative and not exclusive of any right or remedy provided by law or equity. No notice or demand on the Company in any case shall, in itself, entitle the Company to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Purchasers to any other or further action in any circumstances without notice or demand. No consent or waiver, expressed or implied, by the Purchasers to or of any breach or default by the Company in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of the same or any other obligations of the Company hereunder. Failure on the part of the Purchasers to complain of any acts or failure to act or to declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by the Purchasers of their rights hereunder or impair any rights, powers or remedies on account of any breach or default by the Company. 

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

    7.5.    Notices. Any notice that any party hereto may be required or may desire to give hereunder shall be deemed to have been given if in writing and if delivered personally, or if mailed, postage prepaid, by U.S. registered or certified mail, return receipt requested, or if delivered by a responsible overnight commercial courier promising next business day delivery, addressed: 

17

						
	If to the Company:	CB Financial Services, Inc.
100 N. Market Street
Carmichaels, PA 15320
Attention:  John H. Montgomery
    President and Chief Executive Officer

	with a copy to:	Luse Gorman, PC
5335 Wisconsin Avenue, NW
Suite 780
Washington, DC 20015
Attention: Victor L. Cangelosi, Esq.

	If to the Purchasers:	To the address indicated on the Purchaser’s signature page hereto.

or to such other address or addresses as the party to be given notice may have furnished in writing to the party seeking or desiring to give notice, as a place for the giving of notice; provided that no change in address shall be effective until five (5) Business Days after being given to the other party in the manner provided for above. Any notice given in accordance with the foregoing shall be deemed given when delivered personally or, if mailed, three (3) Business Days after it shall have been deposited in the U.S. mail as aforesaid or, if sent by overnight courier, the Business Day following the date of delivery to such courier (provided next business day delivery was requested). 

    7.6.    Successors and Assigns. This Agreement shall inure to the benefit of the parties and their respective heirs, legal representatives, successors and assigns; except that, unless a Purchaser consents in writing, no assignment made by the Company in violation of this Agreement shall be effective or confer any rights on any purported assignee of the Company. The term “successors and assigns” will not include a purchaser of any of the Subordinated Notes from any Purchaser merely because of such purchase, but shall include a purchaser of any of the Subordinated Notes pursuant to an assignment complying with the Assignment Form attached to the Subordinated Notes. 

    7.7.    No Joint Venture. Nothing contained herein or in any document executed pursuant hereto and no action or inaction whatsoever on the part of a Purchaser, shall be deemed to make a Purchaser a partner or joint venturer with the Company. 

    7.8.    Documentation. All documents and other matters required by any of the provisions of this Agreement to be submitted or furnished to a Purchaser shall be in form and substance reasonably satisfactory to such Purchaser. 

    7.9.    Entire Agreement. This Agreement and the Subordinated Notes, along with any exhibits thereto, constitute the entire agreement between the parties hereto with respect to the subject matter hereof and may not be modified or amended in any manner other than by supplemental written agreement executed by the parties hereto. No party, in entering into this Agreement, has relied upon any representation, warranty, covenant, condition or other term that is not set forth in this Agreement or in the Subordinated Notes. 

    7.10.    Choice of Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without giving effect to its laws or principles of conflict of laws (other than Section 5-1401 and 5-1402 of the New York General Obligations Law). Nothing herein shall be deemed to limit any rights, powers or privileges that a Purchaser may have pursuant to any law of the United States of America or any rule, regulation or order of any department or agency thereof and nothing herein shall be deemed to make unlawful any transaction or conduct by a Purchaser that is lawful pursuant to, or that is permitted by, any of the foregoing. 

    7.11.    No Third Party Beneficiary. This Agreement is made for the sole benefit of the Company and the Purchasers, and no other Person shall be deemed to have any privity of contract 
18

hereunder nor any right to rely hereon to any extent or for any purpose whatsoever, nor shall any other Person have any right of action of any kind hereon or be deemed to be a third party beneficiary hereunder; provided, that the Placement Agent may rely on the representations and warranties contained herein to the same extent as if it were a party to this Agreement. 

    7.12.    Legal Tender of United States. All payments hereunder shall be made in coin or currency that at the time of payment is legal tender in the United States of America for public and private debts. 

    7.13.    Captions; Counterparts. Captions contained in this Agreement in no way define, limit or extend the scope or intent of their respective provisions. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument. If any signature is delivered by facsimile transmission, or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof. 

    7.14.    Knowledge; Discretion. All references herein to the Company’s or the Bank’s knowledge shall be deemed to mean the knowledge of such party based on the actual knowledge of such party’s President and Chief Executive Officer and its Chief Financial Officer, or such other persons holding equivalent offices after due inquiry. All references herein to Purchaser’s knowledge shall be deemed to mean the knowledge of such Purchaser based on the actual knowledge of Purchaser’s Chief Executive Officer and its Chief Financial Officer, or such other persons holding equivalent offices.  Unless specified to the contrary herein, all references herein to an exercise of discretion or judgment by a Purchaser, to the making of a determination or designation by a Purchaser, to the application of a Purchaser’s discretion or opinion, to the granting or withholding of a Purchaser’s consent or approval, to the consideration of whether a matter or thing is satisfactory or acceptable to a Purchaser, or otherwise involving the decision making of a Purchaser, shall be deemed to mean that such Purchaser shall decide using the reasonable discretion or judgment of a prudent lender. 

    7.15.    Waiver Of Right To Jury Trial. TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT THAT THEY MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION ARISING IN ANY WAY IN CONNECTION WITH ANY OF THE TRANSACTION DOCUMENTS, OR ANY OTHER STATEMENTS OR ACTIONS OF THE COMPANY OR THE PURCHASERS. THE PARTIES ACKNOWLEDGE THAT THEY HAVE BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL SELECTED OF THEIR OWN FREE WILL. THE PARTIES FURTHER ACKNOWLEDGE THAT (I) THEY HAVE READ AND UNDERSTAND THE MEANING AND RAMIFICATIONS OF THIS WAIVER, (II) THIS WAIVER HAS BEEN REVIEWED BY THE PARTIES AND THEIR COUNSEL AND IS A MATERIAL INDUCEMENT FOR ENTRY INTO THIS AGREEMENT AND (III) THIS WAIVER SHALL BE EFFECTIVE AS TO EACH OF SUCH TRANSACTION DOCUMENTS AS IF FULLY INCORPORATED THEREIN. 

    7.16.    Expenses. Except as otherwise provided in this Agreement, each of the parties will bear and pay all other costs and expenses incurred by it or on its behalf in connection with the transactions contemplated pursuant to this Agreement. 

    7.17.    Survival. Each of the representations and warranties set forth in this Agreement shall survive the consummation of the transactions contemplated hereby for a period of one year after the date hereof. Except as otherwise provided herein, all covenants and agreements contained herein shall survive until, by their respective terms, they are no longer operative. 

[Signature Pages Follow]

19

    IN WITNESS WHEREOF, the Company has caused this Subordinated Note Purchase Agreement to be executed by its duly authorized representative as of the date first written above. 

CB FINANCIAL SERVICES, INC. 

By:                        
Name:    John H. Montgomery
Title:    President and Chief Executive Officer

[Company Signature Page to Subordinated Note Purchase Agreement]
    IN WITNESS WHEREOF, the Purchaser has caused this Subordinated Note Purchase Agreement to be executed by its duly authorized representative as of the date first written above. 

PURCHASER:

[INSERT PURCHASER NAME] 

    

By:                            
Name:     [●] 
Title:     [●] 

Address of Purchaser:

[●] 
[●] 
[●] 

Mailing Address for Delivery of Notices (if different from above)

[●] 
[●] 
[●] 

Principal Amount of Purchased Subordinated Note: 

$[●] 

[Purchaser Signature Page to Subordinated Note Purchase Agreement]

    

