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| Trust Indenture Act |      | Trust Agreement |
|---------------------|-----------|-----------------|
| (Section) 310       | (a)(1)    |            | 8.7 |
|                | (a)(2)    |            | 8.7 |
|                | (a)(3)    |            | 8.7 |
|                | (a)(4)    |            | 2.7(a)(ii) |
|                | (b)       |            | 8.8 |
| (Section) 311       | (a)       |            | 8.13 |
|                | (b)       |            | 8.13 |
| (Section) 312  | (a)       |            | 5.7 |
|                | (b)       |            | 5.7 |
| (Section) 313       | (a)       |            | 5.7 |
|                | (b)       |            | 8.15(a) |
|                | (a)(4)    |            | 8.15(b) |
|                | (b)       |            | 8.15(b) |
|                | (c)       |            | 10.8 |
|                | (d)       |            | 8.15(c) |
| (Section) 314       | (a)       |            | 8.16 |
|                | (b)       |            | Not Applicable |
|                | (c)(1)    |            | 8.17 |
|                | (c)(2)    |            | 8.17 |
|                | (c)(3)    |            | Not Applicable |
|                | (d)       |            | Not Applicable |
|                | (e)       |            | 1.1, 8.17 |
| (Section) 315       | (a)       |            | 8.1(a), 8.3(a) |
|                | (b)       |            | 8.2, 10.8 |
|                | (c)       |            | 8.1(a) |
|                | (d)       |            | 8.1, 8.3 |
|                | (e)       |            | Not Applicable |
| (Section) 316       | (a)       |            | Not Applicable |
|                | (a)(1)(A) |            | Not Applicable |
|                | (a)(1)(B) |            | Not Applicable |
|                | (a)(2)    |            | Not Applicable |
|                | (b)       |            | 5.14 |
|                | (c)       |            | 6.7 |
| (Section) 317       | (a)(2)    |            | Not Applicable |
|                | (a)(2)    |            | Not Applicable |
|                | (b)       |            | 5.9 |
| (Section) 318       | (a)       |            | 10.10 |

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|                             |                                                                        | Page   |
|----------------------------------|-----------------------------------------------------------------------------|--------|
| ARTICLE I                        |
| DEFINED TERMS                    |
| Section 1.1                      | Definitions.                                                                | 2      |
|                             |                                                                        |   |
| ARTICLE II                       |
| CONTINUATION OF THE ISSUER TRUST |
|                             |                                                                        |   |
| Section 2.1                      | Name.                                                                       | 11     |
| Section 2.2                      | Office of the Delaware Trustee; Principal Place of Business.                | 11     |
| Section 2.3                      | Initial Contribution of Trust Property; Organizational Expenses.            | 11     |
| Section 2.4                      | Issuance of the Capital Securities.                                         | 11     |
| Section 2.5                      | Issuance of the Common Securities; Subscription and Purchase of Debentures. | 11     |
| Section 2.6                      | Declaration of Trust.                                                       | 12     |
| Section 2.7                      | Authorization to Enter into Certain Transactions.                           | 12     |
| Section 2.8                      | Assets of Trust.                                                            | 16     |
| Section 2.9                      | Title to Trust Property.                                                    | 16     |
|                             |                                                                        |   |
| ARTICLE III                      |
| PAYMENT ACCOUNT                  |
|                             |                                                                        |   |
| Section 3.1                      | Payment Account.                                                            | 16     |
|                             |                                                                        |   |
| ARTICLE IV                       |
| DISTRIBUTIONS; REDEMPTION        |
|                             |                                                                        |   |
| Section 4.1                      | Distributions.                                                              | 16     |
| Section 4.2                      | Redemption.                                                                 | 17     |
| Section 4.3                      | Ranking of Trust Securities.                                                | 19     |
| Section 4.4                      | Payment Procedures.                                                         | 20     |
| Section 4.5                      | Tax Returns and Reports.                                                    | 20     |
| Section 4.6                      | Payment of Expenses of the Issuer Trust.                                    | 20     |
| Section 4.7                      | Payment of Taxes, Duties, Etc., of the Issuer Trust.                        | 20     |
| Section 4.8                      | Payments under Indenture or Pursuant to Direct Actions.                     | 21     |
| Section 4.9                      | Exchanges.                                                                  | 21     |
|                             |                                                                        |   |
| ARTICLE V                        |
| TRUST SECURITIES CERTIFICATES    |
|                             |                                                                        |   |
| Section 5.1                      | Initial Ownership.                                                          | 22     |
| Section 5.2                      | The Trust Securities Certificates.                                          | 22     |

