Document:

Exhibit 10.12

 

SMALL BUSINESS LENDING FUND – SECURITIES
PURCHASE AGREEMENT

 

	BNC Financial Group, Inc.	 	0072
	Name of Company	 	SBLF No.

 

	208 Elm Street	 	Corporation
	Street Address for Notices	 	Organizational Form (e.g., corporation, national bank)

 

	 New Canaan	 Connecticut	06840	 	 Connecticut
	City	State	Zip Code	 	Jurisdiction of Organization

 

	 Ernest J. Verrico, Sr.	 	 Federal Reserve Board
	Name of Contact Person to Receive Notices	 	Appropriate Federal Banking Agency
	 	 	 
	(203) 966-7473	 	(203) 972-3838	 	 August 4, 2011
	Fax Number for Notices	 	Phone Number for Notices	 	Effective Date

 

THIS SECURITIES PURCHASE AGREEMENT (the
“Agreement”) is made as of the Effective Date set forth above (the “Signing Date”) between
the Secretary of the Treasury (“Treasury”) and the Company named above (the “Company”), an
entity existing under the laws of the Jurisdiction of Organization stated above in the Organizational Form stated above. The Company
has elected to participate in Treasury’s Small Business Lending Fund program (“SBLF”). This Agreement
contains the terms and conditions on which the Company intends to issue preferred stock to Treasury, which Treasury will purchase
using SBLF funds.

 

This Agreement consists of the following attached
parts, all of which together constitute the entire agreement of Treasury and the Company (the “Parties”) with
respect to the subject matter hereof, superseding all prior written and oral agreements and understandings between the Parties
with respect to such subject matter:

 

	Annex A:	Information Specific to 	 	Annex G:	Form of Officer’s Certificate
	 	the Company and the Investment	 	Annex H:	Form of Supplemental Reports
	Annex B:	Definitions	 	Annex I:	Form of Annual Certification
	Annex C:	General Terms and Conditions	 	Annex J:	Form of Opinion
	Annex D:	Disclosure Schedule	 	Annex K:	Form of Repayment Document
	Annex E:	Registration Rights	 	 	 
	Annex F:	Form of Certificate of Designation 	 	 	 

 

This Agreement may be executed in any number
of counterparts, each being deemed to be an original instrument, and all of which will together constitute the same agreement.
Executed signature pages to this Agreement may be delivered by facsimile or electronic mail attachment.

 

    	 

    	 

    

 

IN WITNESS WHEREOF, this Agreement has
been duly executed and delivered by the duly authorized representatives of the parties hereto as of the Effective Date.

 

	THE SECRETARY OF THE TREASURY	 	BNC FINANCIAL GROUP, INC.
	 	 	 
	By:	 	 	By:	 
	Name:	Don Graves	 	Name:	Ernest J. Verrico, Sr.
	Title:	Deputy Assistant Secretary	 	Title:	Chief Financial Officer

 

 Signature Page- SBLF Securities Purchase Agreement
– BNC Financial Group, Inc.

 

    	 

    	 

    

 

	ANNEX A
	INFORMATION SPECIFIC TO THE COMPANY AND THE INVESTMENT

 

Purchase Information

 

	Terms of the Purchase:	 	 
	 	 	 
	Series of Preferred Stock Purchased:	Senior Non-Cumulative Perpetual Preferred Stock, Series C	 
	Per Share Liquidation Preference of Preferred Stock:	$1,000 per share	 
	 	 	 
	Number of Shares of Preferred Stock Purchased:	10,980.00	 
	 	 	 
	Dividend Payment Dates on the Preferred Stock:	Payable quarterly in arrears on January 1, April 1, July 1 and  October 1 of each year.	 
	Purchase Price:	$10,980,000.00	 

 

	Closing:	 	 
	 	 	 
	Location of Closing:	Virtual	 
	 	 	 
	Time of Closing:	10:00 a.m. (EST)	 
	 	 	 
	Date of Closing:	August 4, 2011	 

 

Redemption Information 

(Only complete if the Company was a CPP
or CDCI participant; leave blank otherwise.)

 

	Prior Program:	x       CPP	 
	 	 	 
	 	 ̈        CDCI	 
	 	 	 
	Series of Previously Acquired Preferred Stock:	Fixed Rate Cumulative Perpetual Preferred Stock, Series A	 
	 	 	 
	 	Fixed Rate Cumulative Perpetual Preferred Stock, Series B	 
	 	 	 
	Number of Shares of Previously Acquired Preferred Stock:	Series A 4,797	 
	 	 	 
	 	Series B 240.0024	 
	Repayment Amount:	$5,094,374.00	 
	 	 	 
	Residual Amount:	0	 

 

    	Annex A (Information Specific to the Company and the Investment)	Page 1

    	 

    

 

Matching Private Investment Information

 

	Treasury investment is contingent on the Company raising Matching Private Investment (check one):	
         ̈       Yes

         

        x      No
	 
	 	 	 
	If Yes, complete the following (leave blank otherwise):	 	 
	 	 	 
	Aggregate Dollar Amount of Matching Private Investment Required:	 	 
	 	 	 
	Aggregate Dollar Amount of Matching Private Investment Received:	 	 
	 	 	 
	Class of securities representing Matching Private Investment:	 	 
	 	 	 
	Date of issuance of Matching Private Investment:	 	 

 

    	Annex A (Information Specific to the Company and the Investment)	Page 2

    	 

    

 

	ANNEX B
	DEFINITIONS

 

1.           Definitions.   Except
as otherwise specified herein or as the context may otherwise require, the following terms have the respective meanings set forth
below for all purposes of this Agreement.

 

“Affiliate”
means, with respect to any person, any person directly or indirectly controlling, controlled by or under common control with, such
other person. For purposes of this definition, “control”
(including, with correlative meanings, the terms “controlled
by” and “under common control
with”) when used with respect to any person, means the possession, directly or indirectly through one or more
intermediaries, of the power to cause the direction of management and/or policies of such person, whether through the ownership
of voting securities by contract or otherwise.

 

“Application Date”
means the date of the Company’s completed application to participate in SBLF.

 

“Appropriate
Federal Banking Agency” means the “appropriate Federal banking agency” with respect to the Company
or such Company Subsidiaries, as applicable, as defined in Section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. Section
1813(q)). The Appropriate Federal Banking Agency is identified on the cover page of this Agreement.

 

“Appropriate State
Banking Agency” means, if the Company is a State-chartered bank, the Company’s State bank supervisor (as defined
in Section 3(r) of the Federal Deposit Insurance Act, 12 U.S.C. § 1813(q).

 

“Bank
Holding Company” means a company registered as such with the Federal Reserve pursuant to 12 U.S.C. §1842
and the regulations of the Federal Reserve promulgated thereunder.

 

“Call Report”
has the meaning assigned thereto in Section 4102(4) of the SBJA. If the Company is a Bank Holding Company or a Savings and Loan
Holding Company, unless the context clearly indicates otherwise: (a) the term “Call Report” shall mean the Call Report(s)
(as defined in Section 4102(4) of the SBJA) of the IDI Subsidiary(ies); and (b) if there are multiple IDI Subsidiaries, all references
herein or in any document executed or delivered in connection herewith (including the Certificate of Designation, the Initial Supplemental
Report and all Quarterly Supplemental Reports) to any data reported in a Call Report shall refer to the aggregate of such data
across the Call Reports for all such IDI Subsidiaries.

 

“CDCI”
means the Community Development Capital Initiative, as authorized under the Emergency Economic Stabilization Act of 2008.

 

    	Annex B (Definitions)	Page 1

    	 

    

 

“Company
Material Adverse Effect” means a material adverse effect on (i) the business, results of operation or condition
(financial or otherwise) of the Company and its consolidated subsidiaries taken as a whole; provided,
however, that Company Material Adverse Effect shall not
be deemed to include the effects of (A) changes after the Signing Date in general business, economic or market conditions (including
changes generally in prevailing interest rates, credit availability and liquidity, currency exchange rates and price levels or
trading volumes in the United States or foreign securities or credit markets), or any outbreak or escalation of hostilities, declared
or undeclared acts of war or terrorism, in each case generally affecting the industries in which the Company and its subsidiaries
operate, (B) changes or proposed changes after the Signing Date in GAAP, or authoritative interpretations thereof, or (C) changes
or proposed changes after the Signing Date in securities, banking and other laws of general applicability or related policies or
interpretations of Governmental Entities (in the case of each of these clauses (A), (B) and (C), other than changes or occurrences
to the extent that such changes or occurrences have or would reasonably be expected to have a materially disproportionate adverse
effect on the Company and its consolidated subsidiaries taken as a whole relative to comparable U.S. banking or financial services
organizations); or (ii) the ability of the Company to consummate the Purchase and other transactions contemplated by this Agreement
and perform its obligations hereunder and under the Certificate of Designation on a timely basis and declare and pay dividends
on the Dividend Payment Dates set forth in the Certificate of Designations.

 

“CPP”
means the Capital Purchase Program, as authorized under the Emergency Economic Stabilization Act of 2008.

 

“Disclosure
Schedule” means that certain schedule to this Agreement delivered to Treasury on or prior to the Signing
Date, setting forth, among other things, items the disclosure of which is necessary or appropriate in response to an express disclosure
requirement contained in a provision hereof. The Disclosure Schedule is contained in Annex D of this Agreement.

 

“Executive Officers”
means the Company's “executive officers” as defined in 12 C.F.R. § 215.2(e)(1) (regardless of whether or not such
regulation is applicable to the Company).

 

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

 

“GAAP”
means generally accepted accounting principles in the United States.

 

“General
Terms and Conditions” and “General T&C” each mean Annex C of this Agreement.

 

“IDI Subsidiary”
means any Company Subsidiary that is an insured depository institution.

 

“Junior
Stock” means Common Stock and any other class or series of stock of the Company the terms of which expressly provide
that it ranks junior to the Preferred Shares as to dividend and redemption rights and/or as to rights on liquidation, dissolution
or winding up of the Company.

 

“knowledge
of the Company” or “Company’s
knowledge” means the actual knowledge after reasonable and due inquiry of the “officers”
(as such term is defined in Rule 3b-2 under the Exchange Act) of the Company.

 

    	Annex B (Definitions)	Page 2

    	 

    

 

“Matching Private
Investment-Supported,” when used to describe the Company (if applicable), means the Company’s eligibility for participation
in the SBLF program is conditioned upon the Company or an Affiliate of the Company acceptable to Treasury receiving Matching Private
Investment, as contemplated by Section 4103(d)(3)(B) of the SBJA.

 

“Original Letter
Agreement” means, if applicable, the Letter Agreement (and all terms incorporated therein) pursuant to which Treasury
purchased from the Company, and the Company issued to Treasury, the Previously Acquired Preferred Shares (or warrants exercised
to acquire the Previously Acquired Preferred Shares or the securities exchanged for the Previously Acquired Preferred Stock).

 

“Oversight Officials”
means, interchangeably and collectively as context requires, the Special Deputy Inspector General for
SBLF Program Oversight, the Inspector General of the Department of the Treasury, and the Comptroller General of the United
States.

 

“Parity
Stock” means any class or series of stock of the Company the terms of which do not expressly provide that such
class or series will rank senior or junior to the Preferred Shares as to dividend rights and/or as to rights on liquidation, dissolution
or winding up of the Company (in each case without regard to whether dividends accrue cumulatively or non-cumulatively).

 

“Preferred Shares”
means the number of shares of Preferred Stock identified in the “Purchase Information” section of Annex A opposite
“Number of Shares of Preferred Stock Purchased.”

 

“Preferred Stock”
means the series of the Company’s preferred stock identified in the “Purchase Information” section of Annex
A opposite “Series of Preferred Stock Purchased.”

 

“Previously Acquired
Preferred Shares” means, if the Company participated in CPP or CDCI, the number of shares of Previously Acquired Preferred
Stock identified in the “Redemption Information” section of Annex A opposite “Number of Shares of Previously
Acquired Preferred Stock.”

 

“Previously Acquired
Preferred Stock” means, if the Company participated in CPP or CDCI, the series of the Company’s preferred stock
identified in the “Redemption Information” section of Annex A opposite “Series of Previously Acquired
Preferred Stock.”

 

“Previously
Disclosed” means information set forth on the Disclosure Schedule or the Disclosure Update, as applicable; provided,
however, that disclosure in any section of such Disclosure Schedule or Disclosure Update, as applicable, shall apply only to
the indicated section of this Agreement; provided, further,
that the existence of Previously Disclosed information, pursuant to a Disclosure Update, shall neither obligate Treasury to consummate
the Purchase nor limit or affect any rights of or remedies available to Treasury.

 

“Prior Program”
means (a) CPP, if the Company is a participant in CPP immediately prior to the Closing, or (b) CDCI, if the Company is a participant
in CDCI immediately prior to the Closing.

 

    	Annex B (Definitions)	Page 3

    	 

    

 

“Publicly-traded”
means a company that (i) has a class of securities that is traded on a national securities exchange and (ii) is required to file
periodic reports with either the Securities and Exchange Commission or its primary federal bank regulator.

 

“Purchase”
means the purchase of the Preferred Shares by Treasury from the Company pursuant to this Agreement.

 

“Repayment”
has the meaning set forth in the Repayment Document.

 

“Repayment Amount”
means, if the Company participated in CPP or CDCI, the aggregate amount payable by the Company as of the Closing Date to redeem
the Previously Acquired Preferred Stock in accordance with its terms, which amount is set forth in the “Redemption Information”
section of Annex A.

 

“Savings
and Loan Holding Company” means a company registered as such with the Office of Thrift Supervision or any successor
thereto pursuant to 12 U.S.C. §1467(a) and the regulations of the Office of Thrift Supervision promulgated thereunder.

 

“SBJA”
means the Small Business Jobs Act of 2010, as it may be amended from time to time.

 

“Subsidiary”
means any corporation, partnership, joint venture, limited liability company or other entity (A) of which such person or a subsidiary
of such person is a general partner or (B) of which a majority of the voting securities or other voting interests, or a majority
of the securities or other interests of which having by their terms ordinary voting power to elect a majority of the board of directors
or persons performing similar functions with respect to such entity, is directly or indirectly owned by such person and/or one
or more subsidiaries thereof.

 

“Tax”
or “Taxes” means any federal,
state, local or foreign income, gross receipts, property, sales, use, license, excise, franchise, employment, payroll, withholding,
alternative or add-on minimum, ad valorem, transfer or excise tax, or any other tax, custom, duty, governmental fee or other
like assessment or charge of any kind whatsoever, together with any interest, penalty or addition imposed by any Governmental Entity.

 

“Total Assets”
means, with respect to an insured depository institution, the total assets of such insured depository institution.

 

“Total Risk-Weighted
Assets” means, with respect to an insured depository institution, the risk-weighted assets of such insured depository
institution.

 

“Warrant”
has the meaning set forth in the Repayment Document.

 

    	Annex B (Definitions)	Page 4

    	 

    

 

2.           Index of Definitions.     The
following table, which is provided solely for convenience of reference and shall not affect the interpretation of this Agreement,
identifies the location where capitalized terms are defined in this Agreement:

 

	 	 	Location of
	Term	 	Definition
	Affiliate	 	Annex B, §1
	Agreement	 	Cover Page
	Appropriate Federal Banking Agency	 	Annex B, §1
	Appropriate State Banking Agency	 	Annex B, §1
	Bank Holding Company	 	Annex B, §1
	Bankruptcy Exceptions	 	General T&C, §2.5(a)
	Board of Directors	 	General T&C, §2.6
	Business Combination	 	General T&C, §5.8
	business day	 	General T&C, §5.12
	Call Report	 	Annex B, §1
	Capitalization Date	 	General T&C, §2.2
	CDCI	 	Annex B, §1
	Certificate of Designation	 	General T&C, §1.3(d)
	Charter	 	General T&C, §1.3(d)
	Closing	 	General T&C, §1.2(a)
	Closing Date	 	General T&C, §1.2(a)
	Closing Deadline	 	General T&C, §5.1(a)(i)
	Code	 	General T&C, §2.14
	Common Stock	 	General T&C, §2.2
	Company	 	Cover Page
	Company Financial Statements	 	General T&C, §1.3(i)
	Company Material Adverse Effect	 	Annex B, §1
	Company Reports	 	General T&C, §2.9
	Company Subsidiary; Company Subsidiaries	 	General T&C, §2.5(b)
	control; controlled by; under common control with	 	Annex B, §1
	CPP	 	Annex B, §1
	Disclosure Schedule	 	Annex B, §1
	Disclosure Update	 	General T&C, §1.3(h)
	ERISA	 	General T&C, §2.14
	Exchange Act	 	General T&C, §4.3
	Federal Reserve	 	Annex B, §1
	GAAP	 	Annex B, §1
	Governmental Entities	 	General T&C, §1.3(a)
	Holders	 	General T&C, §4.4(a)
	Indemnitee	 	General T&C, §4.4(b)
	Information	 	General T&C, §3.1(c)(iii)
	Initial Supplemental Report	 	General T&C, §1.3(j)
	Treasury	 	Cover Page
	Junior Stock	 	Annex B, §1
	knowledge of the Company; Company’s knowledge	 	Annex B, §1
	Matching Private Investment	 	General T&C, §1.3(l)
	Matching Private Investment-Supported	 	Annex B, § 1
	Matching Private Investors	 	General T&C, §1.3(l)
	officers	 	Annex B, §1

 

    	Annex B (Definitions)	Page 5

    	 

    

 

	Parity Stock	 	Annex B, §1
	Parties	 	Cover Page
	Plan	 	General T&C, §2.14
	Preferred Shares	 	Annex B, §1
	Preferred Stock	 	Annex B, §1
	Previously Acquired Preferred Shares	 	Annex B, §1
	Previously Acquired Preferred Stock	 	Annex B, §1
	Previously Disclosed	 	Annex B, §1
	Prior Program	 	General T&C, §1.2(c)
	Proprietary Rights	 	General T&C, §2.21
	Purchase	 	Annex B, §1
	Purchase Price	 	General T&C, §1.1(a)
	Regulatory Agreement	 	General T&C, §2.19
	Related Party	 	 General T&C, §2.25
	Repayment Document	 	General T&C, §1.2(b)(ii)(E)
	Residual Amount	 	General T&C, §1.2(b)(ii)(B)
	Savings and Loan Holding Company	 	Annex B, §1
	SBJA	 	Annex B, §1
	SBLF	 	Cover Page
	SEC	 	General T&C, §2.11
	Securities Act	 	General T&C, §2.1
	Signing Date	 	Cover Page
	subsidiary	 	Annex B, §1
	Quarterly Supplemental Report	 	General T&C, §3.1(d)(i)
	Tax; Taxes	 	Annex B, §1
	Transfer	 	General T&C, §4.3

 

3.           Defined Terms in Annex K.
    Except for defined terms in Annex K that are expressly cross-referenced in another part of this Agreement, terms defined
in Annex K are defined therein solely for purposes of Annex K and are not applicable to other parts of this Agreement.

 

    	Annex B (Definitions)	Page 6

    	 

    

 

	ANNEX C
	GENERAL TERMS AND CONDITIONS

 

CONTENTS OF GENERAL TERMS AND CONDITIONS

 

	 	 	 	Page
	 	 	 	 
	Article I	Purchase; Closing	3
	 	 	 	 
	 	1.1	Purchase	3
	 	1.2	Closing	3
	 	1.3	Closing Conditions	4
	 	 	 	 
	ARTICLE II	REPRESENTATIONS AND WARRANTIES	6
	 	 	 	 
	 	2.1	Organization, Authority and Significant Subsidiaries	6
	 	2.2	Capitalization	7
	 	2.3	Preferred Shares	7
	 	2.4	Compliance With Identity Verification Requirements	7
	 	2.5	Authorization; Enforceability	7
	 	2.6	Anti-takeover Provisions and Rights Plan	8
	 	2.7	No Company Material Adverse Effect	9
	 	2.8	Company Financial Statements	9
	 	2.9	Reports	9
	 	2.10	No Undisclosed Liabilities	9
	 	2.11	Offering of Securities	10
	 	2.12	Litigation and Other Proceedings	10
	 	2.13	Compliance with Laws	10
	 	2.14	Employee Benefit Matters	11
	 	2.15	Taxes	11
	 	2.16	Properties and Leases	12
	 	2.17	Environmental Liability	12
	 	2.18	Risk Management Instruments	12
	 	2.19	Agreements with Regulatory Agencies	12
	 	2.20	Insurance	13
	 	2.21	Intellectual Property	13
	 	2.22	Brokers and Finders	13
	 	2.23	Disclosure Schedule	13
	 	2.24	Previously Acquired Preferred Shares	14
	 	2.25	Related Party Transactions	14
	 	2.26	Ability to Pay Dividends	14
	 	 	 	 
	Article III	Covenants	14
	 	 	 	 
	 	3.1	Affirmative Covenants	14
	 	3.2	Negative Covenants	20

 

    	Annex C (General Terms and Conditions)	Page 1

    	 

    

 

	Article IV	Additional Agreements	21
	 	 	 	 
	 	4.1	Purchase for Investment	21
	 	4.2	Legends	21
	 	4.3	Transfer of Preferred Shares	22
	 	4.4	Rule 144; Rule 144A; 4(11⁄2) Transactions	23
	 	4.5	Depositary Shares	24
	 	4.6	Expenses and Further Assurances	24
	 	 	 	 
	Article V	Miscellaneous	24
	 	 	 	 
	 	5.1	Termination	24
	 	5.2	Survival	25
	 	5.3	Amendment	25
	 	5.4	Waiver of Conditions	26
	 	5.5	Governing Law; Submission to Jurisdiction; etc.	26
	 	5.6	No Relationship to TARP	26
	 	5.7	Notices	26
	 	5.8	Assignment	27
	 	5.9	Severability	27
	 	5.10	No Third Party Beneficiaries	27
	 	5.11	Specific Performance	27
	 	5.12	Interpretation	28

 

    	Annex C (General Terms and Conditions)	Page 2

    	 

    

 

ARTICLE I

PURCHASE; CLOSING

 

1.1         Purchase.
  On the terms and subject to the conditions set forth in this Agreement, the Company agrees to sell to Treasury, and Treasury agrees
to purchase from the Company, at the Closing, the Preferred Shares for the aggregate price set forth on Annex A (the “Purchase
Price”).

 

1.2         Closing.
   (a)    On the terms and subject to the conditions set forth in this Agreement, the closing of the Purchase (the “Closing”)
will take place at the location specified in Annex A, at the time and on the date set forth in Annex A or as soon
as practicable thereafter, or at such other place, time and date as shall be agreed between the Company and Treasury. The time
and date on which the Closing occurs is referred to in this Agreement as the “Closing
Date”.

 

(b)         Subject to the fulfillment
or waiver of the conditions to the Closing in Section 1.3, at the Closing:

 

(i)          if Treasury holds
Previously Acquired Preferred Shares:

 

(A)        the Purchase
Price shall first be applied to pay the Repayment Amount;

 

(B)         if the Purchase
Price is less than the Repayment Amount, the Company shall pay the positive difference (if any) between the Repayment Amount and
the Purchase Price (a “Residual Amount”) to Treasury’s Office of Financial Stability by wire transfer
of immediately available United States funds to an account designated in writing by Treasury; and

 

(C)         upon receipt
of the full Repayment Amount (by application of the Purchase Price and, if applicable, the Company’s payment of the Residual
Amount), Treasury and the Company will consummate the Repayment;

 

(D)         the Company
will deliver to Treasury a statement of adjustment as contemplated by Section 13(J) of the Warrant; and

 

(E)         the Company
and Treasury will execute and deliver a properly completed repurchase document in the form attached hereto as Annex K, (the
“Repayment Document”).

 

(ii)         the Company will
deliver the Preferred Shares as evidenced by one or more certificates dated the Closing Date and bearing appropriate legends as
hereinafter provided for, in exchange for payment in full of the Purchase Price by application of the Purchase Price to the Repayment
and by wire transfer of immediately available United States funds to a bank account designated by the Company in the Initial Supplemental
Report, as applicable.

 

    	Annex C (General Terms and Conditions)	Page 3

    	 

    

 

1.3         Closing Conditions.
 The obligation of Treasury to consummate the Purchase is subject to the fulfillment (or waiver by Treasury) at or prior to the
Closing of each of the following conditions:

 

(a)         (i) any approvals
or authorizations of all United States federal, state, local, foreign and other governmental, regulatory or judicial authorities
(collectively, “Governmental Entities”)
required for the consummation of the Purchase shall have been obtained or made in form and substance reasonably satisfactory to
each party and shall be in full force and effect and all waiting periods required by United States and other applicable law, if
any, shall have expired and (ii) no provision of any applicable United States or other law and no judgment, injunction, order or
decree of any Governmental Entity shall prohibit the purchase and sale of the Preferred Shares as contemplated by this Agreement;

 

(b)         (i) the representations
and warranties of the Company set forth in (A) Sections 2.7 and 2.26 shall be true and correct in all respects as though made on
and as of the Closing Date; (B) Sections 2.1, 2.2, 2.3, 2.4, 2.5, 2.6, 2.19, 2.22, 2.23, 2.24 and 2.25 shall be true and correct
in all material respects as though made on and as of the Closing Date (other than representations and warranties that by their
terms speak as of another date, which representations and warranties shall be true and correct in all respects as of such other
date); and (C) Sections 2.8 through 2.18 and Sections 2.20 through 2.21 (disregarding all qualifications or limitations set forth
in such representations and warranties as to “materiality”, “Company Material Adverse Effect” and words
of similar import) shall be true and correct as though made on and as of the Closing Date (other than representations and warranties
that by their terms speak as of another date, which representations and warranties shall be true and correct as of such other date),
except to the extent that the failure of such representations and warranties referred to in this Section 1.3(b)(i)(C) to be so
true and correct, individually or in the aggregate, does not have and would not reasonably be expected to have a Company Material
Adverse Effect; and (ii) the Company shall have performed in all respects all obligations required to be performed by it under
this Agreement at or prior to the Closing;

 

(c)         the Company shall
have delivered to Treasury a certificate signed on behalf of the Company by an Executive Officer certifying to the effect that
the conditions set forth in Section 1.3(b) have been satisfied, in substantially the form of Annex G;

 

(d)         the Company shall
have duly adopted and filed with the Secretary of State of its jurisdiction of organization or other applicable Governmental Entity
an amendment to its certificate or articles of incorporation, articles of association, or similar organizational document (“Charter”)
in substantially the form of Annex F (the “Certificate
of Designation”) and the Company shall have delivered to Treasury a copy of the filed Certificate of Designation
with appropriate evidence from the Secretary of State or other applicable Governmental Entity that the filing has been accepted,
or if a filed copy is unavailable, a certificate signed on behalf of the Company by an Executive Officer certifying to the effect
that the filing of the Certificate of Designation has been accepted, in substantially the form attached hereto as Annex F;

 

(e)         the Company shall
have delivered to Treasury true, complete and correct certified copies of the Charter and bylaws of the Company;

 

    	Annex C (General Terms and Conditions)	Page 4

    	 

    

 

(f)          the Company shall
have delivered to Treasury a written opinion from counsel to the Company (which may be internal counsel), addressed to Treasury
and dated as of the Closing Date, in substantially the form of Annex J;

 

(g)         the Company shall
have delivered certificates in proper form or, with the prior consent of Treasury, evidence of shares in book-entry form, evidencing
the Preferred Shares to Treasury or its designee(s);

 

(h)         the Company shall
have delivered to Treasury a copy of the Disclosure Schedule on or prior to the Signing Date and, to the extent that any information
set forth on the Disclosure Schedule needs to be updated or supplemented to make it true, complete and correct as of the Closing
Date, (i) the Company shall have delivered to Treasury an update to the Disclosure Schedule (the “Disclosure
Update”), setting forth any information necessary to make the Disclosure Schedule true, correct and complete as
of the Closing Date and (ii) Treasury, in its sole discretion, shall have approved the Disclosure Update, provided, however,
that the delivery and acceptance of the Disclosure Update shall not limit or affect any rights of or remedies available to Treasury;

 

(i)          the Company shall
have delivered to Treasury on or prior to the Signing Date each of the consolidated financial statements of the Company and its
consolidated subsidiaries for each of the last three completed fiscal years of the Company (which shall be audited to the extent
audited financial statements are available prior to the Signing Date) (together with the Call Reports filed by the Company or the
IDI Subsidiary(ies) for each completed quarterly period since the last completed fiscal year, the “Company
Financial Statements”);

 

(j)          the Company shall
have delivered to Treasury, not later than five (5) business days prior to the Closing Date, a certificate (the “Initial
Supplemental Report”) in substantially the form attached hereto as Annex H setting forth a complete and accurate
statement of loans held by the Company (or if the Company is a Bank Holding Company or a Savings and Loan Holding Company, by the
IDI Subsidiary(ies)) in each of the categories described therein, for the time periods specified therein, (A) including a signed
certification of the Chief Executive Officer, the Chief Financial Officer and all directors or trustees of the Company or the IDI
Subsidiary(ies) who attested to the Call Reports for the quarters covered by such certificate, that such certificate (x) has been
prepared in conformance with the instructions issued by Treasury and (y) is true and correct to the best of their knowledge and
belief; and (B) completed for the last full calendar quarter prior to the Closing Date and the four (4) quarters ended September
30, 2009, December 31, 2009, March 31, 2010 and June 30, 2010;

 

(k)         prior to the Signing
Date, the Company shall have delivered to Treasury, the Appropriate Federal Banking Agency and, if the Company is a State-chartered
bank, the Appropriate State Banking Agency, a small business lending plan describing how the Company’s business strategy
and operating goals will allow it to address the needs of small businesses in the area it serves, as well as a plan to provide
linguistically and culturally appropriate outreach, where appropriate; and

 

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(l)          if the Company is
Matching Private Investment-Supported, on or after September 27, 2010 the Company or an Affiliate of the Company acceptable to
Treasury shall (i) have received equity capital (“Matching
Private Investment”) from one or more non-governmental investors (“Matching Private Investors”)
(A) in an amount equal to or greater than the Aggregate Dollar Amount of Matching Private Investment Required set forth on Annex
A (net of all dividends paid with respect to, and all repurchases and redemptions of, the Company’s equity securities), (B)
that is subordinate in right of payment of dividends, liquidation preference and redemption rights to the Preferred Shares and
(C) that is acceptable in form and substance to Treasury, in its sole discretion and (ii) have satisfied the following requirements
reasonably in advance of the Closing Date: (A) delivery of copies of the definitive documentation for the Matching Private Investment
to Treasury, (B) delivery of the organizational charts of such non-governmental investors to Treasury, each certified by the applicable
non-governmental investor and demonstrating that such non-governmental investor is not an Affiliate of the Company, (C) delivery
of any other documents or information as Treasury may reasonably request, in its sole discretion and (D) any other terms and conditions
imposed by Treasury or the Appropriate Federal Banking Agency, in their sole discretion.

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES

 

The Company represents
and warrants to Treasury that as of the Signing Date and as of the Closing Date (or such other date specified herein):

 

2.1         Organization,
Authority and Significant Subsidiaries.   The Company has been duly incorporated and is validly existing and in good standing
under the laws of its jurisdiction of organization, with the necessary power and authority to own, operate and lease its properties
and conduct its business as it is being currently conducted, and except as has not, individually or in the aggregate, had and would
not reasonably be expected to have a Company Material Adverse Effect, has been duly qualified as a foreign corporation for the
transaction of business and is in good standing under the laws of each other jurisdiction in which it owns or leases properties
or conducts any business so as to require such qualification; each subsidiary of the Company that would be considered a “significant
subsidiary” within the meaning of Rule 1-02(w) of Regulation S-X under the Securities Act of 1933 (the “Securities
Act”), has been duly organized and is validly existing in good standing under the laws of its jurisdiction of
organization. The Charter and bylaws of the Company, copies of which have been provided to Treasury prior to the Signing Date,
are true, complete and correct copies of such documents as in full force and effect as of the Signing Date and as of the Closing
Date.

 

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2.2         Capitalization.
  The outstanding shares of capital stock of the Company have been duly authorized and are validly issued and outstanding, fully
paid and nonassessable, and subject to no preemptive or similar rights (and were not issued in violation of any preemptive rights).
As of the Signing Date, the Company does not have outstanding any securities or other obligations providing the holder the right
to acquire its common stock (“Common Stock”)
or other capital stock that is not reserved for issuance as specified in Part 2.2 of the Disclosure Schedule, and the Company has
not made any other commitment to authorize, issue or sell any Common Stock or other capital stock. Since the last day of the fiscal
period covered by the last Call Report filed by the Company or the IDI Subsidiary(ies) prior to the Application Date (the “Capitalization
Date”), the Company has not (a) declared, and has no present intention of declaring, any dividends on its Common
Stock in a per-share amount greater than the per-share amount of declared dividends that are reflected in such Call Report; (b)
declared, and has no present intention of declaring (except as contemplated by the Certificate of Designation) any dividends on
any of its preferred stock in a per-share amount greater than the per-share amount of declared dividends that are reflected in
such Call Report; or (c) issued any shares of Common Stock or other capital stock, other than (i) shares issued upon the exercise
of stock options or delivered under other equity-based awards or other convertible securities or warrants which were issued and
outstanding on the Capitalization Date and disclosed in Part 2.2 of the Disclosure Schedule, (ii) shares disclosed in Part 2.2
of the Disclosure Schedule, and (iii) if the Company is Matching Private Investment-Supported, shares or other capital stock representing
Matching Private Investment disclosed in the “Matching Private Investment” section of Annex A. Except as disclosed
in Part 2.2 of the Disclosure Schedule, the Company has no agreements providing for the accelerated exercise, settlement or exchange
of any capital stock of the Company for Common Stock. Each holder of 5% or more of any class of capital stock of the Company and
such holder’s primary address are set forth in Part 2.2 of the Disclosure Schedule. The Company has received a representation
from each Matching Private Investor that such Matching Private Investor has not received or applied for any investment from the
SBLF, and the Company has no reason to believe that any such representation is inaccurate. If the Company is a Bank Holding Company
or a Savings and Loan Holding Company, (x) the percentage of each IDI Subsidiary’s issued and outstanding capital stock that
is owned by the Company is set forth on Part 2.2 of the Disclosure Schedule; and (y) all shares of issued and outstanding capital
stock of the IDI Subsidiary(ies) owned by the Company are free and clear of all liens, security interests, charges or encumbrances.
Since the Application Date, there has been no change in the organizational hierarchy information regarding the Company that was
available on the Application Date from the National Information Center of the Federal Reserve System.

 

2.3         Preferred Shares.
  The Preferred Shares have been duly and validly authorized, and, when issued and delivered pursuant to this Agreement, such Preferred
Shares will be duly and validly issued and fully paid and non-assessable, will not be issued in violation of any preemptive rights,
and will rank pari passu with or senior to all other series
or classes of preferred stock, whether or not designated, issued or outstanding, with respect to the payment of dividends and the
distribution of assets in the event of any dissolution, liquidation or winding up of the Company.

