Document:

Exhibit 4.2

 

PROTECTIVE LIFE CORPORATION

to

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

SUPPLEMENTAL INDENTURE NO. 16

Dated as of September 20, 2019

3.400% Senior Notes due 2030

$400,000,000

 

 

PROTECTIVE LIFE CORPORATION

SUPPLEMENTAL INDENTURE NO. 16

$400,000,000

3.400% Senior Notes due 2030

 

SUPPLEMENTAL INDENTURE NO. 16, dated as of September 20, 2019 (this “Supplemental Indenture No. 16”), from PROTECTIVE LIFE CORPORATION, a Delaware corporation (the “Company”), to THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association (as successor to The Bank of New York), as trustee (the “Trustee”).

 

RECITALS

 

WHEREAS, Section 3.1 of the Senior Indenture, dated as of June 1, 1994 (the “Indenture”), between the Company and the Trustee, provides for various matters with respect to any series of Securities issued under the Indenture to be established in an indenture supplemental to the Indenture;

 

WHEREAS, Section 8.1(7) of the Indenture provides for the Company and the Trustee to enter into an indenture supplemental to the Indenture to establish the form or terms of Securities of any series as provided by Sections 2.1 and 3.1 of the Indenture; and

 

WHEREAS, all acts and requirements necessary to make this Supplemental Indenture No. 16 the legal, valid and binding obligation of the Company have been complied with.

 

NOW, THEREFORE, for and in consideration of the premises and the issuance of the series of Securities provided for herein, it is mutually covenanted and agreed as follows for the equal and ratable benefit of the Holders of the Securities of such series:

 

ARTICLE I

RELATION TO INDENTURE; DEFINITIONS

 

Section 1.1.                                 This Supplemental Indenture No. 16 constitutes an integral part of the Indenture.

 

Section 1.2.                                 For all purposes of this Supplemental Indenture No. 16, except as otherwise expressly provided or unless the context otherwise requires:

 

Section 1.2.1.                       capitalized terms used herein without definition shall have the meanings specified in the Indenture;

 

Section 1.2.2.                       the definition of any term in this Supplemental Indenture No. 16 that is also defined in the Indenture shall supersede the definition of such term in the Indenture;

 

Section 1.2.3.                       all references herein to Articles and Sections, unless otherwise specified, refer to the corresponding Articles and Sections of this Supplemental Indenture No. 16;

 

Section 1.2.4.                       the singular includes the plural and vice versa;

 

Section 1.2.5.                       headings are for convenience of reference only and do not affect interpretation; and

 

 

Section 1.2.6.                       the terms “herein,” “hereof,” “hereunder” and other words of similar import refer to this Supplemental Indenture No. 16.

 

ARTICLE II

THE SERIES 2019 NOTES

 

Section 2.1.                                 TITLE OF THE SECURITIES.  There shall be a series of Securities designated the “3.400% Senior Notes due 2030” (the “Series 2019 Notes”).

 

Section 2.2.                                 LIMITATION ON AGGREGATE PRINCIPAL AMOUNT; DATE OF SERIES 2019 NOTES; ADDITIONAL SERIES 2019 NOTES.  The aggregate principal amount of the Series 2019 Notes shall be limited initially to $400,000,000 (the “Initial Series 2019 Notes”).  The Company may from time to time, without the consent of the Holders of the Series 2019 Notes, issue additional Series 2019 Notes (the “Additional Notes”) under this Supplemental Indenture No. 16 having the same terms (except for the issue date, the offering price and, if applicable, the first interest payment date) and ranking equally and ratably with the Initial Series 2019 Notes. Any Additional Notes and the Initial Series 2019 Notes shall constitute a single series for all purposes under this Supplemental Indenture No. 16 and the Indenture; provided, that if any Additional Notes are not fungible with the Initial Series 2019 Notes for U.S. federal income tax purposes, such Additional Notes shall not have the same CUSIP or ISIN numbers. Each Series 2019 Note shall be dated the date of its authentication.

 

Section 2.3.                                 PRINCIPAL PAYMENT DATES.  The principal on the Series 2019 Notes Outstanding (together with any accrued and unpaid interest thereon) shall be payable in a single installment on January 15, 2030.

 

Section 2.4.                                 INTEREST AND INTEREST RATES.  The rate of interest on each Series 2019 Note shall be 3.400% per annum, accruing from September 20, 2019 or from the most recent Interest Payment Date (as defined below) to which interest on such Series 2019 Note has been paid or duly provided for.  Interest shall be payable in arrears on each Series 2019 Note semi-annually on January 15 and July 15 of each year (each an “Interest Payment Date”), commencing on July 15, 2020.  The interest so payable on any Series 2019 Note which is punctually paid or duly provided for on any Interest Payment Date shall be paid to the Person in whose name such Series 2019 Note is registered at the close of business on the January 1 or July 1, as the case may be, preceding such January 15 or July 15, whether or not a Business Day (each a “Regular Record Date”).  The interest so payable on a Series 2019 Note which is not punctually paid or duly provided for on any Interest Payment Date shall forthwith cease to be payable to the Person in whose name such Series 2019 Note is registered on the relevant Regular Record Date, and such defaulted interest shall instead be payable to the Person in whose name such Series 2019 Note is registered on the Special Record Date or other specified date determined in accordance with the Indenture.