CB FINANCIAL SERVICES, INC.
3.875% FIXED TO FLOATING RATE SUBORDINATED NOTE DUE DECEMBER 15, 2031
THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY OR FUND.
THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS SUBORDINATED AND JUNIOR IN RIGHT OF PAYMENT TO SENIOR INDEBTEDNESS (AS DEFINED IN SECTION 3 (SUBORDINATION) OF THIS SUBORDINATED NOTE) OF CB FINANCIAL SERVICES, INC. (THE “COMPANY”), INCLUDING OBLIGATIONS OF THE COMPANY TO ITS GENERAL AND SECURED CREDITORS AND IS UNSECURED.  IT IS INELIGIBLE AS COLLATERAL FOR ANY EXTENSION OF CREDIT BY THE COMPANY OR ANY OF ITS SUBSIDIARIES. 
THIS SUBORDINATED NOTE IS A GLOBAL SUBORDINATED NOTE WITHIN THE MEANING OF SECTION 5 OF THIS SUBORDINATED NOTE AND IS REGISTERED IN THE NAME OF CEDE & CO AS NOMINEE OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS SUBORDINATED NOTE IS EXCHANGEABLE FOR SUBORDINATED NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN SECTION 5 OF THIS SUBORDINATED NOTE, AND NO TRANSFER OF THIS SUBORDINATED NOTE (OTHER THAN A TRANSFER OF THIS SUBORDINATED NOTE AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES SPECIFIED IN THIS SUBORDINATED NOTE.
UNLESS THIS SUBORDINATED NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY SUBORDINATED NOTE 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 HEREON 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.
TRANSFERS OF THIS SUBORDINATED NOTE WILL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS SUBORDINATED NOTE WILL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 5 OF THIS SUBORDINATED NOTE.
IN THE EVENT OF LIQUIDATION ALL HOLDERS OF SENIOR INDEBTEDNESS OF THE COMPANY SHALL BE ENTITLED TO BE PAID IN FULL WITH SUCH INTEREST AS MAY BE PROVIDED BY LAW BEFORE ANY PAYMENT SHALL BE MADE ON ACCOUNT OF PRINCIPAL OF OR INTEREST ON THIS SUBORDINATED NOTE.  AFTER PAYMENT IN FULL OF ALL SUMS OWING TO SUCH HOLDERS OF SENIOR INDEBTEDNESS, THE HOLDER OF THIS SUBORDINATED NOTE, TOGETHER WITH THE HOLDERS OF ANY OBLIGATIONS OF THE COMPANY RANKING ON A PARITY WITH THE SUBORDINATED NOTES, SHALL BE ENTITLED TO BE PAID FROM THE REMAINING ASSETS OF THE COMPANY THE UNPAID PRINCIPAL AMOUNT OF THIS SUBORDINATED NOTE PLUS ACCRUED AND UNPAID INTEREST THEREON BEFORE ANY PAYMENT OR OTHER DISTRIBUTION, WHETHER IN CASH, PROPERTY OR OTHERWISE, SHALL BE MADE (I) WITH RESPECT TO ANY OBLIGATION THAT BY ITS TERMS EXPRESSLY IS JUNIOR IN THE RIGHT OF PAYMENT TO THE SUBORDINATED NOTES, (II) WITH RESPECT TO ANY INDEBTEDNESS BETWEEN THE COMPANY AND ANY OF ITS SUBSIDIARIES OR AFFILIATES OR (III) ON ACCOUNT OF ANY SHARES OF CAPITAL STOCK OF THE COMPANY.
THIS SUBORDINATED NOTE WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. 
A-1

ANY ATTEMPTED TRANSFER OF THIS SUBORDINATED NOTE IN A DENOMINATION OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SUBORDINATED NOTE FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PAYMENTS ON THIS SUBORDINATED NOTE, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SUBORDINATED NOTE.
THIS SUBORDINATED NOTE MAY BE SOLD ONLY IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THIS SUBORDINATED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SUBORDINATED NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.
CERTAIN ERISA CONSIDERATIONS:
THE HOLDER OF THIS SUBORDINATED NOTE, OR ANY INTEREST HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH, A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S.  DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SUBORDINATED NOTE, OR ANY INTEREST HEREIN, ARE NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE AND HOLDING.  ANY PURCHASER OR HOLDER OF THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER: (I) IT IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN TO WHICH TITLE I OF ERISA OR SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF ANY SUCH EMPLOYEE BENEFIT PLAN OR OTHER PLAN, OR ANY OTHER PERSON OR ENTITY USING THE “PLAN ASSETS” OF ANY SUCH PLAN OR OTHER PLAN TO FINANCE SUCH PURCHASE OR (II) SUCH PURCHASE OR HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH FULL EXEMPTIVE RELIEF IS NOT AVAILABLE UNDER APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.
ANY FIDUCIARY OF ANY PLAN WHO IS CONSIDERING THE ACQUISITION OF THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN SHOULD CONSULT WITH HIS OR HER LEGAL COUNSEL BEFORE ACQUIRING THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN.

A-2

Note No. []    CUSIP QIBs: []

CB FINANCIAL SERVICES, INC.
3.875% FIXED TO FLOATING RATE SUBORDINATED NOTE DUE DECEMBER 15, 2031

1.Subordinated Notes. This subordinated note is one of an issue of notes of CB Financial Services, Inc., a Pennsylvania corporation (the “Company”), designated as the “3.875% Fixed-to-Floating Rate Subordinated Notes due 2031” (the “Subordinated Notes”) issued pursuant to that Subordinated Note Purchase Agreement dated as of the date upon which this Subordinated Note was originally issued (the “Issue Date”) between the Company and the several purchasers of the Subordinated Notes identified in the signature pages thereto (the “Purchase Agreement”).
2.Payment. The Company, for value received, promises to pay to Cede & Co., or its registered assigns, as nominee of The Depository Trust Company (“DTC”), or its registered assigns, the principal sum of [●] Dollars (U.S.) ($[●]), plus accrued but unpaid interest on December 15, 2031 (the “Maturity Date”) and to pay interest thereon (i) from and including the original issue date of the Subordinated Notes to but excluding December 15, 2026 or the earlier redemption date contemplated by Section 4 (Redemption) of this Subordinated Note (the “Fixed Rate Period”), at the rate 3.875% per annum, computed on the basis of a 360-day year consisting of twelve 30-day months and payable semi-annually in arrears on June 15 and December 15 of each year (each payment date, a “Fixed Interest Payment Date”), beginning June 15, 2022, and (ii) from and including December 15, 2026 to but excluding the Maturity Date or earlier redemption date contemplated by Section 4 (Redemption) of this Subordinated Note (the “Floating Rate Period”), at the rate per annum, reset quarterly, equal to the Floating Interest Rate (as defined below) determined on the Floating Interest Determination Date (as defined below) of the applicable interest period plus 280 basis points, provided, that if the Floating Interest Rate is less than zero, then the Floating Interest Rate shall be deemed to be zero, computed on the basis of a 360-day year and the actual number of days elapsed and payable quarterly in arrears (each quarterly period a “Floating Interest Period”) on March 15, June 15, September 15 and December 15 of each year (each payment date, a “Floating Interest Payment Date”). Dollar amounts resulting from this calculation shall be rounded to the nearest cent, with one-half cent being rounded up.  The term “Floating Interest Determination Date” means the date upon which the Floating Interest Rate is determined by the Calculation Agent pursuant to the Three-Month Term SOFR Conventions.  
(a)An “Interest Payment Date” is either a Fixed Interest Payment Date or a Floating Interest Payment Date, as applicable. 
(b)The “Floating Interest Rate” means:
(i)initially Three-Month Term SOFR (as defined below).
(ii)Notwithstanding the foregoing clause (i) of this Section 2(b):
(1)If the Calculation Agent, determines before the relevant Floating Interest Determination Date that a Benchmark Transition Event and its related Benchmark Replacement Date (each of such terms as defined below) have occurred with respect to Three-Month Term SOFR, then the Company shall promptly provide notice of such determination to the Noteholders and Section 2(c) (Effect of Benchmark Transition Event) will thereafter apply to all determinations, calculations and quotations made or obtained for the purposes of calculating the Floating Interest Rate payable on the Subordinated Notes during a relevant Floating Interest Period. 
(2)However, if the Calculation Agent, determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR, but for any reason the Benchmark Replacement has not been determined as of the relevant Floating Interest Determination Date, the Floating Interest Rate for the applicable Floating Interest Period will be equal to the Floating Interest Rate on the last Floating Interest Determination Date for the Subordinated Notes, as determined by the Calculation Agent (as defined below).
(iii)If the then-current Benchmark is Three-Month Term SOFR and any of the foregoing provisions concerning the calculation of the interest rate and the payment of interest during 
A-3

the Floating Rate Period are inconsistent with any of the Three-Month Term SOFR Conventions (as defined below) determined by the Company, then the relevant Three-Month Term SOFR Conventions will apply.
(c)Effect of Benchmark Transition Event.
(i)If the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred before the Reference Time (as defined below) in respect of any determination of the Benchmark (as defined below) on any date, the Benchmark Replacement will replace the then-current Benchmark for all purposes relating to the Subordinated Notes during the relevant Floating Interest Period in respect of such determination on such date and all determinations on all subsequent dates.
(ii)In connection with the implementation of a Benchmark Replacement, the Company will have the right to make Benchmark Replacement Conforming Changes from time to time, and such changes shall become effective without consent from the relevant Noteholders (as defined below) or any other party.
(iii)Any determination, decision or election that may be made by the Company or by the Calculation Agent pursuant to the benchmark transition provisions set forth herein, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date, and any decision to take or refrain from taking any action or any selection:
(1)will be conclusive and binding absent manifest error;
(2)if made by the Company, will be made in the Company’s sole discretion; 
(3)if made by the Calculation Agent, will be made after consultation with the Company, and the Calculation Agent will not make any such determination, decision or election to which the Company reasonably objects; and
(4)notwithstanding anything to the contrary in this Subordinated Note or the Purchase Agreement, shall become effective without consent from the relevant Noteholders (as defined below) or any other party.
(iv)For the avoidance of doubt, after a Benchmark Transition Event and its related Benchmark Replacement Date have occurred, interest payable on this Subordinated Note for the Floating Rate Period will be an annual rate equal to the sum of the applicable Benchmark Replacement and the spread specified on the face hereof.
(v)As used in this Subordinated Note:
(1)“Benchmark” means, initially, Three-Month Term SOFR; provided that if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement.
(2)“Benchmark Replacement” means the Interpolated Benchmark with respect to the then-current Benchmark; provided that if (a) the Calculation Agent cannot determine the Interpolated Benchmark as of the Benchmark Replacement Date or (b) the then-current Benchmark is Three-Month Term SOFR and a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR (in which event no Interpolated Benchmark with respect to Three-Month Term SOFR shall be determined), then “Benchmark Replacement” means the first alternative set forth in the order below that can be determined by the  Calculation Agent, as of the Benchmark Replacement Date:
A-4