 

2.4         Compliance with
Identity Verification Requirements.   The Company and the Company Subsidiaries (to the extent such regulations are applicable
to the Company Subsidiaries) are in compliance with the requirements of Section 103.121 of title 31, Code of Federal Regulations.

 

2.5         Authorization,
Enforceability.

 

(a)         The Company has the
corporate power and authority to execute and deliver this Agreement and to carry out its obligations hereunder (which includes
the issuance of the Preferred Shares). The execution, delivery and performance by the Company of this Agreement and the consummation
of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company
and its stockholders, and no further approval or authorization is required on the part of the Company. This Agreement is a valid
and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to any limitations
of applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights generally and general equitable principles, regardless of whether such enforceability is considered in a proceeding at law
or in equity (“Bankruptcy Exceptions”).

 

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(b)         The execution, delivery
and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby and compliance by
the Company with the provisions hereof, will not (i) violate, conflict with, or result in a breach of any provision of, or constitute
a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination
of, or accelerate the performance required by, or result in a right of termination or acceleration of, or result in the creation
of, any lien, security interest, charge or encumbrance upon any of the properties or assets of the Company or any subsidiary of
the Company (each subsidiary, a “Company Subsidiary”
and, collectively, the “Company Subsidiaries”)
under any of the terms, conditions or provisions of (A) its organizational documents or (B) any note, bond, mortgage, indenture,
deed of trust, license, lease, agreement or other instrument or obligation to which the Company or any Company Subsidiary is a
party or by which it or any Company Subsidiary may be bound, or to which the Company or any Company Subsidiary or any of the properties
or assets of the Company or any Company Subsidiary may be subject, or (ii) subject to compliance with the statutes and regulations
referred to in the next paragraph, violate any statute, rule or regulation or any judgment, ruling, order, writ, injunction or
decree applicable to the Company or any Company Subsidiary or any of their respective properties or assets except, in the case
of clauses (i)(B) and (ii), for those occurrences that, individually or in the aggregate, have not had and would not reasonably
be expected to have a Company Material Adverse Effect.

 

(c)         Other than the filing
of the Certificate of Designation with the Secretary of State of its jurisdiction of organization or other applicable Governmental
Entity, such filings and approvals as are required to be made or obtained under any state “blue sky” laws and such
as have been made or obtained, no notice to, filing with, exemption or review by, or authorization, consent or approval of, any
Governmental Entity is required to be made or obtained by the Company in connection with the consummation by the Company of the
Purchase except for any such notices, filings, exemptions, reviews, authorizations, consents and approvals the failure of which
to make or obtain would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect.

 

2.6         Anti-takeover
Provisions and Rights Plan.   The Board of Directors of the Company (the “Board
of Directors”) has taken all necessary action to ensure that the transactions contemplated by this Agreement and
the consummation of the transactions contemplated hereby will be exempt from any anti-takeover or similar provisions of the Company’s
Charter and bylaws, and any other provisions of any applicable “moratorium”, “control share”, “fair
price”, “interested stockholder” or other anti-takeover laws and regulations of any jurisdiction.

 

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2.7         No Company Material
Adverse Effect.    Since the last day of the fiscal period covered by the last Call Report filed by the Company or the IDI Subsidiary(ies)
prior to the Application Date, no fact, circumstance, event, change, occurrence, condition or development has occurred that, individually
or in the aggregate, has had or would reasonably be expected to have a Company Material Adverse Effect.

 

2.8         Company Financial
Statements.    The Company Financial Statements present fairly in all material respects the consolidated financial position of
the Company and its consolidated subsidiaries as of the dates indicated therein and the consolidated results of their operations
for the periods specified therein; and except as stated therein, such financial statements (a) were prepared in conformity with
GAAP applied on a consistent basis (except as may be noted therein) and (b) have been prepared from, and are in accordance with,
the books and records of the Company and the Company Subsidiaries.

 

2.9         Reports.

 

(a)         Since December 31,
2007, the Company and each Company Subsidiary has filed all reports, registrations, documents, filings, statements and submissions,
together with any amendments thereto, that it was required to file with any Governmental Entity (the foregoing, collectively, the
“Company Reports”) and has
paid all fees and assessments due and payable in connection therewith, except, in each case, as would not, individually or in the
aggregate, reasonably be expected to have a Company Material Adverse Effect. As of their respective dates of filing, the Company
Reports complied in all material respects with all statutes and applicable rules and regulations of the applicable Governmental
Entities.

 

(b)         The records, systems,
controls, data and information of the Company and the Company Subsidiaries are recorded, stored, maintained and operated under
means (including any electronic, mechanical or photographic process, whether computerized or not) that are under the exclusive
ownership and direct control of the Company or the Company Subsidiaries or their accountants (including all means of access thereto
and therefrom), except for any non-exclusive ownership and non-direct control that would not reasonably be expected to have a material
adverse effect on the system of internal accounting controls described below in this Section 2.9(b). The Company (i) has implemented
and maintains adequate disclosure controls and procedures to ensure that material information relating to the Company, including
the consolidated Company Subsidiaries, is made known to the chief executive officer and the chief financial officer of the Company
by others within those entities, and (ii) has disclosed, based on its most recent evaluation prior to the Signing Date, to the
Company’s outside auditors and the audit committee of the Board of Directors (A) any significant deficiencies and material
weaknesses in the design or operation of internal controls that are reasonably likely to adversely affect the Company’s ability
to record, process, summarize and report financial information and (B) any fraud, whether or not material, that involves management
or other employees who have a significant role in the Company’s internal controls over financial reporting.

 

2.10       No Undisclosed
Liabilities.    Neither the Company nor any of the Company Subsidiaries has any liabilities or obligations of any nature (absolute,
accrued, contingent or otherwise) which are not properly reflected in the Company Financial Statements to the extent required to
be so reflected and, if applicable, reserved against in accordance with GAAP applied on a consistent basis, except for (a) liabilities
that have arisen since the last fiscal year end in the ordinary and usual course of business and consistent with past practice
and (b) liabilities that, individually or in the aggregate, have not had and would not reasonably be expected to have a Company
Material Adverse Effect.

 

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2.11       Offering of
Securities.    Neither the Company nor any person acting on its behalf has taken any action (including any offering of any securities
of the Company under circumstances which would require the integration of such offering with the offering of any of the Preferred
Shares under the Securities Act, and the rules and regulations of the Securities and Exchange Commission (the “SEC”)
promulgated thereunder), which might subject the offering, issuance or sale of any of the Preferred Shares to Treasury pursuant
to this Agreement to the registration requirements of the Securities Act.

 

2.12       Litigation and
Other Proceedings.    Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material
Adverse Effect, there is no (a) pending or, to the knowledge of the Company, threatened, claim, action, suit, investigation or
proceeding, against the Company or any Company Subsidiary or to which any of their assets are subject nor is the Company or any
Company Subsidiary subject to any order, judgment or decree or (b) unresolved violation, criticism or exception by any Governmental
Entity with respect to any report or relating to any examinations or inspections of the Company or any Company Subsidiaries. There
is no claim, action, suit, investigation or proceeding pending or, to the Company’s knowledge, threatened against any institution-affiliated
party (as defined in 12 U.S.C. §1813(u)) of the Company or any of the IDI Subsidiaries that, if determined or resolved in
a manner adverse to such institution-affiliated party, could result in such institution-affiliated party being prohibited from
participation in the conduct of the affairs of any financial institution or holding company of any financial institution and, to
the Company’s knowledge, there are no facts or circumstances could reasonably be expected to provide a basis for any such
claim, action, suit, investigation or proceeding.

 

2.13       Compliance with
Laws.    Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect,
the Company and the Company Subsidiaries have all permits, licenses, franchises, authorizations, orders and approvals of, and have
made all filings, applications and registrations with, Governmental Entities that are required in order to permit them to own or
lease their properties and assets and to carry on their business as presently conducted and that are material to the business of
the Company or such Company Subsidiary. Except as set forth in Part 2.13 of the Disclosure Schedule, the Company and the Company
Subsidiaries have complied in all respects and are not in default or violation of, and none of them is, to the knowledge of the
Company, under investigation with respect to or, to the knowledge of the Company, have been threatened to be charged with or given
notice of any violation of, any applicable domestic (federal, state or local) or foreign law, statute, ordinance, license, rule,
regulation, policy or guideline, order, demand, writ, injunction, decree or judgment of any Governmental Entity, other than such
noncompliance, defaults or violations that would not, individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect. Except for statutory or regulatory restrictions of general application, no Governmental Entity has placed
any restriction on the business or properties of the Company or any Company Subsidiary that would, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect.

 

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2.14       Employee Benefit
Matters.    Except as would not reasonably be expected to have, either individually or in the aggregate, a Company Material Adverse
Effect: (a) each “employee benefit plan” (within the meaning of Section 3(3) of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”))
providing benefits to any current or former employee, officer or director of the Company or any member of its “Controlled
Group” (defined as any organization which is a member of a controlled group of corporations within the meaning
of Section 414 of the Internal Revenue Code of 1986, as amended (the “Code”))
that is sponsored, maintained or contributed to by the Company or any member of its Controlled Group and for which the Company
or any member of its Controlled Group would have any liability, whether actual or contingent (each, a “Plan”)
has been maintained in compliance with its terms and with the requirements of all applicable statutes, rules and regulations, including
ERISA and the Code; (b) with respect to each Plan subject to Title IV of ERISA (including, for purposes of this clause (b), any
plan subject to Title IV of ERISA that the Company or any member of its Controlled Group previously maintained or contributed to
in the six years prior to the Signing Date), (1) no “reportable event” (within the meaning of Section 4043(c) of ERISA),
other than a reportable event for which the notice period referred to in Section 4043(c) of ERISA has been waived, has occurred
in the three years prior to the Signing Date or is reasonably expected to occur, (2) no “accumulated funding deficiency”
(within the meaning of Section 302 of ERISA or Section 412 of the Code), whether or not waived, has occurred in the three years
prior to the Signing Date or is reasonably expected to occur, (3) the fair market value of the assets under each Plan exceeds the
present value of all benefits accrued under such Plan (determined based on the assumptions used to fund such Plan) and (4) neither
the Company nor any member of its Controlled Group has incurred in the six years prior to the Signing Date, or reasonably expects
to incur, any liability under Title IV of ERISA (other than contributions to the Plan or premiums to the Pension Benefit Guaranty
Corporation in the ordinary course and without default) in respect of a Plan (including any Plan that is a “multiemployer
plan”, within the meaning of Section 4001(c)(3) of ERISA); and (c) each Plan that is intended to be qualified under Section
401(a) of the Code has received a favorable determination letter from the Internal Revenue Service with respect to its qualified
status that has not been revoked, or such a determination letter has been timely applied for but not received by the Signing Date,
and nothing has occurred, whether by action or by failure to act, which could reasonably be expected to cause the loss, revocation
or denial of such qualified status or favorable determination letter.

 

2.15       Taxes.    Except
as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect, (a) the
Company and the Company Subsidiaries have filed all federal, state, local and foreign income and franchise Tax returns (together
with any schedules and attached thereto) required to be filed through the Signing Date, subject to permitted extensions, and have
paid all Taxes due thereon, (b) all such Tax returns (together with any schedules and attached thereto) are true, complete and
correct in all material respects and were prepared in compliance with all applicable laws and (c) no Tax deficiency has been
determined adversely to the Company or any of the Company Subsidiaries, nor does the Company have any knowledge of any Tax deficiencies.

 

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2.16       Properties and
Leases.    Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect,
the Company and the Company Subsidiaries have good and marketable title to all real properties and all other properties and assets
owned by them, in each case free from liens (including, without limitation, liens for Taxes), encumbrances, claims and defects
that would affect the value thereof or interfere with the use made or to be made thereof by them. Except as would not, individually
or in the aggregate, reasonably be expected to have a Company Material Adverse Effect, the Company and the Company Subsidiaries
hold all leased real or personal property under valid and enforceable leases with no exceptions that would interfere with the use
made or to be made thereof by them.

 

2.17       Environmental
Liability.    Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse
Effect:

 

(a)         there is no legal,
administrative, or other proceeding, claim or action of any nature seeking to impose, or that would reasonably be expected to result
in the imposition of, on the Company or any Company Subsidiary, any liability relating to the release of hazardous substances as
defined under any local, state or federal environmental statute, regulation or ordinance, including the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, pending or, to the Company’s knowledge, threatened against the Company
or any Company Subsidiary;

 

(b)         to the Company’s
knowledge, there is no reasonable basis for any such proceeding, claim or action; and

 

(c)         neither the Company
nor any Company Subsidiary is subject to any agreement, order, judgment or decree by or with any court, Governmental Entity or
third party imposing any such environmental liability.

 

2.18       Risk Management
Instruments.    Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse
Effect, all derivative instruments, including, swaps, caps, floors and option agreements, whether entered into for the Company’s
own account, or for the account of one or more of the Company Subsidiaries or its or their customers, were entered into (i) only
in the ordinary course of business, (ii) in accordance with prudent practices and in all material respects with all applicable
laws, rules, regulations and regulatory policies and (iii) with counterparties believed to be financially responsible at the time;
and each of such instruments constitutes the valid and legally binding obligation of the Company or one of the Company Subsidiaries,
enforceable in accordance with its terms, except as may be limited by the Bankruptcy Exceptions. Neither the Company or the Company
Subsidiaries, nor, to the knowledge of the Company, any other party thereto, is in breach of any of its obligations under any such
agreement or arrangement other than such breaches that would not, individually or in the aggregate, reasonably be expected to have
a Company Material Adverse Effect.

 

2.19       Agreements with
Regulatory Agencies.    Except as set forth in Part 2.19 of the Disclosure Schedule, neither the Company nor any Company Subsidiary
is subject to any cease-and-desist or other similar order or enforcement action issued by, or is a party to any written agreement,
consent agreement or memorandum of understanding with, or is a party to any commitment letter or similar undertaking to, or is
subject to any capital directive by, or since December 31, 2007, has adopted any board resolutions at the request of, any Governmental
Entity that currently restricts the conduct of its business or that in any material manner relates to its capital adequacy, its
liquidity and funding policies and practices, its ability to pay dividends, its credit, risk management or compliance policies
or procedures, its internal controls, its management or its operations or business (each item in this sentence, a “Regulatory
Agreement”), nor has the Company or any Company Subsidiary been advised since December 31, 2007, by any such Governmental
Entity that it is considering issuing, initiating, ordering, or requesting any such Regulatory Agreement. The Company and each
Company Subsidiary is in compliance with each Regulatory Agreement to which it is party or subject, and neither the Company nor
any Company Subsidiary has received any notice from any Governmental Entity indicating that either the Company or any Company Subsidiary
is not in compliance with any such Regulatory Agreement.

 

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2.20       Insurance.
    The Company and the Company Subsidiaries are insured with reputable insurers against such risks and in such amounts as the management
of the Company reasonably has determined to be prudent and consistent with industry practice. The Company and the Company Subsidiaries
are in material compliance with their insurance policies and are not in default under any of the material terms thereof, each such
policy is outstanding and in full force and effect, all premiums and other payments due under any material policy have been paid,
and all claims thereunder have been filed in due and timely fashion, except, in each case, as would not, individually or in the
aggregate, reasonably be expected to have a Company Material Adverse Effect.

 

2.21       Intellectual
Property.    Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse
Effect, (i) the Company and each Company Subsidiary owns or otherwise has the right to use, all intellectual property rights, including
all trademarks, trade dress, trade names, service marks, domain names, patents, inventions, trade secrets, know-how, works of authorship
and copyrights therein, that are used in the conduct of their existing businesses and all rights relating to the plans, design
and specifications of any of its branch facilities (“Proprietary
Rights”) free and clear of all liens and any claims of ownership by current or former employees, contractors,
designers or others and (ii) neither the Company nor any of the Company Subsidiaries is materially infringing, diluting, misappropriating
or violating, nor has the Company or any of the Company Subsidiaries received any written (or, to the knowledge of the Company,
oral) communications alleging that any of them has materially infringed, diluted, misappropriated or violated, any of the Proprietary
Rights owned by any other person. Except as would not, individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect, to the Company’s knowledge, no other person is infringing, diluting, misappropriating or violating,
nor has the Company or any or the Company Subsidiaries sent any written communications since December 31, 2007, alleging that any
person has infringed, diluted, misappropriated or violated, any of the Proprietary Rights owned by the Company and the Company
Subsidiaries.

 

2.22       Brokers and
Finders.    Treasury has no liability for any amounts that any broker, finder or investment banker is entitled to for any financial
advisory, brokerage, finder’s or other fee or commission in connection with this Agreement or the transactions contemplated
hereby based upon arrangements made by or on behalf of the Company or any Company Subsidiary.

 

2.23       Disclosure Schedule.
  The Company has delivered the Disclosure Schedule and, if applicable, the Disclosure Update to Treasury and the information contained
in the Disclosure Schedule, as modified by the information contained in the Disclosure Update, if applicable, is true, complete
and correct.

 

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2.24       Previously Acquired
Preferred Shares.    If Treasury holds Previously Acquired Preferred Shares:

 

(a)         The Company
has not breached any representation, warranty or covenant set forth in the Original Letter Agreement or any of the other documents
governing the Previously Acquired Preferred Stock.

 

(b)         The Company
has paid to Treasury: (i) if the Previously Acquired Preferred Stock is cumulative, all accrued and unpaid dividends and/or
interest then due on the Previously Acquired Preferred Stock; or (ii) if the Previously Acquired Preferred Stock is non-cumulative,
all unpaid dividends and/or interest due on the Previously Acquired Preferred Shares for the fiscal quarter prior to the Closing
Date plus the accrued and unpaid dividends and/or interest due on the Previously Acquired Preferred Shares as of the Closing
Date for the fiscal quarter in which the Closing shall occur.

 

2.25       Related Party
Transactions.    Neither the Company nor any Company Subsidiary has made any extension of credit to any director or Executive
Officer of the Company or any Company Subsidiary, any holder of 5% or more of the Company’s issued and outstanding capital
stock, or any of their respective spouses or children or to any Affiliate of any of the foregoing (each, a “Related Party”),
other than in compliance with 12 C.F.R Part 215 (Regulation O). Except as set forth in Part 2.25 of the Disclosure Schedule, to
the Company’s knowledge, no Related Party has any (i) material commercial, industrial, banking, consulting, legal, accounting,
charitable or familial relationship with any vendor or material customer of the Company or any Company Subsidiary that is not on
arms-length terms, or (ii) direct or indirect ownership interest in any person or entity with which the Company or any Company
Subsidiary has a material business relationship that is not on arms-length terms (not including Publicly-traded entities in which
such person owns less than two percent (2%) of the outstanding capital stock).

 

2.26       Ability to Pay
Dividends.    The Company has all permits, licenses, franchises, authorizations, orders and approvals of, and has made all filings,
applications and registrations with, Governmental Entities and third parties that are required in order to permit the Company to
declare and pay dividends on the Preferred Shares on the Dividend Payment Dates set forth in the Certificate of Designation.

 

ARTICLE III

COVENANTS

 

3.1         Affirmative
Covenants.     The Company hereby covenants and agrees with Treasury that:

 

(a)         Commercially Reasonable
Efforts.   Subject to the terms and conditions of this Agreement, each of the parties will use its commercially reasonable efforts
in good faith to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or desirable,
or advisable under applicable laws, so as to permit consummation of the Purchase as promptly as practicable and otherwise to enable
consummation of the transactions contemplated hereby and shall use commercially reasonable efforts to cooperate with the other
party to that end.

 

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(b)         Certain Notifications
until Closing.    From the Signing Date until the Closing, the Company shall promptly notify Treasury of (i) any fact, event or
circumstance of which it is aware and which would reasonably be expected to cause any representation or warranty of the Company
contained in this Agreement to be untrue or inaccurate in any material respect or to cause any covenant or agreement of the Company
contained in this Agreement not to be complied with or satisfied in any material respect and (ii) except as Previously Disclosed,
any fact, circumstance, event, change, occurrence, condition or development of which the Company is aware and which, individually
or in the aggregate, has had or would reasonably be expected to have a Company Material Adverse Effect; provided,
however, that delivery of any notice pursuant to this Section
3.1(b) shall not limit or affect any rights of or remedies available to Treasury.

 

(c)         Access, Information
and Confidentiality.

 

(i)          From the Signing
Date until the date on which all of the Preferred Shares have been redeemed in whole, the Company will permit, and shall cause
each of the Company’s Subsidiaries to permit, Treasury, the Oversight Officials and their respective agents, consultants,
contractors and advisors to (x) examine any books, papers, records, Tax returns (including all schedules attached thereto), data
and other information; (y) make copies thereof; and (z) discuss the affairs, finances and accounts of the Company and the Company
Subsidiaries with the personnel of the Company and the Company Subsidiaries, all upon reasonable notice; provided, that:

 

		(A)	any examinations and discussions pursuant to this Section 3.1(c)(i) shall be conducted during normal
business hours and in such manner as not to interfere unreasonably with the conduct of the business of the Company;

 

		(B)	neither the Company nor any Company Subsidiary shall be required by this Section 3.1(c)(i) to disclose
any information to the extent (x) prohibited by applicable law or regulation, or (y) that such disclosure would reasonably be expected
to cause a violation of any agreement to which the Company or any Company Subsidiary is a party or would cause a risk of a loss
of privilege to the Company or any Company Subsidiary (provided that
the Company shall use commercially reasonable efforts to make appropriate substitute disclosure arrangements under circumstances
where the restrictions in this clause (B) apply);

 

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		(C)	the obligations of the Company and the Company Subsidiaries to disclose information pursuant to
this Section 3.1(c)(i) to any Oversight Official or any agent, consultant, contractor and advisor thereof, such Oversight Official
shall have agreed, with respect to documents obtained under this Section 3.1(c)(i), to follow applicable law and regulation (and
the applicable customary policies and procedures) regarding the dissemination of confidential materials, including redacting confidential
information from the public version of its reports and soliciting input from the Company as to information that should be afforded
confidentiality, as appropriate; and

 

		(D)	for avoidance of doubt, such examinations and discussions may, at Treasury’s option, be conducted
on site at any office of the Company or any Company Subsidiary.

 

(ii)         From the Signing
Date until the date on which all of the Preferred Shares have been redeemed in whole, the Company will deliver, or will cause to
be delivered, to Treasury:

 

		(A)	as soon as available after the end of each fiscal year of the Company, and in any event within
120 days thereafter, a consolidated balance sheet of the Company as of the end of such fiscal year, and consolidated statements
of income, retained earnings and cash flows of the Company for such year, in each case prepared in accordance with GAAP applied
on a consistent basis and setting forth in each case in comparative form the figures for the previous fiscal year of the Company
and which shall be audited to the extent audited financial statements are available;

 

		(B)	as soon as available after the end of the first, second and third quarterly periods in each fiscal
year of the Company, a copy of any quarterly reports provided to other stockholders of the Company or Company management by the
Company;

 

		(C)	as soon as available after the Company receives any assessment of the Company’s internal
controls, a copy of such assessment (other than assessments provided by the Appropriate Federal Banking Agency or the Appropriate
State Banking Agency that the Company is prohibited by applicable law or regulation from disclosing to Treasury);

 

		(D)	annually on a date specified by Treasury, a completed survey, in a form specified by Treasury,
providing, among other things, a description of how the Company has utilized the funds the Company received hereunder in connection
with the sale of the Preferred Shares and the effects of such funds on the operations and status of the Company;

 

    	Annex C (General Terms and Conditions)	Page 16

    	 

    

 

		(E)	as soon as such items become effective, any amendments to the Charter, bylaws or other organizational
documents of the Company; and

 

		(F)	at the same time as such items are sent to any stockholders of the Company, copies of any information
or documents sent by the Company to its stockholders.

 

(iii)        Treasury will
use reasonable best efforts to hold, and will use reasonable best efforts to cause its agents, consultants, contractors and advisors
and United States executive branch officials and employees, to hold, in confidence all non-public records, books, contracts, instruments,
computer data and other data and information (collectively, “Information”)
concerning the Company furnished or made available to it by the Company or its representatives pursuant to this Agreement (except
to the extent that such information can be shown to have been (A) previously known by such party on a non-confidential basis, (B)
in the public domain through no fault of such party or (C) later lawfully acquired from other sources by the party to which it
was furnished (and without violation of any other confidentiality obligation)); provided
that nothing herein shall prevent Treasury from disclosing any Information to the extent required by applicable laws
or regulations or by any subpoena or similar legal process. Treasury understands that the Information may contain commercially
sensitive confidential information entitled to an exception from a Freedom of Information Act request.

 

(iv)       Treasury’s
information rights pursuant to Section 3.1(c)(ii)(A), (B), (C), (E) and (F) and Treasury’s right to receive certifications
from the Company pursuant to Section 3.1(d)(i) may be assigned by Treasury to a transferee or assignee of the Preferred Shares
with a liquidation preference of no less than an amount equal to 2% of the initial aggregate liquidation preference of the Preferred
Shares.

 

(v)        Nothing in this
Section shall be construed to limit the authority that any Oversight Official or any other applicable regulatory authority
has under law.

 

(vi)       The Company shall
provide to Treasury all such information as Treasury may request from time to time for the purpose of carrying out the study required
by Section 4112 of the SBJA.

 

(d)         Quarterly Supplemental
Reports and Annual Certifications.

 

(i)          Concurrently with
the submission of Call Reports by the Company or the IDI Subsidiary(ies) (as the case may be) for each quarter ending after the
Closing Date, the Company shall deliver to Treasury a certificate in substantially the form attached hereto as Annex H
setting forth a complete and accurate statement of loans held by the Company in each of the categories described therein, for the
time periods specified therein, (A) including a signed certification of the Chief Executive Officer, the Chief Financial Officer
and all directors or trustees of the Company or the IDI Subsidiary(ies) who attested to the Call Report for the quarter covered
by such certificate, that such certificate (x) has been prepared in conformance with the instructions issued by Treasury and (y)
is true and correct to the best of their knowledge and belief; (B) completed for such quarter (each, a “Quarterly Supplemental
Report”).

 

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(ii)         Within ninety (90)
days after the end of each fiscal year of the Company during which the Initial Supplemental Report is submitted pursuant to Section
1.3(j) or the first ten (10) Quarterly Supplemental Reports are submitted pursuant to Section 3.1(d)(i), the Company shall deliver
to Treasury a certification from the Company’s independent auditors that the Initial Supplemental Report and/or Quarterly
Supplemental Reports during such fiscal year are complete and accurate with respect to accounting matters, including policies and
procedures and controls over such.

 

(iii)        Until the date
on which the Preferred Shares are redeemed pursuant to Section 5 of the Certificate of Designation, within ninety (90) days after
the end of each fiscal year of the Company, the Company shall deliver to Treasury a certificate in substantially the form attached
hereto as Annex I, signed on behalf of the Company by an Executive Officer.

 

(iv)       If any Initial
Supplemental Report or Quarterly Supplemental Report is inaccurate, Treasury shall be entitled to recover from the Company, upon
demand, the amount of any difference between (x) the amount of the dividend payment(s) actually made to Treasury based on such
inaccurate report and (y) the correct amount of the dividend payment(s) that should have been made, but for such inaccuracy. The
Company shall provide Treasury with a written description of any such inaccuracy within three (3) business days after the Company’s
discovery thereof.

 

(v)        Treasury shall have
the right from time to time to modify Annex H, by posting an amended and restated version of Annex H on Treasury’s
web site, to conform Annex H to (A) reflect changes in GAAP, (B) reflect changes in the form or content of, or definitions
used in, Call Reports, or (C) to make clarifications and/or technical corrections as Treasury determines to be reasonably necessary.
Notwithstanding anything herein to the contrary, upon posting by Treasury on its web site, Annex H shall be deemed to be
amended and restated as so posted, without the need for any further act on the part of any person or entity. If any such modification
includes a change to the caption or number of any line item of Annex H, any reference herein to such line item shall thereafter
be a reference to such re-captioned or re-numbered line item.

 

(e)         Bank and Thrift
Holding Company Status.    If the Company is a Bank Holding Company or a Savings and Loan Holding Company on the Signing Date,
then the Company shall maintain its status as a Bank Holding Company or Savings and Loan Holding Company, as the case may be, for
as long as Treasury owns any Preferred Shares. The Company shall redeem all Preferred Shares held by Treasury prior to terminating
its status as a Bank Holding Company or Savings and Loan Holding Company, as applicable.

 

(f)          Predominantly Financial.
   For as long as Treasury owns any Preferred Shares, the Company, to the extent it is not itself an insured depository institution,
agrees to remain predominantly engaged in financial activities. A company is predominantly engaged in financial activities if the
annual gross revenues derived by the company and all subsidiaries of the company (excluding revenues derived from subsidiary depository
institutions), on a consolidated basis, from engaging in activities that are financial in nature or are incidental to a financial
activity under subsection (k) of Section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)) represent at least 85 percent
of the consolidated annual gross revenues of the company.

 

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(g)         Capital Covenant.
  From the Signing Date until the date on which all of the Preferred Shares have been redeemed in whole, the Company and the Company
Subsidiaries shall maintain such capital as may be necessary to meet the minimum capital requirements of the Appropriate Federal
Banking Agency, as in effect from time to time.

 

(h)         Reporting Requirements.
  Prior to the date on which all of the Preferred Shares have been redeemed in whole, the Company covenants and agrees that, at all
times on or after the Closing Date, (i) to the extent it is subject to the reporting requirements of Section 13 or 15(d) of the
Exchange Act, it shall comply with the terms and conditions set forth in Annex E or (ii) as soon as practicable after the
date that the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, it shall comply
with the terms and conditions set forth in Annex E.

 

(i)          Transfer of Proceeds
to Depository Institutions.   If the Company is a Bank Holding Company or a Savings and Loan Holding Company, the Company shall
immediately transfer to the IDI Subsidiaries, as equity capital contributions (in a manner that will cause such equity capital
contributions to qualify for inclusion in the Tier 1 capital of the IDI Subsidiaries), not less than ninety percent (90%) of the
proceeds it receives in connection with the sale of Preferred Shares; provided, however, that:

 

(A)       no IDI Subsidiary
shall receive any amount pursuant to this Section 3.1(i) in excess of (A) three percent (3%) of the insured depository institution’s
Total Risk-Weighted Assets as reported in its Call Report filed immediately prior to the Application Date, if the insured depository
institution has Total Assets of more than $1,000,000,000 and less than $10,000,000,000 as of December 31, 2009or (B) five percent
(5%) of the IDI Subsidiary’s Total Risk-Weighted Assets as reported in its Call Report filed immediately prior to the Application
Date, if the IDI Subsidiary has Total Assets of $1,000,000,000 or less as of December 31, 2009; and

 

(B)        if Treasury
held Previously Acquired Preferred Shares immediately prior to the Closing Date, the amount required to be transferred pursuant
this Section 3.1(i) shall be the difference obtained by subtracting the Repayment Amount from the Purchase Price (unless the Purchase
Price is less than the Repayment Amount, in which case no amount shall be required to be transferred pursuant to this Section 3.1(i)).

 

(j)          Outreach to Minorities,
Women and Veterans.     The Company shall comply with Section 4103(d)(8) of the SBJA.

 

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(k)         Certification Related
to Sex Offender Registration and Notification Act.   The Company shall obtain from any business to which it makes a loan that
is funded in whole or in part using funds from the Purchase Price a written certification that no principal of such business has
been convicted of a sex offense against a minor (as such terms are defined in section 111 of the Sex Offender Registration and
Notification Act, 42 U.S.C. §16911). The Company shall retain all such certifications in accordance with standard record keeping
practices established by the Appropriate Federal Banking Agency.

 

3.2         Negative Covenants.
  The Company hereby covenants and agrees with Treasury that:

 

(a)         Certain Transactions.

 

(i)          The Company shall
not merge or consolidate with, or sell, transfer or lease all or substantially all of its property or assets to, any other party
unless the successor, transferee or lessee party (or its ultimate parent entity), as the case may be (if not the Company), expressly
assumes the due and punctual performance and observance of each and every covenant, agreement and condition of this Agreement to
be performed and observed by the Company.

 

(ii)         Without the prior
written consent of Treasury, until such time as Treasury shall cease to own any Preferred Shares, the Company shall not permit
any of its “significant subsidiaries” (as such term is defined in Rule 12b-2 promulgated under the Exchange Act) to
(A) engage in any merger, consolidation, statutory share exchange or similar transaction following the consummation of which such
significant subsidiary is not wholly-owned by the Company, (B) dissolve or sell all or substantially all of its assets or property
other than in connection with an internal reorganization or consolidation involving wholly-owned subsidiaries of the Company or
(C) issue or sell any shares of its capital stock or any securities convertible or exercisable for any such shares, other than
issuances or sales in connection with an internal reorganization or consolidation involving wholly-owned subsidiaries of the Company.

 

(b)         Restriction on
Dividends and Repurchases.   The Company covenants and agrees that it shall not violate any of the restrictions on dividends,
distributions, redemptions, repurchases, acquisitions and related actions set forth in the Certificate of Designation, which are
incorporated by reference herein as if set forth in full.

 

(c)         Related Party Transactions.
  Until such time as Treasury ceases to own any debt or equity securities of the Company, including the Preferred Shares, the Company
and the Company Subsidiaries shall not enter into transactions with Affiliates or related persons (within the meaning of Item 404
under the SEC’s Regulation S-K) unless (A) such transactions are on terms no less favorable to the Company and the Company
Subsidiaries than could be obtained from an unaffiliated third party, and (B) have been approved by the audit committee of the
Board of Directors or comparable body of independent directors of the Company, or if there are no independent directors, the Board
of Directors, provided that the Board of Directors shall
maintain written documentation which supports its determination that the transaction meets the requirements of clause (A) of this
Section 3.2(c).

 

    	Annex C (General Terms and Conditions)	Page 20

    	 

    

 

ARTICLE IV

ADDITIONAL AGREEMENTS

 

4.1         Purchase for
Investment.   Treasury acknowledges that the Preferred Shares have not been registered under the Securities Act or under any
state securities laws. Treasury (a) is acquiring the Preferred Shares pursuant to an exemption from registration under the Securities
Act solely for investment with no present intention to distribute them to any person in violation of the Securities Act or any
applicable U.S. state securities laws, (b) will not sell or otherwise dispose of any of the Preferred Shares, except in compliance
with the registration requirements or exemption provisions of the Securities Act and any applicable U.S. state securities laws,
and (c) has such knowledge and experience in financial and business matters and in investments of this type that it is capable
of evaluating the merits and risks of the Purchase and of making an informed investment decision.