 

Section 2.5.                                 ADDITIONAL COVENANTS.  For the benefit of the Holders from time to time of the Series 2019 Notes and in addition to the covenants set forth in Article 9 of the Indenture, the Company further covenants and agrees as follows:

 

Section 2.5.1.                       Limitations on Disposition of Capital Stock of Restricted Subsidiaries.  The Company will not, and will not permit any Subsidiary to, sell, assign, transfer or otherwise dispose of any shares of the capital stock of any Restricted Subsidiary unless the entire capital stock of such Restricted Subsidiary at the time owned directly or indirectly by the Company and its Subsidiaries shall be disposed of at the same time for a consideration consisting of cash or other property which the Board of Directors, as evidenced in a Board

 

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Resolution, has determined to be at least equal to the fair value thereof.  Notwithstanding the foregoing provision, (a) the Company shall be permitted to sell, assign, transfer or otherwise dispose of shares of the capital stock of a Restricted Subsidiary (i) to any director (or any individual nominated to become a director) of such Restricted Subsidiary but only to the extent ownership of such shares is required as directors’ qualifying shares for such director or individual and (ii) to any Subsidiary; and (b) any Restricted Subsidiary shall be permitted to sell, assign, transfer or otherwise dispose of shares of its capital stock or the capital stock of any other Restricted Subsidiary (i) to any director (or any individual nominated to become a director) of such Restricted Subsidiary but only to the extent ownership of such shares is required as directors’ qualifying shares for such director or individual, or (ii) to the Company or any Subsidiary.

 

Section 2.5.2.                       Limitations upon Creation of Liens on Capital Stock of Restricted Subsidiaries.

 

(a)                                 The Company will not, and will not permit any Restricted Subsidiary to, at any time directly or indirectly, issue, assume, guarantee or permit to exist any indebtedness secured by a Lien on the capital stock of any Restricted Subsidiary without making effective provision whereby the Series 2019 Notes then outstanding (and if the Company so elects, any other indebtedness ranking on a parity with the Series 2019 Notes) shall be equally and ratably secured with such indebtedness as to such property so long as such other indebtedness shall be so secured; provided, however, that the covenant set forth in this Section 2.5.2. will not be applicable to Liens (i) on the shares of stock of a subsidiary of a Person that is merged with or into the Company or a Subsidiary securing debt of such Person, which debt was outstanding prior to such merger, but only if such pledge and debt were not incurred in anticipation of such merger, (ii) in favor of the Company securing debt of a Restricted Subsidiary owed to the Company, (iii) for taxes or assessments or governmental charges or levies not then due and delinquent or the validity of which are being contested in good faith or which are less than $30,000,000, or (iv) created by or resulting from any litigation or legal proceeding being contested in good faith or which are less than $30,000,000.

 

(b)                                 If the Company shall hereafter be required to secure the Series 2019 Notes equally and ratably with any other indebtedness pursuant to this Section 2.5.2., (i) the Company will promptly deliver to the Trustee an Officers’ Certificate stating that the foregoing covenant has been complied with and an Opinion of Counsel stating that in the opinion of such counsel the foregoing covenant has been complied with and that any instruments executed by the Company or any Restricted Subsidiary in the performance of the foregoing covenant comply with the requirements of the foregoing covenant and (ii) the Trustee is hereby authorized to enter into an indenture or agreement supplemental hereto and to take such action (including, but not limited to, the execution of any security documents), if any, as shall be necessary to equally and ratably secure the Series 2019 Notes with such other indebtedness.

 

Section 2.5.3.                       For purposes of this Section 2.5., “Restricted Subsidiary” shall mean any Subsidiary of the Company with assets greater than or equal to 20% of all assets of the Company and its Subsidiaries, computed and consolidated in accordance with generally accepted accounting principles.

 

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Section 2.5.4.                       For purposes of this Section 2.5., “Lien” shall mean any mortgage, pledge, lien, charge, security interest, conditional sale or other title retention agreement or other encumbrance of any nature whatsoever.

 

Section 2.6.                                 MODIFICATION OF EVENTS OF DEFAULT.

 

Section 2.6.1.                       For the benefit of the Holders from time to time of the Series 2019 Notes, clause 4 of Section 5.1 of the Indenture is hereby modified by deleting such clause 4 of Section 5.1 in its entirety and replacing it with the following:

 

A default under any mortgage, agreement, indenture or instrument under which there may be issued, or by which there may be secured, guaranteed or evidenced any Debt of the Company (including this Indenture) whether such Debt now exists or shall hereafter be created, in an aggregate principal amount then outstanding of $25,000,000 or more, which default (a) shall constitute a failure to pay any portion of the principal of such Debt when due and payable or (b) shall result in such Debt becoming or being declared due and payable prior to the date on which it would otherwise become due and payable, and such acceleration shall not be rescinded or annulled, or such Debt shall not be paid in full, within a period of 30 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Securities of the Series 2019 Notes, a written notice specifying such event of default and requiring the Company to cause such acceleration to be rescinded or annulled or to pay in full such Debt and stating that such notice is a “Notice of Default” hereunder; (it being understood, however, that the Trustee shall not be deemed to have knowledge of such default under such agreement or instrument unless a Responsible Officer of the Trustee shall have received written notice thereof from the Company, from any Holder, from the holder of any such indebtedness or from the trustee under any such agreement or other instrument); provided, however, that if such default under such mortgage, agreement, indenture or instrument is remedied or cured by the Company or waived by the holders of such indebtedness, then the Event of Default hereunder by reason thereof shall be deemed likewise to have been thereupon remedied, cured or waived without further action upon the part of either the Trustee or any of such Holders; provided, further, that the foregoing shall not apply to any secured Debt under which the obligee has recourse (exclusive of recourse for ancillary matters such as environmental indemnities, misapplication of funds, costs of enforcement and the like) only to the collateral pledged for repayment so long as the fair market value of such collateral does not exceed 2% of Total Assets at the time of the “default.”