a.The sum of (i) Compounded SOFR and (ii) the Benchmark Replacement Adjustment;
b.the sum of: (i) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the replacement for the then-current Benchmark for the applicable Corresponding Tenor and (ii) the Benchmark Replacement Adjustment;
c.the sum of: (i) the ISDA Fallback Rate and (ii) the Benchmark Replacement Adjustment; or
d.the sum of: (i) the alternate rate of interest that has been selected by the Company as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of interest as a replacement for the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (ii) the Benchmark Replacement Adjustment.
(3)“Benchmark Replacement Adjustment” means the first alternative set forth in the order below that can be determined by the Calculation Agent, as of the Benchmark Replacement Date:
a.the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement;
b.if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment; or
c.the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Company giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated floating rate notes at such time.
(4)“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Floating Interest Period,” timing and frequency of determining rates with respect to each Floating Interest Period and making payments of interest, rounding of amounts or tenors and other administrative matters) that the Company decides may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or, if the Company decides that adoption of any portion of such market practice is not administratively feasible or if the Company determines that no market practice for use of the Benchmark Replacement exists, in such other manner as the Company determines is reasonably necessary).
(5)“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark:
a.in the case of clause (a) of the definition of “Benchmark Transition Event,” the relevant Reference Time in respect of any determination;
b.in the case of clause (b) or (c) of the definition of “Benchmark Transition Event,” the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or
c.in the case of clause (d) of the definition of “Benchmark Transition Event,” the date of such public statement or publication of information referenced therein.
A-5

For the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred before the Reference Time for purposes of such determination.
(6)“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:
a.if the Benchmark is Three-Month Term SOFR, (i) the Relevant Governmental Body has not selected or recommended a forward-looking term rate for a tenor of three months based on SOFR, (ii) the development of a forward-looking term rate for a tenor of three months based on SOFR that has been recommended or selected by the Relevant Governmental Body is not complete or (iii) the Company determines that the use of a forward-looking rate for a tenor of three months based on SOFR is not administratively feasible;
b.a public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such administrator has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark;
c.a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark; or
d.a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark is no longer representative.
(7)“Calculation Agent” means such bank or other entity (which may be the Company or an affiliate of the Company) as may be appointed by the Company to act as Calculation Agent for the Subordinated Notes during the Floating Rate Period.
(8)“Compounded SOFR” means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for this rate, and conventions for this rate being established by the Company or its designee in accordance with:
a.the rate, or methodology for this rate, and conventions for this rate selected or recommended by the Relevant Governmental Body for determining compounded SOFR; provided that:
b.if, and to the extent that, the Company or its designee determines that Compounded SOFR cannot be determined in accordance with clause (a) above, then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Company or its designee giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating rate notes at such time.
For the avoidance of doubt, the calculation of Compounded SOFR will exclude the Benchmark Replacement Adjustment and the spread specified on the face hereof.
(9)“Corresponding Tenor” with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding Business Day adjustment) as the applicable tenor for the then-current Benchmark.
(10)“FRBNY” means the Federal Reserve Bank of New York.
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(11)“FRBNY’s Website” means the website of the FRBNY at http://www.newyorkfed.org, or any successor source.
(12)“Interpolated Benchmark” with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a linear basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than the Corresponding Tenor and (2) the Benchmark for the shortest period (for which the Benchmark is available) that is longer than the Corresponding Tenor.
(13)“ISDA” means the International Swaps and Derivatives Association, Inc. or any successor thereto.
(14)“ISDA Definitions” means the 2006 ISDA Definitions published by the ISDA or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time.
(15)“ISDA Fallback Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark for the applicable tenor.
(16)“ISDA Fallback Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment.
(17)“Reference Time” with respect to any determination of a Benchmark means (1) if the Benchmark is Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, and (2) if the Benchmark is not Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Benchmark Replacement Conforming Changes.
(18)“Relevant Governmental Body” means the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve and/or the FRBNY or any successor thereto.
(19)“SOFR” means the daily Secured Overnight Financing Rate provided by the FRBNY, as the administrator of the benchmark (or a successor administrator), on the FRBNY’s Website (or such successor’s website).
(20)“Term SOFR” means the forward-looking term rate for the Corresponding Tenor based on SOFR that has been selected or recommended by the Relevant Governmental Body.
(21)“Term SOFR Administrator” means any entity designated by the Relevant Governmental Body as the administrator of Term SOFR (or a successor administrator).
(22)“Three-Month Term SOFR” means the rate for Term SOFR for a tenor of three months that is published by the Term SOFR Administrator at the Reference Time for any Floating Interest Period, as determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions.  All percentages used in or resulting from any calculation of Three-Month Term SOFR shall be rounded, if necessary, to the nearest one-hundred thousandth of a percentage point, with 0.000005% rounded up to 0.00001%.
(23)“Three-Month Term SOFR Conventions” means any determination, decision or election with respect to any technical, administrative or operational matter (including with respect to the manner and timing of the publication of Three-Month Term SOFR, or changes to the definition of “Floating Interest Period”, timing and frequency of determining Three-Month Term SOFR with respect to each Floating Interest Period and making payments of interest, rounding of 
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amounts or tenors, and other administrative matters) that the Company decides may be appropriate to reflect the use of Three-Month Term SOFR as the Benchmark in a manner substantially consistent with market practice (or, if the Company decides that adoption of any portion of such market practice is not administratively feasible or if the Company determines that no market practice for the use of Three-Month Term SOFR exists, in such other manner as the Company determines is reasonably necessary).
(24)“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.
(d)If any Fixed Interest Payment Date during the Fixed Rate Period falls on a day that is not a Business Day (as defined below), the interest payment due on that date shall be postponed to the next day that is a Business Day and no additional interest shall accrue as a result of that postponement. If any Floating Interest Payment Date during the Floating Rate Period falls on a day that is not a Business Day (as defined below), the interest payment due on that date shall be postponed to the next day that is a Business Day and interest shall accrue to but excluding the date interest is paid. However, if the postponement would cause the day to fall in the next calendar month during the Floating Interest Period, the Floating Interest Payment Date shall instead be brought forward to the immediately preceding Business Day. The term “Business Day” means any day other than a Saturday or Sunday or any other day on which banking institutions in the Commonwealth of Pennsylvania are generally authorized or required by law or executive order to be closed.