 

4.2         Legends.
    (a)     Treasury agrees that all certificates or other instruments representing the Preferred Shares will bear a legend substantially
to the following effect:

 

“THE SECURITIES REPRESENTED
BY THIS INSTRUMENT ARE NOT SAVINGS ACCOUNTS, DEPOSITS OR OTHER OBLIGATIONS OF A BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY.

 

THE SECURITIES REPRESENTED BY THIS
INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES
LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO
IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR
SUCH LAWS. EACH PURCHASER OF THE SECURITIES REPRESENTED BY THIS INSTRUMENT IS NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION
FROM SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER (THE “144A EXEMPTION”). IF ANY TRANSFEREE OF
THE SECURITIES REPRESENTED BY THIS INSTRUMENT IS ADVISED BY THE TRANSFEROR THAT SUCH TRANSFEROR IS RELYING ON THE 144A EXEMPTION,
SUCH TRANSFEREE BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT), (2) AGREES THAT IT WILL NOT OFFER, SELL OR OTHERWISE TRANSFER THE SECURITIES REPRESENTED BY
THIS INSTRUMENT EXCEPT (A) PURSUANT TO A REGISTRATION STATEMENT WHICH IS THEN EFFECTIVE UNDER THE SECURITIES ACT, (B) FOR SO LONG
AS THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES
IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, (C) TO THE ISSUER OR (D) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

 

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THIS INSTRUMENT IS ISSUED SUBJECT
TO THE RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS OF A SECURITIES PURCHASE AGREEMENT BETWEEN THE ISSUER OF THESE SECURITIES
AND TREASURY, A COPY OF WHICH IS ON FILE WITH THE ISSUER. THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE
TRANSFERRED EXCEPT IN COMPLIANCE WITH SAID AGREEMENT. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH SAID AGREEMENT WILL BE
VOID.”

 

(b)         In the event that
any Preferred Shares (i) become registered under the Securities Act or (ii) are eligible to be transferred without restriction
in accordance with Rule 144 or another exemption from registration under the Securities Act (other than Rule 144A), the Company
shall issue new certificates or other instruments representing such Preferred Shares, which shall not contain the applicable legends
in Section 4.2(a) above; provided that Treasury surrenders
to the Company the previously issued certificates or other instruments.

 

4.3         Transfer of Preferred
Shares.   Subject to compliance with applicable securities laws, Treasury shall be permitted to transfer, sell, assign or otherwise
dispose of (“Transfer”) all
or a portion of the Preferred Shares at any time, and the Company shall take all steps as may be reasonably requested by Treasury
to facilitate the Transfer of the Preferred Shares, including without limitation, as set forth in Section 4.4, provided
that Treasury shall not Transfer any Preferred Shares if such transfer would require the Company to be subject to the
periodic reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange
Act”) and the Company was not already subject to such requirements. In furtherance of the foregoing, the Company
shall provide reasonable cooperation to facilitate any Transfers of the Preferred Shares, including, as is reasonable under the
circumstances, by furnishing such information concerning the Company and its business as a proposed transferee may reasonably request
and making management of the Company reasonably available to respond to questions of a proposed transferee in accordance with customary
practice, subject in all cases to the proposed transferee agreeing to a customary confidentiality agreement.

 

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4.4         Rule 144; Rule
144A; 4(11⁄2) Transactions. (a)  At all times after the Signing Date, the Company covenants that (1) it will, upon the
request of Treasury or any subsequent holders of the Preferred Shares (“Holders”),
use its reasonable best efforts to (x), to the extent any Holder is relying on Rule 144 under the Securities Act to sell any
of the Preferred Shares, make “current public information” available, as provided in Section (c)(1) of Rule 144 (if
the Company is a “Reporting Issuer” within the meaning of Rule 144) or in Section (c)(2) of Rule 144 (if the Company
is a “Non-Reporting Issuer” within the meaning of Rule 144), in either case for such time period as necessary to permit
sales pursuant to Rule 144, (y), to the extent any Holder is relying on the so-called “Section 4(11⁄2)”
exemption to sell any of its Preferred Shares, prepare and provide to such Holder such information, including the preparation
of private offering memoranda or circulars or financial information, as the Holder may reasonably request to enable the sale of
the Preferred Shares pursuant to such exemption, or (z) to the extent any Holder is relying on Rule 144A under the Securities Act
to sell any of its Preferred Shares, prepare and provide to such Holder the information required pursuant to Rule 144A(d)(4), and
(2) it will take such further action as any Holder may reasonably request from time to time to enable such Holder to sell Preferred
Shares without registration under the Securities Act within the limitations of the exemptions provided by (i) the provisions of
the Securities Act or any interpretations thereof or related thereto by the SEC, including transactions based on the so-called
“Section 4(11⁄2)” and other similar transactions, (ii) Rule 144 or 144A under
the Securities Act, as such rules may be amended from time to time, or (iii) any similar rule or regulation hereafter adopted by
the SEC; provided that the Company shall not be required to take any action described
in this Section 4.4(a) that would cause the Company to become subject to the reporting requirements of Section 13 or 15(d) of the
Exchange Act if the Company was not subject to such requirements prior to taking such action. Upon the request of any Holder, the
Company will deliver to such Holder a written statement as to whether it has complied with such requirements and, if not, the specifics
thereof.

 

(b)         The Company agrees
to indemnify Treasury, Treasury’s officials, officers, employees, agents, representatives and Affiliates, and each person,
if any, that controls Treasury within the meaning of the Securities Act (each, an “Indemnitee”),
against any and all losses, claims, damages, actions, liabilities, costs and expenses (including reasonable fees, expenses and
disbursements of attorneys and other professionals incurred in connection with investigating, defending, settling, compromising
or paying any such losses, claims, damages, actions, liabilities, costs and expenses), joint or several, arising out of or based
upon any untrue statement or alleged untrue statement of material fact contained in any document or report provided by the Company
pursuant to this Section 4.4 or any omission to state therein a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading.

 

(c)         If the indemnification
provided for in Section 4.4(b) is unavailable to an Indemnitee with respect to any losses, claims, damages, actions, liabilities,
costs or expenses referred to therein or is insufficient to hold the Indemnitee harmless as contemplated therein, then the Company,
in lieu of indemnifying such Indemnitee, shall contribute to the amount paid or payable by such Indemnitee as a result of such
losses, claims, damages, actions, liabilities, costs or expenses in such proportion as is appropriate to reflect the relative fault
of the Indemnitee, on the one hand, and the Company, on the other hand, in connection with the statements or omissions which resulted
in such losses, claims, damages, actions, liabilities, costs or expenses as well as any other relevant equitable considerations.
The relative fault of the Company, on the one hand, and of the Indemnitee, on the other hand, shall be determined by reference
to, among other factors, whether the untrue statement of a material fact or omission to state a material fact relates to information
supplied by the Company or by the Indemnitee and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission; the Company and Treasury agree that it would not be just and equitable if contribution
pursuant to this Section 4.4(c) were determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section
4.4(b). No Indemnitee guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall
be entitled to contribution from the Company if the Company was not guilty of such fraudulent misrepresentation.

 

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4.5         Depositary Shares.
  Upon request by Treasury at any time following the Closing Date, the Company shall promptly enter into a depositary arrangement,
pursuant to customary agreements reasonably satisfactory to Treasury and with a depositary reasonably acceptable to Treasury, pursuant
to which the Preferred Shares may be deposited and depositary shares, each representing a fraction of a Preferred Share, as specified
by Treasury, may be issued. From and after the execution of any such depositary arrangement, and the deposit of any Preferred Shares,
as applicable, pursuant thereto, the depositary shares issued pursuant thereto shall be deemed “Preferred Shares” and,
as applicable, “Registrable Securities” for purposes of this Agreement.

 

4.6         Expenses and
Further Assurances.   (a)   Unless otherwise provided in this Agreement, each of the parties hereto will bear and pay all costs
and expenses incurred by it or on its behalf in connection with the transactions contemplated under this Agreement, including fees
and expenses of its own financial or other consultants, investment bankers, accountants and counsel.

 

(b)         The Company shall,
at the Company’s sole cost and expense, (i) furnish to Treasury all instruments, documents and other agreements required
to be furnished by the Company pursuant to the terms of this Agreement, including, without limitation, any documents required to
be delivered pursuant to Section 4.4 above, or which are reasonably requested by Treasury in connection therewith; (ii) execute
and deliver to Treasury such documents, instruments, certificates, assignments and other writings, and do such other acts necessary
or desirable, to evidence, preserve and/or protect the Preferred Shares purchased by Treasury, as Treasury may reasonably require;
and (iii) do and execute all and such further lawful and reasonable acts, conveyances and assurances for the better and more effective
carrying out of the intents and purposes of this Agreement, as Treasury shall reasonably require from time to time.

 

ARTICLE V

MISCELLANEOUS

 

5.1         Termination.
  This Agreement shall terminate upon the earliest to occur of:

 

(a)         termination at any
time prior to the Closing:

 

(i)          by either Treasury
or the Company if the Closing shall not have occurred on or before the 30th calendar day following the date on which
Treasury issued its preliminary approval of the Company’s application to participate in SBLF (the “Closing Deadline”);
provided, however,
that in the event the Closing has not occurred by the Closing Deadline, the parties will consult in good faith to determine whether
to extend the term of this Agreement, it being understood that the parties shall be required to consult only until the fifth calendar
day after the Closing Deadline and not be under any obligation to extend the term of this Agreement thereafter; provided,
further, that the right to terminate this Agreement under
this Section 5.1(a)(i) shall not be available to any party whose breach of any representation or warranty or failure to perform
any obligation under this Agreement shall have caused or resulted in the failure of the Closing to occur on or prior to such date;
or

 

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(ii)         by either Treasury
or the Company in the event that any Governmental Entity shall have issued an order, decree or ruling or taken any other action
restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement, and such order, decree, ruling
or other action shall have become final and nonappealable; or

 

(iii)        by the mutual
written consent of Treasury and the Company; or

 

(b)         the date on which
all of the Preferred Shares have been redeemed in whole; or

 

(c)         the date on which
Treasury has transferred all of the Preferred Shares to third parties which are not Affiliates of Treasury.

 

In the event of termination
of this Agreement as provided in this Section 5.1, this Agreement shall forthwith become void and there shall be no liability on
the part of either party hereto except that nothing herein shall relieve either party from liability for any breach of this Agreement.

 

5.2         Survival.

 

(a)         This Agreement and
all representations, warranties, covenants and agreements made herein shall survive the Closing without limitation.

 

(b)         The covenants set
forth in Article III and Annex E and the agreements set forth in Article IV shall, to the extent such covenants do not explicitly
terminate at such time as Treasury no longer owns any Preferred Shares, survive the termination of this Agreement pursuant to Section
5.1(c) without limitation until the date on which all of the Preferred Shares have been redeemed in whole.

 

(c)         The rights and remedies
of Treasury with respect to the representations, warranties, covenants and obligations of the Company herein shall not be affected
by any investigation conducted with respect to, or any knowledge acquired (or capable of being acquired) at any time by Treasury
or any of its personnel or agents with respect to the accuracy or inaccuracy of, or compliance with, any such representation, warranty,
covenant or obligation.

 

5.3         Amendment.
  No amendment of any provision of this Agreement will be effective unless made in writing and signed by an officer or a duly authorized
representative of each party, except as set forth in Section 3.1(d)(v). No failure or delay by any party in exercising any right,
power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other
or further exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative of any
rights or remedies provided by law.

 

    	Annex C (General Terms and Conditions)	Page 25

    	 

    

 

5.4         Waiver of Conditions.
  The conditions to each party’s obligation to consummate the Purchase are for the sole benefit of such party and may be waived
by such party in whole or in part to the extent permitted by applicable law. No waiver will be effective unless it is in a writing
signed by a duly authorized officer of the waiving party that makes express reference to the provision or provisions subject to
such waiver.

 

5.5         Governing Law;
Submission to Jurisdiction, etc.   This Agreement and any claim, controversy or dispute arising under or related to this Agreement,
the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties shall be enforced,
governed, and construed in all respects (whether in contract or in tort) in accordance with the federal law of the United States
if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts
made and to be performed entirely within such State. Each of the parties hereto agrees (a) to submit to the exclusive jurisdiction
and venue of the United States District Court for the District of Columbia and the United States Court of Federal Claims for any
and all civil actions, suits or proceedings arising out of or relating to this Agreement or the Purchase contemplated hereby and
(b) that notice may be served upon (i) the Company at the address and in the manner set forth for notices to the Company in Section
5.7 and (ii) Treasury at the address and in the manner set forth for notices to the Company in Section 5.7, but otherwise in accordance
with federal law. To the extent permitted by applicable law, each of the parties hereto
hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to this Agreement or the Purchase
contemplated hereby.

 

5.6         No
Relationship to TARP.    The parties acknowledge and agree that (i) the SBLF program is separate and distinct
from the Troubled Asset Relief Program established by the Emergency Economic Stabilization Act of 2008; and (ii) the Company shall
not, by virtue of the investment contemplated hereby, be considered a recipient under the Troubled Asset Relief Program.

 

5.7         Notices.
  Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will
be deemed to have been duly given (a) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt,
or (b) on the second business day following the date of dispatch if delivered by a recognized next day courier service. All notices
to the Company shall be delivered as set forth on the cover page of this Agreement, or pursuant to such other instruction as may
be designated in writing by the Company to Treasury. All notices to Treasury shall be delivered as set forth below, or pursuant
to such other instructions as may be designated in writing by Treasury to the Company.

 

If to Treasury:

 

United States Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

Attention: Small Business Lending Fund,
Office of Domestic Finance

 

E-mail: SBLFComplSubmissions@treasury.gov

 

    	Annex C (General Terms and Conditions)	Page 26

    	 

    

 

5.8         Assignment.
   Neither this Agreement nor any right, remedy, obligation nor liability arising hereunder or by reason hereof shall be assignable
by any party hereto without the prior written consent of the other party, and any attempt to assign any right, remedy, obligation
or liability hereunder without such consent shall be void, except (a) an assignment, in the case of a merger, consolidation, statutory
share exchange or similar transaction that requires the approval of the Company’s stockholders (a “Business
Combination”) where such party is not the surviving entity, or a sale of substantially all of its assets, to the
entity which is the survivor of such Business Combination or the purchaser in such sale, (b) an assignment of certain rights as
provided in Sections 3.1(c) or 3.1(h) or Annex E or (c) an assignment by Treasury of this Agreement to an Affiliate of Treasury;
provided that if Treasury assigns this Agreement to an Affiliate,
Treasury shall be relieved of its obligations under this Agreement but (i) all rights, remedies and obligations of Treasury hereunder
shall continue and be enforceable by such Affiliate, (ii) the Company’s obligations and liabilities hereunder shall continue
to be outstanding and (iii) all references to Treasury herein shall be deemed to be references to such Affiliate.

 

5.9         Severability.
  If any provision of this Agreement, or the application thereof to any person or circumstance, is determined by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to persons
or circumstances other than those as to which it has been held invalid or unenforceable, will remain in full force and effect and
shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to any party. Upon such determination, the parties shall negotiate in good
faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the parties.

 

5.10       No Third Party
Beneficiaries.   Other than as expressly provided herein, nothing contained in this Agreement, expressed or implied, is intended
to confer upon any person or entity other than the Company and Treasury (and any Indemnitee) any benefit, right or remedies.

 

5.11       Specific
Performance.   The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms. It is accordingly agreed that the parties shall be entitled (without
the necessity of posting a bond) to specific performance of the terms hereof, this being in addition to any other remedies to which
they are entitled at law or equity.

 

    	Annex C (General Terms and Conditions)	Page 27

    	 

    

 

5.12       Interpretation.
  When a reference is made in this Agreement to “Articles” or “Sections” such reference shall be to an Article
or Section of the Annex of this Agreement in which such reference is contained, unless otherwise indicated. When a reference is
made in this Agreement to an “Annex”, such reference shall be to an Annex to this Agreement, unless otherwise indicated.
The terms defined in the singular have a comparable meaning when used in the plural, and vice versa. References to “herein”,
“hereof”, “hereunder” and the like refer to this Agreement as a whole and not to any particular section
or provision, unless the context requires otherwise. The table of contents and headings contained in this Agreement are for reference
purposes only and are not part of this Agreement. Whenever the words “include”, “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words “without limitation”. No rule of construction
against the draftsperson shall be applied in connection with the interpretation or enforcement of this Agreement, as this Agreement
is entered into between sophisticated parties advised by counsel. All references to “$”
or “dollars” mean the lawful
currency of the United States of America. Except as expressly stated in this Agreement, all references to any statute, rule or
regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced from time to time (and, in the
case of statutes, include any rules and regulations promulgated under the statute) and to any section of any statute, rule or regulation
include any successor to the section. References to a “business
day” shall mean any day except Saturday, Sunday and any day on which banking institutions in the State of New
York or the District of Columbia generally are authorized or required by law or other governmental actions to close.

 

    	Annex C (General Terms and Conditions)	Page 28

    	 

    

 

	ANNEX D
	DISCLOSURE SCHEDULE

 

Part 2.2           Capitalization

 

	Capital stock reserved for issuance in connection with securities or obligations giving the holder thereof the right to acquire such capital:	 	406,637 shares
	 	 	 
	Shares issued since the Capitalization Date upon exercise of options or pursuant to equity-based awards, warrants, or convertible securities:	 	19,520 shares
	 	 	 
	All other shares issued since the Capitalization Date:	 	300,331 shares
	 	 	 
	Holders of 5% or more of any class of capital stock	 	Primary Address
	 	 	 
	Carl R. Kuehner, III	 	12 Valley Road
	 	 	Wilson Point
	 	 	Norwalk, CT 06854
	 	 	 
	James A. Fieber	 	175 Drum Hill Road
	 	 	Wilton, CT  06897
	 	 	 
	Bauer Foundation	 	206 Dudley Road
	 	 	Wilton, CT 06897
	 	 	 
	Daniel S. Jones	 	450 Rosemeade Lane
	 	 	Naples, FL 34105

 

    	Annex D (Disclosure Schedule)	Page 1

    	 

    

 

If the Company is a Bank Holding Company or Savings and Loan
Holding Company, complete the following (leave blank otherwise):

 

	Name of IDI Subsidiary	 	Percentage of IDI Subsidiary’s capital stock 

owned by the Company
	 	 	 
	The Bank of New Canaan	 	100 %
	 	 	 
	The Bank of Fairfield	 	100 %

 

    	Annex D (Disclosure Schedule)	Page 2

    	 

    

 

Part 2.13           Compliance With Laws

 

List any exceptions to the representation
and warranty in the second sentence of Section 2.13 of the General Terms and Conditions. If none, please so indicate by checking
the box: x.

 

List any exceptions to the representation
and warranty in the last sentence of Section 2.13 of the General Terms and Conditions. If none, please so indicate by checking
the box: x.

 

    	Annex D (Disclosure Schedule)	Page 3

    	 

    

 

Part 2.19           Regulatory Agreements

 

List any exceptions to the representation
and warranty in Section 2.19 of the General Terms and Conditions. If none, please so indicate by checking the box: x.

 

    	Annex D (Disclosure Schedule)	Page 4

    	 

    

 

Part 2.25           Related Party Transactions

 

List any exceptions to the representation
and warranty in Section 2.25 of the General Terms and Conditions. If none, please so indicate by checking the box: x.

 

    	Annex D (Disclosure Schedule)	Page 5

    	 

    

 

	ANNEX E
	REGISTRATION RIGHTS

 

1.        Definitions.
   Terms not defined in this Annex shall have the meaning ascribed to such terms in the Agreement. As used in this Annex E,
the following terms shall have the following respective meanings:

 

(a)        “Holder”
means Treasury and any other holder of Registrable Securities to whom the registration rights conferred by this Agreement have
been transferred in compliance with Section 9 of this Annex E.

 

(b)        “Holders’
Counsel” means one counsel for the selling Holders chosen by Holders holding a majority interest in the Registrable
Securities being registered.

 

(c)        “Pending
Underwritten Offering” means, with respect to any Holder forfeiting its rights pursuant to Section 11 of this
Annex E, any underwritten offering of Registrable Securities in which such Holder has advised the Company of its intent
to register its Registrable Securities either pursuant to Section 2(b) or 2(d) of this Annex E prior to the date of such
Holder’s forfeiture.

 

(d)        “Register”,
“registered”, and “registration”
shall refer to a registration effected by preparing and (A) filing a registration statement or amendment thereto in compliance
with the Securities Act and applicable rules and regulations thereunder, and the declaration or ordering of effectiveness of such
registration statement or amendment thereto or (B) filing a prospectus and/or prospectus supplement in respect of an appropriate
effective registration statement on Form S-3.

 

(e)        “Registrable
Securities” means (A) all Preferred Shares and (B) any equity securities issued or issuable directly or
indirectly with respect to the securities referred to in the foregoing clause (A) by way of conversion, exercise or exchange thereof,
or share dividend or share split or in connection with a combination of shares, recapitalization, reclassification, merger, amalgamation,
arrangement, consolidation or other reorganization, provided
that, once issued, such securities will not be Registrable Securities when (1) they are sold pursuant to an effective
registration statement under the Securities Act, (2) they shall have ceased to be outstanding or (3) they have been sold in any
transaction in which the transferor’s rights under this Agreement are not assigned to the transferee of the securities. No
Registrable Securities may be registered under more than one registration statement at any one time.

 

(f)         “Registration
Expenses” mean all expenses incurred by the Company in effecting any registration pursuant to this Agreement (whether
or not any registration or prospectus becomes effective or final) or otherwise complying with its obligations under this Annex
E, including all registration, filing and listing fees, printing expenses, fees and disbursements of counsel for the Company,
blue sky fees and expenses, expenses incurred in connection with any “road show”, the reasonable fees and disbursements
of Holders’ Counsel, and expenses of the Company’s independent accountants in connection with any
regular or special reviews or audits incident to or required by any such registration, but shall not include Selling Expenses.

 

    	Annex E (Registration Rights)	Page 1

    	 

    

 

(g)        “Rule
144”, “Rule 144A”,
“Rule 159A”, “Rule
405” and “Rule 415”
mean, in each case, such rule promulgated under the Securities Act (or any successor provision), as the same shall be amended from
time to time.

 

(h)        “Selling
Expenses” mean all discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable
Securities and fees and disbursements of counsel for any Holder (other than the fees and disbursements of Holders’ Counsel
included in Registration Expenses).

 

(i)         “Special
Registration” means the registration of (A) equity securities and/or options or other rights in respect thereof
solely registered on Form S-4 or Form S-8 (or successor form) or (B) shares of equity securities and/or options or other rights
in respect thereof to be offered to directors, members of management, employees, consultants, customers, lenders or vendors of
the Company or Company Subsidiaries or in connection with dividend reinvestment plans.

 

2.        Registration.

 

(a)        The Company covenants
and agrees that as promptly as practicable after the date that the Company becomes subject to the reporting requirements of Section
13 or 15(d) of the Exchange Act (and in any event no later than 30 days thereafter), the Company shall prepare and file with the
SEC a Shelf Registration Statement covering all Registrable Securities (or otherwise designate an existing shelf registration on
an appropriate form under Rule 415 under the Securities Act (a “Shelf
Registration Statement”) filed with the SEC to cover the Registrable Securities), and, to the extent the Shelf
Registration Statement has not theretofore been declared effective or is not automatically effective upon such filing, the Company
shall use reasonable best efforts to cause such Shelf Registration Statement to be declared or become effective and to keep such
Shelf Registration Statement continuously effective and in compliance with the Securities Act and usable for resale of such Registrable
Securities for a period from the date of its initial effectiveness until such time as there are no Registrable Securities remaining
(including by refiling such Shelf Registration Statement (or a new Shelf Registration Statement) if the initial Shelf Registration
Statement expires). Notwithstanding the foregoing, if the Company is not eligible to file a registration statement on Form S-3,
then the Company shall not be obligated to file a Shelf Registration Statement unless and until requested to do so in writing by
Treasury.

 

(b)        Any registration
pursuant to Section 2(a) of this Annex E shall be effected by means of a Shelf Registration Statement on an appropriate
form under Rule 415 under the Securities Act (a “Shelf
Registration Statement”). If any Holder intends to distribute any Registrable Securities by means of an underwritten
offering it shall promptly so advise the Company and the Company shall take all reasonable steps to facilitate such distribution,
including the actions required pursuant to Section 2(d) of this Annex E; provided
that the Company shall not be required to facilitate an underwritten offering of Registrable Securities unless (i) the
expected gross proceeds from such offering exceed $200,000 or (ii) such underwritten offering includes all of the outstanding Registrable
Securities held by such Holder. The lead underwriters in any such distribution shall be selected by the Holders of a majority of
the Registrable Securities to be distributed.

 

    	Annex E (Registration Rights)	Page 2

    	 

    

 

(c)        The Company shall
not be required to effect a registration (including a resale of Registrable Securities from an effective Shelf Registration Statement)
or an underwritten offering pursuant to Section 2 of this Annex E: (A) with respect to securities that are not Registrable
Securities; or (B) if the Company has notified all Holders that in the good faith judgment of the Board of Directors, it would
be materially detrimental to the Company or its security holders for such registration or underwritten offering to be effected
at such time, in which event the Company shall have the right to defer such registration for a period of not more than 45 days
after receipt of the request of any Holder; provided that
such right to delay a registration or underwritten offering shall be exercised by the Company (1) only if the Company has generally
exercised (or is concurrently exercising) similar black-out rights against holders of similar securities that have registration
rights and (2) not more than three times in any 12-month period and not more than 90 days in the aggregate in any 12-month period.

 

(d)        If during any period
when an effective Shelf Registration Statement is not available, the Company proposes to register any of its equity securities,
other than a registration pursuant to Section 2(a) of this Annex E or a Special Registration, and the registration form
to be filed may be used for the registration or qualification for distribution of Registrable Securities, the Company will give
prompt written notice to all Holders of its intention to effect such a registration (but in no event less than ten days prior to
the anticipated filing date) and will include in such registration all Registrable Securities with respect to which the Company
has received written requests for inclusion therein within ten business days after the date of the Company’s notice (a “Piggyback
Registration”). Any such person that has made such a written request may withdraw its Registrable Securities from
such Piggyback Registration by giving written notice to the Company and the managing underwriter, if any, on or before the fifth
business day prior to the planned effective date of such Piggyback Registration. The Company may terminate or withdraw any registration
under this Section 2(d) of this Annex E prior to the effectiveness of such registration, whether or not any Holders have
elected to include Registrable Securities in such registration.

 

(e)        If the registration
referred to in Section 2(d) of this Annex E is proposed to be underwritten, the Company will so advise all Holders as a
part of the written notice given pursuant to Section 2(d) of this Annex E. In such event, the right of all Holders to registration
pursuant to Section 2 of this Annex E will be conditioned upon such persons’ participation in such underwriting and
the inclusion of such person’s Registrable Securities in the underwriting if such securities are of the same class of securities
as the securities to be offered in the underwritten offering, and each such person will (together with the Company and the other
persons distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the
underwriter or underwriters selected for such underwriting by the Company; provided
that Treasury (as opposed to other Holders) shall not be required to indemnify any person in connection with any registration.
If any participating person disapproves of the terms of the underwriting, such person may elect to withdraw therefrom by written
notice to the Company, the managing underwriters and Treasury (if Treasury is participating in the underwriting).

 

    	Annex E (Registration Rights)	Page 3

    	 

    

 

(f)         If either (x) the
Company grants “piggyback” registration rights to one or more third parties to include their securities in an underwritten
offering under the Shelf Registration Statement pursuant to Section 2(b) of this Annex E or (y) a Piggyback Registration
under Section 2(d) of this Annex E relates to an underwritten offering on behalf of the Company, and in either case the
managing underwriters advise the Company that in their reasonable opinion the number of securities requested to be included in
such offering exceeds the number which can be sold without adversely affecting the marketability of such offering (including an
adverse effect on the per share offering price), the Company will include in such offering only such number of securities that
in the reasonable opinion of such managing underwriters can be sold without adversely affecting the marketability of the offering
(including an adverse effect on the per share offering price), which securities will be so included in the following order of priority:
(A) first, in the case of a Piggyback Registration under Section 2(d) of this Annex E, the securities the Company proposes
to sell, (B) then the Registrable Securities of all Holders who have requested inclusion of Registrable Securities pursuant to
Section 2(b) or Section 2(d) of this Annex E, as applicable, pro
rata on the basis of the aggregate number of such securities or shares owned by each such Holder and (C) lastly, any
other securities of the Company that have been requested to be so included, subject to the terms of this Agreement; provided,
however, that if the Company has, prior to the Signing Date,
entered into an agreement with respect to its securities that is inconsistent with the order of priority contemplated hereby then
it shall apply the order of priority in such conflicting agreement to the extent that it would otherwise result in a breach under
such agreement.

 

3.        Expenses of Registration.
  All Registration Expenses incurred in connection with any registration, qualification or compliance hereunder shall be borne by
the Company. All Selling Expenses incurred in connection with any registrations hereunder shall be borne by the holders of the
securities so registered pro rata on the basis of the aggregate
offering or sale price of the securities so registered.

 

4.        Obligations of
the Company.   Whenever required to effect the registration of any Registrable Securities or facilitate the distribution of Registrable
Securities pursuant to an effective Shelf Registration Statement, the Company shall, as expeditiously as reasonably practicable:

 

(a)      Prepare and file
with the SEC a prospectus supplement or post-effective amendment with respect to a proposed offering of Registrable Securities
pursuant to an effective registration statement, subject to Section 4 of this Annex E, keep such registration statement
effective and keep such prospectus supplement current until the securities described therein are no longer Registrable Securities.

 

(b)      Prepare and file
with the SEC such amendments and supplements to the applicable registration statement and the prospectus or prospectus supplement
used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by such registration statement.

 

    	Annex E (Registration Rights)	Page 4

    	 

    

 

(c)      Furnish to the Holders
and any underwriters such number of copies of the applicable registration statement and each such amendment and supplement thereto
(including in each case all exhibits) and of a prospectus, including a preliminary prospectus, in conformity with the requirements
of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable
Securities owned or to be distributed by them.

 

(d)      Use its reasonable
best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue
Sky laws of such jurisdictions as shall be reasonably requested by the Holders or any managing underwriter(s), to keep such registration
or qualification in effect for so long as such registration statement remains in effect, and to take any other action which may
be reasonably necessary to enable such seller to consummate the disposition in such jurisdictions of the securities owned by such
Holder; provided that the Company shall not be required
in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process
in any such states or jurisdictions.

 

(e)      Notify each Holder
of Registrable Securities at any time when a prospectus relating thereto is required to be delivered under the Securities Act of
the happening of any event as a result of which the applicable prospectus, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing.

 

(f)       Give written notice
to the Holders:

 

(i)        when any registration
statement or any amendment thereto has been filed with the SEC (except for any amendment effected by the filing of a document with
the SEC pursuant to the Exchange Act) and when such registration statement or any post-effective amendment thereto has become effective;

 

(ii)       of any request
by the SEC for amendments or supplements to any registration statement or the prospectus included therein or for additional information;

 

(iii)      of the issuance
by the SEC of any stop order suspending the effectiveness of any registration statement or the initiation of any proceedings for
that purpose;

 

(iv)      of the receipt
by the Company or its legal counsel of any notification with respect to the suspension of the qualification of the applicable Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose;

 

(v)       of the happening
of any event that requires the Company to make changes in any effective registration statement or the prospectus related to the
registration statement in order to make the statements therein not misleading (which notice shall be accompanied by an instruction
to suspend the use of the prospectus until the requisite changes have been made); and

 

(vi)      if at any time
the representations and warranties of the Company contained in any underwriting agreement contemplated by Section 4(j) of this
Annex E cease to be true and correct.

 

    	Annex E (Registration Rights)	Page 5

    	 

    

 

(g)        Use its reasonable
best efforts to prevent the issuance or obtain the withdrawal of any order suspending the effectiveness of any registration statement
referred to in Section 4(f)(iii) of this Annex E at the earliest practicable time.

 

(h)        Upon the occurrence
of any event contemplated by Section 4(e) or 4(f)(v) of this Annex E, promptly prepare a post-effective amendment to such
registration statement or a supplement to the related prospectus or file any other required document so that, as thereafter delivered
to the Holders and any underwriters, the prospectus will not contain an untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
If the Company notifies the Holders in accordance with Section 4(f)(v) to suspend the use of the prospectus until the requisite
changes to the prospectus have been made, then the Holders and any underwriters shall suspend use of such prospectus and use their
reasonable best efforts to return to the Company all copies of such prospectus (at the Company’s expense) other than permanent
file copies then in such Holders’ or underwriters’ possession. The total number of days that any such suspension may
be in effect in any 12-month period shall not exceed 90 days.

 

(i)         Use reasonable best
efforts to procure the cooperation of the Company’s transfer agent in settling any offering or sale of Registrable Securities,
including with respect to the transfer of physical stock certificates into book-entry form in accordance with any procedures reasonably
requested by the Holders or any managing underwriter(s).

 

(j)         If an underwritten
offering is requested pursuant to Section 2(b) of this Annex E, enter into an underwriting agreement in customary form,
scope and substance and take all such other actions reasonably requested by the Holders of a majority of the Registrable Securities
being sold in connection therewith or by the managing underwriter(s), if any, to expedite or facilitate the underwritten disposition
of such Registrable Securities, and in connection therewith in any underwritten offering (including making members of management
and executives of the Company available to participate in “road shows”, similar sales events and other marketing activities),
(A) make such representations and warranties to the Holders that are selling stockholders and the managing underwriter(s), if any,
with respect to the business of the Company and its subsidiaries, and the Shelf Registration Statement, prospectus and documents,
if any, incorporated or deemed to be incorporated by reference therein, in each case, in customary form, substance and scope, and,
if true, confirm the same if and when requested, (B) use its reasonable best efforts to furnish the underwriters with opinions
of counsel to the Company, addressed to the managing underwriter(s), if any, covering the matters customarily covered in such opinions
requested in underwritten offerings, (C) use its reasonable best efforts to obtain “cold comfort” letters from the
independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants
of any business acquired by the Company for which financial statements and financial data are included in the Shelf Registration
Statement) who have certified the financial statements included in such Shelf Registration Statement, addressed to each of the
managing underwriter(s), if any, such letters to be in customary form and covering matters of the type customarily covered in “cold
comfort” letters, (D) if an underwriting agreement is entered into, the same shall contain indemnification provisions and
procedures customary in underwritten offerings (provided that
Treasury shall not be obligated to provide any indemnity), and (E) deliver such documents and certificates as may be reasonably
requested by the Holders of a majority of the Registrable Securities being sold in connection therewith, their counsel and the
managing underwriter(s), if any, to evidence the continued validity of the representations and warranties made pursuant to clause
(A) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered
into by the Company.