 

Section 2.6.2.                       For the benefit of the Holders from time to time of the Series 2019 Notes, the first paragraph of Section 5.2 of the Indenture is hereby modified by deleting such first paragraph of Section 5.2 in its entirety and replacing it with the following:

 

If an Event of Default (other than an Event of Default specified in Sections 5.1(5) or 5.1(6)) with respect to the Series 2019 Notes Outstanding occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of all of the Outstanding Series 2019 Notes, by written notice to the Company (and, if given by the Holders, to the Trustee), may declare the principal of and accrued interest, if any, on all the Series 2019 Notes to be due and payable and upon any such declaration such principal and interest, if any, shall be immediately due and payable. If an Event of Default specified in Sections 5.1(5) or 5.1(6) with respect to Series 2019 Notes Outstanding occurs, the principal amount of all the Series

 

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2019 Notes shall automatically, and without any declaration or other action on the part of the Trustee or any holder, become immediately due and payable.

 

Section 2.7.                                 REDEMPTION AT THE OPTION OF THE COMPANY.

 

Section 2.7.1.                       Redemption Right at Company’s Option.  The Company has the right to redeem the Series 2019 Notes, prior to maturity, in whole at any time or in part from time to time, at its sole option, subject to the terms and conditions set forth in this Section 2.7.

 

Section 2.7.2.                       Redemption Price.

 

(a)                                 In the event that the Series 2019 Notes are redeemed on or after the Par Call Date (as defined below), the Series 2019 Notes to be redeemed shall be redeemed at a redemption price equal to 100% of the principal amount of the Series 2019 Notes to be redeemed, together with accrued but unpaid interest thereon, if any, to, but excluding, the date of redemption.  In the event that the Series 2019 Notes are redeemed prior to the Par Call Date, the Series 2019 Notes to be redeemed shall be redeemed at a redemption price, together with accrued but unpaid interest, if any, on the principal amount to be redeemed to, but excluding, the date of redemption, equal to the greater of (i) 100% of the principal amount of the Series 2019 Notes to be redeemed on such redemption date and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Series 2019 Notes to be redeemed that would be due if the Series 2019 Notes matured on the Par Call Date (not including any portion of such payments of interest accrued to the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) calculated by the Calculation Agent as of the third Business Day immediately preceding the applicable redemption date (the “Calculation Date”), plus 25 basis points.  The Company shall give the Trustee notice of the amount of the applicable redemption price (the “Redemption Price”) promptly after the calculation thereof, and the Trustee shall have no responsibility for such calculation.

 

(b)                                 “Calculation Agent” means one of the Reference Treasury Dealers (as defined below) appointed by the Company, or if that firm is unwilling or unable to select the Comparable Treasury Issue, an investment banking institution of national standing appointed by the Company.

 

(c)                                  “Comparable Treasury Issue” means the U.S. Treasury security selected by the Calculation Agent as having an actual or interpolated maturity comparable to the remaining term of the Series 2019 Notes to be redeemed (assuming, for this purpose, that the Series 2019 Notes matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Series 2019 Notes.

 

(d)                                 “Comparable Treasury Price” means, with respect to any Calculation Date, (1) the average of five Reference Treasury Dealer Quotations (as defined below) for such Calculation Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Calculation Agent obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.

 

(e)                                  “Par Call Date” means October 15, 2029.

 

(f)                                   “Reference Treasury Dealer” means each of (i) Barclays Capital Inc. and Morgan Stanley & Co. LLC and their respective affiliates and successors and (ii) three

 

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Primary Treasury Dealers selected by the Company, and their respective affiliates and successors; provided that, if any of the foregoing ceases to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall substitute another Primary Treasury Dealer.

 

(g)                                  “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer (as defined below) and any Calculation Date, the average, as determined by the Calculation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Calculation Agent at 3:30 p.m., New York City time, on the Calculation Date.

 

(h)                                 “Treasury Rate” means, with respect to any Calculation Date, the rate per annum equal to the semiannual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Calculation Date.

 

Section 2.7.3.                       Notice to Trustee.  If the Company wishes to redeem Series 2019 Notes pursuant to the terms hereof and of the Series 2019 Notes, it shall notify the Trustee of the redemption date and the principal amount of Series 2019 Notes to be redeemed.  The Company shall give the notice provided for in this Section not less than 45 nor more than 60 days prior to the redemption date.

 

Section 2.7.4.                       Selection of Series 2019 Notes to be Redeemed.  If less than all the Series 2019 Notes are to be redeemed, the Series 2019 Notes to be redeemed shall be selected in accordance with the procedures of The Depository Trust Company (“DTC”), provided that, in the case of Series 2019 Notes in definitive form, the Series 2019 Notes to be redeemed will be selected by lot, pro rata or by any other method the Trustee shall deem fair and reasonable.  The Series 2019 Notes to be redeemed shall be selected not more than 60 days before the redemption date from Series 2019 Notes then outstanding that have not been previously called for redemption.  The Trustee shall notify the Company in writing of the Series 2019 Notes that have been selected for redemption and, in the case of any Series 2019 Note selected for partial purchase or redemption, the principal amount thereof to be purchased or redeemed.  Series 2019 Notes and portions of Series 2019 Notes selected for redemption shall be in amounts of $2,000 or integral multiples of $1,000 above that amount.  Provisions of this Indenture that apply to Series 2019 Notes called for redemption also apply to portions of Series 2019 Notes called for redemption.