3.Subordination. 
(a)The indebtedness of the Company evidenced by this Subordinated Note, including the principal and interest on this Subordinated Note, shall be subordinate and junior in right of payment to the prior payment in full of all existing claims of creditors of the Company whether now outstanding or subsequently created, assumed, guaranteed or incurred (collectively, “Senior Indebtedness”), which shall consist of principal of (and premium, if any) and interest, if any, on: (i) all indebtedness and obligations of, or guaranteed or assumed by, the Company for money borrowed, whether or not evidenced by bonds, debentures, securities, notes or other similar instruments, and including, but not limited to all obligations to the Company’s general and secured creditors; (ii) any deferred obligations of the Company for the payment of the purchase price of property or assets acquired other than in the ordinary course of business; (iii) all obligations, contingent or otherwise, of the Company in respect of any letters of credit, bankers’ acceptances, security purchase facilities and similar direct credit substitutes; (iv) any capital lease obligations of the Company; (v) all obligations of the Company in respect of interest rate swap, cap or other agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts, commodity contracts and other similar arrangements or derivative products; (vi) all obligations that are similar to those in clauses (i) through (v) of other persons for the payment of which the Company is responsible or liable as obligor, guarantor or otherwise arising from an off-balance sheet guarantee; (vii) all obligations of the types referred to in clauses (i) through (vi) of other persons secured by a lien on any property or asset of the Company; and (viii) in the case of (i) through (vii) above, all amendments, renewals, extensions, modifications and refundings of such indebtedness and obligations; except “Senior Indebtedness” does not include (A) the Subordinated Notes, (B) any obligation that by its terms expressly is junior to, or ranks equally in right of payment with, the Subordinated Notes, (C) the existing junior subordinated debentures of the Company (underlying the outstanding trust preferred securities) as of the date of the issuance of this Subordinated Note, or (D) any indebtedness between the Company and any of its subsidiaries or Affiliates.  This Subordinated Note is not secured by any assets of the Company or any of its subsidiaries or Affiliates.  The term “Affiliate(s)” means, with respect to any Person (as such term is defined in the Purchase Agreement), such Person’s immediate family members, partners, members or parent and subsidiary corporations, and any other Person directly or indirectly controlling, controlled by, or under common control with said Person and their respective Affiliates.
(b)In the event of liquidation of the Company, holders of Senior Indebtedness of the Company shall be entitled to be paid in full with such interest as may be provided by law before any payment shall be made on account of principal of or interest on this Subordinated Note.  Additionally, in the event of any insolvency, dissolution, assignment for the benefit of creditors or any liquidation or winding up of or relating to the Company, whether voluntary or involuntary, holders of Senior 
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Indebtedness shall be entitled to be paid in full before any payment shall be made on account of the principal of or interest on the Subordinated Notes, including this Subordinated Note.  In the event of any such proceeding, after payment in full of all sums owing with respect to the Senior Indebtedness, the registered holders of the Subordinated Notes from time to time (each a “Noteholder” and, collectively, the “Noteholders”), together with the holders of any obligations of the Company ranking on parity with the Subordinated Notes, shall be entitled to be paid from the remaining assets of the Company the unpaid principal thereof, and the unpaid interest thereon before any payment or other distribution, whether in cash, property or otherwise, shall be made (i) with respect to any obligation that by its terms expressly is junior in the right of payment to the Subordinated Notes, (ii) with respect to the existing junior subordinated debentures of the Company (underlying the outstanding trust preferred securities) as of the date of the issuance of this Subordinated Note to which this Subordinated Note shall be senior, (iii) with respect to any indebtedness between the Company and any of its subsidiaries or Affiliates or (iv) on account of any capital stock.
(c)If there shall have occurred and be continuing (i) a default in any payment with respect to any Senior Indebtedness or (ii) an event of default with respect to any Senior Indebtedness as a result of which the maturity thereof is accelerated, unless and until such payment default or event of default shall have been cured or waived or shall have ceased to exist, no payments shall be made by the Company with respect to the Subordinated Notes.  The provisions of this paragraph shall not apply to any payment with respect to which the immediately preceding paragraph of this Section 3 (Subordination) would be applicable.
(d)Nothing herein shall act to prohibit, limit or impede the Company from issuing additional debt of the Company having the same rank as the Subordinated Notes or which may be junior or senior in rank to the Subordinated Notes.  Each Noteholder, by its acceptance hereof, further acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration for each holder of any Senior Indebtedness, whether such Senior Indebtedness was created or acquired before or after the issuance of the Subordinated Notes, to acquire and continue to hold, or to continue to hold, such Senior Indebtedness, and such holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold or in continuing to hold such Senior Indebtedness.
4.Redemption.
(a)Redemption Before Fifth Anniversary.  This Subordinated Note shall not be redeemable by the Company in whole or in part before December 15, 2026 except in the event of a: (i) Tier 2 Capital Event (as defined below); (ii) Tax Event (as defined below); or (iii) Investment Company Event (as defined below).  Upon the occurrence of a Tier 2 Capital Event, a Tax Event or an Investment Company Event, the Company may redeem this Subordinated Note, subject to Section 4(f) (Regulatory Approvals) hereof, in whole but not in part, at any time, upon giving not less than ten (10) days’ notice to the holder of this Subordinated Note at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date.  “Tier 2 Capital Event” means the receipt by the Company of an opinion of counsel to the Company to the effect that, as a result of (1) any amendment to, or change in, the laws, rules or regulations of the United States (including, for the avoidance of doubt, any agency or instrumentality of the United States, including the Federal Reserve and other federal bank regulatory agencies) or any political subdivision of or in the United States that is enacted or becomes effective after the issue date of this Subordinated Note, (2) any proposed change in those laws, rules or regulations that is announced or becomes effective after the issue date of this Subordinated Note, or (3) any official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws, rules, regulations, policies or guidelines with respect thereto that is announced after the issue date of this Subordinated Note, there is more than an insubstantial risk that the Company will not be entitled to treat the Subordinated Notes then outstanding as Tier 2 capital (or its equivalent) for purposes of capital adequacy guidelines of the Federal Reserve Board, as then in effect and applicable to the Company (“Tier 2 Capital”), for so long as any Subordinated Notes are outstanding.  “Tax Event” means the receipt by the Company of an opinion of independent tax counsel experienced in such matters to the effect that as a result of (1) an 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) a judicial decision, administrative action, official administrative pronouncement, ruling, regulatory procedure, regulation, notice or announcement, including any notice or announcement 
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of intent to adopt or promulgate any ruling, regulatory procedure or regulation (any of the foregoing, an “Administrative or Judicial Action”); or (3) an 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, in each case, which change or amendment or challenge becomes effective or which pronouncement, decision or challenge is announced on or after the issue date of this Subordinated Note, there is more than an insubstantial risk that interest payable by the Company on the Subordinated Notes is not, or within ninety (90) days of such opinion, will not be, deductible by the Company, in whole or in part, for United States federal income tax purposes.  “Investment Company Event” means receipt by the Company of an opinion of independent counsel experienced in such matters to the effect that there is more than an insubstantial risk that the Company is or, within 90 days of the date of such legal opinion will be, considered an “investment company” that is required to be registered under the Investment Company Act of 1940, as amended. 
(b)Redemption on or after Fifth Anniversary. On or after December 15, 2026, subject to the provisions of Section 4(f) (Regulatory Approvals) hereof, this Subordinated Note shall be redeemable at the option of and by the Company, in whole or in part from time to time upon any Interest Payment Date, at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date, but in all cases in a principal amount with integral multiples of $1,000. In addition, the Company may redeem all or a portion of the Subordinated Notes, at any time upon the occurrence of a Tier 2 Capital Event, Tax Event or an Investment Company Event. The redemption referenced in this Section 4(b) (Redemption on or after Fifth Anniversary) shall be subject to the receipt of any required regulatory approval.  
(c)Partial Redemption. If less than the then outstanding principal amount of this Subordinated Note is redeemed, (i) a new Subordinated Note shall be issued representing the unredeemed portion without charge to the holder thereof and (ii) such redemption shall be effected on a pro rata basis as to the Noteholders.  For purposes of clarity, upon a partial redemption, a like percentage of the principal amount of every Subordinated Note held by every Noteholder shall be redeemed. 
(d)No Redemption at Option of Noteholder. This Subordinated Note is not subject to redemption at the option of the holder of this Subordinated Note. 
(e)Effectiveness of Redemption. If notice of redemption has been duly given and notwithstanding that this Subordinated Note has been called for redemption but has not yet been surrendered for cancellation, on and after the date fixed for redemption interest shall cease to accrue on the portion of this Subordinated Note called for redemption, this Subordinated Note shall no longer be deemed outstanding with respect to the portion called for redemption and all rights with respect to the portion of this Subordinated Note called for redemption shall forthwith on such date fixed for redemption cease and terminate unless the Company shall default in the payment of the redemption price, except only the right of the holder hereof to receive the amount payable on such redemption, without interest.  For purposes of clarity, any redemption made pursuant to the terms of this Subordinated Note shall be made on a pro rata basis, and , for purposes of a redemption processed through DTC, an a “Pro Rata Pass-Through Distribution of Principal” basis, among all of the Subordinated Notes outstanding at the time thereof.
(f)Regulatory Approvals. Any such redemption shall be subject to receipt of any and all required federal and state regulatory approvals or non-objections, including, but not limited to, the consent of the Federal Reserve.  In the case of any redemption of this Subordinated Note pursuant to paragraph (b) of this Section 4 (Redemption on or after Fifth Anniversary), the Company will give the holder hereof notice of redemption, which notice shall indicate the aggregate principal amount of Subordinated Notes to be redeemed, not less than thirty (30) nor more than sixty (60) calendar days before the redemption date.
(g)Purchase and Resale of the Subordinated Notes. Subject to any required federal and state regulatory approvals and the provisions of this Subordinated Note, the Company shall have the right to purchase any of the Subordinated Notes at any time in the open market, private transactions or otherwise. If the Company purchases any Subordinated Notes, it may, in its discretion, hold, resell or cancel any of the purchased Subordinated Notes.
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5.Global Subordinated Notes.
(a)Provided that applicable depository eligibility requirements are met, the Subordinated Notes owned by Noteholders that are Qualified Institutional Buyers and/or institutional “accredited investors” shall be issued in the form of one or more Global Subordinated Notes (each a “Global Subordinated Note”) registered in the name of DTC or another organization registered as a clearing agency under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and designated as Depositary by the Company or any successor thereto (the “Depositary”) or a nominee thereof and delivered to such Depositary or a nominee thereof.
(b)Notwithstanding any other provision herein, no Global Subordinated Note may be exchanged in whole or in part for Subordinated Notes registered, and no transfer of a Global Subordinated Note in whole or in part may be registered, in the name of any person other than the Depositary for such Global Subordinated Note or a nominee thereof unless (i) such Depositary advises the Company in writing that such Depositary is no longer willing or able to properly discharge its responsibilities as Depositary with respect to such Global Subordinated Note, and no qualified successor is appointed by the Company within ninety (90) days of receipt by the Company of such notice, (ii) such Depositary ceases to be a clearing agency registered under the Exchange Act and no successor is appointed by the Company within ninety (90)  days after obtaining knowledge of such event, (iii) the Company elects to terminate the book-entry system through the Depositary or (iv) an Event of Default (as defined in Section 6 (Events of Default; Acceleration)) shall have occurred and be continuing.  Upon the occurrence of any event specified in clause (i), (ii), (iii) or (iv) of this Section 5(b), the Company or its agent shall notify the Depositary and instruct the Depositary to notify all owners of beneficial interests in such Global Subordinated Note of the occurrence of such event and of the availability of Subordinated Notes to such owners of beneficial interests requesting the same.
(c)If any Global Subordinated Note is to be exchanged for other Subordinated Notes or canceled in part, or if another Subordinated Note is to be exchanged in whole or in part for a beneficial interest in any Global Subordinated Note, then either (i) such Global Subordinated Note shall be so surrendered for exchange or cancellation as provided in this Section 5 or (ii) the principal amount thereof shall be reduced or increased by an amount equal to the portion thereof to be so exchanged or canceled, or equal to the principal amount of such other Subordinated Note to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate adjustment made on the records of the Company or, if applicable, the Company’s registrar and transfer agent (“Registrar”), whereupon the Company or, if applicable, the Registrar, in accordance with the applicable rules and procedures of the Depositary (“Applicable Depositary Procedures”), shall instruct the Depositary or its authorized representative to make a corresponding adjustment to its records.  Upon any such surrender or adjustment of a Global Subordinated Note by the Depositary, accompanied by registration instructions, the Company shall execute and deliver any Subordinated Notes issuable in exchange for such Global Subordinated Note (or any portion thereof) in accordance with the instructions of the Depositary.
(d)Every Subordinated Note executed and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Subordinated Note or any portion thereof shall be executed and delivered in the form of, and shall be, a Global Subordinated Note, unless such Subordinated Note is registered in the name of a person other than the Depositary for such Global Subordinated Note or a nominee thereof.
(e)The Depositary or its nominee, as the registered owner of a Global Subordinated Note, shall be the holder of such Global Subordinated Note for all purposes under this Subordinated Note, and owners of beneficial interests in a Global Subordinated Note shall hold such interests pursuant to Applicable Depositary Procedures. Accordingly, any such owner’s beneficial interest in a Global Subordinated Note shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee or its Depositary participants.  If applicable, the Registrar shall be entitled to deal with the Depositary for all purposes relating to a Global Subordinated Note (including the payment of principal and interest thereon and the giving of instructions or directions by owners of beneficial interests therein and the giving of notices) as the sole holder of the Subordinated Note and shall have no obligations to the owners of beneficial interests therein.  The Registrar shall have no liability in respect of any transfers undertaken by the Depositary.
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(f)The rights of owners of beneficial interests in a Global Subordinated Note shall be exercised only through the Depositary and shall be limited to those established by law and agreements between such owners and the Depositary and/or its participants.
(g)No holder of any beneficial interest in any Global Subordinated Note held on its behalf by a Depositary shall have any rights with respect to such Global Subordinated Note, and such Depositary may be treated by the Company and any agent of the Company as the owner of such Global Subordinated Note for all purposes whatsoever.  Neither the Company nor any agent of the Company will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Subordinated Note or maintaining, supervising or reviewing any records relating to such beneficial ownership interests. Notwithstanding the foregoing, nothing herein shall prevent the Company or any agent of the Company from giving effect to any written certification, proxy or other authorization furnished by a Depositary or impair, as between a Depositary and such holders of beneficial interests, the operation of customary practices governing the exercise of the rights of the Depositary (or its nominee) as holder of any Subordinated Note.
(h)The Company, within thirty (30) calendar days after the receipt of written notice from the Noteholder or any other holder of the Subordinated Notes of the occurrence of an Event of Default with respect to this Subordinated Note, shall mail to all the Noteholders, at their addresses shown on the Security Register (as defined in Section 14 (Registration of Transfer, Security Register) below), such written notice of Event of Default, unless such Event of Default shall have been cured or waived before the giving of such notice as certified by Company in writing.
6.Events of Default; Acceleration. 
Each of the following events shall constitute an “Event of Default”:

(a)the entry of a decree or order for relief in respect of the Company by a court having jurisdiction in the premises in an involuntary case or proceeding under any applicable bankruptcy, insolvency, or reorganization law, now or hereafter in effect of the United States or any political subdivision thereof, and such decree or order will have continued unstayed and in effect for a period of sixty (60) consecutive days;
(b)the commencement by the Company of a voluntary case under any applicable bankruptcy, insolvency or reorganization law, now or hereafter in effect of the United States or any political subdivision thereof, or the consent by the Company to the entry of a decree or order for relief in an involuntary case or proceeding under any such law;
(c)the Company (i) becomes insolvent or is unable to pay its debts as they mature, (ii) makes an assignment for the benefit of creditors, (iii) admits in writing its inability to pay its debts as they mature or (iv) ceases to be a bank holding company or financial holding company under the Bank Holding Company Act of 1956, as amended;
(d)the failure of the Company to pay any installment of interest on any of the Subordinated Notes as and when the same will become due and payable, and the continuation of such failure for a period of fifteen (15) days;
(e)the failure of the Company to pay all or any part of the principal of any of the Subordinated Notes as and when the same will become due and payable;
(f)the liquidation of the Company (for avoidance of doubt, “liquidation” does not include any merger, consolidation, sale of equity or assets or reorganization (exclusive of a reorganization in bankruptcy) of the Company or any of its subsidiaries);
(g)the failure of the Company to perform any other covenant or agreement on the part of the Company contained in the Subordinated Notes, and the continuation of such failure for a period of thirty (30) days after the date on which notice specifying such failure, stating that such notice is a “Notice of Default” hereunder and demanding that the Company remedy the same, will have been given, in the manner set forth in Section 22 (Notices), to the Company by a Noteholder; or 
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(h)the default by the Company under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company having an aggregate principal amount outstanding of at least $25,000,000, whether such indebtedness now exists or is created or incurred in the future, which default (i) constitutes a failure to pay any portion of the principal of such indebtedness when due and payable after the expiration of any applicable grace period or (ii) results in such indebtedness becoming due or being declared due and payable before the date on which it otherwise would have become due and payable without, in the case of clause (i), such indebtedness having been discharged or, in the case of clause (ii), without such indebtedness having been discharged or such acceleration having been rescinded or annulled.
Unless the principal amount of this Subordinated Note already shall have become due and payable, if an Event of Default set forth in Section 6(a) or Section 6(b) above shall have occurred and be continuing, the Noteholder, by notice in writing to the Company, may declare the principal amount of this Subordinated Note to be due and payable immediately and, upon any such declaration, the same shall become and shall be immediately due and payable, and the Company waives demand, presentment for payment, notice of nonpayment, notice of protest, and all other notices.  Notwithstanding the foregoing, because the Company will treat the Subordinated Notes as Tier 2 Capital, upon the occurrence of an Event of Default other than an Event of Default described in Section 6(a) or Section 6(b), no Noteholder may accelerate the Maturity Date of the Subordinated Notes and make the principal of, and any accrued and unpaid interest on, the Subordinated Notes, immediately due and payable. The Company, within forty-five (45) calendar days after the receipt of written notice from any Noteholder of the occurrence of an Event of Default with respect to this Subordinated Note, shall mail to all Noteholders, at their addresses shown on the Security Register (as defined in Section 14 (Registration of Transfer, Security Register) below), such written notice of Event of Default, unless such Event of Default shall have been cured or waived before the giving of such notice as certified by the Company in writing.