 

    	Annex E (Registration Rights)	Page 6

    	 

    

 

(k)        Make available for
inspection by a representative of Holders that are selling stockholders, the managing underwriter(s), if any, and any attorneys
or accountants retained by such Holders or managing underwriter(s), at the offices where normally kept, during reasonable business
hours, financial and other records, pertinent corporate documents and properties of the Company, and cause the officers, directors
and employees of the Company to supply all information in each case reasonably requested (and of the type customarily provided
in connection with due diligence conducted in connection with a registered public offering of securities) by any such representative,
managing underwriter(s), attorney or accountant in connection with such Shelf Registration Statement.

 

(l)         Use reasonable best
efforts to cause all such Registrable Securities to be listed on each national securities exchange on which similar securities
issued by the Company are then listed or, if no similar securities issued by the Company are then listed on any national securities
exchange, use its reasonable best efforts to cause all such Registrable Securities to be listed on such securities exchange as
Treasury may designate.

 

(m)       If requested by Holders
of a majority of the Registrable Securities being registered and/or sold in connection therewith, or the managing underwriter(s),
if any, promptly include in a prospectus supplement or amendment such information as the Holders of a majority of the Registrable
Securities being registered and/or sold in connection therewith or managing underwriter(s), if any, may reasonably request in order
to permit the intended method of distribution of such securities and make all required filings of such prospectus supplement or
such amendment as soon as practicable after the Company has received such request.

 

(n)        Timely provide to
its security holders earning statements satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

 

    	Annex E (Registration Rights)	Page 7

    	 

    

 

5.        Suspension of
Sales.    Upon receipt of written notice from the Company that a registration statement, prospectus or prospectus supplement contains
or may contain an untrue statement of a material fact or omits or may omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading or that circumstances exist that make inadvisable use of such registration
statement, prospectus or prospectus supplement, each Holder of Registrable Securities shall forthwith discontinue disposition of
Registrable Securities until such Holder has received copies of a supplemented or amended prospectus or prospectus supplement,
or until such Holder is advised in writing by the Company that the use of the prospectus and, if applicable, prospectus supplement
may be resumed, and, if so directed by the Company, such Holder shall deliver to the Company (at the Company’s expense) all
copies, other than permanent file copies then in such Holder’s possession, of the prospectus and, if applicable, prospectus
supplement covering such Registrable Securities current at the time of receipt of such notice. The total number of days that any
such suspension may be in effect in any 12-month period shall not exceed 90 days.

 

6.        Termination of
Registration Rights.    A Holder’s registration rights as to any securities held by such Holder (and its Affiliates, partners,
members and former members) shall not be available unless such securities are Registrable Securities.

 

7.        Furnishing Information.

 

(a)        No Holder shall use
any free writing prospectus (as defined in Rule 405) in connection with the sale of Registrable Securities without the prior written
consent of the Company.

 

(b)        It shall be a condition
precedent to the obligations of the Company to take any action pursuant to Section 4 of this Annex E that the selling Holders
and the underwriters, if any, shall furnish to the Company such information regarding themselves, the Registrable Securities held
by them and the intended method of disposition of such securities as shall be required to effect the registered offering of their
Registrable Securities.

 

8.        Indemnification.

 

(a)        The Company agrees
to indemnify each Holder and, if a Holder is a person other than an individual, such Holder’s officers, directors, employees,
agents, representatives and Affiliates, and in the case of Treasury, Treasury’s officials, and each person, if any, that
controls a Holder within the meaning of the Securities Act (each, an “Indemnitee”),
against any and all losses, claims, damages, actions, liabilities, costs and expenses (including reasonable fees, expenses and
disbursements of attorneys and other professionals incurred in connection with investigating, defending, settling, compromising
or paying any such losses, claims, damages, actions, liabilities, costs and expenses), joint or several, arising out of or based
upon any untrue statement or alleged untrue statement of material fact contained in any registration statement, including any preliminary
prospectus or final prospectus contained therein or any amendments or supplements thereto or any documents incorporated therein
by reference or contained in any free writing prospectus (as such term is defined in Rule 405) prepared by the Company or authorized
by it in writing for use by such Holder (or any amendment or supplement thereto); or any omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading; provided, that the Company shall not
be liable to such Indemnitee in any such case to the extent that any such loss, claim, damage, liability (or action or proceeding
in respect thereof) or expense arises out of or is based upon (A) an untrue statement or omission made in such registration statement,
including any such preliminary prospectus or final prospectus contained therein or any such amendments or supplements thereto or
contained in any free writing prospectus (as such term is defined in Rule 405) prepared by the Company or authorized by it in writing
for use by such Holder (or any amendment or supplement thereto), in reliance upon and in conformity with information regarding
such Indemnitee or its plan of distribution or ownership interests which was furnished in writing to the Company by such Indemnitee
for use in connection with such registration statement, including any such preliminary prospectus or final prospectus contained
therein or any such amendments or supplements thereto, or (B) offers or sales effected by or on behalf of such Indemnitee “by
means of” (as defined in Rule 159A) a “free writing prospectus” (as defined in Rule 405) that was not authorized
in writing by the Company.

 

    	Annex E (Registration Rights)	Page 8

    	 

    

 

(b)        If the indemnification
provided for in Section 8(a) of this Annex E is unavailable to an Indemnitee with respect to any losses, claims, damages,
actions, liabilities, costs or expenses referred to therein or is insufficient to hold the Indemnitee harmless as contemplated
therein, then the Company, in lieu of indemnifying such Indemnitee, shall contribute to the amount paid or payable by such Indemnitee
as a result of such losses, claims, damages, actions, liabilities, costs or expenses in such proportion as is appropriate to reflect
the relative fault of the Indemnitee, on the one hand, and the Company, on the other hand, in connection with the statements or
omissions which resulted in such losses, claims, damages, actions, liabilities, costs or expenses as well as any other relevant
equitable considerations. The relative fault of the Company, on the one hand, and of the Indemnitee, on the other hand, shall be
determined by reference to, among other factors, whether the untrue statement of a material fact or omission to state a material
fact relates to information supplied by the Company or by the Indemnitee and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission; the Company and each Holder agree that it would
not be just and equitable if contribution pursuant to this Section 8(b) of this Annex E were determined by pro
rata allocation or by any other method of allocation that does not take account of the equitable considerations referred
to in Section 8(a) of this Annex E. No Indemnitee guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from the Company if the Company was not guilty of such fraudulent
misrepresentation.

 

9.        Assignment of
Registration Rights.    The rights of Treasury to registration of Registrable Securities pursuant to Section 2 of this Annex
E may be assigned by Treasury to a transferee or assignee of Registrable Securities; provided,
however, the transferor shall, within ten days after such
transfer, furnish to the Company written notice of the name and address of such transferee or assignee and the number and type
of Registrable Securities that are being assigned.

 

    	Annex E (Registration Rights)	Page 9

    	 

    

 

10.      Clear Market.
   With respect to any underwritten offering of Registrable Securities by Holders pursuant to this Annex E, the Company agrees
not to effect (other than pursuant to such registration or pursuant to a Special Registration) any public sale or distribution,
or to file any Shelf Registration Statement (other than such registration or a Special Registration) covering any preferred stock
of the Company or any securities convertible into or exchangeable or exercisable for preferred stock of the Company, during the
period not to exceed ten days prior and 60 days following the effective date of such offering or such longer period up to 90 days
as may be requested by the managing underwriter for such underwritten offering. The Company also agrees to cause such of its directors
and senior executive officers to execute and deliver customary lock-up agreements in such form and for such time period up to 90
days as may be requested by the managing underwriter.

 

11.      Forfeiture of
Rights.   At any time, any holder of Registrable Securities (including any Holder) may elect to forfeit its rights set forth
in this Annex E from that date forward; provided,
that a Holder forfeiting such rights shall nonetheless be entitled to participate under Section 2(d) – (f) of this Annex
E in any Pending Underwritten Offering to the same extent that such Holder would have been entitled to if the Holder had not
withdrawn; and provided, further,
that no such forfeiture shall terminate a Holder’s rights or obligations under Section 7 of this Annex E with respect
to any prior registration or Pending Underwritten Offering.

 

12.      Specific Performance.
  The parties hereto acknowledge that there would be no adequate remedy at law if the Company fails to perform any of its obligations
under this Annex E and that Holders from time to time may be irreparably harmed by any such failure, and accordingly agree
that such Holders, in addition to any other remedy to which they may be entitled at law or in equity, to the fullest extent permitted
and enforceable under applicable law shall be entitled to compel specific performance of the obligations of the Company under this
Annex E in accordance with the terms and conditions of this Annex E.

 

13.      No Inconsistent
Agreements.   The Company shall not, on or after the Signing Date, enter into any agreement with respect to its securities that
may impair the rights granted to Holders under this Annex E or that otherwise conflicts with the provisions hereof in any
manner that may impair the rights granted to Holders under this Annex E. In the event the Company has, prior to the Signing
Date, entered into any agreement with respect to its securities that is inconsistent with the rights granted to Holders under this
Annex E (including agreements that are inconsistent with the order of priority contemplated by Section 2(f) of Annex
E) or that may otherwise conflict with the provisions hereof, the Company shall use its reasonable best efforts to amend such
agreements to ensure they are consistent with the provisions of this Annex E.

 

14.      Certain Offerings
by Treasury.   An “underwritten” offering or other disposition shall include any distribution of such securities
on behalf of Treasury by one or more broker-dealers, an “underwriting agreement” shall include any purchase agreement
entered into by such broker-dealers, and any “registration statement” or “prospectus” shall include any
offering document approved by the Company and used in connection with such distribution.

 

    	Annex E (Registration Rights)	Page 10

    	 

    

 

	ANNEX F
	FORM OF CERTIFICATE OF DESIGNATION

 

[SEE ATTACHED]

 

    	Annex F (Form of Certificate of Designations)	Page 1

    	 

    

 

	ANNEX G
	FORM OF OFFICER’S CERTIFICATE

 

OFFICER’S CERTIFICATE

 

OF

 

BNC FINANCIAL GROUP, INC.

 

In connection with that certain
Securities Purchase Agreement, dated August 4, 2011 (the “Agreement”)
by and between BNC Financial Group, Inc. (the “Company”)
and the Secretary of the Treasury, the undersigned does hereby certify as follows:

 

1.           I am a duly elected Chief
Financial Officer of the Company.

 

2.           Attached
as Exhibit A hereto is a true, complete and correct copy of the certificate of incorporation, articles of association, or
similar organizational document of the Company and any amendments thereto as presently on file with the Secretary of the State
of Connecticut.

 

3.           Attached as Exhibit
B hereto is a true, complete and correct copy of the by-laws of the Company as presently in effect.

 

4.           Attached as Exhibit
C hereto is a true, complete and correct copy of resolutions adopted at a duly convened meeting at which a quorum was present
and acting of the Board of Directors of the Company (the “Board”). Such resolutions are now in full force and
effect and have not been modified, amended or revoked and are the only resolutions of the Board relating to the Agreement.

 

5.           Shareholder consent
is not required in connection with the execution, delivery and performance of the Agreement by the Company.

 

6.           Attached as Exhibit
E is a true, complete and correct copy of the Certificate of Designation, which has been filed with, and accepted by, the Secretary
of State of the State of Connecticut.

 

7.           The representations
and warranties of the Company set forth in Article II of Annex C of the Agreement are true and correct in all respects as though
as of the date hereof (other than representations and warranties that by their terms speak as of another date, which representations
and warranties shall be true and correct in all respects as of such other date) and the Company has performed in all material respects
all obligations required to be performed by it under the Agreement.

 

The foregoing certifications
are made and delivered as of August 4, 2011 pursuant to Section 1.3 of Annex C of the Agreement.

 

Capitalized terms used and
not otherwise defined herein shall have the meanings assigned to them in the Agreement.

 

    	Annex G (Form of Officer’s Certificate)	Page 1

    	 

    

 

[SIGNATURE PAGE FOLLOWS]

 

    	Annex G (Form of Officer’s Certificate)	Page 2

    	 

    

 

IN WITNESS WHEREOF, this
Officer’s Certificate has been duly executed and delivered as of the 4th day of August, 2011.

 

	 	BNC FINANCIAL GROUP, INC.
	 	 
	 	By:	 
	 	 	Name: 	Ernest J. Verrico, Sr.
	 	 	Title:	Chief Financial Officer

 

    	Annex G (Form of Officer’s Certificate)	Page 3

    	 

    

 

	ANNEX H
	FORM OF SUPPLEMENTAL REPORTS

 

[SEE ATTACHED
FORM OF INITIAL SUPPLEMENTAL REPORT]

 

    	Annex H (Form of Supplemental Reports)	Page 1

    	 

    

 

[SEE ATTACHED FORM OF QUARTERLY SUPPLEMENTAL
REPORT]

 

    	Annex H (Form of Supplemental Reports)	Page 2

    	 

    

 

	ANNEX I
	FORM OF ANNUAL CERTIFICATION

 

ANNUAL CERTIFICATION

 

OF

 

[COMPANY]

 

In connection with
that certain Securities Purchase Agreement, dated [____________], 2011 (the “Agreement”)
by and between [COMPANY] (the “Company”)
and the Secretary of the Treasury (“Treasury”),
the undersigned does hereby certify as follows:

 

1.           I am a duly elected/appointed
[____________] of the Company.

 

2.           For each loan originated
by the Company or any of its Affiliates that was funded in whole or in part using funds from the Purchase Price, the Company has
obtained from the business to which it made such loan a written certification that no principal of such business has been convicted
of a sex offense against a minor (as such terms are defined in section 111 of the Sex Offender Registration and Notification Act,
42 U.S.C. §16911). The Company shall retain all such certifications in accordance with standard recordkeeping practices established
by the Appropriate Federal Banking Agency.

 

3.           The Company is
in compliance with the requirements of Section 103.121 of title 31, Code of Federal Regulations.

 

The foregoing certifications
are made and delivered as of [_________] pursuant to Section 3.1(d)(iii) of Annex C of the Agreement.

 

Capitalized terms used and
not otherwise defined herein shall have the meanings assigned to them in the Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

    	Annex I (Form of Annual Certification)	Page 1

    	 

    

 

IN WITNESS WHEREOF, this
Certificate has been duly executed and delivered as of the [__] day of [__________], 20[__].

 

	 	[COMPANY]
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	Annex I (Form of Annual Certification)	Page 2

    	 

    

 

	ANNEX J
	FORM OF OPINION

 

Secretary of the Treasury

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

Attention: Small Business Lending Fund, Office of Domestic Finance

 

Re:         [Institution Name]

[SBLF Identification No.]

 

Ladies and/or Gentlemen:

 

We have acted as counsel
for [insert Institution Name] (the “Company”) in connection with the sale and issuance of [insert number] shares of
[Senior] Non-Cumulative Perpetual Preferred Stock, Series [___] (the “Preferred Shares”) to the Secretary of the Treasury
(the “Treasury”) pursuant to and in accordance with the terms of that certain Small Business Lending Fund - Securities
Purchase Agreement, dated [____________, 2011] (the “Agreement”). This letter is rendered to you pursuant to Section
1.3(f) of the Agreement and Annex J attached thereto. Unless otherwise defined herein, capitalized terms used herein shall have
the meaning set forth in the Agreement.

 

(a)      The Company has been
duly formed and is validly existing as a [TYPE OF ORGANIZATION] and is in good standing under the laws of the jurisdiction
of its organization. The Company has all necessary power and authority to own, operate and lease its properties and to carry on
its business as it is being conducted.

 

(b)      The Company has been
duly qualified as a foreign entity for the transaction of business and is in good standing under the laws of [_____________],
[_____________] and [_____________].

 

(c)      The Preferred Shares
have been duly and validly authorized, and, when issued and delivered pursuant to the Agreement, the Preferred Shares will be duly
and validly issued and fully paid and non-assessable, will not be issued in violation of any preemptive rights, and will rank pari
passu with or senior to all other series or classes of Preferred Stock issued on the Closing Date with respect to the
payment of dividends and the distribution of assets in the event of any dissolution, liquidation or winding up of the Company.

 

(d)      The Company has the
corporate power and authority to execute and deliver the Agreement and to carry out its obligations thereunder (which includes
the issuance of the Preferred Shares).

 

(e)      The execution, delivery
and performance by the Company of the Agreement and the consummation of the transactions contemplated thereby have been duly authorized
by all necessary corporate action on the part of the Company and its stockholders, and no further approval or authorization is
required on the part of the Company, including, without limitation, by any rule or requirement of any national stock exchange.

 

    	Annex J (Form of Opinion)	Page 1

    	 

    

 

(f)       The Agreement is a
valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as the same may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights generally and general equitable principles, regardless of whether such enforceability is considered in a proceeding at law
or in equity.

 

(g)      The execution and
delivery by the Company of this Agreement and the performance by the Company of its obligations thereunder (i) do not require any
approval by any Governmental Entity to be obtained on the part of the Company, except those that have been obtained, (ii) do not
violate or conflict with any provision of the Charter, (iii) do not violate, conflict with, or result in a breach of any provision
of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result
in the termination of, or accelerate the performance required by, or result in a right of termination or acceleration of, or result
in the creation of, any lien, security interest, charge or encumbrance upon any of the properties or assets of the Company or any
Company Subsidiary under any of the terms, conditions or provisions of its organizational documents or under any agreement, contract,
indenture, lease, mortgage, power of attorney, evidence of indebtedness, letter of credit, license, instrument, obligation, purchase
or sales order, or other commitment, whether oral or written, to which it is a party or by which it or any of its properties is
bound or (iv) do not conflict with, breach or result in a violation of, or default under any judgment, decree or order known
to us that is applicable to the Company and, pursuant to any applicable laws, is issued by any Governmental Entity having jurisdiction
over the Company.

 

(h)      Other than the filing
of the Certificate of Designation with the [Secretary of State] of its jurisdiction of organization or other applicable Governmental
Entity, such filings and approvals as are required to be made or obtained under any state “blue sky” laws and such
consents and approvals that have been made or obtained, no notice to, filing with, exemption or review by, or authorization, consent
or approval of, any Governmental Entity is required to be made or obtained by the Company in connection with the consummation by
the Company of the Purchase.

 

(i)       The Company is not
nor, after giving effect to the issuance of the Preferred Shares pursuant to the Agreement, would be on the date hereof an “investment
company” or an entity “controlled” by an “investment company,” as such terms are defined in the Investment
Company Act of 1940, as amended.

 

    	Annex J (Form of Opinion)	Page 2

    	 

    

 

	ANNEX K
	FORM OF REPAYMENT DOCUMENT

 

UNITED STATES DEPARTMENT OF THE TREASURY

1500 PENNSYLVANIA AVENUE, NW

WASHINGTON, D.C. 20220

 

Dear Ladies and Gentlemen:

 

Reference is made to that certain Letter Agreement
incorporating the Securities Purchase Agreement – Standard Terms (the “Securities Purchase Agreement”),
dated as of the date set forth on Schedule A hereto, between the United States Department of the Treasury (the “Investor”)
and the company set forth on Schedule A hereto (the “Company”). Capitalized terms used but not defined herein
shall have the meanings assigned to them in the Securities Purchase Agreement. Pursuant to the Securities Purchase Agreement, at
the Closing, the Company issued to the Investor the number of shares of the series of its preferred stock set forth on Schedule
A hereto (the “Preferred Shares”) and a warrant (the “Warrant”) to purchase the number of
shares of the series of its preferred stock set forth on Schedule A hereto (such shares, the “Warrant Shares”),
which was exercised by the Investor at Closing.

 

In connection with the consummation of the repurchase
(the “Repurchase”) by the Company from the Investor, on the date hereof, of the number of Preferred Shares listed
on Schedule A hereto (the “Repurchased Preferred Shares”) and the number of Warrant Shares listed on Schedule
A hereto (the “Repurchased Warrant Shares”), as permitted by the Emergency Economic Stabilization Act of 2008,
as amended by the American Recovery and Reinvestment Act of 2009:

 

(a)        The Company hereby acknowledges
receipt from the Investor of the share certificate(s) set forth on Schedule A hereto representing the Preferred Shares; and

 

(b)        The Investor hereby acknowledges
receipt from the Company of a wire transfer for the account of the Investor in immediately available funds of the aggregate purchase
price set forth on Schedule A hereto, representing payment in full for the Repurchased Preferred Shares at a price per share equal
to the Liquidation Amount per share, together with any accrued and unpaid dividends to, but excluding, the date hereof;

 

(c) The Company hereby acknowledges
receipt from the Investor of the share certificate(s) set forth on Schedule A hereto representing the Warrant Shares;

 

(d)        The Investor hereby acknowledges
receipt from the Company of a wire transfer for the account of the Investor in immediately available funds of the aggregate purchase
price set forth on Schedule A hereto, representing payment in full for the Repurchased Warrant Shares at a price per share equal
to the Liquidation Amount per share, together with any accrued and unpaid dividends to, but excluding, the date hereof.

 

    	Annex K (Form of Repurchase Document)	Page 1

    	 

    

 

In addition, the Company agrees that in the
event it elects to repurchase the Warrant, it shall deliver to the Investor within 15 calendar days of the date hereof a notice
of intent to repurchase the Warrant, which notice shall be in accordance with Section 4.9(b) of the Securities Purchase Agreement
(the “Warrant Repurchase Notice”). In the event the Company does not deliver the Warrant Repurchase Notice to
the Investor within 15 calendar days of the date hereof, the Investor hereby provides notice, pursuant to Section 4.5(p) of the
Securities Purchase Agreement, of its intention to sell the Warrant, such notice to be effective as of the first day following
the end of such 15-day period.

 

In the event that the Company delivers a Warrant
Repurchase Notice and the Company and the Investor fail to agree on the Fair Market Value of the Warrant pursuant to the procedures
(including the Appraisal Procedure), and in accordance with the time periods, set forth in Section 4.9(c) of the Securities Purchase
Agreement or the Company revokes the delivery of such Warrant Repurchase Notice, then the Investor hereby provides notice of its
intention to sell the Warrant.

 

This letter agreement will be governed by and
construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in
accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State.

 

This letter agreement may be executed in any
number of separate counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts will
together constitute the same agreement. Executed signature pages to this letter agreement may be delivered by facsimile and such
facsimiles will be deemed sufficient as if actual signature pages had been delivered

 

[Remainder of this page intentionally left
blank]

 

    	Annex K (Form of Repurchase Document)	Page 2

    	 

    

 

In witness whereof, the parties
have duly executed this letter agreement as of the date first written above.

 

	 	UNITED STATES DEPARTMENT OF THE TREASURY
	 	 
	 	By:	 
	 	 	Name: 	 
	 	 	Title:	 
	 	 
	 	COMPANY: BNC FINANCIAL GROUP, INC.
	 	 
	 	By:	 
	 	 	Name:	Ernest J. Verrico, Sr.
	 	 	Title:	Chief Financial Officer

 

    	Annex K (Form of Repurchase Document)	Page 3

    	 

    

 

SCHEDULE A

 

General Information:

 

	Date of Letter Agreement incorporating the Securities Purchase Agreement:	 	August 4, 2011
	 	 	 
	Name of the Company:	 	BNC Financial Group, Inc.
	 	 	 
	Corporate or other organizational form of the Company:	 	Corporation
	 	 	 
	Jurisdiction of organization of the Company:	 	Connecticut
	Number and series of preferred
stock issued to the	 	 
	Investor at the Closing (Preferred Shares):	 	10,980.00 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series C
	 	 	 
	Number and series of preferred stock underlying the Warrant issued to the Investor at the Closing (Warrant Shares):	 	None

 

Terms of the Repurchase
of Preferred Shares:

 

	Number of Preferred Shares purchased by the Company:	 	4,797
	 	 	 
	Share certificate number (representing the Preferred Shares previously issued to the Investor at the Closing):	 	1-A
	 	 	 
	Per share Liquidation Amount of Preferred Shares:	 	$1,000
	 	 	 
	Accrued and unpaid dividends on Preferred Shares:	 	$53,300.00
	 	 	 
	Aggregate purchase price for Repurchased Preferred Shares:	 	$4,797,000.00

 

Terms of the Repurchase
of the Warrant Shares:

 

	Number of Warrant Shares purchased by the Company:	 	240.0024
	 	 	 
	Share certificate (representing the Warrant Shares previously issued to the Investor at the Closing):	 	 
	 	 	 
	Per share Liquidation Amount of Warrant Shares:	 	$1,000
	 	 	 
	Accrued and unpaid dividends on Warrant Shares;	 	$4,800.00
	 	 	 
	Aggregate purchase price for Repurchased Warrant Shares:	 	$240,002.40

 

    	Annex K (Form of Repurchase Document)	Page 4

    	 

    

 

	Investor wire information for payment of purchase price:	 	ABA Number:
	 	 	Bank:
	 	 	Account Name:
	 	 	Account Number:
	 	 	Beneficiary:

 

    	Annex K (Form of Repurchase Document)	Page 5Exhibit 10.13

 

EXECUTION COPY

 

AGREEMENT AND PLAN OF MERGER

 

by and among

BNC Financial
Group, INC., 

 

THE BANK
OF NEW CANAAN

and

 

THE WILTON BANK

 

Dated as of

 

June 14, 2013

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	ARTICLE I. THE MERGER	1
	 	 
	1.1. Effective Time of the Merger	1
	 	 
	1.2. Closing	1
	 	 
	1.3. Effects of the Merger	2
	 	 
	1.4. Directors and Officers of the Surviving Corporation	2
	 	 
	ARTICLE II. effect of the merger on wilton capital stock	2
	 	 
	2.1. Effect of the Merger on Wilton Capital Stock	2
	 	 
	2.2. Surrender and Payment	3
	 	 
	2.3. Section 33-856 of the CBCA	4
	 	 
	2.4. Dissenting Shares	4
	 	 
	ARTICLE III. REPRESENTATIONS AND WARRANTIES OF WILTON	5
	 	 
	3.1. Organization, Standing and Power	5
	 	 
	3.2. Capitalization	6
	 	 
	3.3. Subsidiaries	7
	 	 
	3.4. Authority; No Conflict; Required Filings and Consents	7
	 	 
	3.5. Financial Statements	8
	 	 
	3.6. No Undisclosed Liabilities	9
	 	 
	3.7. Absence of Certain Changes or Events	9
	 	 
	3.8. Taxes	12
	 	 
	3.9. Owned and Leased Properties	14
	 	 
	3.10. Intellectual Property	15
	 	 
	3.11. Contracts	17
	 	 
	3.12. Litigation	18
	 	 
	3.13. Environmental Matters	19
	 	 
	3.14. Employee Benefit Plans	21
	 	 
	3.15. Compliance With Laws	23
	 	 
	3.16. Permits	23
	 	 
	3.17. Labor Matters	24
	 	 
	3.18. Insurance	24
	 	 
	3.19. Affiliate Transactions	24
	 	 
	3.20. Brokers	25

 

    	 

    	 

    

 

	3.21. Books and Records	25
	 	 
	3.22. Disclosure	25
	 	 
	ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF bnc AND THE BANK	25
	 	 
	4.1. Organization, Standing and Power	25
	 	 
	4.2. Authority; No Conflict; Required Filings and Consents	26
	 	 
	4.3. Litigation	27
	 	 
	4.4. Financial Statements	28
	 	 
	4.5. No Undisclosed Liabilities	28
	 	 
	4.6. Absence of Certain Changes or Events	29
	 	 
	4.7. Taxes	29
	 	 
	4.8. Books and Records	30
	 	 
	4.9. Disclosure	30
	 	 
	4.10. Compliance With Laws	31
	 	 
	4.11. Brokers	31
	 	 
	4.12. Statements True and Correct	31
	 	 
	4.13. Certain Regulatory Matters	31
	 	 
	4.14. Financial Controls and Procedures	31
	 	 
	4.15. Financing	32
	 	 
	ARTICLE V. CONDUCT OF BUSINESS	32
	 	 
	5.1. Covenants of Wilton	32
	 	 
	5.2. Covenants of Bank and BNC	36
	 	 
	5.3. Confidentiality	36
	 	 
	5.4. Information Furnished by the Parties	36
	 	 
	5.5. Consents and Approvals	36
	 	 
	ARTICLE VI. ADDITIONAL AGREEMENTS	37
	 	 
	6.1. No Solicitation	37
	 	 
	6.2. Access to Information	40
	 	 
	6.3. Shareholders Meeting; Proxy Statement	40
	 	 
	6.4. Legal Conditions to the Merger	41
	 	 
	6.5. Public Disclosure	41
	 	 
	6.6. Indemnification of Wilton Directors and Officers	41
	 	 
	6.7. Notification of Certain Matters	42
	 	 
	6.8. Shareholder Litigation	43

 

    	 

    	 

    

  

	6.9. Board of Directors and Loan Committee of Wilton	43
	 	 
	6.10. Financial Statements	43
	 	 
	6.11. Liens	43
	 	 
	6.12. Employees of Wilton	43
	 	 
	6.13. No Survival of Representations and Warranties	44
	 	 
	ARTICLE VII. CONDITIONS TO MERGER	44
	 	 
	7.1. Conditions to Each Party’s Obligation To Effect the Merger	44
	 	 
	7.2. Additional Conditions to Obligations of BNC and the Bank	44
	 	 
	7.3. Additional Conditions to Obligations of Wilton	46
	 	 
	ARTICLE VIII. TERMINATION AND AMENDMENT	47
	 	 
	8.1. Termination	47
	 	 
	8.2. Effect of Termination	48
	 	 
	8.3. Amendment	49
	 	 
	8.4. Extension; Waiver	49
	 	 
	ARTICLE IX. MISCELLANEOUS	49
	 	 
	9.1. Notices	49
	 	 
	9.2. Entire Agreement	50
	 	 
	9.3. No Third Party Beneficiaries	50
	 	 
	9.4. Assignment	51
	 	 
	9.5. Severability	51
	 	 
	9.6. Counterparts and Signature	51
	 	 
	9.7. Interpretation	51
	 	 
	9.8. Governing Law	51
	 	 
	9.9. Remedies	52
	 	 
	9.10. Submission to Jurisdiction	52
	 	 
	9.11. WAIVER OF JURY TRIAL	52
	 	 
	9.12. Disclosure Schedules	52

 

    	 

    	 

    

 

TABLE OF EXHIBITS 

 

	 	Exhibit A	Bank Merger Agreement
	 	 	 
	 	Exhibit B	Definitions
	 	 	 
	 	Exhibit C	Consents and Approvals

 

    	 

    	 

    

 

AGREEMENT AND PLAN OF MERGER

 

THIS AGREEMENT AND PLAN OF MERGER
(this “Agreement”) is entered into as of June 14, 2013, by and among BNC Financial Group Inc., a Connecticut
corporation (“BNC”), The Bank of New Canaan, a Connecticut banking corporation and a wholly owned subsidiary
of BNC (the “Bank” and together with BNC, the “Companies”) and The Wilton Bank, a Connecticut
banking corporation (“Wilton”).

 

WHEREAS, the parties desire to
enter into a transaction whereby Wilton will merge with and into the Bank (the “Merger”) in accordance with
the terms of this Agreement, the Connecticut Business Corporation Act (the “CBCA”) and the Banking Law of Connecticut
(the “BLC”), as a result of which the Bank shall be the surviving corporation;

 

WHEREAS, the Board of Directors
of Wilton (the “Wilton Board”) and the Board of Directors of BNC and the Bank have each unanimously (a) determined
that the Merger is in the best interests of their respective entities and stockholders, (b) approved the execution, delivery and
performance of this Agreement and the consummation of the transactions contemplated hereby, including the Merger, and (c) in the
case of Wilton, has resolved to recommend approval of this Agreement by the stockholders of Wilton; and

 

WHEREAS, the parties desire
to make certain representations, warranties, covenants and agreements in connection with the Merger and the transactions contemplated
by this Agreement and also to prescribe certain conditions to the Merger.

 

NOW, THEREFORE, in consideration
of the foregoing and the respective representations, warranties, covenants and agreements set forth below, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, BNC, the Bank, and Wilton agree as follows:

 

ARTICLE
I.

THE MERGER

 

1.1.         Effective
Time of the Merger.   Subject to the provisions of this Agreement, prior
to the Closing, the Bank and Wilton shall enter into a bank merger agreement, substantially in the form attached as Exhibit
A (the “Bank Merger Agreement”) and shall, concurrently with the Closing, cause the Bank Merger Agreement to be
filed with the Secretary of the State of the State of Connecticut in accordance with the relevant provisions of the BLC and shall
make all other filings or recordings required under the CBCA and the BLC. The Merger shall become effective upon the filing of
the Bank Merger Agreement with the Secretary of the State of the State of Connecticut or at such later time as is established by
the Bank and Wilton and set forth in the Bank Merger Agreement (the “Effective Time”).

 

1.2.         Closing.
  The closing of the Merger (the “Closing”) shall take place at 10:00 a.m., Eastern Time, on a date to be specified
by the Companies and Wilton (the “Closing Date”), which shall be no later than the third Business Day after
satisfaction or waiver of the conditions set forth in Article VII (other than delivery of items to be delivered at the Closing
and other than satisfaction of those conditions that by their nature are to be satisfied at the Closing, it being understood that
the occurrence of the Closing shall remain subject to the delivery of such items and the satisfaction or waiver of such conditions
at the Closing), at the offices of Robinson & Cole LLP, 1055 Washington Boulevard, Stamford Connecticut, unless another date,
place or time is agreed to in writing by the Companies and Wilton. For purposes of this Agreement, a “Business Day”
shall be any day other than (a) a Saturday or Sunday, (b) a legal holiday recognized as such by the U.S. Government, or (c) a day
on which banking institutions located in the State of Connecticut are permitted or required by Law, executive order or governmental
decree to remain closed.

 

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1.3.         Effects
of the Merger. The Merger shall have the effects set forth in this Agreement and Section 36a-125 of the BLC. Without limiting
the generality of the foregoing, at the Effective Time, the separate existence of Wilton shall cease and Wilton shall be merged
with and into the Bank with the Bank being the surviving corporation (following the Effective Time, the Bank is sometimes referred
to herein as the “Surviving Corporation”).

 

1.4.         Directors
and Officers of the Surviving Corporation.   The directors of the Bank immediately prior to the Effective Time shall be the initial
directors of the Surviving Corporation, each to hold office in accordance with the Certificate of Incorporation and By-laws of
the Bank, and the officers of the Bank immediately prior to the Effective Time shall be the initial officers of the Surviving Corporation,
in each case until the earlier of their resignation or removal or until their respective successors are duly elected or appointed
in accordance with the Certificate of Incorporation and By-laws of the Bank and applicable Law.

 

ARTICLE
II.

EFFECT OF THE MERGER ON WILTON CAPITAL STOCK

 

2.1.         Effect
of the Merger on Wilton Capital Stock.   As of the Effective Time, by
virtue of the Merger and without any action on the part of the Bank and Wilton, nor any holder of any shares of Wilton Common Stock:

 

(a)          Cancellation
of Certain Capital Stock of Wilton.   Each share of Wilton Common Stock that is owned by Wilton (as treasury stock or otherwise)
will automatically be cancelled and retired and will cease to exist, and no consideration will be delivered in exchange therefor.