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| Section 5.3                       | Execution and Delivery of Trust Securities Certificates.                         | 22       |
|-----------------------------------|----------------------------------------------------------------------------------|----------|
| Section 5.4                       | Registration of Transfer and Exchange of Capital Securities Certificates.        | 22       |
| Section 5.5                       | Mutilated, Destroyed, Lost or Stolen Trust Securities Certificates.              | 25       |
| Section 5.6                       | Persons Deemed Holders.                                                          | 25       |
| Section 5.7                       | Access to List of Holders’ Names and Addresses.                            | 26       |
| Section 5.8                       | Maintenance of Office or Agency.                                                 | 26       |
| Section 5.9                       | Appointment of Paying Agent.                                                     | 26       |
| Section 5.10                      | Ownership of Common Securities by Depositor.                                     | 26       |
| Section 5.11                      | Book-Entry Capital Securities Certificates; Common Securities Certificate.       | 27       |
| Section 5.12                      | Notices to Clearing Agency.                                                      | 27       |
| Section 5.13                      | Definitive Capital Securities Certificates.                                      | 28       |
| Section 5.14                      | Rights of Holders; Waivers of Past Defaults.                                     | 28       |
| Section 5.15                      | CUSIP Numbers.                                                                   | 30       |
|                              |                                                                             |     |
| ARTICLE VI                        |
| ACTS OF HOLDERS; MEETINGS; VOTING |
|                              |                                                                             |     |
| Section 6.1                       | Limitations on Voting Rights.                                                    | 31       |
| Section 6.2                       | Notice of Meetings.                                                              | 32       |
| Section 6.3                       | Meetings of Holders of the Capital Securities.                                   | 32       |
| Section 6.4                       | Voting Rights.                                                                   | 32       |
| Section 6.5                       | Proxies, etc.                                                                    | 33       |
| Section 6.6                       | Holder Action by Written Consent.                                                | 33       |
| Section 6.7                       | Record Date for Voting and Other Purposes.                                       | 33       |
| Section 6.8                       | Acts of Holders.                                                                 | 33       |
| Section 6.9                       | Inspection of Records.                                                           | 34       |
|                              |                                                                             |     |
| ARTICLE VII                       |
| REPRESENTATIONS AND WARRANTIES    |
|                              |                                                                             |     |
| Section 7.1                       | Representations and Warranties of the Property Trustee and the Delaware Trustee. | 34       |
| Section 7.2                       | Representations and Warranties of Depositor.                                     | 36       |
|                              |                                                                             |     |
| ARTICLE VIII                      |
| THE ISSUER TRUSTEES               |
|                              |                                                                             |     |
| Section 8.1                       | Certain Duties and Responsibilities.                                             | 36       |
| Section 8.2                       | Certain Notices.                                                                 | 39       |
| Section 8.3                       | Certain Rights of Property Trustee.                                              | 39       |
| Section 8.4                       | Issuer Trustees Not Responsible for Recitals or Issuance of Securities.          |  41 |
| Section 8.5                       | Issuer Trustees May Hold Securities.                                             | 42       |
| Section 8.6                       | Compensation; Indemnity; Fees.                                                   | 42       |
| Section 8.7                       | Corporate Property Trustee Required; Eligibility of Issuer Trustees.             | 43       |
| Section 8.8                       | Conflicting Interests.                                                           | 43       |

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| Section 8.9                                              | Co-Trustees and Separate Trustee.                                          | 44     |
|----------------------------------------------------------|----------------------------------------------------------------------------|--------|
| Section 8.10                                             | Resignation and Removal; Appointment of Successor.                         | 45     |
| Section 8.11                                             | Acceptance of Appointment by Successor.                                    | 46     |
| Section 8.12                                             | Merger, Conversion, Consolidation or Succession to Business.               | 47     |
| Section 8.13                                             | Preferential Collection of Claims Against Depositor or Issuer Trust.       | 47     |
| Section 8.14                                             | Property Trustee May File Proofs of Claim.                                 | 47     |
| Section 8.15                                             | Reports by Property Trustee.                                               | 48     |
| Section 8.16                                             | Reports to the Property Trustee.                                           | 48     |
| Section 8.17                                             | Evidence of Compliance with Conditions Precedent.                          | 48     |
| Section 8.18                                             | Number of Issuer Trustees.                                                 | 49     |
| Section 8.19                                             | Delegation of Power.                                                       | 49     |
|                                                     |                                                                       |   |
| ARTICLE IX                                               |
| DISSOLUTION, LIQUIDATION AND MERGER                      |
|                                                     |                                                                       |   |
| Section 9.1                                              | Dissolution Events.                                                        | 49     |
| Section 9.2                                              | Dissolution.                                                               | 50     |
| Section 9.3                                              | Liquidation.                                                               | 50     |
| Section 9.4                                              | Mergers, Consolidations, Amalgamations or Replacements of Issuer Trust.    | 52     |
|                                                     |                                                                       |   |
| ARTICLE X                                                |
| MISCELLANEOUS PROVISIONS                                 |
|                                                     |                                                                       |   |
| Section 10.1                                             | Limitation of Rights of Holders.                                           | 52     |
| Section 10.2                                             | Amendment.                                                                 | 53     |
| Section 10.3                                             | Separability.                                                              | 54     |
| Section 10.4                                             | Governing Law.                                                             | 54     |
| Section 10.5                                             | Payments Due on Non-Business Day.                                          | 54     |
| Section 10.6                                             | Successors.                                                                | 54     |
| Section 10.7                                             | Headings.                                                                  | 54     |
| Section 10.8                                             | Reports, Notices and Demands.                                              | 54     |
| Section 10.9                                             | Agreement Not to Petition.                                                 | 55     |
| Section 10.10                                            | Trust Indenture Act; Conflict with Trust Indenture Act.                    | 56     |
| Section 10.11                                            | Acceptance of Terms of Trust Agreement, Guarantee Agreement and Indenture. | 56     |
| Section 10.12                                            | Counterparts.                                                              | 56     |
| Section 10.13                                            | Waiver of Jury Trial.                                                      | 57     |
| Section 10.14                                            | Force Majeure.                                                             | 57     |
| Section 10.15                                            | Agreed Tax Treatment                                                       | 57     |
|                                                     |                                                                       |   |
| Exhibit A – Certificate of Trust                   |                                                                       |
|                                                     |                                                                       |   |
| Exhibit B – Form of Common Securities Certificate  |                                                                       |
|                                                     |                                                                       |   |
| Exhibit C – Form of Capital Securities Certificate |                                                                       |

