Document:

Exhibit No. 10.1

 

December 1, 2007

CONSULTING AGREEMENT

 

This is an agreement between Venture Catalyst, LLC, a Delaware Corporation (hereafter “VenCat”) having offices located at 170 East 77th Street, Apt. 10F, New York, NY 10021, and Sibling Entertainment Group, Inc., a New York Corporation (hereafter “SEGI”) with a principal place of business located at 511 West 25th Street, Suite 503, New York, NY 10001.

WHEREAS, VenCat is in the business of providing a variety of corporate services including the introduction of clients to potential “sponsors” for SEGI’s public traded securities, investment bankers, strategic partners, and other entities and persons that can benefit SEGI’s presence in the public markets; and

WHEREAS, SEGI is not currently trading on any exchange or public market and has not been issued a trading symbol, but is seeking and preparing the necessary registration documents to allow SEGI proceed with its filing to be traded in the public stock markets beginning with the over-the-counter markets (OTC:BB) under the name of Sibling Entertainment Group, Inc.; and

WHEREAS, SEGI has entered into a Definitive Agreement with Sona Development Corp. (“SONA”), publicly traded company (OTCBB:SDVC) for the acquisition of all of SEGI’s assets and liabilities in exchange for stock and warrants dated June 28, 2006 (“the Definitive Agreement”).

WHEREAS, SEGI has entered into a Letter of Agreement dated May 31, 2006 with Dick Foster Productions, Inc. (“DFP”) to acquire 80% of DFP for $7.2 million (the “DFPLOI”) and SEGI seeks additional investment banking services to allow SEGI to fund the acquisition in accordance with the DFPLOI and subsequent definitive agreement with a closing on or before February 28, 2007; and

WHEREAS; Upon closing with DFP, SEGI seeks ongoing and continued advice between the investment banking firms, financial structure and other financial arrangements in the ownership and completion of all purchase payments required by the DFPLOI and subsequent definitive agreement for the purchase of DFP.

WHEREAS, SEGI  seeks to increase and strengthen its awareness within the public stock markets, brokerage firms, investment bankers and other corporate resources and desires to select one or more brokerage firms to provide placement services of current and future offerings issued by SEGI; and 

WHEREAS, SEGI seeks assistance in the management, correspondence and maintenance of the relationship(s) between all brokerage firms, investment bankers in the management, structure and solicitation of private offerings by such brokerage firms; and

WHEREAS, SEGI is preparing public statements and other collateral material including, but not limited to, press releases, corporate biographies, websites and other graphic, media or other presentation material as well as preparing its ongoing strategic and corporate objectives; and 

 

Page 4 of 10

 

 

 

WHEREAS, VenCat has the knowledge and the ability to introduce third parties previously unknown to SEGI that will assist SEGI in its corporate strategies and objectives and VenCat can provide SEGI with such services including the management of investment banking relationships whether introduced by VenCat or by other third parties.

NOW THEREFORE, VenCat and SEGI enter into the following agreement intending to be legally bound hereby:

	
            I.
 	
            Financial Advisory Services.
 

VenCat has been engaged as a non-exclusive strategic financial advisor to SEGI, its successors, subsidiaries and affiliates with respect to corporate finance, financial advisory, formulation of public statements and other collateral material, and other business development for the term of this Agreement. In this regard, VenCat shall devote such business, time and attention to matters on which SEGI shall request its services as shall be reasonably determined by Vencat and SEGI.

During the term of this agreement, VenCat shall provide SEGI with a variety of corporate and financial services and increase and expand such services upon the occurrence of future events. VenCat shall provide such regular and customary advisory services as are reasonably requested by SEGI, provided that VenCat shall not be required to undertake duties not reasonably within the scope of the advisory services in which it is generally engaged. In performance of its duties, VenCat shall provide SEGI with the benefits of its judgment and efforts on a commercially reasonable basis; provided, however, it is understood and acknowledged by SEGI that the value of VenCat’s advice is not measurable in a quantitative manner and that VenCat shall not be obligated to spend any specific amount of time in doing so. VenCat shall provide services, but not limited to, the services defined below:

	
            a)
 	
