Document:

Exhibit 4.1

 

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF
THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR QUALIFIED UNDER
ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT COVERING SUCH SECURITIES UNDER THE ACT AND ANY REQUIRED QUALIFICATION UNDER
APPLICABLE STATE AND FOREIGN LAW OR THE TRANSACTION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS UNDER
THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND AN OPINION SATISFACTORY TO THE ISSUER TO
SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.

 

Warrant

 

	Warrant No. W-001	Original Issue Date:  June 28, 2013

 

For
Value Received, First Internet Bancorp, an Indiana corporation
(the “Company”), hereby certifies that Community BanCapital, L.P.,
a Delaware limited partnership (together with its registered assigns as hereinafter provided, the “Holder”)
is entitled to purchase from the Company Forty-Eight Thousand Seven Hundred Fifty (48,750) duly authorized, validly issued,
fully paid and nonassessable shares of Common Stock at a per share price equal to Nineteen and Thirty-Three Hundredths Dollars ($19.33),
subject to adjustment as provided in Section 4 (the “Exercise Price” ),
all subject to the terms, conditions and adjustments set forth below in this Warrant. Certain capitalized terms used herein are
defined in Section 1.

 

This
Warrant has been issued pursuant to the terms of that certain Subordinated Debenture Purchase Agreement dated of even date herewith
(the “Purchase Agreement”) between the Holder and the Company.

 

Section 1.        
Definitions. As used in this Warrant, the following terms have the respective meanings set forth below:

 

“Aggregate
Exercise Price” means an amount equal to the product of: (a) the number of Warrant Shares in respect
of which this Warrant is then being exercised pursuant to Section 3, multiplied by (b) the Exercise Price.

 

“Bank” means
First Internet Bank, an Indiana chartered commercial non-member bank with its main office located in Indianapolis, Indiana.

 

“Board” means
the board of directors of the Company.

 

“Business
Day” means any day, except a Saturday, Sunday or legal holiday, on which banking institutions in the city
of Indianapolis, Indiana, are authorized or obligated by law or executive order to close.

 

“Change
in Control” has the meaning set forth in Section 2.

 

“Common
Stock” means the common stock, no par value per share, of the Company, and any capital stock into which such
Common Stock shall have been converted, exchanged or reclassified following the date hereof.

 

“Common
Stock Deemed Outstanding” means, at any given time, the sum of: (a) the number of shares of Common Stock
actually outstanding at such time; plus (b) the number of shares of Common Stock issuable upon exercise of Options actually
outstanding at such time; plus (c) the number of shares of Common Stock issuable upon conversion or exchange of Convertible Securities
actually outstanding at such time (treating as actually outstanding any Convertible Securities issuable upon exercise of Options
actually outstanding at such time), in each case, regardless of whether the Options or Convertible Securities are actually exercisable
at such time; provided, that Common Stock Deemed Outstanding at any given time shall not include shares owned or held by
or for the account of the Company or any of its wholly owned subsidiaries.

 

    	

    	 

    

 

 

“Company” has
the meaning set forth in the preamble.

 

“Convertible
Securities” means any securities (directly or indirectly) convertible into or exchangeable for Common Stock,
but excluding Options.

 

“Excluded
Issuances” means any issuance or sale by the Company after the Original Issue Date of: (a) shares of
Common Stock issued upon the exercise of this Warrant; (b) shares of Common Stock issued directly or upon the exercise of
Options to directors, officers, consultants or employees, in connection with their service as directors of the Company or their
employment by or consulting services to the Company, in each case authorized by the Board and issued pursuant to the First Internet
Bancorp 2013 Equity Incentive Plan as amended from time to time (including any successor equity incentive plan, the “Plan”),
including all such shares of Common Stock and Options outstanding prior to the Original Issue Date; (c) shares of Common Stock
issued upon the vesting of restricted stock awards made under the Plan; or (d) Convertible Securities issued prior to the Original
Issue Date provided that such securities are not amended after the date hereof to increase the number of shares of Common Stock
issuable thereunder or to lower the exercise or conversion price thereof.

 

“Exercise
Date” means, for any given exercise of this Warrant, the date on which the conditions to such exercise as
set forth in Section 3 shall have been satisfied at or prior to 5:00 p.m., Chicago, Illinois, time, on a Business Day,
including the receipt by the Company of the Exercise Agreement, the Warrant and the Aggregate Exercise Price.

 

“Exercise
Agreement” has the meaning set forth in Section 3.

 

“Exercise
Period” has the meaning set forth in Section 2.

 

“Exercise
Price” has the meaning set forth in the preamble.

 

“Expiration
Date” has the meaning set forth in Section 2.

 

“Fair
Market Value” means the fair market value of a share of Common Stock as follows: (a) if shares of Common
Stock are readily tradable on an established securities market (as determined under Code Section 409A), then Fair Market Value
will be the closing sales price for a share on the principal securities market on which it trades on the date for which it is being
determined, or if no sale of shares occurred on that date, on the next preceding date on which a sale of shares occurred, as reported
in The Wall Street Journal or such other source as the Committee deems reliable; or (b) if shares of Common Stock are not
then readily tradable on an established securities market (as determined under Code Section 409A), the Fair Market Value of a share
of Common Stock shall be determined jointly by the Company and the Holder or, if they are unable to agree, by an appraisal, if
any, requested by the Holder and performed by a third-party mutually acceptable to the Holder and the Company.

 

“Holder” has
the meaning set forth in the preamble.

 

“Options” means
any warrants or other rights or options to subscribe for or purchase Common Stock or Convertible Securities.

 

“Original
Issue Date” means June 28, 2013.

 

“Person” means
any individual, sole proprietorship, partnership, limited liability company, corporation, joint venture, trust, incorporated organization
or government or department or agency thereof.

 

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

 

“Target
VWAP” has the meaning set forth in Section 3(i).

 

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“Trading Day” means any
day on which the Common Stock is traded on its principal market; provided that “Trading Day” shall not include any
day on which the Common Stock is scheduled to trade, or actually trades, on such exchange or market for less than 4.5 hours.

 

“VWAP” per share
of the Common Stock means the per share volume-weighted average price as displayed with respect to the Company on a Bloomberg terminal
under the heading Bloomberg VWAP in respect of any twenty (20) day period of Trading Days from the Original Issue Date through
the Expiration Date, calculated from the period from the official open of trading on the relevant Trading Day until the official
close of trading on the relevant Trading Day (or if such volume-weighted average price is unavailable, the market price of one
share of Common Stock on such Trading Days determined, using a volume-weighted average method, by a nationally recognized investment
banking firm (unaffiliated with the Company) retained for this purpose by the Company).

 

“VWAP
Deadline” has the meaning set forth in Section 3(i).

 

“VWAP
Notice” has the meaning set forth in Section 3(i).

 

“Warrant” means
this Warrant and all warrants issued upon division or combination of, or in substitution for, this Warrant.

 

“Warrant
Shares” means the shares of Common Stock or other capital stock of the Company then purchasable upon exercise
of this Warrant in accordance with the terms of this Warrant.

 

Section 2.        
Term of Warrant. Subject to the terms and conditions hereof, including Section 3(g), at any time or from
time to time commencing with the first (1st) anniversary of the Original Issue Date, and prior to 5:00 p.m.,
Chicago, Illinois, time, on the eighth (8th) anniversary of the Original Issue Date or, if such day is not a Business
Day, on the next succeeding Business Day (the “Expiration Date”), the Holder
of this Warrant may exercise this Warrant for all or any part of the Warrant Shares purchasable hereunder (subject to adjustment
as provided herein), provided, however, that the Holder of this Warrant may exercise this Warrant at any time before the
Expiration Date while an application has been filed and remains pending with or approved by any banking regulator with jurisdiction
over the Company or the Bank requesting prior approval for the acquisition of control of greater than fifty percent (50%)
of the voting stock of the Company or the Bank (a “Change in Control”). The period during which the Holder of
this Warrant may exercise this Warrant is referred to herein as (the “Exercise Period”).

 

Section 3.        
Exercise of Warrant.

 

(a)          
Exercise Procedure. This Warrant may be exercised from time to time on any Business Day during the Exercise Period,
for all or any part of the unexercised Warrant Shares, upon:

 

(i)            
surrender of this Warrant to the Company at its then principal executive offices (or an indemnification undertaking in form
and substance satisfactory to the Company with respect to this Warrant in the case of its loss, theft or destruction), together
with an Exercise Agreement in the form attached hereto as Exhibit A (each, an “Exercise Agreement”), duly completed
(including specifying the number of Warrant Shares to be purchased) and executed; and

 

(ii)          
payment to the Company of the Aggregate Exercise Price in accordance with Section 3(b).

 

(b)          
Payment of the Aggregate Exercise Price. Payment of the Aggregate Exercise Price shall be made, at the option of
the Holder as expressed in the Exercise Agreement, by the following methods:

 

(i)            
by delivery to the Company of a certified or official bank check payable to the order of the Company or by wire transfer
of immediately available funds to an account designated in writing by the Company, in the amount of such Aggregate Exercise Price;

 

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(ii)          
by instructing the Company to withhold a number of Warrant Shares then issuable upon exercise of this Warrant with an aggregate
Fair Market Value as of the Exercise Date equal to such Aggregate Exercise Price;

 

(iii)         
by surrendering to the Company: Warrant Shares (or other shares of Common Stock) previously acquired by the Holder with
an aggregate Fair Market Value as of the Exercise Date equal to such Aggregate Exercise Price; or

 

(iv)        
any combination of the foregoing.

 

In the event of any withholding of Warrant Shares or surrender
of other equity securities pursuant to clause (ii), (iii) or (iv) above where the number of shares whose value is equal to
the Aggregate Exercise Price is not a whole number, the number of shares withheld by or surrendered to the Company shall be rounded
up to the nearest whole share and the Company shall make a cash payment to the Holder (by delivery of a certified or official bank
check or by wire transfer of immediately available funds) based on the incremental fraction of a share being so withheld by or
surrendered to the Company in an amount equal to the product of: (x) such incremental fraction of a share being so withheld
or surrendered; multiplied by (y) in the case of Common Stock, the Fair Market Value per Warrant Share as of the Exercise
Date, and, in all other cases, the value thereof as of the Exercise Date determined in accordance with clause (iii)(y) above.

