Document:

Exhibit 10.17

 

AUM Loan Contract of China Construction Bank

 

Contract No.: 650291016-0091-20216323491

Borrower (Party A): Xinjiang Hemujia Trading
Co., Ltd

Address: No. 26, Wenhua Road, Tianshan District,
Urumqi City, Xinjiang Uygur Autonomous Region

Postcode: 830000

Legal representative (principal): Wang Baolin

Fax: 2333223 Tel.: 2333223

 

Name of the co-borrower: Xiong Ying

Address: Urumqi City, Xinjiang District

Postcode: 830002

Certificate name and No.: Resident ID card
/[*]

Tel.: [*]

 

Lender (Party B): Renmin Road Sub-branch in
Urumqi City, China Construction Bank Corporation

Address: No. 183, Renmin Road, Tianshan District,
Urumqi City

Postcode: 830002

Principal: Ma Qiumei

Fax: [*] Tel.: [*]

 

     

     

    

 

Party A and Party B hereby have reached an
agreement through consultation to conclude this Contract for mutual compliance in accordance with relevant law and regulations

 

Article 1 Borrowing limit 

 

The loan provided by Party B to Party A is
(in words) TWO MILLION TWO HUNDRED AND SEVENTY SEVEN THOUSAND ONLY.

 

The borrowing limit herein refers to the limit
of the principal balance of the working capital loan provided by Party B to Party A during the validity period of the amount agreed in
this Contract. During the validity period of the limit, Party A can recycle the borrowing limit. As long as Party A can continuously
apply for loan regardless of times and the amount of each loan as long as the outstanding balance of the loan principal hereunder does
not exceed the borrowing limit, but the sum of the loan amount applied by Party A and the outstanding balance of the loan principal hereunder
shall not exceed the borrowing limit.

 

Article 2 Borrowing purpose and source of
repayment 

 

Party A shall apply the loans to the turnover
of daily production and business.

 

The repayment source of the loan hereunder
shall be the recoup funds from production and operation.

 

Article 3 Validity period of borrowing limit

 

The validity period of the borrowing limit
hereunder is from September 22, 2020 to September 22, 2021 (hereinafter referred to as “the validity period of the loan limit”).
Party A shall pay off the single loan incurred during the validity period of the quota no later than the expiration date of the validity
period of the quota.

 

The unused borrowing limit will be automatically
invalid when the validity of borrowing limit terminates.

 

The term “single loan” refers to
the period from the withdrawal date to the agreed repayment date.

 

The term “loan disbursement” refers
to that Party B issues the amount of loan to the loan origination account according to Party A’s application and provisions hereof.

 

    2 

     

    

 

Article 4 The use of borrowing limit 

 

I. Party A can apply for loan one by one according
to the requirements within the validity period of credit line and borrowing limit, both parties shall conduct corresponding formalities.

 

II. If the guarantor fulfills the guarantee
obligation in accordance with the guarantee Contract, Party B shall deduct the borrowing limit principal based on the principal amount
of the guarantee obligation already performed by the guarantor.

 

III. The amount of loan applied by Party A
each time shall not be less than 00,000 yuan, and the time limit shall not be less than 0 days or longer than 12 months.

 

Article 5 Loan interest rate, penalty interest
rate, interest accrual and interest settlement 

 

I. Loan interest rate

 

The loan interest rate hereunder shall be implemented
at 4.2525%, that is, LPR interest rate plus (optionally “plus” or “minus”) 40.25 basis points (1 basis point = 0.01%,
precise to 0.01 basis points), which shall remain unchanged during the loan term.

 

II. Penalty interest rate

 

If Party A fails to use the loan in accordance
with the Contract, the penalty interest rate shall be 100% higher than the loan interest rate. And the overdue penalty interest rate
shall be 50% higher than the loan interest rate. In the case of overdue and misappropriated loans at the same time, the penalty interest
and compound interest shall be calculated and charged according to the more seriously.

 

III. The value date mentioned here refers to
the date on which a single loan is transferred to the loan origination account set forth in Article 7 hereof (hereinafter referred to
as the “loan origination account”). The LPR interest rate hereunder refers to the one-year loan market quoted rate of the National
Inter-bank Lending Center on one working day before the effective date of this Contract.

 

IV. The loan interest should be calculated
since the date on which the loan is transferred to the loan origination account. Daily interest accrual is used here, daily interest
rate = annual interest rate / 360. If Party A fails to pay the interest on the settlement date as stipulated hereby, compound interest
shall be charged from the next day.

 

V. Settlement

 

The interest of the loan hereunder is settled
monthly, and the settlement date is fixed on the 20th day of each month.

 

    3 

     

    

 

Article 6 Origination and payment of loans

 

I. Preconditions for loans origination

 

Unless Party B waives in whole or in part,
Party B is obligated to issue loans only if all the following preconditions are continuously met:

 

1. Party A has completed the approval, registration,
delivery, insurance and other legal procedures related to the loan hereunder;

 

2. If the Contract is guaranteed, the guarantee
that meets the requirements of Party B shall be effective and continues to be effective;

 

3. Party A has opened an account for withdrawal
and repayment as required by Party B;

 

4. Party B has received the application for
borrowing from Party A, and has reviewed and approved it;

 

5. Party A has not incurred any events of default
stipulated herein;

 

6. Any circumstances that may endanger Party
B’s obligatory right stipulated herein have not happened;

 

7. Laws and regulations, and the entitled divisions
shall not prohibit or refrain Party B from issuing a loan hereunder;

 

8. Party A’s financial indicators continue
to meet the relevant requirements of Party B for granting loans;

 

9. Party A has submitted relevant materials
before loan issuance in accordance with this Contract;

 

10. The information provided by Party A to
Party B is legal, true, complete, accurate and valid, and meets other requirements put forward by Party B;

 

11. Other prerequisites: None.

 

II. Party A self-payment

 

A single loan payment can be made by Party
A’s self-payment, that is, Party A will independently pay its transaction counterparty after Party B has released the loan funds to the
loan origination account according to Party A’s withdrawal application. Party A shall guarantee its trading object in accordance with
the specific use for such loan and the transaction information.

 

III. Whether Party B’s entrusted payment or
Party A’s self-payment is adopted, once the loan funds enter the loan origination account, it shall be deemed that Party B has fulfilled
the loan obligation. Party A shall ensure the loan origination account in normal condition (include but not limited to not frozen by
entitled offices) Party A shall bear all risks, liabilities and losses that occur after the loan funds enter the loan origination account
and are frozen or deducted by the competent authority. And Party A shall compensate any losses and damages of Party B.

 

    4 

     

    

 

Article 7 Account use and supervision 

 

I. Loan origination account

 

The loan origination account hereunder is the
account opened by Party A with Party B (account number: [*]).

 

II. Fund withdrawal account

 

1. Party A will use the existing account (account
number: [*]) that has been opened with Party B as a fund withdrawal account.

 

2. Party B has the right to manage the in and
out of the account withdrawn funds. More precisely,

 

(1) The time when the funds withdrawn from
circulation are in place: The returned funds should be in place before the loan maturity date.

 

(2) Other requirements put forward by Party
B.

 

Article 8 Repayment 

 

I. Repayment principles

 

Party A’s payment hereunder should be in accordance
with the following principles:

 

Party B has the right to use Party A’s repayment
first to repay the expenses agreed by this contract that Party A shall bear but paid by Party B as well as the expenses of Party B’s
realization of the creditor’s rights. The remaining amount shall be repaid in accordance with the principle of repaying the interest
first and then the principal, and the interest is paid off with the principal. But for the loans whose principal and interest is overdue
for more than ninety days or for the loans stipulated otherwise by laws, regulations or rules the reimbursement of Party A, after repaying
the above expenses, should be in accordance with the principle that interest should be paid fist and the then the principal.

 

II. Interest payment

 

Party A shall pay Party B the due interest
on interest settlement day. The first payment date is the first interest settlement day after releasing loan. Repayment for the principal
and interest upon the last repayment

 

    5 

     

    

 

III. Mode of repayment

 

Party A shall reserve the amount payable in
the current period in the fund withdrawal account or other accounts opened by Party B and the personal account of the guarantor before
the repayment date stipulated herein and transfer the loan by itself (Party B also has the right to transfer money from the account to
repay the loan), or transfer money from other accounts for loan repayment on the repayment date agreed herein.

 

IV. Prepayment

 

Party A’s early repayment should be based on
the actual number of days of payment and the loan interest rate determined in Article 5 hereto to calculate the interest.

 

After repaying some of the loan, the loan having
not yet returned should be implemented the loan interest rate specified herein.

 

Article 9 Rights and obligations of Party
A 

 

I. Rights of Party A

 

(I) Apply to Party B for loan disbursement
in accordance with the contract;

 

(II) Use the loan for the purpose agreed herein;

 

(III) Require Party B to keep confidential
the relevant financial information and production and operation business secrets provided by Party A, unless otherwise provided by laws,
regulations and rules, otherwise required by the competent authority, or otherwise agreed by both parties;

 

(IV) Refuse to bribe Party B and its staff.
Confronted with the above behavior or any other behavior of Party B in violation of national credit interest rate, service fees and other
laws and regulations of the act, Party A has the right to inform the relevant departments.

 

    6 

     

    

 

II. Obligations of Party A

 

(I) Withdraw money and fully repay principal
and interest of the loan according to the provisions hereto, assume expenses stimulated herein;

 

(II) Provide relevant financial and accounting
information, production and operation status information and other materials in accordance with Party B’s requirements;

 

(III) In the event of major adverse events
affecting Party A’s solvency or other circumstances endangering Party B’s bonds, or in the event of any changes in industrial and commercial
registration matters, such as the name, initial agent for service of process (responsible person), domicile or business place, registered
capital or Articles of Association of the company (enterprise), Party A shall inform Party B in writing within 3 working days after occurrence
and attach the related data changed;

 

(IV) Party A shall use the borrowing according
to the purpose agreed herein, and shall not misuse, embezzle or use bank loans to engage in illegal and crooked transactions, shall not
use the borrowing for investment in fixed assets, equity, etc., and shall not use the borrowing in portfolio investment and equity investment
such as stocks; shall not use the borrowing for forward bargain; and shall not use the borrowing in the fields and purposes prohibited
by the state for production and operation, and shall not replace the liabilities arising from Party A’s investment in fixed assets and
equity; Party A shall cooperate with Party B and accept Party B’s inspection and supervision of its production & operation and financial
activities, financing use and disbursement under this Contract, and shall cooperate with Party B and accept Party B’s related management
requirements after the financing; Party A shall not illegally withdraw the funds, transfer funds and make use of related transaction
to evade the debt to Party B; Party A shall not use the false contract entered with interested party and discount on or pledge claims
such as notes receivable or accounts receivable to cheat the bank of capital or credit; Party A shall pay the borrowing as agreed herein,
and shall not elude the entrusted payment of Party B by breaking up the whole into parts;

 

(V) Should Party A make use of the borrowing
herein for manufacturing, it shall abide by the national regulations on environmental protection;

 

(VI) Before failing to pay off the loan principal
and interest of the lender, without the written consent of Party B, Party A shall not provide the guarantee for the third party with
the loan assets under this Contract;

 

(VII) Should Party A is the group customer,
Party A shall report the more than 10% related transactions of Party A’s net assets to Party B in time, including: (1) Relationship between
the trading parties; (2) Trading items and nature; (3) The trading amount or the corresponding proportion; (4) Pricing policy (including
trading with no amount or nominal amount only).

