Document:

Exhibit 10.1

 

CONFIDENTIAL

March 8, 2021

Francis J. Leto

[Intentionally omitted]

Dear Frank:

As
you are aware, Bryn Mawr Bank Corporation (“BMBC”), is entering into a merger agreement with WSFS Financial
Corporation (the “Merger Agreement”), pursuant to which WSFS Financial Corporation will acquire BMBC and its
wholly owned subsidiary, Bryn Mawr Bank (the “Transaction”). Following the closing of the Transaction (the
“Closing Date”), BMBC’s operations, including the operations of BMBC Bank, will be merged with those
of WSFS Financial Corporation and Wilmington Savings Fund Society, FSB (collectively, “WSFS”). References to
“BMBC” in this offer letter refer to BMBC or any affiliate of BMBC (including BMBC Bank).

In
anticipation of the Transaction, you and WSFS have agreed that effective as of the Closing Date, and subject to our
customary interview and onboarding process, you shall be designated to serve as a member of the boards of directors of WSFS
Financial Corporation and Wilmington Savings Fund Society, FSB (collectively the “WSFS Boards”) and that
the relationship between you and WSFS shall be governed by the terms and conditions of this letter agreement (this
“Letter”). Importantly, your designation to serve as a member of the WSFS Boards, and the terms and
conditions of this Letter, are contingent on the closing of the Transaction and, unless you are terminated without Cause (as
defined in your BMBC Executive Change-of-Control Severance Agreement, dated as of November 2, 2009 (the “BMBC CIC
Agreement”)), your continued employment with BMBC through the Closing Date. Unless effective earlier, your
termination from employment will be effective as of the closing.

1.             Term; Positions;
Location.

a.             Agreement Term. Except as otherwise set forth below, the terms and conditions contained in this Letter shall be effective
during the Agreement Term. “Agreement Term” shall be the period beginning on the Closing Date and ending on
the thirty-six month anniversary of the Closing Date.

b.             Directorship.
You shall be designated to serve as a member of the WSFS Boards. As a member of the WSFS Boards, you shall devote such time
and efforts as is consistent with the requirements and expectations of WSFS for members of the WSFS Boards generally. Your
position on the WSFS Boards shall terminate upon your cessation of service on the WSFS Boards as a result of resignation,
removal or otherwise. For the avoidance of doubt, nothing in this Letter, including the length of the Agreement Term, is
intended to limit, restrict, modify or otherwise affect the rights of the stockholders and directors, as applicable, to
appoint, elect or remove directors in accordance with the terms of the certificate of incorporation or by-laws of
WSFS.

    	 

    	 

    

c.            
Location and Administrative Assistant. You may continue to use your BMBC office for up to six months following the Closing
Date. During this time, your current assistant, Mary Bradley, will support you and WSFS will continue to employ Ms. Bradley for
at least 12 months following the Closing Date at a base salary that is no less than the base salary provided to Ms. Bradley immediately
prior to the Closing Date.

2.             Payments and
Benefits.

a.           
Board Fees. During the period that you serve as a member of the WSFS Boards, WSFS shall pay to you such fees as are
generally paid to other members of the WSFS Boards.

b.     
      Reimbursements. WSFS shall reimburse you for reasonable and customary out-of-pocket expenses incurred by you in connection
with the performance of services pursuant to this Letter in accordance with WSFS’s standard reimbursement policies applicable
to members of the WSFS Boards.

c.      
     Additional Consideration. As additional consideration for your agreements and undertakings in this Letter, WSFS shall
pay you $500,000 (the “Additional Consideration”) in a lump sum within thirty days following the Closing Date.

3.             Restrictive
Covenants.

a.             Non-Competition
and Non-Solicitation.

i.               You
agree that during the Restricted Period (as defined below) you shall not, anywhere where WSFS, BMBC or any of their affiliates
conduct business of as of the Closing, (1) engage in or actively prepare to engage in, as a director, officer, employee, consultant,
or advisor, the business of wealth management services or trust services in any capacity, including duties and responsibilities
similar to those you have undertaken for WSFS, BMBC or any of their affiliates, (2) own, invest in or lend money to any entity
that engages in the business described in clause (1); provided, however, that this clause (2) shall not prohibit you from owning,
solely as a passive investment, up to 5% of any publicly traded company, (3) render competing services to, or with respect to
such services, solicit, any client of WSFS, BMBC or any of their affiliates for whom you performed services on behalf of WSFS,
BMBC or their affiliates, or (4) render competing services to, or with respect to such services, solicit, any potential client
of WSFS, BMBC or their affiliates with whom you had contact on behalf of WSFS, BMBC or their affiliates.

ii.     
      You further agree that during the Restricted Period you shall not, anywhere within one hundred miles of Bryn Mawr, Pennsylvania,
(1) engage in or actively prepare to engage in, as a director, officer, employee, consultant, or advisor, the business of commercial
or consumer banking or lending services in any capacity or (2) own, invest in or lend money to any entity that engages in the
business described in clause (1); provided, however, that this clause (2) shall not prohibit you from owning, solely as a passive
investment, up to 5% of any publicly traded company.