 

(c)          
Delivery of Stock Certificates. Upon receipt by the Company of the Exercise Agreement, surrender of this Warrant
and payment of the Aggregate Exercise Price (in accordance with Section 3(a)), the Company shall, as promptly as practicable,
and in any event within ten (10) Business Days thereafter, execute (or cause to be executed) and deliver (or cause to be delivered)
to the Holder a certificate or certificates representing the Warrant Shares issuable upon such exercise, together with cash in
lieu of any fraction of a share, as provided in Section 3(d). The stock certificate or certificates so delivered shall bear
such legends as the Company may require under applicable securities laws and shall be, to the extent possible, in such denomination
or denominations as the exercising the Holder shall reasonably request in the Exercise Agreement and shall be registered in the
name of the Holder or, subject to compliance with Section 6, such other Person’s name as shall be designated in the
Exercise Agreement. This Warrant shall be deemed to have been exercised and such certificate or certificates of Warrant Shares
shall be deemed to have been issued, and the Holder or any other Person so designated to be named therein shall be deemed to have
become a holder of record of such Warrant Shares for all purposes, as of the Exercise Date.

 

(d)          
Fractional Shares. The Company shall not be required to issue a fractional Warrant Share upon exercise of any Warrant.
As to any fraction of a Warrant Share that the Holder would otherwise be entitled to purchase upon such exercise, the Company shall
pay to such Holder an amount in cash (by delivery of a certified or official bank check or by wire transfer of immediately available
funds) equal to the product of: (i) such fraction; multiplied by (ii) the Fair Market Value of one Warrant Share on the
Exercise Date.

 

(e)          
Delivery of New Warrant. Unless the purchase rights represented by this Warrant shall have expired or shall have
been fully exercised, the Company shall, at the time of delivery of the certificate or certificates representing the Warrant Shares
being issued in accordance with Section 3(c), deliver to the Holder a new Warrant evidencing the rights of the Holder to
purchase the unexpired and unexercised Warrant Shares called for by this Warrant. Such new Warrant shall in all other respects
be identical to this Warrant.

 

(f)           
Valid Issuance of Warrant and Warrant Shares; Payment of Taxes. With respect to the exercise of this warrant, the
Company hereby represents, covenants and agrees:

 

(i)            
This Warrant is, and any Warrant issued in substitution for or replacement of this Warrant shall be, upon issuance, duly
authorized and validly issued.

 

(ii)          
All Warrant Shares issuable upon the exercise of this Warrant pursuant to the terms hereof shall be, upon issuance against
receipt of the Exercise Price, and the Company shall take all such actions as may be necessary or appropriate in order that such
Warrant Shares are, validly issued, fully paid and non-assessable, issued without violation of any pre-emptive or similar rights
of any stockholder of the Company and free and clear of all taxes, liens and charges.

 

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(iii)         
The Company shall take all such actions as may be necessary to ensure that all such Warrant Shares are issued without violation
by the Company of any applicable law or governmental regulation or any requirements of any domestic securities exchange upon which
shares of Common Stock or other securities constituting Warrant Shares may be listed at the time of such exercise (except for official
notice of issuance which shall be immediately delivered by the Company upon each such issuance).

 

(iv)        
The Company shall use its best efforts to cause the Warrant Shares, immediately upon such exercise, to be listed on any
domestic securities exchange upon which shares of Common Stock or other securities constituting Warrant Shares are listed at the
time of such exercise.

 

(v)          
The Company shall pay all expenses in connection with, and all taxes and other governmental charges that may be imposed
with respect to, the issuance or delivery of Warrant Shares upon exercise of this Warrant; provided, that the Company shall
not be required to pay any tax or governmental charge that may be imposed with respect to any applicable withholding or the issuance
or delivery of the Warrant Shares to any Person other than the Holder, and no such issuance or delivery shall be made unless and
until the Person requesting such issuance has paid to the Company the amount of any such tax, or has established to the satisfaction
of the Company that such tax has been paid.

 

(g)          
Conditional Exercise. Notwithstanding any other provision hereof, if an exercise of any portion of this Warrant is
to be made in connection with a Change in Control, such exercise may at the election of the Holder be conditioned upon the consummation
of such Change in Control, in which case such exercise shall not be deemed to be effective until immediately prior to the consummation
of such transaction.

 

(h)          
Reservation of Shares. During the Exercise Period, the Company shall at all times reserve and keep available out
of its authorized but unissued Common Stock or other securities constituting Warrant Shares, solely for the purpose of issuance
upon the exercise of this Warrant, the maximum number of Warrant Shares issuable upon the exercise of this Warrant, and the par
value per Warrant Share shall at all times be less than or equal to the applicable Exercise Price. Unless required by law or governmental
authority, the Company shall not increase the par value of any Warrant Shares receivable upon the exercise of this Warrant above
the Exercise Price then in effect, and shall take all such actions as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant.

 

(i)            
Forced Exercise. If at any time during the Exercise Period, (x) the Company has paid to the holder of the Subordinated
Debenture (as defined in the Purchase Agreement) the outstanding principal balance, plus all accrued but unpaid interest, thereon,
and any other amounts due and payable by the Company under the terms of the Purchase Agreement, and (y) the VWAP is Thirty
Dollars ($30.00) or higher (the “Target VWAP”), the Company may notify the Holder in writing of the Target VWAP
and the Company’s intent to cancel the Warrant in exchange for a cash payment to the Holder if the Holder fails to exercise
the Warrant as provided in Section 3(a) (the “VWAP Notice”). Thereafter, the Holder shall have fifteen (15)
Business Days after the date of its receipt of the VWAP Notice (the “VWAP Deadline”) to exercise the Warrant
in the manner provided in this Section. If the Holder fails to exercise the Warrant on or prior to the VWAP Deadline, then the
Company shall pay to the Holder, by no later than two (2) Business Days after the VWAP Deadline, and in immediately available
funds, an amount in cash equal to the product of (1) Thirty Dollars ($30.00) less the Exercise Price, multiplied
by (2) the number of unexercised Warrant Shares. After such payment is made by the Company, the Warrant shall automatically
be cancelled and the Holder shall have no further rights hereunder.

 

Section 4.        
Adjustment to Exercise Price and Number of Warrant Shares. In order to prevent dilution of the purchase rights
granted under this Warrant, the Exercise Price and the number of Warrant Shares issuable upon exercise of this Warrant shall be
subject to adjustment from time to time as provided in this Section 4.

 

(a)          
Adjustment to Exercise Price and Warrant Shares Upon Dividend, Subdivision or Combination of Common Stock. If the
Company shall, at any time or from time to time after the Original Issue Date and before the Expiration Date: (i) pay a dividend
or make any other distribution upon the Common Stock or any other capital stock of the Company payable in shares of Common Stock
or in Options or Convertible Securities; or (ii) subdivide (by any stock split, recapitalization or otherwise) its outstanding
shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to any such dividend, distribution
or subdivision shall be proportionately reduced and the number of Warrant Shares issuable upon exercise of this Warrant shall be
proportionately increased. If the Company at any time combines (by combination, reverse stock split or otherwise) its outstanding
shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall
be proportionately increased and the number of Warrant Shares issuable upon exercise of this Warrant shall be proportionately decreased.
Any adjustment under this Section 4(a) shall become effective at the close of business on the date the dividend, subdivision
or combination becomes effective.

 

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(b)          
Adjustment to Exercise Price and Warrant Shares Upon Reorganization, Reclassification, Consolidation or Merger. In
the event of any: (i) capital reorganization of the Company; (ii) reclassification of the stock of the Company (other
than a change in par value or from par value to no par value or from no par value to par value or as a result of a stock dividend
or subdivision, split-up or combination of shares); (iii) consolidation or merger of the Company with or into another Person;
(iv) sale of all or substantially all of the Company’s assets to another Person; or (v) other similar transaction
(other than any such transaction covered by Section 4(a)), in each case which entitles the holders of Common Stock to receive
(either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common Stock, each
Warrant shall, immediately after such reorganization, reclassification, consolidation, merger, sale or similar transaction, remain
outstanding and shall thereafter, in lieu of or in addition to (as the case may be) the number of Warrant Shares then exercisable
under this Warrant, be exercisable for the kind and number of shares of stock or other securities or assets of the Company or of
the successor Person resulting from such transaction to which the Holder would have been entitled upon such reorganization, reclassification,
consolidation, merger, sale or similar transaction if the Holder had exercised this Warrant in full immediately prior to the time
of such reorganization, reclassification, consolidation, merger, sale or similar transaction and acquired the applicable number
of Warrant Shares then issuable hereunder as a result of such exercise (without taking into account any limitations or restrictions
on the exercisability of this Warrant); and, in such case, appropriate adjustment shall be made with respect to the Holder’s
rights under this Warrant to insure that the provisions of this Section 4 shall thereafter be applicable, as nearly as possible,
to this Warrant in relation to any shares of stock, securities or assets thereafter acquirable upon exercise of this Warrant (including,
in the case of any consolidation, merger, sale or similar transaction in which the successor or purchasing Person is other than
the Company, an immediate adjustment in the Exercise Price to the value per share for the Common Stock reflected by the terms of
such consolidation, merger, sale or similar transaction, and a corresponding immediate adjustment to the number of Warrant Shares
acquirable upon exercise of this Warrant without regard to any limitations or restrictions on exercise, if the value so reflected
is less than the Exercise Price in effect immediately prior to such consolidation, merger, sale or similar transaction). The provisions
of this Section 4(b) shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers, sales
or similar transactions. The Company shall not effect any such reorganization, reclassification, consolidation, merger, sale or
similar transaction unless, prior to the consummation thereof, the successor Person (if other than the Company) resulting from
such reorganization, reclassification, consolidation, merger, sale or similar transaction, shall assume, by written instrument
substantially similar in form and substance to this Warrant, the obligation to deliver to the Holder such shares of stock, securities
or assets which, in accordance with the foregoing provisions, such Holder shall be entitled to receive upon exercise of this Warrant.
Notwithstanding anything to the contrary contained herein, with respect to any corporate event or other transaction contemplated
by the provisions of this Section 4(b), the Holder shall have the right to elect prior to the consummation of such event
or transaction, to give effect to the exercise rights contained in Section 3 instead of giving effect to the provisions
contained in this Section 4(b) with respect to this Warrant.

 

(c)          
Certain Events. If any event of the type described in or contemplated by the provisions of this Section 4 but
not expressly provided for by such provisions (including the granting of stock appreciation rights, phantom stock rights or other
rights with equity features (other than an Excluded Issuance)) occurs, then the Board shall make an appropriate adjustment in the
Exercise Price and the number of Warrant Shares issuable upon exercise of this Warrant so as to protect the rights of the Holder
in a manner consistent with the provisions of this Section 4; provided, that no such adjustment pursuant
to this Section 4(c) shall increase the Exercise Price or decrease the number of Warrant Shares issuable as otherwise determined
pursuant to this Section 4.

