Document:

EX-10.1

 Exhibit 10.1 

INDEMNIFICATION AGREEMENT 

THIS INDEMNIFICATION AGREEMENT (the “Agreement”) is made and entered into as of ___________, 2015 between Astro-Med,
Inc., a Rhode Island corporation (the “Company”), and [name] (“Indemnitee”). 

WITNESSETH THAT: 

WHEREAS, highly competent persons have become more reluctant to serve corporations as directors or officers or in other capacities
unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation; 

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain
qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance
has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at
higher premiums and with more exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among
other things, matters that traditionally would have been brought only against the Company or business enterprise itself. The Articles of Incorporation permit and the Bylaws of the Company require indemnification of the officers and directors of the
Company. Indemnitee may also be entitled to indemnification pursuant to the Rhode Island Business Corporation Act (“RIBCA”). The Bylaws and the RIBCA expressly provide that the indemnification provisions set forth therein are not
exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the Board, officers and other persons with respect to indemnification; 

WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining
such persons; 
 WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is
detrimental to the best interests of the Company’s shareholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future; 

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses
on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; and 

WHEREAS, Indemnitee does not regard the protection available under the Company’s Bylaws and insurance as adequate under the
present circumstances and may not be willing to serve as an officer or director without adequate protection, and the Company desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional
service for or on behalf of the Company on the condition that he be so indemnified. 

 NOW, THEREFORE, in consideration of Indemnitee’s agreement to serve as an director
from and after the date hereof, the parties hereto agree as follows: 
 1. Indemnity of Indemnitee. The Company hereby agrees
to hold harmless and indemnify Indemnitee to the fullest extent permitted by law, as such may be amended from time to time. In furtherance of the foregoing indemnification, and without limiting the generality thereof: 

(a) Proceedings Other Than Proceedings by or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification
provided in this Section l(a) if, by reason of his Corporate Status (as hereinafter defined), the Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding (as hereinafter defined) other than a Proceeding by or
in the right of the Company. Pursuant to this Section 1(a), Indemnitee shall be indemnified against all Expenses (as hereinafter defined), judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by
him, or on his behalf, in connection with such Proceeding, if the Indemnitee (i) conducted himself in good faith and (ii) reasonably believed (x) in the case of conduct in his Official Capacity (as hereinafter defined), that his
conduct was in the best interests of the Company, (y) in all other cases, that his conduct was at least not opposed to the best interests of the Company, and (iii) with respect to any criminal Proceeding, had no reasonable cause to believe
the Indemnitee’s conduct was unlawful; provided, however, that, in no event shall Indemnitee be entitled to any such indemnification if prohibited by Section 1(d) hereof. 

(b) Proceedings by or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification provided in this
Section 1(b) if, by reason of his Corporate Status, the Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding brought by or in the right of the Company and a court of appropriate jurisdiction orders such
indemnification. Pursuant to this Section 1(b), Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by the Indemnitee, or on the Indemnitee’s behalf, in connection with such Proceeding if it is
determined that the Indemnitee has met the relevant standard of conduct set forth in Section 1(a)(i) through (iii) above; provided, however, that, in no event shall Indemnitee be entitled to any such
indemnification if prohibited by Section 1(d) hereof. 
 (c) Indemnification for Expenses of a Party Who is Wholly
Successful. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a party to and is wholly successful, on the merits or otherwise, in any Proceeding, he shall be indemnified
to the maximum extent permitted by law, as such may be amended from time to time, against all Expenses actually and reasonably incurred by him in connection therewith. For purposes of this Section the term “wholly successful, on the merits or
otherwise,” shall be deemed to include, without limitation, a dismissal of a Proceeding, with or without prejudice, a withdrawal of a Proceeding and a settlement not involving any payment or assumption of liability. 

(d) No Indemnification if Improper Personal Benefit. Notwithstanding any other provision of this Agreement, if applicable law so
provides, no indemnification of any kind (including against Expenses) shall be made in respect of any claim, issue or matter in such Proceeding as to which Indemnitee shall have been adjudged to be liable to the Company on the

 
basis that he received an improper personal benefit, whether or not involving action in his Official Capacity, unless and then only to the extent that a court of appropriate jurisdiction (which
may include the Superior Court for Providence County, Rhode Island or the court in which the Proceeding involving the Indemnitee’s liability took place) shall order that such indemnification may be made. 

