Document:

Exhibit 10.1

 

SUBORDINATED NOTE PURCHASE AGREEMENT

 

This SUBORDINATED NOTE PURCHASE AGREEMENT
(this “Agreement”) is dated as of December 17, 2015, and is made by and among Wellesley Bancorp, Inc., a Maryland
corporation (“Company”), and the several purchasers of the Subordinated Notes identified on the signature pages
hereto (each a “Purchaser” and collectively, the “Purchasers”).

 

RECITALS

 

WHEREAS, Company has requested that
the Purchasers purchase from Company up to $10,000,000 in aggregate principal amount of Subordinated Notes (as defined herein),
which aggregate amount is intended to qualify as Tier 2 Capital (as defined herein).

 

WHEREAS, Company has engaged Sandler
O’Neill + Partners, L.P., as its exclusive placement agent (“Placement Agent”) for the offering of the
Subordinated Notes.

 

WHEREAS, each of the Purchasers
is an institutional accredited investor as such term is defined in Rule 501 of Regulation D (“Regulation D”)
promulgated under the Securities Act of 1933, as amended (the “Securities Act”).

 

WHEREAS, the offer and sale of the
Subordinated Notes by Company is being made only to Qualified Institutional Buyers as defined in Rule 144A under the Securities
Act and institutional Accredited Investors as defined in Rules 501(a)(1), (2), (3) or (7) under the Securities Act, in reliance
upon the exemption under Section 4(a)(2) of the Securities Act and the provisions of Rule 506(b) of Regulation D promulgated thereunder.

 

WHEREAS, each Purchaser is willing
to purchase from Company a Subordinated Note in the principal amount set forth on such Purchaser’s respective signature page
hereto (the “Subordinated Note Amount”) in accordance with the terms of, subject to the conditions in and in
reliance on, the recitals, representations, warranties, covenants and agreements set forth herein and in the Subordinated Notes.

 

NOW, THEREFORE, in consideration
of the mutual covenants, conditions and agreements herein contained and other good and valuable consideration, the receipt of which
is hereby acknowledged, the parties hereto hereby agree as follows:

 

AGREEMENT

 

I.           DEFINITIONS.

 

A.           Defined
Terms. The following capitalized terms generally used in this Agreement and in the Subordinated Notes 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.

 

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

 

“Bank”
means Wellesley Bank, a Massachusetts cooperative bank and wholly owned subsidiary of Company.

 

“Business
Day” means any day other than a Saturday, Sunday or any other day on which banking institutions in the Commonwealth
of Massachusetts are permitted or required by any applicable law or executive order to close.

 

“Closing”
has the meaning set forth in Section II.E.

 

“Closing
Date” means December 17, 2015.

 

“Company”
has the meaning set forth in the preamble hereto and shall include any successors to Company.

 

“Company’s
Liabilities” means Company’s obligations under the Transaction Documents.

 

“Company’s
SEC Reports” means (i) Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014,
as filed with the SEC, (ii) Company’s Definitive Proxy Statement on Schedule 14A related to its 2015 Annual Meeting of Shareholders,
as filed with the SEC, (iii) any Current Report on Form 8-K, as filed or furnished by Company with the SEC since January 1, 2015,
or (iv) Company’s Quarterly Reports on Form 10-Q for the quarterly periods ended on March 31, 2015, June 30, 2015, and September
30, 2015, as filed with the SEC pursuant to the requirements of the Exchange Act.

 

“Disbursement”
has the meaning set forth in Section III.A.

 

“Equity
Interest” means any and all shares, interests, participations or other equivalents (however designated) of capital
stock of a corporation, any and all equivalent ownership interests in a Person which is not a corporation, and any and all warrants,
options or other rights to purchase any of the foregoing.

 

“Exchange
Act” has the meaning set forth in Section IV.H.

 

“FDIC”
means the Federal Deposit Insurance Corporation.

 

“GAAP”
means generally accepted accounting principles in effect from time to time in the United States of America.

 

“Governmental
Agency(ies)” means, individually or collectively, any federal, state, county or local governmental department, commission,
board, regulatory authority or agency (including, without limitation, each applicable Regulatory Agency) with jurisdiction over
Company.

 

    2 

    	 

    

 

“Governmental
Licenses” has the meaning set forth in Section IV.C.

 

“Hazardous
Materials” means flammable explosives, asbestos, urea formaldehyde insulation, polychlorinated biphenyls, radioactive
materials, hazardous wastes, toxic or contaminated substances or similar materials, including, without limitation, any substances
which are “hazardous substances,” “hazardous wastes,” “hazardous materials” or “toxic
substances” under the Hazardous Materials Laws and/or other applicable environmental laws, ordinances or regulations.

 

“Hazardous
Materials Laws” mean any laws, regulations, permits, licenses or requirements pertaining to the protection,
preservation, conservation or regulation of the environment which relates to real property, including: the Clean Air Act, as amended,
42 U.S.C. Section 7401 et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. Section 1251 et seq.; the Resource
Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Section 6901 et seq.; the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended (including the Superfund Amendments and Reauthorization Act of 1986), 42 U.S.C. Section 9601
et seq.; the Toxic Substances Control Act, as amended, 15 U.S.C. Section 2601 et seq.; the Occupational Safety and Health Act,
as amended, 29 U.S.C. Section 651, the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.;
the Mine Safety and Health Act of 1977, as amended, 30 U.S.C. Section 801 et seq.; the Safe Drinking Water Act, 42 U.S.C. Section
300f et seq.; and all comparable state and local laws, laws of other jurisdictions or orders and regulations.

 

“Indebtedness”
means and includes: (i) all items arising from the borrowing of money that, according to GAAP as in effect from time to time, would
be included in determining total liabilities as shown on the consolidated balance sheet of Company or any Subsidiary of Company;
and (ii) all obligations secured by any lien in property owned by Company or any Subsidiary whether or not such obligations shall
have been assumed; provided, however, Indebtedness shall not include deposits or other indebtedness created, incurred
or maintained in the ordinary course of Company’s or Bank’s business (including, without limitation, federal funds
purchased, advances from any Federal Home Loan Bank, secured deposits of municipalities, letters of credit issued by Company or
Bank and repurchase arrangements) and consistent with customary banking practices and applicable laws and regulations.

 

“Leases”
means all leases, licenses or other documents providing for the use or occupancy of any portion of any Property, including all
amendments, extensions, renewals, supplements, modifications, sublets and assignments thereof and all separate letters or separate
agreements relating thereto.

 

“Material
Adverse Effect” means, with respect to any Person, any change or effect that (i) is or would be reasonably likely to
be material and adverse to the financial position, results of operations or business of such Person, or (ii) would materially impair
the ability of any Person to perform its respective obligations under any of the Transaction Documents, or otherwise materially
impede the consummation of the transactions contemplated hereby; provided, however, that “Material Adverse
Effect” shall not be deemed to include the impact of (1) changes in banking and similar laws, rules or regulations of general
applicability or interpretations thereof by Governmental Agencies, (2) changes in GAAP or regulatory accounting requirements applicable
to financial institutions and their holding companies generally, (3) changes after the date of this Agreement in general economic
or capital market conditions affecting financial institutions or their market prices generally and not specifically related to
Company or Purchasers, (4) direct effects of compliance with this Agreement on the operating performance of Company or Purchasers,
including expenses incurred by Company or Purchasers in consummating the transactions contemplated by this Agreement, and (5) the
effects of any action or omission taken by Company with the prior written consent of Purchasers, and vice versa, or as otherwise
contemplated by this Agreement and the Subordinated Notes.

 

    3 

    	 

    

 

“Material
Contract” shall mean any contract, agreement, indenture, mortgage, deed of trust, pledge, bank loan or credit agreement,
or any other agreement or instrument to which Company or Bank, as applicable, is a party or by which it or any of its properties
may be bound or affected that has been filed by Company as an exhibit to an SEC Report pursuant to Item 601(b)(4) or 601(b)(10)
of Regulation S-K.

 

“Maturity
Date” means December 30, 2025.

 

“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.

 

“Placement
Agent” means Sandler O’Neill + Partners, L.P.

 

“Property”
means any real property owned or leased by Company or any Affiliate or Subsidiary of Company.

 

“Purchaser”
or “Purchasers” has the meaning set forth in the preamble hereto.

 

“Regulation
D” has the meaning set forth in the Recitals.

 

“Regulatory
Agencies” means any federal or state agency charged with the supervision or regulation of depositary institutions or
holding companies of depositary institutions, or engaged in the insurance of depositary institution deposits, or any court, administrative
agency or commission or other authority, body or agency having supervisory or regulatory authority with respect to Company, Bank
or any of their Subsidiaries.

 

“SEC”
means the Securities and Exchange Commission.

 

“Secondary
Market Transaction” has the meaning set forth in Section V.E.

 

“Securities
Act” has the meaning set forth in the Recitals.

 

“Subordinated
Note” means the 6.0% Fixed to Floating Rate Subordinated Note due December 30, 2025 (or collectively, the “Subordinated
Notes”) in the form attached as Exhibit A hereto, as amended, restated, supplemented or modified from time to
time, and each Subordinated Note delivered in substitution or exchange for such Subordinated Note.

 

“Subordinated
Note Amount” has the meaning set forth in the Recitals.

 

    4 

    	 

    

 

“Subsidiary”
means with respect to any Person, any corporation or entity in which a majority of the outstanding Equity Interest is directly
or indirectly owned by such Person.

 

“Tier 2 Capital”
has the meaning given to the term “Tier 2 capital” in 12 C.F.R. Part 217, as amended, modified and supplemented and
in effect from time to time or any replacement thereof.

 

“Transaction
Documents” has the meaning set forth in Section III.B.1.a.

 

B.           Interpretations.
The foregoing definitions are equally applicable to both the singular and plural forms of the terms defined. 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 Eastern Time unless otherwise specifically provided. All references to the Agreement and Subordinated
Notes shall be deemed to be to such documents as amended, modified or restated from time to time. With respect to any reference
in this Agreement to any defined term, (i) 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 (ii) if such defined term refers to a document, instrument or agreement,
then it shall also include any replacement, extension or other modification thereof.

 

C.           Exhibits
Incorporated. All Exhibits attached are hereby incorporated into this Agreement.

 

II.          SUBORDINATED DEBT.

 

A.           Certain
Terms. Subject to the terms and conditions herein contained, Company proposes to issue and sell to the Purchasers, severally
and not jointly, Subordinated Notes, in an amount equal to the aggregate of the Subordinated Note Amounts. The Purchasers, severally
and not jointly, each agree to purchase the Subordinated Notes, from Company on the Closing Date in accordance with the terms of,
and subject to the conditions and provisions set forth in, this Agreement and the Subordinated Notes. The Subordinated Note Amounts
shall be disbursed in accordance with Section III.A. The Subordinated Notes shall bear interest per annum as set forth in
the Subordinated Notes.

 

B.           Subordination.
The Subordinated Notes shall be subordinated in accordance with the subordination provisions set forth therein.

 

C.           Maturity
Date. On the Maturity Date, all sums due and owing under this Agreement and the Subordinated Notes shall be repaid in full.
Company acknowledges and agrees that the Purchasers have not made any commitments, either express or implied, to extend the terms
of the Subordinated Notes past their Maturity Date, and shall not extend such terms beyond the Maturity Date unless Company and
the Purchasers hereafter specifically otherwise agree in writing.

 

D.           Unsecured
Obligations. The obligations of Company to the Purchasers under the Subordinated Notes shall be unsecured.

 

    5 

    	 

    

 

E.           The Closing.
The execution and delivery of the Transaction Documents (the “Closing”) shall occur at the offices of Company
at 10:00 a.m. (local time) on the Closing Date, or at such other place or time or on such other date as the parties hereto may
agree.

 

F.           Payments.
Company agrees that matters concerning payments and application of payments shall be as set forth in this Agreement and in the
Subordinated Notes.

 

G.           Right of
Offset. Each Purchaser hereby expressly waives any right of offset it may have against Company.

 

H.           Use of
Proceeds. Company shall use the net proceeds from the sale of Subordinated Notes for general corporate purposes, including
for the provision of additional liquidity and working capital.

 

III.        DISBURSEMENT.

 

A.           Disbursement.
On the Closing Date, assuming all of the terms and conditions set forth in Section III.B have been satisfied by Company
and Company has executed and delivered to Purchasers each of the Agreement and the Subordinated Notes and any other related documents
in form and substance reasonably satisfactory to Purchasers, each Purchaser shall disburse in immediately available funds the Subordinated
Note Amount set forth on such Purchaser’s signature page hereto to Company in exchange for a Subordinated Note with a principal
amount equal to such Subordinated Note Amount (the “Disbursement”). Company will deliver to the respective Purchaser
one or more certificates representing the Subordinated Notes in definitive form (or provide evidence of the same with the original
to be delivered by Company by overnight delivery on the next calendar day in accordance with the delivery instructions of Purchaser),
registered in such names and denominations as such Purchasers may request.

 

B.           Conditions
Precedent to Disbursement. 

 

1.           Conditions
to Purchasers’ Obligation. The obligation of each Purchaser to consummate the purchase of the Subordinated Notes
to be purchased by them at Closing and to effect the Disbursement is subject to delivery by or at the direction of Company to such
Purchaser each of the following (or written waiver by such Purchaser prior to the Closing of such delivery):

 

a)           Transaction
Documents. This Agreement and the Subordinated Notes (collectively, the “Transaction Documents”), each duly
authorized and executed by Company.