            advise, review and assist in the formation of corporate goals and their implementation; and
 
	
            b)
 	
            advise, review and assist in the the financial structuring and obtaining financing for SEGI; and
 
	
            c)
 	
            advise, review and assist SEGI’s corporate organization, selection of personnel and of needed specialty skills; and
 
	
            d)
 	
            advise, review and assist SEGI in formulating long and short-term goals focussed on enhancing corporate and shareholder value and increasing SEGI’s exposure to the investment community; and
 
	
            e)
 	
            advise, review and assist in the drafting of certain mergers or acquisitions documents initiated and sourced by SEGI; and
 
	
            f)
 	
            advise, review and assist in the negotiation of the brokerage service and placement agreements, including the rates and terms for placement and brokerage services provided by the Brokerage Firm; and
 
	
            g)
 	
            advise, review and assist in the drafting of ongoing critical communications between SEGI and the Brokerage Firm; and
 
	
            h)
 	
            advise regarding SEGI’s public press releases and presentation and marketing materials and other materials used by the Brokerage Firm with respect to offerings and communication made by the Brokerage Firm with respect to SEGI; and
 

 

 

Page 5 of 10

 

 

 

	
            i)
 	
            advise, review and assist in negotiating certain additional brokerage service and placement agreements, including the rates and terms for placement and brokerage services provided by the Brokerage Firm related to DFP; and
 
	
            j)
 	
            advise,  review and assist in the drafting of certain ongoing communication issued by the Brokerage Firm to the public requiring SEGI’s review and approval related to DFP; and
 
	
            k)
 	
            advise regarding SEGI’s substantive public press releases and presentation and marketing materials and other materials used by the Brokerage Firm with respect to offerings and communication made by the Brokerage Firm with respect to SEGI related to DFP.
 

	
            II.
 	
            M & A Services.
 

At the request of SEGI, VenCat may also provide general advice in connection with any proposed acquisition transactions or strategic investments initated and sourced by SEGI.

	
            III.
 	
            Term of Agreement.
 

The term of this Agreement shall be for a period of twelve (12) months beginning December 1, 2006 through November 30, 2007.

	
            IV.
 	
            Compensation and Expenses.
 

In return for all past and future services provided by VenCat during the term of this Agreeement, SEGI agrees to pay to VenCat, or its succesors, assigns or affiliates, compensation in the form of cash, warrants and restricted common shares to be issued by Sibling Entertainment Group, Inc. or its successor(s) in interest as follows: 

A. Cash Payment: 

SEGI shall pay VenCat cash compensation of One Hundred and Fifty Thousand ($150,000) Dollars in twenty-four (24) equal installments of Six Thousand Two Hundred and Fifty ($6,250.00) Dollars per month beginning on December 1, 2006. All Subsequent payments shall be made to VenCat on the first workday of every month. 

 

B. Warrant Payment: 

 

Upon the closing of the acquisition of DFP by SEGI, SEGI shall issue to VenCat  One Hundred Twenty Thousand (120,000) Warrants per calendar quarter  for the remainder of the Term of this Agreement for a total not to exceed Four Hundred Eighty Thousand (480,000) Warrants. Each warrant shall entitle VenCat to purchase restricted common shares to be issued by SEGI or its successor . Aforementioned warrants will be valid for Five (5) years from the date of issue and each warrant shall have a strike price of one hundred and ten (110%) percent of the average closing price of the previous twenty (20) trading days if SEGI or its successor is trading in a public market, but if the stock has not yet traded on a public exchange, the strike price will be fifty-five ($0.55) cents. Regardless of whether SEGI or
its successor is trading, the first One Hundred Twenty Thousand (120,000) Warrants issued shall have a strike price of fifty-fice ($0.55) cents.

 

Page 6 of 10

 

 

 

 

	
            C. Stock Payment
 

 

SEGI shall issue to VenCat  Twenty five thousand (25,000) shares of SEGI or its successor on the first workday of every month through the Term of this Agreement.

	
            D. Contingency upon Sona’s Approval
 

 

All Warrants and Stock compensation defined above is contigent upon Sona’s approval.