 

    7 

     

    

 

(VIII) Before implementing the major matters,
such as the merger, division, equity transfer, foreign investment and substantial increase of debt financing, Party A shall obtain Party
B’s written consent. But the written consent of Party B does not affect the right of taking remedial measures in accordance with the
stipulation hereof in future, when Party B thinks aforementioned behaviors may threat the security of creditor’s rights.

 

(IX) Party A shall summarize and report the
financing use and disbursement to Party B on schedule.

 

(X) The co-borrower and borrowing company have
the same borrowing responsibility. In case of Party B issues the loan according to this Contract, Party B is entitled to claim all the
creditor’s rights from either the borrowing company or the co-borrower. Neither the borrowing company nor the co-borrower shall refuse
to meet the loan obligations to Party B based on any internal agreement or any other objection on debt commitment. The borrowing company
shall not refuse to meet the loan obligations on the grounds that loans are used or embezzled by the co-borrower, and the co-borrower
shall not refuse to meet the loan obligations on the grounds that loans are used or embezzled by the borrowing company.

 

Article 10 Rights and obligations of Party
B 

 

I. Party B shall be entitled to require Party
A to repay the financing principal & interest and expenses on schedule, to manage and control the payment of financing funds, to
conduct the dynamic monitoring on Party A’s overall cash flow, to reclaim the financing in advance pursuant to Party A’s fund withdrawal,
to execute other rights herein, and to require Party A to perform other rights herein;

 

II. The loan shall be issued in accordance
with the provisions hereof, except for the delay or failure caused by Party A’s reasons or other reasons not attributable to Party B;

 

III. Keep confidential the relevant financial
information and production and operation business secrets provided by Party A, unless otherwise provided by laws, regulations and rules,
otherwise required by the competent authority, or otherwise agreed by both parties;

 

IV. Party B shall not provide bribery to Party
A or its staff or claim or receive claim from them.

 

V. Party B shall not conduct dishonest acts
or acts that might infringe the legitimate rights and interests of Party A.

 

    8 

     

    

 

Article 11 Default responsibilities and
remedial measures in the cases endangering the Party B’s obligatory rights. 

 

I. Party B’s breach of contract and the default
responsibilities

 

(I) If Party B fails to issue loans without
reasonable reasons and without in accordance with this Contract, Party A can require Party B to continue to issue loans in accordance
with this Contract;

 

(II) In case Party B charges Party A the interest
and expenses that shall not be charged, which is the violation on prohibitive provisions of the national laws and regulations, Party
A shall have the right to require Party B to refund such amount.

 

II. Party A’s breach of contract

 

(I) Party A violates any provision herein or
violates any legal obligation;

 

(II) Party A expresses, directly or by its
acts, that it will not perform any of the obligations herein.

 

III. Circumstances that may endanger creditor’s
rights of Party B

 

(I) In the event of one of the following cases,
Party B considers that it may endanger the safety of creditor’s rights hereunder: Party A has circumstances of contract, trusteeship
(takeover), leasing and shareholding reform, reduction of registered capital, investment, joint management, merger, acquisition, reorganization,
division and joint venture, equity transfer, substantial increase in debt financing, applies for or is requested to apply for stopping
business for internal rectification, applies for dissolution, revoked, applies for or is requested to apply for bankruptcy, change of
controlling shareholders/actual controller or transfer of material assets, suspend production, goes out of business, being imposed high
fines by competent authority, being of cancellation of registration, being revoked business license, involving in big legal disputes,
meeting serious difficulties in production and operation and deterioration of financial conditions, reduction of credit status and being
unable to properly perform duties as legal representative or main responsible person;

 

(II) In the event of one of the following cases,
Party B considers that it may endanger the safety of creditor’s rights hereunder: Party A fails to fulfill other matured debts (including
matured debts of institutions at all levels of China Construction Bank or other third parties), transfers property with low price and
without compensation, relieves the third party’s debt, delays in exercising creditor’s rights or other rights, or providing the guarantee
for the third party; Party A’s financial indicators fail to continuously meet Party B’s relevant requirements; Abnormal fluctuations
occur in the funds of Party A’s any accounts (including but not limited to the fund withdrawal account and other accounts supervised
by Party B); Party A has major cross default events; Party A’s profitability of the main business is weak; The loan fund is used abnormally.

 

    9 

     

    

 

(III) Shareholders of Party A abuse the independent
status of the corporate juridical person or limited liability of shareholders to evade debts, Party B considers that it may endanger
the safety of creditor’s rights hereunder:

 

(IV) Any of the premises on loan issuance agreed
in the Contract is not continuously met;

 

(V) If any one of the following cases occurs
to the Guarantor, Party B considers that it may endanger the safety of creditor’s rights hereunder:

 

1. Violate any provision under the contract
of guarantee, or there is any falsehood, error or omission in the matters stated or promised.

 

2. Any circumstance of contract, trusteeship
(takeover), leasing and shareholding reform, reduction of registered capital, investment, joint management, merger, acquisition, reorganization,
division and joint venture, equity transfer, substantial increase in debt financing, applies for or is requested to apply for stopping
business for internal rectification, applies for dissolution, revoked, applies for or is requested to apply for bankruptcy, change of
controlling shareholders/actual controller or transfer of material assets, low-priced or free transfer of property, reduction or exemption
of third-party debts, failure to exercise creditor’s rights or other rights, suspend production, goes out of business, being imposed
high fines by competent authority, being of cancellation of registration, being revoked business license, involving in big legal disputes,
meeting serious difficulties in production and operation and deterioration of financial conditions, reduction of credit status or being
unable to properly perform duties as legal representative or main responsible person may affect the guarantor’s ability to undertake
the guarantee;

 

3. Other cases in which the ability of guarantee
is or may be lost;

 

(VI) Any of the following cases occur to the
mortgage or pledge, and Party B considers that it may endanger the obligatory rights under the Contract:

 

1. Mortgaged property or pledge property (pledge
rights) damage, loss and reduction in value caused by the act of the third person, state collection, confiscation, expropriation, unpaid
recovery, relocation, market conditions change or any other reasons.

 

2. Mortgaged property or pledge property is
seized, detained, frozen, deducted, in lien, auction, supervision of the executive authorities or the ownership dispute;

 

3. The mortgager or pledger violates any provisions
of the mortgage contract or pledge contract, or there is any falsehood, error and omission in the statement and guarantee;

 

    10 

     

    

 

4. Other cases that may endanger the realization
of mortgage or pledge of Party B;

 

(VII) Where a guarantee is not established,
not effective, invalid, revoked, and cancelled, the guarantor breaks a contract or clearly expresses or, in its conduct, indicates that
it will not perform the liability to guarantee, or the guarantor is partially or totally lost in guarantee ability, and the collateral
is devalued, etc., Party B thinks these may endanger the safety of creditor’s rights hereunder: Or

 

(VIII) Other cases that Party B deems might
endanger the safety of the creditor’s rights under the Contract.

 

IV. Party B’s Remedial Measures

 

Party B has the right to exercise one or several
rights below without prior notice, if the cases agreed in Clause (II) or (III) thereof:

 

(I) Suspend to issue the loan;

 

(II) Conditions of supplementary loan distribution
and repayment;

 

(III) Change the loan payment method in accordance
with the agreement of the Contract;

 

(IV) Party B shall announce that the loan is
matured immediately, require Party A to immediately repay principal, interest and expense of all matured and unmatured debts under this
contract;

 

(V) Correspondingly adjust, cancel or terminate
the borrowing limit, or adjust the validity period of the loan limit.

 

(VI) If Party A fails to use the loan according
to the contract, default interest and compound interest of the embezzled part by Party A are calculated and collected based on the penalty
interest rate and the interest settlement mode in the contract from the date of failing to use the loan for the specified purpose to
the date on which the principal and interest are paid off in full.

 

    11 

     

    

 

(VII) In the cases of overdue loan, if Party
A fails to pay off loan principal and interest (including all or part loan principal and interest announced to be due by Party B), default
interest and compound interest of the embezzled part by Party A based on the penalty interest rate and the interest settlement mode in
the contract from the overdue date to the date on which the principal and interest are paid off in full. Loan overdue refers to the behavior
that Party A fails to pay off the loan on schedule or repays the loan exceeding the agreed time limit of the installment plan.

 

Before the loan is due, the compound interest
Party A fails to pay in time will be calculated and collected in accordance with the loan interest rate and interest settlement method
under the Agreement.

 

(VIII) Other remedial measures, including but
not limited to:

 

1. Transfer the corresponding amount in RMB
or other currencies from Party A’s account opened in China Construction Bank without prior notice to Party A;

 

2. Exercise the guarantee right;

 

3.Require Party A to provide new guarantee
which meets Party B’s requirements for all the debts under the contract;

 

4. Refuse that Party A disposes of the corresponding
amount of deposits in Party A’s accounts opened in China Construction Bank (including but not limited to the fund withdrawal account);

 

5. Terminate this Contract

 

Article 12 Miscellaneous 

 

I. Expense undertaking

 

1. All expenses (including but not limited
to the cost of litigation, the fees for arbitration, property preservation fee, travel costs, execution fee, auction fee, notarization
fee, delivery costs, publication fee, legal costs) actually incurred due to Party A’s breach of any agreement in this contract or Party
B’s realization of the creditor’s rights, shall be borne by Party A.

 

    12 

     

    

 

2. For other expenses, both parties agreed
as follows: Unless otherwise agreed in the Contract, the financing-related storage, appraisal, lawyer services, insurance and other expenses
(if any) under this contract and the expenses that can be borne by the financing party stipulated in accordance with laws and regulations,
shall be borne by Party A The expenses incurred by Party B in conducting due diligence on financing under this Contract shall be borne
by Party B. 

 

II. Use of Party A’s information

 

Party A agrees that Party B queries Party A’s
credit status from the basic database of financial credit information and other legally established credit rating agencies, and agrees
that Party B provides the basic financial credit information database with Party A’s information. Party A also agrees that Party B may
reasonably use and disclose the information of Party A based on the business requirements.

 

III. Collection announcement

 

In cases that Party A defaults on the loan
capital and interests or commits other breaches, Party B shall have the right to inform relevant department or organs of the cases and
collect the overdue debts through an announcement to press.