 

Section 2.7.5.                       Notice of Redemption.  At least 30 days but not more than 60 days before a redemption date, the Company shall mail or cause to be mailed, by first class mail, or otherwise deliver, a notice of redemption to each Holder whose Series 2019 Notes are to be redeemed at its registered address.

 

(a)                                 The notice shall identify the Series 2019 Notes to be redeemed and shall state:

 

(i)                                     the redemption date;

 

(ii)                                  the methodology for determination of the Redemption Price;

 

(iii)                               if any Series 2019 Note is being redeemed in part, the portion of the principal amount of such Series 2019 Note to be redeemed;

 

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(iv)                              the name and address of the Paying Agent;

 

(v)                                 that the Series 2019 Notes called for redemption must be surrendered to the Paying Agent to collect the Redemption Price;

 

(vi)                              that, unless the Company defaults in making such redemption payment, interest on Series 2019 Notes called for redemption ceases to accrue on and after the redemption date; and

 

(vii)                           that no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Series 2019 Notes.

 

(b)                                 At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at its expense; provided, however, that the Company shall have delivered to the Trustee, at least 45 days prior to the redemption date (unless a shorter period shall be acceptable to the Trustee), an Officers’ Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice as provided in the preceding paragraph (which request may be revoked by so notifying the Trustee in writing on or before the Business Day immediately preceding the date requested for the mailing of such notice).

 

Section 2.7.6.                       Effect of Notice of Redemption.  Once notice of redemption is mailed in accordance with the provisions hereof, Series 2019 Notes called for redemption become irrevocably due and payable on the redemption date at the Redemption Price.  A notice of redemption may not be conditional.

 

Section 2.7.7.                       Deposit of Redemption Price.

 

(a)                                 One Business Day prior to the redemption date, the Company shall deposit with the Trustee or with the Paying Agent money sufficient to pay the Redemption Price of, and accrued interest, if any, on all Series 2019 Notes to be redeemed on that date.  The Trustee or the Paying Agent shall promptly return to the Company any money deposited with the Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the redemption price of, and accrued interest on, all Series 2019 Notes to be redeemed.

 

(b)                                 If the Company complies with the provisions of the preceding paragraph, on and after the redemption date, interest shall cease to accrue on the Series 2019 Notes or the portions of Series 2019 Notes called for redemption.  If a Series 2019 Note is redeemed on or after an interest record date but on or prior to the related interest payment date, then any accrued and unpaid interest shall be paid to the Person in whose name such Series 2019 Note was registered at the close of business on such record date.  If any Series 2019 Notes called for redemption shall not be so paid upon surrender for redemption because of the failure of the Company to comply with the preceding paragraph, interest shall be paid on the unpaid principal, from the redemption date until such principal is paid, and to the extent lawful on any interest not paid on such unpaid principal, in each case at the rate provided in the Series 2019 Notes and in Section 2.4. hereof.

 

Section 2.7.8.                       Series 2019 Notes Redeemed in Part.  Upon surrender of a Series 2019 Note that is redeemed in part, the Company shall issue and, upon the Company’s written request, the Trustee shall authenticate for the Holder at the expense of the Company, a new Series 2019 Note equal in principal amount to the unredeemed portion of the Series 2019 Notes surrendered; provided, however, that so long as the Series 2019 Notes are issued in the form of Global Securities as provided in Section 2.10. hereof, then, in lieu of surrendering

 

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the Series 2019 Note being redeemed in part, the principal amount of the applicable global Series 2019 Note shall be reduced by the amount of the principal, or portion thereof, so redeemed and an endorsement shall be made on such Series 2019 Note by the Trustee to reflect such reduction.

 

Section 2.8.                                 DENOMINATION.  The Series 2019 Notes shall be issuable in denominations of $2,000 and in integral multiples of $1,000 above that amount.

 

Section 2.9.                                 CURRENCY.  Principal and interest on the Series 2019 Notes shall be payable in U.S. Dollars.

 

Section 2.10.                          FORM.

 

Section 2.10.1.   The Series 2019 Notes shall be substantially in the form of Exhibit A attached hereto, which shall include the Private Placement Legend set forth below (the “Private Placement Legend”) on the face thereof until the Series 2019 Notes are no longer outstanding, and shall be issued in fully registered definitive form without interest coupons.

 

THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITY LAWS OF ANY STATE OR OTHER JURISDICTION AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD, ASSIGNED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THE SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO A PERSON WHO IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) BUYING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (3) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, INCLUDING RULE 144 IF AVAILABLE (AND BASED UPON AN OPINION OF COUNSEL, IF THE COMPANY SO REQUESTS), (4) TO THE COMPANY OR (5) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE SECURITY EVIDENCED HEREBY. [IN THE CASE OF REGULATION S SERIES 2019 NOTES: BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S.

 

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PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S.]

 

[IN THE CASE OF GLOBAL SECURITIES: THE SECURITY EVIDENCED HEREBY IS IN GLOBAL FORM WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY.  UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN CERTIFICATED FORM IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, THE SECURITY EVIDENCED HEREBY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

 

Section 2.10.2.