    	2

    	 

    

.                
For clarity, your obligations under paragraphs (3)(a)(i) and 3(a)(ii), above, shall not prohibit you from participating
in, consulting for, or otherwise engaging with a private equity firm or hedge fund, regardless of investment type, provided that,
in connection with such engagement, you do not consult for or with respect to any wealth management or trust services business
operating within 100 miles of Bryn Mawr, Pennsylvania, in which such firm or fund is invested or may invest.

i.                You
further agree that during the Restricted Period you shall not, on your own behalf or on behalf of any person or entity, other
than WSFS and its affiliates, directly or indirectly solicit for competitive purposes, or otherwise solicit with respect to wealth
management services, any person or entity who is or was a current or prospective client of BMBC during the last two years of your
employment with BMBC (“BMBC Clients”) or a current or prospective client of WSFS or any of its affiliates during
your service as a director to WSFS, provided that you shall not be in breach of this paragraph 3(a)(iv) with respect to solicitation
of any clients or prospective clients of WSFS or its affiliates with whom you had no contact through WSFS or BMBC, if, upon written
notice from WSFS, you promptly cease such solicitation and cooperate with WSFS to cure such solicitation, if curable.

ii.              
You further agree that during the Restricted Period, you shall not solicit, attempt to solicit, hire or participate in
the recruitment of any employee of WSFS or its affiliates, provided that the placement of a general advertisement not directed
at employees of WSFS or its affiliates shall not violate this covenant. This restriction shall only apply to anyone who is then,
or was within six months prior to such solicitation, attempt, hiring or recruitment, an employee of WSFS, BMBC or their affiliates.
Notwithstanding the foregoing, the solicitation and/or hiring of Mary Bradley, your current administrative assistant, shall not
be a violation of this paragraph 3(a)(v).

b.             Non-Disclosure
of Confidential Information. You covenant and agree that the Confidential Information (as defined below) is a valuable, special,
and unique asset of BMBC and WSFS. You will use Confidential Information solely for purposes of performing your duties for WSFS,
and you will return any and all Confidential Information in your possession upon the request of WSFS at any time. You further
agree that you will not use or disclose to others any Confidential Information, except as authorized in writing by WSFS. You further
agree that WSFS owns the Confidential Information and that you have no rights, title, or interest in any of the Confidential Information.
You further agree that your confidentiality obligations described herein shall continue for so long as the Confidential Information
remains confidential and shall not apply to any information that becomes generally known to the public through no fault or action
of your own. Notwithstanding this paragraph 3(b), nothing in this Letter shall prohibit you from reporting possible violations
of law to a governmental agency or entity or require you to seek authorization or notify WSFS if you makes such reports. You are
hereby advised that you may be entitled to immunity from liability for certain disclosures of trade secrets under the Defend Trade
Secrets Act, 18 USC § 1833(b). The provisions of this paragraph 3(b) shall survive the expiration or termination of the Agreement
Term for any reason.

    	3

    	 

    

c.             Acknowledgments.
By signing this Letter, you acknowledge and agree that the restrictions contained in this paragraph 3 are no broader than are
necessary to protect WSFS’s legitimate business interests, are reasonable in both scope and duration, and do not unduly
restrict your ability to pursue your chosen livelihood. You further acknowledge (i) that WSFS would not have entered into the
Merger Agreement, (ii) that WSFS would not have agreed to this offer to designate you as a member of the WSFS Boards and the
other terms and conditions in this Letter, including the provision of the Additional Consideration, and (iii) that WSFS would
not have agreed to provide you with access to Confidential Information, if you did not agree to the provisions of
this paragraph 3. Additionally, you acknowledge that you will receive certain benefits in connection with the Transaction,
including payments in respect of the BMBC equity you hold.

d.           
Reformation and Enforceability. It is the intention of the parties that if any of the restrictions set forth in this
paragraph 3 are found by a court of competent jurisdiction to be overly broad, unreasonable, or otherwise unenforceable then these
restrictions shall be modified and enforced to the greatest extent that the court deems permissible. Each of the obligations in
this paragraph 3 are independent, separable and enforceable independent of each other.

e.      
      Definitions. For the purposes of this Letter, including this paragraph 3:

i.           
“Confidential Information” shall mean any and all trade secrets, confidential and proprietary information,
and all other information and data of WSFS and its affiliates (inclusive of predecessor companies that have been acquired by WSFS,
including BMBC) that is generally unknown to third persons who could derive economic value from its use or disclosure including,
but not limited to, non-public customer information, including customer lists, customer requirements, customer needs, customer
purchasing histories, and customer sales trends; product and services cost pricing and varying supplies and vendor information
including costs, discount and rebate programs, and logistics information; and operational, financial, and marketing information
propriety to or held confidential by WSFS. Confidential Information may be contained in writing or in any other tangible medium
of expression, including work product created by you in rendering services for WSFS; provided, however, that the term “Confidential
Information” does not include any information that (1) is now in or subsequently enters the public domain other than as
a result of your violation of a confidentiality obligation to WSFS, BMBC or their affiliates or (2) is lawfully communicated to
you by a third party, free of any confidential obligation, subsequent to the time of communication thereof by, through or on behalf
of WSFS.

ii.           
Restricted Period: “Restricted Period” shall mean the period beginning on the Closing Date and ending
at the expiration of the Agreement Term, regardless of when your service as a director ends.

4.             Contingent on Closing. As noted above, payment of the Additional Consideration and all other terms and conditions contained
in this Letter are contingent on the closing of the Transaction as contemplated by the Merger Agreement and, except as noted above,
your continued employment with BMBC through the Closing Date. In the event that the closing of the Transaction does not occur
for any reason, including the termination of the Merger Agreement in accordance with its terms, this Letter will be null and void.

5.             Return
of Property. Upon the request of WSFS, you agree to surrender to WSFS all proprietary or Confidential Information and articles
and property that belong to WSFS, except that you will be permitted to retain your current mobile phone, ipads and laptop computer
provided that that WSFS will be permitted to remove all Confidential Information from the same.