 

IV. The efficacy of the evidence kept by Party
B

 

Unless there is reliable and certain contrary
evidence, the internal accounting records related to the principle, interest, expense and repayment record, bill, voucher produced or
retained by Party B in the business processes of Party A’s drawings, repayment, payment of interest, etc., and record and voucher of
Party B’s loan collection shall constitute the conclusion evidences for effectively proving the creditor’s rights and debts relations
between Party A and Party B. Party A shall not raise an objection for the only reason that the above records, bill of document and vouchers
are made or kept by Party B unilaterally.

 

V. Reservation of rights

 

Party B’s rights hereunder shall not affect
and exclude any rights enjoyed according to laws, regulations and other contracts. Any tolerance, extension, preference on the breach
of contract or delay behavior, or postponement of exercising of any right under the contract will not be regarded as the waiver of rights
and interests under the contract or permission or approval of the violation behavior on the contract, and it will not restrict, prevent
and hinder the continuous exercise of the right or any other rights, or result in Party B’s assumption on obligation and responsibility
for Party A.

 

    13 

     

    

 

VI. Except the debts under this Contract, if
Party A is liable to Party B for other due debts, Party B has the right to transfer money in RMB or other currencies from the accounts
opened by Party A in the system of China Construction Bank to pay off any due payment, and Party A agreed not to put forward any dissents.

 

VII. Collection of payables

 

For all the payables under this contract of
Party A, Party B is entitled to collect RMB or other currencies from the account opened in system of China Construction Bank by Party
A without noticing the Party A in advance. Party A shall be obliged to assist Party B in handling foreign exchange settlement or foreign
exchange transactions, and the exchange rate risks shall be borne by Party A.

 

VIII. Dispute resolution

 

Disputes arising from the performance of this
Contract can be settled through negotiation or by the first method following if negotiation fails:

 

1. File a lawsuit to local people’s court of
Party B

 

2. Submit to _/_ Arbitration Commission (the
place of arbitration is _/_) for arbitration in accordance with the existing and effective arbitration rules when applying for the arbitration.
The arbitral award shall be deemed as final and binding on both parties.

 

During the litigation or lawsuit, the terms
of the contract that are not involved in disputes shall still be performed.

 

IX. Conditions for the effectiveness of the
contract

 

This contract comes into effect after the borrower
authorizes the client to click “Confirm” and complete the operation of electronic channel confidentiality verification.

 

Information materials such as tips, notices
and announcements related to this business and clearly indicated by the lender to the borrower through online banking of China Construction
Bank, mobile banking and other channels during the business handling process under this contract are all effective components of this
contract.

 

    14 

     

    

 

X. Other agreed terms

 

1. Both parties to this contract confirm and
agree that: This contract is signed in the form of data messages approved by both parties; The electronic signature method in the lender’s
electronic system used by the borrower is a reliable electronic signature method agreed by both parties; The way for the Borrower to
log in to the lender’s electronic system is an identity authentication method recognized by both parties. All operations after passing
this identity authentication are deemed as the borrower’s (or his authorized agent’s) actions, and the borrower promises to undertake
the responsibility of the legal consequences arising therefrom.

 

2. The electronic banking service agreement
and relevant business rules announced irregularly by the lender through outlets, websites or electronic banking channels shall be abided
by when the borrower handles loans through the lender’s electronic banking channel. The aforesaid agreements and business rules are supplemented
and applicable to the relation of rights and obligations between both parties under this contract.

 

3. The notice to be transferred by any party
to the other party of this contract must be conducted subject to the mailing address, contact number or other contact information listed
in the contract.

 

4. If the communication address and other contact
information of the borrower change, the lender shall be notified in written form within five working days from the date of the changes.
The legal consequences caused by not notifying promptly shall be borne by the party with changes. It shall be deemed that the lender
has performed the obligation of delivery if it sends relevant written letters, notifications, etc. in accordance with the borrower’s
communication address, contact telephone or fax of recorded in the Contract (if it is changed, it shall be subject to address designated
in the effective written notification). If the lender is confronted with matters that need to be notified to the borrower, the lender
may give a notice through putting up the announcement, internet banking, telephone banking, mobile banking, etc. at the lender’s outlet.

 

5. The price and other expenses under the Contract
shall include the VAT tax price, but except as otherwise agreed by the parties.

 

6. Invoice

 

6.1 Party B shall issue invoices according
to the following provisions of Item (2):

 

(1) In case that Party A requires issuing invoices,
Party B shall legally issue the VAT invoice of the payment amount after receiving Party A’s payment.

 

    15 

     

    

 

(2)
Other agreements: /

 

6.2 Invoicing information provided by Party
A

 

Company name (full name): Xinjiang Hemujia
Trading Co., Ltd

 

Taxpayer ID No.: [*]

 

Bank Account: [*]

 

Deposit Bank: Renmin Road Sub-branch in Urumqi
City, China Construction Bank Corporation

 

Address: No.26 Wenhua Road, Tianshan District,
Urumqi City

 

Tel.: [*]

 

6.3 In the event that the invoice needs to
be canceled or the red invoice needs to be issued, Party A shall provide the assistance in time according to Party B’s requirements.
In case that the invoice cannot be canceled or the red invoice cannot be issued due to Party A, Party A shall compensate for Party B’s
all losses, including but not limited to the taxes, additional taxes, penalties and overdue fines.

 

7. Party A shall provide Party B with full
and accurate filing data of VAT tax preference in time according to Party B’s requirements, so as to assist Party B in completion of
the tax filing, etc., if Party A belongs to the overseas institution of the People’s Republic of China, and the price and other expenses
under this contract are applicable to the tax preference and need the tax filing pursuant to the laws, regulations, rules or related
provisions of related departments.

 

Article 13 Terms of statement 

 

I. Party A knows clearly the scope of business
and authorized permission of Party B.

 

II. Party A has read all clauses of the Contract.
In response to Party A’s request, Party B has made explanation to the corresponding explanations of this contract. Party A has thoroughly
known and fully understood the implications of the articles of this contract and relevant legal consequences.

 

III. Obligations of Party A to sign and fulfill
this contract shall meet the provisions of the laws, administrative regulations, rules and Party A’s Articles of Association or internal
organizational documents, and have been approved by the company’s internal competent authorities and/or national competent authorities.

 

    16 

     

    

 

IV. Party A’s production and business are legal
and corresponding with regulations;

 

V. Party A has the ability to continue the
business and has legal repayment sources;

 

VI. Party A promises that all loans under this
Contract are based on the actual needs of specific purposes of the loans and the actual demands are not exceeded.

 

VII. Party A and its controlling shareholder
have good credit status and have no major record of bad credit.

 

VIII. Party B is entitled to entrust China
Construction Bank and other branch institutions to issue loans under the Contract and perform and fulfill Party B’s obligations under
the Contract, and Party A has no objection over this.

 

XI. Party A declares that there is no act or
situation in violation of environmental and social risk management laws, rules and regulations by itself and important related parties
when this contract is concluded; Meanwhile, Party A promises that after this contract is concluded, it will strengthen the environmental
and social risk management of itself and its important related parties, strictly abide by the laws, rules and regulation relating to
the environmental and social risk management, and eliminate hazards and related risks (including but not limited to the environmental
and social problems relating to energy dissipation, pollution, land, health, safety, resettlement of residents, ecological protection,
energy conservation and emission reduction, climatic change, etc.) to the environment and society in the construction, production and
operating activities. Party A agrees that Party B shall be entitled to supervise Party A’s environmental and social risk management,
and to require Party A to submit an environmental and social risk report. If the aforementioned statement of Party A is false or the
aforementioned promise is not performed, or environmental and social risks may be caused by Party A, Party B is entitled to stop credit
granting to Party A (including but not limited to refusing to issue loans, providing financing, drawing letters of guarantee, letters
of credit or bank acceptance bills, etc.), or declare that the principal and interest of the creditor’s rights (including but not limited
to loans, financing, advance payments that have been occurred or may occur, etc.) expire in advance, or take other relief measures agreed
in this contract or permitted by law.

 

Party A (official seal)

 

Xinjiang Hemujia Trading Co., Ltd (seal)

 

Legal representative (responsible person) or
authorized agent (signature): Wang Baolin (seal)

 

July 15, 2021

 

Party B (official seal)

 

Renmin Road Sub-branch in Urumqi City, China
Construction Bank Corporation (seal)

 

Responsible person or authorized agent (Signature):

 

Ma Qiumei

 

July 15, 2021

 

 

17Document

Exhibit 4.1

UNION BANKSHARES, INC.

3.25% FIXED-TO-FLOATING RATE Subordinated Note due 2031

THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS SUBORDINATED AND JUNIOR IN RIGHT OF PAYMENT TO SENIOR INDEBTEDNESS (AS DEFINED IN SECTION 3 OF THIS SUBORDINATED NOTE) OF UNION BANKSHARES, INC. (THE “COMPANY”), INCLUDING OBLIGATIONS OF THE COMPANY TO ITS GENERAL CREDITORS AND SECURED CREDITORS, AND IS UNSECURED.  IT IS INELIGIBLE AS COLLATERAL FOR ANY EXTENSION OF CREDIT BY THE COMPANY OR ITS SUBSIDIARY.  IN THE EVENT OF LIQUIDATION ALL HOLDERS OF SENIOR INDEBTEDNESS OF THE COMPANY SHALL BE ENTITLED TO BE PAID IN FULL WITH SUCH INTEREST AS MAY BE PROVIDED BY LAW BEFORE ANY PAYMENT SHALL BE MADE ON ACCOUNT OF PRINCIPAL OF OR INTEREST ON THIS SUBORDINATED NOTE.  AFTER PAYMENT IN FULL OF ALL SUMS OWING TO SUCH HOLDERS OF SENIOR INDEBTEDNESS, THE HOLDER OF THIS SUBORDINATED NOTE, TOGETHER WITH THE HOLDERS OF ANY OBLIGATIONS OF THE COMPANY RANKING ON A PARITY WITH THE SUBORDINATED NOTES, SHALL BE ENTITLED TO BE PAID FROM THE REMAINING ASSETS OF THE COMPANY THE UNPAID PRINCIPAL AMOUNT OF THIS SUBORDINATED NOTE PLUS ACCRUED AND UNPAID INTEREST THEREON BEFORE ANY PAYMENT OR OTHER DISTRIBUTION, WHETHER IN CASH, PROPERTY OR OTHERWISE, SHALL BE MADE (I) WITH RESPECT TO ANY OBLIGATION THAT BY ITS TERMS EXPRESSLY IS JUNIOR IN THE RIGHT OF PAYMENT TO THE SUBORDINATED NOTES, (II) WITH RESPECT TO ANY INDEBTEDNESS BETWEEN THE COMPANY AND ANY OF ITS SUBSIDIARIES OR AFFILIATES, OR (III) ON ACCOUNT OF ANY SHARES OF CAPITAL STOCK OF THE COMPANY.