 

b)           Authority
Documents.

 

		(1)	A copy, certified by the Secretary or Assistant Secretary of Company, of the Articles of Incorporation,
of Company;

 

		(2)	A certificate of existence of Company issued by the Secretary of State of the State of Maryland;

 

    6 

    	 

    

 

		(3)	A copy, certified by the Secretary or Assistant Secretary, of the Bylaws of Company;

 

		(4)	A copy, certified by the Secretary or Assistant Secretary of Company, of the resolutions of the
board of directors (and any committee thereof) of Company authorizing the execution, delivery and performance of the Transaction
Documents;

 

		(5)	An incumbency certificate of the Secretary or Assistant Secretary of Company certifying the names
of the officer or officers of Company authorized to sign the Transaction Documents and the other documents provided for in this
Agreement; and

 

		(6)	The opinion of Kilpatrick Townsend & Stockton LLP, counsel to the Company, dated as of the
Closing Date, substantially in the form set forth at Exhibit B attached hereto addressed to the Purchasers and Placement
Agent.

 

c)           Other
Documents. Such other certificates, affidavits, schedules, resolutions, notes and/or other documents which are provided for
hereunder or as a Purchaser may reasonably request.

 

d)           Aggregate
Investments. Prior to, or contemporaneously with the Closing, each Purchaser shall have actually subscribed for the Subordinated
Note Amount set forth on such Purchaser’s signature page.

 

2.           Conditions
to Company’s Obligation. 

 

		a)	Since the date of this Agreement, there shall not have been any action taken, or any law, rule
or regulation enacted, entered, enforced or deemed applicable to Company or its Subsidiaries or the transactions contemplated by
this Agreement by any Governmental Agency which imposes any restriction or condition that Company determines, in its reasonable
good faith judgment, is materially and unreasonably burdensome on Company’s business or would materially reduce the economic
benefits of the transactions contemplated by this Agreement to Company to such a degree that Company would not have entered into
this Agreement had such condition or restriction been known to it on the date hereof.

 

		b)	With respect to a given Purchaser, the obligation of Company to consummate the sale of the Subordinated
Notes and to effect the Closing is subject to delivery by or at the direction of such Purchaser to Company this Agreement, duly
authorized and executed by such Purchaser.

 

    7 

    	 

    

 

IV.        REPRESENTATIONS AND WARRANTIES
OF COMPANY.

 

Company hereby represents and warrants
to each Purchaser as follows:

 

A.           Organization
and Authority.

 

1.           Organization
Matters of Company and Its Subsidiaries.

 

		a)	Company is validly existing and in good standing under the laws of the State of Maryland and has
all requisite corporate power and authority to conduct its business and activities as presently conducted, to own its properties,
and to perform its obligations under the Transaction Documents. Company is duly qualified as a foreign corporation to transact
business and is in good standing in each other jurisdiction in which such qualification is required, whether by reason of the ownership
or leasing of property or the conduct of business, except where the failure so to qualify or to be in good standing would not result
in a Material Adverse Effect. Company is duly registered as a bank holding company under the Bank Holding Company Act of 1956,
as amended.

 

		b)	Each Subsidiary other than the Bank either has been duly organized and is validly existing as a
corporation or limited liability company, or, in the case of the Bank, has been duly chartered and is validly existing as a Massachusetts
chartered cooperative bank, in each case in good standing under the laws of the jurisdiction of its incorporation, has corporate
power and authority to own, lease and operate its properties and to conduct its business and is duly qualified as a foreign corporation
to transact business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of
the ownership or leasing of property or the conduct of business, except where the failure so to qualify or to be in good standing
would not result in a Material Adverse Effect. All of the issued and outstanding shares of capital stock or other equity interests
in each Subsidiary have been duly authorized and validly issued, are fully paid and non-assessable and are owned by Company, directly
or through Subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance or claim; none of the outstanding
shares of capital stock of, or other equity interests in, any Subsidiary were issued in violation of the preemptive or similar
rights of any securityholder of such Subsidiary or any other entity.

 

		c)	The deposit accounts of Bank are insured by the FDIC up to applicable limits. Neither Company nor
Bank has received any notice or other information indicating that Bank is not an “insured depository institution” as
defined in 12 U.S.C. Section 1813, nor has any event occurred which could reasonably be expected to adversely affect the status
of Bank as an FDIC-insured institution.

 

    8 

    	 

    

 

2.           Capital
Stock and Related Matters. All of the outstanding capital stock of Company has been duly authorized and validly issued
and is fully paid and nonassessable. There are, as of the date hereof, no outstanding options, rights, warrants or other agreements
or instruments obligating Company to issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of the
capital stock of Company or obligating Company to grant, extend or enter into any such agreement or commitment to any Person other
than Company except (i) as described in Company’s SEC Reports or (ii) pursuant to employment arrangements, agreements or
understanding or Company’s equity incentive plans duly adopted by Company’s Board of Directors.

 

3.           Subsidiaries.
Each of Company’s Subsidiaries that is a “significant subsidiary” as defined in Rule 1-02 of Regulation S-X is
reflected in its Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

 

B.           No Impediment
to Transactions.

 

1.           Transaction
is Legal and Authorized. The issuance of the Subordinated Notes, the borrowing of the aggregate of the Subordinated Note
Amounts, the execution of the Transaction Documents and compliance by Company with all of the provisions of the Transaction Documents
are within the corporate and other powers of Company.

 

2.           Agreement.
The Agreement has been duly authorized, executed and delivered, and, assuming due authorization, execution and delivery by the
other parties thereto, are the legal, valid and binding obligations of Company, enforceable in accordance with their terms, except
as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or
affecting creditors’ rights generally or by general equitable principles.

 

3.           Subordinated
Notes. The Subordinated Notes have been duly authorized by Company and when executed by Company and issued, delivered to
and paid for by the Purchasers in accordance with the terms of the Agreement, will have been duly executed, authenticated, issued
and delivered and will constitute legal, valid and binding obligations of Company, and enforceable in accordance with their terms,
except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating
to or affecting creditors’ rights generally or by general equitable principles.

 

    9 

    	 

    

 

4.           No
Defaults or Restrictions. Neither the execution and delivery of the Transaction Documents nor compliance with their respective
terms and conditions will (whether with or without the giving of notice or lapse of time or both) (i) violate, conflict with or
result in a breach of, or constitute a default under: (1) the Articles of Incorporation or Bylaws of Company; (2) any of the terms,
obligations, covenants, conditions or provisions of any corporate restriction or of any contract, agreement, indenture, mortgage,
deed of trust, pledge, bank loan or credit agreement, or any other agreement or instrument to which Company or Bank, as applicable,
is now a party or by which it or any of its properties may be bound or affected; (3) any judgment, order, writ, injunction, decree
or demand of any court, arbitrator, grand jury, or Governmental Agency applicable to Company or Bank; or (4) any statute, rule
or regulation applicable to Company, except, in the case of items (2), (3) or (4), for such violations, conflicts, breaches or
defaults that would not reasonably be expected to have, singularly or in the aggregate, a Material Adverse Effect on Company and
its Subsidiaries, taken as a whole, or (ii) result in the creation or imposition of any lien, charge or encumbrance of any nature
whatsoever upon any property or asset of Company or any subsidiary. Neither Company nor Bank is in default in the performance,
observance or fulfillment of any of the terms, obligations, covenants, conditions or provisions contained in any Material Contract
creating, evidencing or securing Indebtedness of any kind or pursuant to which any such Indebtedness is issued, or any other Material
Contract, except for in each case, only such defaults that would not reasonably be expected to have, singularly or in the aggregate,
a Material Adverse Effect on Company.

 

5.           Governmental
Consent. No governmental orders, permissions, consents, approvals or authorizations are required to be obtained by Company
that have not been obtained, and no registrations or declarations are required to be filed by Company that have not been filed
in connection with, or, in contemplation of, the execution and delivery of, and performance under, the Transaction Documents, except
for applicable requirements, if any, of the Securities Act, the Exchange Act or state securities laws or “blue sky”
laws of the various states and any applicable federal or state banking laws and regulations.

 

C.           Possession
of Licenses and Permits. Company and its Subsidiaries possess such permits, licenses, approvals, consents and other authorizations
(collectively, “Governmental Licenses”) issued by the appropriate Governmental Agencies necessary to conduct
the business now operated by it except where the failure to possess such Governmental Licenses would not, singularly or in the
aggregate, have a Material Adverse Effect on Company or such applicable Subsidiary; Company and each Subsidiary of Company is in
compliance with the terms and conditions of all such Governmental Licenses, except where the failure so to comply would not, singly
or in the aggregate, have a Material Adverse Effect on Company or such applicable Subsidiary of Company; all of the Governmental
Licenses are valid and in full force and effect, except where the invalidity of such Governmental Licenses or the failure of such
Governmental Licenses to be in full force and effect would not have a Material Adverse Effect on Company or such applicable Subsidiary
of Company; and neither Company nor any Subsidiary of Company has received any notice of proceedings relating to the revocation
or modification of any such Governmental Licenses.

 

    10 

    	 

    

 

D.           Financial
Condition.

 

		1.	Company Financial Statements. The financial statements of Company included in Company’s
SEC Reports (including the related notes, where applicable) (i) have been prepared from, and are in accordance with, the books
and records of Company; (ii) fairly present in all material respects the results of operations, cash flows, changes in stockholders’
equity and financial position of Company and its consolidated Subsidiaries, for the respective fiscal periods or as of the respective
dates therein set forth (subject in the case of unaudited statements to recurring year-end audit adjustments normal in nature and
amount), as applicable; (iii) complied as to form, as of their respective dates of filing in all material respects with applicable
accounting and banking requirements as applicable, with respect thereto; and (iv) have been prepared in accordance with GAAP consistently
applied during the periods involved, except, in each case, as indicated in such statements or in the notes thereto and Regulation
S-X promulgated under the Securities Act. The books and records of Company have been, and are being, maintained in all material
respects in accordance with GAAP and any other applicable legal and accounting requirements. Company does not have any material
liability of any nature whatsoever (whether absolute, accrued, contingent or otherwise and whether due or to become due), except
for those liabilities that are reflected or reserved against on the consolidated balance sheet of Company contained in Company’s
SEC Reports for Company’s most recently completed quarterly or annual fiscal period, as applicable, and for liabilities incurred
in the ordinary course of business consistent with past practice or in connection with this Agreement and the transactions contemplated
hereby.

 

		2.	Absence of Default. Since the date of the latest audited financial statements included
in Company’s SEC Reports, no event has occurred which either of itself or with the lapse of time or the giving of notice
or both, would give any creditor of Company the right to accelerate the maturity of any material Indebtedness of Company. Company
is not in default under any other Lease, agreement or instrument, or any law, rule, regulation, order, writ, injunction, decree,
determination or award, non-compliance with which could reasonably be expected to result in a Material Adverse Effect on Company.

 

		3.	Solvency. After giving effect to the consummation of the transactions contemplated
by this Agreement, Company has capital sufficient to carry on its business and transactions and is solvent and able to pay its
debts as they mature. No transfer of property is being made and no Indebtedness is being incurred in connection with the transactions
contemplated by this Agreement with the intent to hinder, delay or defraud either present or future creditors of Company or any
Subsidiary of Company.

 

    11 

    	 

    

 

		4.	Ownership of Property. Company and each of its Subsidiaries has good and marketable
title as to all real property owned by it and good title to all assets and properties owned by Company and such Subsidiary in the
conduct of its businesses, whether such assets and properties are real or personal, tangible or intangible, including assets and
property reflected in the most recent balance sheet contained in Company’s SEC Reports or acquired subsequent thereto (except
to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such
balance sheet), subject to no encumbrances, liens, mortgages, security interests or pledges, except (i) those items which secure
liabilities for public or statutory obligations or any discount with, borrowing from or other obligations to the Federal Home Loan
Bank, inter-bank credit facilities, reverse repurchase agreements or any transaction by Bank acting in a fiduciary capacity, (ii)
statutory liens for amounts not yet delinquent or which are being contested in good faith and (iii) such as do not, singly or in
the aggregate, materially affect the value of such property and do not materially interfere with the use made and proposed to be
made of such property by Company or any of its Subsidiaries. Company and each of its Subsidiaries, as lessee, has the right under
valid and existing leases of real and personal properties that are material to Company or such Subsidiary, as applicable, in the
conduct of its business to occupy or use all such properties as presently occupied and used by it. Such existing leases and commitments
to lease constitute or will constitute operating leases for both tax and financial accounting purposes and the lease expense and
minimum rental commitments with respect to such leases and lease commitments are as disclosed in all material respects in Company’s
SEC Reports.

 

E.          No Material
Adverse Change. Since the date of the latest audited financial statements included in Company’s SEC Reports, there
has been no development or event which has had or could reasonably be expected to have a Material Adverse Effect on Company or
any of its Subsidiaries.

 

F.          Legal Matters.

 

		1.	Compliance with Law. Company and each of its Subsidiaries (i) has complied with and
(ii) is not under investigation with respect to, and, to Company’s knowledge, have not been threatened to be charged with
or given any notice of any material violation of any applicable statutes, rules, regulations, orders and restrictions of any domestic
or foreign government, or any instrumentality or agency thereof, having jurisdiction over the conduct of its business or the ownership
of its properties, except where any such failure to comply or violation would not reasonably be expected to have a Material Adverse
Effect on Company or any of its Subsidiaries.