 

(a)                                 Principal of and interest on the Series 2019 Notes issued in definitive form will be payable, the transfer of such Series 2019 Notes will be registrable and such Series 2019 Notes will be exchangeable for Series 2019 Notes bearing identical terms and provisions and notices and demands to or upon the Company in respect of the Series 2019 Notes and the Indenture may be served at the Corporate Trust Office of the Trustee, and the Company appoints the Trustee as its agent for the foregoing purposes, provided that payment of interest may be made at the option of the Company by check mailed to the Holders at such address as shall appear in the Register or by wire transfer in immediately available funds to the bank account number of the Holders specified in writing by the Holders not less than 10 days before the relevant Interest Payment Date and entered in the Register by the Registrar.  The Series 2019 Notes may be presented for registration of transfer or exchange at the Place of Payment.  The Series 2019 Notes are initially solely issuable as Global Securities.  The Depository Trust Company is hereby designated as depositary (the “Depositary”).  In addition, beneficial interests in the Global Securities may be exchanged for definitive certificated Series 2019 Notes upon request by or on behalf of the Depositary in accordance with customary procedures if (i) the Depositary notifies the Company that it is unwilling or unable to continue to act as Depositary for the Global Securities or if at any time the Depositary shall no longer be eligible to act as such because it ceases to be a clearing agency registered under the Exchange Act, and, in either case, a successor depositary or clearing system is not appointed within 90 days of this notice or cessation or (ii) upon written request of a Holder or the Trustee upon the occurrence and

 

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continuation of an Event of Default.  If the Company determines at any time that the Series 2019 Notes shall no longer be represented by a Global Security, the Company shall inform the Depositary of such determination which will, in turn, notify participants of their right to withdraw their beneficial interest from the Global Security.  If such participants then elect to withdraw their beneficial interests, the Company shall issue certificates in definitive form in exchange for such beneficial interests in the Global Security.  Any Global Security, or portion thereof, that is exchangeable pursuant to this Section 2.10 shall be exchangeable for Series 2019 Note certificates registered in the names directed by the Depositary.

 

(b)                                 “Global Security” means a Security in the form prescribed in this Section 2.10 and Exhibit A hereto evidencing all or part of the Series 2019 Notes registered in the name of the Depositary or its nominee for such series.

 

Section 2.11.                          RESTRICTIONS ON TRANSFER.

 

Section 2.11.1.     The Series 2019 Notes will not be registered under the Securities Act and may only be transferred in reliance on Rule 144A under the Securities Act (“Rule 144A”) or Regulation S under the Securities Act (“Regulation S”) or another exemption from the registration requirements under the Securities Act. Each purchaser of the Series 2019 Notes (including the registered holders and beneficial owners of Series 2019 Notes as they exist from time to time, including as a result of transfers) will be deemed to have represented and agreed as follows:

 

(a)                                 the Series 2019 Notes may be offered, resold, pledged or otherwise transferred only (i) to a person who it reasonably believes is a “qualified institutional buyer,” as defined in Rule 144A (“QIB”) buying for its own account or the account of a QIB in a transaction meeting the requirements of Rule 144A, (ii) outside the United States to a Non-U.S. Person in a transaction meeting the requirements of Rule 904 of Regulation S, (iii) in accordance with another exemption from the registration requirements of the Securities Act, including Rule 144 if available (and based upon an opinion of counsel, if the Company so requests), (iv) to the Company or (v) pursuant to an effective registration statement and, in each case, in accordance with any applicable securities laws of any state of the United States or any other applicable jurisdiction; and

 

(b)                                 the holder will, and each subsequent holder is required to, notify any purchaser of the Series 2019 Notes of the resale restrictions set forth in clause (a) above.

 

Section 2.11.2.     Any Series 2019 Notes originally offered and sold to QIBs in reliance on Rule 144A will be issued in the form of one or more permanent Global Securities substantially in the form of Exhibit A attached hereto (each, a “Rule 144A Global Security”).  Each Rule 144A Global Security will be deposited with or on behalf of, and registered in the name of, the Depositary or its nominee, and will be issued in an initial denomination equal to the outstanding principal amount of the Series 2019 Notes initially sold in reliance on Rule 144A.

 

Section 2.11.3.     Any Series 2019 Notes originally offered and sold outside the United States in reliance on Regulation S will be issued in the form of one or more permanent Global Securities substantially in the form of Exhibit A attached hereto (each, a “Regulation S Global Security”).  Each Regulation S Global Security will be deposited with or on behalf of, and registered in the name of, the Depositary or its nominee, and will

 

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be issued in an initial denomination equal to the outstanding principal amount of the Series 2019 Notes initially sold in reliance on Regulation S.

 

Section 2.11.4.                The transfer and exchange of beneficial interests in Global Securities will be effected through the Depositary in accordance with the provisions of this Supplemental Indenture No. 16 and the rules and procedures of the Depositary. Beneficial interests in any Global Security will be subject to restrictions on transfer to the extent required by applicable law, including the Securities Act, applicable securities laws of any state of the United States or any other jurisdiction. Transfers of beneficial interests in Global Securities that are Restricted Securities also will require compliance with either subparagraph (a) or (b) below:

 

(a)                                 Beneficial interests in any Global Security that is a Restricted Security may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Global Security in accordance with the transfer restrictions set forth in the Private Placement Legend.  No written orders or instructions shall be required to be delivered to the Registrar to effect the transfers described in this Section 2.11.4(a).