    	4

    	 

    

6.             Taxes
and Withholding.

a.            Withholding.
All amounts payable hereunder will be subject to applicable taxes and withholding. Regardless of the amount withheld, you are
solely responsible for paying all required taxes (other than WSFS’s share of employment taxes, where applicable) on all
payments made.

b.             Section
409A. It is intended that all payments described in this Letter comply with, or are exempt from, Section 409A (“Section
409A”) of the Internal Revenue Code (the “Code”); provided, however, that nothing herein shall be interpreted
to transfer liability for any tax (including any due as a result of a violation of Section 409A) from you to WSFS or any other
person or entity. This Letter shall be interpreted and administered to maximize the exemptions from Section 409A and, to the extent
this Letter provides for deferred compensation subject to Section 409A, to comply with Section 409A. To the extent necessary to
comply with Section 409A, in no event may you, directly or indirectly, designate the taxable year of payment. The parties agree
that this Letter may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section
409A in order to preserve the payments and benefits provided hereunder without additional cost to either party.

c.             Section
280G. If any benefits payable to you by BMBC or WSFS or their affiliates (i) are “parachute payments” within the
meaning of Section 280G of the Code, and (ii) but for this paragraph 6(c), would be subject to the “golden parachute”
excise tax imposed by Code Section 4999, then the benefits payable to you will be reduced to a level that will result in no tax
under Code Section 4999 unless it would be better economically for you to receive all of the benefits and pay the excise tax.
Any determination required under this paragraph 6(c) will be made in by an independent professional services firm chosen and paid
for by WSFS. Before and after the Closing Date, you agree to reasonably negotiate in good faith with WSFS to implement measures
to minimize any payments or benefits from being characterized as “excess parachute payments” within the meaning of
Section 280G(b)(1) of the Code.

d.            Tax
Advice. You are encouraged to obtain your own tax advice regarding your compensation from WSFS. You agree that WSFS does not
have a duty to design its compensation policies in a manner that minimizes your tax liabilities, and you will not make any claim
against WSFS or any of its affiliates related to tax liabilities arising from your compensation.

7.             BMBC
Change-of-Control Severance Agreement. The Merger Agreement provides that BMBC may terminate the BMBC CIC
Agreement prior to, and contingent upon, the Closing. You hereby agree and acknowledge that if the BMBC CIC Agreement is so
terminated and (i) on or before the next payroll date practical following the Closing Date, you are paid, subject to
applicable taxes and withholding, a cash payment equal to $2,012,484.72, and (ii) to the extent unpaid prior to Closing, you
are paid on or before January 31, 2022, subject to applicable taxes and withholding, a cash payment equal to $358,582, which
is your target Annual Incentive Plan opportunity for 2021, then you shall have no further rights under or with respect to the
BMBC CIC Agreement, and you agree that you will not challenge or object to such termination. In addition, all of your
outstanding time and performance based BMBC restricted stock units granted pursuant to the Amended and Restated Bryn Mawr
Bank Corporation 2010 Long Term Incentive Plan will vest upon the Closing Date as set forth in the Merger Agreement.

    	5

    	 

    

8.             Miscellaneous
Provisions

a.            Entire Agreement. This Letter constitutes the entire agreement between the parties and supersedes all prior agreements
and understandings relating to the subject matter of this Letter, including any agreement between you and BMBC, WSFS, or any of
their affiliates, whether written or oral, except as set forth above with respect to the BMBC CIC Agreement; for clarity, the
Merger Agreement is independent of this Letter. You hereby agree and acknowledge that your BMBC Executive Change-of-Control Severance
Agreement and any other agreements with BMBC are terminated as of the Closing Date; the foregoing does not apply to BMBC equity
grants or vested BMBC equity rights, which shall each be treated in accordance with the provisions of the Merger Agreement. Notwithstanding
the foregoing, any existing covenants regarding non-competition and non-solicitation to which you are bound with BMBC and its
affiliates are not superseded by this Letter and will continue in effect following the Closing Date in accordance with their terms.
Your position as a member of the WSFS Boards shall be subject to the policies and governing documents of the WSFS Boards, including
the WSFS certificate of incorporation and the by-laws of WSFS.

b.             Governing
Law; Dispute Resolution; Remedies. This Letter shall be governed by and construed in accordance with the laws of Pennsylvania
(without regard to conflict of laws principles), and any dispute pertaining to or arising out of this Letter shall be brought
only in the state or federal courts located within Montgomery County, Pennsylvania. By signing this Letter you irrevocably consent
to the personal jurisdiction of the state and federal courts located within Pennsylvania. You agree that any breach or threatened
breach of your obligations in paragraph 3 will cause WSFS substantial and irrevocable damage for which it would have no adequate
remedy at law and you therefore agree that WSFS will be entitled to injunctive relief in the event of any such breach or threatened
breach, without the necessity of showing actual damages or that monetary damages would not afford an adequate remedy, and without
the necessity of posting any bond or other security. Each right, obligation and remedy set forth in this Letter shall be cumulative
and in addition to the other rights, obligations and remedies set forth herein or under other agreements, at law or in equity.

c.             Counterparts. This Letter may be executed in counterparts, each of which shall be deemed an original and all of which
taken together shall constitute one and the same instrument.

d.            Assignment.
The provisions of this Letter shall bind and inure to the benefit of WSFS and its successors and assigns. You may not assign this
Letter.

e.             Amendment
and Waiver. No failure or delay on the part of you or WSFS in exercising any right, power or remedy hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy. Any amendment, supplement or modification of or to any provision
of this Letter and any waiver of any provision of this Letter shall be effective (i) only if it is made or given in writing and
signed by each party hereto or, in the case of a waiver, by the party granting the waiver and (ii) only in the specific instance
and for the specific purpose for which made or given.