 

    12 

    	 

    

 

		2.	Regulatory Enforcement Actions. Company, Bank and its other Subsidiaries are in compliance
with all laws administered by and regulations of any Governmental Agency applicable to it or to them, except where the failure
to so comply would have a Material Adverse Effect. None of Company, Bank, Company’s Subsidiaries nor any of their officers
or directors is now operating under any restrictions, agreements, memoranda, or commitments (other than restrictions of general
application) imposed by any Governmental Agency, nor are, to Company’s knowledge, (a) any such restrictions threatened or
(b) any agreements, memoranda or commitments being sought by any Governmental Agency.

 

		3.	Pending Litigation. There are no actions, suits, proceedings or written agreements
pending, or, to Company’s knowledge, threatened or proposed, against Company, Bank, or any of its other 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, either separately or in the aggregate, would reasonably be expected to have a Material Adverse
Effect on Company and any of its Subsidiaries, taken as a whole, or affect issuance or payment of the Subordinated Notes; and neither
Company nor any of its Subsidiaries is a party to or named as subject to the provisions of any order, writ, injunction, or decree
of, or any written agreement with, any court, commission, board or agency, domestic or foreign, that either separately or in the
aggregate, will have a Material Adverse Effect on Company and any of its Subsidiaries, taken as a whole.

 

		4.	Environmental. No Property is or, to Company’s knowledge, has been a site for
the use, generation, manufacture, storage, treatment, release, threatened release, discharge, disposal, transportation or presence
of any Hazardous Materials and neither Company nor any of its Subsidiaries has engaged in such activities. There are no claims
or actions pending or, to Company’s knowledge, threatened against Company or any of its Subsidiaries by any Governmental
Agency or by any other Person relating to any Hazardous Materials or pursuant to any Hazardous Materials Law.

 

		5.	Brokerage Commissions. Except for commissions paid to the Placement Agent, neither
Company nor any Affiliate of Company is obligated to pay any brokerage commission or finder’s fee to any Person in connection
with the transactions contemplated by this Agreement.

 

		6.	Investment Company Act. Neither Company nor any of its Subsidiaries is an “investment
company” or a company “controlled” by an “investment company,” within the meaning of the Investment
Company Act of 1940, as amended.

 

G.           No Misstatement.
No information, exhibit, report, schedule or document, when viewed together as a whole, furnished by Company to Purchasers in connection
with the negotiation, execution or performance of this Agreement contains any untrue statement of a material fact, or omits to
state a material fact necessary to make the statements contained therein, in light of the circumstances under which they were made,
not misleading.

 

    13 

    	 

    

 

H.           Reporting
Compliance. Company is subject to, and is in compliance in all material respects with, the reporting requirements of Section
13 and Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and the rules and the regulations of the
SEC thereunder (collectively, the “Exchange Act”). Company’s SEC Reports at the time they were or hereafter
are filed with the SEC, complied in all material respects with the requirements of the Exchange Act and did not and do not include
any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading.

 

I.           Internal
Control Over Financial Reporting. Company and its Subsidiaries maintain systems of “internal control over financial
reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that comply with the requirements of the Exchange Act and have
been designed by, or under the supervision of, their respective principal executive and principal financial officers, or persons
performing similar functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with GAAP, including, but not limited to, a system of accounting controls
sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or
specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity
with GAAP and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. Since the end of Company’s most recent audited
fiscal year, (y) Company has no knowledge of (i) any material weakness in Company’s internal control over financial reporting
(whether or not remediated) or (ii) any fraud, whether or not material, that involves management or other employees who have a
significant role in Company’s internal controls and (z) there has been no change in Company’s internal control over
financial reporting that has materially affected, or is reasonably likely to materially affect, Company’s internal control
over financial reporting.

 

J.           Disclosure
Controls and Procedures. Company and its Subsidiaries maintain an effective system of disclosure controls and procedures
(as defined in Rule 13a-15 and Rule 15d-15 of the Exchange Act), that (i) are designed to ensure that information required to be
disclosed by Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in the SEC’s rules and forms and that material information relating to Company and its
Subsidiaries is made known to Company’s principal executive officer and principal financial officer by others within Company
and its Subsidiaries to allow timely decisions regarding disclosure, and (ii) are effective in all material respects to perform
the functions for which they were established. As of the date hereof, Company has no knowledge that would reasonably cause it to
believe that the evaluation to be conducted of the effectiveness of Company’s disclosure controls and procedures for the
most recently ended fiscal quarter period will result in a finding that such disclosure controls and procedures are ineffective
for such quarter ended. Based on the evaluation of Company’s and each Subsidiary’s disclosure controls and procedures
described above, Company is not aware of (1) any significant deficiency in the design or operation of internal controls which could
adversely affect Company’s ability to record, process, summarize and report financial data or any material weaknesses in
internal controls or (2) any fraud, whether or not material, that involves management or other employees who have a significant
role in Company’s internal controls. Since the most recent evaluation of Company’s disclosure controls and procedures
described above, there have been no significant changes in internal controls or in other factors that could significantly affect
internal controls.

 

    14 

    	 

    

 

K.           No Registration.
No person has the right to require Company or any of its Subsidiaries to register any securities for sale under the Securities
Act by reason of the issuance and sale of the Subordinated Notes to be sold by Company hereunder.

 

L.           Representations
and Warranties Generally. The representations and warranties of Company set forth in this Agreement are true and correct
as of the date hereof and will be true and correct as of the Closing Date and as otherwise specifically provided herein. Any certificate
signed by an officer of Company and delivered to the Purchasers or to counsel for Purchasers shall be deemed to be a representation
and warranty by Company to the Purchasers as to the matters set forth therein.

 

V.           GENERAL COVENANTS, CONDITIONS
AND AGREEMENTS

 

Company hereby further
covenants and agrees with each Purchaser as follows:

 

A.           Compliance
with Transaction Documents. Company shall comply with, observe and timely perform each and every one of the covenants,
agreements and obligations under the Transaction Documents.

 

B.           Compliance
with Laws.

 

1.           Generally.
Company shall comply and cause Bank and each other Subsidiary to comply with all applicable statutes, rules, regulations, orders
and restrictions in respect of the conduct of its business and the ownership of its properties, except, in each case, where such
noncompliance would not reasonably be expected to have a Material Adverse Effect on Company.

 

2.           Regulated
Activities. Company shall not itself, nor shall it cause, permit or allow Bank or any other Subsidiary to (i) engage in
any business or activity not permitted by all applicable laws and regulations, except where such business or activity would not
reasonably be expected to have a Material Adverse Effect on Company, Bank and/or such Subsidiary or (ii) make any loan or advance
secured by the capital stock of another bank or depository institution, or acquire the capital stock, assets or obligations of
or any interest in another bank or depository institution, in each case other than in accordance with applicable laws and regulations
and safe and sound banking practices.

 

3.           Taxes.
Company shall and shall cause Bank and any other Subsidiary to promptly pay and discharge all material taxes, assessments and other
governmental charges imposed upon Company, Bank or any other Subsidiary or upon the income, profits, or property of Company or
any Subsidiary and all claims for labor, material or supplies which, if unpaid, might by law become a lien or charge upon the property
of Company, Bank or any other Subsidiary. Notwithstanding the foregoing, none of Company, Bank or any other Subsidiary shall be
required to pay any such tax, assessment, charge or claim, so long as the validity thereof shall be contested in good faith by
appropriate proceedings, and appropriate reserves therefor shall be maintained on the books of Company, Bank and such other Subsidiary.

 

    15 

    	 

    

 

4.           Dividends,
Payments, and Guarantees During Event of Default. During the continuance of an Event of Default (as defined under the Subordinated
Notes) and except as required by any federal or state Governmental Agency, Company agrees not to (a) declare or pay any dividends
on, or redeem, purchase, acquire or make a liquidation payment with respect to, any of its capital stock; (b) make any payment
of principal of, or interest or premium, if any, on, or repay, repurchase or redeem any of Company’s debt that ranks equal
with or junior to the Subordinated Notes; or (c) make any payments under any guarantee that ranks equal with or junior to the Subordinated
Notes, other than (i) any dividends or distributions in shares of, or options, warrants or rights to subscribe for or purchase
shares of, any class of Company’s common stock; (ii) any declaration of a dividend in connection with the implementation
of a shareholders’ rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase
of any such rights pursuant thereto; (iii) as a result of a reclassification of Company’s capital stock or the exchange or
conversion of one class or series of Company’s capital stock for another class or series of Company’s capital stock;
(iv) the purchase of fractional interests in shares of Company’s capital stock pursuant to the conversion or exchange provisions
of such capital stock or the security being converted or exchanged; or (v) purchases of any class of Company’s common stock
related to the issuance of common stock or rights under any benefit plans for Company’s directors, officers or employees
or any of Company’s dividend reinvestment plans.

 

5.           Tier
2 Capital. If all or any portion of the Subordinated Notes ceases to be deemed to be Tier 2 Capital, other than due to
the limitation imposed on the capital treatment of subordinated debt during the five (5) years immediately preceding the Maturity
Date of the Subordinated Notes, Company will immediately notify the Purchasers, and thereafter Company and the Purchasers will
work together in good faith to execute and deliver all agreements as reasonably necessary in order to restructure the applicable
portions of the obligations evidenced by the Subordinated Notes to qualify as Tier 2 Capital; provided, however, that nothing contained
in this Agreement shall limit Company’s right to redeem the Subordinated Notes upon the occurrence of a Tier 2 Capital Event
as described in the Subordinated Notes.

 

D.           Absence
of Control. It is the intent of the parties to this Agreement that in no event shall Purchasers, by reason of any of the
Transaction Documents, be deemed to control, directly or indirectly, Company, and Purchasers shall not exercise, or be deemed to
exercise, directly or indirectly, a controlling influence over the management or policies of Company.

 

    16 

    	 

    

 

E.           Secondary
Market Transactions. Each Purchaser shall have the right at any time and from time to time to securitize its Subordinated
Notes or any portion thereof in a single asset securitization or a pooled loan securitization of rated single or multi-class securities
secured by or evidencing ownership interests in the Subordinated Notes (each such securitization is referred to herein as a “Secondary
Market Transaction”). In connection with any such Secondary Market Transaction, Company shall, at Company’s expense,
cooperate with Purchasers and otherwise reasonably assist Purchasers in satisfying the market standards to which Purchasers customarily
adhere or which may be reasonably required in the marketplace or by applicable rating agencies in connection with any such Secondary
Market Transaction. Subject to any written confidentiality obligation, all information regarding Company may be furnished, without
liability except in the case of gross negligence or willful misconduct, to any Purchaser and to any Person reasonably deemed necessary
by Purchaser in connection with participation in such Secondary Market Transaction. All documents, financial statements, appraisals
and other data relevant to Company or the Subordinated Notes may be retained by any such Person.

 

F.           Bloomberg.
Within 30 days after Closing, Company shall use commercially reasonable efforts to cause the Subordinated Notes to be identified
on Bloomberg.

 

VI.           REPRESENTATIONS, WARRANTIES
AND COVENANTS OF PURCHASERS

 

Each Purchaser hereby
represents and warrants to Company, and covenants with Company, severally and not jointly, as follows:

 

A.           Legal Power
and Authority. It has all necessary power and authority to execute, deliver and perform its obligations under this Agreement
and to consummate the transactions contemplated hereby. It is an entity duly organized, validly existing and in good standing under
the laws its jurisdiction of organization.

 

B.           Authorization
and Execution. The execution, delivery and performance of this Agreement has been duly authorized by all necessary action
on the part of such Purchaser, and this Agreement is a legal, valid and binding obligation of such Purchaser, enforceable against
such Purchaser in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting creditors’ rights generally or by general equitable principles.

 

C.           No Conflicts.
Neither the execution, delivery or performance of the Transaction Documents nor the consummation of any of the transactions contemplated
thereby will conflict with, violate, constitute a breach of or a default (whether with or without the giving of notice or lapse
of time or both) under (i) its organizational documents, (ii) any agreement to which it is party, (iii) any law applicable to it
or (iv) any order, writ, judgment, injunction, decree, determination or award binding upon or affecting it.

 

D.           Purchase
for Investment. It is purchasing the Subordinated Note for its own account and not with a view to distribution and with
no present intention of reselling, distributing or otherwise disposing of the same. It has no present or contemplated agreement,
undertaking, arrangement, obligation, indebtedness or commitment providing for, or which is likely to compel, a disposition of
the Subordinated Notes in any manner.

 

    17 

    	 

    

 

E.           Institutional
Accredited Investor. It is and will be on the Closing Date an institutional “accredited investor” as such term
is defined in Rule 501(a) of Regulation D and as contemplated by subsections (1), (2), (3) and (7) of Rule 501(a) of Regulation
D, and has no less than $5,000,000 in total assets.

 

F.           Financial
and Business Sophistication. It has such knowledge and experience in financial and business matters that it is capable
of evaluating the merits and risks of the prospective investment in the Subordinated Notes. It has relied solely upon its own knowledge
of, and/or the advice of its own legal, financial or other advisors with regard to, the legal, financial, tax and other considerations
involved in deciding to invest in the Subordinated Notes.