 

(b)                                 Other transfers and exchanges of beneficial interests in Restricted Securities:

 

(i)                                     If the owner of a beneficial interest in a Rule 144A Global Security that is a Restricted Security wishes to transfer such interest (or a portion thereof) to a Non-U.S. Person pursuant to Regulations S, then upon receipt by the Trustee of (A) instructions from the Holder of the Rule 144A Global Security directing the Trustee to credit or cause to be credited a beneficial interest in the Regulation S Global Security equal to the principal amount of the beneficial interest in the Rule 144A Global Security to be transferred and (B) a certificate from the transferor in the form of Exhibit B attached hereto, including the certifications in item (2) thereof, the Trustee shall, subject to the rules and procedures of the Depositary, instruct the Depositary to increase the Regulation S Global Security and decrease the Rule 144A Global Security by the amount so transferred.

 

(ii)                                  If the owner of a beneficial interest in a Regulation S Global Security that is a Restricted Security wishes to transfer such interest (or a portion thereof) to a QIB pursuant to Rule 144A, then upon receipt by the Trustee of (A) instructions from the Holder of the Regulation S Global Security directing the Trustee to credit or cause to be credited a beneficial interest in the Rule 144A Global Security equal to the principal amount of the beneficial interest in the Regulation S Global Security to be transferred and (B) a certificate from the transferor in the form of Exhibit B attached hereto, including the certifications in item (1) thereof, the Trustee shall, subject to the rules and procedures of the Depositary, instruct the Depositary to increase the Rule 144A Global Security and decrease the Regulation S Global Security by the amount so transferred.

 

(iii)                               Any transfer of Restricted Securities not described under subsections (i) or (ii) above, shall be made only upon receipt by the Trustee of such opinions of counsel, certificates and/or other information required by and reasonably satisfactory to it and the Company in order to ensure compliance with the Securities Act or in accordance with Section 2.11.5, including a certificate from the transferor in the form of Exhibit B attached hereto, including the certifications in item (3) thereof.

 

11

 

(c)                                  “Restricted Security” means any Security (or beneficial interest therein) not originally issued and sold in a transaction registered under the Securities Act, until such time as: (i) such Security (or beneficial interest therein) has been transferred in a transaction registered under the Securities Act; (ii) the Resale Restriction Termination Date therefor has passed; or (iii) the Private Placement Legend therefor has otherwise been removed pursuant to Section 2.11.5. hereof or, in the case of a beneficial interest in a Global Security, such beneficial interest has been exchanged for an interest in a Global Security not bearing a Private Placement Legend.

 

(d)                                 “Resale Restriction Termination Date” means (i) with respect to any Rule 144A Global Security, the date that is one year (or such other period as may hereafter be provided under Rule 144 under the Securities Act or any successor provision thereto as permitting the resale by non-affiliates of Restricted Securities (as defined in Rule 144(a)(3) under the Securities Act) without restriction) after the later of the original issue date in respect of such Security and the last date on which the Company or any Affiliate of the Company was the owner of such Security (or any Predecessor Security thereto) or (ii) with respect to any Regulation S Global Security, the last day of the distribution compliance period specified in Rule 903 of Regulation S (if applicable).

 

Section 2.11.5.                Upon the transfer, exchange or replacement of Securities not bearing the Private Placement Legend, the Registrar shall deliver Securities that do not bear the Private Placement Legend. Upon the transfer, exchange or replacement of any Security bearing a  Private Placement Legend, the Trustee shall deliver only a Security that bears a Private Placement Legend unless:

 

(a)                                 such Security (or beneficial interest) is transferred pursuant to an effective registration statement;

 

(b)                                 such Security (or beneficial interest) is transferred, replaced or exchanged after the Resale Restriction Termination Date therefor; or

 

(c)                                  in connection with such transfer, exchange or replacement, the Trustee shall have received an opinion of counsel and other evidence reasonably satisfactory to it and the Company to the effect that neither such Private Placement Legend nor the related restrictions on transfer are required in order to maintain compliance with the Securities Act.

 

Section 2.12.                          DEFEASANCE AND COVENANT DEFEASANCE.  The provisions of Section 4.4 of the Indenture shall apply to the Series 2019 Notes.  The provisions of Section 4.5 of the Indenture shall apply to the Series 2019 Notes with respect to the covenants specified in said Section 4.5 and the covenants set forth in Section 2.5. of this Supplemental Indenture No. 16.

 

Section 2.13.                          REGISTRAR AND PAYING AGENT.  The Trustee shall initially serve as Registrar and Paying Agent.

 

Section 2.14.                          EXECUTION OF THE SERIES 2019 NOTES.  Within Section 3.3 of the Indenture, the sentence “The Company’s seal shall be reproduced on the Securities.” will be struck in its entirety. No other provisions in Section 3.3 will be modified in any way and will remain in full force and effect. This amendment to Section 3.3 of the Indenture shall apply only to these Series 2019 Notes.

 

12

 

ARTICLE 3

MISCELLANEOUS PROVISIONS

 

Section 3.1.                                 The Indenture, as supplemented and amended by this Supplemental Indenture No. 16, is in all respects hereby adopted, ratified and confirmed, and this Supplemental Indenture No. 16 shall be deemed part of the Indenture in the manner and to the extent herein and therein provided.  In the event of any conflict between this Supplemental Indenture No. 16 and the Indenture or the provisions set forth in the Series 2019 Notes, as the case may be, this Supplemental Indenture No. 16 shall control.