THIS SUBORDINATED NOTE IS A GLOBAL SUBORDINATED NOTE AND IS REGISTERED IN THE NAME OF CEDE & CO AS NOMINEE OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS SUBORDINATED NOTE IS EXCHANGEABLE FOR SUBORDINATED NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE, AND NO TRANSFER OF THIS SUBORDINATED NOTE (OTHER THAN A TRANSFER OF THIS SUBORDINATED NOTE AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES SPECIFIED IN THIS SUBORDINATED NOTE.

UNLESS THIS SUBORDINATED NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY SUBORDINATED NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS SUBORDINATED NOTE WILL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS SUBORDINATED NOTE WILL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH RESTRICTIONS SET FORTH HEREIN.

THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY OR FUND.

THIS SUBORDINATED NOTE WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $100,000 AND MULTIPLES OF $10,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SUBORDINATED NOTE IN A DENOMINATION OF LESS THAN $100,000 SHALL BE 
A-1

DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SUBORDINATED NOTE FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PAYMENTS ON THIS SUBORDINATED NOTE, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SUBORDINATED NOTE.

THIS SUBORDINATED NOTE MAY BE SOLD ONLY IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS.  THIS SUBORDINATED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SUBORDINATED NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

CERTAIN ERISA CONSIDERATIONS:

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

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

A-2

									
	No.:  2031-001		CUSIP (QIB): 905400AA5/US905400AA53

UNION BANKSHARES, INC.
3.25% FIXED-TO-FLOATING RATE Subordinated Note due 2031

1.Subordinated Notes. This Subordinated Note is one of an issue of notes of Union Bankshares, Inc., a Vermont corporation (the “Company”), designated as the “3.25% Fixed-to-Floating Rate Subordinated Notes due 2031” (the “Subordinated Notes”) issued pursuant to those Subordinated Note Purchase Agreements, dated as of date upon which this Subordinated Note was originally issued (the “Issue Date”), between the Company and the several purchasers of the Subordinated Notes identified on the signature pages thereto (each, a “Purchase Agreement” and collectively, the “Purchase Agreements”).

2.Payment. The Company, for value received, promises to pay to Cede & Co., or its registered assigns, as nominee for The Depository Trust Company (“DTC”), the principal sum of FIFTEEN MILLION FIVE HUNDRED THOUSAND DOLLARS (U.S.) ($15,500,000.00), plus accrued but unpaid interest on September 1, 2031 (“Stated Maturity”) and to pay interest thereon (i) from and including the Issue Date of the Subordinated Notes to but excluding September 1, 2026 or the earlier redemption date contemplated by Section 4 of this Subordinated Note at the rate of 3.25% per annum, computed on the basis of a 360-day year consisting of twelve 30-day months and payable semi-annually in arrears on March 1 and September 1 of each year (each, a “Fixed Rate Interest Payment Date”), beginning March 1, 2022, and (ii) from and including September 1, 2026 to but excluding the Stated Maturity or the earlier redemption date contemplated by Section 4 of this Subordinated Note, at the rate per annum, reset quarterly, equal to the Floating Interest Rate (as defined below) determined on the Floating Interest Determination Date (as defined below) of the applicable interest period plus 263 basis points, computed on the basis of a 360-day year and the actual number of days elapsed and payable quarterly in arrears on March 1, June 1, September 1 and December 1 (each quarterly period, a “Floating Rate Period”) of each year (each, a “Floating Rate Interest Payment Date”), beginning December 1, 2026.  In the event that the Floating Interest Rate for the Floating Rate Period is less than zero, the Floating Interest Rate for such Floating Rate Period shall be deemed to be zero.  Dollar amounts resulting from this calculation shall be rounded to the nearest cent, with one-half cent being rounded up.  The term “Floating Interest Determination Date” means the date upon which the Floating Interest Rate is determined by the Calculation Agent (as defined below) pursuant to the Three-Month Term SOFR Conventions (as defined below).  Any payment of principal of or interest on this Subordinated Note that would otherwise become due and payable on a day which is not a Business Day shall become due and payable on the next succeeding Business Day, with the same force and effect as if made on the date for payment of such principal or interest, and no interest will accrue in respect of such payment for the period after such day; provided, that in the event that any scheduled Floating Rate Interest Payment Date falls on a day that is not a Business Day and the next succeeding Business Day falls in the next succeeding calendar month, such Floating Rate Interest Payment Date will be accelerated to the immediately preceding Business Day, and, in each such case, the amounts payable on such Business Day will include interest accrued to, but excluding, such Business Day.

(a)The Company shall take such actions as are necessary to ensure that from the commencement of the Floating Rate Period for so long as any of the Subordinated Notes remain outstanding there will at all times be a Calculation Agent appointed to calculate the Floating Interest Rate in respect of each Floating Rate Period.  The calculation of the Floating Interest Rate for each applicable Floating Rate Period by the Calculation Agent will (in the absence of manifest error) be final and binding.  The Calculation Agent’s determination of any interest rate and its calculation of interest payments for any period will be maintained on file at the Calculation Agent’s principal offices, will be made available to any Noteholder (as defined below) upon request.  The Calculation Agent may be removed by the Company at any time.  If the Calculation Agent is unable or unwilling to act as Calculation Agent or is removed by the Company, the Company will promptly appoint a replacement Calculation Agent.  The Calculation Agent may not resign its duties without a successor having been duly appointed; provided, that if a successor Calculation Agent has not been appointed by the Company and such successor accepted such position within thirty (30) days after the giving of notice of resignation by the Calculation Agent, then the resigning Calculation Agent may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Calculation Agent with respect to such series.  For the avoidance of doubt, if at any time there is no Calculation Agent appointed by the Company, then the Company shall be the Calculation Agent.

A-3

(b)An “Interest Payment Date” is either a Fixed Rate Interest Payment Date or a Floating Rate Interest Payment Date, as applicable.

(c)The “Floating Interest Rate” means:

(i)initially Three-Month Term SOFR (as defined below).

(ii)Notwithstanding the foregoing clause (i) of this Section 2(c):

(A)If the Calculation Agent determines prior to the relevant Floating Interest Determination Date that a Benchmark Transition Event and its related Benchmark Replacement Date (each of such terms as defined below) have occurred with respect to Three-Month Term SOFR, then the Company shall promptly provide notice of such determination to the Noteholders and Section 2(d) will thereafter apply to all determinations, calculations and quotations made or obtained for the purposes of calculating the Floating Interest Rate payable on the Subordinated Notes during a relevant Floating Rate Period.

(B)However, if the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR, but for any reason the Benchmark Replacement has not been determined as of the relevant Floating Interest Determination Date, the Floating Interest Rate for the applicable Floating Rate Period will be equal to the Floating Interest Rate on the last Floating Interest Determination Date for the Subordinated Notes, as determined by the Calculation Agent.

(d)Effect of Benchmark Transition Event.

(i)If the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time (as defined below) in respect of any determination of the Benchmark (as defined below) on any date, the Benchmark Replacement will replace the then-current Benchmark for all purposes relating to the Subordinated Notes during the relevant Floating Rate Period in respect of such determination on such date and all determinations on all subsequent dates.

(ii)In connection with the implementation of a Benchmark Replacement, the Calculation Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and such changes shall become effective without consent from the Noteholders or any other party.

(iii)The Calculation Agent is expressly authorized to make certain determinations, decisions and elections under the Subordinated Notes, including with respect to the use of Three-Month Term SOFR as the Benchmark under this Section 2(d).  Any determination, decision or election that may be made by the Calculation Agent under the terms of the Subordinated Notes, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date, and any decision to take or refrain from taking any action or any selection:

(A)will be conclusive and binding absent manifest error;

(B)if made by the Company as the Calculation Agent, will be made in the Company’s sole discretion;

(C)if made by the Calculation Agent other than the Company, will be made after consultation with the Company, and the Calculation Agent will not make any such determination, decision or election to which the Company reasonably objects; and

(D)notwithstanding anything to the contrary in this Subordinated Note or the Purchase Agreement, shall become effective without consent from the Noteholders or any other party.

(iv)If the Calculation Agent fails to make any determination, decision or election that it is required to make under the terms of the Subordinated Notes, then the Company will make such determination, decision or election on the same basis as described above.
A-4

(v)For the avoidance of doubt, after a Benchmark Transition Event and its related Benchmark Replacement Date have occurred, interest payable on this Subordinated Note for the Floating Rate Period will be an annual rate equal to the sum of the applicable Benchmark Replacement and the spread specified on the face hereof.

(vi)If the then-current Benchmark is Three-Month Term SOFR, the Calculation Agent will have the right to establish the Three-Month Term SOFR Conventions, and if any of the foregoing provisions concerning the calculation of the interest rate and the payment of interest during the Floating Rate Period are inconsistent with any of the Three-Month Term SOFR Conventions determined by the Calculation Agent, then the relevant Three-Month Term SOFR Conventions will apply.

(vii)As used in this Subordinated Note:

(A)“Benchmark” means, initially, Three-Month Term SOFR; provided that if the Calculation Agent determines on or prior to the Reference Time that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement.

(B)“Benchmark Replacement” means the Interpolated Benchmark with respect to the then-current Benchmark, plus the Benchmark Replacement Adjustment for such Benchmark; provided that if (a) the Calculation Agent cannot determine the Interpolated Benchmark as of the Benchmark Replacement Date or (b) the then-current Benchmark is Three-Month Term SOFR and a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR (in which event no Interpolated Benchmark with respect to Three-Month Term SOFR shall be determined), then “Benchmark Replacement” means the first alternative set forth in the order below that can be determined by the Calculation Agent as of the Benchmark Replacement Date:

(1)Compounded SOFR;

(2)the sum of:  (i) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the replacement for the then-current Benchmark for the applicable Corresponding Tenor and (ii) the Benchmark Replacement Adjustment;

(3)the sum of:  (i) the ISDA Fallback Rate and (ii) the Benchmark Replacement Adjustment;

(4)the sum of:  (i) the alternate rate of interest that has been selected by the Calculation Agent as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of interest as a replacement for the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (ii) the Benchmark Replacement Adjustment.

(C)“Benchmark Replacement Adjustment” means the first alternative set forth in the order below that can be determined by the Calculation Agent as of the Benchmark Replacement Date:

(1)the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement;

(2)if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment;

(3)the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Calculation Agent giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the 
A-5

replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated floating rate notes at such time.

(D)“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of  “Floating Rate Period,” timing and frequency of determining rates with respect to each Floating Rate Period and making payments of interest, rounding of amounts or tenors, and other administrative matters) that the Calculation Agent decides may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or, if the Calculation Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Calculation Agent determines that no market practice for use of the Benchmark Replacement exists, in such other manner as the Calculation Agent determines is reasonably necessary).