 

G.           Ability
to Bear Economic Risk of Investment. It recognizes that an investment in the Subordinated Notes involves substantial risk.
It has the ability to bear the economic risk of the prospective investment in the Subordinated Notes, including the ability to
hold the Subordinated Notes indefinitely, and further including the ability to bear a complete loss of all of its investment in
Company.

 

H.           Information.
It acknowledges that: (i) it is not being provided with the disclosures that would be required if the offer and sale of the Subordinated
Notes were registered under the Securities Act, nor is it being provided with any offering circular or prospectus prepared in connection
with the offer and sale of the Subordinated Notes; (ii) it has conducted its own examination of Company and the terms of the Subordinated
Notes to the extent it deems necessary to make its decision to invest in the Subordinated Notes; and (iii) it has availed itself
of publicly available financial and other information concerning Company to the extent it deems necessary to make its decision
to purchase the Subordinated Notes. It has reviewed the information set forth in Company’s SEC Reports and the exhibits and
schedules hereto and contained in the data room established by Company on December 2, 2015.

 

I.           Access
to Information. It acknowledges that it and its advisors have been furnished with all materials relating to the business,
finances and operations of Company that have been requested of it or its advisors and have been given the opportunity to ask questions
of, and to receive answers from, persons acting on behalf of Company concerning terms and conditions of the transactions contemplated
by this Agreement in order to make an informed and voluntary decision to enter into this Agreement.

 

J.           Investment
Decision. It has made its own investment decision based upon its own judgment, due diligence and advice from such advisors
as it has deemed necessary and not upon any view expressed by any other person or entity, including the Placement Agent. Neither
such inquiries nor any other due diligence investigations conducted by it or its advisors or representatives, if any, shall modify,
amend or affect its right to rely on Company’s representations and warranties contained herein. It is not relying upon, and
has not relied upon, any advice, statement, representation or warranty made by any Person by or on behalf of Company, including,
without limitation, the Placement Agent, except for the express statements, representations and warranties of Company made or contained
in this Agreement. Furthermore, it acknowledges that (i) the Placement Agent has not performed any due diligence review on behalf
of it and (ii) nothing in this Agreement or any other materials presented by or on behalf of Company to it in connection with the
purchase of the Subordinated Notes constitutes legal, tax or investment advice.

 

    18 

    	 

    

 

K.           Private
Placement; No Registration; Restricted Legends. It understands and acknowledges that the Subordinated Notes are being sold
by Company without registration under the Securities Act in reliance on the exemption from federal and state registration set forth
in, respectively, Rule 506(b) of Regulation D under Section 4(a)(2) of the Securities Act and Section 18 of the Securities Act,
or any state securities laws, and accordingly, may be resold, pledged or otherwise transferred only if exemptions from the Securities
Act and applicable state securities laws are available to it. It is not subscribing for the Subordinated Notes as a result of or
subsequent to any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or
broadcast over television or radio, or presented at any seminar or meeting. It further acknowledges and agrees that all certificates
or other instruments representing the Subordinated Notes will bear the restrictive legend set forth in the form of Subordinated
Note. It further acknowledges its primary responsibilities under the Securities Act and, accordingly, will not sell or otherwise
transfer the Subordinated Notes or any interest therein without complying with the requirements of the Securities Act and the rules
and regulations promulgated thereunder and the requirements set forth in this Agreement.

 

L.           Placement
Agent. It will purchase the Subordinated Note(s) directly from Company and not from the Placement Agent and understands
that neither the Placement Agent nor any other broker or dealer has any obligation to make a market in the Subordinated Notes.

 

M.           Tier 2
Capital. If all or any portion of the Subordinated Notes ceases to be deemed to be Tier 2 Capital, other than due to the
limitation imposed on the capital treatment of subordinated debt during the five (5) years immediately preceding the Maturity Date
of the Subordinated Notes, Company will immediately notify the Purchasers, and thereafter Company and the Purchasers will work
together in good faith to execute and deliver all agreements as reasonably necessary in order to restructure the applicable portions
of the obligations evidenced by the Subordinated Notes to qualify as Tier 2 Capital; provided, however, that nothing contained
in this Agreement shall limit Company’s right to redeem the Subordinated Notes upon the occurrence of a Tier 2 Capital Event
as described in the Subordinated Notes.

 

N.           Accuracy
of Representations. It understands that each of the Placement Agent and Company will rely upon the truth and accuracy of
the foregoing representations, acknowledgements and agreements in connection with the transactions contemplated by this Agreement,
and agrees that if any of the representations or acknowledgements made by it are no longer accurate as of the Closing Date, or
if any of the agreements made by it are breached on or prior to the Closing Date, it shall promptly notify the Placement Agent
and Company.

 

O.           Representations
and Warranties Generally. The representations and warranties of Purchaser set forth in this Agreement are true and correct
as of the date hereof and will be true and correct as of the Closing Date and as otherwise specifically provided herein. Any certificate
signed by a duly authorized representative of Purchaser and delivered to the Company or to counsel for Company shall be deemed
to be a representation and warranty by Purchaser to Company as to the matters set forth therein.

 

    19 

    	 

    

 

VII.       TERMINATION. 

 

Purchasers may terminate
this Agreement (i) at any time prior to the Closing Date by written notice signed by all Purchasers to Company if Purchasers shall
decline to purchase the Subordinated Notes for any reason permitted by this Agreement or (ii) on the Closing Date if any condition
described in Section III.B is not fulfilled by the Company or waived in writing by the Purchasers on or prior to the Closing
Date. Any termination pursuant to this Section shall be without liability on the part of (a) Company to Purchasers or (b) Purchasers
to Company.

 

VIII.     MISCELLANEOUS.

 

A.           Prohibition
on Assignment by Company. Except as described in Section 8 (Merger and Sale of Assets) of the Subordinated Notes, Company
may not assign, transfer or delegate any of its rights under this Agreement or the Subordinated Notes without the prior written
consent of Purchasers. In addition, in accordance with the terms of the Subordinated Notes, any transfer of such Subordinated Notes
must be made in accordance with the Assignment Form attached thereto and the requirements and restrictions thereof.

 

B.           Time of
the Essence. Time is of the essence of this Agreement.

 

C.           Waiver
or Amendment. No waiver or amendment of any term, provision, condition, covenant or agreement herein or in the Subordinated
Notes shall be effective except with the consent of the holders of not less than more than fifty percent (50%) in aggregate principal
amount (excluding any Subordinated Notes held by Company or any of its Affiliates) of the Subordinated Notes at the time outstanding;
provided, however, that without the consent of each holder of an affected Subordinated Note, no such amendment or
waiver may: (i) reduce the principal amount of the Subordinated Note; (ii) reduce the rate of or change the time for payment of
interest on any Subordinated Note; (iii) extend the maturity of any Subordinated Note; (iv) change the currency in which payment
of the obligations of Company under this Agreement and the Subordinated Notes are to be made; (v) lower the percentage of aggregate
principal amount of outstanding Subordinated Notes required to approve any amendment of this Agreement or the Subordinated Notes;
(vi) make any changes to Section 6 (Failure to Make Payments) of the Subordinated Notes that adversely affects the rights of any
holder of a Subordinated Note; or (vii) disproportionately affect the rights of any of the holders of the then outstanding Subordinated
Notes under this Agreement and the Subordinated Notes. Notwithstanding the foregoing, Company may amend or supplement the Subordinated
Notes without the consent of the holders of the Subordinated Notes to cure any ambiguity, defect or inconsistency or to provide
for uncertificated Subordinated Notes in addition to or in place of certificated Subordinated Notes, or to make any change that
does not adversely affect the rights of any holder of any of the Subordinated Notes. No failure to exercise or delay in exercising,
by a Purchaser or any holder of the Subordinated Notes, of any right, power or privilege hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any right, power or privilege preclude any other or further exercise thereof, or the
exercise of any other right or remedy provided by law. 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 Company in any case shall, in itself, entitle
Company to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the
Purchasers to any other or further action in any circumstances without notice or demand. No consent or waiver, expressed or implied,
by the Purchasers to or of any breach or default by Company in the performance of its obligations hereunder shall be deemed or
construed to be a consent or waiver to or of any other breach or default in the performance of the same or any other obligations
of Company hereunder. Failure on the part of the Purchasers to complain of any acts or failure to act or to declare an Event of
Default, irrespective of how long such failure continues, shall not constitute a waiver by the Purchasers of their rights hereunder
or impair any rights, powers or remedies on account of any breach or default by Company.

 

    20 

    	 

    

 

D.           Severability.
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.

 

    21 

    	 

    

 

E.           Notices.
Any notice which any party hereto may be required or may desire to give hereunder shall be deemed to have been given if in writing
and if delivered personally, or if mailed, postage prepaid, by United States registered or certified mail, return receipt requested,
or if delivered by a responsible overnight commercial courier promising next business day delivery, addressed:

 

	if to Company:	
        Wellesley Bancorp, Inc.

        40 Central Street

        Wellesley, Massachusetts 02482

        Attention: Thomas J. Fontaine, President
        and Chief Executive Officer

        Email: tom@wellesleybank.com

	 	 
	with a copy to:	
        Kilpatrick Townsend & Stockton LLP

        607 14th Street, N.W.

        Washington, D.C. 20007

        Gary R. Bronstein

        Edward G. Olifer

        Email: gbronstein@kilpatricktownsend.com

        eolifer@kilpatricktownsend.com

	 	 
	 	Attention:
	 	 
	if to Purchasers:	To the address indicated on such Purchaser’s signature page.

 

or to such other address or addresses as
the party to be given notice may have furnished in writing to the party seeking or desiring to give notice, as a place for the
giving of notice; provided that no change in address shall be effective until five (5) Business Days after being given to the other
party in the manner provided for above. Any notice given in accordance with the foregoing shall be deemed given when delivered
personally or, if mailed, three (3) Business Days after it shall have been deposited in the United States mails as aforesaid or,
if sent by overnight courier, the Business Day following the date of delivery to such courier (provided next business day delivery
was requested).

 

F.           Successors
and Assigns. This Agreement shall inure to the benefit of the parties and their respective heirs, legal representatives,
successors and assigns; except that, unless a Purchaser consents in writing, no assignment made by Company in violation of this
Agreement shall be effective or confer any rights on any purported assignee of Company. The term “successors and assigns”
will not include a purchaser of any of the Subordinated Notes from any Purchaser merely because of such purchase.

 

    22 

    	 

    

 

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

 

H.           Documentation.
All documents and other matters required by any of the provisions of this Agreement to be submitted or furnished to a Purchaser
shall be in form and substance satisfactory to such Purchaser.

 

I.           Entire
Agreement. This Agreement and the Subordinated Notes along with the Exhibits thereto 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. No party, in entering into this Agreement, has relied upon any representation,
warranty, covenant, condition or other term that is not set forth in this Agreement or in the Subordinated Notes.

 

J.           Choice
of Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without
giving effect to its laws or principles of conflict of laws. Nothing herein shall be deemed to limit any rights, powers or privileges
which a Purchaser 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 a Purchaser which is lawful
pursuant to, or which is permitted by, any of the foregoing.

 

K.           No Third
Party Beneficiary. This Agreement is made for the sole benefit of Company and the Purchasers, 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; provided,
that the Placement Agent may rely on the representations and warranties contained herein and any certificates or other documents
delivered in connection with the Closing to the same extent as if it were a party to this Agreement.

 

L.           Legal Tender
of United States. All payments hereunder shall be made in coin or currency which at the time of payment is legal tender
in the United States of America for public and private debts.

 

M.           Captions;
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. In the event that any signature is delivered by facsimile transmission, or by e-mail delivery
of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original
thereof.

 

    23 

    	 

    

 

N.           Knowledge;
Discretion. All references herein to Purchaser’s or Company’s knowledge shall be deemed to mean the knowledge
of such party based on the actual knowledge of such party’s Chief Executive Officer and Chief Financial Officer or such other
persons holding equivalent offices. Unless specified to the contrary herein, all references herein to an exercise of discretion
or judgment by a Purchaser, to the making of a determination or designation by a Purchaser, to the application of a Purchaser’s
discretion or opinion, to the granting or withholding of a Purchaser’s consent or approval, to the consideration of whether
a matter or thing is satisfactory or acceptable to a Purchaser, or otherwise involving the decision making of a Purchaser, shall
be deemed to mean that such Purchaser shall decide using the reasonable discretion or judgment of a prudent lender.

 

O.           Waiver
Of Right To Jury Trial. TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE ANY RIGHT THAT THEY MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION ARISING IN ANY WAY IN CONNECTION WITH ANY OF THE TRANSACTION
DOCUMENTS, OR ANY OTHER STATEMENTS OR ACTIONS OF COMPANY OR PURCHASERS. THE PARTIES ACKNOWLEDGE THAT THEY HAVE BEEN REPRESENTED
IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL SELECTED OF THEIR OWN FREE WILL.
THE PARTIES FURTHER ACKNOWLEDGE THAT (i) THEY HAVE READ AND UNDERSTAND THE MEANING AND RAMIFICATIONS OF THIS WAIVER, (ii) THIS
WAIVER HAS BEEN REVIEWED BY THE PARTIES AND THEIR COUNSEL AND IS A MATERIAL INDUCEMENT FOR ENTRY INTO THIS AGREEMENT AND (iii)
THIS WAIVER SHALL BE EFFECTIVE AS TO EACH OF SUCH TRANSACTION DOCUMENTS AS IF FULLY INCORPORATED THEREIN.