 

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(d)          
Certificate as to Adjustment.

 

(i)            
As promptly as reasonably practicable following any adjustment of the Exercise Price, but in any event not later than forty-five (45)
Business Days thereafter, the Company shall furnish to the Holder a certificate of an executive officer setting forth in reasonable
detail such adjustment and the facts upon which it is based and certifying the calculation thereof.

 

(ii)          
As promptly as reasonably practicable following the receipt by the Company of a written request by the Holder, but in any
event not later than forty-five (45) Business Days thereafter, the Company shall furnish to the Holder a certificate of an
executive officer certifying the Exercise Price then in effect and the number of Warrant Shares or the amount, if any, of other
shares of stock, securities or assets then issuable upon exercise of the Warrant.

 

(e)          
Notices. In the event:

 

(i)            
that the Company shall take a record of the holders of its Common Stock (or other capital stock or securities at the time
issuable upon exercise of the Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution,
to vote at a meeting (or by written consent), to receive any right to subscribe for or purchase any shares of capital stock of
any class or any other securities, or to receive any other security; or

 

(ii)          
of any capital reorganization of the Company, any reclassification of the Common Stock of the Company, any consolidation
or merger of the Company with or into another Person, or sale of all or substantially all of the Company’s assets to another
Person; or

 

(iii)         
of the voluntary or involuntary dissolution, liquidation or winding-up of the Company;

 

then, and in each such case, the Company shall send or cause
to be sent to the Holder at least sixty (60) days prior to the applicable record date or the applicable expected effective
date, as the case may be, for the event, a written notice specifying, as the case may be: (A) the record date for such dividend,
distribution, meeting or consent or other right or action, and a description of such dividend, distribution or other right or action
to be taken at such meeting or by written consent; or (B) the effective date on which such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding-up is proposed to take place, and the date, if any is to be fixed,
as of which the books of the Company shall close or a record shall be taken with respect to which the holders of record of Common
Stock (or such other capital stock or securities at the time issuable upon exercise of the Warrant) shall be entitled to exchange
their shares of Common Stock (or such other capital stock or securities) for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up, and the amount per share
and character of such exchange applicable to the Warrant and the Warrant Shares.

 

(f)           
Exceptions to Adjustment Upon Issuance of Common Stock. Anything herein to the contrary notwithstanding, there shall
be no adjustment to the Exercise Price upon exercise of this Warrant with respect to any Excluded Issuance.

 

Section 5.        
Purchase Rights. In addition to any adjustments pursuant to Section 4, if at any time the Company grants,
issues or sells any shares of Common Stock, Options, Convertible Securities or rights to purchase stock, warrants, securities or
other property pro rata to the record holders of Common Stock (the “Purchase Rights”),
then the Holder shall be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights
which the Holder would have acquired if the Holder had held the number of Warrant Shares acquirable upon complete exercise of this
Warrant immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if
no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale
of such Purchase Rights. Anything herein to the contrary notwithstanding, the Holder shall not be entitled to the Purchase Rights
granted herein with respect to any Excluded Issuance.

 

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Section 6.        
Transfer of Warrant. Subject to the transfer conditions referred to in the legend endorsed hereon, commencing
with the first (1st) anniversary of the Original Issue Date, this Warrant and all rights hereunder are transferable,
in whole or in part, by the Holder without charge to the Holder, upon surrender of this Warrant to the Company at its then principal
executive offices (or, if the Company designates a transfer agent for this warrant, at the offices of such transfer agent) with
a properly completed and duly executed Assignment in the form attached hereto as Exhibit B, together with funds sufficient
to pay any transfer taxes as described in Section 3(f)(v) in connection with the making of such transfer. Upon such compliance,
surrender and delivery and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name
of the assignee or assignees and in the denominations specified in such instrument of assignment, and shall issue to the assignor
a new Warrant evidencing the portion of this Warrant, if any, not so assigned and this Warrant shall promptly be cancelled.

 

Section 7.        
Holder Not Deemed a Stockholder; Limitations on Liability. Prior to the issuance to the Holder of the Warrant
Shares to which the Holder is then entitled to receive upon the due exercise of this Warrant, the Holder shall not be entitled
to vote or receive dividends or be deemed the holder of shares of capital stock of the Company for any purpose, nor shall anything
contained in this Warrant be construed to confer upon the Holder, as such, any of the rights of a stockholder of the Company or
any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification
of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights,
or otherwise. In addition, nothing contained in this Warrant shall be construed as imposing any obligations on the Holder to purchase
any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such obligations are asserted
by the Company or by creditors of the Company.

 

Section 8.        
Replacement on Loss; Division and Combination.

 

(a)          
Replacement of Warrant on Loss. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and upon delivery of an indemnity agreement reasonably satisfactory to it accompanied
by a bond in customary form and, in case of mutilation, upon surrender of such Warrant for cancellation to the Company, the Company
at its own expense shall execute and deliver to the Holder, in lieu hereof, a new Warrant of like tenor and exercisable for an
equivalent number of Warrant Shares as the Warrant so lost, stolen, mutilated or destroyed; provided, that, in the case
of mutilation, no indemnity shall be required if this Warrant in identifiable form is surrendered to the Company for cancellation.

 

(b)          
Division and Combination of Warrant. Subject to compliance with the applicable provisions of this Warrant as to any
transfer or other assignment which may be involved in such division or combination, this Warrant may be divided or, following any
such division of this Warrant, subsequently combined with other Warrants, upon the surrender of this Warrant or Warrants to the
Company at its then principal executive offices, together with a written notice specifying the names and denominations in which
new Warrants are to be issued, signed by the respective Holders or their agents or attorneys. Subject to compliance with the applicable
provisions of this Warrant as to any transfer or assignment which may be involved in such division or combination, the Company
shall at its own expense execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants so surrendered in
accordance with such notice. Such new Warrant or Warrants shall be of like tenor to the surrendered Warrant or Warrants and shall
be exercisable in the aggregate for an equivalent number of Warrant Shares as the Warrant or Warrants so surrendered in accordance
with such notice.

 

Section 9.        
No Impairment. The Company shall not, by amendment of its certificate or articles of incorporation or bylaws
or other similar charter documents, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue
or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms
to be observed or performed by it hereunder, but shall at all times in good faith assist in the carrying out of all the provisions
of this Warrant and in the taking of all such action as may reasonably be requested by the Holder in order to protect the exercise
rights of the Holder against dilution or other impairment, consistent with the tenor and purpose of this Warrant.

 

Section 10.     
Compliance with the Securities Act.

 

(a)          
Agreement to Comply with the Securities Act; Legend. By acceptance of this Warrant, the Holder, agrees to comply
in all respects with the provisions of this Section 10 and the restrictive legend requirements set forth on the face of
this Warrant and further agrees that such Holder shall not offer, sell or otherwise dispose of this Warrant or any Warrant Shares
to be issued upon exercise hereof except under circumstances that will not result in a violation of the Securities Act of 1933,
as amended (the “Securities Act”). This Warrant and all Warrant Shares issued
upon exercise of this Warrant (unless issued in a transaction registered under the Securities Act) shall be stamped or imprinted
with a legend in substantially the following form:

 

    	8

    	 

    

 

 

“THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR QUALIFIED UNDER
ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT COVERING SUCH SECURITIES UNDER THE ACT AND ANY REQUIRED QUALIFICATION UNDER
APPLICABLE STATE AND FOREIGN LAW OR THE TRANSACTION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS UNDER
THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND AN OPINION SATISFACTORY TO THE ISSUER TO
SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.”

(b)          
Representations of the Holder. In connection with the issuance of this Warrant, the Holder specifically represents,
as of the date hereof, to the Company by acceptance of this Warrant as follows:

 

(i)            
The Holder is an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities
Act. The Holder is acquiring this Warrant and the Warrant Shares to be issued upon exercise hereof for investment for its own account
and not with a view towards, or for resale in connection with, the public sale or distribution of this Warrant or the Warrant Shares,
except pursuant to sales registered or exempted under the Securities Act.

 

(ii)          
The Holder understands and acknowledges that this Warrant and the Warrant Shares to be issued upon exercise hereof are “restricted
securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving
a public offering and that, under such laws and applicable regulations, such securities may be resold without registration under
the Securities Act only in certain limited circumstances. In addition, the Holder represents that it is familiar with Rule 144
promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the
Securities Act.

 

(iii)         
The Holder acknowledges that it can bear the economic and financial risk of its investment for an indefinite period, and
has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the
investment in the Warrant and the Warrant Shares. The Holder has had an opportunity to ask questions and receive answers from the
Company regarding the terms and conditions of the offering of the Warrant and the business, properties, prospects and financial
condition of the Company.

 

Section 11.     
Warrant Register. Unless it is designated a transfer agent to do so, the Company shall keep and properly maintain
at its principal executive offices books for the registration of the Warrant and any transfers thereof. The Company (and any transfer
agent) may deem and treat the Person in whose name the Warrant is registered on such register as the Holder thereof for all purposes,
and the Company (and any transfer agent) shall not be affected by any notice to the contrary, except any assignment, division,
combination or other transfer of the Warrant effected in accordance with the provisions of this Warrant.

 

Section 12.     
Notices. Except as otherwise expressly provided herein, all notices, requests, consents, claims, demands, waivers
and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand
(with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier
(receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if
sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient;
or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid.
Such communications must be sent to the respective parties at the addresses indicated below (or at such other address for a party
as shall be specified in a notice given in accordance with this Section 12).

 

    	9

    	 

    

 

	if to the Company:	 	First Internet Bancorp
	 	 	8888 Keystone Crossing, Suite 1700

Indianapolis, Indiana 46240

	 	 	Attn:	David B. Becker
	 	 	 	Chairman, President and Chief Executive Officer
	 	 	

Fax No.: (317) 532-7901

E-Mail Address: dbecker@firstib.com

	 	 	 
	with a copy to	 	Faegre Baker Daniels
	 	 	600 E 96th Street, Suite 600

Indianapolis, Indiana 46240-3789

	 	 	Attn:	John Taylor
	 	 	Fax No.: (317) 237-8438

E-Mail Address: john.taylor@FaegreBD.com

	 	 	 
	if to the Holder:	 	CBC Management Partners, LLC

1000 SW Broadway, Suite 1010

Portland, Oregon 97205-3062

	 	 	
        Attn:

        
	Frank Reppenhagen
	 	 	Telephone No.: (503) 227-1400

Fax No.: (503) 228-7105

E-Mail Address: far@cbancap.com

	 	 	 
	with a copy to:	 	Barack
Ferrazzano Kirschbaum & Nagelberg, LLP

                                                       200
West Madison Street, Suite 3900

                                                       Chicago, Illinois 60606

	 	 	
        Attn:

        
	Dennis R. Wendte
	 	 	Telephone No.: (312) 984-3188

Fax No.: (312) 984-3150

E-Mail Address: dennis.wendte@bfkn.com

 

Section 13.     
Cumulative Remedies. The rights and remedies provided in this Warrant are cumulative and are not exclusive of,
and are in addition to and not in substitution for, any other rights or remedies available at law, in equity or otherwise.