 

Section 3.2.                                 This Supplemental Indenture No. 16 may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.

 

Section 3.3.                                 The Recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture No. 16 or of the Series 2019 Notes.  The Trustee shall not be accountable for the use or application by the Company of the Series 2019 Notes or the proceeds thereof.

 

Section 3.4.                                 None of the Company’s supplemental indentures to the Indenture entered into prior to the date hereof applies to the Series 2019 Notes.  To the extent the terms of the Indenture are amended by any of such other supplemental indenture, no such amendment shall relate or apply to the Series 2019 Notes.  To the extent the terms of the Indenture are amended as provided herein, no such amendment shall in any way affect the terms of any such other supplemental indenture or any other series of Securities.  This Supplemental Indenture No. 16 shall relate and apply solely to the Series 2019 Notes.

 

Section 3.5.                                 In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

SECTION 3.6.                  THIS SUPPLEMENTAL INDENTURE NO. 16 AND EACH SERIES 2019 NOTE SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

 

Section 3.7.                                 The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Supplemental Indenture No. 16 at the request or direction of any of the Holders pursuant to this Supplemental Indenture No. 16, unless such Holders shall have offered to the Trustee security or indemnity reasonably satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

 

Section 3.8.                                 In no event shall the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

 

13

 

Section 3.9.                                 The Trustee shall not be deemed to have notice of any Default or Event of Default unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Supplemental Indenture No. 16.

 

Section 3.10.                          The rights, privileges, protections, immunities and benefits given to the Trustee, including without limitation its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder.

 

Section 3.11.                          EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THE INDENTURE, THIS SUPPLEMENTAL INDENTURE NO. 16, THE SERIES 2019 NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

 

Section 3.12.                          So long as the Company is not subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company will prepare and will furnish to any Holder of Securities, any beneficial owner of an interest in a Global Security and any prospective purchaser or other prospective transferee of Securities designated by a Holder of Series 2019 Notes or a beneficial owner of an interest in a Global Security, promptly upon request and at the expense of the Company, the financial statements and other information specified in Rule 144A(d)(4) (or any successor provision thereto) under the Securities Act, in each case to the extent necessary to permit the resale or other transfer of Series 2019 Notes by such Holder or beneficial owner to be made in compliance with Rule 144A.  Delivery or possession of such reports, information and documents to or by the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute actual or constructive notice or knowledge of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates).

 

Section 3.13.                          In case any provision in this Supplemental Indenture No. 16, the Indenture as supplemented hereby or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 3.14.                          The Company hereby irrevocably submits to the jurisdiction of any New York State court sitting in the Borough of Manhattan in The City of New York or any federal court sitting in the Borough of Manhattan in The City of New York in respect of any suit, action or proceeding arising out of or relating to this Indenture and the Series 2019 Notes, and irrevocably accepts for itself and in respect of its property, generally and unconditionally, jurisdiction of the aforesaid courts.

 

14

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 16 to be duly executed, as of the day and year first written above.

 

	
 
    	
PROTECTIVE   LIFE CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lance P. Black
    
	
 
    	
Name:
    	
Lance   P. Black
    
	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Steven G. Walker
    
	
 
    	
Name:
    	
Steven   G. Walker
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

	
Attest:
    	
/s/   Mark L. Drew
    	
 
    
	
Name:
    	
Mark   L. Drew
    	
 
    
	
Title:
    	
Executive   Vice President, General Counsel and Secretary
    	
 
    

 

[Signature Page to Supplemental Indenture No. 16]

 

 

	
 
    	
THE BANK OF NEW YORK   MELLON TRUST COMPANY, N.A., as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Karen Yu
    
	
 
    	
Name:
    	
Karen   Yu
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page to Supplemental Indenture No. 16]

 

 

EXHIBIT A TO

SUPPLEMENTAL INDENTURE NO. 16

 

(FORM OF FACE OF SENIOR NOTE DUE 2030)

 

THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITY LAWS OF ANY STATE OR OTHER JURISDICTION AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD, ASSIGNED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THE SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO A PERSON WHO IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) BUYING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (3) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, INCLUDING RULE 144 IF AVAILABLE (AND BASED UPON AN OPINION OF COUNSEL, IF THE COMPANY SO REQUESTS), (4) TO THE COMPANY OR (5) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE SECURITY EVIDENCED HEREBY. [IN THE CASE OF REGULATION S SERIES 2019 NOTES: BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S.]

 

[THE SECURITY EVIDENCED HEREBY IS IN GLOBAL FORM WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY.  UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN CERTIFICATED FORM IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, THE SECURITY EVIDENCED HEREBY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME

 

A-1

 

AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.](1)

 

(1)  Insert in Global Securities.