2. Additional Indemnity. In addition to, and without regard to any limitations on, the indemnification provided for in
Section 1 of this Agreement, the Company shall and hereby does indemnify and hold harmless Indemnitee against all Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or on his
behalf and to make a payment to Indemnitee of Expenses in advance of the final disposition on any Proceeding if, by reason of his Corporate Status, he is, or is threatened to be made, a party to or participant in any Proceeding (including a
Proceeding by or in the right of the Company), in each case to the fullest extent as may be provided for under the Company’s Articles of Incorporation, By-Laws, vote of the shareholders or Disinterested Directors (as hereinafter defined) and/or
applicable law notwithstanding that any such indemnification or advance of Expenses is not specifically authorized by the other provisions of this Agreement. It is the intent of the parties hereto that in the event of any change, after the date of
this Agreement, in any applicable law which expands the right of a Rhode Island corporation to indemnify or make an advance of Expenses to a director or officer to a greater degree than would be afforded currently under the Company’s Articles
of Incorporation, By-Laws, vote of the shareholders or Disinterested Directors and this Agreement, the Indemnitee shall enjoy by this Agreement the greater benefits afforded by such change. 

3. Contribution. 
 (a)
Whether or not the indemnification provided in Sections 1 and 2 hereof is available, in respect of any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if
joined in such action, suit or proceeding), the Company shall pay, in the first instance, the entire amount of any judgment or settlement of such action, suit or proceeding without requiring Indemnitee to contribute to such payment and the Company
hereby waives and relinquishes any right of contribution it may have against Indemnitee. The Company shall not enter into any settlement of any action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined
in such action, suit or proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee. 

(b) Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, Indemnitee
shall elect or be required to pay all or any portion of any judgment or settlement in any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit
or proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative benefits received by the Company
and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, from the
transaction or events from which such action, suit or proceeding arose; provided, however, that the proportion determined on the basis of relative 

 
benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all officers, directors or employees of the Company other than
Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the transaction or events that resulted in such expenses, judgments,
fines or settlement amounts, as well as any other equitable considerations which applicable law may require to be considered. The relative fault of the Company and all officers, directors or employees of the Company, other than Indemnitee, who are
jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated
by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their conduct is active or passive. 

(c) The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by
officers, directors, or employees of the Company, other than Indemnitee, who may be jointly liable with Indemnitee. 
 (d) To the fullest
extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by
Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed
fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding
and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s). 

4. Indemnification for Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is,
by reason of his Corporate Status, a witness, or is made (or asked) to respond to discovery requests, in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on
his behalf in connection therewith. 
 5. Advancement of Expenses. To the maximum extent permitted by the RIBCA, the Company shall
pay the Expenses of Indemnitee in advance of the final and non-appealable disposition of any Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status within thirty (30) days after the receipt by the Company of a
written request for advancement of Expenses. The advance payment of Expenses will be subject to (a) the Company’s receipt of a written affirmation by Indemnitee of Indemnitee’s good faith belief that Indemnitee met the standard of
conduct necessary for indemnification by the Company under this Agreement and a written undertaking by or on behalf of Indemnitee to repay any Expenses advanced if a court of appropriate jurisdiction determines that Indemnitee has not met that
standard of conduct and (b) a determination that the facts then known to those making the determination would not preclude indemnification under the RIBCA. Advance payment of Expenses will be made without regard to Indemnitee’s financial
ability to make repayment. Any undertakings to repay advances pursuant to this Section 5 must be an unlimited general obligation of Indemnitee, and any advances pursuant to this Section 5 shall be unsecured and

 
interest free. Notwithstanding a court determination that Indemnitee has not met the standard of conduct for indemnification, if such determination is being appealed, Indemnitee will not be
required to reimburse any Expenses which have been advanced until a final determination (as to which all rights of appeal have been exhausted or lapsed) has been made. 