(E)“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark:

(1)in the case of clause (1) of the definition of “Benchmark Transition Event,” the relevant Reference Time in respect of any determination; or

(2)in the case of clause (2) or clause (3) of the definition of “Benchmark Transition Event,” the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

(3)in the case of clause (4) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein.

For the avoidance of doubt, for purposes of the definitions of Benchmark Replacement Date and Benchmark Transition Event, references to the Benchmark also include any reference rate underlying the Benchmark (for example, if the Benchmark becomes Compounded SOFR, references to the Benchmark would include SOFR).

For the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination.

(F)“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

(1)if the Benchmark is Three-Month Term SOFR, (i) the Relevant Governmental Body has not selected or recommended a forward-looking term rate for a tenor of three months based on SOFR, (ii) the development of a forward-looking term rate for a tenor of three months based on SOFR that has been recommended or selected by the Relevant Governmental Body is not complete or (iii) the Company determines that the use of a forward-looking rate for a tenor of three months based on SOFR is not administratively feasible;

(2)a public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such administrator has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark;

(3)a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease to provide the 
A-6

Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark; or

(4)a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark is no longer representative.

(G) “Business Day” means any day that is not a Saturday or Sunday and that is not a day on which banks in the State of Vermont are generally authorized or required by law or executive order to be closed.

(H)“Calculation Agent” means the agent (which may be the Company or an affiliate of the Company) as may be appointed by the Company to act as Calculation Agent for the Subordinated Notes prior to the commencement of the Floating Rate Period to act in accordance with Section 2.

(I)“Compounded SOFR” means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for this rate, and conventions for this rate being established by the Calculation Agent in accordance with:

1.the rate, or methodology for this rate and conventions for this rate selected or recommended by the Relevant Governmental Body for determining compounded SOFR; provided that:

2.if, and to the extent that, the Calculation Agent determines that Compounded SOFR cannot be determined in accordance with clause (1) above, then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Calculation Agent giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating rate securities at such time.

For the avoidance of doubt, the calculation of Compounded SOFR will exclude the Benchmark Replacement Adjustment and the spread specified on the face hereof.

(J)“Corresponding Tenor” with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding Business Day adjustment) as the applicable tenor for the then-current Benchmark.

(K)“FRBNY” means the Federal Reserve Bank of New York.

(L)“FRBNY’s Website” means the website of the FRBNY at http://www.newyorkfed.org, or any successor source.

(M)“Interpolated Benchmark” with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a linear basis between:  (1) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than the Corresponding Tenor and (2) the Benchmark for the shortest period (for which the Benchmark is available) that is longer than the Corresponding Tenor.

(N)“ISDA” means the International Swaps and Derivatives Association, Inc. or any successor thereto.

(O)“ISDA Definitions” means the 2006 ISDA Definitions published by the ISDA or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time.

(P)“ISDA Fallback Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing the ISDA 
A-7

Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark for the applicable tenor.

(Q)“ISDA Fallback Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment.

(R)“Reference Time” with respect to any determination of the Benchmark means (a) if the Benchmark is Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, and (b) if the Benchmark is not Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Benchmark Replacement Conforming Changes.

(S)“Relevant Governmental Body” means the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve and/or the FRBNY or any successor thereto.

(T)“SOFR” means the daily secured overnight financing rate published by the FRBNY, as the administrator of the Benchmark (or a successor administrator), on the FRBNY’s Website (or such successor’s website).

(U)“Term SOFR” means the forward-looking term rate for the applicable Corresponding Tenor based on SOFR that has been selected or recommended by the Relevant Governmental Body.

(V)“Term SOFR Administrator” means any entity designated by the Relevant Governmental Body as the administrator of Term SOFR (or successor administrator).

(W)“Three-Month Term SOFR” means the rate for Term SOFR for a tenor of three months that is published by the Term SOFR Administrator at the Reference Time for any Floating Rate Period, as determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions.  All percentages used in or resulting from any calculation of Three-Month Term SOFR shall be rounded, if necessary, to the nearest one-hundred-thousandth of a percentage point, with 0.000005% rounded up to 0.00001%.

(X)“Three-Month Term SOFR Conventions” means any determination, decision or election with respect to any technical, administrative or operational matter (including with respect to the manner and timing of the publication of Three-Month Term SOFR, or changes to the definition of “Floating Rate Period,” timing and frequency of determining Three-Month Term SOFR with respect to each Floating Rate Period and making payments of interest, rounding of amounts or tenors, and other administrative matters) that the Calculation Agent decides may be appropriate to reflect the use of Three-Month Term SOFR as the Benchmark in a manner substantially consistent with market practice (or, if the Calculation Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Calculation Agent determines that no market practice for the use of Three-Month Term SOFR exists, in such other manner as the Calculation Agent determines is reasonably necessary).

(Y)“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

3.Subordination.

(a)The indebtedness of the Company evidenced by this Subordinated Note, including the principal and interest on this Subordinated Note, shall be subordinate and junior in right of payment to the prior payment in full of all existing claims of creditors of the Company whether now outstanding or subsequently created, assumed, guaranteed or incurred (collectively, “Senior Indebtedness”), which shall consist of principal of (and premium, if any) and interest, if any, on:  (i) all indebtedness and obligations of, or guaranteed or assumed by, the Company for money borrowed, whether or not evidenced by bonds, debentures, securities, notes or other similar instruments, and 
A-8

including, but not limited to, and all obligations to the Company’s general creditors and secured creditors; (ii) any deferred obligations of the Company for the payment of the purchase price of property or assets acquired other than in the ordinary course of business; (iii) all obligations, contingent or otherwise, of the Company in respect of any letters of credit, bankers’ acceptances, security purchase facilities and similar direct credit substitutes; (iv) any capital lease obligations of the Company; (v) all obligations of the Company in respect of interest rate swap, cap or other agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts, commodity contracts and other similar arrangements or derivative products; (vi) any obligation of the Company to its general creditors, as defined for purposes of the capital adequacy regulations of the Federal Reserve applicable to the Company, as the same may be amended or modified from time to time; (vii) all obligations that are similar to those in clauses (i) through (vi) of other Persons (as such term is defined in the Purchase Agreement) for the payment of which the Company is responsible or liable as obligor, guarantor or otherwise arising from an off-balance sheet guarantee; (viii) all obligations of the types referred to in clauses (i) through (vii) of other Persons secured by a lien on any property or asset of the Company, and (ix) in the case of clauses (i) through (viii) above, all amendments, renewals, extensions, modifications and refundings of such indebtedness and obligations; except “Senior Indebtedness” does not include (A) the Subordinated Notes, (B) any obligation that by its terms expressly is junior to, or ranks equally in right of payment with, the Subordinated Notes, or (C) any indebtedness between the Company and any of its subsidiaries or Affiliates.  This Subordinated Note is not secured by any assets of the Company or any subsidiary or Affiliate of the Company.  The term “Affiliate(s)” means, with respect to any Person, such Person’s immediate family members, partners, members or parent and subsidiary corporations, and any other Person directly or indirectly controlling, controlled by, or under common control with said Person and their respective Affiliates.

(b)In the event of any liquidation of the Company, holders of Senior Indebtedness of the Company shall be entitled to be paid in full with such interest as may be provided by law before any payment shall be made on account of principal of or interest on this Subordinated Note.  Additionally, in the event of any insolvency, dissolution, assignment for the benefit of creditors or any liquidation or winding up of or relating to the Company, whether voluntary or involuntary, holders of Senior Indebtedness shall be entitled to be paid in full before any payment shall be made on account of the principal of or interest on the Subordinated Notes, including this Subordinated Note.  In the event of any such proceeding, after payment in full of all sums owing with respect to the Senior Indebtedness, the registered holders of the Subordinated Notes from time to time (each, a “Noteholder” and, collectively, the “Noteholders”), together with the holders of any obligations of the Company ranking on a parity with the Subordinated Notes, shall be entitled to be paid from the remaining assets of the Company the unpaid principal thereof, and the unpaid interest thereon before any payment or other distribution, whether in cash, property or otherwise, shall be made (i) with respect to any obligation that by its terms expressly is junior to in the right of payment to the Subordinated Notes, (ii) with respect to any indebtedness between the Company and any of its subsidiaries or Affiliates or (iii) on account of any capital stock.

(c)If there shall have occurred and be continuing (i) a default in any payment with respect to any Senior Indebtedness or (ii) an event of default with respect to any Senior Indebtedness as a result of which the maturity thereof is accelerated, unless and until such payment default or event of default shall have been cured or waived or shall have ceased to exist, no payments shall be made by the Company with respect to the Subordinated Notes, notwithstanding the provisions of Section 18 hereof.  The provisions of this subsection shall not apply to any payment with respect to which Section 3(b) above would be applicable.

(d)Nothing herein shall act to prohibit, limit or impede the Company from issuing additional debt of the Company having the same rank as the Subordinated Notes or which may be junior or senior in rank to the Subordinated Notes.  Each Noteholder, by its acceptance hereof, agrees to and shall be bound by the provisions of this Section 3.  Each Noteholder, by its acceptance hereof, further acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration for each holder of any Senior Indebtedness, whether such Senior Indebtedness was created or acquired before or after the issuance of the Subordinated Notes, to acquire and continue to hold, or to continue to hold, such Senior Indebtedness, and such holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold or in continuing to hold such Senior Indebtedness.

4.Redemption.

A-9

(a)Redemption Prior to Fifth Anniversary.  This Subordinated Note shall not be redeemable by the Company, in whole or in part, prior to September 1, 2026, except in the event of:  (i) a Tier 2 Capital Event (as defined below), (ii) a Tax Event (as defined below) or (iii) an Investment Company Event (as defined below).  Upon the occurrence of a Tier 2 Capital Event, a Tax Event or an Investment Company Event, subject to Section 4(f) below, the Company may redeem this Subordinated Note in whole, but not in part, at any time, upon giving not less than ten (10) calendar days’ notice to the Noteholder at an amount equal to one hundred percent (100%) of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date.  “Tier 2 Capital Event” means the receipt by the Company of an opinion of counsel to the Company to the effect that there is a material risk that the Subordinated Note no longer qualifies as “Tier 2” capital (as defined by the Federal Reserve) (or its then equivalent) as a result of a change in interpretation or application of law or regulation by any judicial, legislative or regulatory authority that becomes effective after the Issue Date.  “Tax Event” means the receipt by the Company of an opinion of counsel to the Company that as a result of any amendment to, or change (including any final and adopted (or enacted) prospective change) in, the laws (or any regulations thereunder) of the United States or any political subdivision or taxing authority thereof or therein, or as a result of any official administrative pronouncement or judicial decision interpreting or applying such laws or regulations, there is a material risk that interest payable by the Company on the Subordinated Notes is not, or within one hundred and twenty (120) calendar days after the receipt of such opinion will not be, deductible by the Company, in whole or in part, for U.S. federal income tax purposes.  “Investment Company Event” means the receipt by the Company of an opinion of counsel to the Company to the effect that there is a material risk that the Company is or, within one hundred and twenty (120) calendar days after the receipt of such opinion will be, required to register as an investment company pursuant to the Investment Company Act of 1940, as amended.