 

Section 14.     
Equitable Relief. Each of the Company and the Holder acknowledges that a breach or threatened breach by such
party of any of its obligations under this Warrant might give rise to irreparable harm to the other party hereto for which monetary
damages would not be an adequate remedy and hereby agrees that in the event of a breach or a threatened breach by such party of
any such obligations, the other party hereto shall, in addition to any and all other rights and remedies that may be available
to it in respect of such breach, may be entitled to seek equitable relief, including a restraining order, an injunction, specific
performance and any other relief that may be available from a court of competent jurisdiction.

 

Section 15.     
Entire Agreement. This Warrant, together with the Purchase Agreement, constitutes the sole and entire agreement
of the parties to this Warrant with respect to the subject matter contained herein, and supersedes all prior and contemporaneous
understandings and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between
the statements in the body of this Warrant and the Purchase Agreement, the statements in the body of this Warrant shall control.

 

Section 16.     
Successor and Assigns. This Warrant and the rights evidenced hereby shall be binding upon and shall inure to
the benefit of the parties hereto and the successors of the Company and the successors and permitted assigns of the Holder. Such
successors and/or permitted assigns of the Holder shall be deemed to be a Holder for all purposes hereunder.

 

Section 17.     
No Third-Party Beneficiaries. This Warrant is for the sole benefit of the Company and the Holder and their respective
successors and, in the case of the Holder, permitted assigns and nothing herein, express or implied, is intended to or shall confer
upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Warrant.

 

    	10

    	 

    

 

 

Section 18.     
Headings. The headings in this Warrant are for reference only and shall not affect the interpretation of this
Warrant.

 

Section 19.     
Amendment and Modification; Waiver. Except as otherwise provided herein, this Warrant may only be amended, modified
or supplemented by an agreement in writing signed by each party hereto. No waiver by the Company or the Holder of any of the provisions
hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall
operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver,
whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay
in exercising, any rights, remedy, power or privilege arising from this Warrant shall operate or be construed as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege.

 

Section 20.     
Severability. Any provision of this Warrant which is unenforceable or invalid or contrary to law, or the inclusion
of which would adversely affect the validity, legality or enforcement of this Warrant, shall be of no effect and, in such case,
all the remaining terms and provisions of this Warrant shall subsist and be fully effective according to the tenor of this Warrant
the same as though any such invalid portion had never been included herein. Notwithstanding any of the foregoing to the contrary,
if any provisions of this Warrant or the application thereof are held invalid or unenforceable only as to particular persons or
situations, the remainder of this Warrant, and the application of such provision to persons or situations other than those to which
it shall have been held invalid or unenforceable, shall not be affected thereby, but shall continue valid and enforceable to the
fullest extent permitted by law.

 

Section 21.     
Governing Law. This Warrant shall be governed by and construed in accordance with the internal laws of the State
of Indiana. Nothing herein shall be deemed to limit any rights, powers or privileges which the Holder may have pursuant to any
law of the United States of America or any rule, regulation or order of any department or agency thereof and nothing herein shall
be deemed to make unlawful any transaction or conduct by the Holder which is lawful pursuant to, or which is permitted by, any
of the foregoing.

 

Section 22.     
Submission to Jurisdiction. Any legal suit, action or proceeding arising out of or based upon this Warrant or
the transactions contemplated hereby may be instituted in the federal courts of the United States of America or the courts
of the State of Indiana in each case located in the city of Indianapolis and County of Marion, and each party irrevocably submits
to the exclusive jurisdiction of such courts in any such suit, action or proceeding. Service of process, summons, notice or other
document by certified or registered mail to such party’s address set forth herein shall be effective service of process for
any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection
to the laying of venue of any suit, action or any proceeding in such courts and irrevocably waive and agree not to plead or claim
in any such court that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

Section 23.     
Waiver of Jury Trial. Each party acknowledges and agrees that any controversy which may arise under this Warrant
is likely to involve complicated and difficult issues and, therefore, each such party irrevocably and unconditionally waives any
right it may have to a trial by jury in respect of any legal action arising out of or relating to this Warrant or the transactions
contemplated hereby.

 

Section 24.     
Counterparts. This Warrant may be executed in counterparts, each of which shall be deemed an original, but all
of which together shall be deemed to be one and the same agreement. A signed copy of this Warrant delivered by facsimile, e-mail
or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy
of this Warrant.

 

    	11

    	 

    

 

 

Section 25.     
Construction. In this Warrant, unless otherwise stated or the context otherwise requires, the following uses
apply: (a) actions permitted under this Warrant may be taken at any time and from time to time in the actor’s reasonable
discretion; (b) references to a statute shall refer to the statute and any successor statute, and to all regulations promulgated
under or implementing the statute or its successor, as in effect at the relevant time; (c) in computing periods from a specified
date to a later specified date, the words “from” and “commencing on” (and the like) mean “from and
including,” and the words “to,” “until” and “ending on” (and the like) mean “to,
but excluding”; (d) ”including” means “including, but not limited to”; (e) all references
to sections, paragraphs, clauses and exhibits are to sections, paragraphs, clauses and exhibits in, of or to this Warrant unless
otherwise specified; (f) all words used in this Warrant will be construed to be of such gender or number as the circumstances
and context require; (g) the captions and headings of articles, sections, schedules and exhibits appearing in or attached
to this Warrant have been inserted solely for convenience of reference and shall not be considered a part of this Warrant nor shall
any of them affect the meaning or interpretation of this Warrant or any of its provisions; and (h) any reference to a document
or set of documents in this Warrant, and the rights and obligations of the parties under any such documents, shall mean such document
or documents as amended from time to time, and any and all modifications, extensions, renewals, substitutions or replacements thereof.
The Company and the Holder further agree that this Warrant shall be construed without regard to any presumption or rule requiring
construction or interpretation against the party drafting an instrument or causing any instrument to be drafted.

 

 

[This
Space Left Intentionally Blank]

[Signature
Page Follows]

 

    	12

    	 

    

 

In
Witness Whereof, the Company has duly executed this Warrant on the Original Issue Date.

 

	 	First Internet Bancorp
	 	 
	 	By: 	/s/ Kay E. Whitaker
	 		Name:	Kay E. Whitaker
	 		Title:	SVP & CFO

	Accepted
    and agreed: 	 
	 	Community BanCapital,
    L.P.,
	 	 
	 	By:	CBC
    Partners GP, LLC, its General Partner
	 	 	 
	 	 	 
	 	 	/s/
    Frank Reppenhagen
	 		Name:	Frank Reppenhagen
	 		Title:	Partner

 

    	13Exhibit 10.1 

 

 

Subordinated
Debenture Purchase Agreement

 

This
Subordinated Debenture Purchase Agreement (this “Agreement”) is dated as of June 28, 2013, and
is made by and between First Internet Bancorp, an Indiana corporation (“Borrower”),
and Community BanCapital, L.P., a Delaware limited partnership (“Lender”).

 

Recitals

 

A.Borrower
has requested that Lender make a loan to Borrower of Three Million Dollars ($3,000,000) in the form of subordinated debt (the “Subordinated
Debt”) that is intended to qualify as Tier 2 Capital. 

 

B.The Subordinated
Debt shall be evidenced by, and Lender is willing to purchase from Borrower, a subordinated debenture
in an aggregate principal amount of Three Million Dollars ($3,000,000) in accordance with the terms, subject to the conditions
and in reliance on, the recitals, representations, warranties, covenants and agreements set forth herein and in the Subordinated
Debenture. 

 

C.The proceeds
of the Subordinated Debt shall be used by Borrower for general corporate purposes.

 

Therefore,
in consideration of the mutual covenants, conditions and agreements herein contained, the parties hereto hereby agree as follows:

 

Agreements

 

Section 1.Subordinated Debt.

 

Section 1.1Certain
Terms. Lender agrees to extend the Subordinated Debt to Borrower in accordance with the terms of, and subject to the conditions
set forth in, this Agreement, the Subordinated Debenture and any other Transaction Documents (as defined in Section 1.3).
The Subordinated Debenture shall bear interest at a fixed annual rate per annum of eight percent (8.00%). The unpaid principal
balance plus all accrued but unpaid interest on the Subordinated Debt shall be due and payable on the eighth (8th)
anniversary of the Closing Date (the “Maturity Date”), or such earlier date on which such amount shall become
due and payable on account of acceleration by Lender in accordance with the terms of this Agreement. The Subordinated Debt shall
be evidenced by the Subordinated Debenture in the form attached as Exhibit A hereto and shall be subordinated in accordance
with the subordination provisions set forth therein. The obligations of Borrower to Lender under the Subordinated Debenture shall
be unsecured.

 

Section 1.2Maturity
Date. On the Maturity Date, all sums due and owing under this Agreement and the other Transaction Documents with respect
to the Subordinated Debenture shall be repaid in full. Borrower acknowledges and agrees that Lender has not made any commitments,
either express or implied, to extend the terms of the Subordinated Debt past the Maturity Date, and the Subordinated Debt shall
not be extended unless Borrower and Lender hereafter specifically otherwise agree in writing.

 

Section 1.3The
Closing. The execution and delivery of this Agreement, the Subordinated Debenture and the Warrant (collectively, the “Transaction
Documents”), and the full funding of the Subordinated Debt (all such actions being referred to as the “Closing”)
will occur at the offices of Lender, at 50 East Washington Street, Suite 400, Chicago, Illinois, at 9:30 a.m. Chicago,
Illinois time on June 28, 2013 (the “Closing Date”), or at such other place or time or on such other date
as the parties hereto may agree, by disbursing the proceeds of the Subordinated Debenture in accordance with any written instructions
received by Lender from Borrower at least one Business Day prior to Closing. Borrower shall pay to Lender concurrently with disbursement
of such proceeds a closing fee equal to Thirty Thousand Dollars ($30,000).

 

    	

    	 

    

 

 

Section 1.4Interest
Rate.