It is understood that these shares are not registered with the SEC, and shall be subject to Rule 144 of the SEC Ad of 1934 as amended and all other applicable SEC Regulations.

 

SEGI agrees, within forty-five (45) days of voucher submission, to reimburse VenCat for all expenses incurred by VenCat related to the performance of its duties pursuant to this agreement for the term of the agreement, including but not limited to all costs of travel, lodging, meals on behalf of SEGI, while VenCat is engaged in the performance of activities on behalf of SEGI. All expenses greater than Five Hundred ($500.00) dollars per month will be pre-approved by SEGI in writing. Any travel and lodging costs shall also be pre-approved by SEGI in writing.

 

	
            V.
 	
            Binding Upon Succesors and Assigns.
 

 

It is contemplated that SEGI may undergo or is undergoing a transaction to  Merge, Acquire and/or transfer some or all of its rights, title and interests to a partner or successor entity or entities. Should that occur and the matter be completed, all rights and obligations under this Agreement shall transfer to the successor entity.

 

	
            VI.
 	
            Information.
 

SEGI will furnish to VenCat on a timely basis, and in a satisfactory format and detail, such data and information as VenCat may reasonably request. SEGI represents and warrants that such data and information is or will be accurate and complete in all material respects. SEGI acknowledges that VenCat is relying, without independent verification, on the accuracy and completeness of all information furnished. SEGI further agrees that its failure or inability to expeditiously provide such data or information, or to secure timely access to key personnel and facilities, may have a material adverse affect on the scope, timing and success of this engagement.

 

	
            VII.
 	
            Confidentiality.
 

VenCat agrees to keep all non-public information that it receives from SEGI confidential and shall not disclose such information to any third party so long as it remains non-public, unless disclosure is required by law as reasonably determined by VenCat’s counsel or is subject to a subpoena issued by any governmental or regulatory agency or body (provided that VenCat shall immediately notify SEGI of the issuance of any such subpoena). VenCat will not make any use of such information, except in connection with their services hereunder. Other than as agreed, required by law or as required by implementation of any financing transaction and/or Acquisition Transaction, SEGI shall not convey to the public through advertising, public relations, news, mail, direct transmittal, or other media, nor through any offering circular or registration statement, prospectus, appraisal, loan or other agreements or
documents all or any part of written or oral presentation with respect to any financing transactions and/or Acquisition Transaction, 

 

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nor other communication or documentation delivered, nor any reference to VenCat or to any individuals assigned by VenCat to this engagement, without the prior written consent of VenCat. 

 

	
            VIII.
 	
            Indemnity.
 

SEGI agrees to indemnify and hold harmless VenCat and its agents, affiliates, directors, officers and employees (the “Indemnitees”), from and against all claims, damages, losses, liabilities and expenses as the same are incurred (including any legal or other expenses incurred in connection with investigating or defending against any such loss, claim, damage or liability or any action in respect thereof), related to or arising out of its activities hereunder. Notwithstanding the foregoing, SEGI shall not be liable for indemnity under this Agreement in respect of any loss, claim, damage, liability or expense in which a court of competent jurisdiction finally concludes arose from VenCat’s gross negligence or wanton misconduct in performing its services under this Agreement. This provision shall survive any termination of VenCat’s engagement. 

 

SEGI agrees that any and all decisions, actions and results with regards to SEGI’s operating, financial and other business plans are the sole responsibility of SEGI’s management, and that VenCat’s engagement will in no way expose VenCat to any liability, including but not limited to, liability for any financing, operating, financial, merger, acquisition, managerial, or other results achieved by SEGI, as well as the implementation of, or the results achieved by, strategies or business plans on which VenCat has provided review or advice. It is understood by SEGI that in providing its financial advisory services hereunder, VenCat is providing no assurances or guarantees of any particular results relating to corporate finance matters such as, among others, stock price, financing proceeds, shareholder matters, analytical coverage etc.

 

 

	
            IX.
 	
            Other Activities.
 