6. Procedures and Presumptions for Determination of Entitlement to Indemnification. It is the intent of this Agreement to secure for
Indemnitee rights of indemnity that are as favorable as may be permitted under the RIBCA and public policy of the State of Rhode Island. Accordingly, the parties agree that the following procedures and presumptions shall apply in the event of any
question as to whether Indemnitee is entitled to indemnification under this Agreement: 
 (a) To obtain indemnification under this Agreement
(including an advance of Expenses under Section 5 hereof), Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is
reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has
requested indemnification. Notwithstanding the foregoing, any failure of Indemnitee to provide such a request to the Company, or to provide such a request in a timely fashion, shall not relieve the Company of any liability that it may have to
Indemnitee unless, and to the extent that, such failure actually and materially prejudices the interests of the Company. 
 (b) Upon written
request by Indemnitee for indemnification pursuant to the first sentence of Section 6(a) hereof, a determination with respect to Indemnitee’s entitlement thereto shall be made in the specific case by one of the following four
methods: (1) if a quorum consisting of Disinterested Directors can be obtained, by a majority vote of a quorum of the Disinterested Directors, (2) if such quorum cannot be obtained, by a committee designated by a majority vote of the full
Board (in which designation directors who are not disinterested may participate) consisting solely of two or more Disinterested Directors, (3) if there are no Disinterested Directors or if the Disinterested Directors so direct, by Special Legal
Counsel in a written opinion to the Board, a copy of which shall be delivered to the Indemnitee, or (4) by a majority vote of the shareholders of the Company. The Company agrees that if there is a Change in Control then with respect to all
matters concerning the rights of Indemnitee to indemnification and advance of Expenses under this Agreement, the Company’s Articles of Incorporation or By-Laws, any vote of the Company’s shareholders or Disinterested Directors, any other
agreement, any law or otherwise, such determination shall be made by Special Legal Counsel selected as provided in Section 6(c) hereof. 

(c) If the determination of entitlement to indemnification is to be made by Special Legal Counsel pursuant to Section 6(b) hereof,
the Special Legal Counsel shall be selected as provided in this Section 6(c). Special Legal Counsel will be selected by (1) a majority vote of Disinterested Directors or (2) if a quorum of Disinterested Directors does not
exist, by majority vote of a committee, consisting of two or more Disinterested Directors, which committee is designated by a majority vote of the full Board of Directors, including interested directors or (3) if such a committee cannot be
established or if the requisite quorum of the full Board cannot be obtained, by a majority vote of the full Board (in which selection, directors who are not Disinterested Directors may participate). The Company will notify Indemnitee of such

 
selection. Following receipt of notice of the selection of Special Legal Counsel, Indemnitee may, within ten (10) days after such written notice of selection shall have been given, deliver
to the other party a written objection to such selection; provided, however, that such objection may be asserted only on the ground that (1) Special Legal Counsel so selected does not meet the requirements of “Special Legal
Counsel” as defined in Section 13 of this Agreement or (2) is otherwise not well qualified to serve as Special Legal Counsel, and the objection shall set forth with particularity the factual basis of such assertion. Absent
a proper and timely objection, the person so selected shall act as Special Legal Counsel. If a written objection is made and substantiated, the Special Legal Counsel selected may not serve as Special Legal Counsel unless and until such objection is
withdrawn or a court has determined that such objection is without merit. If, within twenty (20) days after submission by Indemnitee of a written request for indemnification pursuant to Section 6(a) hereof (including an advance of
Expenses under Section 5 hereof), no Special Legal Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Superior Court of Providence County, Rhode Island or other court of appropriate
jurisdiction for resolution of any objection which shall have been made to the selection of Special Legal Counsel and/or for the appointment as Special Legal Counsel of a person selected by the court or by such other person as the court shall
designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Special Legal Counsel under Section 6(b) hereof. The Company shall pay any and all reasonable fees and expenses of
Special Legal Counsel incurred by such Special Legal Counsel in connection with acting pursuant to Section 6(b) hereof, and the Company shall pay all reasonable fees and expenses incident to the procedures of this
Section 6(c), regardless of the manner in which such Special Legal Counsel was selected or appointed. 
 (d) In making a
determination with respect to entitlement to indemnification or advancement of Expenses hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification or advancement of Expenses
under this Agreement. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence. Neither the failure of the Company (including by its directors or special legal counsel)
to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification or advancement of Expenses is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an
actual determination by the Company (including by its directors or special legal counsel) that Indemnitee has not met such applicable standard of conduct, shall create a presumption that Indemnitee has not met the applicable standard of conduct.