 

Section 1.4.1Interest
Payments. Subject to Section 1.4.2, interest accrued or any other outstanding amount of the Subordinated Debenture
shall be payable by Borrower in arrears on the last day of each March, June, September and December, commencing September 30,
2013, and on the Maturity Date.

 

Section 1.4.2Default
Interest. Notwithstanding the rates of interest and the payment dates specified in this Agreement, effective immediately
upon: (a) the occurrence and during the continuance of any Acceleration Event of Default (as defined in Section 4.1.1), or
(b) the Maturity Date, the principal balance of the Subordinated Debt then outstanding, any interest payments not paid within
five days after the same becomes due and any amount due on the Maturity Date which is not then paid, shall bear interest payable
upon demand at a rate equal to the Prime Rate then in effect plus ten percent (10.00%) per annum (the “Default Rate”).

 

Section 1.4.3Computation
of Interest. Interest shall be computed on the basis of the actual number of days elapsed in the period during which interest
accrues and a year of 365 days. In computing interest, the date of funding shall be included and, subject to Section 1.5.2,
the date of payment shall be excluded; provided, however, that if any funding is repaid on the same day on which it is made,
one day’s interest shall be paid thereon.

 

Section 1.5Payments.

 

Section 1.5.1Prepayment.
The Subordinated Debenture may not be prepaid in any amount or at any time prior to the third (3rd) anniversary
of the Closing Date. Subject to the immediately following sentence, at any time after the third (3rd) anniversary
of the Closing Date, Borrower may, upon at least one Business Day’s notice to Lender, prepay, without penalty, all or a portion
of the principal amount outstanding under the Subordinated Debt in a minimum aggregate amount of $100,000 or any larger integral
multiple of $100,000 by paying the principal amount to be prepaid, together with unpaid accrued interest thereon to but,
subject to Section 1.5.2, excluding the date of prepayment. Except for payments of principal prior to maturity as a result
of the acceleration of maturity as the result of an Acceleration Event of Default, Lender shall have no responsibility to verify
whether Borrower has obtained any requisite approval of the Federal Reserve or other regulatory approval for the payment of principal
(including payment at maturity or redemption prior to maturity).

 

Section 1.5.2Manner
and Time of Payment. All payments of principal, interest and fees hereunder payable to Lender shall be made, without condition
or reservation of right and free of set-off or counterclaim, in U.S. dollars and by wire transfer (pursuant to Lender’s written
wire transfer instructions) of immediately available funds delivered to Lender not later than 11:00 a.m. (Chicago, Illinois time)
on the date due. Funds received by Lender after that time and date shall be deemed to have been paid on the next succeeding Business
Day.

 

Section 1.5.3Payments
on Non-Business Days. Whenever any payment to be made by Borrower hereunder shall be stated to be due on a day which is
not a Business Day, payments shall be made on the next succeeding Business Day and such extension of time (but not such next succeeding
Business Day, subject to Section 1.5.2,) shall be included in the computation of the payment of interest hereunder.

 

Section 1.5.4Application
of Payments. All payments received by Lender from or on behalf of Borrower shall first be applied to amounts due to Lender
to pay Lender’s fees and reimburse Lender’s costs and expenses, including those pursuant to Section 4.4 of this
Agreement, second to accrued interest under the Subordinated Debenture, and third to principal amounts outstanding under the Subordinated
Debenture; provided, however, subject to the provisions of Section 4 of this Agreement, that after the date on which
the final payment of principal with respect to the Subordinated Debenture is due or following and during any Event of Default,
all payments received on account of Borrower’s Liabilities shall be applied in whatever order, combination and amounts as
Lender, in its sole and absolute discretion, decides, to all costs, expenses and other indebtedness owing to Lender. No amount
paid or prepaid on the Subordinated Debenture may be reborrowed.

 

    	2

    	 

    

 

 

Section 2.General Representations
and Warranties. Borrower hereby covenants, represents and warrants to Lender as follows:

 

Section 2.1Organization.

 

Section 2.1.1Borrower.
Borrower is a corporation duly organized and existing under the laws of the State of Indiana. Borrower has all requisite corporate
power and authority, and possesses all licenses necessary to conduct business and activities as presently conducted, to own its
properties and to perform its obligations under this Agreement. Borrower is the owner of all of the issued and outstanding capital
stock of First Internet Bank, an Indiana chartered, non-member commercial bank with its main office located in Indianapolis, Indiana
(the “Bank”).

 

Section 2.1.2Bank.
The Bank has all requisite corporate power and authority, and possesses all licenses necessary to conduct business and activities
as presently conducted, to own its properties and to perform its obligations under this Agreement. The deposit accounts of the
Bank are insured by the FDIC. No event attributable to the Borrower or the Bank has occurred which could reasonably be expected
to adversely affect the status of the Bank as an FDIC-insured institution.

 

Section 2.2Legal
and Authorized. The borrowing of the principal amount of the Subordinated Debt, the execution and performance of this Agreement,
the Subordinated Debenture and the other Transaction Documents and compliance by Borrower with all of the provisions of this Agreement
and of the other Transaction Documents are within the corporate powers of Borrower. Each of this Agreement, the Subordinated Debenture
and the other Transaction Documents has been duly authorized, executed and delivered and is the legal, valid and binding obligation
of Borrower, and is enforceable in accordance with its respective terms, except as such enforcement may be limited by bankruptcy,
insolvency, reorganization or other laws (including laws and regulations specifically applicable to bank holding companies registered
with the Federal Reserve) and subject to general principles of equity.

 

Section 2.3No
Defaults or Restrictions. Neither the execution, delivery or performance by Borrower of any of the Transaction Documents,
nor compliance by it with the terms and provisions hereof or thereof: (a) will contravene any provision of any applicable
law, statute, rule or regulation or any order, writ, injunction or decree of any court or governmental instrumentality; (b) will
conflict with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under,
or result in the creation or imposition of (or the obligation to create or impose) any lien upon any of the property or assets
of Borrower or any of its Subsidiaries pursuant to the terms of any material indenture, mortgage, deed of trust, credit agreement,
loan agreement or any other agreement, contract or instrument to which Borrower or any of its Subsidiaries is a party or by which
it or any of its property or assets is bound or to which it may be subject; or (c) will violate any provision of the charter
or bylaws of Borrower or the organizational documents, charter or bylaws of any of its Subsidiaries. Neither Borrower nor any of
its Subsidiaries is in material default in the performance, observance or fulfillment of any of the terms, obligations, covenants,
conditions or provisions contained in any indenture or other agreement creating, evidencing or securing indebtedness of any kind
or pursuant to which any such indebtedness is issued, or other agreement or instrument to which Borrower or any of its Subsidiaries
is a party or by which it or its properties may be bound or affected, which default would reasonably be expected to have a material
adverse effect on the financial condition, results of operations or business of Borrower and its Subsidiaries, taken as a whole.

 

Section 2.4Governmental
Consent. No order, consent, approval, license, authorization or validation of, or filing, recording or registration with
(except as have been obtained or made prior to the date of this Agreement), or exemptive action by, any governmental or public
body or authority, or any subdivision thereof, is required to authorize, or is required in connection with: (a) the execution,
delivery and performance by Borrower of this Agreement, the Subordinated Debenture or any of the other Transaction Documents; or
(b) the legality, validity, binding effect or enforceability of any of the Transaction Documents.

 

Section 2.5Pending
Litigation. There are no actions, suits, proceedings or written agreements pending, or, to the best knowledge of Borrower,
threatened against Borrower or any of its Subsidiaries at law or in equity or before or by any federal, state, municipal, or other
governmental department, commission, board, or other administrative agency, domestic or foreign that if adversely determined would
reasonably be expected to have a material adverse effect on the financial condition, results of operations or business of Borrower
and its Subsidiaries taken as a whole; and none of Borrower nor any of its Subsidiaries is in default with respect to any material
order, writ, injunction, or decree of, or any written agreement with, any court, commission, board or agency, domestic or foreign.

 

    	3

    	 

    

 

 

Section 3.General Covenants,
Conditions and Agreements. Borrower hereby further covenants and agrees with Lender as follows:

 

Section 3.1Negative
Covenants. Borrower agrees that until it satisfies all of its obligations to Lender, including its obligations to pay in
full all principal, interest and other amounts due in accordance with the terms of this Agreement, the Subordinated Debenture and
the other Transaction Documents, it shall not take any of the actions set forth below in this Section 3.1, without the prior
written consent of Lender, which consent may not be unreasonably withheld.

 

Section 3.1.1Merger,
Consolidation and Sale of Assets. Borrower shall not consolidate with or merge with, or sell, lease or otherwise transfer
all or substantially all of its assets to, any Person unless: (a) the successor entity which results from such consolidation
or merger, if not Borrower, or the Person which is the transferee of all or substantially all of Borrower’s assets, as the
case may be (the “Surviving Entity”), (i) shall be a solvent bank holding company or financial holding company
that has majority ownership in a solvent FDIC-insured depository institution organized and existing under the laws of the United
States or any State thereof or the District of Columbia, and (ii) shall have executed and delivered to the holder of the Subordinated
Debenture its assumption of the due and punctual payment of the principal of and premium, if any, and interest on the Subordinated
Debenture, and the due and punctual performance and observation of all of the covenants in the Subordinated Debenture, this Agreement
and any other Transaction Document to be performed or observed by Borrower and shall furnish to such holder an opinion of counsel
to the effect that the instrument of assumption has been duly authorized, executed and delivered and constitutes the legal, valid
and binding contract and agreement of the Surviving Entity enforceable in accordance with its terms, except as enforcement of such
terms may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors’
rights generally and by general equitable principles; and (b) immediately after giving effect to such transaction and treating
any indebtedness that becomes an obligation of Borrower as a result of such transaction as having been incurred by Borrower at
the time of such transaction, no Event of Default or Potential Event of Default would exist. No such sale, lease or transfer of
substantially all of the assets of Borrower shall have the effect of releasing Borrower or any Surviving Entity that shall theretofore
have become such in the manner prescribed in this Section 3.1.1 from its liability under this Agreement and the Subordinated
Debenture. Borrower agrees to provide written notice to Lender of its intention to consolidate with or merge with, or sell, lease
or otherwise transfer all or substantially all of its assets to, any Person, no later than five Business Days after the earlier
of: (x) Borrower’s receipt of a binding letter of intent with respect to such transaction; or (y) the execution
of an agreement by and between Borrower and any Person with respect to such transaction.