SEGI acknowledges and provides its consent to any possible conflicts of interest that may arise since VenCat and its affiliates: (i) are in the business of providing advisory services (of all types contemplated by this agreement) to others, including other businesses that may be competitive with SEGI; and (ii) are also in the business of providing merchant banking services and making direct acquisitions and/or investments in others, including other businesses that may be competitive with SEGI. Nothing herein contained shall be construed to limit or restrict VenCat or its affiliates in making any investments, acquisitions, acquiring any positions, conducting such business with respect to others or in rendering such advice to others. 

 

Page 8 of 10

 

 

 

	
            X.
 	
            Arbitration.
 

 

Controversies or claims arising out of or relating to this Agreement, or the breach thereof, shall be resolved by the American Arbitration Association pursuant to its Rules of Commercial Arbitration, and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof, Arbitration hearings shall occur in New York City, New York after an attempt is made by both parties to resolve the issue amicably.

	
            XI.
 	
            New York Law.
 

This Agreement shall be governed by New York law, without regard to its conflict of laws principles. 

	
            XII.
 	
            Modification.
 

 

Any change or modification of this Agreement shall be valid only if the same is in writing and signed by the authorized representatives of both parties.

	
            XIII.
 	
            Waiver.
 

 

Failure of either party to enforce any provision of this Agreement shall not be considered a waiver of that party’s right to enforce said provision or any other provision included herein.

	
            XIV.
 	
            Survival.
 

 

To the extent that the provisions of this Agreement pertain to confidentiality, trade secrets, taxes, and/or payment, same shall survive termination and both parties agree to be bound thereby beyond termination.

	
            XV.
 	
            Complete Agreement
 

This Agreement supersedes any previous understandings or agreement between the parties and contains the entire agreement between the parties regarding the subject matter herein. Any changes to this Agreement must be made in writing and signed by duly authorized representatives of each party.

 

	
            XVI.
 	
            Savings Clause.
 

If any provision of this agreement is contrary to any federal statute or regulation, any state or local ordinance or regulation, the parties hereby declare that such provision shall be amended to conform to any such statutory or regulatory provision and in case of any such conflict with this agreement shall be interpreted and construed as if the offending provision herein has been in conformity with such statute, ordinance or regulation.

 

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            XVII.
 	
            Severability.
 

 

If any part of this agreement is determined invalid by a court or arbitrating body with proper jurisdiction the remainder of the agreement shall remain in full force and effect.

	
            XVIII.
 	
            Transferability.
 

 

The rights and obligations in this contract are not transferable without written consent of both parties.

	
            XIX.
 	
            Headings.
 

 

The headings used in this agreement are for convenience purposes only and shall not be construed to alter the meaning of the provisions in any way.

 

Venture Catalyst, LLC

 

	 By:
                   /s/
        Leslie Bocskor                                        
	      12/1/2006           

	  
	 Leslie
        Bocskor, President
	 Date
	  

				

 

Sibling Entertainment Group, Inc.

 

	 By:
                 /s/
        Mitchell Maxwell                                     
	      12/1/2006           

	  
	 Mitchell
        Maxwell, President
	 Date
	  

				

 

 

 

 

Page 10 of 10Exhibit 4.1

NEITHER THE WARRANT REPRESENTED BY THIS CERTIFICATE (THE "WARRANT") NOR THE
SHARES ISSUABLE UPON EXERCISE OF THEREOF (THE "WARRANT SHARES") HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
OR REGISTERED OR QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS. NEITHER THE
WARRANT NOR THE WARRANT SHARES MAY BE OFFERED, SOLD, OR TRANSFERRED UNTIL (I) A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR SUCH APPLICABLE STATE
SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO, OR (II) IN THE
OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY, REGISTRATION UNDER THE SECURITIES
ACT OR SUCH APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH
SUCH PROPOSED OFFER, SALE, OR TRANSFER.

Certificate No. ____           Warrant to Purchase ______ Shares of Common Stock
                                                         (subject to adjustment)

                        WARRANT TO PURCHASE COMMON STOCK
                                       of
                              FIRST IPSWICH BANCORP
                           Void after January 26, 2010

      THIS WARRANT certificate certifies that ________________________ (the
"Holder") is the owner of a warrant (the "Warrant") entitling it at any time
prior to the Expiration Date (as defined in Section 2 below) to purchase from
First Ipswich Bancorp, a Massachusetts chartered bank holding company
headquartered in Ipswich, Massachusetts (the "Company"), for a purchase price of
$8.00 per share (the "Exercise Price"), _________ shares of common stock, par
value $1.00 per share, of the Company (the "Common Stock" those shares, the
"Warrant Shares"), the number of Warrant Shares and the Exercise Price being
subject to adjustment as provided herein.