7.Failure to Make Payments. In the event of an Event of Default under Section 6(c), Section 6(d) or Section 6(e) above, the Company will, upon demand of the Noteholder, pay to the Noteholder the amount then due and payable on this Subordinated Note for principal and interest (without acceleration of the Subordinated Note in any manner), with interest on the overdue principal and interest at the per annum rate borne by this Subordinated Note, to the extent permitted by applicable law.  If the Company fails to pay such amount upon such demand, the holder of this Subordinated Note may, among other things, institute a judicial proceeding for the collection of the sums so due and unpaid and such amount as shall be sufficient to cover the reasonable costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of such Noteholder, its agents and counsel, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company and collect the amounts adjudged or decreed to be payable in the manner provided by law out of the property of the Company.
Upon the occurrence of a failure by the Company to make any required payment of principal or interest on this Subordinated Note or an Event of Default, until such Event of Default is cured by the Company or waived by the Noteholders in accordance with Section 18 (Waiver and Consent) hereof, except as may be required by any federal or state bank regulatory agency, the Company shall not: (a) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Company’s capital stock; (b) make any payment of principal or interest or premium, if any, on or repay, repurchase or redeem any indebtedness of the Company that ranks equal with or junior to the Subordinated Notes; or (c) make any payments under any guarantee that ranks equal with or junior to the Subordinated Notes, other than: (i) any dividends or distributions in shares of, or options, warrants or rights to subscribe for or purchase shares of, any class of the Company’s common stock; (ii) any declaration of a non-cash dividend in connection with the implementation of a shareholders’ rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto; (iii) as a result of a reclassification of the Company’s capital stock or the exchange or conversion of one class or series of the Company’s capital stock for another class or series of the Company’s capital stock; (iv) the purchase of fractional interests in shares of the Company’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged; or (v) purchases of any class of the Company’s common stock related to the issuance of common stock or rights under any benefit plans for the Company’s directors, officers or employees or any of the Company’s dividend reinvestment plans (the foregoing clauses (i) through (v) are collectively referred to as the “Permitted Dividends”).

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8.Affirmative Covenants of the Company.
(a)Notice of Certain Events.  To the extent permitted by applicable statute, rule or regulation, unless the Company is then subject to Section 13 or 15(d) of the Exchange Act, the Company shall provide written notice to the Noteholder of the occurrence of any of the following events as soon as practicable, but in no event later than fifteen (15) Business Days following the Company becoming aware of the occurrence of such event:
(i)The Company or any of its banking subsidiaries become less than “well-capitalized” as defined under the then applicable regulatory capital standards;
(ii)The Company, or any of the Company’s subsidiaries, or any officer of the Company (in such capacity), becomes subject to any formal, written regulatory enforcement action (as defined by the applicable state or federal bank regulatory authority);
(iii)The dollar amount of any nonperforming assets of the Company on a consolidated basis as of the end of a given fiscal quarter as a percentage of the Company’s total loan portfolio exceeds four percent (4%); 
(iv)The appointment, resignation, removal or termination of the chief executive officer or president of the Company or the Bank; or
(v)There is a change in ownership of 25% or more of the outstanding securities of the Company entitled to vote for the election of directors.
(b)Payment of Principal and Interest. The Company covenants and agrees for the benefit of the Noteholder that it will duly and punctually pay the principal of, and interest on, this Subordinated Note, in accordance with the terms hereof. 
(c)Maintenance of Office. The Company will maintain an office or agency in the Borough of Manhattan, New York, New York or the City of Carmichaels, Pennsylvania, where Subordinated Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Company in respect of the Subordinated Notes may be served.
        The Company may also from time to time designate one or more other offices or agencies where the Subordinated Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided that no such designation or rescission will in any manner relieve the Company of its obligation to maintain an office or agency in the State of New York or the Commonwealth of Pennsylvania.  The Company will give prompt written notice to the Noteholders of any such designation or rescission and of any change in the location of any such other office or agency.

(d)Corporate Existence. The Company will do or cause to be done all things necessary to preserve and keep in full force and effect: (i) the corporate existence of the Company; (ii) the existence (corporate or other) of each subsidiary; and (iii) the rights (constituent governing documents and statutory), licenses and franchises of the Company and each of its subsidiaries; provided, however, that the Company will not be required to preserve the existence (corporate or other) of any of its subsidiaries or any such right, license or franchise of the Company or any of its subsidiaries if the Board of Directors of the Company determines that the preservation thereof is no longer desirable in the conduct of the business of the Company and its subsidiaries taken as a whole and that the loss thereof will not be disadvantageous in any material respect to the Noteholders.
(e)Maintenance of Properties. The Company will, and will cause each subsidiary to, cause all its properties used or useful in the conduct of its business to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that nothing in this Section 8(d) will prevent the Company or any subsidiary from discontinuing the operation and maintenance of any of their respective properties if such discontinuance is, in the reasonable judgment of the Board of 
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Directors of the Company or of any subsidiary, as the case may be, desirable in the conduct of its business.
(f)Transfer of Voting Stock. The Company will not, nor will it permit the Bank to, directly or indirectly, sell, assign, transfer or otherwise dispose of any shares of, securities convertible into, or options, warrants or rights to subscribe for or purchase shares of, Voting Stock (as defined below) of the Bank or any successor thereof or any subsidiary of the Company that is a depository institution and that has consolidated assets equal to 30% or more of the Company’s consolidated assets (“Material Subsidiary”), nor will the Company permit the Material Subsidiary to issue any shares of, or securities convertible into, or options, warrants or rights to subscribe for or purchase shares of, Voting Stock of the Material Subsidiary if, in each case, after giving effect to any such transaction and to the issuance of the maximum number of shares of Voting Stock of the Material Subsidiary issuable upon the exercise of all such convertible securities, options, warrants or rights, the Company would cease to own, directly or indirectly, at least 80% of the issued and outstanding Voting Stock of the Material Subsidiary.  “Voting Stock” means outstanding shares of capital stock having voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power because of default in dividends or other default.
(g)Waiver of Certain Covenants. The Company may omit in any particular instance to comply with any term, provision or condition set forth in Section 8(b) (Maintenance of Office), Section 8(c) (Corporate Existence), Section 8(d) (Maintenance of Properties), or Section 8(e) (Transfer of Voting Stock) above, with respect to this Subordinated Note if before the time for such compliance the Noteholders of at least a majority in aggregate principal amount of the outstanding Subordinated Notes, by act of such Noteholders, either will waive such compliance in such instance or generally will have waived compliance with such term, provision or condition, but no such waiver will extend to or affect such term, provision or condition except to the extent so expressly waived, and, until such waiver will become effective, the obligations of the Company in respect of any such term, provision or condition will remain in full force and effect.
(h)Tier 2 Capital.  Whether or not the Company is subject to consolidated capital requirements under applicable regulations of the Federal Reserve, if all or any portion of the Subordinated Notes ceases to be deemed to be Tier 2 Capital, other than due to the limitation imposed on the capital treatment of subordinated debt during the five (5) years immediately preceding the Maturity Date of the Subordinated Notes, the Company will promptly notify the Noteholders and thereafter, the Company and the Noteholders will work together in good faith to execute and deliver all agreements as reasonably necessary in order to restructure the applicable portions of the obligations evidenced by the Subordinated Notes to qualify as Tier 2 Capital; provided, however, that nothing contained in this Section 8(g) (Tier 2 Capital) shall limit the Company’s right to redeem the Subordinated Notes upon the occurrence of a Tier 2 Capital Event pursuant to Section 4(a) (Redemption Before Fifth Anniversary) or Section 4(b) (Redemption on or after Fifth Anniversary).
(i)Compliance with Laws. The Company and each Subsidiary of the Company shall comply with the requirements of all laws, regulations, orders and decrees applicable to it or its properties, except for such noncompliance that would not reasonably be expected to have a Material Adverse Effect (as such term is defined in the Purchase Agreement) on the Company and its subsidiaries taken as a whole.
(j)Taxes and Assessments. The Company shall punctually pay and discharge all material taxes, assessments, and other governmental charges or levies imposed upon it or upon its income or upon any of its properties; provided, that no such taxes, assessments or other governmental charges need be paid if they are being contested in good faith by the Company.
(k)Financial Statements.

            (i)    Unless the Company is then subject to Section 13 or 15(d) of the Exchange Act, not later than forty-five (45) days following the end of each semi-annual or quarterly period, as applicable, for which the Company has not submitted a Consolidated Financial Statements for Holding Companies Reporting Form FR Y-9C to the Federal Reserve, upon request, the Company shall provide the Noteholder with a copy of the Company’s unaudited parent company only balance sheet and statement of income (loss) for and as of the end of such immediately preceding fiscal quarter, prepared in 
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accordance with past practice. Quarterly financial statements, if required herein, shall be unaudited and need not comply with GAAP. 

            (ii)    Unless the Company is then subject to Section 13 or 15(d) of the Exchange Act, not later than ninety (90) days from the end of each fiscal year, upon request, the Company shall provide the Noteholder with copies of the Company’s audited financial statements consisting of the consolidated balance sheet of the Company as of the fiscal year end and the related statements of income (loss), stockholders’ equity and cash flows for the fiscal year then ended.  Such financial statements shall be prepared in accordance with GAAP applied on a consistent basis throughout the period involved.