(b)Redemption on or after Fifth Anniversary.  On or after September 1, 2026, subject to Section 4(f) below, this Subordinated Note shall be redeemable at the option of and by the Company, in whole or in part, at any time and from time to time upon any Interest Payment Date, at an amount equal to one hundred percent (100%) of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date.  In the case of any redemption of this Subordinated Note pursuant to the first sentence of this Section 4(b), the Company will give the Noteholder notice of redemption, which notice shall indicate the aggregate principal amount of Subordinated Notes to be redeemed, not less than thirty (30) nor more than forty-five (45) calendar days prior to the proposed redemption date.  On or after September 1, 2026, the Company may redeem this Subordinated Note, in whole or in part, upon the occurrence of a Tier 2 Capital Event, Tax Event or an Investment Company Event, upon giving not less than ten (10) calendar days’ notice to the Noteholder, which notice of redemption shall indicate the aggregate principal amount of Subordinated Notes to be redeemed.

(c)Partial Redemption.  If less than the then outstanding principal amount of this Subordinated Note is redeemed, (i) a new Subordinated Note shall be issued representing the unredeemed portion without charge to the holder thereof and (ii) such redemption shall be effected on a pro rata basis as to the Noteholders.  For purposes of clarity, upon a partial redemption, a like percentage of the principal amount of every Subordinated Note held by every Noteholder shall be redeemed.  Such redemptions shall be made on a pro rata pass-through distribution of principal among all of the Subordinated Notes outstanding at the time thereof.

(d)No Redemption at Option of Noteholder.  This Subordinated Note is not subject to redemption at the option of the Noteholder.

(e)Effectiveness of Redemption.  If notice of redemption has been duly given and notwithstanding that this Subordinated Note has been called for redemption but has not yet been surrendered for cancellation, on and after the date fixed for redemption interest shall cease to accrue on the portion of this Subordinated Note called for redemption, this Subordinated Note shall no longer be deemed outstanding with respect to the portion called for redemption and all rights with respect to the portion of this Subordinated Note called for redemption shall forthwith on such date fixed for redemption cease and terminate unless the Company shall default in the payment of the redemption price, except only the right of the Noteholder to receive the amount payable on such redemption, without interest.  For purposes of clarity, any redemption made pursuant to the terms of this Subordinated Note shall be made on a pro rata basis, and, for purposes of a redemption processed through DTC, in accordance with its rules and procedures, as a “Pro Rata Pass-Through Distribution of Principal.”

A-10

(f)Regulatory Approvals.  Any such redemption pursuant to this Section 4 shall be subject to receipt of any and all required federal and state regulatory approvals, including, but not limited to, the consent of the Federal Reserve.

(g)Purchase and Resale of the Subordinated Notes.  Subject to any required federal and state regulatory approvals and the provisions of this Subordinated Note, the Company shall have the right to purchase any of the Subordinated Notes at any time in the open market, private transactions or otherwise.  If the Company purchases any Subordinated Notes, it may, in its discretion, hold, resell or cancel any of the purchased Subordinated Notes.

5.Global Subordinated Notes.

(a)The Subordinated Notes are being issued in the form of one or more Global Subordinated Notes (each, a “Global Subordinated Note”) registered in the name of The Depository Trust Company or another organization registered as a clearing agency under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and designated as Depositary by the Company or any successor thereto (the “Depositary”) or a nominee thereof and delivered to such Depositary or a nominee thereof.

(b)Notwithstanding any other provision herein, no Global Subordinated Note may be exchanged in whole or in part for Subordinated Notes registered, and no transfer of a Global Subordinated Note in whole or in part may be registered, in the name of any person other than the Depositary for such Global Subordinated Note or a nominee thereof unless (i) such Depositary advises the Company in writing that such Depositary is no longer willing or able to properly discharge its responsibilities as Depositary with respect to such Global Subordinated Note, and no qualified successor is appointed by the Company within ninety (90) days of receipt by the Company of such notice, (ii) such Depositary ceases to be a clearing agency registered under the Exchange Act and no successor is appointed by the Company within ninety (90) days after obtaining knowledge of such event, (iii) the Company elects to terminate the book-entry system through the Depositary or (iv) an Event of Default (as defined in Section 6) shall have occurred and be continuing.  Upon the occurrence of any event specified in clause (i), (ii), (iii) or (iv) of this Section 5(b), the Company or its agent shall notify the Depositary and instruct the Depositary to notify all owners of beneficial interests in such Global Subordinated Note of the occurrence of such event and of the availability of Subordinated Notes to such owners of beneficial interests requesting the same.

(c)If any Global Subordinated Note is to be exchanged for other Subordinated Notes or canceled in part, or if another Subordinated Note is to be exchanged in whole or in part for a beneficial interest in any Global Subordinated Note, then either (i) such Global Subordinated Note shall be so surrendered for exchange or cancellation as provided in this Section 5 or (ii) the principal amount thereof shall be reduced or increased by an amount equal to the portion thereof to be so exchanged or canceled, or equal to the principal amount of such other Subordinated Note to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate adjustment made on the records of the Company or, if applicable, the Company’s registrar and transfer agent (“Registrar”), whereupon the Company or, if applicable, the Registrar, in accordance with the applicable rules and procedures of the Depositary (“Applicable Depositary Procedures”), shall instruct the Depositary or its authorized representative to make a corresponding adjustment to its records.  Upon any such surrender or adjustment of a Global Subordinated Note by the Depositary, accompanied by registration instructions, the Company shall execute and deliver any Subordinated Notes issuable in exchange for such Global Subordinated Note (or any portion thereof) in accordance with the instructions of the Depositary.

(d)Every Subordinated Note executed and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Subordinated Note or any portion thereof shall be executed and delivered in the form of, and shall be, a Global Subordinated Note, unless such Subordinated Note is registered in the name of a person other than the Depositary for such Global Subordinated Note or a nominee thereof.

(e)The Depositary or its nominee, as the registered owner of a Global Subordinated Note, shall be the holder of such Global Subordinated Note for all purposes under this Subordinated Note, and owners of beneficial interests in a Global Subordinated Note shall hold such interests pursuant to Applicable Depositary Procedures.  Accordingly, any such owner’s beneficial interest in a Global Subordinated Note shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee or its Depositary participants.  If applicable, the Registrar shall be entitled to deal with the Depositary for all purposes 
A-11

relating to a Global Subordinated Note (including the payment of principal and interest thereon and the giving of instructions or directions by owners of beneficial interests therein and the giving of notices) as the sole holder of the Subordinated Note and shall have no obligations to the owners of beneficial interests therein.  The Registrar shall have no liability in respect of any transfers undertaken by the Depositary.

(f)The rights of owners of beneficial interests in a Global Subordinated Note shall be exercised only through the Depositary and shall be limited to those established by law and agreements between such owners and the Depositary and/or its participants.

(g)No holder of any beneficial interest in any Global Subordinated Note held on its behalf by a Depositary shall have any rights with respect to such Global Subordinated Note, and such Depositary may be treated by the Company and any agent of the Company as the owner of such Global Subordinated Note for all purposes whatsoever.  Neither the Company nor any agent of the Company will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Subordinated Note or maintaining, supervising or reviewing any records relating to such beneficial ownership interests. Notwithstanding the foregoing, nothing herein shall prevent the Company or any agent of the Company from giving effect to any written certification, proxy or other authorization furnished by a Depositary or impair, as between a Depositary and such holders of beneficial interests, the operation of customary practices governing the exercise of the rights of the Depositary (or its nominee) as holder of any Subordinated Note.
6.Events of Default; Acceleration.  Each of the following events shall constitute an “Event of Default”:

(a)the entry of a decree or order for relief in respect of the Company by a court having jurisdiction in the premises in an involuntary case or proceeding under any applicable bankruptcy, insolvency, or reorganization law, now or hereafter in effect of the United States or any political subdivision thereof, and such decree or order will have continued unstayed and in effect for a period of sixty (60) consecutive calendar days;

(b)the commencement by the Company of a voluntary case under any applicable bankruptcy, insolvency or reorganization law, now or hereafter in effect of the United States or any political subdivision thereof, or the consent by the Company to the entry of a decree or order for relief in an involuntary case or proceeding under any such law;

(c)the Company (i) becomes insolvent or is unable to pay its debts as they mature, (ii) makes an assignment for the benefit of creditors, (iii) admits in writing its inability to pay its debts as they mature, or (iv) ceases to be a bank holding company or financial holding company under the Bank Holding Company Act of 1956, as amended;

(d)the failure of the Company to pay any installment of interest on any of the Subordinated Notes as and when the same will become due and payable, and the continuation of such failure for a period of fifteen (15) consecutive calendar days;

(e)the failure of the Company to pay all or any part of the principal of any of the Subordinated Notes as and when the same will become due and payable;

(f)the liquidation of the Company (for the avoidance of doubt, “liquidation” does not include any merger, consolidation, sale of equity or assets or reorganization (exclusive of a reorganization in bankruptcy) of the Company or any of its subsidiaries);

(g)the failure of the Company to perform any other covenant or agreement on the part of the Company contained in the Subordinated Notes, and the continuation of such failure for a period of thirty (30) consecutive calendar days after the date on which notice specifying such failure, stating that such notice is a “Notice of Default” hereunder and demanding that the Company remedy the same, will have been given, in the manner set forth in Section 22, to the Company by a Noteholder; or

(h)the default by the Company under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company having an aggregate principal amount outstanding of at least $25,000,000, whether such indebtedness now exists or is created or incurred in the future, which default (i) constitutes a failure to 
A-12

pay any portion of the principal of such indebtedness when due and payable after the expiration of any applicable grace period or (ii) results in such indebtedness becoming due or being declared due and payable prior to the date on which it otherwise would have become due and payable without, in the case of clause (i), such indebtedness having been discharged or, in the case of clause (ii), without such indebtedness having been discharged or such acceleration having been rescinded or annulled.

Unless the principal of this Subordinated Note already shall have become due and payable, if an Event of Default described in Section 6(a) or Section 6(b) shall have occurred and be continuing, the principal amount of this Subordinated Note shall be immediately due and payable without notice, demand, declaration or other action on the part of the Noteholder.  The Company waives demand, presentment for payment, notice of nonpayment, notice of protest and all other notices.  Notwithstanding the foregoing, because the Company will treat the Subordinated Notes as Tier 2 Capital, upon the occurrence of an Event of Default other than an Event of Default described in Section 6(a) or Section 6(b), the Noteholders may not accelerate the Stated Maturity of the Subordinated Notes and make the principal of, and any accrued and unpaid interest on, the Subordinated Notes, immediately due and payable.  If any Event of Default occurs and is continuing, the Noteholder may also pursue any other available remedy to collect the payment of principal of, and interest on, the Subordinated Notes then due and payable or to enforce the performance of any provision of the Subordinated Notes or the Note Purchase Agreement.  The Company, within forty-five (45) calendar days after the receipt of written notice from any Noteholder of the occurrence of an Event of Default with respect to this Subordinated Note, shall mail to all Noteholders, at their addresses shown on the Security Register (as defined herein), such written notice of Event of Default, unless such Event of Default shall have been cured or waived before the giving of such notice as certified by the Company in writing.