      1. Exercise of Warrant.

      (a) This Warrant is exercisable, at the option of the Holder, in whole or
in part at any time after issuance and prior to the Expiration Date upon
surrender of this warrant certificate to the Company, together with a duly
completed Notice of Exercise in the form attached hereto as Annex A and payment
to the Company, simultaneous with delivery of the completed Notice of Exercise,
of an amount equal to the Exercise Price multiplied by the number of Warrant
Shares issuable upon exercise of the Warrant. The amount payable by the Holder
on partial exercise is the amount obtained by multiplying the number of Warrant
Shares designated by the Holder in the Notice of Exercise by the Exercise Price
then in effect.
<PAGE>

      (b) Upon exercise of this Warrant as aforesaid, the person entitled to
receive the Warrant Shares issuable upon such exercise shall be treated for all
purposes as the holder of record of such shares as of the close of business on
the date of exercise. As promptly as practicable on or after such date, the
Company shall execute and deliver to the Holder of this Warrant a certificate or
certificates for the total number of whole Warrant Shares for which this Warrant
is being exercised, in such names and denominations as are requested by such
Holder. If this Warrant shall be exercised with respect to less than all of the
Warrant Shares, the Company, at its expense, will issue to the Holder a new
Warrant covering the number of Warrant Shares with respect to which this Warrant
shall not have been exercised, which new Warrant shall be identical to this
Warrant except for the number of Warrant Shares issuable upon exercise thereof.

      (c) The Company shall not be required to issue fractions of shares of
Common Stock on the exercise of this Warrant. If any fraction of a share of
Common Stock would, except for the provisions of this Section, be issuable on
the exercise of this Warrant (or specified portions thereof), the Company,
shall, upon such issuance, purchase such fraction for an amount in cash equal to
the current value of such fraction, computed on the basis of the last reported
closing price of the Common Stock on the securities exchange or quotation system
on which the shares of Common Stock are then listed or traded, as the case may
be, if any, on the last business day prior to the date of exercise upon which
such a sale shall have been effected, or, if the Common Stock is not so listed
or traded on an exchange or quotation system, as the Board of Directors of the
Company may in good faith determine.

      2. Expiration Date. Subject to the terms and conditions set forth herein,
this Warrant shall be exercisable in whole or in part at any time and from time
to time from the date hereof until 5:00 p.m. Ipswich, Massachusetts time on
January 26, 2010 (the "Expiration Date") and shall be void thereafter.

      3. Replacement of Warrant. On receipt of evidence reasonably satisfactory
to the Company of the loss, theft, destruction or mutilation of this Warrant
and, in the case of loss, theft or destruction, on delivery of an indemnity
agreement satisfactory in form and substance to the Company or, in the case of
mutilation, on surrender and cancellation of this Warrant, the Company at its
expense shall execute and deliver, in lieu of this Warrant, a new warrant of
like tenor and amount.
<PAGE>

      4. No Rights as Stockholder. This Warrant does not confer upon the Holder,
as such, any right whatsoever as a stockholder of the Company except as
otherwise expressly provided herein.

      5. Registration and Transfer on Company Books. Subject to the provisions
of Section 6, the Warrant may be transferred, in whole or in part, to any
person, by presentation of the Warrant to the Company with written instructions
for such transfer and by the execution by such transferee of an investment
letter in a form reasonably satisfactory to the Company. Prior to due
presentment for registration of transfer of the Warrant, the Company may deem
and treat the Holder as the absolute owner thereof, regardless of any notice to
the contrary. Upon registration of transfer, the Company shall issue a new
warrant certificate to the transferee and shall cancel the surrendered warrant
certificate.