 

(b)          Conversion
of Capital Stock of Wilton.   Wilton Common Stock issued and outstanding immediately prior to the Effective Time (other than
(i) shares owned by Wilton to be cancelled and retired in accordance with Section 2.1(a), and (ii) Dissenting Shares) will be converted
into the right to receive the Merger Consideration as defined in Section 2.1(d), without interest, at the time and subject to the
contingencies, adjustments and other terms specified herein.

 

(c)          Wilton
Common Stock.   As of the Effective Time, all shares of Wilton Common Stock shall no longer be outstanding and shall automatically
be cancelled and shall cease to exist, and each holder of a certificate that immediately prior to the Effective Time represented
any such shares of Wilton Common Stock (each, a “Certificate”) shall cease to have any rights with respect thereto,
except as set forth above in Section 2.1(b).

 

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(d)          Merger
Consideration.   The Merger Consideration will be paid in the form of cash. Each share of Wilton Common Stock issued and outstanding
immediately prior to the Effective Time (other than shares to be cancelled as provided in Section 2.1(a) and other than any Dissenting
Shares (as defined herein)), totaling 372,985 shares, shall, by virtue of the Merger, be converted into the right to receive $13.50
in cash, subject to adjustment as provided below (the “Merger Consideration”). The Merger Consideration shall
be adjusted as follows: The shareholders’ equity as of the end of the month preceding the Closing shall be determined in
accordance with generally accepted accounting principles, consistently applied, and reflecting a fully-funded allowance for loan
and lease losses (“Closing Equity”). If the Closing Equity is less than $6,400,000 and greater than $6,000,000,
there shall be no adjustment to the Merger Consideration. If the Closing Equity is less than $6,000,000, the difference between
the Closing Equity and $6,000,000 shall be divided by the number of shares of Wilton Common Stock issued and outstanding immediately
prior to the Effective Time, and that quotient shall be subtracted from the Merger Consideration. If the Closing Equity is greater
than $6,400,000, the difference between the Closing Equity and $6,400,000 shall be divided by the number of shares of Wilton Common
Stock issued and outstanding immediately prior to the Effective Time, and that quotient shall be added to the Merger Consideration.

 

2.2.         Surrender
and Payment.

 

(a)          Prior
to the Effective Time, BNC or Bank shall appoint an agent, who shall be reasonably acceptable to Wilton to act as the agent for
the purpose of exchanging the Merger Consideration for the Certificates representing the shares of Wilton Common Stock (the “Exchange
Agent”). On and after the Effective Time, BNC or Bank shall deposit with the Exchange Agent, sufficient cash to pay the
Merger Consideration that is payable in respect of all of the shares of Wilton Common Stock represented by the Certificates (the
“Payment Fund”) in amounts and at the times necessary for such payments. If for any reason the Payment Fund
is inadequate to pay the amounts to which holders of shares shall be entitled under Section 2.1(d), BNC and Bank shall take all
steps necessary to deposit in trust additional cash with the Exchange Agent sufficient to make all payments required under this
Agreement, and BNC and the Surviving Corporation shall in any event be liable for the payment thereof. The Payment Fund shall not
be used for any other purpose. The Surviving Corporation shall pay all charges and expenses, including those of the Exchange Agent,
in connection with the exchange of Shares for the Merger Consideration. Promptly after the Effective Time, BNC shall send, or shall
cause the Exchange Agent to send, to each record holder of shares of Wilton Common Stock at the Effective Time, a letter of transmittal
and instructions (which shall specify that the delivery shall be effected, and risk of loss and title shall pass, only upon proper
delivery of the Certificates to the Exchange Agent) for use in such exchange.

 

(b)          Each
holder of shares of Wilton Common Stock that have been converted into the right to receive the Merger Consideration shall be entitled
to receive the Merger Consideration upon surrender to the Exchange Agent of a Certificate, together with a duly completed and validly
executed letter of transmittal and such other documents as may reasonably be requested by the Exchange Agent. Until so surrendered
or transferred, as the case may be, and subject to the terms set forth in this Section 2.2, each such Certificate shall represent
after the Effective Time for all purposes only the right to receive the Merger Consideration payable in respect thereof. No interest
shall be paid or accrued on the cash payable upon the surrender or transfer of any Certificate. Upon payment of the Merger Consideration
pursuant to the provisions of this Article II, each Certificate or Certificates so surrendered shall immediately be cancelled.

 

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(c)          All
Merger Consideration paid upon the surrender of Certificates in accordance with the terms hereof shall be deemed to have been paid
in full satisfaction of all rights pertaining to the shares of Wilton Common Stock formerly represented by such Certificate, and
from and after the Effective Time, there shall be no further registration or transfers of shares of Wilton Common Stock on the
stock transfer books of the Surviving Corporation. If, after the Effective Time, Certificates are presented to the Surviving Corporation,
they shall be cancelled and exchanged for the Merger Consideration provided for, and in accordance with the procedures set forth,
in this Article II.

 

(d)          Any
portion of the Payment Fund that remains unclaimed by the holders of Shares twelve (12) months after the Effective Time shall be
returned to BNC, upon demand, and any such holder who has not exchanged shares of Wilton Common Stock for the Merger Consideration
in accordance with this Section 2.2 prior to that time shall thereafter look only to BNC or Surviving Corporation for payment of
the Merger Consideration. Notwithstanding the foregoing, BNC shall not be liable to any holder of shares of Wilton Common Stock
for any amounts paid to a public official pursuant to applicable abandoned property, escheat or similar Laws. Any amounts remaining
unclaimed by holders of shares of Wilton Common Stock two (2) years after the Effective Time (or such earlier date, immediately
prior to such time when the amounts would otherwise escheat to or become property of any Governmental Entity) shall become, to
the extent permitted by applicable Law, the property of BNC or Surviving Corporation free and clear of any claims or interest of
any Person previously entitled thereto.

 

(e)          Any
portion of the Merger Consideration made available to the Exchange Agent in respect of any Dissenting Shares shall be returned
to BNC or Surviving Corporation, upon demand.

 

(f)          Lost
Certificates. If any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by
the person claiming such Certificate to be lost, stolen or destroyed, the Exchange Agent shall issue in exchange for such lost,
stolen or destroyed Certificate the Merger Consideration deliverable in respect thereof pursuant to this Agreement.

 

2.3.         Section
33-856 of the CBCA.   The parties hereto acknowledge and agree that Section 33-856 of the CBCA shall apply to this Agreement
and the transactions contemplated hereby.

 

2.4.         Dissenting
Shares.

 

(a)          Notwithstanding
any provision of this Agreement to the contrary and in accordance with Section 33-856 of the CBCA, the outstanding shares of Wilton
Common Stock, the holders of which have timely filed written notices of an intention to demand payment of fair value for their
shares (“Dissenting Shares”) pursuant to the CBCA and have not effectively withdrawn or lost their dissenters
rights under the CBCA, shall not be converted into a right to receive the Merger Consideration, and the holders thereof shall be
entitled only to such rights as are granted by Section 33-856 of the CBCA.

 

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(b)          If
any such holder of Wilton Common Stock shall have failed to perfect or effectively shall have withdrawn or lost such right, the
Dissenting Shares held by such holder shall be converted into a right to receive the Merger Consideration in accordance with Section
2.1 of this Agreement, upon surrender by such holder of Certificates formerly representing such holders’ shares of Wilton
Common Stock and a properly completed letter of transmittal to the Exchange Agent in accordance with Section 2.2(b) of this
Agreement.

 

(c)          Wilton
will give the Bank (i) prompt written notice of any written demands for payment of fair value for any Dissenting Shares and any
other instruments received by Wilton relating to dissenters rights, (ii) the opportunity to participate in all negotiations and
proceedings with respect to demands for payment of fair value for any Dissenting Shares under the CBCA, and (iii) the right to
approve any settlement of any such demand.

 

ARTICLE
III.

REPRESENTATIONS AND WARRANTIES OF WILTON

 

Wilton represents and warrants
to the Companies that the statements contained in this Article III are true and correct as of the date hereof and as of
the Closing Date, except as set forth herein or in the disclosure schedule delivered by Wilton to the Companies and dated as of
the date of this Agreement (the “Wilton Disclosure Schedule”). For purposes of this Agreement, “Wilton’s
Knowledge” shall mean the actual knowledge of those individuals listed on Section 3.0 of the Wilton Disclosure
Schedule (or any successor with similar authority and responsibilities) (the “Relevant Persons”).

 

3.1.         Organization,
Standing and Power.   Wilton is a corporation duly organized and validly
existing under the Laws of the State of Connecticut, has all requisite corporate power and authority to own, lease and operate
its properties and assets and to carry on its business as now being conducted and is duly qualified and licensed to do business
and, where applicable as a legal concept, is in good standing as a foreign corporation in each jurisdiction in which the character
of the properties it owns, operates or leases or the nature of its activities makes such qualification necessary, except for such
failures to be so organized, qualified, licensed or in good standing, individually or in the aggregate, that are not reasonably
likely to have a Wilton Material Adverse Effect.

 

For purposes of this Agreement,
the term “Wilton Material Adverse Effect” means any adverse change, event, effect, circumstance or development
with respect to, or, that, individually or together with any other change, event, effect, circumstance or development, on long
term basis, materially diminishes Wilton’s financial position, the ability of Wilton to perform its obligations under any
Transaction Documents, or the validity or enforceability of any of the Transaction Documents or the rights and remedies of the
Bank (except as a result of any act or failure to act by the Bank or BNC) under any of the Transaction Documents; provided,
however, that none of the following shall constitute, or shall be considered in determining whether there has occurred,
a Wilton Material Adverse Effect:

  

(a)          changes
that are the result of economic or political factors affecting the national, regional or world economy or acts of war or terrorism,
other than those that have had or are reasonably likely to have a disproportionate effect on Wilton taken as a whole;

 

    	5

    	 

    

 

(b)          changes
in Generally Accepted Accounting Principles (“GAAP”) or regulatory accounting requirements applicable to banks generally;

 

(c)          any
modifications or changes to valuation policies and practices in connection with the transactions contemplated by this Agreement,
in each case in accordance with GAAP;

 

(d)          changes
that are the result of factors generally affecting the banking industry, other than those that have had or are reasonably likely
to have a disproportionate effect on Wilton;

 

(e)          reasonable
expenses incurred in connection with this Agreement;

 

(f)          any
adverse change, effect or circumstance arising out of or resulting directly and solely from actions required to be taken by Wilton
pursuant to this Agreement or the announcement of the transactions contemplated by this Agreement; and

 

(g)          changes
in Law, rules or regulations or generally accepted accounting principles or the interpretation thereof, other than those that have
had or are reasonably likely to have a disproportionate effect on Wilton.

 

For purposes of this Agreement, “Transaction
Documents” means this Agreement, the Bank Merger Agreement, and the Exchange Agent agreement (“Exchange Agent Agreement”)
and each other certificate, document, instrument or agreement executed in connection herewith or therewith.

 

3.2.         Capitalization.

 

(a)          The
authorized capital stock of Wilton as of the date of this Agreement consists of 1,000,000 shares, par value of $5.00, of common
stock (the “Wilton Common Stock”). As of the date hereof, 372,985 shares of Wilton Common Stock were issued
and outstanding and 108,260 shares of Wilton Common Stock were held as treasury shares.

  

(b)          Except
as set forth in Section 3.2 of the Wilton Disclosure Schedule, as of the date of this Agreement (A) there are no equity
securities of any class of Wilton, or any security convertible or exchangeable into or exercisable for any equity securities (including
Wilton Common Stock), issued, reserved for issuance or outstanding and (B) there are no options, warrants, equity securities, calls,
rights, commitments or agreements of any character to which Wilton is a party or by which Wilton is bound obligating Wilton to
issue, exchange, transfer, deliver or sell, or cause to be issued, exchanged, transferred, delivered or sold, additional shares
of capital stock or other equity interests of Wilton or any security or rights convertible into or exchangeable or exercisable
for any such shares or other equity interests, or obligating Wilton to grant, extend, accelerate the vesting of, otherwise modify
or amend or enter into any such option, warrant, equity security, call, right, commitment or agreement. Wilton is not a party to
nor is bound by any agreements or understandings with respect to the voting (including voting trusts and proxies) or sale or transfer
(including agreements imposing transfer restrictions) of any shares of capital stock or other equity interests of Wilton. There
are no registration rights, and there is no rights agreement, “poison pill,” anti-takeover plan or other similar agreement
or understanding to which Wilton is a party or by which it is bound with respect to any equity security of any class of Wilton.
None of the Wilton Common Stock has been issued in violation of any rights of any person or in violation of the registration requirements
of any applicable jurisdiction’s Laws.

 

    	6

    	 

    

 

(c)          All
outstanding shares of Wilton Common Stock are, and all shares of Wilton Common Stock subject to issuance as specified in Section
3.2(b) above, upon issuance on the terms and conditions specified in the instruments pursuant to which they are issuable, will
be, duly authorized, validly issued, fully paid and nonassessable and not subject to or issued in violation of any purchase option,
call option, right of first refusal, preemptive right, subscription right or any similar right under any provision of the CBCA,
the BLC, Wilton’s Certificate of Incorporation or By-laws or any agreement to which Wilton is a party or is otherwise bound.

 

(d)          There
are no obligations, contingent or otherwise, of Wilton to repurchase, redeem or otherwise acquire any shares of Wilton Common Stock
or the capital stock of Wilton.

 

(e)          Any
Contract relating to any matters described in this Section 3.2 shall be deemed a Wilton Material Contract.

 

3.3.         Subsidiaries.

 

(a)          Except
for securities and other interests held in a fiduciary capacity and beneficially owned by third parties or taken in consideration
of debts previously contracted, Wilton does not own beneficially, directly or indirectly, any equity securities or similar interests
of any person or any interest in a partnership or joint venture of any kind.

 

(b)          
There is no corporation, partnership, trust, limited liability company or other non-corporate business enterprise in which Wilton
holds stock or other ownership interests representing (A) more than 50% of the voting power of all stock or other ownership interests
of such entity or (B) the right to receive more than 50% of the net assets of such entity available for distribution to the holder
of outstanding stock or other ownership interests upon a liquidation or dissolution of such entity. Wilton does not control directly
or indirectly or have any direct or indirect equity participation or similar interest in any corporation, partnership, limited
liability company, joint venture, trust or other business association or entity.

 

3.4.         Authority;
No Conflict; Required Filings and Consents.

 

(a)          Wilton
has all requisite corporate power and authority to enter into this Agreement and, subject to the approval of this Agreement (the
“Wilton Voting Proposal”) by Wilton’s shareholders (the “Wilton Shareholder Approval”)
and the consents and approvals set forth on Exhibit C hereto, to consummate the transactions contemplated by this Agreement. The
execution and delivery of this Agreement and the other Transaction Documents to which it is a party and the consummation of the
transactions contemplated hereby and thereby by Wilton have been duly authorized by all necessary corporate action on the part
of Wilton, subject only to the required receipt of Wilton Shareholder Approval. This Agreement and each other Transaction Document
to which it is a party has been duly executed and delivered by Wilton and constitutes the valid and binding obligation of Wilton,
enforceable against Wilton in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles
(the “Bankruptcy and Equity Exception”).

 

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(b)          The
execution and delivery of this Agreement and each of the other Transaction Documents by Wilton do not, and the consummation by
Wilton of the transactions contemplated hereby and thereby shall not, (i) conflict with, or result in any violation or breach of,
any provision of the Certificate of Incorporation or By-laws of Wilton, (ii) conflict with, or result in any violation or breach
of, or constitute (with or without notice or lapse of time, or both) a default (or give rise to a right of termination, cancellation
or acceleration of any obligation or loss of any material benefit) under, constitute a change in control under, or result in the
imposition of any mortgage, deed of trust, security interest, pledge, lien, charge or encumbrance, lease, license, encroachment,
conditional sale agreement or other title retention agreement, option, covenant, right of way, easement, restriction or covenant
(“Liens”) on the assets of Wilton under, any of the terms, conditions or provisions of any lease, license, contract
or other agreement, instrument or obligation, written or oral, to which Wilton is a party or by which any of them or any of their
properties or assets may be bound (a “Contract”), or (iii) subject to compliance with the requirements specified
in clauses (i) and (ii) of Section 3.4(c), conflict with or violate any permit, franchise, license, judgment, injunction,
order, decree, statute, law, ordinance, rule or regulation applicable to Wilton or any of its properties or assets, except in the
case of clause (ii) of this Section 3.4(b) for any such conflicts, violations, breaches, defaults, terminations, cancellations,
accelerations, losses, penalties or Liens, and for any consents or waivers not obtained, that, individually or in the aggregate,
are not reasonably likely to have a Wilton Material Adverse Effect or prevent or materially delay or impair the performance of
this Agreement or any of the Transaction Documents to which it is a party or the consummation of the transactions contemplated
hereby or thereby.

 

(c)          No
consent, approval, license, permit, order or authorization of, or registration, declaration, notice or filing with, any international,
national, federal, state, provincial or local governmental, regulatory or administrative authority, agency, commission, board,
court, tribunal, arbitral body, self-regulated entity or similar body, whether domestic or foreign and specifically including,
without limitation, the Connecticut Department of Banking and the Federal Deposit Insurance Corporation (“FDIC”
and collectively with the Connecticut Department of Banking, a “Governmental Entity”) is required by or with
respect to Wilton in connection with the execution and delivery of this Agreement by Wilton or the consummation by Wilton of the
transactions contemplated by this Agreement, except for (i) the filing of the Bank Merger Agreement with the Secretary of the State
of the State of Connecticut; (ii) the filings required to be made and the approvals or non-objection status required to be obtained
from the Connecticut Department of Banking and the FDIC and (iii) expiration of applicable waiting periods.

  

3.5.         Financial
Statements.

 

(a)          Wilton
has provided to the Companies the audited annual financial statements of Wilton for the fiscal year ended December 31, 2012 (the
“Wilton Financial Statements”) and will, prior to Closing, provide to the Companies quarterly unaudited financial
statements for the quarter ended September 30, 2013 (the “Third Quarter Statements”) with a limited review (but
not a full audit), including a balance sheet and profit and loss statement and management’s representation letter. BNC or
Bank shall be responsible for the costs associated with the performance of such limited review.

 

    	8

    	 

    

 

(b)          The
Wilton Financial Statements are, and the Third Quarter Statements will be, derived from the books and records of Wilton, and are
and will be true and complete in all material respects, prepared in accordance with GAAP in accordance with historical practices
on a consistent basis, and fairly present the financial condition, results of operations and, with respect to the audited financial
statements only, cash flows, of Wilton as of the date thereof and for the period referred to therein and are consistent with the
books and records of Wilton. No circumstances existed on the relevant balance sheet dates of the Wilton Financial Statements or
the Third Quarter Statements which render any items in the Wilton Financial Statements or the Third Quarter Statements incorrect
or incomplete in any material respect. The statements of operations included in the Wilton Financial Statements or the Third Quarter
Statements do not include any item of special or non-recurring revenue, except as specifically identified therein.

 

(c)          The
allowance for loan losses reflected in Wilton’s Financial Statements was, and the allowance for loan losses shown on the
Third Quarter Statements for periods ending after December 31, 2012 was, adequate, as of the date thereof, under GAAP. Wilton’s
allowance for loan losses is, and shall be as of the Closing Date, in compliance with its existing methodology for determining
the adequacy of its allowance for loan losses as well as the standards established by GAAP and is and shall be adequate under all
such standards. Wilton complied with all orders, written comments and directives provided to it by any Governmental Entities relating
to its allowance for loan losses since date of its Financial Statements.

 

3.6.         No
Undisclosed Liabilities.

 

(a)          Wilton
has no liability, whether asserted or unasserted, absolute, accrued or unaccrued, contingent, whether liquidated or unliquidated,
whether due or to become due, or otherwise, that would be required by GAAP to be reflected on a balance sheet of Wilton, except
(i) as disclosed in the Third Quarter Statements including footnotes thereto, (ii) for liabilities incurred in the Ordinary Course
of Business consistent with past practice after the date of the Third Quarter Statements (none of which results from, arises out
of, relates to or is in the nature of, or was caused by any breach of Contract, breach of warranty, tort, infringement, or violation
of Law), or (iii) for other liabilities that are not in excess of $10,000 individually, or $25,000 in the aggregate.

 

(b)          Other
than deferred tax liabilities and except as disclosed in Section 3.6(b) of Wilton Disclosure Schedule, since the date of
Third Quarter Statements Wilton has not incurred any liability other than in the ordinary course of business consistent with past
practice (the “Ordinary Course of Business”).

  

3.7.         Absence
of Certain Changes or Events.

 

(a)          Since
December 31, 2012, Wilton has operated its business only in the Ordinary Course of Business and has maintained its relationships
with customers, vendors, suppliers, employees, agents and others in a commercially reasonable manner, and there has not occurred
any event, development or change which, individually or in the aggregate, has had or could be reasonably expected to have a Wilton
Material Adverse Effect.

 

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(b)          Without
limiting the generality of Section 3.7(a) and except as disclosed in Section 3.7 of Wilton Disclosure Schedule, since
December 31, 2012, Wilton has not directly or indirectly:

 

(i)          (A)
declared, set aside or paid any dividends on, or made any other distributions (whether in cash, securities or other property) in
respect of, any of its capital stock; (B) split, combined, altered the terms of, or reclassified any of its capital stock or issued
or authorized the issuance of any other securities in respect of, in lieu of or in substitution for, shares of its capital stock
or any of its other securities; or (C) purchased, redeemed or otherwise acquired any shares of its capital stock or any other of
its securities or any rights, warrants or options to acquire any such shares or other securities;

 

(ii)   
      issued, delivered, sold, granted, pledged or otherwise disposed of or encumbered any
shares of its capital stock, any other voting securities or any securities convertible into or exchangeable for, or any
rights, warrants or options to acquire, any such shares, voting securities or convertible or exchangeable securities.

 

(iii)    
    altered any term of any of its outstanding securities (or ownership interest) or made any change in
its outstanding shares of capital stock or other ownership interests or its capitalization, whether by reason of a
reclassification, recapitalization, stock split or combination, exchange or readjustment of shares, stock dividend or
otherwise;

 

(iv)         amended
its Certificate of Incorporation, By-laws or other comparable charter or organizational documents or altered, through merger, liquidation,
reorganization, restructuring or in any other fashion, its structure or ownership;

 

(v)          acquired
(A) by merging or consolidating with, or by purchasing all or a substantial portion of the assets or any stock of, or by any other
manner, any business or any corporation, partnership, joint venture, limited liability company, association or other business organization
or division thereof or (B) any assets that are material, in the aggregate, to Wilton, except in the Ordinary Course of Business;

 

(vi)         mortgaged,
sold, leased, licensed, pledged, granted a security interest in or otherwise disposed of or encumbered any properties or assets
of Wilton valued in excess of $10,000 individually or $25,000 in the aggregate;

 

(vii)        (A)
incurred any indebtedness for borrowed money or guarantee any such indebtedness of another person (other than in the Ordinary Course
of Business), (B) issued, sold or amended any debt securities or warrants or other rights to acquire any debt securities, or guarantee
any debt securities of another person, (C) made any loans (other than in the Ordinary Course of Business), advances (other than
routine advances to employees of Wilton in the Ordinary Course of Business) or capital contributions to, or investment in, any
other person), or (D) other than in the Ordinary Course of Business, entered into any hedging agreement or other financial agreement
or arrangement designed to protect Wilton against fluctuations in exchange rates;

 

    	10

    	 

    

  

(viii)  
    made any capital expenditures or other expenditures with respect to property, plant or equipment in
excess of $10,000 individually, or $25,000 in the aggregate;

 

(ix)      
   made any material changes in accounting methods, principles or practices, other than as required by a
change in GAAP;

 

(x)          (A)
adopted, entered into, terminated, enhanced or amended any employment, severance or similar agreement or Wilton Employee Plan (including,
but not limited to, the grant of any additional awards under any stock option or Wilton Stock Plan or the modification of any existing
award thereunder) for the benefit or welfare of any current or former director, officer, employee or consultant or any collective
bargaining agreement (except in the Ordinary Course of Business), (B) increased the compensation or fringe benefits of, or pay
any bonus to, any director, officer, employee or consultant (except for annual increases (not in excess of 3% for any person) of
salaries), (C) amended or accelerated the payment, right to payment or vesting of any compensation or benefits, including any outstanding
options or restricted stock awards, or (D) paid any material benefit not provided for as of December 31, 2012 under any Wilton
Employee Plan; 

 

(xi)         changed
any method of Tax accounting, settled or compromised any Tax liability, amended any Tax Return, made any new Tax election, consented
to any extension or waiver of the limitation period applicable to any Tax claim, in each case except in the Ordinary Course of
Business or that would not have a Wilton Material Adverse Effect;

 

(xii)        initiated, compromised or settled any material litigation or arbitration proceeding or cancelled, waived or
comprised any material debt or claim;

 

(xiii)    
  opened any new, or permanently closed any, facility or office;

 

(xiv)       extended,
terminated or modified any Wilton Material Contract or permitted any renewal notice period or option period to lapse with respect
to any Wilton Material Contract, except for terminations of Wilton Material Contracts upon their expiration during such period
in accordance with their terms;

 

(xv)        other
than in the Ordinary Course of Business, incurred any liability, debt or obligation (whether absolute, accrued, contingent or otherwise)
to or of any Affiliate, or made any loans to any Affiliates;

 

(xvi)       discharged
or satisfied any Lien other than those required to be discharged or satisfied during such period in accordance with their original
terms;

  

(xvii)      paid
any material obligation or liability (absolute, accrued, contingent or otherwise), whether due or to become due, except for any
current liabilities, and the current portion of any long-term liabilities shown on Wilton Financial Statements or incurred since
December 31, 2012 in the Ordinary Course of Business;

 

(xviii)     entered
into any transaction with any Affiliates other than in the Ordinary Course of Business;

 

    	11

    	 

    

 

(xix)     
 entered into any other Contract involving amounts in excess of $10,000 or a term of performance in excess of one
year from the Closing Date, except those made in the Ordinary Course of Business;

 

(xx)       
 suffered any damage or destruction to, or loss of, or condemnation or eminent domain proceeding relating to, any of its
tangible properties or assets (whether or not covered by insurance) which has had or would be reasonably likely to have a
Wilton Material Adverse Effect;

 

(xxi)        made
any loan or advance to any Person, other than in the Ordinary Course of Business and in a commercially reasonable manner;

 

(xxii)      
lost the employment services of any employee whose annual salary exceeded $50,000;

 

(xxiii)     made
any agreement pursuant to which any loan, loan commitment, letter of credit or other extension of credit (collectively, “Loans”),
or other assets have been or shall be sold by Wilton which entitle the buyer of such Loans or other assets, unless there is material
breach of a representation or covenant by Wilton, to cause Wilton to repurchase such Loan or other asset or the buyer to pursue
any other form of recourse against Wilton.

 

(xxiv)     changed
the time, manner of payment of or other material practices or procedures relating to the accounts payable or other current liabilities
of Wilton;

 

(xxv)      changed
working capital practices including any material change in billing, collection or payment practices, or changed any material business
policies, including: (A) reductions in insurance coverage; or (B) reductions or increases in capital expenditures;

 

(xxvi)     cancelled,
reduced, settled, discounted, rebated or otherwise compromised debts or accounts receivable owed, or waived or released any right
or claim of value, to the assets of Wilton (other than immaterial waivers or releases in the Ordinary Course of Business consistent
with past practice);

 

(xxvii)    changed
the time, manner of payment or collection, or other practices and procedures relating to the accounts receivable or other current
assets (including prepaid expenses) of Wilton; or

 

(xxviii)  
authorized any of, or committed or agreed, in writing or otherwise, to take any of the foregoing actions.

  

3.8.         Taxes.
  Except as set forth in Section 3.8 of Wilton Disclosure Schedule,

 

(a)          Wilton
has (i) accurately prepared in all material respects and timely filed (taking into account valid extensions) all Tax Returns (as
defined below) required to be filed by it for any taxable period ending on or before the Closing Date, and all such Tax Returns
are true, correct and complete in all material respects; (ii) paid all Taxes imposed on it (other than Taxes being contested in
good faith and for which adequate reserves have been established on the most recent Wilton Financial Statements); and (iii) established
the most recent Wilton Financial Statements reserves that are adequate for the payment of any Taxes not yet due and payable. Since
the date of the most recent Wilton Financial Statements, Wilton has not incurred any material liability for Taxes other than in
the Ordinary Course of Business. All material Taxes that Wilton was required by Law to withhold or collect have been duly withheld
or collected and, to the extent required, paid to the proper Governmental Entity.

 

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(b)          There
are no Liens for Taxes upon any assets of Wilton, except for Liens for Taxes not yet due and payable or that are being contested
in good faith in appropriate proceedings and for which adequate reserves have been established on the most recent Wilton Financial
Statements.

 

(c)          No
material deficiency for Taxes has been proposed, asserted or assessed against Wilton in writing that has not been resolved with
any amounts due paid in full. No jurisdiction in which Wilton currently does not file or has not filed a Tax Return has asserted
any claim in writing that Wilton may be subject to Tax in that jurisdiction. No waiver, extension or comparable consent given by
Wilton in writing regarding the application of the statute of limitations with respect to any Taxes or Tax Return is outstanding,
nor is any request for any such waiver or consent pending.

 

(d)          There
are no federal, state, local or foreign audits, actions, suits, proceedings, investigations, claims or administrative proceedings
relating to Taxes or any Tax Return of Wilton now pending, and Wilton has not received any notice in writing of, nor is there Wilton’s
Knowledge of, any proposed audits, investigations, claims, or administrative proceedings relating to Taxes or any Tax Returns.

 

(e)          Wilton
is not and has not been a real property holding corporation within the meaning of Section 897(c)(2) of the Code during the applicable
periods specified in such Section.

 

(f)          Wilton
is not a member of an affiliated group of corporations within the meaning of Section 1504 of the Code (other than the group for
which Wilton is currently the parent) or included in any “consolidated,” “unitary,” or “combined”
Tax Return provided for under the laws of the United States, any foreign jurisdiction or any state or locality with respect to
Taxes. Wilton has no liability for Taxes of any person other than Wilton under Treas. Reg. Section 1.1502-6 or any similar provision
of state, local or foreign Law.

 

(g)          Wilton
is not a party to or bound by any tax indemnity, tax sharing or tax allocation agreement.

  

(h)          During
the last two (2) years, Wilton has not been a “distributing corporation” or a “controlled corporation”
in connection with a distribution described in Section 355 of the Code.

 

(i)          Except
in the Ordinary Course of Business, Wilton will not be required to include any material item of income or gain in, or exclude any
item of deduction or loss from, taxable income for any taxable period (or portion thereof) beginning after the Closing Date as
a result of any: (i) change in method of accounting for a taxable period ending on or prior to the Closing Date; (ii) "closing
agreement" as described in Section 7121 of the Code (or any similar provision of state, local or foreign Law) executed on
or prior to the Closing Date; (iii) installment sale or open transaction disposition made on or prior to the Closing Date; or (iv)
election under Section 108(i) of the Code (or any similar provision of state, local or foreign Law).

 

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(j)          Wilton
is not a party to any "reportable transaction" as defined in Section 6707A(c)(1) of the Code or Treasury Regulations
Section 1.6011-4(b).

 

For purposes of this Agreement,
(i) “Tax” and “Taxes” shall mean any federal, state, local or foreign income, gross receipts,
license, payroll, severance, occupation, premium, environmental, gains, sales, use, transfer, employment, capital stock, franchise,
profits, withholding, excise, real property, personal property, value added and other taxes, social security (or similar), unemployment,
disability, alternative or add-on minimum, estimated fees, stamp taxes and duties, together with any interest and penalties, additions
to tax or additional amounts imposed by any taxing authority with respect thereto, and (ii) “Tax Returns” means
all reports, returns, declarations, statements or other information required to be supplied to a taxing authority in connection
with Taxes including any schedules, supplements or amendments thereto.

 

3.9.         Owned
and Leased Properties.

 

(a)          Section
3.9(a) of Wilton Disclosure Schedule sets forth a complete and accurate list as of the date of this Agreement of all real property
owned by Wilton, except real property acquired through foreclosure of a security interest held by Wilton in such real property
(the “Owned Real Property”), which list shall include addresses, acreage (or a reasonable estimation thereof
to the extent Wilton does not have a real estate survey for such parcel of real property) and a description of the improvements
located thereon. Wilton has good and marketable fee title to all of its Owned Real Property, free and clear of all Liens (other
than Permitted Liens).

 

(i)       
   The Owned Real Property and Leased Real Property constitute all the real estate and buildings used by
Wilton in the conduct of its business. To Wilton’s Knowledge, there are no structural defects or material defects in
the mechanical or building systems in any facility located on any Owned Real Property. No portion of any Owned Real Property
has suffered any material damage by fire or other casualty which has not heretofore been repaired and restored to
substantially its original condition.

  

(ii)        
 Except as set forth in Section 3.9(a) of Wilton Disclosure Schedule there are no existing property tax abatement
programs or other governmental assistance programs with respect to the Owned Real Property. Section 3.9(a) of Wilton
Disclosure Schedule sets forth all documents to which Wilton are a party relating to any such known programs.

 

(iii)       
 Except as set forth in Section 3.9(a) of Wilton Disclosure Schedule, there is no pending, and Wilton has not
received written notice of any threatened condemnation, expropriation, eminent domain, environmental, land use, or special
assessment regulatory proceeding or investigation affecting the Owned Real Property. Wilton has not received written notice
of any fire, health, safety, building, hazardous substances, pollution control, zoning, or other regulatory proceedings,
either instituted or planned to be instituted, which would have a Wilton Material Adverse Effect.

 

    	14

    	 

    

 

(iv)         Except
as set forth in Section 3.9(a) of Wilton Disclosure Schedule, no person leases, occupies or is in possession of, or has
any rights to lease, occupy or possess any of the Owned Real Property other than Wilton. Except as set forth in Section 3.9
of Wilton Disclosure Schedule, there are no current options or other Contracts pursuant to which Wilton has granted to any person
the option to purchase, lease or sublease the Owned Real Property or any interests therein.

 

(v)          Wilton
has made available to the Bank complete and correct copies of any and all title policies and underlying title documents, surveys,
engineering and geologic reports, maintenance reports and environmental reports in its possession with respect to the Owned Real
Property.

 

(vi)         Except
as set forth in Section 3.9(a) of Wilton Disclosure Schedule, to Wilton’s Knowledge, none of the structures or improvements
necessary to the conduct of the business of Wilton and erected on the Owned Real Property encroaches on the property of any other
person, and to Wilton’s Knowledge none of the structures erected on any real property owned by any other person and adjoining
the Owned Real Property encroaches on the Owned Real Property.