7.Failure to Make Payments.  In the event of an Event of Default under Section 6(c), Section 6(d) or Section 6(e), the Company will, upon demand of the Noteholder, pay to the Noteholder the amount then due and payable on this Subordinated Note for principal and interest (without acceleration of this Subordinated Note in any manner), with interest on the overdue principal and interest at the rate borne by this Subordinated Note, to the extent permitted by applicable law.  If the Company fails to pay such amount upon such demand, the Noteholder may, among other things, institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company and collect the amounts adjudged or decreed to be payable in the manner provided by law out of the property of the Company.

Upon the occurrence of a failure by the Company to make any required payment of principal or interest on this Subordinated Note or an Event of Default, until such failure or Event of Default is cured by the Company or waived by the Noteholders in accordance with Section 17 hereof, the Company shall not, except as required by any federal or state governmental agency:  (a) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Company’s capital stock; (b) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any indebtedness of the Company that ranks equal with or junior to the Subordinated Notes; or (c) make any payments under any guarantee that ranks equal with or junior to the Subordinated Notes, other than (i) any dividends or distributions payable solely in shares of, or options, warrants or rights to subscribe for or purchase shares of, any class of the Company’s common stock; (ii) any declaration of a non-cash dividend in connection with the implementation of a shareholders’ rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto; (iii) as a result of a reclassification of the Company’s capital stock or the exchange or conversion of one class or series of the Company’s capital stock for another class or series of the Company’s capital stock; (iv) the purchase of fractional interests in shares of the Company’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged; or (v) purchases of any class of the Company’s common stock related to the issuance of common stock or rights under any benefit plans for the Company’s directors, officers or employees or any of the Company’s dividend reinvestment plans.

8.Affirmative Covenants of the Company.

(a)Notice of Certain Events.  To the extent permitted by applicable statute, rule or regulation, the Company shall provide written notice to the Noteholder of the occurrence of any of the following events as soon as practicable, but in no event later than thirty (30) Business Days following the Company becoming aware of the occurrence of such event:
A-13

(i)the common equity Tier 1 capital to total risk-weighted assets ratio, the Tier 1 capital to total risk-weighted assets ratio, the total capital to total risk-weighted assets ratio, or the Tier 1 capital to average total assets ratio (Tier 1 leverage ratio) of Union Bank, National Association, the Company’s wholly-owned banking subsidiary (the “Bank”) becomes less than four and one half percent 4.5%), six percent (6.0%), eight (8.0%), or seven percent (7.0%), respectively;

(ii)the Company or Bank, or any executive officer of the Company or Bank, becomes subject to any formal, written regulatory enforcement action (as defined by the applicable regulatory agency); or

(iii)a transaction results in a change in ownership of twenty-five percent (25%) or more of the outstanding securities of the Company entitled to vote for the election of directors.

(b)Payment of Principal and Interest.  The Company covenants and agrees for the benefit of the Noteholder that it will duly and punctually pay the principal of, and interest on, this Subordinated Note, in accordance with the terms hereof.

(c)Maintenance of Office.  The Company will maintain an office or agency in the city of  Morrisville, Vermont where Subordinated Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Company in respect of the Subordinated Notes may be served.  The Company may also from time to time designate one or more other offices or agencies where the Subordinated Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided that no such designation or rescission will in any manner relieve the Company of its obligation to maintain an office or agency in the city of Morrisville, Vermont.  The Company will give prompt written notice to the Noteholders of any such designation or rescission and of any change in the location of any such other office or agency.

(d)Corporate Existence.  The Company will do or cause to be done all things necessary to preserve and keep in full force and effect:  (i) the corporate existence of the Company; (ii) the existence (corporate or other) of each subsidiary; and (iii) the rights (charter and statutory), licenses and franchises of the Company and its subsidiary; provided, however, that the Company will not be required to preserve the existence (corporate or other) of any of its subsidiaries or any such right, license or franchise of the Company or any of its subsidiaries if the Board of Directors of the Company determines that the preservation thereof is no longer desirable in the conduct of the business of the Company and its subsidiaries taken as a whole and that the loss thereof will not be disadvantageous in any material respect to the Noteholders.

(e)Maintenance of Properties.  The Company will, and will cause each of its subsidiaries to, cause all its properties used or useful in the conduct of its business to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that nothing in this Section 8 will prevent the Company or any subsidiary from discontinuing the operation and maintenance of any of their respective properties if such discontinuance is, in the judgment of the Board of Directors of the Company or of any subsidiary, as the case may be, desirable in the conduct of its business.

(f)Compliance Certificate.  The Company will deliver to the Noteholders, within one hundred twenty (120) calendar days after the end of each fiscal year, an Officer’s Certificate covering the preceding calendar year, stating whether or not, to the best of his or her knowledge, the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Subordinated Note (without regard to notice requirements or periods of grace) and if the Company will be in default, specifying all such defaults and the nature and status thereof of which he or she may have knowledge.

(g)Tier 2 Capital.  Whether or not the Company is subject to consolidated capital requirements under applicable regulations of the Federal Reserve, if all or any portion of the Subordinated Notes ceases to qualify as Tier 2 Capital, other than due to the limitation imposed on the capital treatment of subordinated debt during the five (5) years immediately preceding the Stated Maturity of the Subordinated Notes, the Company will promptly notify the Noteholder and thereafter, subject to the Company’s right to redeem the Subordinated Notes under such circumstances pursuant to the terms of the Subordinated Notes, if requested by the Company, the Company and the 
A-14

Noteholder will work together in good faith to execute and deliver all agreements as reasonably necessary in order to restructure the applicable portions of the obligations evidenced by the Subordinated Notes to qualify as Tier 2 Capital; provided, however, that nothing contained in this Section 8(g) shall limit the Company’s right to redeem the Subordinated Notes upon the occurrence of a Tier 2 Capital Event pursuant to Section 4(a) or Section 4(b).

(h)Compliance with Laws.  The Company shall comply with the requirements of all laws, regulations, orders and decrees applicable to it or its properties, except for such noncompliance that would not reasonably be expected to have a Material Adverse Effect (as such term is defined in the Purchase Agreement) on the Company and its subsidiaries taken as a whole.

(i)Taxes and Assessments.  The Company shall punctually pay and discharge all material taxes, assessments, and other governmental charges or levies imposed upon it or upon its income or upon any of its properties; provided that no such taxes, assessments or other governmental charges need be paid if they are being contested in good faith by the Company.

9.Negative Covenants of the Company.

(a)Limitation on Dividends.  The Company shall not declare or pay any dividend or make any distribution on capital stock or other equity securities of any kind of the Company if the Company is not “well capitalized” for regulatory capital purposes under Section 225.2(r) of Regulation Y immediately prior to the declaration of and after giving effect to such dividend or distribution, except for dividends payable solely in shares of common stock of the Company.

(b)Merger or Sale of Assets.  The Company shall not merge into another entity, effect a Change in Bank Control (as defined below), or convey, transfer or lease substantially all of its properties and assets to any person, unless:

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

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

“Change in Bank Control” means the sale, transfer, lease or conveyance by the Company, or an issuance of stock by the Bank, resulting in ownership by the Company of less than eighty percent (80%) of the Bank.

10.Denominations.  The Subordinated Notes are issuable only in registered form without interest coupons in minimum denominations of $100,000 and integral multiples of $10,000 in excess thereof.

11.Charges and Transfer Taxes.  No service charge will be made for any registration of transfer or exchange of this Subordinated Note, or any redemption or repayment of this Subordinated Note, or any conversion or exchange of this Subordinated Note for other types of securities or property, but the Company may require payment of a sum sufficient to pay all taxes, assessments or other governmental charges that may be imposed in connection with the transfer or exchange of this Subordinated Note from the Noteholder requesting such transfer or exchange.

12.Payment Procedures.  Payment of the principal and interest payable on the Stated Maturity will be made by check, by wire transfer or by Automated Clearing House (ACH) transfer in immediately available funds to a bank account in the United States designated by the Noteholder if such Noteholder shall have previously provided wire instructions to the Company, upon presentation and surrender of this Subordinated Note at the Payment Office (as defined herein) or at such other place or places as the Company shall designate by notice to the Noteholders as the Payment Office, provided that this Subordinated Note is presented to the Company in time for the Company to 
A-15

make such payments in such funds in accordance with its normal procedures.  Payments of interest (other than interest payable on the Stated Maturity) shall be made by wire transfer in immediately available funds or check mailed to the registered Noteholder, as such Person’s address appears on the Security Register (as defined herein).  Interest payable on any Interest Payment Date shall be payable to the Noteholder in whose name this Subordinated Note is registered at the close of business on the fifteenth (15th) calendar day prior to the applicable Interest Payment Date, without regard to whether such date is a Business Day, except that interest not paid on the Interest Payment Date, if any, will be paid to the Noteholder in whose name this Subordinated Note is registered at the close of business on a special record date fixed by the Company (a “Special Record Date”), notice of which shall be given to the Noteholder not less than ten (10) calendar days prior to such Special Record Date.  To the extent permitted by applicable law, interest shall accrue, at the rate at which interest accrues on the principal of this Subordinated Note, on any amount of principal or interest on this Subordinated Note not paid when due.  All payments on this Subordinated Note shall be applied first against interest due hereunder; and then against principal due hereunder.  The Noteholder acknowledges and agrees that the payment of all or any portion of the outstanding principal amount of this Subordinated Note and all interest hereon shall be pari passu in right of payment and in all other respects to the other Subordinated Notes.  In the event that the Noteholder receives payments in excess of its pro rata share of the Company’s payments to the Noteholders of all of the Subordinated Notes, then the Noteholder shall hold in trust all such excess payments for the benefit of the Noteholders of the other Subordinated Notes and shall pay such amounts held in trust to such other Noteholders upon demand by such Noteholders.