 (e) Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the
Enterprise (as hereinafter defined), including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or
records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Enterprise. In addition, the knowledge and/or actions, or failure to act, of any
director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. Whether or not the foregoing provisions of this Section 6(e) are
satisfied, it shall in any event be presumed that Indemnitee has at all times acted 

 
in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. Anyone seeking to overcome this presumption shall have the burden of proof and
the burden of persuasion by clear and convincing evidence. 
 (f) Within thirty (30) days after its receipt of a request contemplated
by Section 6(a), the Company will make determination as to whether Indemnitee is entitled to the indemnification requested. The determination referred to in the preceding sentence will be made in the manner set forth in
Section 6(b) of this Agreement. If such determination has not been made within thirty (30) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to
have been made and Indemnitee shall be entitled to such indemnification absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in
connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law, provided, however, , that the foregoing provisions of this Section 6(f) shall not apply if the
determination of entitlement to indemnification is to be made by the shareholders pursuant to Section 6(b) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such
determination, the Board or the Disinterested Directors, if appropriate, resolve to submit such determination to the shareholders for their consideration, (B) an annual meeting or a special meeting of shareholders is called within thirty
(30) days after such receipt with a purpose of making such determination, (C) such meeting is held for such purpose within thirty (30) days after having been so called and (D) such determination is made thereat. 

(g) Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to
indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee
and reasonably necessary to such determination. Any Special Legal Counsel, member of the Board or shareholder of the Company shall act reasonably and in good faith in making a determination regarding the Indemnitee’s entitlement to
indemnification under this Agreement. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company
(irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. 

(h) The Company acknowledges that a settlement or other disposition short of final judgment may be successful if it permits a party to avoid
expense, delay, distraction, disruption and uncertainty. In the event that any action, claim or proceeding to which Indemnitee is a party is resolved in any manner other than by adverse judgment against Indemnitee (including, without limitation,
settlement of such action, claim or Proceeding with or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or otherwise in such action, claim or Proceeding. Anyone seeking to
overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence. 
 (i) The
termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, 

 
shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in
good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful. 

7. Remedies of Indemnitee. 

(a) In the event that (i) a determination is made pursuant to Section 6 of this Agreement that Indemnitee is not entitled to
indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 5 of this Agreement, (iii) no determination of entitlement to indemnification is made pursuant to
Section 6(b) of this Agreement within thirty(30) days after receipt by the Company of the request for indemnification (or sixty (60) days in the case of the meeting of the shareholders described in Section 6(f) of this
Agreement), (iv) payment of indemnification is not made pursuant to this Agreement within ten (10) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made within ten
(10) days after a determination has been made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 6 of this Agreement, Indemnitee shall be entitled to an adjudication
in a court of appropriate jurisdiction located in the State of Rhode Island of Indemnitee’s entitlement to such indemnification. Indemnitee shall commence such proceeding seeking an adjudication within one hundred eighty (180) days
following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 7(a). The Company shall not oppose Indemnitee’s right to seek any such adjudication. 

(b) In the event that a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is not
entitled to indemnification, any judicial proceeding commenced pursuant to this Section 7 shall be conducted in all respects as a de novo trial on the merits, and Indemnitee shall not be prejudiced by reason of the adverse determination
under Section 6(b). 
 (c) If a determination shall have been made pursuant to Section 6(b) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section 7, absent (i) a misstatement by Indemnitee of a material fact, or an omission
of a material fact necessary to make Indemnitee’s misstatement not materially misleading in connection with the application for indemnification, or (ii) a prohibition of such indemnification under applicable law. 

(d) In the event that Indemnitee, pursuant to this Section 7, seeks a judicial adjudication of his rights under, or to recover
damages for breach of, this Agreement, or to recover under any directors’ and officers’ liability insurance policies maintained by the Company, the Company shall pay on his behalf, in advance, any and all expenses (of the types described
in the definition of Expenses in Section 13 of this Agreement) actually and reasonably incurred by him in such judicial adjudication. 