    	6

    	 

    

f.              Severability.
If any provision of this Letter is held invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions of this Letter shall not be affected or impaired in any way.

g.            Construction.
You and WSFS agree that you each have been represented by counsel during the negotiation and execution of this letter and, therefore,
waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other
document will be construed against the party drafting such agreement or document. The headings in this Letter are only for convenience
and are not intended to affect construction or interpretation. The words “include,” “includes” and “including,”
when used in this Letter, will be deemed to be followed by the phrase “but not limited to”. The words “hereof”,
“herein” and “hereunder” and words of similar import when used in this Letter shall refer to this Letter
as a whole and not to any particular provision of this Letter. As used in this Letter, an “affiliate” of an entity
shall mean a second entity controlling, controlled by or under common control with such first entity.

[Remainder
of the Page Left Blank]

    	7

    	 

    

We hope
you will indicate your acceptance of the terms of this Letter set forth above by signing and dating in the spaces indicated below.

 

	 	Sincerely,

	 	 
	 	/s/
    Rodger Levenson
	 	Rodger Levenson
	 	Chairman, President
    and Chief Executive Officer
	 	WSFS Financial
    Corporation
	 	 
	 	/s/ Rodger Levenson
	 	Rodger Levenson
	 	Chairman, President
    and Chief Executive Officer
	 	Wilmington Savings Fund Society, FSB

I acknowledge that I have
read, understand and agree to the terms and conditions of this Letter:

 

	 	 	Francis J. Leto
	 	 	 
	3/9/2021	 	/s/ Francis J. Leto
	Date	 	SignatureExhibit 4.1

 

THIS NOTE HAS NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. 

 

BITNILE HOLDINGS, INC.

 

10% Original
Issuance Discount

Senior Secured Promissory Note

due March 31, 2022

 

	Note No. 12-29-2021-NoteE1	Face Amount: $66,000,000.00
	Dated:  December 29, 2021 (the “Issuance Date”)	Purchase Price: $60,000,000.00

 

For value received, BITNILE
HOLDINGS, INC., a Delaware corporation (the “Maker” or the “Company”), hereby promises to pay to
the order of _____________ (the “Holder”), in accordance with the terms hereinafter provided, the principal amount
of Sixty-Six Million Dollars ($66,000,000.00) (the “Principal Amount”).

 

All payments under or pursuant
to this 10% Original Issuance Discount Senior Secured Promissory Note (this “Note”) shall be made in United States
Dollars in immediately available funds to the Holder at the address of the Holder set forth in the Purchase Agreement (as hereinafter
defined) or at such other place as the Holder may designate from time to time in writing to the Maker or by wire transfer of funds to
the Holder’s account, instructions for which are attached hereto as Exhibit A. The Company shall be obligated to make weekly
payments to the Investor as provided herein. The Outstanding Principal balance of this Note shall be due and payable on March 31, 2022
(the “Maturity Date”) or at such earlier time as provided herein; provided, that the Holder, in its sole discretion,
may extend the Maturity Date to any date after the original Maturity Date. In the event that the Maturity Date shall fall on Saturday
or Sunday, such Maturity Date shall be the next succeeding Business Day. All calculations made pursuant to this Note shall be rounded
down to three decimal places.

 

ARTICLE
1

 

1.1       Purchase
Agreement. This Note has been executed and delivered pursuant to the Securities Purchase Agreement, dated as of December 29, 2021
(as the same may be amended from time to time, the “Purchase Agreement”), by and between the Maker, the Holder and
the other signatories thereto. Capitalized terms used and not otherwise defined herein shall have the meanings set forth for such terms
in the Purchase Agreement.

 

    	 	 	 

    	 

    

 

1.2       Interest.
This Note shall bear simple interest on the Outstanding Principal Amount at the rate of eight percent (8%) per annum, based on a 365-day
year. Interest shall commence with the date hereof and shall continue on the Outstanding Principal until paid in full.

 

1.3       Prepayment.
At any time after the Issuance Date, the Maker may repay all (but not less than all) of the Outstanding Principal Amount upon at
least ten (10) days’ written notice of the Holder (the “Prepayment Notice”).

 

1.4       Delisting from a
Trading Market. If at any time the Class A Common Stock ceases to be listed on a Trading Market, (i) the Holder may deliver a demand
for payment to the Company and, if such a demand is delivered, the Company shall, within three (3) Business Days following receipt of
the demand for payment from the Holder, pay all of the Outstanding Principal Amount.

 

1.5       Payment
on Non-Business Days. Whenever any payment to be made shall be due on a day which is not a Business Day, such payment may be due on
the next succeeding Business Day.

 

1.6       Transfer.
This Note may be transferred or sold, subject to the provisions of Section 4.9 of this Note, or pledged, hypothecated or otherwise granted
as security by the Holder.

 

1.7       Replacement.
Upon receipt of a duly executed and notarized written statement from the Holder with respect to the loss, theft or destruction of this
Note (or any replacement hereof), or, in the case of a mutilation of this Note, upon surrender and cancellation of such Note, the Maker
shall issue a new Note, of like tenor and amount, in lieu of such lost, stolen, destroyed or mutilated Note.

 

1.8       Use
of Proceeds. The Maker shall use the proceeds of this Note as set forth in the Purchase Agreement.

 

1.9       Status
of Note and Security Interest. The Maker shall not, and shall not permit any of its Subsidiaries to incur, Indebtedness other than
Permitted Indebtedness without the prior written consent of the Holder. Upon any Liquidation Event (as hereinafter defined), the Holder
will be entitled to receive, before any distribution or payment is made upon, or set apart with respect to, any Indebtedness of the Maker,
any Subsidiary or any class of capital stock of the Maker or such Subsidiary, an amount equal to the Outstanding Principal Amount plus
all accrued interest thereon (if any), provided, that the Holder shall be treated on a pari passu basis with any other signatories
to the Purchase Agreement. For purposes of this Note, “Liquidation Event” means a liquidation pursuant to a filing
of a petition for bankruptcy under applicable law or any other insolvency or debtor’s relief, an assignment for the benefit of creditors,
or a voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Maker or any Subsidiary thereof.