(l)    Company Statement as to Compliance. The Company will deliver to the Noteholders, within one hundred twenty (120) days after the end of each fiscal year, an Officer’s Certificate covering the preceding fiscal year, stating whether or not, to the best of the certifying officer’s knowledge, the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Subordinated Note (without regard to notice requirements or periods of grace) and if the Company will be in default, specifying all such defaults and the nature and status thereof of which such officer may have knowledge.
9.Negative Covenants of the Company.
(a)Limitation on Dividends. The Company shall not declare or pay any dividend or make any distribution on capital stock or other equity securities of any kind of the Company if the Company is not “well capitalized” for regulatory purposes immediately before or after giving effect to the declaration of such dividend or distribution, except for Permitted Dividends.
(b)Merger or Sale of Assets. The Company shall not merge into another entity, effect a Change in Bank Control (as defined below) or convey, transfer or lease substantially all of its properties and assets to any person, unless:
(i)the continuing entity into which the Company is merged or the person which acquires by conveyance or transfer or which leases substantially all of the properties and assets of the Company shall be a corporation, association or other legal entity organized and existing under the laws of the United States of America, any State thereof or the District of Columbia and expressly assumes the due and punctual payment of the principal of and any premium and interest on the Subordinated Notes according to their terms, and the due and punctual performance of all covenants and conditions hereof on the part of the Company to be performed or observed; and
(ii)immediately after giving effect to such transaction, no Event of Default (as defined above), and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing.
        “Change in Bank Control” means the sale, transfer, lease or conveyance by the Company, or an issuance of equity securities by the Bank other than to the Company, in either case resulting in ownership by the Company of less than 50% of the Bank.

10.Denominations. The Subordinated Notes are issuable only in registered form without interest coupons in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof.
11.Charges and Transfer Taxes. No service charge will be made for any registration of transfer or exchange of this Subordinated Note, or any redemption or repayment of this Subordinated Note, or any conversion or exchange of this Subordinated Note for other types of securities or property, but the Company may require payment of a sum sufficient to pay all taxes, assessments or other governmental charges that may be imposed in connection with the transfer or exchange of this Subordinated Note from the Noteholder requesting such transfer or exchange.
12.Payment Procedures. Payment of the principal and interest payable on the Maturity Date will be made by check, by wire transfer or by Automated Clearing House (ACH) transfer in immediately available funds to a bank account in the United States designated by the registered 
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Noteholder if such Noteholder shall have previously provided wire instructions to the Company, upon presentation and surrender of this Subordinated Note at the Payment Office (as defined in Section 22 (Notices) below) or at such other place or places as the Company shall designate by notice to the registered Noteholders as the Payment Office, provided that this Subordinated Note is presented to the Company in time for the Company to make such payments in such funds in accordance with its normal procedures.  Payments of interest (other than interest payable on the Maturity Date) shall be made on each Interest Payment Date by wire transfer in immediately available funds or check mailed to the registered Noteholder, as such person’s address appears on the Security Register. Interest payable on any Interest Payment Date shall be payable to the Noteholder in whose name this Subordinated Note is registered at the close of business on the fifteenth (15th) calendar day before the applicable Interest Payment Date, without regard to whether such date is a Business Day, except that interest not paid on the Interest Payment Date, if any, will be paid to the holder in whose name this Subordinated Note is registered at the close of business on a special record date fixed by the Company (a “Special Record Date”), notice of which shall be given to the Noteholder not less than ten (10) calendar days before such Special Record Date.  To the extent permitted by applicable law, interest shall accrue, at the rate at which interest accrues on the principal of this Subordinated Note, on any amount of principal or interest on this Subordinated Note not paid when due. All payments on this Subordinated Note shall be applied first against costs and expenses of the Noteholder, if any, for which the Company is liable under this Subordinated Note; then against interest due hereunder; and then against principal due hereunder. The Noteholder acknowledges and agrees that the payment of all or any portion of the outstanding principal amount of this Subordinated Note and all interest hereon shall be pari passu in right of payment and in all other respects to the other Subordinated Notes. If the Noteholder receives payments in excess of its pro rata share of the Company’s payments to the holders of all of the Subordinated Notes, then the Noteholder shall hold in trust all such excess payments for the benefit of the other Noteholders and shall pay such amounts held in trust to such other holders upon demand by such holders.
13.Form of Payment. Payments of principal of and interest on this Subordinated Note shall be made in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts.
14.Registration of Transfer, Security Register.  Except as otherwise provided herein, this Subordinated Note is transferable in whole or in part, and may be exchanged for a like aggregate principal amount of Subordinated Notes of other authorized denominations, by the Noteholder in person, or by its attorney duly authorized in writing, at the Payment Office or the offices of the Registrar.  The Company or its agent (the “Registrar”) shall maintain a register providing for the registration of the Subordinated Notes and any exchange or transfer thereof (the “Security Register”). Upon surrender or presentation of this Subordinated Note for exchange or registration of transfer, the Company or the Registrar shall execute and deliver in exchange therefor a Subordinated Note or Subordinated Notes of like aggregate principal amount, each in a minimum denomination of $100,000 or any amount in excess thereof which is an integral multiple of $1,000 (and, in the absence of an opinion of counsel satisfactory to the Company to the contrary, bearing the restrictive legend(s) set forth hereinabove) and that is or are registered in such name or names requested by the Noteholder.  Any Subordinated Note presented or surrendered for registration of transfer or for exchange shall be duly endorsed and accompanied by a written instrument of transfer in such form as is attached hereto and incorporated herein, duly executed by the Noteholder or its attorney duly authorized in writing, with such tax identification number or other information for each person in whose name a Subordinated Note is to be issued, and accompanied by evidence of compliance with any restrictive legend(s) appearing on such Subordinated Note or Subordinated Notes as the Company may reasonably request to comply with applicable law.  No exchange or registration of transfer of this Subordinated Note shall be made on or after (i) the fifteenth (15th) day immediately preceding the Maturity Date or (ii) the due delivery of notice of redemption.
15.Successors and Assigns. This Subordinated Note shall be binding upon the Company and inure to the benefit of the Noteholder and its respective successors and permitted assigns. The Noteholder may assign all, or any part of, or any interest in, the Noteholder’s rights and benefits hereunder only to the extent and in the manner permitted by the terms of this Note.  To the extent of any such assignment, such assignee shall have the same rights and benefits against the Company and shall agree to be bound by and to comply with the terms and conditions of the Purchase Agreement as it would have had if it were the Noteholder hereunder.
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16.Priority. The Subordinated Notes rank pari passu among themselves and pari passu, in the event of any insolvency proceeding, dissolution, assignment for the benefit of creditors, reorganization, restructuring of debt, marshaling of assets and liabilities or similar proceeding or any liquidation or winding up of the Company, with all other present or future unsecured subordinated debt obligations of the Company, except any unsecured subordinated debt that, pursuant to its express terms, is senior or subordinate in right of payment to the Subordinated Notes.
17.Ownership. Before due presentment of this Subordinated Note for registration of transfer, the Company may treat the holder in whose name this Subordinated Note is registered in the Security Register as the absolute owner of this Subordinated Note for receiving payments of principal and interest on this Subordinated Note and for all other purposes whatsoever, whether or not this Subordinated Note be overdue, and the Company shall not be affected by any notice to the contrary.
18.Waiver and Consent. 
(a)This Subordinated Note may be amended or waived pursuant to, and in accordance with, the provisions set forth herein and as set forth in Section 7.3 of the Purchase Agreement. Any such consent or waiver given by the Noteholder shall be conclusive and binding upon such Noteholder and upon all subsequent holders of this Subordinated Note and of any Subordinated Note issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Subordinated Note.  No delay or omission of the Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Any insured depository institution which shall be a Noteholder or which otherwise shall have any beneficial ownership interest in this Subordinated Note shall, by its acceptance of such Subordinated Note (or beneficial interest therein), be deemed to have waived any right of offset with respect to the indebtedness evidenced thereby.
(b)No waiver or amendment of any term, provision, condition, covenant or agreement in the Subordinated Notes shall be effective except with the consent of the Company and the Noteholders holding not less than fifty percent (50%) in aggregate principal amount (excluding any Subordinated Notes held by the Company or any of its Affiliates) of the Subordinated Notes at the time outstanding; provided, however, that without the consent of each Noteholder of an affected Subordinated Note, no such amendment or waiver may:  (i) reduce the principal amount of any Subordinated Note; (ii) reduce the rate of or change the time for payment of interest on any Subordinated Note; (iii) extend the maturity of any Subordinated Note; (iv) change the currency in which payment of the obligations of the Company under the Subordinated Notes are to be made; (v) lower the percentage of aggregate principal amount of outstanding Subordinated Notes required to approve any amendment of the Subordinated Notes; (vi) make any changes to Section 4(c) (Partial Redemption), Section 6 (Events of Default; Acceleration), Section 7 (Failure to Make Payments), Section 16 (Priority), or Section 18 (Waiver and Consent) of the Subordinated Notes that adversely affects the rights of any Noteholder; or (vii) disproportionately affect the rights of any of the holders of the then outstanding Subordinated Notes.  Notwithstanding the foregoing, the Company may amend or supplement the Subordinated Notes without the consent of the Noteholders to cure any ambiguity, defect or inconsistency or to provide for uncertificated Subordinated Notes in addition to or in place of certificated Subordinated Notes, or to make any change that does not adversely affect the rights of any Noteholder of any of the Subordinated Notes.  No failure to exercise or delay in exercising, by any Noteholder of the Subordinated Notes, of any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude any other or further exercise thereof, or the exercise of any other right or remedy provided by law, except as restricted hereby.  The rights and remedies provided in this Subordinated Note are cumulative and not exclusive of any right or remedy provided by law or equity. No notice or demand on the Company in any case shall, in itself, entitle the Company to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Noteholders to any other or further action in any circumstances without notice or demand.  No consent or waiver, expressed or implied, by the Noteholders to or of any breach or default by the Company in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of the same or any other obligations of the Company hereunder.  Failure on the part of the Noteholders to complain of any acts or failure to act or to declare an 
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Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by the Noteholders of their rights hereunder or impair any rights, powers or remedies on account of any breach or default by the Company.
19.Absolute and Unconditional Obligation of the Company. 
(a)No provisions of this Subordinated Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal and interest on this Subordinated Note at the times, places and rate, and in the coin or currency, herein prescribed.
(b)No delay or omission of the Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.
(c)Any insured depository institution which shall be a Noteholder or which otherwise shall have any beneficial ownership interest in this Subordinated Note shall, by its acceptance of such Note (or beneficial interest therein), be deemed to have waived any right of offset with respect to the indebtedness evidenced thereby.
20.No Sinking Fund; Convertibility. This Subordinated Note is not entitled to the benefit of any sinking fund. This Subordinated Note is not convertible into or exchangeable for any of the equity securities, other securities or assets of the Company or any subsidiary of the Company.
21.No Recourse Against Others. No recourse under or upon any obligation, covenant or agreement contained in this Subordinated Note, or for any claim based thereon or otherwise in respect thereof, will be had against any past, present or future shareholder, employee, officer, or director, as such, of the Company or of any predecessor or successor, either directly or through the Company or any predecessor or successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of this Subordinated Note by the Noteholder and as part of the consideration for the issuance of this Subordinated Note.
22.Notices. All notices to the Company under this Subordinated Note shall be in writing and addressed to the Company at 100 N. Market Street, Carmichaels, Pennsylvania 15320, Attention: Chief Financial Officer, or to such other address as the Company may notify to the Noteholder (the “Payment Office”). All notices to the Noteholders shall be in writing and sent by first-class mail to each Noteholder at his or its address as set forth in the Security Register.
23.Further Issues. The Company may, without the consent of the Noteholders, create and issue additional notes having the same terms and conditions of the Subordinated Notes (except for the Issue Date and issue price) so that such further notes shall be consolidated and form a single series with the Subordinated Notes.
24.Governing Law; Interpretation. THIS SUBORDINATED NOTE WILL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF. THIS SUBORDINATED NOTE IS INTENDED TO MEET THE CRITERIA FOR QUALIFICATION OF THE OUTSTANDING PRINCIPAL AS TIER 2 CAPITAL UNDER THE REGULATORY GUIDELINES OF THE FEDERAL RESERVE, AND THE TERMS HEREOF SHALL BE INTERPRETED IN A MANNER TO SATISFY SUCH INTENT.
[Signature Page Follows]