 

Section 3.1.2Restricted
Payments. If an Event of Default has occurred and is continuing, Borrower shall not: (a) pay any dividends or make
any other distributions to its shareholders; (b) redeem or repurchase any of its outstanding capital stock or other securities;
(c) make any payments of interest, principal or premium on, or repay, repurchase or redeem (i) any indebtedness of Borrower
payable to any of its Affiliates except the Bank with respect to shared expenses of Borrower that is owing to the Bank pursuant
to Borrower’s and Bank’s intercompany policies, or (ii) any other indebtedness of Borrower that ranks equally
with or junior to the Subordinated Debenture; or (d) make any guarantee payments on any obligations ranking pari passu
with or junior to the Subordinated Debenture.

 

Section 3.1.3Redemption
of Capital Stock. Borrower shall not redeem any of its capital stock or otherwise change its capital structure where the
same would reasonably be expected to have a material adverse effect on the financial condition, results of operations or business
of Borrower.

 

Section 3.2Affirmative
Covenants. Borrower agrees that until it satisfies all of its obligations to Lender, including its obligations to pay in
full all principal, interest and other amounts due in accordance with the terms of this Agreement, the Subordinated Debenture and
the other Transaction Documents, it shall perform the covenants set forth below in this Section 3.2.

 

    	4

    	 

    

 

 

Section 3.2.1Corporate
Existence. Subject to Section 3.1.1, Borrower shall at all times preserve and maintain its corporate existence,
rights, franchises and privileges.

 

Section 3.2.2Financial
Statements. Borrower shall at all times maintain a system of accounting, on the accrual basis of accounting and in accordance
with generally accepted accounting principles in effect in the United States (“GAAP”), and shall furnish to
Lender or Lender’s Representatives upon request quarterly unaudited consolidated financial statements and audited consolidated
financial statements at the same time that such information is made available to the public; provided, that Borrower shall
not be required to provide audited financial statements of the Bank as a stand-alone entity separate from Borrower.

 

Section 3.2.3Notice
of Default. Borrower shall promptly after becoming aware of the commencement thereof, give notice to Lender in writing
of the occurrence of an Event of Default or Potential Event of Default; provided, that furnishing such information to Lender
is not prohibited by applicable laws and regulations and Lender agrees in writing not to disclose such information to any other
Person, except that in all events Lender may disclose such information to Lender’s Representatives, as required by law or
regulation or as agreed to by Borrower.

 

Section 3.2.4Inspection
Rights. Except to the extent prohibited by applicable laws and regulations, agreements with third parties prohibiting the
disclosure thereof and excluding any information subject to any legal privilege, Borrower shall permit Lender and Lender’s
Representatives after signing a confidentiality and nondisclosure agreement satisfactory to Borrower in its sole discretion to
discuss the affairs, finances and accounts of Borrower with, and to be advised as to the same by, any officers requested by Lender,
including Borrower’s Chief Executive Officer and Chief Financial Officer, other employees and independent public accountants
(and by this provision Borrower hereby authorizes such accountants to discuss with Lender the finances and affairs of Borrower)
at such reasonable times and reasonable intervals as Borrower may specify; provided, however, that this right shall not
be exercised more than once per calendar quarter and only with five Business Days’ prior written notice so long as: (a) the
Bank shall be “well capitalized” in accordance with the rules and regulations of its primary federal regulator and
(b) no Event of Default shall have occurred and be continuing, and provided, further, that Lender agrees to maintain
the confidentiality of all information regarding Borrower obtained as a result of the exercise of this right and through any other
means, except for disclosure to Lender’s Representatives or as required otherwise by law or regulation, and Borrower shall
not be required to make available to Lender any customer lists or other proprietary information unless such information is required
by Lender to determine the financial condition of Borrower or to determine the ability of either to meet its obligations hereunder
and does not violate applicable laws and regulations and agreements with third parties prohibiting the disclosure thereof and excluding
any confidential regulatory examination information or information subject to any legal privilege. Subject to restrictions in the
foregoing sentence, Borrower shall provide promptly to Lender other information concerning the business, operations, financial
condition and regulatory status of Borrower and its Subsidiaries as Lender may from time to time reasonably request.

 

Section 3.2.5Board
Observation Rights. If: (a) Borrower fails to make any payment when due under the terms of this Agreement, the Subordinated
Debenture or any other Transaction Document, and such amount remains unpaid for a period of thirty (30) days after the due
date; or (b) the ratio of the Bank’s (i) total Classified Assets (net of any loss share payment owed to the Bank
by the FDIC), to (ii) its Tier 1 Capital plus its allowance for loan and lease losses, calculated on a consolidated basis
(the “Classified Asset Ratio”), is at any time forty percent (40%) or greater, Lender shall have the right,
subject to any necessary regulatory approval, to appoint a Lender’s Representative to attend all meetings of the board of
directors or any committees thereof of each of Borrower and the Bank, in an observer capacity with the right to speak and make
his or her views known to other attendees at such meetings. From and after the vesting in Lender of the rights described in the
preceding sentence, Borrower shall give, or cause to be given, to such Lender’s Representative copies of all notices, minutes,
consents and other materials that it provides to its directors of the Company or the Bank, as the case may be, in connection with
such respective meetings. Any appointment as an observer pursuant to this Section 3.2.5, shall remain in effect until six (6)
months after: (x) all missed payments giving rise to Lender’s rights under this Section 3.2.5 have been paid;
or (y) the Classified Asset Ratio is less than forty percent (40%), as the case may be. For purposes of this Section
3.2.5, the Classified Asset Ratio shall be calculated monthly. Borrower agrees to provide written notice to Lender within five (5)
Business Days after the end of any month during any calendar year if the Classified Asset Ratio equals or exceeds forty percent (40%).

 

    	5

    	 

    

 

 

Section 3.2.6Lender
Expenses. Borrower will pay all reasonable costs and expenses of Lender in connection with any modification, amendment,
alteration, or the enforcement of this Agreement, the Subordinated Debenture or the other Transaction Documents, including Lender’s
out-of-pocket expenses and the charges and disbursements to counsel retained by Lender. The obligations of Borrower under this
Section 3.2.6 shall survive the repayment in full of the Subordinated Debenture. Any of the foregoing amounts incurred by Lender
and not paid by Borrower within ten (10) days after demand for payment shall bear interest from the date incurred at the Default
Rate and shall be deemed part of Borrower’s Liabilities hereunder.

 

Section 4.Borrower’s Default.

 

Section 4.1Borrower’s
Defaults and Lender’s Remedies.

 

Section 4.1.1Acceleration
Event of Default. The following shall constitute an “Acceleration Event of Default” under this Agreement:

 

Section 4.1.1.1Either
Borrower or the Bank applies for, consents to or acquiesces in the appointment of a receiver for itself, or in the absence of such
application, consent or acquiescence, a receiver is appointed for either Borrower or the Bank.

 

Section 4.1.1.2Borrower
applies for, consents to or acquiesces in the appointment of a trustee, receiver or liquidator for itself under Chapter 7
or Chapter 11 of the United States Bankruptcy Code (the ”Code Provisions”), or in the absence of such
application, consent or acquiescence, a trustee, receiver or liquidator is appointed for Borrower under the Code Provisions, and
is not discharged within ninety (90) days, or any bankruptcy, reorganization, debt arrangement or other proceeding or any
dissolution or liquidation proceeding is instituted by or against Borrower under the Code Provisions, and if instituted, is consented
or acquiesced in by it or remains for ninety (90) days undismissed, or if Borrower is enjoined, restrained or in any way prevented
from conducting all or any material part of its business under the Code Provisions.

 

Section 4.1.2Non-Acceleration
Events of Default. Each of the following shall constitute a “Non-Acceleration Event of Default” under
this Agreement:

 

Section 4.1.2.1Borrower
fails to pay any principal or interest due on the Subordinated Debenture when due; or

 

Section 4.1.2.2Borrower
fails to pay any other fees, charges, costs or expenses under this Agreement or any other Transaction Documents and in each case
such failure shall continue for a period of thirty (30) days after notice thereof is given by the Lender to Borrower; or

 

Section 4.1.2.3Borrower
fails to perform or observe in any material respect any agreement, term, provision, condition, or covenant (other than any such
failure that results in an Event of Default as expressly provided in any other clause of Section 4.1) required to be performed
or observed by Borrower hereunder or under any other Transaction Document or other agreement with or in favor of Lender and in
each case such failure shall continue for a period of 30 days after notice thereof is given by the Lender to Borrower; or

 

Section 4.1.2.4Borrower,
or the Bank or any Subsidiary becomes insolvent or is unable to pay its debts as they mature; or makes an assignment for the benefit
of creditors or admits in writing its inability to pay its debts as they mature; or suspends transaction of its usual business;
or if a trustee of any substantial part of the assets of Borrower, or the Bank or any Subsidiary is applied for or appointed, and
if appointed, Borrower, or the Bank or any Subsidiary by any action or failure to act indicates its approval of, consent to, or
acquiescence in such appointment, or within ninety (90) days after such appointment, such appointment is not vacated or stayed
on appeal or otherwise, or shall not otherwise have ceased to continue in effect;

 

Section 4.1.2.5Any
proceedings are commenced by or against Borrower, or the Bank or any Subsidiary under any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, dissolution or liquidation law or statute of the federal government or any state government,
if such proceedings are instituted, Borrower, the Bank or such Subsidiary by any action or failure to act indicates its approval
of, consent to or acquiescence therein, or an order shall be entered approving the petition in such proceedings and within ninety (90)
days after the entry thereof such order is not vacated or stayed on appeal or otherwise, or shall not otherwise have ceased to
continue in effect; or

 

    	6

    	 

    

 

 

Section 4.1.2.6Any
Subsidiary other than the Bank, applies for, consents to or acquiesces in the appointment of a trustee, receiver or liquidator
for itself under the Code Provisions, or in the absence of such application, consent or acquiescence, a trustee, receiver or liquidator
is appointed for such Subsidiary under the Code Provisions, and is not discharged within ninety (90) days, or any bankruptcy,
reorganization, debt arrangement or other proceeding or any dissolution or liquidation proceeding is instituted by or against such
Subsidiary under the Code Provisions, and if instituted, is consented or acquiesced in by it or remains for ninety (90) days
undismissed, or if such Subsidiary is enjoined, restrained or in any way prevented from conducting all or any material part of
its business under the Code Provisions.

 

Section 4.1.3Effect
of Event of Default; Acceleration and Termination of the Commitment.

 

Section 4.1.3.1If
an Acceleration Event of Default shall occur and be continuing, Lender may declare the Subordinated Debenture and any other amounts
due Lender immediately due and payable, whereupon, subject to prior Federal Reserve approval, the Subordinated Debenture and such
other amounts payable hereunder shall immediately become due and payable, without presentment, demand, protest or notice of any
kind.