 

(b)          Wilton has no real property
leased, subleased, licensed or otherwise occupied by Wilton, except for one lease of a storage facility which is terminable at
will and has a gross rental obligation of not more than $6,000 per year.

 

(c)          Wilton
has good title to, or a valid leasehold interest in, all of its tangible personal property assets, and except for Taxes not yet
due and payable that are payable without penalty or that are being contested in good faith and for which adequate reserves have
been recorded. All such tangible personal property assets are free and clear of all Liens, except for (i) Liens for Taxes not yet
due and payable or that are being contested in good faith in appropriate proceedings and for which appropriate reserves have been
established on the most recent Wilton Financial Statements, (ii) Liens for assessments and other governmental charges or Liens
of carriers and warehousemen incurred in the Ordinary Course of Business, in each case for sums not yet due and payable or due
but not delinquent or being contested in good faith by appropriate proceedings and as to which appropriate reserves have been established
on the most recent Wilton Financial Statements, (iv) Liens set forth on Section 3.9(b) of the Wilton Disclosure Schedule,
(v) Liens arising solely due to Wilton’s leasehold interest therein (collectively, “Permitted Liens”).

  

3.10.       Intellectual
Property.

 

(a)          For
purposes of this Agreement, the term “Intellectual Property” means all U.S. and foreign (i) inventions (whether
patentable or unpatentable and whether or not reduced to practice), improvements, and U.S. and foreign patents, patent applications
and patent disclosures, together with all reissuances, continuations, continuations-in-part, divisionals, continuations-in-part,
revisions, extensions and reexaminations, (ii) U.S. and foreign trademarks, service marks, trade dress, logos, trade names and
corporate names, and including all associated goodwill, and all applications, registrations and renewals, (iii) copyrightable works,
copyrights and all applications, registrations and renewals (iv) trade secrets and confidential business information (including
ideas, research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, technical
data, patterns, industrial designs, drawings, specifications, customer and supplier lists, pricing and cost information, and business
and marketing plans and proposals), (v) domain names and computer software (including data and related documentation) and (vi)
proprietary or confidential information and all documentation materials related thereto.

 

    	15

    	 

    

 

(b)          Except
as set forth in Section 3.10 of Wilton Disclosure Schedule, Wilton owns all right, title and interest in and to the Intellectual
Property identified in Section 3.10 free and clear of any and all Liens. Wilton otherwise possesses licenses to use Wilton
Intellectual Property (as defined below). Wilton hereby represents that it shall, after the execution and delivery of this Agreement
by Wilton and consummation of the transactions contemplated hereunder, continue to own, license, sublicense or otherwise possess,
legally enforceable rights to use all Intellectual Property necessary to conduct the business of Wilton as currently conducted,
(the “Wilton Intellectual Property”).

 

(c)          Except
as set forth in Section 3.10 of Wilton Disclosure Schedule, the execution and delivery of this Agreement or the other Transaction
Documents by Wilton and the consummation of the transactions contemplated hereby and thereby will not result in the breach of,
or create on behalf of any third party, the right to terminate or modify, or otherwise result in any termination or modification
of, any license, sublicense or other agreement relating to any Intellectual Property owned or licensed by Wilton. Section 3.10
of Wilton Disclosure Schedule sets forth a true and complete list of all of the patents, registered and unregistered trademarks
or service marks, copyrights, domain names and pending patent applications for any of the foregoing owned by Wilton (the “Registered
Wilton IP”). Wilton holds good and marketable title to all of the Registered Wilton IP, free and clear of any Lien, claim,
interest or encumbrance of any third party (except for any rights licensed by Wilton under any license agreement listed on Section
3.10 of Wilton Disclosure Schedule). No action, suit, proceeding or investigation involving Wilton is pending or, to Wilton’s
Knowledge, threatened that in any way challenges Wilton’s title, interests or rights to any Wilton Intellectual Property.

  

(d)          To
Wilton’s Knowledge, all of the Registered Wilton IP is valid and subsisting and have not expired or been cancelled or abandoned.
Except as set forth in Section 3.10 of Wilton Disclosure Schedule, to Wilton’s Knowledge, no third party is infringing,
violating or misappropriating any of Wilton Intellectual Property. Except as set forth in Section 3.10 of Wilton Disclosure
Schedule, no action, suit, proceeding or investigation involving Wilton is pending or, to Wilton’s Knowledge, threatened
to invalidate, cancel or render unenforceable any patents or registrations for trademarks, service marks or copyrights. To Wilton’s
Knowledge, all Wilton Intellectual Property are properly granted or registered, as the case may be, under applicable Law, except
where the failure to be so registered, individually or in the aggregate, is not material to the business of Wilton, taken as a
whole.

 

(e)          To
Wilton’s Knowledge, the conduct of the business of Wilton as currently conducted does not infringe, violate or constitute
a misappropriation, has not infringed, violated or constituted a misappropriation, of any Intellectual Property of any third party.
Except as set forth in Section 3.10 of Wilton Disclosure Schedule, Wilton has not received any written claim or notice alleging
any such infringement, violation or misappropriation of Intellectual Property of any other person. Except as set forth in Section
3.10 of Wilton Disclosure Schedule, Wilton has not received written notice of, and is not otherwise aware of, any infringement
by or misappropriation by others of Wilton Intellectual Property.

 

    	16

    	 

    

 

(f)          Wilton
has taken all reasonable steps in accordance with standard industry practices to protect its Intellectual Property. Wilton has
taken all reasonable steps in accordance with standard industry practices to protect confidential and proprietary information from
unauthorized use or disclosure and to avoid any unauthorized use or disclosure of any confidential or proprietary information of
any third party.

 

3.11.       Contracts.

 

(a)          For
purposes of this Agreement, “Wilton Material Contract” shall mean:

 

(i)        
 each employment or other similar Contract providing for compensation, severance or a fixed term of employment in
respect of services performed by any employees of Wilton;

 

(ii)         
each management, consulting, subcontractor, retainer or other similar type of agreement under which services are provided
by any person to Wilton in excess of $10,000 per annum or $25,000 in the aggregate;

 

(iii)        
each other agreement or commitment for services and supplies provided by any other person to Wilton with a term of more than
one (1) year or requiring payments of more than $10,000 per annum or $25,000 in the aggregate;

 

(iv)         any
Contract limiting the right of Wilton to engage in any line of business or compete with any person in any line of business or to
compete with any party, otherwise prohibiting or limiting the right of Wilton to solicit customers, employees or other service
providers;

 

(v)          any
Contract relating to the disposition or acquisition by Wilton after the date of this Agreement of a material amount of assets or
pursuant to which Wilton has any material ownership interest in any other person or other business enterprise or to which will
otherwise constitute a capital expenditure in excess of $10,000;

  

(vi)         any
mortgages, notes, bonds, indentures, guarantees, loans or credit agreements, security agreements, deeds of trust, purchase money
agreements, conditional sales contracts, capital leases or other contracts or instruments evidencing indebtedness or extension
of credit, and each guaranty of any indebtedness or other obligation, or the net worth of any person, other than loans and instruments
in the Ordinary Course of Business;

 

(vii)        any
Contract under which Wilton has licensed, sublicensed or otherwise granted or transferred any Intellectual Property to a third
party, involving or having the potential to enable either party to generate sales in an amount in excess of $10,000;

 

(viii)      any
Contract by Wilton with any Governmental Entity;

 

    	17

    	 

    

 

(ix)         any
Contract that requires a consent to or otherwise contains a provision relating to a “change of control,” or that would
prohibit or delay the consummation of the transactions contemplated by this Agreement;

 

(x)          any
Contract under which Wilton has received a license to or otherwise received any rights under any Intellectual Property that is
material to the business of Wilton taken as a whole;

 

(xi)         any
Contract with an Affiliate, or, to Wilton’s Knowledge, with any entity which an officer or director of Wilton holds an interest;

 

(xii)        any
Contract affecting or governing ownership, development or use of any Intellectual Property of Wilton;

 

(xiii)    
  any partnership, joint venture or similar Contract; and

 

(xiv)       any
other Contract or instrument (other than purchase orders and similar agreements entered into in the Ordinary Course of Business)
having an indefinite term or a fixed term of more than one (1) year (other than those that are terminable by Wilton, on no more
than thirty (30) Business Days’ notice without liability or financial obligation to Wilton that requires an expenditure by
Wilton of more than $10,000 on an annual basis or in excess of $25,000 over the current Contract term or the loss of which could
reasonably be expected to have, directly or indirectly, individually or in the aggregate, a Wilton Material Adverse Effect.

 

(b)          Section
3.11 of Wilton Disclosure Schedule sets forth a list of all Wilton Material Contracts to which Wilton is a party as of the
date hereof. Except as specifically set forth on Section 3.11 of Wilton Disclosure Schedule, Wilton is not (with or without
the lapse of time or the giving of notice, or both) in breach of or in default under any of Wilton Material Contracts.

 

(c)          All
Wilton Material Contracts are valid and in full force and effect except to the extent they have previously expired in accordance
with their terms.

  

3.12.       Litigation.
  Except as set forth in Section 3.12 of Wilton Disclosure Schedule, there is no action, suit, proceeding, claim, arbitration
or investigation (each, an “Action”) pending or threatened in writing (nor to Wilton’s Knowledge, are
there any facts which could lead to such an Action), in each case against, affecting or in any way related to Wilton or its business
at law or in equity, before any Governmental Entity. There are no judgments, orders, rulings, charges, injunctions, notices of
violations, decrees or other mandates against Wilton. There is no Action pending or threatened in writing (nor to Wilton’s
Knowledge, are there any facts which could lead to such an Action), in each case, as of the date of this Agreement against Wilton
or, to Wilton’s Knowledge, any of its directors or executive officers, alleging a violation of federal or state securities
laws that relates to Wilton. Nothing set forth in Section 3.12 of Wilton Disclosure Schedule, either individually or when
aggregated with other items set forth on such Schedule, could reasonably be expected to have a Wilton Material Adverse Effect.

 

    	18

    	 

    

 

3.13.       Environmental
Matters.

 

(a)                      Except
as set forth in Section 3.13 of Wilton Disclosure Schedule:

 

(i)       
  Wilton has not received any written notice, written report or other written information regarding any
actual or alleged, or, to Wilton’s Knowledge, threatened, violation or liability under Environmental Laws, including
any investigatory, remedial or corrective obligations, arising under any Environmental Laws at any property or site currently
or formerly owned, operated, leased or occupied by Wilton;

 

(ii)        
 Wilton has obtained, maintain and are in compliance with, all permits, licenses and other authorizations necessary
under Environmental Laws (collectively “Environmental Permits”) for the occupation of its facilities and
the operation of its businesses and Wilton has not received written notice regarding any proposed, or to Wilton’s
Knowledge, threatened, action to revoke, cancel, terminate, or limit or modify the terms of any Environmental Permits;

 

(iii)       
 Wilton is not subject to any orders, decrees or injunctions issued by any Governmental Entity relating to Environmental
Laws, Hazardous Substances or Contamination;

 

(iv)         Wilton
is, and during the term of applicable statutes of limitation at all prior times has been, in material compliance with all applicable
Environmental Laws and all Environmental Permits;

 

(v)          Wilton
either expressly, by operation of Law, or otherwise, has not assumed or undertaken any liability of any other person under any
Environmental Law, including without limitation, any obligation for investigation or corrective or remedial action under any Environmental
Law;

 

(vi)         Wilton
has not (i) treated, stored, disposed of, arranged for or permitted the disposal of, transported, handled, or Released any Hazardous
Substances so as to give rise to any Environmental Costs and Liabilities, (ii) owned, operated, leased, occupied or otherwise used
any real property or facility where a Release of Hazardous Substances has occurred that may give rise to Environmental Costs and
Liabilities; and

  

(vii)        there
are no: (A) underground storage tanks; (B) asbestos-containing material; (C) materials or equipment containing polychlorinated
biphenyls or (D) landfills, surface impoundments, or other disposal areas located on any property, site or facility currently or
previously owned, operated or leased by Wilton.

 

(b)          Wilton
has provided to the Bank, prior to the execution of this Agreement, complete and correct copies of all environmental investigations,
studies, audits, tests, reviews or other analyses that are in the possession or control of Wilton, in relation to any property,
site or facility now or previously owned, operated, leased or occupied by Wilton excluding the drafts of such documents and any
documents subject to the attorney-client privilege or attorney work product doctrine.

 

    	19

    	 

    

 

(c)          For
purposes of this Agreement, the term “Environmental Law” means any law, statute, regulation, order, decree or
permit or other legally binding requirement of any local, state, federal or foreign governmental jurisdiction relating to: (i)
the protection, investigation or restoration of the indoor or outdoor environment, human health or safety, or natural resources,
(ii) the handling, use, storage, treatment, transport, remediation, investigation, disposal, release or threatened release of any
Hazardous Substances (iii) noise, odor or wetlands protection.

 

(d)          For
purposes of this Agreement, the term “Hazardous Substance” means: (i) any substance that is regulated or that
falls within the definition of a “hazardous substance,” “solid waste,” “hazardous waste,” “toxic
waste” or “hazardous material” pursuant to any Environmental Law; (ii) any petroleum, petroleum product or by-product,
asbestos or asbestos-containing material, polychlorinated biphenyls, radioactive materials or radon; or (iii) any substance the
release of which could reasonably be expected to result in liability under any Environmental Law.

 

(e)          For
purposes of this Agreement, the term “Contamination” means the presence of Hazardous Substances in, on or under
the soil, ambient air, groundwater, surface water or other environmental media or within occupied structures requiring investigation,
remediation, removal, reporting or other response action under any Environmental Law or that could otherwise reasonably be expected
to result in liability under any Environmental Law.

 

(f)          For
purposes of this Agreement, the term “Environmental Costs and Liabilities” means, with respect to any person,
all liabilities, obligations, responsibilities, remedial actions, losses, damages, punitive damages, consequential damages, treble
damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts and consultants and
costs of investigation and feasibility studies), fines, penalties, sanctions and interest incurred as a result of any claim or
demand by any other person or in response to any violation of Environmental Law, whether based in contract, tort, implied or express
warranty, strict liability, criminal or civil statute, to the extent based upon, related to, or arising under or pursuant to any
Environmental Law, Environmental Permit, order or Contract with any Governmental Entity or other person, which relates to any environmental,
health or safety condition, violation of or liability under Environmental Law or a release or threatened release of Hazardous Substances.

  

(g)          For
purposes of this Agreement “Release” means any release, spill, emission, leaking, pumping, injection, deposit,
disposal, discharge, dispersal, leaching or migration of Hazardous Substances into the indoor or outdoor environment, including,
without limitation, the movement of Hazardous Substances through ambient air, soil, surface water, ground water, wetlands, land
or subsurface strata.

 

(h)          None
of the Owned Real Property and the Leased Real Property qualifies as an “establishment” as defined by the Connecticut
Transfer Act, Conn. Gen. Stat. §§22a-134 et seq., (the “Transfer Act”; for purposes of this Section
3.13, terms in quotations herein are defined by the Transfer Act) and therefore that the Merger does not qualify as a “transfer”
under the Transfer Act. The provisions of this Section 3.13(h) shall survive the Closing.

 

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3.14.       Employee
Benefit Plans. 

 

(a)          Section
3.14(a) of Wilton Disclosure Schedule sets forth a complete and accurate list as of the date of this Agreement of all Employee
Benefit Plans maintained, sponsored or contributed to or required to be contributed to, by Wilton, or any of its ERISA Affiliates,
or with respect to which Wilton or any of its ERISA Affiliates has or may have any material liability, contingent or otherwise
(together, the “Wilton Employee Plans”). For purposes of this Agreement, the following terms shall have the
following meanings: (i) “Employee Benefit Plan” means any “employee pension benefit plan” (as defined
in Section 3(2) of ERISA), any “employee welfare benefit plan” (as defined in Section 3(1) of ERISA), and any other
written or oral plan, agreement, policy or arrangement involving direct or indirect compensation involving one or more persons,
including, without limitation, insurance coverage, severance benefits, disability benefits, retiree medical benefits, pension,
deferred compensation, bonuses, stock options, stock purchase, phantom stock, stock appreciation or other forms of incentive compensation
or post-retirement compensation and all unexpired severance agreements, for the benefit of, or relating to, any current or former
employee or director of Wilton or an ERISA Affiliate; (ii) “ERISA” means the Employee Retirement Income Security
Act of 1974, as amended; and (iii) “ERISA Affiliate” means any entity, trade or business that is a member of
(A) a controlled group of corporations (as defined in Section 414(b) of the Code), (B) a group of trades or businesses under common
control (as defined in Section 414(c) of the Code) or (C) an affiliated service group (as defined under Section 414(m) of the Code),
which includes Wilton.

 

(b)          With
respect to each Wilton Employee Plan, Wilton has made available to the Bank a complete and accurate copy of (as applicable) (i)
the plan document or other governing contract for such Wilton Employee Plan, including all amendments and supplements thereto,
and a summary of any unwritten Wilton Employee Plan, (ii) the last three (3) annual reports (Form 5500, including schedules and
attachments) filed with the Internal Revenue Service or Department of Labor; (iii) each trust agreement, group annuity contract,
or other funding agreement or contract for Wilton Employee Plan; (iv) the most recently distributed summary plan description, any
summaries of material modification, and any similar descriptions prepared or required for any Wilton Employee Plan relating to
such Wilton Employee Plan; and (v) the most recently received determination letter and/or opinion letter issued by the Internal
Revenue Service for any Wilton Employee Plan.

  

(c)          Each
Wilton Employee Plan is being operated and administered in all material respects in accordance with ERISA, the Code and all other
applicable laws and the regulations thereunder and in accordance with its terms. None of Wilton, or their ERISA Affiliates, any
officer or employee of such Wilton or ERISA Affiliate, or any of Wilton Employee Plans which are subject to ERISA, including any
trusts created thereunder, or any trustee, administrator, or fiduciary thereof, has engaged in a non-exempt prohibited transaction
(as defined in Section 406 of ERISA or Section 4975 of the Code) that could result in material liability to Wilton. All contributions
and all payments and premiums required to have been made to or under any Wilton Employee Plan have been made (or otherwise accrued
to the extent required by GAAP if not yet due). Nothing has occurred with respect to the operation of Wilton Employee Plans that
would reasonably be expected to cause the imposition of a material liability, penalty or tax on Wilton under ERISA, the Code or
other applicable Law. None of Wilton Employee Plans have been terminated, nor has there been any reportable event (as defined in
Section 4043 of ERISA) with respect to any Wilton Employee Plan within the last three (3) years.

 

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(d)          The
assets of each Wilton Employee Plan that is funded are reported at their fair market value on the books and records of such Wilton
Employee Plan.

 

(e)          All
Wilton Employee Plans that are intended to be qualified under Section 401(a) of the Code are so qualified and, if they are not
maintained pursuant to a prototype plan have received determination letters from the Internal Revenue Service to the effect that
such Wilton Employee Plans are qualified and the plans and trusts related thereto are exempt from federal income taxes under Sections
401(a) and 501(a), respectively, of the Code. No such determination letter has been revoked and revocation has not been threatened
and no act or omission has occurred, that would materially and adversely affect its qualification or materially increase its cost.
Any voluntary employee benefit association that provides benefits to current or former employees of Wilton, or any of its ERISA
Affiliates, or their beneficiaries, is and has been qualified under Section 501(c)(9) of the Code.

 

(f)          Neither
Wilton, nor any of its ERISA Affiliates (i) maintains a Wilton Employee Plan that was ever subject to Section 412 of the Code or
Title IV of ERISA or (ii) has ever been obligated to contribute to, or ever incurred any liability (contingent or otherwise) with
respect to, an employee benefit plan that is subject to Section 412 of the Code or Title IV of ERISA, or a “multiemployer
plan” (as defined in Section 4001(a)(3) of ERISA).

 

(g)          Except
as set forth in Section 3.14(g) of Wilton Disclosure Schedule, neither Wilton nor any of its ERISA Affiliates is a party
to any oral or written agreement with any shareholder, director, executive officer or other employee of Wilton, the benefits of
which are contingent or accelerated, or the terms of which are materially altered, upon the occurrence of a transaction involving
Wilton of the nature of any of the transactions contemplated by this Agreement.

 

(h)          Except
as set forth in Section 3.14(h) of Wilton Disclosure Schedule, there are no pending or, to Wilton’s Knowledge, threatened
suits, audits, examinations, actions, litigation or claims (excluding claims for benefits incurred in the ordinary course) with
respect to any of Wilton Employee Plans that, individually or in the aggregate, are reasonably likely to result in any material
liability to Wilton.

  

(i)          
Except as set forth in Section 3.14(i) of Wilton Disclosure Schedule, Wilton has not maintained and has no obligation
to contribute to, or provide coverage under, any retiree life or retiree health plans or arrangements which provide for
continuing benefits or coverage for current or former officers, directors or employees of Wilton, except as may be required
under part 6 of Subtitle B of Title I of ERISA and at the sole expense of the participant or the participant’s
beneficiary.

 

(j)         
 Each Wilton Employee Plan that is a nonqualified deferred compensation plan (as defined under Code Section 409A)
satisfies the applicable requirements of Sections 409A(a)(2),(3) and (4) of the Code, and has been operated and maintained,
in accordance with Section 409A of the Code and the Treasury Regulations Promulgated thereunder, subject to applicable
guidance of the United States Department of Treasury and the Internal Revenue Service.

 

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(k)          Except
as set forth in Section 3.14(k) of Wilton Disclosure Schedule, no payment, accrual of additional benefits, acceleration
of payments or vesting in any benefit under any Wilton Employee Plan or other agreement or arrangement will be caused by Wilton’s
entering into this Agreement or by the consummation of the transactions contemplated hereby (either alone or in combination with
any other event). There is no contract, agreement, plan or arrangement covering any employee or former employee of Wilton or any
of its Affiliates that, individually or collectively, in connection with the transactions contemplated by this Agreement (either
alone or in combination with any other event) will give rise to the payment to any person of a “parachute payment”
within the meaning of Section 280G of the Code.

 

(l)          
The transactions contemplated by this Agreement do not and will not individually or collectively constitute a
“prohibited transaction” under the Code or ERISA for which no statutory or administrative exemption is
available.

 

(m)         Notwithstanding
anything to the contrary in this Agreement, neither this Section 3.14 nor any provision of this Agreement is intended to,
or does, constitute the establishment of, or an amendment to, any Wilton Employee Plan.

 

(n)         Each
Wilton Employee Plan which is a group health plan (within the meaning of Code Section 5000(b)(1)) complies and has complied in
all material respects with the applicable requirements of (i) Part 6 of Title I of ERISA and Section 4980(B) of the Internal Revenue
Code; (ii) the Patient Protection and Affordable Care Act of 2010; and (iii) the data privacy and security requirements under the
Health Insurance Portability and Accountability Act and the Health Information Technology and Clinical Health Act.

 

3.15.       Compliance
With Laws.   Wilton is and has been in compliance in all material respects with, is not in violation of, and, has not received
any written notice alleging any violation with respect to, any Law with respect to the conduct of its businesses, or the ownership
or operation of its respective properties or assets, except for failures or violations that would not have a Wilton Material Adverse
Effect.

  

For purposes of this Agreement, “Law”
means any law in any jurisdiction (including common law), statute, code, ordinance, rule, regulation, permit, order, decree or
other requirement or guideline.

 

3.16.       Permits.
    All material governmental licenses, approvals, authorizations, registrations, consents, orders, certificates, decrees, franchises
and permits (collectively, “Permits”) of Wilton, are set forth on Section 3.16 of Wilton Disclosure Schedule.
Such Permits are all of the material Permits necessary for the services provided by Wilton and the conduct and operation of its
business. All such Permits are in full force and effect; and no proceeding is pending or, to Wilton’s Knowledge, threatened,
seeking the revocation or limitation of any such Permit. To Wilton’s Knowledge, there exists no state of facts which could
cause any Governmental Entity to limit, revoke or fail to renew any Permit related to or in connection with any business as currently
conducted or operated by Wilton.

 

    	23

    	 

    

 

3.17.       Labor
Matters.

 

(a)          Section
3.17(a) of Wilton Disclosure Schedule contains a list as of the date of this Agreement of all employees of Wilton, along with
the position and the annual rate of base compensation and date of hire of each such person.

 

(b)          Except
as set forth in Section 3.17(b) of Wilton Disclosure Schedule, no employee or former employee of Wilton is subject to any
collective bargaining agreement relating to their employment with Wilton and there is no union or other labor organization which,
pursuant to applicable Law, must be notified or consulted or with which negotiations need to be conducted by operation of law in
connection with the Merger.

 

(c)          Except
as set forth in Section 3.17(c) Wilton Disclosure Schedule, Wilton is not the subject of any proceeding asserting that Wilton
has committed an unfair labor practice or is seeking to compel it to bargain with any labor union or other labor organization that,
and there is not pending or, to Wilton’s Knowledge, threatened, any labor strike, dispute, walkout, work stoppage, slow-down
or lockout involving Wilton that individually or in the aggregate, is reasonably likely to have a Wilton Material Adverse Effect,
and there has not been any such action.

 

(d)          Except
as set forth in Section 3.17(d) of Wilton Disclosure Schedule, Wilton is not the subject of any proceeding pending or, to
Wilton’s Knowledge, threatened before the Equal Employment Opportunity Commission or any other similar state or local agency
responsible for the prevention of unlawful employment practices.

 

3.18.       Insurance.
  Wilton has made available to the Bank copies of all current insurance policies and binders (the “Insurance Policies”)
(i) insuring the business or properties of Wilton or (ii) which provide insurance for any director, officer, employee, fiduciary
or agent of Wilton that is held by or on behalf of Wilton. All material Insurance Policies are in full force and effect (to Wilton’s
Knowledge, free from any presently exercisable right of termination on the part of the insurance company issuing such policy prior
to the expiration of the terms of such policy) and all premiums due and payable in respect thereof have been paid. Except as set
forth in Section 3.18 of Wilton Disclosure Schedule, there are no outstanding claims under any Insurance Policy nor have
there been any claims which have been denied or disputed by the insurer. Wilton has not received written or, to Wilton’s
Knowledge, oral notice of cancellation or termination with respect to any Insurance Policy that has not been replaced on substantially
similar terms prior to the date of such cancellation. The transactions contemplated by this Agreement shall not give rise to a
right of termination of any such policy by the insurance company issuing the same prior to the expiration of one term of such policy.

  

3.19.       Affiliate
Transactions.   Except as disclosed in Section 3.19 of Wilton Disclosure Schedule, no officer, director, employee, equity
holder, or Affiliate of Wilton is a party to any Contract or transaction or loan to, from or with Wilton or has any interest in
any property, real or personal or mixed, tangible or intangible, of Wilton that will survive the Closing. For purposes of this
Agreement, “Affiliate” means, with respect to any person, any person that, directly or indirectly, controls, is controlled
by, or is under common control with, such person in question. For the purposes of this definition, “control” (including,
with correlative meaning, the terms “controlled by” and “under common control with”) as used with respect
to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such person, whether through the ownership of voting securities or by contract or otherwise.

 

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3.20.       Brokers.
  Except for Sandler O’Neill + Partners, L.P., the fees of which will be paid by Wilton, no broker, finder or investment banker
is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated hereby
based upon arrangements made by or on behalf of Wilton.

 

3.21.       Books
and Records.   The books and records of Wilton and its operations, employees and properties, have been maintained in the usual,
regular and ordinary manner, all entries with respect thereto have been accurately made in all material respects.

 

3.22.       Disclosure.
  No representation or warranty by Wilton contained in this Agreement or any other Transaction Document or any statement or certificate
furnished by Wilton to the Bank or its representatives in connection herewith or therewith or pursuant hereto or thereto contains
any untrue statement of a material fact, or omits to state any material fact required to make the statements herein or therein
contained not misleading. There is no fact known to Wilton which might reasonably be expected to have a Wilton Material Adverse
Effect.

 

ARTICLE
IV.

REPRESENTATIONS AND WARRANTIES OF BNC AND THE BANK

 

BNC and the Bank represent and
warrant to Wilton as of the date hereof and as of the Closing Date that the statements contained in this Article IV are true and
correct, except as set forth herein. For purposes of this Agreement, “Bank’s Knowledge” shall mean the
actual knowledge of Peyton R. Patterson and Ernest J. Verrico, Sr. (the “Relevant Persons”). For the avoidance
of doubt, Bank’s Knowledge shall be deemed to exist also with respect to any fact or circumstance that the Relevant Persons
would have been aware of if they had discussed the subject matter of such representations and warranties with their staff members
in the Ordinary Course of Business.

  

4.1.         Organization,
Standing and Power.   Each of BNC and the Bank is a corporation duly organized, validly existing and in good standing under the
Laws of the jurisdiction of its incorporation, has all requisite corporate power and authority to own, lease and operate its properties
and assets and to carry on its business as now being conducted, and is duly qualified and licensed to do business and, where applicable
as a legal concept, is in good standing as a foreign corporation in each jurisdiction in which the character of the properties
it owns, operates or leases or the nature of its activities makes such qualification necessary, except for such failures to be
so organized, qualified, licensed or in good standing, individually or in the aggregate, that are not reasonably likely to have
a Bank Material Adverse Effect.

 

For purposes of this Agreement,
the term “Bank Material Adverse Effect” means any adverse change, event, effect, circumstance or development
with respect to, or, that, individually or together with any other change, event, effect, circumstance or development, on a long
term basis, materially diminishes the financial position of Bank or BNC, the ability of Bank or BNC to perform their obligations
under any Transaction Documents, or the validity or enforceability of any of the Transaction Documents or the rights and remedies
of the Bank or BNC (except as a result of any act or failure to act by the Bank or BNC) under any of the Transaction Documents;
provided, however, that none of the following shall constitute, or shall be considered in determining whether there
has occurred, a Bank Material Adverse Effect:

 

    	25

    	 

    

 

(a)          changes
that are the result of economic or political factors affecting the national, regional or world economy or acts of war or terrorism,
other than those that have had or are reasonably likely to have a disproportionate effect on Bank or BNC taken as a whole;

 

(b)         
changes in GAAP or regulatory accounting requirements applicable to banks generally;

 

(c)          any
modifications or changes to valuation policies and practices in connection within the transactions contemplated by this Agreement,
in each case in accordance with GAAP;

 

(d)          changes
that are the result of factors generally affecting the banking industry, other than those that have had or are reasonably likely
to have a disproportionate effect on Bank or BNC;

 

(e)          reasonable
expenses incurred in connection with this Agreement;

 

(f)     
    any adverse change, effect or circumstance arising out of or resulting directly and solely from
actions required to be taken by Bank or BNC pursuant to this Agreement or the announcement of the transactions contemplated
by this Agreement; and

 

(g)          changes
in Law, rules or regulations or generally accepted accounting principles or the interpretation thereof, other than those that have
had or are reasonably likely to have a disproportionate effect on Bank or BNC.

  

4.2.         Authority;
No Conflict; Required Filings and Consents.

 

(a)          Each
of BNC and the Bank has all requisite corporate power and authority to enter into this Agreement and each other Transaction Document
to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement
and each other Transaction Document to which it is a party and the consummation of the transactions contemplated hereby and thereby
by BNC and the Bank have been duly authorized by all necessary corporate action on the part of each of BNC and the Bank. This Agreement
has been duly executed and delivered by each of BNC and the Bank and constitutes the valid and binding obligation of each of BNC
and the Bank, enforceable against each of them in accordance with its terms, subject to the Bankruptcy and Equity Exception.

 

    	26

    	 

    

 

(b)          The
execution and delivery of this Agreement and each of the other Transaction Documents to which each of BNC and the Bank are a party
do not, and the consummation by BNC and the Bank of the transactions contemplated hereby and thereby shall not, (i) conflict with,
or result in any violation or breach of, any provision of the Articles of Association or By-laws of BNC or the Certificate of Incorporation
or By-laws of the Bank, (ii) conflict with, or result in any violation or breach of, or constitute (with or without notice or lapse
of time, or both) a default (or give rise to a right of termination, cancellation or acceleration of any obligation or loss of
any material benefit) under, require a consent or waiver under, constitute a change in control under, require the payment of a
penalty under or result in the imposition of any Lien on BNC’s or the Bank’s assets under, any of the terms, conditions
or provisions of any lease, license, contract or other agreement, instrument or obligation to which BNC or the Bank is a party
or by which any of them or any of their properties or assets may be bound, or (iii) subject to compliance with the requirements
specified in clauses (i), (ii), and (iii) of Section 4.2(c), conflict with or violate any permit, franchise, license, judgment,
injunction, order, decree, statute, law, ordinance, rule or regulation applicable to BNC or the Bank or any of its or their respective
properties or assets, except in the case of clauses (ii) and (iii) of this Section 4.2(b) for any such conflicts, violations,
breaches, defaults, terminations, cancellations, accelerations, losses, penalties or Liens, and for any consents or waivers not
obtained, that, individually or in the aggregate, are not reasonably likely to have an Bank Material Adverse Effect.

 

(c)          No
consent, approval, license, permit, order or authorization of, or registration, declaration, notice or filing with, any international,
national, federal, state, provincial or local governmental, regulatory or administrative authority, agency, commission, board,
court, tribunal, arbitral body, self-regulated entity or similar body, whether domestic or foreign and specifically including,
without limitation, the Connecticut Department of Banking and the FDIC is required by or with respect to Bank or BNC in connection
with the execution and delivery of this Agreement by Bank and BNC or the consummation by Bank or BNC of the transactions contemplated
by this Agreement, except for (i) the filing of the Bank Merger Agreement with the Secretary of the State of the State of Connecticut;
(ii) the filings required to be made and the approvals or non-objection status required to be obtained from the Connecticut Department
of Banking and the FDIC and (iii) expiration of applicable waiting periods.

  

(d)          No
vote of the holders of any class or series of BNC’s capital stock or other securities is necessary for the consummation by
BNC or the Bank of the transactions contemplated by this Agreement.

 

(e)          Neither
of BNC and the Bank is an “interested shareholder” of Wilton, and neither of BNC and the Bank is, or after consummation
of the transactions contemplated by this Agreement would be, an affiliate or associate of an “interested shareholder”
pursuant to Sections 33-840 to 33-845 of the CBCA.

 

4.3.         Litigation.
  There is no Action pending or, to the knowledge of BNC and the Bank, threatened in writing (nor to the knowledge of BNC and the
Bank, are there any facts which could lead to such an Action) against BNC or the Bank, at law or in equity, before any Governmental
Entity that challenges the Merger or the validity of this Agreement, or the right of BNC or the Bank to enter into this Agreement,
or to consummate the transactions contemplated hereby. There are no judgments, orders or decrees outstanding against BNC or the
Bank. There is no Action pending or threatened (nor to the knowledge of BNC and the Bank, are there any facts which could lead
to such an Action), in each case as of the date of this Agreement against BNC or the Bank, or, to the knowledge of BNC and the
Bank, or any of their directors or executive officers, alleging a violation of federal or state securities laws that relates to
BNC or the Bank.