 

1.10     Secured
Note. The full amount of this Note is secured by the Collateral (as defined in the respective Security Documents) identified and described
as security therefor in the Security Documents.

 

    	 	 	 

    	 

    

 

1.11     Taxes.

 

1.11.1       All
payments by the Maker to the Holder hereunder will be made free and clear of and without deduction for any and all present or future taxes
in respect of such payments and any deemed payments under applicable laws in respect of this Note. If any taxes are required by law to
be deducted by the Maker from or in respect of any amounts payable to the Holder hereunder (i) the sum payable by the Maker will be increased
as necessary so that, after making all required deductions for such Taxes (including deductions applicable to additional sums payable
under this Section 1.11), the Holder will receive an amount equal to the sum it would have received if such deduction had not been made;
(ii) the Maker will make such deductions; and (iii) the Maker will pay the full amount deducted to the relevant taxing authority in accordance
with applicable law and if the Holder so requires, the Maker will promptly furnish to the Holder such written proof of payment.

 

1.11.2       If the Maker
fails to pay any Taxes when due to the appropriate taxing authority or fails to increase the sum payable as prescribed in Section 1.11.1,
the Maker will indemnify the Holder for any incremental taxes, interest or penalties that may become payable by the Holder as a result
of any such failure. This Section 1.11 shall survive the termination of this Note and the payment of the Principal Amount and all other
obligations payable herein.

 

ARTICLE
2

 

2.1       Events
of Default. An “Event of Default” under this Note shall mean the occurrence of any of the events defined
in the Purchase Agreement, and any of the additional events described below:

 

(a)       any
default in the payment of (i) the Principal Amount hereunder when due; or (ii) liquidated damages in respect of this Note as and
when the same shall become due and payable (whether on the Maturity Date or by acceleration or otherwise) and any such default is not
remedied within three (3) Business Days from the Event of Default occurring by the Company’s failure to comply with this Section
2.1(a);

 

(b)       the
Maker or any Subsidiary shall fail to observe or perform any other covenant, condition or agreement contained in this Note or any Transaction
Document unless cured, if subject to cure, within ten (10) Business Days from the Event of Default, provided, however, that
it shall not be an Event of Default hereunder if the Company fails to comply with the registration rights provisions contained in Sections
9.1(a) or 9.1(c) of the Purchase Agreement; and provided, further, that the nothing in this Section 2.1(b) shall prohibit,
restrict or otherwise limit the Investor’s rights, and the Company’s obligations, with regard to the Effectiveness Penalty
pursuant to Section 9.1(c) of the Purchase Agreement;

 

(c)       default
shall be made in the performance or observance of any material covenant, condition or agreement contained in the Purchase Agreement or
any other Transaction Document that is not covered by any other provisions of this Section 2.1 unless cured, if subject to cure,
within ten (10) Business Days from the Event of Default, provided, however, that it shall not be an Event of Default hereunder
if the Company fails to comply with the registration rights provisions contained in Sections 9.1(a) or 9.1(c) of the Purchase Agreement;
and provided, further, that the nothing in this Section 2.1(c) shall prohibit, restrict or otherwise limit the Investor’s
rights, and the Company’s obligations, with regard to the Effectiveness Penalty pursuant to Section 9.1(c) of the Purchase Agreement;

 

    	 	 	 

    	 

    

 

(d)       any
representation or warranty made by the Maker or any of its Subsidiaries herein or in the Purchase Agreement, the Warrant or any other
Transaction Document shall prove to have been false or incorrect or breached in a material respect on the date as of which made unless
cured, if subject to cure, within ten (10) Business Days from the Event of Default;

 

(e)       unless
otherwise approved in writing in advance by the Holder, the Maker shall announce an intention to pursue or consummate a Change of Control
pursuant to that definition contained in the Purchase Agreement, or the Maker shall enter into any agreement, understanding or arrangement
with respect to any Change of Control;

 

(f)       the
Maker or any of its Subsidiaries shall (A) default in any payment of any amount or amounts of principal of or interest (if any) on any
Indebtedness (other than the Indebtedness hereunder), the aggregate principal amount of which Indebtedness is in excess of $100,000 that
will permit the holder or holders of such Indebtedness to become due prior to its stated maturity or (B) default in the observance or
performance of any other agreement or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition
is to cause, or to permit the holder or holders or beneficiary or beneficiaries of such Indebtedness to cause with the giving of notice
if required, such Indebtedness to become due prior to its stated maturity and any such default is not remedied within ten (10) Business
Days from the Event of Default occurring by the Company’s failure to comply with this Section 2.1(i);

 

(g)       the
Maker or any of its Subsidiaries shall: (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian,
trustee or liquidator of itself or of all or a substantial part of its property or assets; (ii) make a general assignment for the benefit
of its creditors; (iii) commence a voluntary case under the United States Bankruptcy Code (as now or hereafter in effect) or under the
comparable laws of any jurisdiction (foreign or domestic); (iv) file a petition seeking to take advantage of any bankruptcy, insolvency,
moratorium, reorganization or other similar law affecting the enforcement of creditors’ rights generally; (v) acquiesce in writing
to any petition filed against it in an involuntary case under the United States Bankruptcy Code (as now or hereafter in effect) or under
the comparable laws of any jurisdiction (foreign or domestic); (vi) issue a notice of bankruptcy or winding down of its operations or
issue a press release regarding same; or (vii) take any action under the laws of any jurisdiction (foreign or domestic) analogous
to any of the foregoing;