 

Section 4.1.3.2If:
(a) Borrower receives a written notification from the Federal Reserve that the Subordinated Debenture no longer constitutes
Tier 2 Capital of Borrower; and (b) any Non-Acceleration Event of Default shall occur and be continuing, Lender
may declare the Subordinated Debenture and any other amounts due Lender immediately due and payable, whereupon the Subordinated
Debenture and such other amounts payable hereunder shall immediately become due and payable, without presentment, demand, protest
or notice of any kind.

 

Section 4.1.3.3Except
as provided in Section 4.1.3.2, in the case of the occurrence of a Non-Acceleration Event of Default, Lender shall not have
the right to declare the principal amount due under the Subordinated Debenture immediately due and payable, provided, however,
that Lender may take any and all actions necessary to cause Borrower to cure the Non-Acceleration Event of Default, including,
in the case of a Non-Acceleration Event of Default pursuant to Section 4.1.2.1 and Section 4.1.2.2, bring an action
to collect any interest, principal and other amounts that are due and payable.

 

Section 4.1.3.4Upon
the occurrence of any Event of Default, it is specifically understood and agreed that notwithstanding the curing of such any Event
of Default, Borrower shall not be released from any of its covenants hereunder unless and until the Subordinated Debenture is paid
in full.

 

Section 4.2Other
Remedies. If any Event of Default shall occur and be continuing, Lender may, in addition to any other rights and remedies
hereunder, exercise any and all remedies provided in any of the other Transaction Documents and other related documents.

 

Section 4.3No
Lender Liability. To the extent permitted by law, Lender shall have no liability for any loss, damage, injury, cost or
expense resulting from any action or omission by it, or any of its representatives, which was taken, omitted or made in good faith.

 

Section 4.4Lender’s
Fees and Expenses. In case of any Event of Default hereunder, Borrower shall pay Lender’s reasonable fees and expenses
including attorneys’ fees and expenses, in connection with the enforcement of this Agreement or any of the other Transaction
Documents or other related documents.

 

    	7

    	 

    

 

 

Section 5.Miscellaneous.

 

Section 5.1Release;
Indemnification. Borrower hereby releases Lender from any and all causes of action, claims or rights which Borrower may
now or hereafter have for, or which may arise from, any loss or damage caused by or resulting from: (a) any failure of Lender
to protect, enforce or collect in whole or in part any of the Subordinated Debt and (b) any other act or omission to act on
the part of Lender, its officers, agents or employees, except in each instance for willful misconduct or gross negligence, and
except for any breach by Lender of this Agreement or any other Transaction Document. Borrower shall indemnify, defend and hold
Lender and its Affiliates harmless from and against any and all losses, liabilities, obligations, penalties, claims, fines, demands,
litigation, defenses, costs, judgments, suits, proceedings, actual damages, disbursements or expenses of any kind or nature whatsoever
(including attorneys’ fees and expenses) which may at any time be either directly or indirectly imposed upon, incurred by
or asserted or awarded against Lender or any of Lender’s Affiliates in connection with, arising from or relating to Lender’s
entering into or carrying out the terms of this Agreement or being the holder of any Subordinated Debenture, but not including
any portion of such loss, liability, damage, suit, claim, expense, fees or costs that is primarily attributable to Lender’s
or any of Lender’s Affiliates’ willful misconduct or gross negligence.

 

Section 5.2Assignment
and Participation. Lender may pledge or otherwise hypothecate all or any portion of this Agreement or grant participations
herein (provided, that Lender acts as agent for any participants, except as provided below) or in any of its rights and
security hereunder. Lender may also assign all or any part of the Subordinated Debt and Lender’s obligations in connection
therewith to one or more commercial banks or other financial institutions or investors, but such assignment shall be permitted
only with the prior written consent of Borrower, which consent may not be unreasonably withheld. Borrower shall at all times be
entitled to make payments of principal and interest on the Subordinated Debt as provided in Section 1.5.2 of this Agreement
and shall have no duty to inquire as to any different location or manner of payment, and if Borrower makes payment in accordance
with such section, it shall not be required to take any further action, notwithstanding any assignment by Lender of its rights
hereunder or the Subordinated Debt.

 

Section 5.3Prohibition
on Assignment by Borrower. Borrower shall not assign or attempt to assign its rights under this Agreement, except by operation
of law.

 

Section 5.4Time
of the Essence. Time is of the essence of this Agreement.

 

Section 5.5No
Waiver. No waiver of any term, provision, condition, covenant or agreement herein contained shall be effective unless set
forth in a writing signed by Lender, and any such waiver shall be effective only to the extent set forth in such writing. No failure
to exercise or delay in exercising, by Lender or any holder of any Subordinated Debenture, of any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude any other
or further exercise thereof, or the exercise of any other right or remedy provided by law. The rights and remedies provided in
this Agreement are cumulative and not exclusive of any right or remedy provided by law or equity. No notice or demand on Borrower
in any case shall, in itself, entitle Borrower to any other or further notice or demand in similar or other circumstances or constitute
a waiver of the rights of Lender to any other or further action in any circumstances without notice or demand. No consent or waiver,
expressed or implied, by Lender to or of any breach or default by Borrower 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 Borrower hereunder. Failure on the part of Lender 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 Lender of its rights hereunder or
impair any rights, powers or remedies on account of any breach or default by Borrower.

 

Section 5.6Severability.
Any provision of this Agreement which is unenforceable or invalid or contrary to law, or the inclusion of which would adversely
affect the validity, legality or enforcement of this Agreement, shall be of no effect and, in such case, all the remaining terms
and provisions of this Agreement shall subsist and be fully effective according to the tenor of this Agreement the same as though
any such invalid portion had never been included herein. Notwithstanding any of the foregoing to the contrary, if any provisions
of this Agreement or the application thereof are held invalid or unenforceable only as to particular Persons or situations, the
remainder of this Agreement, and the application of such provision to Persons or situations other than those to which it shall
have been held invalid or unenforceable, shall not be affected thereby, but shall continue valid and enforceable to the fullest
extent permitted by law. If the primary federal regulator of Borrower determines that any provision in Section 3, Section
4.1.1 or Section 4.1.2 would have the effect of causing the Subordinated Debenture to not constitute Tier 2 Capital
of Borrower in accordance with the regulations and other guidance of such regulator published as of the date of this Agreement,
then any such provision shall be deemed modified only to the minimum extent required for the Subordinated Debenture to constitute
Tier 2 Capital of Borrower in accordance with such regulations and guidance. The immediately preceding sentence shall be construed
in a manner that protects the interests of Lender to the maximum extent, while permitting the Subordinated Debenture to qualify
as Tier 2 Capital in accordance with the immediately preceding sentence.

 

    	8

    	 

    

 

 

Section 5.7Usury;
Revival of Liabilities. All agreements between Borrower and Lender (including this Agreement and any other Transaction
Documents) are expressly limited so that in no event whatsoever shall the amount paid or agreed to be paid to Lender exceed the
highest lawful rate of interest permissible under the laws of the State of Illinois. If, from any circumstances whatsoever, fulfillment
of any provision hereof or of any other Transaction Documents, at the time performance of such provision shall be due, shall involve
exceeding the limit of validity prescribed by law which a court of competent jurisdiction may deem applicable hereto, then, ipso
facto, the obligation to be fulfilled shall be reduced to the highest lawful rate of interest permissible under the laws of
the State of Illinois, and if for any reason whatsoever, Lender shall ever receive as interest an amount which would be deemed
unlawful, such interest shall be applied to the payment of the last maturing installment or installments of the indebtedness to
Lender and not to the payment of interest. To the extent that Lender received any payment on account of Borrower’s Liabilities
and any such payment(s) and/or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, subordinated and/or required to be repaid to a trustee, receiver or any other Person under any bankruptcy act, state
or federal law, common law or equitable cause, then to the extent of such payment(s) or proceeds received, Borrower’s Liabilities
or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment(s) and/or proceeds
had not been received by Lender and applied on account of Borrower’s Liabilities; provided, however, if Lender successfully
contests any such invalidation, declaration, set aside, subordination or other order to pay any such payment and/or proceeds to
any third party, the revived Borrower’s Liabilities shall be deemed satisfied.

 

Section 5.8Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed
to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee
if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a
PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business
Day if sent after normal business hours of the recipient; or (d) on the fifth (5th) day after the date mailed, by certified
or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the
addresses indicated below (or at such other address for a party as shall be specified in a notice given in accordance with this
Section 5.8):

 

    	9

    	 

    

 

	if to the Company:	 	First Internet Bancorp
	 	 	8888 Keystone Crossing, Suite 1700

Indianapolis, Indiana 46240

	 	 	Attn:	David B. Becker
	 	 	 	Chairman, President and Chief Executive Officer
	 	 	

Fax No.: (317) 532-7901

E-Mail Address: dbecker@firstib.com

	 	 	 
	with a copy to	 	Faegre Baker Daniels
	 	 	600 E 96th Street, Suite 600

Indianapolis, Indiana 46240-3789

	 	 	Attn:	John Taylor
	 	 	Fax No.: (317) 237-8438

E-Mail Address: john.taylor@FaegreBD.com

	 	 	 
	if to the Holder:	 	CBC Management Partners, LLC

1000 SW Broadway, Suite 1010

Portland, Oregon 97205-3062

	 	 	
        Attn:

        
	Frank Reppenhagen
	 	 	Telephone No.: (503) 227-1400

Fax No.: (503) 228-7105

E-Mail Address: far@cbancap.com

	 	 	 
	with a copy to:	 	Barack
Ferrazzano Kirschbaum & Nagelberg, LLP

                                                       200
West Madison Street, Suite 3900

                                                       Chicago, Illinois 60606

	 	 	
        Attn:

        
	Dennis R. Wendte
	 	 	Telephone No.: (312) 984-3188

Fax No.: (312) 984-3150

E-Mail Address: dennis.wendte@bfkn.com

 

Section 5.9Successors
and Assigns. This Agreement shall inure to the benefit of the parties and their respective heirs, legal representatives,
successors and assigns except that no assignment made by Borrower in violation of this Agreement shall confer any rights on any
assignee of Borrower.

 

Section 5.10No
Joint Venture. Nothing contained herein or in any document executed pursuant hereto and no action or inaction whatsoever
on the part of Lender, shall be deemed to make Lender a partner or joint venturer with Borrower.

 

Section 5.11Publicity.
Neither party shall publicize the Facility without the prior written consent of the other party, which consent may not be unreasonably
withheld, except that Borrower may make any disclosures required by law.