 

Expenses. Except as otherwise provided
in this Agreement, each of the parties will bear and pay all other costs and expenses incurred by it or on its behalf in connection
with the transactions contemplated pursuant to this Agreement.

 

P.           Survival.
Each of the representations and warranties set forth in this Agreement shall survive the consummation of the transactions contemplated
hereby for a period of one year after the date hereof. Except as otherwise provided herein, all covenants and agreements contained
herein shall survive until, by their respective terms, they are no longer operative.

 

[Signature Pages Follow]

 

    24 

    	 

    

  

IN WITNESS WHEREOF, Company has
caused this Subordinated Note Purchase Agreement to be executed by its duly authorized representative as of the date first above
written.

  

	 	COMPANY:
	 	
	 	WELLESLEY BANCORP, INC.
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	Thomas J. Fontaine
	 	 	 
	 	Title:	President and Chief Executive Officer

 

[Company Signature Page to Subordinated
Note Purchase Agreement]

 

     

    	 

    

  

IN WITNESS WHEREOF, the Purchaser
has caused this Subordinated Note Purchase Agreement to be executed by its duly authorized representative as of the date first
above written.

 

	 	PURCHASER:
	 	
	 	[INSERT PURCHASER’S NAME]
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	[●]
	 	 	 
	 	Title:	
        [●] 

	 	 	 
	 	Address of Purchaser:
	 	 	 
	 	[●]1	 
	 	 	 
	 	Principal Amount of Purchased Subordinated Note:
	 	
	 	$[●]	 

  

 

 

1
NTD: Insert domicile/headquarter address of Purchaser and mailing address for delivery of notices (if different).

 

[Purchaser Signature
Page to Subordinated Note Purchase Agreement]

 

     

    	 

    

  

EXHIBIT A

 

SUBORDINATED NOTE CERTIFICATE

 

WELLESLEY BANCORP,
INC.

6.00%
FIXED TO FLOATING Subordinated
Note due December 30, 2025

 

THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED
NOTE IS SUBORDINATED AND JUNIOR IN RIGHT OF PAYMENT TO THE CLAIMS OF CREDITORS (OTHER THAN CREDITORS OF EXISTING SUBORDINATED DEBT)
OF WELLESLEY BANCORP, INC. (“COMPANY”), AND DEPOSITORS OF WELLESLEY BANK, INCLUDING OBLIGATIONS OF COMPANY TO
ITS GENERAL AND SECURED CREDITORS AND IS UNSECURED. IT IS INELIGIBLE AS COLLATERAL FOR ANY EXTENSION OF CREDIT BY COMPANY OR ANY
OF ITS SUBSIDIARIES. IN THE EVENT OF LIQUIDATION ALL DEPOSITORS AND OTHER CREDITORS OF COMPANY SHALL BE ENTITLED TO BE PAID IN
FULL WITH SUCH INTEREST AS MAY BE PROVIDED BY LAW BEFORE ANY PAYMENT SHALL BE MADE ON ACCOUNT OF PRINCIPAL OF OR INTEREST ON THIS
SUBORDINATED NOTE. AFTER PAYMENT IN FULL OF ALL SUMS OWING TO SUCH DEPOSITORS AND CREDITORS, THE HOLDER OF THIS SUBORDINATED NOTE
SHALL BE ENTITLED TO BE PAID FROM THE REMAINING ASSETS OF COMPANY THE UNPAID PRINCIPAL AMOUNT OF THIS SUBORDINATED NOTE PLUS ACCRUED
AND UNPAID INTEREST THEREON BEFORE ANY PAYMENT OR OTHER DISTRIBUTION, WHETHER IN CASH, PROPERTY OR OTHERWISE, SHALL BE MADE ON
ACCOUNT OF ANY SHARES OF CAPITAL STOCK OF COMPANY.

 

THIS SUBORDINATED NOTE WILL BE ISSUED AND MAY
BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $1,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS
SUBORDINATED NOTE IN A DENOMINATION OF LESS THAN $1,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH
PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SUBORDINATED NOTE FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED
TO, THE RECEIPT OF PAYMENTS ON THIS SUBORDINATED NOTE, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER
IN THIS SUBORDINATED NOTE.

 

THIS SUBORDINATED NOTE MAY BE SOLD ONLY IN
COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THIS SUBORDINATED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES
LAWS. NEITHER THIS SUBORDINATED NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT
TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THIS SUBORDINATED NOTE IS ISSUED SUBJECT TO THE RESTRICTIONS ON TRANSFER
AND OTHER PROVISIONS OF A SUBORDINATED NOTE PURCHASE AGREEMENT DATED DECEMBER 17, 2015, BETWEEN COMPANY AND THE PURCHASERS REFERRED
TO THEREIN (THE “PURCHASE AGREEMENT”), A COPY OF WHICH IS ON FILE WITH COMPANY.

 

    A-1-1 

     

    

 

CERTAIN ERISA CONSIDERATIONS:

 

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

 

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

 

    A-1-2 

     

    

 

	No. 2025-[●]	CUSIP [●]

 

WELLESLEY BANCORP, INC.

 

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

 

6.00% FIXED TO FLOATING RATE SUBORDINATED
NOTE DUE 2025

 

1.          Subordinated
Notes. This Subordinated Note is one of an issue of notes of Wellesley Bancorp, Inc., a Maryland corporation (the “Company”)
designated as the “6.00% Fixed to Floating Rate Subordinated Notes due 2025” (the “Subordinated Notes”).

 

2.          Payment.
Company, for value received, promises to pay to              ,       or        its registered assigns, the principal sum of             Dollars (U.S.) ($            ),
plus accrued but unpaid interest on December 30, 2025 (“Maturity Date”) and to pay interest thereon (i)
from and including the original issue date of the Subordinated Notes to but excluding December 30, 2020 or the earlier
redemption date contemplated by Section 4(a) of this Subordinated Note, at the rate of 6.00% per annum, computed on
the basis of a 360-day year consisting of twelve 30-day months and payable semi-annually in arrears on June 30 and December
30 of each year (each, a “Fixed Interest Payment Date”), beginning June 30, 2016, and (ii) from and
including December 30, 2020 to but excluding the Maturity Date or the earlier redemption date contemplated by Section
4(b) of this Subordinated Note, at the rate per annum, reset quarterly, equal to LIBOR determined on the determination
date of the applicable Interest Period plus 435.5 basis points, computed on the basis of a 360-day year and the actual number
of days elapsed and payable quarterly in arrears on March 30, June 30, September 30 and December 30 of each year (each, a
“Floating Interest Payment Date”). An “Interest Payment Date” is either a Fixed Interest
Payment Date or a Floating Interest Payment Date, as applicable. “LIBOR” means the 3-month USD LIBOR, which will
be the offered rate for 3-month deposits in U.S. dollars, as that rate appears on the Reuters Screen LIBOR01 Page (or any
successor page thereto) as of 11:00 a.m., London time, as observed two London banking days prior to the first day of the
applicable floating rate interest period. If 3-month USD LIBOR is not displayed as of such time with respect to any
applicable floating rate interest period, then LIBOR will be LIBOR in effect for the floating rate interest period preceding
the floating interest period for which LIBOR is to be determined, or, with respect to the first floating rate interest
period, the most recent possible prior date. A London banking day is a day on which commercial banks and foreign currency
markets settle payments and are open for general business in London. Any payment of principal of or interest on this
Subordinated Note that would otherwise become due and payable on a day which is not a Business Day shall become due and
payable on the next succeeding Business Day, with the same force and effect as if made on the date for payment of such
principal or interest, and no interest will accrue in respect of such payment for the period after such day. The term
“Business Day” means any day that is not a Saturday or Sunday and that is not a day on which banks in the
Commonwealth of Massachusetts are generally authorized or required by law or executive order to be closed.

 

    A-1-3 

     

    

 

3.          Subordination.
The indebtedness of Company evidenced by this Subordinated Note, including the principal and interest on this Subordinated Note,
shall be subordinate and junior in right of payment to the prior payment in full of all existing claims of creditors and depositors
of Company, whether now outstanding or subsequently created, assumed, guaranteed or incurred (collectively, “Senior Indebtedness”),
which shall consist of principal of (and premium, if any) and interest, if any, on: (a) all indebtedness and obligations of, or
guaranteed or assumed by, Company for money borrowed, whether or not evidenced by bonds, debentures, securities, notes or other
similar instruments, and including, but not limited to, deposits of Company, and all obligations to Company’s general and
secured creditors; (b) any deferred obligations of Company for the payment of the purchase
price of property, goods, materials, assets or services purchased or acquired (other than such obligations to trade creditors incurred
by Company in the ordinary course of business); (c) all obligations, contingent or otherwise, of Company in respect of any
letters of credit, bankers’ acceptances, security purchase facilities and similar direct credit substitutes; (d) any capital
lease obligations of Company; (e) all obligations of Company in respect of interest rate swap, cap or other agreements, interest
rate future or option contracts, currency swap agreements, currency future or option contracts, commodity contracts and other similar
arrangements or derivative products; (f) any obligation of Company to its general creditors,
as defined for purposes of the capital adequacy regulations of the Board of Governors of the Federal Reserve System (the “Federal
Reserve”) applicable to Company, as the same may be amended or modified from time to time; (g) all obligations that are similar
to those in clauses (a) through (f) of other persons for the payment of which Company is responsible or liable as obligor,
guarantor or otherwise; and (h) all obligations of the types referred to in clauses (a) through (g) of other persons secured by
a lien on any property or asset of Company; and (i) in the case of (a) through (h) above, all amendments, renewals, extensions,
modifications and refunding’s of such indebtedness and obligations; except “Senior Indebtedness” does
not include (i) the Subordinated Notes, (ii) any obligation that by its terms expressly is junior to, or ranks equally in right
of payment with, the Subordinated Notes, or (iii) any indebtedness between Company and any of its subsidiaries or Affiliates. This
Subordinated Note is not secured by any assets of Company.

 

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

 

    A-1-4 

     

    

 

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

 

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

 

4.             Redemption.

 

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

 

(b)          Redemption
on or after Fifth Anniversary. On or after the fifth anniversary of the Issue Date, subject to Section 4(f), this Subordinated
Note shall be redeemable at the option of and by Company, in whole at any time or in part upon any Interest Payment Date, at an
amount equal to 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the
redemption date, but in all cases in a principal amount with integral multiples of $1,000.

 

    A-1-5 

     

    

 

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

 

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

 

(e)          Effectiveness
of Redemption. If notice of redemption has been duly given and notwithstanding that this Subordinated Note has been called
for redemption but has not yet been surrendered for cancellation, on and after the date fixed for redemption interest shall cease
to accrue on this Subordinated Note, this Subordinated Note shall no longer be deemed outstanding and all rights with respect to
this Subordinated Note shall forthwith on such date fixed for redemption cease and terminate unless Company shall default in the
payment of the redemption price, except only the right of the holder hereof to receive the amount payable on such redemption, without
interest.

 

(f)          Regulatory
Approvals. Any such redemption shall be subject to receipt of any and all required federal and state regulatory approvals,
including, but not limited to, the consent of the Federal Reserve. In the case of any redemption of this Subordinated Note pursuant
to paragraphs (b) and (c) of this Section 4, Company will give the holder hereof notice of redemption, which notice shall
indicate the aggregate principal amount of Subordinated Notes to be redeemed, not less than 30 nor more than 45 calendar days prior
to the redemption date.

 

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

 

5.            Events
of Default; Acceleration; Compliance Certificate. Each of the following events shall constitute an “Event of Default”:

 

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

 

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

 

    A-1-6 

     

    

 

(c)          the
failure of Company to pay any installment of interest on any of the Subordinated Notes as and when the same will become due and
payable, and the continuation of such failure for a period of 30 days;

 

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

 

(e)          the
failure of Company to perform any other covenant or agreement on the part of Company contained in the Subordinated Notes or the
Purchase Agreement, and the continuation of such failure for a period of 60 days after the date on which notice specifying such
failure, stating that such notice is a “Notice of Default” hereunder and demanding that Company remedy the same,
will have been given, in the manner set forth in Section 21, to Company by the Noteholders of at least 25% in aggregate
principal amount of the Subordinated Notes at the time outstanding; or the default by Company under any bond, debenture, note or
other evidence of indebtedness for money borrowed by Company having an aggregate principal amount outstanding of at least $30,000,000,
whether such indebtedness now exists or is created or incurred in the future, which default (i) constitutes a failure to pay any
portion of the principal of such indebtedness when due and payable after the expiration of any applicable grace period or (ii)
results in such indebtedness becoming due or being declared due and payable prior to the date on which it otherwise would have
become due and payable without, in the case of clause (i), such indebtedness having been discharged or, in the case of clause (ii),
without such indebtedness having been discharged or such acceleration having been rescinded or annulled.