 

    	 	 	 

    	 

    

 

(h)       a
proceeding or case shall be commenced in respect of the Maker or any of its Subsidiaries, without its application or consent, in any court
of competent jurisdiction, seeking: (i) the liquidation, reorganization, moratorium, dissolution, winding up, or composition or readjustment
of its debts; (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of it or of all or any substantial part of
its assets in connection with the liquidation or dissolution of the Maker or any of its Subsidiaries; or (iii) similar relief in respect
of it under any law providing for the relief of debtors, and such proceeding or case described in clause (i), (ii) or (iii) shall continue
undismissed, or unstayed and in effect, for a period of forty-five (45) days or any order for relief shall be entered in an involuntary
case under the United States Bankruptcy Code (as now or hereafter in effect) or under the comparable laws of any jurisdiction (foreign
or domestic) against the Maker or any of its Subsidiaries or action under the laws of any jurisdiction (foreign or domestic) analogous
to any of the foregoing shall be taken with respect to the Maker or any of its Subsidiaries and shall continue undismissed, or unstayed
and in effect for a period of forty-five (45) days;

 

(i)       one
or more final judgments or orders for the payment of money aggregating in excess of $200,000 (or its equivalent in the relevant currency
of payment) are rendered against one or more of the Company and its Subsidiaries;

 

(j)       the
failure of the Maker to instruct its transfer agent to remove any legends from the Warrant Shares and issue such unlegended certificates
to the Holder within three (3) Trading Days of the Holder’s request so long as the Holder has provided confirmation, such as through
a valid Seller’s Representation Letter, to the Maker that such Warrant Shares can be sold pursuant to Rule 144 or any other applicable
exemption;

 

(k)       the
Maker’s Class A Common Stock are no longer publicly traded or cease to be listed on the Trading Market or, after the six month anniversary
of the Issuance Date, any Warrant Shares may not be immediately resold under Rule 144 without restriction on the number of shares to be
sold or manner of sale, unless such Warrant Shares have been registered for resale under the 1933 Act and may be sold without restriction;

 

(l)       the
Company ceases to be a “reporting issuer” under the Exchange Act, or applies to do so, in either case without the prior written
consent of the Holder;

 

(m)       there
shall be any SEC or judicial stop trade order or trading suspension stop-order or management cease trade order or any restriction (collectively,
a “Restriction”) in place with the transfer agent for the Class A Common Stock restricting the trading of such Class
A Common Stock and such Restriction shall not have been lifted within ten (10) Business Days of its imposition;

 

(n)       the
Class A Common Stock are no longer tradeable through the Depository Trust Company Fast Automated Securities Transfer program;

 

(o)       the
Company’s Market Capitalization is below $75 million for ten (10) consecutive days;

 

(p)       the
occurrence of a Material Adverse Effect in respect of the Maker, or the Maker and its Subsidiaries taken as a whole and any such occurrence
is not remedied within ten (10) Business Days from the Event of Default occurring by the Company’s failure to comply with this Section
2.1(p);

 

    	 	 	 

    	 

    

 

(q)       to
the extent required, the Company fails to obtain Shareholder Approval prior to any exercise of the Warrants.

 

(r)       the
Company fails to cause the Warrant Shares to be approved for listing on the Principal Market prior to any exercise of the Warrants thereof;
or

 

(s)       
the Company fails to maintain the listing of the Warrant Shares on the Principal Market.

 

2.2       Remedies
Upon an Event of Default.

 

(a)       Upon
the occurrence of any Event of Default, interest will be payable on the Note at a rate equal to the greater of: (i) eighteen percent (18%)
per annum; and (ii) the maximum rate permitted by applicable law (“Interest Upon Default Amount”). Such interest will
accrue from the first date of the Event of Default on the Outstanding Principal Amount, for as long as the Event of Default will not have
been remedied. The Maker must pay this amount of interest on the Outstanding Principal Amount to the Investor on a monthly basis in arrears
on the last day of each calendar month following Event of Default.

 

(b)       Upon
the occurrence of any Event of Default, the Maker shall, as promptly as possible but in any event within one (1) Business Day of such
Event of Default, notify the Holder of the occurrence of such Event of Default, describing the event or factual situation giving rise
to the Event of Default and specifying the relevant subsection or subsections of Section 2.1 hereof under which such Event of Default
has occurred.

 

(c)       Upon
the occurrence and during the continuance of an Event of Default, the Holder may at any time at its option (1) declare that the
Interest Upon Default Amount has become applicable, without presentment, demand, protest or notice, all of which are hereby expressly
unconditionally and irrevocably waived by the Maker and (2) exercise all other rights and remedies available to it under the Transaction
Documents; provided, however, that upon the occurrence of an Event of Default described above, the Holder, in its sole and absolute
discretion, may exercise or otherwise enforce any one or more of the Holder’s rights, powers, privileges, remedies and interests
under this Note, the Purchase Agreement, the other Transaction Documents or applicable law. No course of delay on the part of the Holder
shall operate as a waiver thereof or otherwise prejudice the rights of the Holder. No remedy conferred hereby shall be exclusive of any
other remedy referred to herein or now or hereafter available at law, in equity, by statute or otherwise.

 

ARTICLE
3

 

3.1       Covenants.
For so long as any Note is outstanding, without the prior written consent of the Holder:

 

(a)       Compliance
with Transaction Documents. The Maker shall, and shall cause its Subsidiaries to, comply with its obligations under this Note and
the other Transaction Documents.