(e) The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section 7 that the
procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is 

 
bound by all the provisions of this Agreement. The Company shall indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt
by the Company of a written request therefore) advance, to the extent not prohibited by law, such expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of Expenses
from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification,
advancement of Expenses or insurance recovery, as the case may be. 
 (f) Notwithstanding anything in this Agreement to the contrary, no
determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding. 

8. Defense of Claim and Selection of Counsel. In the event the Company shall be obligated under Section 5 hereof to advance
Expenses with respect to any Proceeding, the Company, if appropriate, shall be entitled to assume the defense of such Proceeding, with counsel reasonably acceptable to Indemnitee, upon the delivery to Indemnitee of written notice of its election so
to do. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by
Indemnitee with respect to the same Proceeding, provided that (a) Indemnitee shall have the right to employ counsel in any such Proceeding at Indemnitee’s expense; and (b) if (i) the employment of counsel by Indemnitee has been
previously authorized by the Company, (ii) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of any such defense or (iii) the Company shall not, in fact,
have employed counsel to assume the defense of such Proceeding, then the fees and expenses of Indemnitee’s counsel shall be at the expense of the Company. In addition, if there exists a potential, but not an actual, conflict of interest between
the Company and Indemnitee, the actual and reasonable legal fees and expenses incurred by Indemnitee for separate counsel retained by Indemnitee to monitor the Proceeding (so that such counsel may assume Indemnitee’s defense if the conflict of
interest between the Company and Indemnitee becomes an actual conflict of interest) shall be deemed to be Expenses that are subject to indemnification hereunder. The existence of an actual or potential conflict of interest, and whether such conflict
may be waived, shall be determined pursuant to the rules of attorney professional conduct and applicable law. The Company shall not be required to obtain the consent of Indemnitee for the settlement of any Proceeding the Company has undertaken to
defend if the Company assumes full and sole responsibility for each such settlement; provided, however, that the Company shall be required to obtain Indemnitee’s prior written approval, which shall not be unreasonably withheld, before entering
into any settlement which (1) does not grant Indemnitee a complete release of liability, (2) would impose any penalty or limitation on Indemnitee, or (3) would admit any liability or misconduct by Indemnitee. 

9. Non-Exclusivity; Survival of Rights; Insurance; Primacy of Indemnification; Subrogation. 

(a) The rights of indemnification as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at
any time be entitled under applicable law, the Articles of Incorporation, the By-laws, any agreement, a vote of shareholders, 

 
a resolution of directors of the Company, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this
Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in the RIBCA, whether by statute or judicial decision, permits greater
indemnification than would be afforded currently under the Articles of Incorporation, By-laws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.
No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or
in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. 

(b) To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees,
or agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person serves at the request of the Company, Indemnitee shall be covered by such policy or
policies in accordance with its or their terms to the maximum extent of the coverage available for any director, officer, employee, agent or fiduciary under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to
the terms hereof, the Company has directors’ and officers’ liability insurance in effect, the Company shall give prompt notice of such claim to the insurers in accordance with the procedures set forth in the respective policies. The
Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such claim in accordance with the terms of such policies. 

(c) In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of
recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights. 

(d) The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent
that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise. 
 (e) The
Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise.

 10. Exception to Right of Indemnification. Notwithstanding any provision in this Agreement, the Company shall not be obligated
under this Agreement to make any indemnity in connection with any claim made against Indemnitee: 

 (a) for which payment has actually been made to or on behalf of Indemnitee under any insurance
policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or 

(b) for which the Indemnitee is otherwise indemnified or reimbursed; or 

(c) for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the
meaning of Section 16(b) of the Exchange Act, or similar provisions of state statutory law or common law; or 
 (d) for
Indemnitee’s reimbursement to the Company of any bonus or other incentive-based or equity-based compensation previously received by Indemnitee or payment of any profits realized by Indemnitee from the sale of securities of the Company, as
required in each case under the Exchange Act (including any such reimbursements under Section 304 of the Sarbanes-Oxley Act of 2002 in connection with an accounting restatement of the Company or the payment to the Company of profits arising
from the purchase or sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act); or 
 (e) with respect to
a Proceeding in which a final judgment or other final adjudication determines that the Indemnitee is liable to the Company or its shareholders for: (i) a breach of the Indemnitee’s duty of loyalty to the Company or its shareholders;
(ii) acts or omissions not in good faith or which involve intentional misconduct or knowing violation of law; (iii) liability imposed pursuant to the provisions of Section 7-1.2-811 of the RIBCA; or (iv) any transaction (other
than a transaction approved in accordance with Section 7-1.2-807 of the RIBCA) from which the Indemnitee derived an improper personal benefit; or 