 

    	27

    	 

    

 

4.4.         Financial
Statements.

 

(a)          BNC
has provided to Wilton the audited annual financial statements of BNC and the Bank for the fiscal year ended December 31, 2012
(the “BNC Financial Statements”) and will, prior to Closing, provide to Wilton quarterly financial statements
for the quarter ended September 30, 2013 (the “Third Quarter Statements”) with a limited review (but not a full
audit), including a balance sheet and profit and loss statement and management’s representation letter. BNC or Bank shall
be responsible for the costs associated with the performance of such limited review.

 

(b)          The
BNC Financial Statements are, and the Third Quarter Statements will be, derived from the books and records of BNC and the Bank,
and are and will be true and complete in all material respects, prepared in accordance with the GAAP in accordance with historical
practices on a consistent basis, and fairly present the financial condition, results of operations and, with respect to the audited
financial statements only, cash flows, of BNC and the Bank as of the date thereof and for the period referred to therein and are
consistent with the books and records of BNC and the Bank. No circumstances existed on the relevant balance sheet dates of the
BNC Financial Statements or the Third Quarter Statements which render any items in the BNC Financial Statements or the Third Quarter
Statements incorrect or incomplete in any material respect. The statements of operations included in BNC Financial Statements or
the Third Quarter Statements do not include any item of special or non-recurring revenue, except as specifically identified therein.

  

(c)          The
allowance for loan losses reflected in the BNC Financial Statements was, and the allowance for loan losses shown on the Balance
Sheets for periods ending after December 31, 2012 was, adequate, as of the date thereof, under GAAP. The Bank’s allowance
for loan losses is, and shall be as of the Closing Date, in compliance with the its existing methodology for determining the adequacy
of its allowance for loan losses as well as the standards established by GAAP and is and shall be adequate under all such standards.
BNC and the Bank complied with all orders, written comments and directives provided to it by any Governmental Entities relating
to its allowance for loan losses since date of its Financial Statements.

 

4.5.         No
Undisclosed Liabilities.

 

(a)          BNC
and the Bank have no liability, whether asserted or unasserted, absolute, accrued or unaccrued, contingent, whether liquidated
or unliquidated, whether due or to become due, or otherwise, that would be required by GAAP to be reflected on a balance sheet
of BNC or the Bank, except (i) as disclosed in BNC Financial Statements including footnotes thereto, (ii) for liabilities incurred
in the Ordinary Course of Business consistent with past practice after the date of BNC Financial Statements (none of which results
from, arises out of, relates to or is in the nature of, or was caused by any breach of Contract, breach of warranty, tort, infringement,
or violation of Law), or (iii) for other liabilities that are not in excess of $100,000 individually, or $250,000 in the aggregate.

 

(b)          Other
than deferred tax liabilities, since the date of BNC Financial Statements BNC has not incurred any liability other than in the
ordinary course of business consistent with past practice (the “Ordinary Course of Business”).

 

    	28

    	 

    

 

4.6.         Absence
of Certain Changes or Events.   Since December 31, 2012, BNC and the Bank have operated only in the Ordinary Course of Business
and have maintained their relationships with customers, vendors, suppliers, employees, agents and others in a commercially reasonable
manner, and there has not occurred any event, development or change which, individually or in the aggregate, has had or could be
reasonably expected to have a BNC or Bank Material Adverse Effect.

 

4.7.         Taxes.

 

(a)          BNC
and the Bank have (i) accurately prepared in all material respects and timely filed (taking into account valid extensions) all
Tax Returns (as defined below) required to be filed by them for any taxable period ending on or before the Closing Date, and all
such Tax Returns are true, correct and complete in all material respects; (y) paid all Taxes imposed on them (other than Taxes
being contested in good faith and for which adequate reserves have been established on the most recent BNC Financial Statements);
and (ii) established the most recent BNC Financial Statements reserves that are adequate for the payment of any Taxes not yet due
and payable. Since the date of the most recent BNC Financial Statements, neither BNC nor the Bank has incurred any material liability
for Taxes other than in the Ordinary Course of Business. All material Taxes that BNC and the Bank were required by Law to withhold
or collect have been duly withheld or collected and, to the extent required, paid to the proper Governmental Entity.

  

(b)          There
are no Liens for Taxes upon any assets of BNC or the Bank, except for Liens for Taxes not yet due and payable or that are being
contested in good faith in appropriate proceedings and for which adequate reserves have been established on the most recent BNC
Financial Statements.

 

(c)          No
material deficiency for Taxes has been proposed, asserted or assessed against BNC or the Bank in writing that has not been resolved
with any amounts due paid in full. No jurisdiction in which BNC or the Bank currently do not file or have not filed a Tax Return
has asserted any claim in writing that BNC or the Bank may be subject to Tax in that jurisdiction. No waiver, extension or comparable
consent given by BNC or the Bank in writing regarding the application of the statute of limitations with respect to any Taxes or
Tax Return is outstanding, nor is any request for any such waiver or consent pending.

 

(d)          There
are no federal, state, local or foreign audits, actions, suits, proceedings, investigations, claims or administrative proceedings
relating to Taxes or any Tax Return of BNC or the Bank now pending, and neither BNC nor the Bank have received any notice in writing
of, nor is there BNC’s or the Bank’s Knowledge of, any proposed audits, investigations, claims, or administrative proceedings
relating to Taxes or any Tax Returns.

 

(e)          Neither
BNC nor the Bank has been a real property holding corporation within the meaning of Section 897(c)(2) of the Code during the applicable
periods specified in such Section.

 

(f)          Neither
BNC nor the Bank is a member of an affiliated group of corporations within the meaning of Section 1504 of the Code (other than
the group for which BNC or the Bank is currently the parent) or included in any “consolidated,” “unitary,”
or “combined” Tax Return provided for under the laws of the United States, any foreign jurisdiction or any state or
locality with respect to Taxes. Neither BNC nor the Bank have any liability for Taxes of any Person other than BNC or the Bank
under Treas. Reg. Section 1.1502-6 or any similar provision of state, local or foreign Law.

 

    	29

    	 

    

 

(g)          Neither
BNC nor the Bank is a party to or bound by any tax indemnity, tax sharing or tax allocation agreement.

 

(h)          During
the last two (2) years, neither BNC nor the Bank has been a “distributing corporation” or a “controlled corporation”
in connection with a distribution described in Section 355 of the Code.

 

(i)        
  Except in the Ordinary Course of Business, neither BNC nor the Bank will be required to include any material item
of income or gain in, or exclude any item of deduction or loss from, taxable income for any taxable period (or portion
thereof) beginning after the Closing Date as a result of any: (i) change in method of accounting for a taxable period ending
on or prior to the Closing Date; (ii) "closing agreement" as described in Section 7121 of the Code (or any similar
provision of state, local or foreign Law) executed on or prior to the Closing Date; (iii) installment sale or open
transaction disposition made on or prior to the Closing Date; or (iv) election under Section 108(i) of the Code (or any
similar provision of state, local or foreign Law).

 

(j)        
 Neither BNC nor the Bank is a party to any "reportable transaction" as defined in Section 6707A(c)(1)
of the Code or Treasury Regulations Section 1.6011-4(b).

  

For purposes of this Agreement,
(i) “Tax” and “Taxes” shall mean any federal, state, local or foreign income, gross receipts,
license, payroll, severance, occupation, premium, environmental, gains, sales, use, transfer, employment, capital stock, franchise,
profits, withholding, excise, real property, personal property, value added and other taxes, social security (or similar), unemployment,
disability, alternative or add-on minimum, estimated fees, stamp taxes and duties, assessments or charges of any kind whatsoever,
together with any interest and penalties, additions to tax or additional amounts imposed by any taxing authority with respect thereto,
and (ii) “Tax Returns” means all reports, returns, declarations, statements or other information required to
be supplied to a taxing authority in connection with Taxes including any schedules, supplements or amendments thereto.

 

4.8.         Books
and Records.   The books and records of BNC and the Bank and their operations, employees and properties, have been maintained
in the usual, regular and ordinary manner, all entries with respect thereto have been accurately made, and all transactions involving
have been accurately accounted for.

 

4.9.         Disclosure.
  No representation or warranty by BNC or the Bank contained in this Agreement or any other Transaction Document or any statement
or certificate furnished by BNC or the Bank to Wilton or its representatives in connection herewith or therewith or pursuant hereto
or thereto contains any untrue statement of a material fact, or omits to state any material fact required to make the statements
herein or therein contained not misleading. There is no fact known to BNC or the Bank which might reasonably be expected to have
a Bank Material Adverse Effect.

 

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4.10.       Compliance
With Laws.   Bank and BNC are and have been in compliance in all material respects with, are not in violation of, and, have not
received any written notice alleging any violation with respect to, any Law with respect to the conduct of their businesses, or
the ownership or operation of their respective properties or assets, except for failures or violations that would not have a Bank
Material Adverse Effect.

 

For purposes of this Agreement, “Law”
means any law in any jurisdiction (including common law), statute, code, ordinance, rule, regulation, permit, order, decree or
other requirement or guideline.

 

4.11.       Brokers.
  Except for Keefe, Bruyette & Woods, Inc., no broker, finder or investment banker is entitled to any brokerage, finder’s
or other fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf
of BNC or the Bank.

 

4.12.       Statements
True and Correct.   None of the information supplied or to be supplied by BNC or Bank for inclusion in (i) the Proxy Statement
(as defined herein), and (ii) any other documents to be filed with any banking or other regulatory authority in connection with
the transactions contemplated hereby, will, at the respective times such documents are filed, and with respect to the Proxy Statement,
when first mailed to the stockholders of Wilton and at the time of the Wilton Meeting (as defined herein), contain any untrue statement
of a material fact, or omit to state any material fact necessary in order to make the statements made therein, in light of the
circumstances under which they are made, not misleading. All documents that BNC or Bank is responsible for filing with any other
regulatory authority in connection with the transactions contemplated hereby will comply as to form in all material respects with
the provisions of applicable law.

  

4.13.       Certain
Regulatory Matters.   Neither BNC nor Bank is subject to, or has received any notice that it may become subject to, any cease-and-desist
or other order issued by, consent or other agreement or memorandum of understanding with, or commitment letter or similar undertaking
to, or is a recipient of any extraordinary supervisory letter from, or is subject to any order or directive by, or has adopted
any board resolutions at the request of, any federal or state agency charged with the supervision or regulation of financial institutions
or their holding companies or engaged in the insurance of financial institution deposits or any other Governmental Entity having
supervisory or regulatory authority with respect to BNC or Bank. Neither BNC nor the Bank is aware of any fact, circumstance or
consideration that would impair the obtaining of regulatory approvals required to approve the Merger.

 

4.14.       Financial
Controls and Procedures.   The records, systems, controls, data and information of BNC and Bank are recorded, stored, maintained
and operated under means (including any electronic, mechanical or photographic process, whether computerized or not) that are under
the exclusive ownership and direct control of BNC, Bank or their accountants, as applicable, (including all means of access thereto
and therefrom), except for any non-exclusive ownership and non-direct control that would not reasonably be expected to have a materially
adverse effect on the system of internal accounting controls described in the following sentence. BNC and Bank have devised and
maintain a system of internal accounting controls sufficient to provide reasonable assurances regarding the reliability of financial
reporting and the preparation of financial statements in accordance with GAAP, and as of the date hereof, neither BNC nor Bank
have identified any material weaknesses in the design or operation of internal controls over financial reporting.

 

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4.15.       Financing.
As of the date of this Agreement, BNC and the Bank have the financial ability and on the Effective Date of the Merger and through
the date of payment of the aggregate amount of cash payable pursuant to this Agreement, BNC and the Bank shall have the funds necessary
to consummate the Merger and pay the aggregate amount of cash to be paid to holders of Wilton Common Stock.

 

ARTICLE
V.

CONDUCT OF BUSINESS

 

5.1.         Covenants
of Wilton.   Except as expressly provided or permitted herein, set forth in Section 5.1 of Wilton Disclosure Schedule
or as consented to in writing by the Bank, during the period commencing on the date of this Agreement and ending at the Effective
Time or such earlier date as this Agreement may be terminated in accordance with its terms (the “Pre-Closing Period”),
Wilton shall (i) maintain its existence in good standing, (ii) maintain in effect all of its presently existing insurance coverage
(or substantially equivalent insurance coverage), preserve its business organization and keep substantially intact its assets and
properties, (iii) use commercially reasonable efforts to keep the services of its present principal employees and preserve its
business relationships with its customers, strategic partners and others having business dealings with it, (iv) maintain the business
of Wilton and (iv) in all respects conduct its business in the Ordinary Course of Business, without a material change in current
operational policies. Wilton shall use its reasonable best efforts to perform and fulfill all conditions and obligations on its
part to be performed or fulfilled under this Agreement and to cause the consummation of the transactions contemplated hereby in
accordance with the terms and conditions of this Agreement. Without limiting the generality of the foregoing, during the Pre-Closing
Period Wilton shall not, directly or indirectly, do any of the following without the prior written consent of the Bank, which shall
not be unreasonably withheld or delayed:

  

(a)          (i)
declare, set aside or pay any dividends on, or make any other distributions (whether in cash, securities or other property) in
respect of, any of its capital stock; (ii) split, combine, alter the terms of or reclassify any of its capital stock or issue or
authorize the issuance of any other securities in respect of, in lieu of or in substitution for shares of its capital stock or
any of its other securities; or (iii) purchase, redeem or otherwise acquire any shares of its capital stock or any other of its
securities or any rights, warrants or options to acquire any such shares or other securities;

 

(b)          except
as permitted by Section 5.1(i), issue, deliver, sell, grant, pledge or otherwise dispose of or encumber any shares of its
capital stock, any other voting securities or any securities convertible into or exchangeable for, or any rights, warrants or options
to acquire, any such shares, voting securities or convertible or exchangeable securities (other than the issuance of shares of
Wilton Common Stock upon the exercise of Wilton Stock Options outstanding on the date of this Agreement);

 

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(c)          amend
its Certificate of Incorporation, By-laws or other comparable charter or organizational documents or alter, through merger, liquidation,
reorganization, restructuring, or in any other fashion, its structure or ownership;

 

(d)          acquire
(i) by merging or consolidating with, or by purchasing all or a substantial portion of the assets or any stock of, or by any other
manner, any business or any corporation, partnership, joint venture, limited liability company, association or other business organization
or division thereof or (ii) any assets that are material, in the aggregate, to Wilton, except in the Ordinary Course of Business;

 

(e)          mortgage,
sell, lease, license, pledge, grant a security interest in or otherwise dispose of or encumber any properties or assets valued
in excess of $10,000 individually, or $25,000 in the aggregate, other than in the Ordinary Course of Business;

 

(f)          other
than in the Ordinary Course of Business, (i) incur any indebtedness for borrowed money or guarantee any such indebtedness of another
Person, (ii) issue, sell or amend any debt securities or warrants or other rights to acquire any debt securities, or guarantee
any debt securities of another Person, (iii) make any loans, advances or capital contributions to, or investment in, any other
Person, other than Wilton, or (iv) enter into any hedging agreement or other financial agreement or arrangement designed to protect
Wilton against fluctuations in interest rates;

  

(g)          make
any capital expenditures or other expenditures with respect to property, plant or equipment in excess of $10,000, individually,
or $25,000, in the aggregate, other than the specific capital expenditures disclosed in Section 5.1 of Wilton Disclosure
Schedule;

 

(h)          make
any material changes in accounting methods, principles or practices, except insofar as may have been required by a change in GAAP;

 

(i)   
       except as required to comply with applicable Law or agreements, plans or
arrangements existing on the date hereof, (i) adopt, enter into, terminate, amend or enhance any employment, severance or
similar agreement or Wilton Employee Plan (including, but not limited to, granting any additional awards under any stock
option or plan or modifying any existing award thereunder) for the benefit or welfare of any current or former director,
officer, employee or consultant or any collective bargaining agreement (except in the Ordinary Course of Business), (ii)
increase in any material respect the compensation or fringe benefits of, or pay any bonus to, any director, officer, employee
or consultant (except for annual increases (not to exceed 3% for any person) of salaries), (iii) amend or accelerate the
payment, right to payment or vesting of any compensation or benefits, including any outstanding options or restricted stock
awards, or (iv) pay any material benefit not provided for as of the date of this Agreement under any Wilton Employee
Plan.

 

(j)     
    change any method of Tax accounting, settle or compromise any Tax liability, amend any Tax
Return, make any new Tax election, or consent to any extension or waiver of the limitation period applicable to any Tax
claim, proposed assessment or assessment, in each case except in the Ordinary Course of Business;

 

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(k)          initiate,
settle or compromise any litigation, arbitration proceeding, claim or action or cancel, waive or compromise any debt or claim;

 

(l)      
    open any new, or permanently close, any existing, facility or office;

 

(m)         extend,
terminate or modify any Wilton Material Contract or permit any renewal notice period or option period to lapse with respect to
any Wilton Material Contract, except for terminations of Wilton Material Contracts upon their expiration during such period in
accordance with their terms;  

 

(n)          discharge
or satisfy any Lien other than those which are required to be discharged or satisfied during such period in accordance with their
original terms;

 

(o)          pay
any material obligation or liability (absolute, accrued, contingent or otherwise), whether due or to become due, except for any
current liabilities, and the current portion of any long term liabilities shown on Wilton Financial Statements or incurred since
December 31, 2012 in the Ordinary Course of Business;

 

(p)          (i)
enter into any lease or other Contract affecting the Owned Real Property or the possession, use or control thereof; or (ii) create,
permit or suffer any Lien to attach to or affect the Owned Real Property, except for the Lien of nondelinquent real estate Taxes;

  

(q)          change
the time, manner of payment of or other practices or procedures relating to the accounts payable or other current liabilities of
Wilton;

 

(r)   
      change working capital practices or business policies, including: (i) reductions in
insurance coverage; or (ii) reductions or increases in capital expenditures;

 

(s)          sell,
transfer, mortgage, encumber or otherwise dispose of or discontinue any of its assets, deposits, business or properties, including
other real estate owned;

 

(t)          acquire
(other than by way of foreclosures or acquisitions of control, in each case in the Ordinary Course of Business consistent with
past practice), including without limitation, by merger or consolidation or by investment in a partnership or joint venture, all
or any portion of the assets, business, securities, deposits or properties of any other Person.

 

(u)    
     change its material lending, investment, underwriting, pricing, servicing, risk and asset
liability management and other material banking and operating policies, except as required by applicable law, regulation or
policies imposed by any Governmental Entity, or the manner in which its investment securities or loan portfolio is classified
or reported; or invest in any mortgage-backed or mortgage-related security that would be considered “high risk”
under applicable regulatory guidance; or file any application or enter into any contract with respect to the opening,
relocation or closing of, or open, relocate or close, any branch, office, service center or other facility;

 

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(v)          incur
any indebtedness for borrowed money (other than deposits, federal funds purchased, cash management accounts, Federal Home Loan
Bank or Federal Reserve borrowings that mature within one year and that have no put or call features and securities sold under
agreements to repurchase that mature within 90 days, in each case in the ordinary course of business consistent with past practice);
or assume, guarantee, endorse or otherwise as an accommodation become responsible for the obligations of any other Person, other
than with respect to the collection of checks and other negotiable instruments in the Ordinary Course of Business;

 

(w)         except
for government agency or government guaranteed mortgage-backed securities portfolios in the Ordinary Course of Business, acquire
(other than by way of foreclosures or acquisitions in the ordinary course of business consistent with past practice) any debt security
or equity investment other than federal funds or United States Government securities or United States Government agency securities,
in each case with a term of one year or less or (ii) dispose of any debt security or equity investment;

 

(x)          make,
renew or otherwise modify any Loans other than Loans made or acquired in the Ordinary Course of Business consistent with past practice
which have (i) in the case of unsecured Loans made to any one borrower that are originated in compliance with the entity’s
internal Loan policies, a principal balance not in excess of $50,000, (ii) in the case of Loans secured other than by real estate
that are originated in compliance with the entity’s internal Loan policies, a principal balance not in excess of $100,000
and (iii) in the case of Loans secured by real estate made to any one borrower that are originated in compliance with the entity’s
internal Loan policies, a principal balance not in excess of $100,000; or enter into any Loan securitization or create any special
purpose funding entity; or

  

(y)     
    authorize any of, or commit or agree, in writing or otherwise, to take any of, the foregoing
actions.

 

Notwithstanding anything to the contrary
herein, (i) any loans in default may be modified by Wilton, (ii) any litigation or arbitration proceeding may be initiated, settled,
compromised or waived by Wilton, (iii) any Lien may be discharged or satisfied by Wilton, or (iv) any assets, deposits, business
or properties, including other real estate owned, may be sold, transferred, mortgaged or encumbered by Wilton, in each case with
the consent of the Bank, not to be unreasonably withheld. Wilton shall provide the Bank with written notice of any such proposed
action which will be deemed approved within 96 hours of delivery to the Bank, unless the Bank objects in writing within that timeframe.
If a court or arbitrator requires Wilton to take any such action within a shorter period of time, (i) Wilton shall use its best
efforts to extend the court or arbitrator deadline and (ii) promptly notify the Bank of such deadline. If the deadline cannot be
extended, the Bank shall be deemed to approve of Wilton’s proposed action, unless the Bank objects in writing no later than
the deadline.

 

In addition, Wilton shall, on a monthly
or more frequent basis prior to the Effective Time, disclose to, and consult with, the Bank with respect to Wilton’s monthly
budgeting and financial reforecasting and readjustment.

 

Notwithstanding the foregoing, nothing
contained in this Agreement shall give the Bank, directly or indirectly, the right to control or direct the operations of Wilton
prior to the Effective Time. Prior to the Effective Time, Wilton shall exercise, consistent with the terms and conditions of this
Agreement, complete control and supervision over its operations.

 

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5.2.         Covenants
of Bank and BNC.   Except as expressly provided or permitted herein, or as consented to in writing by Wilton, during the period
commencing on the date of this Agreement and ending at the Effective Time or such earlier date as this Agreement may be terminated
in accordance with its terms (the “Pre-Closing Period”), Bank and BNC shall (i) maintain their existence in
good standing, (ii) maintain in effect all of their presently existing insurance coverages (or substantially equivalent insurance
coverages), preserve their business organizations and keep substantially intact their assets and properties, (iii) use commercially
reasonable efforts to keep the services of their present principal employees and preserve their business relationships with Bank’s
customers, their strategic partners and others having business dealings with them, (iv) maintain the business of Bank and (iv)
in all respects conduct their business in the Ordinary Course of Business, without a material change in current operational policies.
Subject to the terms and conditions herein provided, Bank and BNC agree to use their reasonable best efforts in good faith to take,
or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable under applicable laws
and regulations to consummate and make effective the transactions contemplated by this Agreement during the fourth calendar quarter
of 2013 or as soon thereafter as practicable. In the event that BNC or the Bank determines that a condition to obligation to complete
the Merger cannot be fulfilled and that it will not waive that condition, it will immediately so notify Wilton.

  

5.3.         Confidentiality.
  The parties acknowledge that BNC, the Bank and Wilton have previously executed a bilateral confidentiality agreement, dated as
of ____________ (as amended to date, the “Confidentiality Agreement”), which Confidentiality Agreement shall
continue in full force and effect in accordance with its terms, except as expressly modified herein.

 

5.4.         Information
Furnished by the Parties.   Each party shall promptly, and in any event within ten (10) business days, except where, with
reasonable diligence, such information cannot be procured within ten (10) business days, following receipt of a written request
from the other party, furnish or cause to be furnished (the “disclosing party”) to the other party (the “requesting
party”) all information concerning the disclosing party, including but not limited to financial statements, required for
inclusion in any statement or application made or filed by the requesting party to any governmental body in connection with the
transactions contemplated by this Agreement or in connection with any unrelated transactions during the pendency of this Agreement.
The disclosing party represents and warrants that all information so furnished shall be true and correct in all material respects
and shall not omit any material fact required to be stated therein or necessary to make the statements made, in light of the circumstances
under which they were made, not misleading. Each party shall otherwise fully cooperate with the other party in the filing of any
applications or other documents necessary to consummate the transactions contemplated by this Agreement.

 

5.5.         Consents
and Approvals.   Each party (i) shall take all necessary corporate and other action and use its best efforts to obtain at the
earliest practicable time all approvals of regulatory authorities, consents and other approvals required of the other party to
carry out the transactions contemplated by this Agreement and (ii) shall cooperate with the other party to obtain all such approvals
and consents required of such party.

 

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ARTICLE
VI.

ADDITIONAL AGREEMENTS

 

6.1.         No
Solicitation.

 

(a)                      No
Solicitation or Negotiation.

 

(i)         
 Wilton shall not, nor shall Wilton authorize its directors, officers, employees, investment bankers, attorneys,
accountants and other advisors or representatives (such directors, officers, employees, investment bankers, attorneys,
accountants, other advisors and representatives, collectively, “Representatives”) to, directly or
indirectly solicit, initiate or knowingly take any action to facilitate or encourage the submission of any Acquisition
Proposal or the making of any proposal that could reasonably be expected to lead to any Acquisition Proposal, or, subject to Section
6.1(a)(ii), (i) conduct or engage in any discussions or negotiations with, disclose any non-public information relating
to Wilton to, afford access to the business, properties, assets, books or records of Wilton to, or knowingly assist,
participate in, facilitate or encourage any effort by, any third party that is seeking to make, or has made, any Acquisition
Proposal, (ii) (A) amend or grant any waiver or release under any standstill or similar agreement with respect to any class
of equity securities of Wilton or (B) approve any transaction under, or any third party becoming an "interested
stockholder" under Section 33-844 of the CBCA, or (iii) enter into any agreement in principle, letter of intent, term
sheet, acquisition agreement, merger agreement, option agreement, joint venture agreement, partnership agreement or other
contract, agreement, arrangement, instrument or understanding relating to any Acquisition Proposal (each, a "Wilton
Acquisition Agreement"). Subject to Section 6.1(a)(ii), neither Wilton Board nor any committee thereof shall
fail to make, withdraw, amend, modify or materially qualify, in a manner adverse to the Bank, Wilton Voting Proposal, or
recommend an Acquisition Proposal, or fail to recommend against acceptance of any tender offer or exchange offer for
Wilton Common Shares within ten (10) Business Days after the commencement of such offer, or make any public statement
inconsistent with Wilton Voting Proposal, or resolve or agree to take any of the foregoing actions (any of the foregoing, a
“Wilton Adverse Recommendation Change”).

  

(ii)       
  Notwithstanding Section 6.1(a)(i), prior to the approval of Wilton Voting Proposal at the meeting of
Wilton’s shareholders (the “Wilton Meeting”) to consider Wilton Voting Proposal, Wilton Board,
directly or indirectly through any Representative, may, subject to Section 6.1(a)(iii) (i) participate in negotiations
or discussions with any third party that has made (and not withdrawn) a bona fide, unsolicited Acquisition Proposal in
writing that Wilton Board believes in good faith, after consultation with outside legal counsel and its financial advisor,
constitutes or would reasonably be expected to result in a Superior Proposal, (ii) thereafter furnish to such third party
non-public information relating to Wilton pursuant to an executed confidentiality agreement not, in the aggregate, less
restrictive of the other party than the Confidentiality Agreement, and/or (iii) take any action that any court of competent
jurisdiction orders Wilton to take (which order remains unstayed), but in each case referred to in the foregoing clauses (i)
through (ii), only if Wilton Board determines in good faith, after consultation with outside legal counsel, that the
failure to take such action would reasonably be expected to cause Wilton Board to be in breach of its fiduciary duties under
applicable Law.

 

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(iii)   
     Wilton Board shall not take any of the actions referred to in clauses (i) through (iii) of Section
6.1(a)(ii) unless Wilton shall have first delivered to the Companies a prior written notice advising the Companies that
it intends to take such action. Wilton shall notify the Companies promptly (but in no event later than forty-eight (48)
hours) after it obtains knowledge of the receipt by Wilton (or any of its Representatives) of any Acquisition Proposal, any
inquiry that would reasonably be expected to lead to an Acquisition Proposal, any request for non-public information relating
to Wilton or for access to the business, properties, assets, books or records of Wilton by any third party. In such notice,
Wilton shall identify the third party making, and details of the material terms and conditions of, any such Acquisition
Proposal, indication or request. Wilton shall keep the Bank informed, on a current basis, of the status and material terms of
any such Acquisition Proposal, indication or request, including any material amendments or proposed amendments as to price
and other material terms thereof. Wilton shall provide the Bank with at least forty-eight (48) hours prior notice of any
meeting of Wilton Board (or such lesser notice as is provided to the members of Wilton Board) at which Wilton Board is
reasonably expected to consider any Acquisition Proposal. Wilton shall promptly provide the Bank with a list of any
non-public information concerning Wilton's business, present or future performance, financial condition or results of
operations, provided to any third party, and, to the extent such information has not been previously provided to the Bank,
copies of such information.

  

(b)          No
Change in Recommendation or Alternative Acquisition Agreement. Except as set forth in this Section 6.1, Wilton Board
shall not make any Wilton Adverse Recommendation Change or enter into a Wilton Acquisition Agreement. Notwithstanding anything
to the contrary set forth in the Agreement, Wilton Board may make a Wilton Adverse Recommendation Change or enter into a Wilton
Acquisition Agreement, if: (i) Wilton promptly notifies the Bank, in writing, at least three (3) Business Days (the "Notice
Period") before making a Wilton Adverse Recommendation Change or entering into a Wilton Acquisition Agreement, of its
intention to take such action with respect to a Superior Proposal, which notice shall state expressly that Wilton has received
an Acquisition Proposal that Wilton Board intends to declare a Superior Proposal and that Wilton Board intends to make a Wilton
Adverse Recommendation Change and/or Wilton intends to enter into a Wilton Acquisition Agreement; (ii) Wilton attaches to such
notice the most current version of the proposed agreement (which version shall be updated on a prompt basis) and the identity of
the third party making such Superior Proposal; (iii) Wilton shall, and shall use its reasonable best efforts to cause its Representatives
to, during the Notice Period, negotiate with the Bank in good faith to make such adjustments in the terms and conditions of this
Agreement so that such Acquisition Proposal ceases to constitute a Superior Proposal, if the Bank, in its discretion, proposes
to make such adjustments (it being agreed that in the event that, after commencement of the Notice Period, there is any material
revision to the terms of a Superior Proposal, including, any revision in price, the Notice Period shall be extended, if applicable,
to ensure that at least three (3) Business Days remains in the Notice Period subsequent to the time Wilton notifies the Bank of
any such material revision (it being understood that there may be multiple extensions)); and (iv) Wilton Board determines in good
faith, after consulting with outside legal counsel and its financial advisor, that such Acquisition Proposal continues to constitute
a Superior Proposal after taking into account any adjustments made by the Bank during the Notice Period in the terms and conditions
of this Agreement. For the avoidance of doubt, except as set forth in this paragraph, Wilton Board shall not make any Wilton Adverse
Recommendation Change or enter into a Wilton Acquisition Agreement.

 

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(c)          Break-Up
Fee.   In the event Wilton Board makes a Wilton Adverse Recommendation Change and accepts a Superior Proposal, Wilton shall be
required to pay to the Bank a fee in the amount of Two Hundred Fifty Thousand United States Dollars (US $250,000) (the “Break-Up
Fee”).

 

(d)          Cessation
of Ongoing Discussions.   Wilton shall, and shall direct its Representatives to, cease immediately all discussions and negotiations
that commenced prior to the date of this Agreement regarding any proposal that constitutes, or could reasonably be expected to
lead to, an Acquisition Proposal.

 

(e)                      Definitions.
  For purposes of this Agreement:

 

(i)          “Acquisition
Proposal” means any proposal or offer from, or indication of interest in making a proposal or offer by, any Person (other
than the Companies) relating to any (a) direct or indirect acquisition of assets of Wilton (but excluding sales of assets in the
Ordinary Course of Business) equal to fifteen percent (15%) or more of the fair market value of Wilton's consolidated assets or
to which fifteen percent (15%) or more of Wilton's net revenues or net income on a consolidated basis are attributable, (b) direct
or indirect acquisition of fifteen percent (15%) or more of the voting equity interests of Wilton, (c) tender offer or exchange
offer that if consummated would result in any Person beneficially owning (within the meaning of Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) fifteen percent (15%) or more of the voting equity interests
of Wilton, (d) merger, consolidation, other business combination or similar transaction involving Wilton , pursuant to which such
Person would own fifteen percent (15%) or more of the consolidated assets, net revenues or net income of Wilton, taken as a whole,
or (e) liquidation or dissolution (or the adoption of a plan of liquidation or dissolution) of Wilton or the declaration or
payment of an extraordinary dividend (whether in cash or other property) by Wilton.

 

(ii)         “Superior
Proposal” means a bona fide written Acquisition Proposal that Wilton Board determines in its good faith business judgment
(after consultation with outside legal counsel and its financial advisor) is more favorable to the holders of Wilton Common Stock
than the transactions contemplated by this Agreement, taking into account (a) all financial considerations, (b) the identity of
the third party making such Acquisition Proposal, (c) the anticipated timing, conditions (including any financing condition or
the reliability of any debt or equity funding commitments) and prospects for completion of such Acquisition Proposal, (d) the
other terms and conditions of such Acquisition Proposal and the implications thereof on Wilton, including relevant legal, regulatory
and other aspects of such Acquisition Proposal deemed relevant by Wilton Board and (e) any revisions to the terms of this Agreement
and the Merger proposed by the Bank during the Notice Period set forth in Section 6.1(b).

 

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6.2.         Access
to Information.

 

(a)          During
the Pre-Closing Period, the parties shall afford each other and each other’s officers, employees, accountants, counsel and
other representatives, reasonable access, upon reasonable notice, during normal business hours and in a manner that does not disrupt
or interfere with business operations, to such of their properties, books, contracts, commitments, personnel and records as the
requesting party shall reasonably request, and, during such period, each party shall furnish promptly to the other (a) a copy of
each report, schedule, registration statement and other document filed or received by the disclosing party during such period pursuant
to the requirements of federal or state securities laws, and (b) all other information concerning the disclosing party’s
business, properties, assets and personnel as the requesting party may reasonably request. In addition, during the Pre-Closing
Period, each party shall also provide the other party’s officers and employees reasonable access to its customers and suppliers,
provided that such access shall at all times be granted only if such access is scheduled in advance with the party providing such
access and only with the direct supervision or participation of one of such party’s officers, employees or Representatives
(who shall make all reasonable efforts to be available). The party receiving information pursuant to this Section 6.2 shall
hold all such information that is non-public in confidence in accordance with the Confidentiality Agreement. The parties shall
give due consideration to the application of the antitrust laws to any information to which each may gain access under this Section
6.2.