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

14.Registration of Transfer, Security Register.  Except as otherwise provided herein, this Subordinated Note is transferable in whole or in part, and may be exchanged for a like aggregate principal amount of Subordinated Notes of other authorized denominations, by the Noteholder in person, or by its attorney duly authorized in writing, at the Payment Office or the offices of the Registrar.  The Company or the Registrar shall maintain a register providing for the registration of the Subordinated Notes and any exchange or transfer thereof (the “Security Register”).  Upon surrender or presentation of this Subordinated Note for exchange or registration of transfer, the Company or the Registrar shall execute and deliver in exchange therefor a Subordinated Note or Subordinated Notes of like aggregate principal amount, each in a minimum denomination of $100,000 or any amount in excess thereof which is an integral multiple of $10,000 (and, in the absence of an opinion of counsel satisfactory to the Company to the contrary, bearing the restrictive legend(s) set forth hereinabove) and that is or are registered in such name or names requested by the Noteholder.  Any Subordinated Note presented or surrendered for registration of transfer or for exchange shall be duly endorsed and accompanied by a written instrument of transfer in such form as is attached hereto and incorporated herein, duly executed by the Noteholder or its attorney duly authorized in writing, with such tax identification number or other information for each Person in whose name a Subordinated Note is to be issued, and accompanied by evidence of compliance with any restrictive legend(s) appearing on such Subordinated Note or Subordinated Notes as the Company may reasonably request to comply with applicable law.  No exchange or registration of transfer of this Subordinated Note shall be made on or after (i) the fifteenth (15th) day immediately preceding the Stated Maturity or (ii) the due delivery of notice of redemption.

15.Priority.  The Subordinated Notes rank pari passu among themselves and pari passu, in the event of any insolvency proceeding, dissolution, assignment for the benefit of creditors, reorganization, restructuring of debt, marshaling of assets and liabilities or similar proceeding or any liquidation or winding up of the Company, with all other present or future unsecured subordinated debt obligations of the Company, except any unsecured subordinated debt that, pursuant to its express terms, is senior or subordinate in right of payment to the Subordinated Notes and all Senior Indebtedness.

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

17.Waiver and Consent.

A-16

(a)Any consent or waiver given by the Noteholder shall be conclusive and binding upon such Noteholder and upon all future Noteholders of this Subordinated Note and of any Subordinated Note issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Subordinated Note.  This Subordinated Note may also be amended or any term or provision hereof may be waived pursuant to, and in accordance with, the provisions of Section 7.3 of the Purchase Agreement.  No delay or omission of the Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.  Any insured depository institution which shall be a Noteholder or which otherwise shall have any beneficial ownership interest in this Subordinated Note shall, by its acceptance of such Subordinated Note (or beneficial interest therein), be deemed to have waived any right of offset with respect to the repayment of the indebtedness evidenced thereby.

(b)No waiver or amendment of any term, provision, condition, covenant or agreement in the Subordinated Notes shall be effective except with the consent of the Noteholders holding more than fifty percent (50%) in aggregate principal amount (excluding any Subordinated Notes held by the Company or any of its Affiliates) of the Subordinated Notes at the time outstanding; provided, however, that without the consent of each Noteholder of an affected Subordinated Note, no such amendment or waiver may:  (i) reduce the principal amount of any Subordinated Note; (ii) reduce the rate of or change the time for payment of interest on any Subordinated Note; (iii) extend the maturity of any Subordinated Note; (iv) change the currency in which payment of the obligations of the Company under the Subordinated Notes are to be made; (v) lower the percentage of aggregate principal amount of outstanding Subordinated Notes required to approve any amendment of the Subordinated Notes; (vi) make any changes to Section 4(c) (Partial Redemption); Section 5 (Events of Default; Acceleration); Section 7 (Failure to Make Payments); Section 8 (Affirmative Covenants of the Company); Section 9 (Negative Covenants of the Company); Section 15 (Priority) or Section 17 (Waiver and Consent) of the Subordinated Notes that adversely affects the rights of any Noteholder; or (vii) disproportionately affect any of the Noteholders of the then outstanding Subordinated Notes.  Notwithstanding the foregoing, the Company may amend or supplement the Subordinated Notes without the consent of the Noteholders to cure any ambiguity, defect or inconsistency or to provide for uncertificated Subordinated Notes in addition to or in place of certificated Subordinated Notes, or to make any change that does not adversely affect the rights of any Noteholder of any of the Subordinated Notes.  No failure to exercise or delay in exercising, by any Noteholder of the Subordinated Notes, of any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude any other or further exercise thereof, or the exercise of any other right or remedy provided by law, except as restricted hereby.  The rights and remedies provided in this Subordinated Note are cumulative and not exclusive of any right or remedy provided by law or equity.  No notice or demand on the Company in any case shall, in itself, entitle the Company to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Noteholders to any other or further action in any circumstances without notice or demand.  No consent or waiver, expressed or implied, by the Noteholders to or of any breach or default by the Company in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of the same or any other obligations of the Company hereunder.  Failure on the part of the Noteholders to complain of any acts or failure to act or to declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by the Noteholders of their rights hereunder or impair any rights, powers or remedies on account of any breach or default by the Company.

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

19.Successors and Assigns.  This Subordinated Note shall be binding upon the Company and inure to the benefit of the Noteholder and its respective successors and permitted assigns.  The Noteholder may assign all, or any part of, or any interest in, the Noteholder’s rights and benefits hereunder.  To the extent of any such assignment, such assignee shall have the same rights and benefits against the Company and shall agree to be bound by and to comply with the terms and conditions of the Purchase Agreement as it would have had if it were the Noteholder hereunder.

20.No Sinking Fund; Convertibility.  This Subordinated Note is not entitled to the benefit of any sinking fund.  This Subordinated Note is not convertible into or exchangeable for any of the equity securities, other securities or assets of the Company or any subsidiary.
A-17

21.No Recourse Against Others.  No recourse under or upon any obligation, covenant or agreement contained in this Subordinated Note, or for any claim based thereon or otherwise in respect thereof, will be had against any past, present or future shareholder, employee, officer, or director, as such, of the Company or of any predecessor or successor, either directly or through the Company or any predecessor or successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of this Subordinated Note by the Noteholder and as part of the consideration for the issuance of this Subordinated Note.

22.Notices.  All notices to the Company under this Subordinated Note shall be in writing and shall be delivered personally, or mailed, postage prepaid, by U.S. registered or certified mail, return receipt requested, or sent by a responsible overnight commercial courier promising next business day delivery, to the Company at 20 Lower Main Street, PO Box 667, Morrisville, VT 05661, Attention:  David S. Silverman, President and CEO, or to such other address as the Company may provide to the Noteholders (the “Payment Office”), or sent by email to the Company at dsilverman@unionbankvt.com.   All notices to the Noteholders shall be in writing and shall be mailed, postage prepaid, by United States Postal Service registered or certified mail, return receipt requested, or sent by responsible overnight commercial courier, promising next business day delivery, or sent by email to each Noteholder at such Noteholder’s address as set forth in the Security Register.  Any notice given in accordance with the foregoing shall be deemed given when delivered personally or, if mailed, three (3) Business Days after it shall have been deposited in the U.S. mail as aforesaid or, if sent by overnight courier, the Business Day following the date of delivery to such courier (provided that next business day delivery was requested), or if emailed, upon confirmation of receipt.

23.Further Issues.  The Company may, without the consent of the Noteholders of the Subordinated Notes, create and issue additional notes having the same terms and conditions of the Subordinated Notes (except for the Issue Date) so that such further notes shall be consolidated and form a single series with the Subordinated Notes.

24.Governing Law; Interpretation.  THIS SUBORDINATED NOTE WILL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF VERMONT AND WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF VERMONT WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.  THIS SUBORDINATED NOTE IS INTENDED TO MEET THE CRITERIA FOR QUALIFICATION OF THE OUTSTANDING PRINCIPAL AS TIER 2 CAPITAL UNDER THE REGULATORY GUIDELINES OF THE FEDERAL RESERVE, AND THE TERMS HEREOF SHALL BE INTERPRETED IN A MANNER TO SATISFY SUCH INTENT.

25.Submission to Jurisdiction.  THE NOTEHOLDER HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE COURTS SITTING IN LAMOILLE COUNTY, VERMONT OR THE FEDERAL COURTS SITTING IN THE DISTRICT OF VERMONT OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUBORDINATED NOTE AND THE TRANSACTIONS RELATED HERETO, REGARDLESS OF WHETHER A CLAIM SOUNDS IN CONTRACT, TORT, OR OTHERWISE AND REGARDLESS OF WHETHER A CLAIM IS AT LAW OR IN EQUITY, AND THE  NOTEHOLDER HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED ONLY IN SUCH VERMONT STATE OR FEDERAL COURT.  The Noteholder, on behalf of itself and its successors and assigns, hereby irrevocably waives, to the fullest extent permitted by law, any objection it may now or hereafter have to the laying of venue in any action or proceeding in any such court as well as any right it may now or hereafter have to remove such action or proceeding, once commenced, to another court on the grounds of Forum Non Conveniens or otherwise.  The Noteholder agrees that a final, non-appealable judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

[Signature Page Follows]

A-18

IN WITNESS WHEREOF, the undersigned has caused this Subordinated Note to be duly executed and attested.

															
			UNION BANKSHARES, INC.	
					
					
			Name:  David S. Silverman	
			Titel:  President and CEO	
					
	ATTEST:			
					
					
	Name:  Karyn J. Hale			
	Title:  Vice President, Treasurer and CFO			

A-19

ASSIGNMENT FORM

To assign this Subordinated Note, fill in the form below:  (I) or (we) assign and transfer this Subordinated Note to:

									
			
		(Print or type assignee’s name, address and zip code)	
			
			
		(Print or type assignee’s social security or tax identification no.)	

and irrevocably appoint _________________________________ as agent to transfer this Subordinated Note on the books of the Company.  The agent may substitute another to act for it.

															
	Date:		Your signature:		
				(Sign exactly as your name appears on the face of this Subordinated Note)
			
					
			Tax identification no:		
					
					
	Signature guarantee:			
		(Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”.)
	

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

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

CHECK ONE BOX BELOW:
☐        (1)    acquired for the undersigned’s own account, without transfer;

☐        (2)    transferred to the Company;

☐        (3)    transferred in accordance and in compliance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”);

☐         (4)    transferred under an effective registration statement under the Securities Act;

☐        (5)    transferred in accordance with and in compliance with Regulation S under the Securities Act;

☐        (6)    transferred to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act);

☐        (7)    transferred to an “accredited investor” (as defined in Rule 501(a)(4) under the Securities Act), not referred to in item (6) that has been provided with the information designated under Section 4(d) of the Securities Act; or
A-20

☐        (8)    transferred in accordance with another available exemption from the registration requirements of the Securities Act.

Unless one of the boxes is checked, the Company will refuse to register this Subordinated Note in the name of any Person other than the registered holder thereof; provided, however, that if box (5), (6), (7) or (8) is checked, the Company may require, prior to registering any such transfer of this Subordinated Note, in its sole discretion, such legal opinions, certifications and other information as the Company may reasonably request to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, such as the exemption provided by Rule 144 under the Securities Act.

															
			Assignee's signature:		
					
					
	Signature guarantee:			
		(Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Exchange Act Rule 17Ad-l5).
	

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

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

															
	Date:		Assignee's signature		

A-21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}]]