(f) if a final judgment or other final adjudication determines that such payment is unlawful; or 

(g) in connection with proceedings or claims involving the enforcement of non-competition and/or non-disclosure agreements or the
non-competition and/or non-disclosure provisions of employment, consulting or similar agreements that the Indemnitee may be a party to with the Company, or any subsidiary of the Company or any other applicable foreign or domestic corporation,
partnership, joint venture, trust or other enterprise, if any; or 
 (h) in connection with any Proceeding (or any part of any Proceeding)
initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, except with respect to an action, suit or proceeding brought to
establish or enforce a right to indemnification (which shall be governed by the provisions of Section 7 of this Agreement), unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation, or
(ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law. 

11. Duration of Agreement. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee
is an officer or director of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise) and shall

 
continue thereafter so long as Indemnitee shall be subject to any Proceeding (or any proceeding commenced under Section 7 hereof) by reason of his Corporate Status, whether or not he
is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), assigns, spouses, heirs, executors and
personal and legal representatives. 
 12. Security. To the extent requested by Indemnitee and approved by the Board, the Company may
at any time and from time to time provide security to Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of credit, funded trust or other collateral. Any such security, once provided to Indemnitee, may not be
revoked or released without the prior written consent of the Indemnitee. 
 13. Enforcement. 

(a) The Company expressly confirms and agrees that it has entered into this Agreement and assumes the obligations imposed on it hereby in
order to induce Indemnitee to serve as an officer or director of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as an officer or director of the Company. Indemnitee acknowledges that in certain
instances, applicable law (including, without limitation, federal securities laws, the Employee Retirement Security Act of 1974 and other federal laws that may preempt or override applicable state law) or public policy may prohibit the Company from
indemnifying Indemnitee under this Agreement or otherwise. Nothing herein shall be construed to provide indemnification where such indemnification is prohibited as described in the preceding sentence. 

(b) This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof. 
 14.
Definitions. For purposes of this Agreement: 
 (a) “Change in Control” means: 

(i) the acquisition of more than 50% of the beneficial ownership of the combined voting securities of the Company by any person or group (as
such terms are used in Section 13(d) and 14(d) of the Exchange Act), other than the Company or its subsidiaries or any employee benefit plan of the Company or any person who was an officer or director of the Company on the date of this
Agreement; 
 (ii) consummation by the Company of a reorganization, merger or consolidation, in each case, with respect to which all or
substantially all of the individuals and entities who were the beneficial owners of the voting securities of such entity immediately prior to such reorganization, merger or consolidation do not, following such reorganization, merger or
consolidation, beneficially own, directly or 

 
indirectly, securities representing more than 50% of the voting power of then outstanding voting securities of the corporation resulting from such a reorganization, merger or consolidation; 

(iii) the sale, exchange or other disposition (in one transaction or a series of related transactions) of all or substantially all of the
assets of the Company (on a consolidated basis) to a party which is not controlled by or under common control with the Company; or 
 (iv)
a change in the composition of the Board during any period of twenty-four months (not including any period prior to the date of this Agreement), such that the individuals who at the beginning of such period, constitute the Board (such Board shall be
hereinafter referred to as the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this paragraph, that any individual who becomes a member of the Board
subsequent to the date hereof, whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least two-thirds (2/3) of those individuals who are members of the Board and who were also members of the
Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board; but, provided further, that any such individual whose initial assumption of office occurs as a result
of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of “Persons”
(as such term is used for purposes of Section 13(d) or 14(d) of the Exchange Act) other than the Board shall not be so considered as a member of the Incumbent Board. 

(b) “Corporate Status” describes the status of an individual who is or was a director, officer, employee, agent or fiduciary
of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such individual is or was serving at the express written request of the Company. 