  

6.3.         Shareholders
Meeting; Proxy Statement.

 

(a)          Wilton,
acting through Wilton Board, shall take all actions in accordance with applicable Law, its Certificate of Incorporation and By-laws
necessary to promptly and duly call, give proper notice of, convene and hold as promptly as practicable Wilton Meeting for the
purpose of considering and voting upon Wilton Voting Proposal. As soon as practicable after execution of this Agreement, Wilton
shall prepare a proxy statement to solicit from its stockholders proxies in favor of Wilton Voting Proposal (the “Proxy Statement”).
Subject to Section 6.1, the Wilton Board shall recommend approval of Wilton Voting Proposal by the shareholders of Wilton
and include such recommendation in the materials delivered to its shareholders, and shall take other actions, that are both reasonable
and lawful, as it deems necessary or desirable to solicit from its stockholders proxies in favor of Wilton Voting Proposal. Notwithstanding
anything to the contrary contained in this Agreement, Wilton may adjourn or postpone Wilton meeting to the extent necessary to
ensure that any required supplement or amendment to the materials delivered to its shareholders (including the Proxy Statement)
is provided to Wilton’s shareholders or, if as of the time for which Wilton Meeting is originally scheduled there are insufficient
shares of Wilton Common Stock represented (either in person or by proxy) to constitute a quorum necessary to conduct the business
of Wilton Meeting.

 

(b)          Promptly
following Wilton Meeting, Wilton shall cause to be delivered to the Bank in writing results of the vote on Wilton Voting Proposal.

 

    	40

    	 

    

 

6.4.         Legal
Conditions to the Merger.

 

(a)          Subject
to the terms hereof, including Section 6.1 and Section 6.4(b), Wilton and the Bank shall each use their reasonable
best efforts to (i) take, or cause to be taken, all actions, and do, or cause to be done, and to assist and cooperate with the
other parties in doing, all things necessary, proper or advisable to consummate and make effective the transactions contemplated
hereby as promptly as practicable, (ii) as promptly as practicable, obtain from any Governmental Entity or any other third party
any consents, licenses, permits, waivers, approvals, authorizations, or orders required to be obtained or made by Wilton or the
Bank in connection with the authorization, execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby, (iii) as promptly as practicable, (A) make all necessary filings, and thereafter make any other required submissions, with
respect to this Agreement and the Merger, any related governmental request thereunder and any other applicable Law, and (iv) execute
or deliver any additional instruments necessary to consummate the transactions contemplated by, and to fully carry out the purposes
of, this Agreement. Wilton and the Bank shall cooperate with each other in connection with the making of all such filings, including
providing copies, (i.e., complete copies or non-confidential versions, as applicable), of all such documents to the
non-filing party, or if more appropriate, to its advisors prior to the submission of correspondence, filings or communications
to any Governmental Entity, and, if requested, accepting reasonable additions, deletions or changes suggested by the other party
in connection therewith. Wilton and the Bank shall each use its commercially reasonable efforts to furnish to each other, or, if
more appropriate, to their advisors, all information required for any application or other filing to be made pursuant to any applicable
Law (including all information required to be included in the Proxy Statement) in connection with the transactions contemplated
by this Agreement. For the avoidance of doubt, the Bank and Wilton agree that nothing contained in this Section 6.4(a) shall
modify or affect their respective rights and responsibilities under Section 6.4(b).

  

(b)          Each
of Wilton and the Bank shall give any notices to third parties, and use commercially reasonable efforts to obtain any third party
consents required in connection with the Merger that are (i) necessary to consummate the transactions contemplated hereby, (ii)
disclosed or required to be disclosed in Wilton Disclosure Schedule, or (iii) required to prevent the occurrence of an event that
is reasonably likely to have a Wilton Material Adverse Effect or a Bank Material Adverse Effect prior to or after the Effective
Time.

 

6.5.         Public
Disclosure.   BNC and the Bank and Wilton shall consult with each other before issuing any public disclosures or a press release
with respect to this Agreement or the transactions contemplated hereby and shall not issue any such press release or make any such
public statements without the prior consent of the other parties, which shall not be unreasonably withheld.

 

6.6.         Indemnification
of Wilton Directors and Officers.

 

(a)          From
the Effective Time through the sixth anniversary of the date on which the Effective Time occurs, the Bank and the Surviving Corporation
shall jointly and severally indemnify and hold harmless each person who is now, or has been at any time prior to the date hereof,
or who becomes prior to the Effective Time, a director or officer of Wilton (the “Wilton Indemnified Parties”),
against all claims, losses, liabilities, damages, judgments, fines and reasonable fees, costs and expenses, including reasonable
attorneys’ fees and disbursements, incurred in connection with any claim, action, suit, proceeding or investigation, whether
civil, criminal, administrative or investigative, arising out of or pertaining to the fact that Wilton Indemnified Party is or
was an officer or director of Wilton, whether asserted or claimed prior to, at or after the Effective Time, to the fullest extent
provided under the BLC or Wilton’s current Certificate of Incorporation, By-laws or agreements with those persons. Each Wilton
Indemnified Party shall be entitled, subject to applicable Law, to advancement of expenses incurred in the defense of any such
claim, action, suit, proceeding or investigation from the Surviving Corporation within ten (10) Business Days of receipt by the
Surviving Corporation from Wilton Indemnified Party of a request therefor; in all cases subject to the Surviving Corporation’s
receipt of an undertaking by such Wilton Indemnified Party to repay such expenses and fees paid in advance if it is ultimately
determined in a final non-appealable judgment of a court of competent jurisdiction that such Wilton Indemnified Party is not entitled
to be indemnified under applicable Law. In addition, the Surviving Corporation shall not be liable for any settlement effected
without its prior written consent (which such consent shall not be unreasonably withheld or delayed).

 

    	41

    	 

    

 

(b)          On
or before the Closing, the Surviving Corporation shall, at the Surviving Corporation’s sole cost and expense and at no expense
to the beneficiaries, obtain and shall thereafter maintain in effect for six years from the Effective Time directors’ and
officers’ liability insurance with respect to matters existing or occurring at or prior to the Effective Time (including
the transactions contemplated by this Agreement and the Exchange Agent Agreement); provided that the insurance policies obtained
by the Surviving Corporation shall provide for at least the same coverage and amounts and containing terms and conditions no less
advantageous to Wilton Indemnified Parties when compared to the insurance policies maintained by Wilton on the date hereof. Wilton
or the Bank may also satisfy the obligations of the Bank under this Section 6.6(b) by purchasing “tail” insurance
policies with a claims period of six (6) years from the Effective Time with at least the same coverage and amounts and containing
terms and conditions that were not less advantageous to Wilton Indemnified Parties with respect to claims arising out of or relating
to events which occurred before or at the Effective Time.

  

(c)          The
Surviving Corporation shall pay all expenses, including attorneys’ reasonable fees and costs, that may be incurred by the
persons referenced in this Section 6.6 in connection with their enforcement of their rights provided in this Section
6.6.

 

(d)          The
provisions of this Section 6.6 are intended to be in addition to the rights otherwise available to the current officers
and directors of Wilton by Law, charter, statute, by-law or agreement, and shall operate for the benefit of, and shall be enforceable
by, each of Wilton Indemnified Parties, their heirs and their representatives.

 

6.7.         Notification
of Certain Matters.

 

(a)          During
the Pre-Closing Period, the Bank shall give prompt written notice to Wilton, and Wilton shall give prompt written notice to the
Bank, of: (i) the occurrence, or failure to occur, of any factor or event, which occurrence or failure to occur is reasonably likely
to cause (A) any representation or warranty of such party contained in this Agreement to be untrue or inaccurate in any material
respect, in each case at any time from and after the date of this Agreement until the Effective Time, or (B) any covenant, condition
or agreement of such party not to be satisfied in any material respect; (ii) any material failure of the Bank or Wilton, as the
case may be, or of any officer, director, employee or agent thereof, to comply with or satisfy any covenant, condition or agreement
to be complied with or satisfied by it under this Agreement or (iii) the occurrence of any change, condition or event that has
had or is reasonably likely to have a Wilton Material Adverse Effect or a Bank Material Adverse Effect, as applicable. Notwithstanding
the above, the delivery of any notice pursuant to this Section shall not effect (x) the representations and warranties of the Bank
or Wilton, as the case may be, or the right of the party receiving such notice to rely on such representations and warranties (as
unmodified by such notice), and (y) will not limit or otherwise affect the remedies available hereunder to the party receiving
such notice or the conditions to such party’s obligation to consummate the Merger.

 

    	42

    	 

    

 

(b)          Wilton
shall supplement the information set forth on the Wilton Disclosure Schedule, as applicable, with respect to any matter now existing
or hereafter arising that, if existing or occurring at or prior to the date of this Agreement, would have been required to be set
forth or described in the Wilton Disclosure Schedule or that is necessary to correct any information in the or Wilton Disclosure
Schedule or in any representation or warranty of BNC, the Bank, or Wilton, as applicable which has been rendered inaccurate thereby
promptly following discovery thereof. No such supplement shall be deemed to cure any breach of any representation or warranty made
in this Agreement, have any effect for purposes of determining the satisfaction of the conditions set forth in Article VII,
or have any effect for the purpose of determining the compliance by either party with any covenant set forth herein.

 

6.8.         Shareholder
Litigation.   Each of Wilton and the Bank shall keep the other reasonably informed of any shareholder litigation or claim pending
against Wilton or the Bank, as applicable, and its directors or officers, relating to the Merger or the other transactions contemplated
by this Agreement; provided, however, that all obligations of Wilton and the Bank in this Section 6.8 shall
be subject to the ability of such party under applicable Laws to preserve attorney-client communication and privilege.

  

6.9.         Board
of Directors and Loan Committee of Wilton.   The Bank shall receive at least three days advance written notice of each meeting
of the Board of Directors and Loan Committee of Wilton to be held after the date hereof. The Bank shall, at its option, have the
right to send one representative to each such meeting, provided that the Bank’s representative shall not have the right to
be present during discussions related to this Agreement. The Bank shall also receive copies of all written materials distributed
in advance of, or at, each such meeting, except those portions related to this Agreement. The foregoing shall be subject to regulatory
approval and restrictions. The Confidentiality Agreement shall apply to any and all information obtained by the Bank or BNC pursuant
to this Section 6.9.

 

6.10.       Financial
Statements.   As soon as available and in any event within ten (10) Business Days after the end of each month prior to the Closing
Date, Wilton shall deliver to the Bank such of its balance sheets and statements of operations with respect to Wilton as are internally
prepared by it in the Ordinary Course of Business.

 

6.11.       Liens.
  Wilton shall obtain releases of all Liens on the assets of Wilton or the Shares (other than those set forth on Schedule 6.11
hereto).

 

6.12.       Employees
of Wilton.   The Bank expects to retain most of the existing branch employees of Wilton and other employees who have primary
responsibility for customer relationships, and will provide them with benefits substantially similar to those offered to Bank employees.
Each employee of Wilton hired by the Bank shall be credited with service as a Wilton employee for purposes of determining his or
her status under the Bank’s policies only with respect to vacation, sick and other leave. Accordingly, (i) the Bank will
maintain Wilton’s branch location for at least five years; (ii) the Bank will attempt to offer dislocated Wilton employees
an opportunity to interview for open positions elsewhere within the Bank organization and attempt to assimilate as many of these
employees into positions at the Bank as possible, and (iii) full-time employees of Wilton who are not offered continued employment
with the Bank and are not already covered by an existing severance and change of control package will receive severance benefits
equal to two weeks of severance for each year worked, up to a maximum of 26 weeks.

 

    	43

    	 

    

 

6.13.       No
Survival of Representations and Warranties.     The representations and warranties of the parties set forth in Article III
and Article IV hereof shall not survive the Closing and shall be of no further force and effect following the Closing.

 

ARTICLE
VII.

CONDITIONS TO MERGER

 

7.1.         Conditions
to Each Party’s Obligation To Effect the Merger.   The respective obligations of each party to this Agreement to effect
the Merger shall be subject to the satisfaction on or prior to the Closing Date, of the following conditions, any of which may,
to the extent permitted by applicable Law, be waived in writing by any party in its sole discretion (provided that such waiver
shall only be effective as to the obligations of such party):

  

(a)          Shareholder
Approval.   Wilton Voting Proposal shall have been approved at Wilton Meeting, at which a quorum is present, by the number of
shares of Wilton Common Stock necessary to comply with the requirements of the BLC and Wilton’s Certificate of Incorporation
(the “Required Wilton Shareholder Vote”); and Wilton shall have caused the certified vote tabulation(s) required
by Section 6.3(b) of this Agreement to be delivered to the Bank.

 

(b)          Governmental
Approvals.   Other than the filing of the Bank Merger Agreement, all authorizations, consents, orders or approvals of, or declarations
or filings with, or expirations of waiting periods imposed by, any Governmental Entity in connection with the Merger and the consummation
of the other transactions contemplated by this Agreement, shall have been filed, been obtained or occurred on terms and conditions
that would not reasonably be likely to have a Bank Material Adverse Effect or a Wilton Material Adverse Effect and at the Effective
Time, the FDIC Consent Order dated July 22, 2010 (the “Consent Order”) and the elevated supervisory requirements
and capital levels under which Wilton is operating prior to the Effective Time shall not apply to the Bank or BNC and shall not
be binding on the Surviving Corporation.

 

(c)          No
Injunctions.   No Governmental Entity of competent jurisdiction shall have obtained, enacted, issued, promulgated, enforced or
entered any law, order, executive order, stay, decree, judgment or injunction (whether preliminary, temporary or permanent) or
statute, rule or regulation that is in effect and that has the effect of making the Merger illegal or otherwise prohibiting consummation
of the Merger or the other transactions contemplated by this Agreement.

 

7.2.         Additional
Conditions to Obligations of BNC and the Bank.   The obligations of BNC and the Bank to effect the Merger shall be subject to
the satisfaction on or prior to the Closing Date of each of the following additional conditions, any of which may be waived, in
writing, exclusively by BNC and the Bank:

 

(a)          Representations
and Warranties.   The representations and warranties of Wilton set forth in this Agreement, and any schedule or any certificate
delivered pursuant hereto, shall have been true, complete and accurate in all material respects when made and shall be repeated
at the Closing and (a) if qualified by materiality (or any variation of such term), shall be true, complete and accurate as of
the Closing Date, except that any such representation or warranty that is made as of a specified date shall only be required to
be, in all material respects, true, complete and accurate as of that date, and (b) if not qualified by materiality (or any variation
of such term), shall be true, complete and accurate in all material respects as of the Closing Date, except that any such representation
or warranty that is made as of a specified date shall only be required to be true, complete and accurate in all material respects
as of that date.

 

    	44

    	 

    

 

(b)          Performance
of Obligations of Wilton.   Wilton shall have performed all obligations required to be performed by it under this Agreement on
or prior to the Closing Date.

 

(c)          No
Material Adverse Effect.   On or prior to the Closing Date, there shall have been no occurrence (including, without limitation,
a breach of the representations and warranties or covenants of Wilton contained in this Agreement (including the schedules hereto)
that has resulted in or is reasonably likely to result in a Wilton Material Adverse Effect or in the Bank Material Adverse Effect.

  

(d)          Wilton
Certificate.   The Bank shall have received a favorable certificate, dated the as of the Effective Time, signed by chief executive
officer or the chief financial officer of Wilton as to the matters set forth in Sections 7.2(a), 7.2(b) and 7.2(c),
which certificate shall also certify (x) the incumbency and genuineness of signatures of all officers of Wilton executing this
Agreement or any other Transaction Document, (y) the truth and correctness of corporate resolutions authorizing the entry by Wilton
into this Agreement and the transactions contemplated hereby and (z) the truth, correctness and completeness of the organizational
documents of Wilton.

 

(e)          Consents
and Approvals.   All third party consents with respect to the consummation of the transactions contemplated by this Agreement
set forth on Exhibit C shall have been received and shall be reasonably satisfactory in form and substance to the Bank in
its sole discretion.

 

(f)          No
Litigation.   No preliminary or permanent injunction or other order shall have been issued by any Governmental Entity, nor any
statute, rule, regulation, decree or executive order promulgated or enacted by any Governmental Entity, that (a) declares this
Agreement invalid or unenforceable in any material respect, (b) prevents or significantly delays the consummation of the transactions
contemplated hereby, or (c) that impose or will impose restrictions on BNC, the Bank or any of their Affiliates to sell, to hold
separate or otherwise dispose of any material assets, or to materially alter the conduct or operations, or to materially restrict,
or otherwise change in any material respect, the assets or business of BNC, the Bank, or any of their Affiliates (including without
limitation Wilton from and after the Effective Time); and (d) no action or proceeding before any Governmental Entity shall have
been instituted by any Governmental Entity, or by any other Person (other than an Affiliate of the Bank), which (i) seeks to prevent
or delay the consummation of the transactions contemplated by this Agreement, (ii) challenges the validity or enforceability of
this Agreement, (iii) seeks to impose restrictions on BNC, the Bank or any of their Affiliates to sell, to hold separate or otherwise
dispose of any material assets, or to materially alter the conduct or operations, or to materially restrict, or otherwise change
in any material respect, the assets or business of BNC, the Bank or any of their Affiliates (including without limitation Wilton
from and after the Effective Time).

 

    	45

    	 

    

 

(g)          Resignations.
  The Bank shall have received letters of resignation from (i) the directors of Wilton, and (ii) Charlie Howell, as an officer.

 

(h)          Non-USRPHC
Certificate.   Wilton has provided the Bank (i) a statement pursuant to Treasury Regulations Sections 1.897-2(h)(1) and 1.1445-2(c)(3)
certifying that as of the Closing Date an interest in Wilton does not constitute a U.S. real property interest (as that term is
defined in Section 897(c) of the Code) and (ii) proof, reasonably satisfactory to the Bank, that the notice provisions of Treasury
Regulations Section 1.897-2(h)(2) have been satisfied.

 

(i)      
    Lien Releases.   Wilton shall have obtained Form UCC-3 termination statements or other
appropriate releases in form and substance acceptable to the Bank (the “Lien Releases”) with respect to
each Lien on any assets of Wilton other than Permitted Liens.

  

(j)        
  Waiver and Release Letters from Directors and Officers.   Wilton shall have obtained, effective as of the
Closing Date, waiver and release letters from all officers and directors of Wilton forever releasing and discharging Wilton
from any and all claims of such officer or director against any of Wilton for liabilities or obligations of Wilton to such
officer or director as a result of such officer or director having been an officer or director of Wilton or as a result of
acts or omissions of any of Wilton during the period prior to Effective Time.

 

(k)          Exchange
Agent Agreement.   Other than the Bank and BNC, all parties to the Exchange Agent Agreement shall have entered into such agreement
and there shall have been no notice that any such other parties do not intend to honor such agreement.

 

(l)     
     Certificate of Good Standing.   The Bank shall have received a certificate of corporate
good standing or legal existence of Wilton as of a recent date.

 

(m)         Transaction
Documents.   Wilton shall have entered into each of the other Transaction Documents to which it is a party.

 

(n)          Other
Closing Matters.   The Bank shall have received such other supporting information in confirmation of the representations, warranties,
covenants and agreements of Wilton and the satisfaction of the conditions to the Bank’s obligation to close hereunder as
the Bank or its counsel may reasonably request.

 

7.3.         Additional
Conditions to Obligations of Wilton.   The obligation of Wilton to effect the Merger shall be subject to the satisfaction on
or prior to the Closing Date of each of the following additional conditions, either of which may be waived, in writing, exclusively
by Wilton:

 

(a)          Representations
and Warranties.   Each and every representation and warranty of BNC and the Bank contained in this Agreement, and any schedule
or any certificate delivered pursuant hereto, shall have been true, complete and accurate when made and shall be repeated at the
Closing Date and (a) if qualified by materiality (or any variation of such term), shall be true, complete and accurate as of the
Closing Date, except that any such representation or warranty that is made as of a specified date shall only be required to be
true, complete and accurate as of that date, and (b) if not qualified by materiality (or any variation of such term), shall be
true, complete and accurate in all material respects as of the Effective Time, except that any such representation or warranty
that is made as of a specified date shall only be required to be true, complete and accurate in all material respects as of that
date.

 

    	46

    	 

    

 

(b)          Performance
of Obligations of the Bank.   The Bank shall have performed in all material respects all obligations required to be performed
by them under this Agreement on or prior to the Closing Date; and Wilton shall have received a certificate signed on behalf of
the Bank by the chief executive officer or the chief financial officer of the Bank to such effect.

 

(c)          Bank
Certificate.   Wilton shall have received a favorable certificate, dated the as of the Effective Time, signed by the chief executive
officer or the chief financial officer of the Bank as to the matters set forth in Section 7.3(a), which certificate shall
also certify (x) the incumbency and genuineness of signatures of all officers of the Bank executing this Agreement or any other
Transaction Document, (y) the truth and correctness of corporate resolutions authorizing the entry by the Bank into this Agreement
and the transactions contemplated hereby and (z) the truth, correctness and completeness of the organizational documents of the
Bank.

  

(d)          Certificates
of Good Standing.   Wilton shall have received certificates of corporate good standing or legal existence of the Bank as of a
recent date.

 

(e)          Exchange
Agent Agreement.   Other than Wilton, all parties to the Exchange Agent Agreement shall have entered into such agreement and
there shall have been no notice that any such other parties do not intend to honor such agreement.

 

(f)    
     Funding of Exchange Account.   The Bank shall have delivered or caused to be delivered the
Merger Consideration to the Exchange Agent.

 

(g)          BNC
Advisory Board.   Within a reasonable time of Closing, BNC shall establish an advisory board to (i) promote continuity and maintain
the positive legacy that Wilton has established in the Wilton community, and (ii) determine and oversee the legacy charitable endeavors
of the Company in an amount in 2013 not less than the amount contributed by Wilton in 2012.

 

ARTICLE
VIII.

TERMINATION AND AMENDMENT

 

8.1.         Termination.
  This Agreement may be terminated at any time prior to the Effective Time (with respect to Sections 8.1(b) through 8.1(h),
by written notice by the terminating party to the other party), whether before or, subject to the terms hereof; after the receipt
of Wilton Shareholder Approval:

 

(a)          by
mutual written consent of the BNC, the Bank and Wilton;

 

(b)          by
either the Bank or Wilton if the Merger shall not have been consummated by February 28, 2014 (the “Outside Date”)
(provided that the right to terminate this Agreement under this Section 8.1(b) shall not be available to any party whose
failure to fulfill any obligation under this Agreement has been the cause of or resulted in the failure of the Merger to occur
on or before the Outside Date);

 

    	47

    	 

    

 

(c)          by
either the Bank or Wilton if a Governmental Entity of competent jurisdiction shall have issued a nonappealable final order, decree
or ruling or taken any other nonappealable final action, in each case having the effect of permanently restraining, enjoining or
otherwise prohibiting the Merger;

 

(d)          by
either the Bank or Wilton if at Wilton Meeting at which a vote on Wilton Voting Proposal is taken, the Required Wilton Shareholder
Vote in favor of Wilton Voting Proposal shall not have been obtained;

  

(e)          by
the Bank, if, prior to the approval of Wilton Voting Proposal by the shareholders of Wilton at Wilton Meeting: (i) a Wilton Adverse
Recommendation Change shall have occurred, (ii) Wilton shall have entered into, or publicly announced its intention to enter into,
a Wilton Acquisition Agreement (other than a confidentiality agreement), (iii) Wilton shall have breached or failed to perform
in any material respect any of the covenants and agreements set forth in Section 6.1, or (iv) Wilton Board fails to reaffirm
(publicly, if so requested by the Bank) Wilton Voting Proposal within ten (10) Business Days after the date any Acquisition Proposal
(or material modification thereto) is first publicly disclosed by Wilton or the Person making such Acquisition Proposal; or

 

(f)    
     by Wilton, if, prior to the approval of Wilton Voting Proposal by the shareholders of
Wilton at Wilton Meeting, Wilton Board authorizes Wilton, in full compliance with the terms of this Agreement, including Section
6.1(a)(ii) hereof, to enter into a Wilton Acquisition Agreement (other than a confidentiality agreement) in respect of a
Superior Proposal; provided that Wilton shall have paid any amounts due pursuant to Section 6.1(c) hereof in
accordance with the terms, and at the times, specified therein; or

 

(g)          by
the Bank, if there has been a material breach of any representation or warranty, or any failure to perform any covenant or agreement
on the part of Wilton set forth in this Agreement, which breach or failure to perform (i) would cause the conditions set forth
in Section 7.2 not to be satisfied, and (ii) shall not have been cured within twenty (20) days following receipt by Wilton
of written notice of such breach or failure to perform from the Bank; or

 

(h)          by
Wilton, if there has been a material breach of any representation or warranty, or any failure to perform any covenant or agreement
on the part of the Bank set forth in this Agreement, which breach or failure to perform (i) would cause the conditions set forth
in Section 7.3 not to be satisfied, and (ii) shall not have been cured within twenty (20) days following receipt by the
Bank of written notice of such breach or failure to perform from Wilton.

 

8.2.         Effect
of Termination.   In the event of termination of this Agreement as provided
in Section 8.1, this Agreement shall immediately become void and there shall be no liability or obligation on the part of
BNC, the Bank or Wilton, or their respective officers, directors, shareholders or Affiliates; provided that (a) any such termination
shall not relieve any party from liability for any willful breach of this Agreement, (b) a termination by Wilton under Section
8.1(f) shall not relieve Wilton of its obligation under Section 6.1(c), and (c) the provisions of Sections 5.3
(Confidentiality) and 8.3 (Certain Taxes; Fees and Expenses), this Section 8.2 (Effect of Termination) and Article
IX (Miscellaneous) of this Agreement and the Confidentiality Agreement shall remain in full force and effect and survive any
termination of this Agreement.

 

    	48

    	 

    

 

8.3.         Amendment.
  This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties hereto.

  

8.4.         Extension;
Waiver.  At any time prior to the Effective Time, the parties hereto, may, (a) by action taken or authorized by Wilton Board
and approved by the Bank, extend the time for the performance of any of the obligations or other acts of the other parties hereto,
(b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto
and (c) waive compliance with any of the agreements or conditions contained herein. Any agreement on the part of a party hereto
to any such extension or waiver shall be valid only if set forth in a written instrument signed on behalf of such party. Such extension
or waiver shall not be deemed to apply to any time for performance, inaccuracy in any representation or warranty, or noncompliance
with any agreement or condition, as the case may be, other than that which is specified in the extension or waiver. The failure
of any party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such
rights, nor shall any single or partial exercise any such right, or any abandonment or discontinuance of steps to enforce such
right, or any course of conduct, preclude any other or further exercise thereof or the exercise of any other right. The rights
and remedies of the parties hereunder are cumulative and are not exclusive of any rights or remedies which they would otherwise
have hereunder.

 

ARTICLE
IX.

MISCELLANEOUS

 

9.1.         Notices.
  All notices and other communications hereunder shall be in writing and shall be deemed duly delivered (a) one (1) Business Day
after being sent for next Business Day delivery, fees prepaid, via a reputable nationwide overnight courier service, or (b) on
the date of confirmation of receipt of transmission by facsimile or other electronic means (or, the first Business Day following
such receipt if the date of such receipt is not a Business Day), in each case to the intended recipient as set forth below:

 

(a)                      if
to BNC or the Bank, to

 

BNC Financial Group, Inc.

220 Elm Street

New Canaan, CT 06840

Attn: Peyton R. Patterson,

President and Chief Executive Officer

 

with a copy (which shall
not constitute notice) to:

 

Richard A. Krantz, Esq.

Robinson & Cole LLP

1055 Washington Boulevard

Stamford, CT 06901-2249

Fax: (203) 462-7599

e-mail: rkrantz@rc.com

 

    	49

    	 

    

 

(b)                     if
to Wilton, to

 

The Wilton Bank

47 Old Ridgefield Road

Wilton, Ct. 06897

Attn: Charles F. Howell,

  President and Chief Executive Officer

  

with a copy (which shall
not constitute notice) to:

 

William W. Bouton III

Hinckley Allen

20 Church Street

Hartford, CT. 06103-1221

Fax: (860) 331-2627

e-mail: wbouton@hinckleyallen.com

 

Any party to this Agreement may
give any notice or other communication hereunder using any other means (including personal delivery, messenger service, telex,
ordinary mail or electronic mail), but no such notice or other communication shall be deemed to have been duly given unless and
until it actually is received by the party for whom it is intended. Any party to this Agreement may change the address to which
notices and other communications hereunder are to be delivered by giving the other parties to this Agreement notice in the manner
herein set forth.

 

9.2.         Entire
Agreement.   This Agreement (including the Schedules and Exhibits hereto
and the documents and instruments referred to herein that are to be delivered at the Closing) constitutes the entire agreement
among the parties to this Agreement and supersedes any prior understandings, agreements or representations by or among the parties
hereto, or any of them, written or oral, with respect to the subject matter hereof, including, but not limited to, that certain
letter dated April __, 2013, from BNC to Wilton, indicating interest in a merger transaction; provided that the Confidentiality
Agreement shall remain in effect in accordance with its terms.

 

9.3.         No
Third Party Beneficiaries.   Except as provided in Section 6.6
with respect to Wilton Indemnified Parties, which shall be third party beneficiaries of the provisions set forth in Section
6.6, nothing in this Agreement is intended, and shall not be deemed, to confer any rights or remedies upon any Person other
than the parties hereto and their respective successors and permitted assigns, to create any agreement of employment with any person
or to otherwise create any third-party beneficiary hereto.

 

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9.4.         Assignment.
  Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or delegated, in whole
or in part, by operation of law or otherwise by any of the parties hereto without the prior written consent of the other parties,
and any such assignment without such prior written consent shall be null and void. Subject to the preceding sentence, this Agreement
shall be binding upon, inure to the benefit of, and be enforceable by, the parties hereto and their respective successors and permitted
assigns.

  

9.5.         Severability.
  Whenever possible, each term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction
shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability
of the offending term or provision in any other situation or in any other jurisdiction. If the final judgment of a court of competent
jurisdiction declares that any term or provision hereof is invalid or unenforceable, the parties hereto agree that the court making
such determination shall have the power to limit the term or provision, to delete specific words or phrases, or to replace any
invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing
the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified. In the
event such court does not exercise the power granted to it in the prior sentence, the parties hereto agree to replace such invalid
or unenforceable term or provision with a valid and enforceable term or provision that will achieve, to the extent possible, the
economic, business and other purposes of such invalid or unenforceable term.

 

9.6.         Counterparts
and Signature.   This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original but all of which together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each of the parties hereto and delivered to the other parties, it being understood
that all parties need not sign the same counterpart. This Agreement may be executed and delivered by electronic .pdf delivery or
facsimile transmission.

 

9.7.         Interpretation.
  When reference is made in this Agreement to an Article or a Section, such reference shall be to an Article or Section of this Agreement,
unless otherwise indicated. The table of contents, table of defined terms and headings contained in this Agreement are for convenience
of reference only and shall not affect in any way the meaning or interpretation of this Agreement. The language used in this Agreement
shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction
shall be applied against any party. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding
masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa. Any
reference to any federal, state, local or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated
thereunder, unless the context requires otherwise. The terms “material,” “materially” or “materiality”
as used in this Agreement with an initial lower case “m” are agreed to have their respective customary and ordinary
meanings, without regard to the meanings ascribed to Wilton Material Adverse Effect in Section 3.1 or the Bank Material
Adverse Effect in Section 4.1. Whenever the words “include,” “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” No summary of this
Agreement prepared by any party shall affect the meaning or interpretation of this Agreement.

 

9.8.         Governing
Law.   This Agreement, and all disputes or controversies arising out of or relating to this Agreement or the transactions contemplated
hereby, shall be governed by, and construed in accordance with, the laws of the State of Connecticut, without regard to the laws
of any other jurisdiction that might be applied because of the conflicts of laws principles of the State of Connecticut.

 

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9.9.         Remedies.
  Except as otherwise provided herein, any and all remedies herein expressly conferred upon a party will be deemed cumulative with
and not exclusive of any other remedy conferred hereby, or by law or equity upon such party, and the exercise by a party of any
one remedy will not preclude the exercise of any other remedy. The parties hereto agree that irreparable damage would occur in
the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this
Agreement and to enforce specifically the terms and provisions of this Agreement, this being in addition to any other remedy to
which they are entitled at law or in equity.

  

9.10.       Submission
to Jurisdiction.   In the event of any controversy or claim arising out of or relating to this Agreement or the breach or alleged
breach hereof, each of the parties hereto irrevocably (a) submits to the non-exclusive jurisdiction of the United States District
Court for the District of Connecticut, or if such court does not have jurisdiction, the appropriate State Court of the State of
Connecticut, (b) waives any objection which it may have at any time to the laying of venue of any action or proceeding brought
in any such court and (c) waives any claim that such action or proceeding has been brought in an inconvenient forum.

 

9.11.       WAIVER
OF JURY TRIAL.   EACH OF BNC, THE BANK AND WILTON HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER TRANSACTION
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY OR THE ACTIONS OF BNC, THE BANK AND WILTON IN THE NEGOTIATION, ADMINISTRATION,
PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT.

 

9.12.       Disclosure
Schedule.   The Wilton Disclosure Schedule shall be arranged in Sections corresponding to the numbered Sections contained in
Article III, and the disclosure in any Section shall qualify (a) the corresponding Section in Article III, and (b)
the other Sections in Article III to the extent that the disclosures therein specifically reference such other Sections.
The inclusion of any information in Wilton Disclosure Schedule shall not be deemed to be an admission or acknowledgment, in and
of itself, that such information is required by the terms hereof to be disclosed, is material, has resulted in or would result
in a Wilton Material Adverse Effect or the Bank Material Adverse Effect, or is outside the Ordinary Course of Business.

 

[next page is the signature page]

 

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IN WITNESS WHEREOF, BNC, the Bank
and Wilton have caused this Agreement and Plan of Merger to be signed by their respective officers thereunto duly authorized as
of the date first written above.

 

	 	BNC:
	 	 
	 	BNC FINANCIAL GROUP, INC.
	 	 
	 	By:	/s/ Peyton R. Patterson
	 	 	Peyton R. Patterson, President
	 	 	and Chief Executive Officer
	 	 
	 	BANK:
	 	 
	 	THE BANK OF NEW CANAAN
	 	 
	 	By:	/s/ Peyton R. Patterson
	 	 	Peyton R. Patterson
	 	 	Chief Executive Officer
	 	 
	 	WILTON:
	 	 
	 	The WILTON BANK
	 	 
	 	By:	/s/ Charles F. Howell
	 	 	Charles F. Howell
	 	 	President and Chief Executive Officer

 

    	53

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