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IN WITNESS WHEREOF, the undersigned has caused this Subordinated Note to be duly executed and attested.
CB Financial Services, Inc.
By:    _______________________________________
Name:    John H. Montgomery
Title:    President and Chief Executive Officer
ATTEST:
__________________________________
Name:    Elizabeth A. Calvario
Title:    Corporate Secretary

[Signature Page to Subordinated Note]

PAYING AGENT’S CERTIFICATE OF AUTHENTICATION

    This is one of the Global Note(s) issued for the 3.875% Fixed to Floating Rate Subordinated Notes due December 15, 2031 issued by CB Financial Services, Inc. pursuant to the Note Purchase 
    

Agreement dated December 9, 2021. This Certificate of Authentication must accompany any security issued pursuant to the subordinated note offering in order to be a valid security.

                        COMPUTERSHARE TRUST COMPANY, N.A.

                                                
                        Date:                        

[Paying Agent Certificate of Authentication]
    

ASSIGNMENT FORM
To assign this Subordinated Note, fill in the form below: (I) or (we) assign and transfer this Subordinated Note to: 
    
(Print or type assignee’s name, address and zip code) 
    
(Insert assignee’s social security or tax I.D. No.)
and irrevocably appoint      agent to transfer this Subordinated Note on the books of the Company. The agent may substitute another to act for him.

Date:     Your signature:    
(Sign exactly as your name appears on the face of this Subordinated Note)
Tax Identification No:    
Signature Guarantee:    
(Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).
The undersigned certifies that it [is / is not] an Affiliate of the Company and that, to its knowledge, the proposed transferee [is / is not] an Affiliate of the Company.

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

CHECK ONE BOX BELOW:
									
	□	(1)	acquired for the undersigned’s own account, without transfer;
	□	(2)	transferred to the Company;
	□	(3)	transferred in accordance and in compliance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”);
	□	(4)	transferred under an effective registration statement under the Securities Act;
	□	(5)	transferred in accordance with and in compliance with Regulation S under the Securities Act;
	□	(6)	transferred to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act);
	□	(7)	transferred to an “accredited investor” (as defined in Rule 501(a)(4) under the Securities Act), not referred to in item (6) that has been provided with the information designated under Section 4(d) of the Securities Act; or
	□	(8)	transferred in accordance with another available exemption from the registration requirements of the Securities Act.

Unless one of the boxes is checked, the Company will refuse to register this Subordinated Note in the name of any person other than the registered holder thereof; provided, however, that if box (5), (6), (7) or (8) is checked, the Company may require, before registering any such transfer of this Subordinated Note, in its sole discretion, such legal opinions, certifications and other information as the Company may reasonably request to confirm that such transfer is being made pursuant to an exemption from, or in a 
    

transaction not subject to, the registration requirements of the Securities Act such as the exemption provided by Rule 144 under such Act.
Signature:    

Signature Guarantee:    
(Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Exchange Act Rule 17Ad-l5).
TO BE COMPLETED BY PURCHASER IF BOX (1) OR (3) ABOVE IS CHECKED.
The undersigned represents and warrants that it is purchasing this Subordinated Note for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the undersigned's foregoing representations in order to claim the exemption from registration provided by Rule 144A.

    

EXHIBIT B

OPINION OF COUNSEL

1.Each of the Company and the Bank (i) has been organized or formed, as the case may be, is validly existing and is in good standing under the laws of its jurisdiction of organization, (ii) has all requisite corporate power and authority to carry on its business and to own, lease and operate its properties and assets and (iii) is duly qualified or licensed to do business and is in good standing as a foreign corporation, partnership or other entity as the case may be, authorized to do business in each jurisdiction in which the nature of such businesses or the ownership or leasing of such properties requires such qualification, except where the failure to be so qualified would not, individually or in the aggregate, have a Material Adverse Effect.
2.The Company is a registered bank holding company under the Bank Holding Company Act of 1956, as amended.
3.The deposit accounts of the Bank are insured by the Federal Deposit Insurance Corporation under the provisions of the Federal Deposit Insurance Act.
4.The Company has all necessary corporate power and authority to execute, deliver and perform its obligations under the Transaction Documents to which it is a party and to consummate the transactions contemplated by the Transaction Documents.
5.The Agreement has been duly and validly authorized, executed and delivered by the Company.  The Agreement constitutes a legal valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, receivership, moratorium, fraudulent conveyance, fraudulent transfer or other similar laws now or hereafter in effect relating to creditors’ rights generally and (ii) general principles of equity (whether applied by a court of law or equity) and the discretion of the court before which any proceeding therefor may be brought.
6.The execution and delivery by the Company of, and the performance by the Company of its agreements and obligations under, the Transaction Documents do not (i) to our knowledge, violate any applicable provisions of the Pennsylvania Associations Code, (ii) to our knowledge, violate any court order or judgment of any agency or court of the Commonwealth of Pennsylvania having jurisdiction over the Company and known to us, or (iii) violate the Articles of Incorporation or Bylaws of the Company, each as currently in effect.
7.The Subordinated Notes have been duly and validly authorized by the Company and when issued and delivered to and paid for by the Purchasers in accordance with the terms of the Agreement, and when duly executed, authenticated, issued and delivered, will constitute legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, receivership, moratorium, fraudulent conveyance, fraudulent transfer or other similar laws now or hereafter in effect relating to creditors’ rights generally and (ii) general principles of equity (whether applied by a court of law or equity) and the discretion of the court before which any proceeding therefor may be brought.
8.Assuming the accuracy of the representations and warranties of each of the Purchasers set forth in the Agreement and of D.A. Davidson & Co. in its engagement letter with the Company, the Subordinated Notes to be issued and sold by the Company to the Purchasers pursuant to the Agreement will be issued and sold in a transaction exempt from the registration requirements of the Securities Act.
B-1

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