(c) “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of
which indemnification is sought by Indemnitee. 
 (d) “Enterprise” shall mean the Company and any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise that Indemnitee is or was serving at the express written request of the Company as a director, officer, employee, agent or fiduciary. 

(e) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

(f) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts,
witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending,
preparing to prosecute or defend, investigating, participating, or being or preparing to be a 

 
witness in a Proceeding, or responding to, or objecting to, a request to provide discovery in any Proceeding. Expenses also shall include Expenses incurred in connection with any appeal resulting
from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersede as bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by
Indemnitee or the amount of judgments or fines against Indemnitee. 
 (g) “Official Capacity” shall mean. (i) when
used with respect to a director, the office of director in the Company and (ii) when used with respect to an officer, the office in the Company held by the officer, but does not include service for any other foreign or domestic corporation or
any partnership, joint venture, trust, other enterprise or employee benefit plan. 
 (h) “Proceeding” includes any
threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought by or in the right of the
Company or otherwise and whether civil, criminal, administrative or investigative, in which Indemnitee was, is or will be involved as a party or otherwise, by reason of his or her Corporate Status, by reason of any action taken by him or of any
inaction on his part while acting in his or her Corporate Status; in each case whether or not he is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this
Agreement; including one pending on or before the date of this Agreement, but excluding one initiated by an Indemnitee pursuant to Section 7 of this Agreement to enforce his rights under this Agreement. 

(i) “Special Legal Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law
and neither presently is, nor in the past three years has been, retained to represent (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or
of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Special Legal Counsel” shall not
include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this
Agreement. Special Legal Counsel shall be selected in the manner set forth in Section 6(c). The Company agrees to pay the reasonable fees of the Special Legal Counsel referred to above and to fully indemnify such counsel against any and all
Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto. 
 15.
Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision. Without limiting the generality of the foregoing, this Agreement is intended to confer upon
Indemnitee indemnification rights to the fullest extent permitted by applicable laws. In the event any provision hereof conflicts with any applicable law, such provision shall be deemed modified, consistent with the aforementioned intent, to the
extent necessary to resolve such conflict. 
 16. Modification and Waiver. No supplement, modification, termination or amendment of
this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor
shall such waiver constitute a continuing waiver. 

 17. Notice By Indemnitee. Indemnitee agrees promptly to notify the Company in writing upon
being served with or otherwise receiving any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification covered hereunder. The failure to so notify
the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement or otherwise unless and only to the extent that such failure or delay materially prejudices the Company. 

18. Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed
effectively given (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business
day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. All communications shall be sent: 
 (a) To Indemnitee at the address set forth below
Indemnitee signature hereto. 
 (b) To the Company at: 

Astro-Med, Inc. 

600 East Greenwich Avenue 

West Warwick, RI 02893 

Attention: Corporate Secretary 

or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be. 

19. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g.,
www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.  

20. Headings. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute
part of this Agreement or to affect the construction thereof. 
 21. Governing Law and Consent to Jurisdiction. This Agreement and
the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Rhode Island, without regard to its conflict of laws rules. The Company and Indemnitee hereby irrevocably and
unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Superior Court 

 
of Providence County, State of Rhode Island, or any other court of appropriate jurisdiction located in the State of Rhode Island (the “Rhode Island Court”), (ii) consent to
submit to the exclusive jurisdiction of the Rhode Island Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) consent to service of process in connection with any such action or proceeding
against such party by any method permitted under the rules of the Rhode Island Court (including, if so permitted, by mail), (iv) waive any objection to the laying of venue of any such action or proceeding in the Rhode Island Court, and
(v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Rhode Island Court has been brought in an improper or inconvenient forum. 

SIGNATURE PAGE TO FOLLOW 

 IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement on and as of
the day and year first above written. 
  

			
	COMPANY
		
	By:	 	 
	Name:	 	  

	Title:	 	  

	
	INDEMNITEE
	
	  

	Name:	 	  

		
	Address:Exhibit
4.1 

EXHIBIT A

(FORM OF SUBORDINATED NOTE)

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)
AND DEPOSITORS OF SALISBURY BANCORP, INC. (“COMPANY”), 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 GENERALLY WILL
BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED
TRANSFER OF THIS SUBORDINATED NOTE IN A DENOMINATION OF LESS THAN $100,000 OR THE FULL AMOUNT OF SUCH NOTE IF LESS THAN $100,000
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 10, 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.