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|   | FIRST MERCHANTS CORPORATION,          |
|--------|---------------------------------------|
|   |                                  | as Depositor |
|   |                                  |   |   |
|   | By:                                   |   |
|   |                                  | Name: | Mark K. Hardwick |
|   |                                  | Title: | Chief Financial Officer and |
|   |                                  |   | Executive Vice President |
|   |                                  |   |   |
|   | U.S. BANK TRUST NATIONAL ASSOCIATION, |
|   |                                  | as Property Trustee |
|   |                                  |   |   |
|   | By:                                   |   |
|   |                                  | Name: |   |
|   |                                  | Title: |   |

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|   | U.S. BANK TRUST NATIONAL ASSOCIATION,        |
|--------|----------------------------------------------|
|   |                                         | as Delaware Trustee |
|   |                                         |   |   |
|   | By:                                          |   |
|   |                                         | Name: |   |
|   |                                         | Title: |   |
|   |                                         |   |   |
|   |                                         |
|   | Michael C. Rechin, as Administrative Trustee |
|   |                                         |   |   |
|   |                                         |
|   | Mark K. Hardwick, as Administrative Trustee  |
|   |                                         |   |   |
|   |                                         |
|   | Jami L. Bradshaw, as Administrative Trustee  |

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| Certificate Number _____________ | Number of Common Securities   ______________ |
|----------------------------------|-------------------------------------------------------------|

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|   |                              |                                     |
|--------|-----------------------------------|------------------------------------------|
|   | FIRST MERCHANTS CAPITAL TRUST III |
|   |                              |                                     |
|   | By:                               |                                     |
|   |                              | Name:                                    |
|   |                              | Title:  Administrative Trustee |

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| Dated: |   |   |                                  |                 |
|--------|--------|--------|---------------------------------------|----------------------|
|   |   |   |                                  |                 |
|   |   |   | U.S. BANK TRUST NATIONAL ASSOCIATION, |
|   |   |   |                                  | as Property Trustee  |
|   |   |   |                                  |                 |
|   |   |   | By:                                   |                 |
|   |   |   |                                  | Authorized Signatory |

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| Certificate Number __________ | Number of Capital Securities ___________ |
|-------------------------------|------------------------------------------|

|   | FIRST MERCHANTS CAPITAL TRUST III |
|--------|-----------------------------------|
|   |                              |   |
|   | By:                               |   |
|   |                              | Name: |
|   |                              | Title:  Administrative Trustee |

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| Dated: |   |   |                                                      |                 |
|--------|--------|--------|-----------------------------------------------------------|----------------------|
|   |   |   |                                                      |                 |
|   |   |   | U.S. BANK TRUST NATIONAL ASSOCIATION, as Property Trustee |
|   |   |   |                                                      |                 |
|   |   |   | By:                                                       |                 |
|   |   |   |                                                      | Authorized Signatory |

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| Date:  |   |   |                                                                                                                                                                                                                                                                                                                                                |   |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                |   |
|   |   |   | Signature:                                                                                                                                                                                                                                                                                                                                          |   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                |   |
|   |   |   | (Sign exactly as your name appears on the other side of this Capital Security Certificate) The signature(s) should 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 S.E.C. Rule 17Ad-15. |

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