 

Unless
the principal of this Subordinated Note already shall have become due and payable, if an Event of Default set forth in subsections
(a) or (b) above shall have occurred and be continuing, the holder of this Subordinated Note, by notice in writing to Company,
may declare the principal amount of this Subordinated Note to be due and payable immediately and, upon any such declaration the
same shall become and shall be immediately due and payable. Company waives demand, presentment for payment, notice of nonpayment,
notice of protest, and all other notices. Company, within 45 calendar days after the receipt of written notice from any Noteholder
of the occurrence of an Event of Default with respect to this Subordinated Note, shall mail to all Noteholders, at their addresses
shown on the Security Register (as defined in Section 13 below), such written notice of Event of Default, unless such Event
of Default shall have been cured or waived before the giving of such notice as certified by Company in writing.

 

6.          Failure
to Make Payments. In the event of failure by Company to make any required payment of principal or interest on this Subordinated
Note (and, in the case of payment of interest, such failure to pay shall have continued for 30 calendar days), Company will, upon
demand of the holder of this Subordinated Note, pay to the holder of this Subordinated Note the amount then due and payable on
this Subordinated Note for principal and interest (without acceleration of the Note in any manner), with interest on the overdue
principal and interest at the rate borne by this Subordinated Note, to the extent permitted by applicable law. If Company fails
to pay such amount upon such demand, the holder of this Subordinated Note may, among other things, institute a judicial proceeding
for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the
same against Company and collect the amounts adjudged or decreed to be payable in the manner provided by law out of the property
of Company.

 

    A-1-7 

     

    

 

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

 

7.           Affirmative
Covenants of Company.

 

(a)          Payment
of Principal and Interest. Company covenants and agrees for the benefit of the holder of this Subordinated Note that it will
duly and punctually pay the principal of, and interest on, this Subordinated Note, in accordance with the terms hereof. Principal
and interest will be considered paid on the date due if Company or a subsidiary thereof, holds as of 11:00 a.m., Massachusetts
time, on any Interest Payment Date, an amount in immediately available funds provided by Company
that is designated for and sufficient to pay all principal and interest then due. 

 

(b)          Maintenance
of Office. Company will maintain an office or agency in Wellesley, Massachusetts, where Subordinated Notes may be surrendered
for registration of transfer or for exchange and where notices and demands to or upon Company in respect of the Subordinated Notes
may be served.

 

Company may
also from time to time designate one or more other offices or agencies where the Subordinated Notes may be presented or surrendered
for any or all such purposes and may from time to time rescind such designations; provided that no such designation or rescission
will in any manner relieve Company of its obligation to maintain an office or agency in Wellesley, Massachusetts. Company will
give prompt written notice to the Noteholders of any such designation or rescission and of any change in the location of any such
other office or agency.

 

(c)          Corporate
Existence. Company will do or cause to be done all things necessary to preserve and keep in full force and effect: (i) the
corporate existence of Company; (ii) the existence (corporate or other) of each subsidiary of Company that is a “significant
subsidiary” as defined in Rule 1-02 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission (as such
rule is in effect on the date hereof (each, a “Significant Subsidiary”); and (iii) the rights (charter and statutory),
licenses and franchises of Company and each of its Significant Subsidiaries; provided, however, that Company will not be required
to preserve the existence (corporate or other) of any of its Significant Subsidiaries or any such right, license or franchise of
Company or any of its Significant Subsidiaries if the Board of Directors of Company determines that the preservation thereof is
no longer desirable in the conduct of the business of Company and its Significant Subsidiaries taken as a whole and that the loss
thereof will not be disadvantageous in any material respect to the Noteholders.

 

    A-1-8 

     

    

 

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

 

(e)          Waiver
of Certain Covenants. Company may omit in any particular instance to comply with any term, provision or condition set forth
in Section 7(a) or Section 7(b) above, with respect to this Subordinated Note if before the time for such
compliance the Noteholders of at least a majority in principal amount of the outstanding Subordinated Notes, by act of such Noteholders,
either will waive such compliance in such instance or generally will have waived compliance with such term, provision or condition,
but no such waiver will extend to or affect such term, provision or condition except to the extent so expressly waived, and, until
such waiver will become effective, the obligations of Company in respect of any such term, provision or condition will remain in
full force and effect.

 

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

 

(g)          Tier
2 Capital. If all or any portion of the Subordinated Notes ceases to be deemed to be Tier 2 Capital, other than due to the
limitation imposed on the capital treatment of subordinated debt during the five years immediately preceding the Maturity Date
of the Subordinated Notes, Company will immediately notify the Noteholders, and thereafter Company shall request, subject to the
terms hereof, that the Noteholders execute and deliver all agreements as reasonably necessary in order to restructure the applicable
portions of the obligations evidenced by the Subordinated Notes to qualify as Tier 2 Capital.

 

8.           Merger
or Sale of Assets. Company shall not merge into another entity or convey, transfer or lease
substantially all of its properties and assets to any person, unless:

 

    A-1-9 

     

    

 

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

 

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

 

9.            Denominations.
The Subordinated Notes are issuable only in registered form without interest coupons in minimum denominations of $1,000 and integral
multiples of $1,000 in excess thereof.

 

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

 

11.         Payment
Procedures. Payment of the principal and interest payable on the Maturity Date will be made by check, or by wire transfer in
immediately available funds to a bank account in the United States designated by the registered holder of this Subordinated Note
if such Noteholder shall have previously provided wire instructions to Company, upon presentation and surrender of this Subordinated
Note at the Payment Office (as defined in Section 21 below) or at such other place or places as Company shall designate
by notice to the registered Noteholders as the Payment Office, provided that this Subordinated Note is presented to Company in
time for Company to make such payments in such funds in accordance with its normal procedures. Payments of interest (other than
interest payable on the Maturity Date) shall be made by wire transfer in immediately available funds or check mailed to the registered
holder of this Subordinated Note, as such person’s address appears on the Security Register (as defined below). Interest
payable on any Interest Payment Date shall be payable to the Noteholder in whose name this Subordinated Note is registered at the
close of business on the fifteenth calendar day prior to the applicable Interest Payment Date, without regard to whether such date
is a Business Day (such date being referred to herein as the “Regular Record Date”), except that interest not
paid on the Interest Payment Date, if any, will be paid to the holder in whose name this Subordinated Note is registered at the
close of business on a special record date fixed by Company (a “Special Record Date”), notice of which shall
be given to the holder of this Subordinated Note not less than 10 calendar days prior to such Special Record Date. (The Regular
Record Date and Special Record Date are referred to herein collectively as the “Record Dates”). To the extent
permitted by applicable law, interest shall accrue, at the rate at which interest accrues on the principal of this Subordinated
Note, on any amount of principal or interest on this Subordinated Note not paid when due. All payments on this Subordinated Note
shall be applied first against costs and expenses of the holder of this Subordinated Note; then against interest due hereunder;
and then against principal due hereunder. The holder of this Subordinated Note acknowledges and agrees that the payment of all
or any portion of the outstanding principal amount of this Subordinated Note and all interest hereon shall be pari passu
in right of payment and in all other respects to the other Subordinated Notes. In the event that the holder of this Subordinated
Note receives payments in excess of its pro rata share of Company’s payments to the holders of all of the Subordinated Notes,
then the holder of this Subordinated Note shall hold in trust all such excess payments for the benefit of the holders of the other
Subordinated Notes and shall pay such amounts held in trust to such other holders upon demand by such holders.

 

    A-1-10 

     

    

 

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

 

13.         Registration
of Transfer, Security Register. Except as otherwise provided herein, this Subordinated Note is transferable in whole or in
part, and may be exchanged for a like aggregate principal amount of Subordinated Notes of other authorized denominations, by the
holder of this Subordinated Note in person, or by his attorney duly authorized in writing, at the Payment Office. Company shall
maintain a register providing for the registration of the Subordinated Notes and any exchange or transfer thereof (the “Security
Register”). Upon surrender or presentation of this Subordinated Note for exchange or registration of transfer, Company
shall execute and deliver in exchange therefor a Subordinated Note or Subordinated Notes of like aggregate principal amount, each
in a minimum denomination of $1,000 or any amount in excess thereof which is an integral multiple of $1,000 (and, in the absence
of an opinion of counsel satisfactory to Company to the contrary, bearing the restrictive legend(s) set forth hereinabove) and
that is or are registered in such name or names requested by the Noteholder. Any Subordinated Note presented or surrendered for
registration of transfer or for exchange shall be duly endorsed and accompanied by a written instrument of transfer in such form
as is attached hereto and incorporated herein, duly executed by the holder of this Subordinated Note or his attorney duly authorized
in writing, with such tax identification number or other information for each person in whose name a Subordinated Note is to be
issued, and accompanied by evidence of compliance with any restrictive legend(s) appearing on such Subordinated Note or Subordinated
Notes as Company may reasonably request to comply with applicable law. No exchange or registration of transfer of this Subordinated
Note shall be made on or after the fifteenth day immediately preceding the Maturity Date. This Subordinated Note is subject to
the restrictions on transfer of the Purchase Agreement between Company and the Purchasers identified therein, who were the original
holders of the Subordinated Notes, a copy of which is on file with Company.

 

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

 

    A-1-11 

     

    

 

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

 

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

 

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

 

(a)          No
delay or omission of the holder of this Subordinated Note to exercise any right or remedy accruing upon any Event of Default shall
impair such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.

 

(b)          Any
insured depository institution which shall be a holder of this Subordinated Note or which otherwise shall have any beneficial ownership
interest in this Subordinated Note shall, by its acceptance of such Note (or beneficial interest therein), be deemed to have waived
any right of offset with respect to the indebtedness evidenced thereby.

 

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

 

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

 

    A-1-12 

     

    

 

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

 

21.         Notices.
All notices to Company under this Subordinated Note shall be in writing and addressed to Company at 40 Central Street, Wellesley,
Massachusetts 02482, Attn: Thomas J. Fontaine, President and Chief Executive Officer, or to such other address as Company may notify
to the holder of this Subordinated Note (the “Payment Office”). All notices to the Noteholders shall be in writing
and sent by first-class mail to each Noteholder at his or its address as set forth in the Security Register.

 

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

 

23.         Governing
Law. THIS SUBORDINATED NOTE WILL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND WILL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ITS LAWS OR PRINCIPLES OF CONFLICT
OF LAWS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. THIS SUBORDINATED NOTE IS INTENDED TO MEET THE
CRITERIA FOR QUALIFICATION OF THE OUTSTANDING PRINCIPAL AS TIER 2 CAPITAL UNDER THE REGULATORY GUIDELINES OF THE FEDERAL RESERVE,
AND THE TERMS HEREOF SHALL BE INTERPRETED IN A MANNER TO SATISFY SUCH INTENT.

 

[Signature Page Follows]

 

    A-1-13 

     

    

 

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

 

Dated: December ____, 2015

 

	 	WELLESLEY BANCORP, INC.
	 	 	 	 
	 	By:	 
	 	 	Name:	Thomas J. Fontaine
	 	 	Title:	President and Chief Executive Officer

 

    A-1-14 

     

    

 

ASSIGNMENT FORM

 

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

 

 

(Print or type assignee’s name, address
and zip code)

 

 

(Insert assignee’s social security or
tax I.D. No.)

 

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

 

	Date:	 	 	Your signature: ___________________________________
	 	 	 	(Sign exactly as your name appears on the face of this Subordinated Note)
	 	 	 	 
	 	 	 	Tax Identification No: ______________________________

 

Signature Guarantee: _______________________________________________________________________________

(Signatures must be guaranteed by an eligible
guarantor institution (banks, stockbroker’s, savings and loan associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to Exchange Act Rule 17Ad-15).

 

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

 

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

 

CHECK ONE BOX BELOW:

 

	 ̈	(1)	acquired for the undersigned’s own account, without transfer;
	 	 	 
	 ̈	(2)	transferred to Company;
	 	 	 
	 ̈	(3)	transferred in accordance and in compliance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”);
	 	 	 
	 ̈	(4)	transferred under an effective registration statement under the Securities Act;
	 	 	 
	 ̈	(5)	transferred in accordance with and in compliance with Regulation S under the Securities Act;

 

     

     

    

 

	 ̈	(6)	transferred to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) or an “accredited investor” (as defined in Rule 501(a)(4) under the Securities Act), that has furnished a signed letter containing certain representation’s and agreements; or
	 	 	 
	 ̈	(7)	transferred in accordance with another available exemption from the registration requirements of the Securities Act of 1933, as amended.

 

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

 

	 	Signature:	 

 

Signature Guarantee:_______________________________________________________________________________

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

 

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

 

The undersigned represents
and warrants that it is purchasing this Subordinated Note for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning
of Rule 144A under the Securities Act of 1933, as amended, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding Company as the undersigned has requested pursuant to Rule 144A
or has determined not to request such information and that it is aware that the transferor is relying upon the undersigned’s
foregoing representations in order to claim the exemption from registration provided by Rule 144A.

 

	Date:	 	 	Signature:	 

 

    2 

     

    

 

EXHIBIT B

 

OPINION OF COUNSEL

 

		(1)	The Company is validly existing and is in good standing under the laws of the State of Maryland
and is duly qualified or licensed to do business and is in good standing in the Commonwealth of Massachusetts.

 

		(2)	The Bank is validly existing and is in good standing under the laws of the Commonwealth of Massachusetts.

 

		(3)	The Company has the corporate power and authority to conduct its business as described in the Company’s
SEC Reports and to enter into, deliver and perform its obligations under the Transaction Documents to which it is a party and to
consummate the transactions contemplated by the Agreement.