 

    	 	 	 

    	 

    

 

(b)       Payment
of Taxes, Etc. The Maker shall, and shall cause each of its Subsidiaries to, promptly pay and discharge, or cause to be paid and discharged,
when due and payable, all lawful taxes, assessments and governmental charges or levies imposed upon the income, profits, property or business
of the Maker and the Subsidiaries, except for such failures to pay that, individually or in the aggregate, have not had and would not
reasonably be expected to have a Material Adverse Effect; provided, however, that any such tax, assessment, charge or levy need not be
paid if the validity thereof shall currently be contested in good faith by appropriate proceedings and if the Maker or such Subsidiaries
shall have set aside on its books adequate reserves with respect thereto, and provided, further, that the Maker and such Subsidiaries
will pay all such taxes, assessments, charges or levies forthwith upon the commencement of proceedings to foreclose any lien which may
have attached as security therefor.

 

(c)       Corporate
Existence. The Maker shall, and shall cause each of its Subsidiaries to, maintain in full force and effect its corporate existence,
rights and franchises and all licenses and other rights to use property owned or possessed by it and reasonably deemed to be necessary
to the conduct of its business.

 

(d)       Investment
Company Act. The Maker shall conduct its businesses in a manner so that it will not become subject to, or required to be registered
under, the Investment Company Act of 1940, as amended.

 

(e)       Sale
of Collateral; Liens. From the date hereof until the full release of the security interest in the Collateral, (i) the Maker and its
Subsidiaries shall not sell, lease, transfer or otherwise dispose of any of the Collateral, or attempt or contract to do so, other than
sales of inventory in the ordinary course of business consistent with past practices; and (ii) the Maker and its Subsidiaries shall not,
directly or indirectly, create, permit or suffer to exist, and shall defend the Collateral against and take such other action as is necessary
to remove, any lien, security interest or other encumbrance on the Collateral.

 

(f)       Repayment
of This Note. The Company shall make weekly payments to the Investors on a pari passu basis equal to the gross proceeds generated
from the Sale or Issuance of Bitcoin, as provided in Section 3.1(g) below. Other than as set forth on Schedule 5.7 of the Purchase
Agreement, neither the Company nor any Subsidiary has any outstanding Indebtedness (all such Indebtedness set forth on Schedule 5.7 of
the Purchase Agreement is hereinafter referred to as the “Existing Debt” and is collectively referred to herein as the “Permitted
Indebtedness”). The Company shall not make any voluntary cash prepayments on any Indebtedness at any time while any amounts are
owing under the Note other than with respect to the Existing Debt or cash payments the Company is required to make pursuant to the express
terms thereof existing on the date hereof. Neither the Company nor any Subsidiary shall incur any Indebtedness without the express written
consent of the Investor. If the Company or any Subsidiary issues any Indebtedness other than the Permitted Indebtedness, after obtaining
the written consent of the Investor pursuant to Section 1.9 of this Note, including any subordinated Indebtedness or convertible Indebtedness,
other than Exempted Securities, then unless otherwise waived in writing by and at the discretion of the Investor, the Company will immediately
utilize no less than sixty-five percent (65%) of the proceeds of such issuance (or cause such Subsidiary to immediately utilize the proceeds
of such issuance) to repay the Note. If the Company issues any Equity Interests, other than Exempted Securities, or mines or sells any
Bitcoin, unless otherwise waived in writing by and at the discretion of the Investor, the Company will direct sixty-five percent (65%)
of the proceeds from such issuance or sale of Bitcoin to repay the Note on a pari passu basis. Additionally, in the event that
an Investor exercises some or all of its Warrants for cash (“Exercise Proceeds”), then the Company shall direct all
such Exercise Proceeds to the repayment of the Note. Any such repayments of the Note as provided herein shall be made to the Investors
on a pro rata basis in proportion to their investment and shall be without premium or penalty to the Company. Moreover, each Investor
may, in its sole discretion and acting solely on behalf of itself, require that the Company apply some or all amounts owing under the
Note to the payment of any cash exercises of the Warrants by the Investor.

 

    	 	 	 

    	 

    

 

(g)       Sale
or Issuance of Bitcoin. The Company shall be obligated to sell or issue no less than sixty-five percent (65%) of the Bitcoin it mines.
The gross proceeds from the Sale or Issuance of Bitcoin shall be used by the Company to repay the Note.

 

3.2       Set-Off.
This Note shall be subject to the set-off provisions set forth in the Purchase Agreement.

 

ARTICLE
4

 

4.1       [Reserved.]

 

4.2       Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall
be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via email
at the email address specified in this Section prior to 5:00 p.m. (New York time) on a Business Day, (b) the next Business Day after the
date of transmission, if such notice or communication is delivered via email at the email address specified in this Section on a day that
is not a Business Day or later than 5:00 p.m. (New York time) on any date and earlier than 11:59 p.m. (New York time) on such date, (c)
the Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt
by the party to whom such notice is required to be given. The addresses for notice shall be as set forth in the Purchase Agreement.

 

4.3       Governing
Law. This Agreement shall be governed by and construed in accordance with the Laws of the State of New York, without reference to
principles of conflict of laws or choice of laws. This Note shall not be interpreted or construed with any presumption against the party
causing this Note to be drafted.

 

4.4       Headings.
Article and section headings in this Note are included herein for purposes of convenience of reference only and shall not constitute a
part of this Note for any other purpose.