      6. Covenants and Conditions. The above provisions are subject to the
following:

      (a) Neither this Warrant nor the Warrant Shares have been registered under
the Securities Act or any state securities laws ("Blue Sky Laws"). This Warrant
has been acquired for investment purposes and not with a view to distribution or
resale and may not be pledged, hypothecated, sold, made subject to a security
interest, or otherwise transferred without (i) an effective registration
statement for such Warrant under the Securities Act and such applicable Blue Sky
Laws, or (ii) an opinion of counsel reasonably satisfactory to the Company that
registration is not required under the Securities Act or under any applicable
Blue Sky Laws. Transfer of the Warrant Shares issued upon the exercise of this
Warrant shall be restricted in the same manner and to the same extent as the
Warrant and the certificates representing such Shares shall bear substantially
the following legend:

THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY
APPLICABLE STATE SECURITIES LAW AND MAY NOT BE TRANSFERRED UNTIL (i) A
REGISTRATION STATEMENT UNDER THE ACT OR SUCH APPLICABLE STATE SECURITIES LAWS
SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO, OR (ii) IN THE OPINION OF
COUNSEL ACCEPTABLE TO THE COMPANY REGISTRATION UNDER THE ACT OR SUCH APPLICABLE
STATE SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER.

      The Holder and the Company agree to execute such other documents and
instruments as counsel for the Company reasonably deems necessary to effect the
compliance of the issuance of this Warrant and any shares of Company Common
Stock issued upon exercise hereof with applicable federal and state securities
laws, including compliance with applicable exemptions from the registration
requirements of such laws.
<PAGE>

      (b) The Company covenants and agrees that all Warrant Shares which may be
issued upon exercise of this Warrant will, upon issuance and payment therefore,
be legally and validly issued and outstanding, fully paid and nonassessable. The
Company shall at all times prior to the Expiration Date reserve and keep
available for issuance upon the exercise of this Warrant such number of
authorized but unissued shares of Common Stock as will be sufficient to permit
the exercise in full of this Warrant.

      7. Investment Covenant. The Holder by its acceptance covenants that this
Warrant is, and the stock to be acquired upon exercise of this Warrant will be,
acquired for investment purposes, and that the Holder will not distribute the
same in violation of any state or federal law or regulations.

      8. Adjustments. The Exercise Price and the number of Warrant Shares are
subject to adjustment as follows:

      (a) Merger, Sale of Assets, etc. If at any time while this Warrant, or any
portion hereof, is outstanding and unexpired there shall be (i) a reorganization
(other than a combination, reclassification, exchange or subdivision of shares
otherwise provided for herein), (ii) a merger or consolidation of the Company
with or into another corporation in which the Company is not the surviving
entity, or a reverse triangular merger in which the Company is the surviving
entity but the shares of the Company's capital stock outstanding immediately
prior to the merger are converted by virtue of the merger into other property,
whether in the form of securities, cash, or otherwise, or (iii) a sale or
transfer of the Company's properties and assets as, or substantially as, an
entirety to any other person, then, as a part of such reorganization, merger,
consolidation, sale or transfer, lawful provision shall be made so that the
holder of this Warrant shall thereafter be entitled to receive upon valid
exercise of this Warrant, during the period specified herein and upon payment of
the Exercise Price then in effect, the number of shares of stock or other
securities or property of the successor corporation resulting from such
reorganization, merger, consolidation, sale or transfer that a holder of the
shares deliverable upon exercise of this Warrant would have been entitled to
receive in such reorganization, consolidation, merger, sale or transfer if this
Warrant had been exercised immediately before such reorganization, merger,
consolidation, sale or transfer, all subject to further adjustment as provided
in this Section 8. The foregoing provisions of this Section 8(a) shall similarly
apply to successive reorganizations, consolidations, mergers, sales and
<PAGE>

transfers and to the stock or securities of any other corporation that are at
the time receivable upon the exercise of this Warrant. If the per-share
consideration payable to the Holder hereof for shares in connection with any
such transaction is in a form other than cash or marketable securities, then the
value of such consideration shall be determined in good faith by the Company's
Board of Directors. In all events, appropriate adjustment (as determined in good
faith by the Company's Board of Directors) shall be made in the application of
the provisions of this Warrant with respect to the rights and interests of the
Holder after the transaction, to the end that the provisions of this Warrant
shall be applicable after that event, as near as reasonably may be, in relation
to any shares or other property deliverable after that event upon exercise of
this Warrant.