 

		(4)	The Agreement has been duly and validly authorized, executed and delivered by Company.

 

		(5)	The Subordinated Notes have been duly and validly authorized by the Company and when issued and
delivered to and paid for by the Purchasers in accordance with the terms of the Agreement, will have been duly executed, authenticated,
issued and delivered and will constitute legal, valid and binding obligations of the Company, and enforceable against the Company
in accordance with their terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization,
receivership, moratorium, fraudulent conveyance, fraudulent transfer or other similar laws now or hereafter in effect relating
to creditors’ rights generally and (ii) general principles of equity (whether applied by a court of law or equity) and the
discretion of the court before which any proceeding therefor may be brought.

 

		(6)	Assuming the accuracy of the representations of each of the Purchasers set forth in the Agreement,
the Subordinated Notes to be issued and sold by the Company to the Purchasers pursuant to the Agreement will be issued in a transaction
exempt from the registration requirements of the Securities Act.ex-4.1

 EXHIBIT 4.1
 

 THE SECURITIES REPRESENTED BY THIS WARRANT HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“1933 ACT”) OR ANY STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE SALE, ASSIGNMENT, CONVEYANCE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS WARRANT IS PROHIBITED EXCEPT PURSUANT TO REGISTRATION UNDER THE 1933 ACT; OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT, AND ANY CERTIFICATE REPRESENTING WARRANT SHARES SHALL BEAR A LEGEND TO SUCH EFFECT.
 

 2015-W-165
 

 WARRANT TO PURCHASE 2,861,856 SHARES
 OF THE COMMON STOCK OF
 BLUE EARTH, INC. 
 Expiration Date:  December 11, 2020
 Issue Date: December 11, 2015
 

 This certifies that Jackson Investment Group, LLC or its successors or assigns (“Holder”) shall be entitled to purchase from Blue Earth, Inc., a Nevada corporation (“Company”), having its principal place of business at 2298 Horizon Ridge Parkway, Suite 205, Henderson, NV 89052, TWO MILLION EIGHT HUNDRED SIXTY ONE THOUSAND EIGHT HUNDRED FIFTY SIX (2,861,856) fully paid and non-assessable shares (“Warrant Shares”) of the Company’s common stock, par value $.001 per share (“Common Stock”), at a price per share equal to the Exercise Price (as defined below).
 

 This Warrant is being issued to the Holder in connection with the Holder’s execution on this date of a nine percent (9%) Senior Secured Note due February 29, 2016, in the principal amount of $7,154,639, and an Omnibus Amendment and Reaffirmation Agreement dated the date hereof.
 

 The initial exercise price (“Exercise Price”) of this Warrant will be equal to $0.50 per share.
 

 This Warrant shall be exercisable into shares of Common Stock at any time, or from time-to-time, commencing upon the date of issuance, up to and including 5:00 p.m. (Pacific Coast time) on the fifth (5th) anniversary date of the date of the issuance of this Warrant (“Expiration Date”), unless (i) previously called upon a Change of Control (as defined below); or (ii) extended by the Company on thirty (30) days’ prior written notice; provided, however, if such date is not a Business Day, then on the Business Day immediately following such date.  This Warrant is exercisable in whole or in part upon the surrender to the Company at its principal place of business (or at such other location as the Company may advise the Holder in writing) of this Warrant properly endorsed with a form of subscription in substantially the form attached hereto as Schedule A duly filled in and signed and, if applicable, upon payment in cash or by check of the aggregate Exercise Price for the number of shares for which this Warrant is being exercised as determined in accordance with the provisions hereof.
 

 1. Exercise; Issuance of Certificates; Payment for Shares.
 

 1.1
 General. This Warrant is exercisable upon issuance in full, or in part for 10,000 or more shares, in increments of 10,000 shares, except for the final exercise which may be for the remainder, at the option of the Holder of record at any time or from time, to time, up to the Expiration Date for all of the shares of Common Stock (but not for a fraction of a share) which may be purchased hereunder. In the case of the exercise of less than all of the Warrants represented hereby, the Company shall cancel this Warrant Certificate upon the surrender hereof and shall execute and deliver a new Warrant Certificate or Warrant Certificates of like tenor for the balance of such Warrants. The Company agrees that the shares of Common Stock purchased under this Warrant shall be and are deemed to be issued to the Holder hereof as the record owner of such shares as of the close of business on the date on which the exercise notice (attached hereto as Schedule A) is delivered to the Company via facsimile; provided, however, that in such case this Warrant shall be surrendered to the Company within three (3) business days. Certificates for the shares of Common Stock so purchased, together with any other securities or property to which the Holder is entitled upon such 
 

 
 exercise, shall be delivered to the Holder by the Company at the Company’s expense within a reasonable time after the rights represented by this Warrant have been so exercised, and in any event, within three business days of such exercise and delivery of the Exercise Price. The Company shall, no later than the close of business on the first business day following the date on which the Company receives the exercise notice by facsimile transmission issue and deliver to the Company’s Transfer Agent irrevocable instructions to issue and deliver or cause to be delivered to such Holder the number of Warrant Shares exercised within two business days thereafter by either express mail or hand delivery. Notwithstanding the foregoing, delivery of the Warrant Shares is contingent upon receipt of the Exercise Price in cleared U.S. funds within two business days following the Company’s receipt of the exercise notice. Each Common Stock certificate so delivered shall be in such denominations of 10,000 or more shares of Common Stock, in increments of 10,000 or more, as may be requested by the Holder hereof and shall be registered on the Company’s books in the name designated by such Holder.
 

 Notwithstanding anything herein to the contrary, to the extent required by applicable law or stock exchange rules, the Company shall not issue to the Holder any of the Warrant Shares upon the exercise of this Warrant to the extent such issuance of the Warrant Shares, when added to the number of shares of Common Stock previously issued to Holder that do not qualify for the exception from stockholder approval contained in Nasdaq Listing Rule 5635, would exceed 19.9% of the number of shares of Common Stock outstanding immediately after giving effect to such issuance, without first obtaining stockholder approval.  In such event the Company shall use its best efforts to promptly obtain such shareholder approval.
 

 1.2
 Exercise for Cash
 

 This Warrant may be exercised in whole at any time or in part from time to time prior to 5:00 P.M., Pacific Coast time, on the Expiration Date, unless extended by the Company, by the Holder by the facsimile delivery of the exercise notice, as attached hereto, on the date of the exercise and by surrender of this Warrant within three (3) business days from the exercise day at the address set forth hereof, together with proper payment of the aggregate Exercise Price payable hereunder for the Warrant Shares (“Aggregate Warrant Price”), or the proportionate part thereof if this Warrant is exercised in part.  Payment for the Warrant Shares shall be made by wire, certified or bank check or check payable to the order of the Company. If this Warrant is exercised in part, this Warrant must be exercised for a number of whole shares of the Common Stock, and the Holder is entitled to receive a new Warrant covering the Warrant Shares which have not been exercised and setting forth the proportionate part of the Aggregate Warrant Price applicable to such Warrant Shares. Upon such surrender of this Warrant, the Company will (a) issue a certificate or certificates in the name of the Holder for the largest number of whole shares of the Common Stock to which the Holder shall be entitled and (b) deliver the other securities and properties receivable upon the exercise of this Warrant, or the proportionate part thereof if this Warrant is exercised in part, pursuant to the provisions of this Warrant.
 

 1.3
 Exercise for Non-Cash Consideration:
 

 In case any portion of the consideration to be received by the Company shall be in a form other than cash as agreed to by the Company, in its sole discretion, then such Exercise Price shall be measured to that extent by the fair market value of such non-cash consideration. The Exercise Price may be tendered in the form of notes, exchanges, services, goods and any and all consideration deemed acceptable by the Company. The fair market value shall be determined solely in good faith by the Board of Directors of the Company, without need for disclosure of fair market value calculation.
 

 1.4
 Shares to be Fully Paid; Reservation of Shares. The Company covenants and agrees that all shares of Common Stock which may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be duly authorized, validly issued, fully paid and nonassessable and free from all preemptive rights of any shareholder and free of all taxes, liens and charges with respect to the issue thereof. The Company further covenants and agrees that, during the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized and reserved, for the purpose of issue or transfer upon exercise of the subscription rights evidenced by this Warrant, a sufficient number of shares of authorized but unissued Common Stock, when and as required to provide for the exercise of the rights represented by this Warrant. The Company will take all such action as may be necessary to assure that such shares of Common Stock may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of any domestic securities exchange upon which the Common 
 

 2
 

 
 Stock or other securities may be listed; provided, however, that the Company shall not be required to effect a registration under federal or state securities laws with respect to such exercise. The Company will not take any action which would result in any adjustment of the Exercise Price if the total number of shares of Common Stock issuable after such action upon exercise of all outstanding warrants, together with all shares of Common Stock then outstanding and all shares of Common Stock then issuable upon exercise of all options and upon the conversion of all convertible securities then outstanding, would exceed the total number of shares of Common Stock or equity securities then authorized by the Company’s Certificate of Incorporation, as amended (“Company Charter”).
 

 1.5
 Buy-In. In addition to any other rights available to a Holder, if the Company fails to deliver to the Holder a certificate representing Warrant Shares by the third Trading Day after the date on which delivery of such certificate is required by this Warrant, and if after such third Trading Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder on or after the Exercise Date of the Warrant Shares that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company shall, within three Trading Days after the Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such certificate (and to issue such Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Common Stock and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Closing Price on the date of the event giving rise to the Company’s obligation to deliver such certificate. Notwithstanding the foregoing, the Company shall have no liability under this subsection for the Buy-In Price if it has compiled with the requirements of subsection 1.1 above and, notwithstanding it using its best efforts to have its transfer agent deliver the Warrant Shares to the Holders within three trading days of the Holder’s request, such Warrant Shares are not delivered on a timely basis.
 

 2. Determination or Adjustment of Exercise Price and Number of Shares. The Exercise Price and the number of shares purchasable upon the exercise of this Warrant shall be subject to adjustment from time to time upon the occurrence of certain events described in this Section 2. Upon each adjustment of the Exercise Price, the Holder of this Warrant shall thereafter be entitled to purchase, at the Exercise Price resulting from such adjustment, the number of shares obtained by multiplying the Exercise Price in effect immediately prior to such adjustment by the number of shares purchasable pursuant hereto immediately prior to such adjustment, and dividing the product thereof by the Exercise Price resulting from such adjustment.
 

 2.1
 Subdivision or Combination of Common Stock. In case the Company shall at any time subdivide or reclassify its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision shall be proportionately reduced, and conversely, in case the outstanding shares of Common Stock of the Company shall be combined or reclassified into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall be proportionately increased.
 

 2.2
 Dividends in Common Stock, Other Stock, Property, Reclassification. If at any time or from time to time the holders of Common Stock (or any shares of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received or become entitled to receive, without payment therefore:
 

 2.2.1
 Stock, Common Stock or any shares of capital stock or other securities which are at any time directly or indirectly convertible into or exchangeable for Common Stock, or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other distribution,
 

 2.2
 Any cash paid or payable otherwise than as a cash dividend, or
 

 2.2.3
 Stock, Common Stock or additional capital stock or other securities or property (including cash) by way of spinoff, split-up, reclassification, combination of shares or similar corporate rearrangement (other than shares of Common Stock issued as a stock split or adjustments in respect of which shall be covered by the terms of Section 2.1 above), then and in each such case, the Holder hereof shall then be entitled to receive, upon the exercise of this Warrant, in addition to the number of shares of Common Stock or other capital stock receivable thereupon, and without payment of any additional consideration therefor, the amount of stock and other securities and property (including cash in the cases referred to in clause (2.2.2) above and 
 

 3
 

 
 this clause (2.2.3)) which such Holder would hold on the date of such exercise had he been the holder of record of such Common Stock as of the date on which holders of Common Stock received or became entitled to receive such shares or other additional stock and other securities and property.
 

 2.3
 Reorganization, Reclassification, Consolidation, Merger or Sale.
 

 2.3.1
 If any recapitalization, reclassification or reorganization of the capital stock of the Company, or other transaction shall be effected in such a way that holders of Common Stock shall be entitled to receive stock, securities, or other assets or property (an “Organic Change”), then, as a condition of such Organic Change, lawful and adequate provisions shall be made by the Company whereby the Holder hereof shall thereafter have the right, upon exercise of this Warrant, to purchase and receive (in lieu of the shares of the Common Stock of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented by this Warrant) such shares of stock, securities or other assets or property as may be issued or payable with respect to or in exchange for a number of outstanding shares of such Common Stock equal to the number of shares of such stock immediately theretofore purchasable and receivable upon the exercise of the rights represented by this Warrant. In the event of any Organic Change, appropriate provision shall be made by the Company with respect to the rights and interests of the Holder of this Warrant to the end that the provisions hereof (including, without limitation, provisions for adjustments of the Exercise Price and of the number of shares purchasable and receivable upon the exercise of this Warrant and the Option) shall thereafter be applicable, in relation to any shares of stock, securities or assets thereafter deliverable upon the exercise hereof.
 

 2.3.2
 No adjustment of the Exercise Price, however, shall be made in an amount less than $.01 per Share, but any such lesser adjustment shall be carried forward and shall be made at the time and together with the next subsequent adjustment which together with any adjustments so carried forward shall amount to $.01 per Share or more.
 