 

Section 5.12Documentation.
All documents and other matters required by any of the provisions of this Agreement to be submitted or furnished to Lender shall
be in form and substance satisfactory to Lender.

 

Section 5.13Additional
Assurances. Borrower agrees that, at any time or from time to time, upon the written request of Lender, it will execute
all such further documents and do all such other acts and things as Lender may reasonably request to effectuate the transaction
herein contemplated.

 

Section 5.14Entire
Agreement. This Agreement and the Exhibits hereto constitute the entire agreement between the parties hereto with respect
to the subject matter hereof and may not be modified or amended in any manner other than by supplemental written agreement executed
by the parties hereto. In entering into this Agreement neither party has relied upon any representation, warranty, covenant, obligation
or other agreement that is not set forth herein or in the other Transaction Documents.

 

Section 5.15Choice
of Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Illinois.
Nothing herein shall be deemed to limit any rights, powers or privileges which Lender may have pursuant to any law of the United
States of America or any rule, regulation or order of any department or agency thereof and nothing herein shall be deemed to make
unlawful any transaction or conduct by Lender which is lawful pursuant to, or which is permitted by, any of the foregoing.

 

Section 5.16Forum;
Venue. To induce Lender to accept this Agreement and the other Transaction Documents, Borrower irrevocably agrees that
all actions or proceedings in any way, manner, or respect, arising out of or from or related to this Agreement or the other Transaction
Documents shall be litigated only in courts having suits within Chicago, Illinois. Borrower hereby consents and submits to the
jurisdiction of any local, state, or federal court located within said city. Borrower hereby waives any right it may have to transfer
or change the venue of any litigation brought against Borrower by Lender.

 

    	10

    	 

    

 

 

Section 5.17No
Third Party Beneficiary. This Agreement is made for the sole benefit of Borrower and Lender, and no other Person shall
be deemed to have any privity of contract hereunder nor any right to rely hereon to any extent or for any purpose whatsoever, nor
shall any other Person have any right of action of any kind hereon or be deemed to be a third party beneficiary hereunder.

 

Section 5.18Captions;
Counterparts. Captions contained in this Agreement in no way define, limit or extend the scope or intent of their respective
provisions. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute
but one and the same instrument.

 

Section 5.19Discretion.
Unless specified to the contrary herein, all references herein to an exercise of discretion or judgment by Lender, to the making
of a determination or designation by Lender, to the application of Lender’s discretion or opinion, to the granting or withholding
of Lender’s consent or approval, to the consideration of whether a matter or thing is satisfactory or acceptable to Lender,
or otherwise involving the decision making of Lender, shall be deemed to mean that Lender shall decide unilaterally using its sole
and absolute discretion or judgment.

 

Section 6.Lender’s Representations
and Warranties. Lender hereby represents and warrants to Borrower that this Agreement and the other Transaction Documents
have been duly authorized, executed and delivered, and are the legal, valid and binding obligations of Lender, enforceable in accordance
with their terms, except as enforceability thereof may be limited by applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization or other similar laws relating to or affecting the rights of creditors generally, by general principles of equity
and by federal or state securities laws or the public policy underlying such laws. 

 

Section 7.Definitions.

 

Section 7.1Defined
Terms. The following capitalized terms generally used in this Agreement and in the other Transaction Documents shall have
the meanings defined or referenced below. Certain other capitalized terms used only in specific sections of this Agreement may
be defined in such sections.

 

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

 

“Borrower’s
Liabilities” means Borrower’s obligations under this Agreement and any other Transaction Documents.

 

“Business
Day” means a day of the week other than a Saturday, Sunday or a legal holiday under the laws of the State of Indiana
or any other day on which banking institutions located in Indiana are authorized or required by law or other governmental action
to close.

 

“Classified
Asset” means any asset, including a loan, that: (i) has been classified by the Bank or the representative of any
Governmental Agency as “substandard,” “doubtful“ or “loss;” (ii) is more than ninety-days
past due; (iii) has been placed on non-accrual status; or (iv) constitutes “other real estate owned.”

 

“Event of
Default” means any Acceleration Event of Default and any Non-Acceleration Event of Default.

 

“FDIC”
means the Federal Deposit Insurance Corporation.

 

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

 

    	11

    	 

    

 

 

“Governmental
Agency(ies)” means, individually or collectively, any federal, state, county or local governmental department, commission,
board, regulatory authority or agency including the Federal Reserve, the FDIC and the Indiana Department of Financial Institutions.

 

“Lender’s
Representatives” means those of Lender’s directors, officers, employees and professional advisors engaged to advise
Lender with respect to this Agreement and the transactions contemplated hereunder who have a reasonable need to know information
about the Borrower and who execute a written confidentiality agreement satisfactory to the Borrower, in its sole discretion, which
will include covenants not to use such information for their own benefit and to maintain the confidentiality of the information
in question.

 

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

 

“Potential
Event of Default” means an event or circumstance that with the passage of time, the giving of notice or both could become
an Event of Default.

 

“Prime Rate”
means the highest prime rate of interest reported in the Money Rates Section of the Wall Street Journal.

 

“Subsidiary”
means (i) any corporation, at least a majority of the outstanding voting stock of which is owned, directly or indirectly, by Borrower
or by one or more of its Subsidiaries, or over which Borrower otherwise exercises control, (ii) any general partnership, joint
venture or similar entity, at least a majority of the outstanding partnership or similar interests of which shall at the time be
owned by Borrower or by one or more of its Subsidiaries, or over which Borrower otherwise exercises control, (iii) any limited
partnership of which Borrower or any of its Subsidiaries is a majority general partner, or over which Borrower otherwise exercises
control, and (iv) any limited liability company, at least a majority of the outstanding voting membership interests of which
are held by Borrower or one or more of its Subsidiaries, or over which Borrower otherwise exercises control.

 

“Tier 1
Capital” has the meaning ascribed to such term under applicable rules and regulations of the
FDIC and the Federal Reserve.

 

“Tier 2
Capital” has the meaning ascribed to such term under applicable rules and regulations of the
FDIC and the Federal Reserve.

 

“United States”
means the United States of America.

 

“Warrant”
means a warrant in the form attached as Exhibit B hereto, as amended, restated, supplemented or modified from time
to time, and each warrant delivered in substitution or exchange for such warrant.

 

Section 7.2Certain
Accounting Terms; Interpretations. Notwithstanding the foregoing, any accounting terms used in this Agreement which are
not specifically defined herein shall have the meaning customarily given to them in accordance with GAAP. The foregoing definitions
are equally applicable to both the singular and plural forms of the terms defined. All references to sections and exhibits are
to sections and exhibits in or to this Agreement unless otherwise specified, and the words “hereof”, “herein”
and “hereunder” and words of like import when used in this Agreement shall refer to this Agreement as a whole and not
to any particular provision of this Agreement. The word “including” when used in this Agreement without the phrase
“without limitation,” shall mean “including, without limitation.” All references to time of day herein
are references to Chicago, Illinois, time unless otherwise specifically provided. Any reference contained herein to attorneys’
fees and expenses shall be deemed to be reasonable fees and expenses of Lender’s outside counsel and of any other third-party
experts or consultants engaged by Lender’s outside counsel on Lender’s behalf. All references to any Transaction Document
shall be deemed to be to such document as amended, restated, supplemented or modified from time to time. With respect to any reference
in this Agreement to any defined term, (a) if such defined term refers to a Person, then it shall also mean all heirs, legal representatives
and permitted successors and assigns of such Person, and (b) if such defined term refers to a document, instrument or agreement,
then it shall also include any replacement, extension or other modification thereof.

 

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Section 7.3Exhibits
and Schedules Incorporated. All exhibits and schedules attached hereto or referenced herein, are hereby incorporated into
this Agreement.

 

Section 7.4Dispute
Resolution. The parties shall attempt to resolve any claim, dispute or controversy arising out of or in relation to the
performance, interpretation, application, or enforcement of this Agreement, including but not limited to breach thereof, through
good faith negotiations between senior executives of the parties, who have authority to settle the same. If not resolved by negotiation,
all such claims, disputes, and controversies must be referred to mediation prior to, and as a condition precedent to, the initiation
of any adjudicative action or proceeding, including litigation. If not resolved within sixty (60) days after the date a written
request for mediation is made by any party, either party may pursue any adjudicative action or proceeding it deems appropriate.
Any mediation will be conducted before a single mediator to be agreed upon by the parties. If the parties cannot agreed on the
mediator, each party may select a mediator and such mediators will together unanimously select a neutral mediator to conduct the
mediation. Each party will bear the fees and expenses of its mediator and all parties will equally bear the fees and expenses of
the final mediator. Nothing in this Section 7.4 will prohibit a party or its affiliate from seeking interim injunctive relief
at any time permitted by law.

 

Section 7.5WAIVER
OF RIGHT TO JURY TRIAL. BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT THAT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LITIGATION ARISING IN ANY WAY IN CONNECTION WITH THIS AGREEMENT, THE NOTES OR ANY OF THE OTHER TRANSACTION
DOCUMENTS, OR ANY OTHER STATEMENTS OR ACTIONS OF BORROWER OR LENDER. BORROWER ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED IN THE
SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT
IT HAS DISCUSSED THIS WAIVER WITH SUCH LEGAL COUNSEL. BORROWER FURTHER ACKNOWLEDGES THAT (a) IT HAS READ AND UNDERSTANDS THE MEANING
AND RAMIFICATIONS OF THIS WAIVER, (b) THIS WAIVER HAS BEEN REVIEWED BY BORROWER AND BORROWER’S COUNSEL AND IS A MATERIAL
INDUCEMENT FOR LENDER TO ENTER INTO THE AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS (c) THIS WAIVER SHALL BE EFFECTIVE AS TO
EACH OF SUCH OTHER TRANSACTION DOCUMENTS AS IF FULLY INCORPORATED THEREIN.

 

[Signatures
on Following Page(s)]

 

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In
Witness Whereof, the parties hereto have caused this Agreement to be executed by their duly authorized representatives
as of the date first above written.

 

	First Internet Bancorp	 	Community BanCapital,
    L.P.
	 	 	 	 
	By: 	/s/
    Kay E. Whitaker	 	By:CBC Partners GP, LLC, its General Partner
		Name:	Kay
    E. Whitaker	 	 	 
		Title:	SVP
    & CFO	 	By:	/s/ Frank
    Reppenhagen
	 	 	 	 	 	Name:	Frank Reppenhagen
	 	 	 	 	 	Title:	Partner
	 	 	 	 	 	 

 

 

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