 

    	 	 	 

    	 

    

 

4.5       Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative and in
addition to all other remedies available under this Note, at law or in equity (including, without limitation, a decree of specific performance
and/or other injunctive relief), no remedy contained herein shall be deemed a waiver of compliance with the provisions giving rise to
such remedy and nothing herein shall limit the Holder’s right to pursue actual damages for any failure by the Maker to comply with
the terms of this Note. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation
thereof) shall be the amounts to be received by the holder thereof and shall not, except as expressly provided herein, be subject to any
other obligation of the Maker (or the performance thereof). The Maker acknowledges that a breach by it of its obligations hereunder will
cause irreparable and material harm to the Holder and that the remedy at law for any such breach would be inadequate. Therefore, the Maker
agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available rights
and remedies, at law or in equity, to equitable relief, including but not limited to an injunction restraining any such breach or threatened
breach, without the necessity of showing economic loss and without any bond or other security being required.

 

4.6       Enforcement
Expenses. The Maker agrees to pay all costs and expenses of enforcement of this Note, including, without limitation, reasonable attorneys’
fees and expenses.

 

4.7       Binding
Effect. The obligations of the Maker and the Holder set forth herein shall be binding upon the successors and assigns of each such
party, whether or not such successors or assigns are permitted by the terms herein.

 

4.8       Amendments;
Waivers. No provision of this Note may be waived or amended except in a written instrument signed by the Company and the Holder. No
waiver of any default with respect to any provision, condition or requirement of this Note shall be deemed to be a continuing waiver in
the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay
or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.

 

4.9       Compliance
with Securities Laws. The Holder of this Note acknowledges that this Note is being acquired solely for the Holder’s own account
and not as a nominee for any other party, and for investment, and that the Holder shall not offer, sell or otherwise dispose of this Note
in violation of securities laws. This Note and any note issued in substitution or replacement therefor shall be stamped or imprinted with
a legend in substantially the following form:

 

“THIS NOTE HAS NOT BEEN REGISTERED WITH
THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.”

 

    	 	 	 

    	 

    

 

4.10       Jurisdiction;
Venue. Any action, proceeding or claim arising out of, or relating in any way to this Agreement shall be brought and enforced in the
New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York. The Company
and the Holder irrevocably submit to the jurisdiction of such courts, which jurisdiction shall be exclusive, and hereby waive any objection
to such exclusive jurisdiction or that such courts represent an inconvenient forum. The prevailing party in any such action shall be entitled
to recover its reasonable and documented attorneys’ fees and out-of-pocket expenses relating to such action or proceeding.

 

4.11       Parties
in Interest. This Note shall be binding upon, inure to the benefit of and be enforceable by the Maker, the Holder and their respective
successors and permitted assigns.

 

4.12       Failure
or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privilege.

 

4.13       Maker
Waivers. Except as otherwise specifically provided herein, the Maker and all others that may become liable for all or any part of
the obligations evidenced by this Note hereby waive presentment, demand, notice of nonpayment, protest and all other demands and notices
in connection with the delivery, acceptance, performance and enforcement of this Note, and do hereby consent to any number of renewals
of extensions of the time or payment hereof and agree that any such renewals or extensions may be made without notice to any such persons
and without affecting their liability herein and do further consent to the release of any person liable hereon, all without affecting
the liability of the other persons, firms or Maker liable for the payment of this Note, AND DO HEREBY WAIVE TRIAL BY JURY.

 

(a)       No
delay or omission on the part of the Holder in exercising its rights under this Note, or course of conduct relating hereto, shall operate
as a waiver of such rights or any other right of the Holder, nor shall any waiver by the Holder of any such right or rights on any one
occasion be deemed a waiver of the same right or rights on any future occasion.

 

(b)       THE
MAKER ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED BY APPLICABLE
LAW, HEREBY WAIVES ITS RIGHT TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE HOLDER OR ITS SUCCESSORS OR ASSIGNS
MAY DESIRE TO USE.

 

    	 	 	 

    	 

    

 

4.14       Definitions.
Capitalized terms used herein and not defined shall have the meanings set forth in the Purchase Agreement. For the purposes hereof, the
following terms shall have the following meanings:

 

(a)       
“Indebtedness” means: (a) all obligations for borrowed money; (b) all obligations evidenced by bonds, debentures, notes,
or other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, current
swap agreements, interest rate hedging agreements, interest rate swaps, or other financial products; (c) all capital lease obligations
that exceed $150,000 in the aggregate in any fiscal year; (d) all obligations or liabilities secured by a lien or encumbrance on any asset
of the Maker or any Subsidiary, irrespective of whether such obligation or liability is assumed; (e) all obligations for the deferred
purchase price of assets, together with trade debt and other accounts payable that exceed $150,000 in the aggregate in any fiscal year;
(f) all synthetic leases; and (g) any obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed,
co-made, discounted or sold with recourse) any of the foregoing obligations of any other person.

 

(b)       “Market
Capitalization” means, as of any date of determination, the product of (a) the number of issued and outstanding Common Shares
as of such date (exclusive of any Common Shares issuable upon the exercise of options or warrants or conversion of any convertible securities),
multiplied by (b) the closing price of the Common Shares on the Trading Market on the date of determination.

 

(c)       “Outstanding
Principal Amount” means, at the time of determination, the Principal Amount outstanding after giving effect to any conversions
or prepayments pursuant to the terms hereof.

 

[Signature Pages Follow]

 

    	 	 	 

    	 

    

 

IN WITNESS WHEREOF, the Maker has caused
this Note to be duly executed by its duly authorized officer as of the date first above indicated.

 

 

 

	 	BITNILE HOLDINGS, INC.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	William B. Horne	 
	 	Title:	Chief Executive Officer	 

 

    	 	 	 

    	 

    

 

EXHIBIT A 

 

WIRE INSTRUCTIONS

 

 

	Name of Bank:      	[Name]
	 	[Address]
	Routing #:	[###]
	For credit to:	[Name]
	Account #:	[###]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}]]