 2.4
 Certain Events. If any change in the outstanding Common Stock of the Company or any other event occurs as to which the other provisions of this Section 2 are not strictly applicable or if strictly applicable would not fairly protect the purchase rights of the Holder of the Warrant in accordance with such provisions, then the Board of Directors of the Company shall make an adjustment in the number and class of shares available under the Warrant, the Exercise Price or the application of such provisions, so as to protect such purchase rights as aforesaid. The adjustment shall be such as will give the Holder of the Warrant upon exercise for the same aggregate Exercise Price the total number, and kind of shares as he would have owned had the Warrant been exercised prior to the event and had he continued to hold such shares until after the event requiring adjustment.
 

 2.5
 Intentionally omitted.
 

 2.6
 Notices of Change
 

 2.6.1
 Upon any determination or adjustment in the number or class of shares subject to this Warrant and of the Exercise Price, the Company shall give written notice thereof to the Holder, setting forth in reasonable detail and certifying the calculation of such determination or adjustment.
 

 2.6.2
 The Company shall give written notice to the Holder at least 20 business days prior to the date on which the Company closes its books or takes a record for determining rights to receive any dividends or distributions.
 

 2.6.3
 The Company shall also give written notice to the Holder at least thirty (30) days prior to the date on which an Organic Change, Change of Control or UPO shall take place.  During this thirty (30)-day or longer period, the Holder shall be entitled to exercise this Warrant in accordance with the terms and conditions set forth herein.
 

 3. Issue Tax. The issuance of certificates for shares of Common Stock upon the exercise of the Warrant shall be made without charge to the Holder of the Warrant for any issue tax (other than any applicable income taxes) in respect thereof; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than that of the then Holder of the Warrant being exercised. 
 

 

 4
 

 
 4. Closing of Books. The Company will at no time close its transfer books against the transfer of any warrant or of any shares of stock issued or issuable upon the exercise of any warrant in any manner which interferes with the timely exercise of this Warrant. 
 

 5. No Voting or Dividend Rights; Limitation of Liability. Nothing contained in this Warrant shall be construed as conferring upon the Holder hereof the right to vote as a shareholder of the Company. No dividends or interest shall be payable or accrued in respect of this Warrant, the interest represented hereby, or the shares purchasable hereunder until, and only to the extent that, this Warrant shall have been exercised, subject to the Holder’s rights under Section 2 of this Warrant. The Holder of this Warrant shall receive all notices as if a shareholder of the Company. No provisions hereof, in the absence of affirmative action by the Holder to purchase shares of Common Stock, and no mere enumeration herein of the rights or privileges of the Holder hereof, shall give rise to any liability of such Holder for the Exercise Price or as a shareholder of the Company, whether such liability is asserted by the Company or by its creditors. 
 

 6. Rights and Obligations Survive Exercise of Warrant. The rights and obligations of the Company, of the Holder of this Warrant and of the holder of shares of Common Stock issued upon exercise of this Warrant, shall survive the exercise of this Warrant. 
 

 7. Further Representations, Warranties and Covenants of the Company. 
 

 7.1
 Articles and Bylaws. The Company has made available to the Holder true, complete and correct copies of the Company’s Charter and Bylaws, as amended, through the date hereof.
 

 7.2
 Due Authority. The execution and delivery by the Company of this Warrant and the performance of all obligations of the Company hereunder, including the issuance to Holder of the right to acquire the shares of Common Stock, have been duly authorized by all necessary corporate action on the part of the Company, and the Warrant is not inconsistent with the Company Charter or Bylaws and constitutes a legal, valid and binding agreement of the Company, enforceable in accordance with its terms.
 

 7.3
 Consents and Approvals. No consent or approval of, giving of notice to, registration with, or taking of any other action in respect of any state, federal or other governmental authority or agency is required with respect to the execution, delivery and performance by the Company of its obligations under this Warrant, except for any filing required by applicable federal and state securities laws, which filing will be effective by the time required thereby.
 

 7.4
 Issued Securities. All issued and outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and nonassessable. All outstanding shares of capital stock were issued in full compliance with all federal and state securities laws.
 

 7.5
 Exempt Transaction. Subject to the accuracy of the Holders’ representations in Section 8 hereof, the issuance of the Common Stock upon exercise of this Warrant will constitute a transaction exempt from (i) the registration requirements of Section 5 of the 1933 Act, in reliance upon Section 4(a)(2) thereof, or upon the applicable exemption under Regulation D, and (ii) the qualification requirements of the applicable state securities laws.
 

 7.6
 Compliance with Rule 144. At the written request of the Holder, who proposes to sell Common Stock issuable upon the exercise of the Warrant in compliance with Rule 144 promulgated by the SEC, the Company shall furnish to the Holder, within five (5) days after receipt of such request, a written statement confirming the Company’s compliance with the filing requirements of the SEC as set forth in such Rule, as such Rule may be amended from time to time.
 

 7.7
 Registration. The Company hereby covenants and agrees that the Common Stock issuable upon the exercise of the Warrant will be included in the next available Form S-3 Registration Statement to be filed with the SEC at the Company’s sole expense, which will in any event be filed within sixty (60) days of the issuance of the Warrant.
 

 8. Representations and Covenants of the Holder. 
 

 

 5
 

 
 8.1 This Warrant has been entered into by the Company in reliance upon the following representations and covenants of the Holder:
 

 8.1.1
 Investment Purpose. The Warrant or the Common Stock issuable upon exercise of the Warrant will be acquired for investment and not with a view to the sale or distribution of any part thereof, and the Holder has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration statement or exemption from registration.
 

 8.1.2
 Private Issue. The Holder understands (i) that the Warrant and the Common Stock issuable upon exercise of this Warrant may not be registered under the 1933 Act or qualified under applicable state securities laws at the time of exercise on the ground that the issuance contemplated by this Warrant will be exempt from the registration and qualifications requirements thereof, and (ii) that the Company’s reliance on such exemption is predicated on the representations set forth in this Section 8.
 

 8.1.3
 Disposition of Holders Rights. In no event will the Holder make a disposition of the Warrant or the Common Stock issuable upon exercise of the Warrant unless and until (i) it shall have notified the Company of the proposed disposition, and (ii) if requested by the Company, it shall have furnished the Company with an opinion of counsel (which counsel may either be inside or outside counsel to the Holder) reasonably satisfactory to the Company and its counsel to the effect that (A) appropriate action necessary for compliance with the 1933 Act has been taken, or (B) an exemption from the registration requirements of the 1933 Act is available. Notwithstanding the foregoing, the restrictions imposed upon the transferability of any of its rights to acquire Common Stock issuable on the exercise of such rights do not apply to transfers from the beneficial owner of any of the aforementioned securities to its nominee or from such nominee to its beneficial owner, and shall terminate as to any particular share of stock when (1) such security shall have been effectively registered under the 1933 Act and sold by the Holder thereof in accordance with such registration or (2) such security shall have been sold without registration in compliance with Rule 144 under the 1933 Act, or (3) a letter shall have been issued to the Holder at its request by the staff of the SEC or a ruling shall have been issued to the Holder at its request by the SEC stating that no action shall be recommended by such staff or taken by the SEC, as the case may be, if such security is transferred without registration under the 1933 Act in accordance with the conditions set forth in such letter or ruling and such letter or ruling specifies that no subsequent restrictions on transfer are required. Whenever the restrictions imposed hereunder shall terminate, as hereinabove provided, the Holder or holder of a share of stock then outstanding as to which such restrictions have terminated shall be entitled to receive from the Company, without expense to such Holder, one or more new certificates for the Warrant or for such shares of stock not bearing any restrictive legend.
 

 8.1.4
 Financial Risk. The Holder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to bear the economic risks of its investment.
 

 9. Modification and Waiver. This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by (a) the party against which enforcement of the same is sought or (b) the Company and the holders of at least a majority of the number of shares into which the Warrants are exercisable (without regard to any limitation contained herein on such exercise), it being understood that upon the satisfaction of the conditions described in (a) and (b) above, each Warrant (including any Warrant held by the Holder who did not execute the agreement specified in (b) above) shall be deemed to incorporate any amendment, modification, change or waiver effected thereby as of the effective date thereof. Notwithstanding the foregoing, no modification to this Section 9 will be effective against any Holder without his consent.
 

 10. Transfer of this Warrant. The Holder may sell, transfer, assign, pledge or otherwise dispose of this Warrant, in whole or in part, as long as such sale or other disposition is made pursuant to an effective registration statement or an exemption from the registration requirements of the 1933 Act. Upon such transfer or other disposition (other than a pledge), the Holder shall deliver this Warrant to the Company together with a written notice to the Company, indicating the person or persons to whom this Warrant shall be transferred and, if less than all of this Warrant is transferred, the number of Warrant Shares to be covered by the part of this Warrant to be transferred to each such person. Within three (3) Business Days of receiving a transfer notice and the original of this Warrant, the Company shall deliver to the each transferee designated by the Holder another Warrant(s) of like tenor and terms for the appropriate number of Warrant Shares and, if less than all this Warrant is transferred, shall deliver to the Holder another Warrant for the remaining number of Warrant Shares.
 

 6
 

 
 

 11. Notices. Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be deemed effectively given upon (i) personal delivery, against written receipt thereof, (ii) delivery via facsimile or e-mail as set forth below (iii) two business days after deposit with Federal Express or another nationally recognized overnight courier service, or (iv) five business days after being forwarded, postage paid, via certified or registered mail, return receipt requested, addressed to each of the other parties thereunto entitled at the following addresses, or at such other addresses as a party may designate by ten days advance written notice.
 

 12. Binding Effect on Successors; Benefit. As provided in Section 2.4 above, this Warrant shall be binding upon any corporation succeeding the Company by merger, consolidation or acquisition of all or substantially all of the Company’s assets. All of the obligations of the Company relating to the Common Stock issuable upon the exercise of this Warrant shall survive the exercise and termination of this Warrant. All of the covenants and agreements of the Company shall inure to the benefit of the successors and assigns of the Holder hereof. This Warrant shall be for the sole and exclusive benefit of the Holder and nothing in this Warrant shall be construed to confer upon any person other than the Holder any legal or equitable right, remedy or claim hereunder.
 

 13. Descriptive Headings and Governing Law. The description headings of the several sections and paragraphs of this Warrant are inserted for convenience only and do not constitute a part of this Warrant. This Warrant shall be construed and enforced in accordance with, and the rights of the parties shall be governed by the laws of the State of Nevada.
 

 14. Lost Warrants. The Company represents and warrants to the Holder hereof that upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant and, in the case of any such loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory to the Company, or in the case of any such mutilation upon surrender and cancellation of such Warrant, the Company, at its expense, will make and deliver a new Warrant, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant.
 

 15. Fractional Shares. No fractional shares shall be issued upon exercise of this Warrant. The Company shall, in lieu of issuing any fractional share, pay the Holder entitled to such fraction a sum in cash equal to such fraction multiplied by the then effective Exercise Price.
 

 

 

 

 

 

 

 

 

 

 

 

 [SIGNATURE PAGE TO FOLLOW]
 

 

 

 

 

 

 

 7
 

 
 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its officers, thereunto duly authorized this
 

 Dated:  December 11, 2015.
 

 

 BLUE EARTH, INC.
 a Nevada corporation
 

 By:    /s/ G. Robert Powell
 Name: G. Robert Powell
 Title:  Chief Executive Officer
 Address:
 

 2298 Horizon Ridge Parkway, Suite 205
 Henderson, NV 89052
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 8
 

 
 SCHEDULE A
 

 SUBSCRIPTION FORM
 

 

 Date:_______________, _________ 
 

 

 

 Blue Earth, Inc. - Attn: CEO 
 

 Ladies and Gentlemen: 
     
 The undersigned hereby elects to exercise the Warrant issued to it by Blue Earth, Inc. (“Company”) and dated December ___, 2015 (“Warrant”) and to purchase thereunder _______ shares of the Common Stock of the Company (“Shares”) at a purchase price of  $_____ per Share or an aggregate purchase price of ____________ Dollars ($___) (“Exercise Price”).
 

 Pursuant to the terms of the Warrant, the undersigned has delivered the Exercise Price herewith in full in cash or by certified check or wire transfer. 
 

 Very truly yours, 
 

 

 _____________________
 Signature
 

 

 

 _____________________
 Print Name
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 9
 

 
 ASSIGNMENT
 To Be Executed by the Holder
 in Order to Assign Warrants
 

 

 FOR VALUE RECEIVED,
 

 ________________________________  hereby sells, assigns and transfers unto
 

 PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER
 

 [please print or type name and address]
 

 ______________________________ of the Warrants represented by this Warrant Certificate, and hereby irrevocably constitutes and appoints  ____________________________  Attorney to transfer this Warrant Certificate on the books of the Company, with full power of substitution in the premises. 
 

 	 	 	 	 	
	  
	  
	  
	  
	  

	 Dated: 
	  
	 x
	  
	 __________________________

	   
	  
	  
	  
	 Signature Guaranteed

 

 THE SIGNATURE TO THE ASSIGNMENT OR THE SUBSCRIPTION FORM MUST CORRESPOND TO THE NAME AS WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A COMMERCIAL BANK OR TRUST COMPANY OR A MEMBER FIRM OF THE AMERICAN STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE OR MIDWEST STOCK EXCHANGE.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00252-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00252-of-00352.parquet"}]]