      (b) Reclassification, etc. If the Company, at any time while this Warrant,
or any portion hereof, remains outstanding and unexpired by reclassification of
securities or otherwise, shall change any of the securities as to which purchase
rights under this Warrant exist into the same or a different number of
securities of any other class or classes, this Warrant shall thereafter
represent the right to acquire such number and kind of securities as would have
been issuable as the result of such change with respect to the securities that
were subject to the purchase rights under this Warrant immediately prior to such
reclassification or other change and the Exercise Price therefor shall be
appropriately adjusted, all subject to further adjustment as provided in this
Section 8. No adjustment shall be made pursuant to this Section 8(b), upon any
conversion or redemption of the Common Stock which is the subject of Section
8(a).

      (c) Split, Subdivision or Combination of Shares. If the Company at any
time while this Warrant, or any portion hereof, remains outstanding and
unexpired shall split, subdivide or combine the securities as to which purchase
rights under this Warrant exist, into a different number of securities of the
same class, the Exercise Price for such securities shall be proportionately
decreased in the case of a split or subdivision or proportionately increased in
the case of a combination.

      (d) Adjustments for Dividends in Stock or Other Securities or Property. If
while this Warrant, or any portion hereof, remains outstanding and unexpired,
the holders of the securities as to which purchase rights under this Warrant
exist at the time shall have received, or, on or after the record date fixed for
the determination of eligible stockholders, shall have become entitled to
receive, without payment therefor, other or additional stock or other securities
or property (excluding cash) of the Company by way of dividend, then and in each
case, this Warrant shall represent the right to acquire, in addition to the
number of shares of the security receivable upon exercise of this Warrant, and
without payment of any additional consideration therefor, the amount of such
other or additional stock or other securities or property (excluding cash) of
<PAGE>

the Company that such holder would hold on the date of such exercise had it been
the holder of record of the security receivable upon exercise of this Warrant on
the date hereof and had thereafter, during the period from the date hereof to
and including the date of such exercise, retained such shares and/or all other
additional stock available by it as aforesaid during such period, giving effect
to all adjustments called for during such period by the provisions of this
Section 8.

      (e) Certificate as to Adjustments. Upon the occurrence of each adjustment
or readjustment pursuant to this Section 8, the Company shall compute such
adjustment or readjustment in accordance with the terms hereof and notify each
Holder of this Warrant of such adjustment or readjustment. The Company shall,
upon the written request, at any time, of any such Holder, furnish or cause to
be furnished to such Holder a certificate setting forth: (i) such adjustments
and readjustments; (ii) the Exercise Price at the time in effect; and (iii) the
number of shares and the amount, if any, of other property that at the time
would be received upon the exercise of the Warrant.

      9. Notice. Any notice or other communication given hereunder shall be
deemed sufficient if in writing and sent by reputable overnight courier,
facsimile (with receipt of confirmation) or registered or certified mail, return
receipt requested, addressed to the Company, at First Ipswich Bancorp, 31 Market
Street, Ipswich, Massachusetts 01938, Attention: President, facsimile (978)
356-5937 and to the Holder at the last known address appearing on the books of
the Company maintained for that purpose. Notices shall be deemed to have been
given on the date of mailing or fax, except notices of change of address, which
shall be deemed to have been given when received.

      10. Descriptive Headings and Governing Law. The description headings of
the several sections and paragraphs of this Warrant are inserted for convenience
only and do not constitute a part of this Warrant. This Warrant shall be
governed by and construed in accordance with the internal laws of the
Commonwealth of Massachusetts without giving effect to the principles of
conflict of law.
<PAGE>

      IN WITNESS WHEREOF, First Ipswich Bancorp has caused this Warrant to be
executed by its duly authorized officer this __ day of January 2007.

FIRST IPSWICH BANCORP

By: _________________________________
    Its:

HOLDER

By: _________________________________

Printed Name: _______________________

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