THIS OBLIGATION IS NOT A DEPOSIT
AND IS NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENT AGENCY OR FUND.

 

    	 

    	 

    

	No.
[●]	CUSIP [●]

 

SALISBURY
BANCORP, INC.

6.00%
FIXED TO FLOATING RATE SUBORDINATED NOTE DUE 2025

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.

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

2.             
Payment. The 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 15, 2025 (“Stated Maturity”) and to pay interest
thereon (i) from and including the original issue date of the Subordinated Notes to but excluding December 15, 2020 or the earlier
redemption date contemplated by Section 4(a) or Section 4(b) 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
15 and December 15 of each year (each, a “Fixed Interest Payment Date”), beginning June 15, 2016, and (ii) from
and including December 15, 2020 to but excluding the Stated Maturity or the earlier redemption date contemplated by Section
4(a) or 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 Floating Rate Interest Period plus 430 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 15, June 15, September 15 and December 15
of each year (each, a “Floating Interest Payment Date”). A “Floating Rate Interest Period”
with respect to this Subordinated Note is each successive period from and including December 15, 2020 or a Floating Rate Interest
Payment Date, as the case may be, to, but excluding, the next Floating Rate Interest Payment Date or the date on which the entire
principal amount of this Subordinate Note has been paid or made available for payment, as the case may be. 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 Rate 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 other than a Saturday, Sunday or any other day on which banking institutions
in the State of Connecticut are permitted or required by any applicable law or executive order to close.

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, without application of the exception for companies that are subject to the Small Bank Holding Company and Savings and
Loan Holding Company Policy Statement, as set forth at 12 C.F.R. Part 225, App. C, as the same may be amended or modified from
time to time (the “Capital Adequacy Regulations”); (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 (as such terms are defined in the Purchase
Agreement). 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.

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. 

(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 the amount
required to be paid upon redemption has been paid to the holder hereof, 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.

(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 60 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 may purchase any of the Subordinated Notes at any time in the open market, 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, or the entry of a decree
or order by any governmental authority in respect of any “major depository institution subsidiary” (as defined for
purposes of the Capital Adequacy Regulations) of the Company in any receivership, insolvency, liquidation or similar proceeding
conducted under the laws of the United States or any political subdivision thereof, and, in either case, 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;

(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 below, 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 60 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 and such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses, disbursements and advances of such holder of this Subordinated
Note, its agents and counsel, 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.

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., Lakeville, Connecticut 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 Lakeville,
Connecticut, 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 Lakeville, Connecticut. 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.

(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 5 years immediately preceding the Maturity Date of the Subordinated Notes and other than due to
the application of the exception from the Capital Adequacy Regulations for companies subject to the Small Bank Holding Company
and Savings and Loan Holding Company Policy Statement, 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)           
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 generally issuable only in registered form without interest coupons in
minimum denominations of $100,000 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.

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 therefore a Subordinated Note or Subordinated
Notes of like aggregate principal amount, each in a minimum denomination of $100,000 or the full amount of the Subordinated Note
surrendered or presented if less than $100,000 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.

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 therefore 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.

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 5 Bissell
Street, PO Box 1868, Lakeville, Connecticut 06039, Attn: Richard J. Cantele Jr., 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]

 

    	 

    	 

    

 

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

Dated:
[●]

	 	SALISBURY BANCORP, INC.
	 	 	 	 
	 	By:	 
	 	 	Name:	 Richard J. Cantele Jr.
	 	 	Title:	President and Chief Executive Officer

 

    	 

    	 

    

 

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, stockbrokers, savings
and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant
to Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).

 

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 representations and agreements; or
	 	 	 
	☐	(7)	transferred
in accordance with another available exemption from the registration requirements of the Securities Act.

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, stockbrokers, savings and loan associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to Exchange Act Rule 17Ad-l5).

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

The
undersigned represents and warrants that it is purchasing this Subordinated Note for its own account or an account with
respect to which it exercises sole investment discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act, and is aware that the sale to it is being made in reliance on
Rule 144A and acknowledges that it has received such information regarding 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:

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