 

A-2

 

PROTECTIVE LIFE CORPORATION

3.400% Senior Note due 2030

 

	
No. 1
    	
Principal Amount: $
    

 

	
CUSIP No:
    
	
ISIN No:
    

 

Protective Life Corporation, a corporation duly organized and existing under the laws of the State of Delaware (herein called the “Company,” which term includes any successor corporation under the Indenture (as defined on the reverse hereof), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of $      (      and No/100 Dollars), or such other amount as indicated on the Schedule of Redemptions attached hereto, on January 15, 2030, and to pay interest thereon from September 20, 2019, or from the most recent Interest Payment Date to which interest has been paid or duly provided for.  Interest shall be payable on the Company’s 3.400% Senior Note due 2030 (“Series 2019 Note”) semi-annually in arrears on January 15 and July 15 of each year (each an “Interest Payment Date”), commencing on July 15, 2020 at the rate of 3.400% per annum, until the principal hereof is paid or made available for payment; PROVIDED, that any such installment of interest which is overdue shall bear interest at the rate of 3.400% per annum (to the extent that the payment of such interest shall be legally enforceable) from the dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on demand.  The amount of interest payable on any Interest Payment Date shall be computed on the basis of twelve 30-day months and a 360-day year and, for any period that is shorter than a full calendar month, will be calculated on the basis of the actual number of days elapsed in such period.  In the event that any date on which interest is payable on this Series 2019 Note is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day which is a Business Day (and without any interest or other payment in respect to any such delay), except that, if such Business Day is in the next succeeding calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on such date.  The interest so payable on any Interest Payment Date which is punctually paid or duly provided for on any Interest Payment Date will, as provided in the Indenture referred to on the reverse hereof, be paid to the Person in whose name this Series 2019 Note is registered at the close of business on the Regular Record Date for such Interest Payment Date, which shall be the January 1 or July 1, as the case may be, preceding such Interest Payment Date.  Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Person in whose name this Series 2019 Note is registered on the relevant Regular Record Date, and such defaulted interest shall instead be payable to the Person in whose name this Series 2019 Note is registered on the Special Record Date or other specified date determined in accordance with the Indenture and Supplemental Indenture No. 16, referred to on the reverse hereof.

 

Payment of the principal of and interest on this Series 2019 Note will be made at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York (which shall initially be the Corporate Trust Office of the Trustee), in same day funds by wire transfer to an account maintained by the Person entitled thereto as specified in the Register

 

A-3

 

of Holders of the Series 2019 Notes, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

Reference is hereby made to the further provisions of this Series 2019 Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Series 2019 Note shall not be entitled to any benefit under the Indenture and Supplemental Indenture No. 16 referred to on the reverse hereof or be valid or obligatory for any purpose.

 

A-4

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

	
Dated: September 20, 2019
    	
 
    
	
 
    	
 
    
	
 
    	
PROTECTIVE LIFE CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

This is one of the Securities of the series described in the within-mentioned Indenture.

 

Dated: September 20, 2019

 

	
 
    	
THE BANK OF NEW YORK MELLON TRUST   COMPANY, N.A., as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    

 

A-5

 

(FORM OF REVERSE OF SERIES 2019 NOTE)

 

This Series 2019 Note is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under a Senior Indenture, dated as of June 1, 1994 (herein, together with all indentures supplemental thereto, including Supplemental Indenture No. 16, dated as of September 20, 2019, called the “Indenture”), from the Company to The Bank of New York Mellon Trust Company, N.A. (herein called the “Trustee,” which term includes any successor or replacement trustee under the Indenture), to which Indenture reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered.  This Security is one of the series designated on the face hereof, limited initially to an aggregate principal amount of $400,000,000, and is issued pursuant to Supplemental Indenture No. 16, dated as of September 20, 2019 from the Company to the Trustee, relating to the securities of this series (herein called “Supplemental Indenture No. 16”) and the Indenture.  Notwithstanding the foregoing, the Company may from time to time, without the consent of the holders of the Series 2019 Notes, issue additional Series 2019 Notes (the “Additional Notes”) under Supplemental Indenture No. 16 having the same terms (except for the issue date, the offering price and, if applicable, the first interest payment date) as the initial Series 2019 Notes.  The initial Series 2019 Notes and any Additional Notes shall constitute a single series for all purposes under Supplemental Indenture No. 16 and the Indenture.

 

The Company shall have no obligation to redeem or purchase the Securities pursuant to any sinking fund.

 

Redemption Right at Company’s Option.  The Company has the right to redeem the Series 2019 Notes prior to maturity, in whole at any time or in part from time to time, at its sole option, subject to the terms and conditions set forth in the Indenture.  In the event that the Series 2019 Notes are redeemed on or after the Par Call Date (as defined below), the Series 2019 Notes to be redeemed shall be redeemed at a redemption price equal to 100% of the principal amount of the Series 2019 Notes to be redeemed, together with accrued but unpaid interest thereon, if any, to, but excluding, the date of redemption.  In the event that the Series 2019 Notes are redeemed prior to the Par Call Date, the Series 2019 Notes to be redeemed shall be redeemed at a redemption price, together with accrued but unpaid interest, if any, on the principal amount to be redeemed to, but excluding, the date of redemption, equal to the greater of (i) 100% of the principal amount of the Series 2019 Notes to be redeemed on such redemption date and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Series 2019 Notes to be redeemed that would be due if the Series 2019 Notes matured on the Par Call Date (not including any portion of such payments of interest accrued to the redemption date) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) calculated by the Calculation Agent as of the third Business Day immediately preceding the applicable redemption date (the “Calculation Date”), plus 25 basis points.  The Company shall give the Trustee notice of the amount of the applicable redemption price (the “Redemption Price”) promptly after the calculation thereof, and the Trustee shall have no responsibility for such calculation.

 

A-6

 

“Calculation Agent” means one of the Reference Treasury Dealers (as defined below) appointed by the Company, or if that firm is unwilling or unable to select the Comparable Treasury Issue, an investment banking institution of national standing appointed by the Company.

 

“Comparable Treasury Issue” means the U.S. Treasury security selected by the Calculation Agent as having an actual or interpolated maturity comparable to the remaining term of the Series 2019 Notes to be redeemed (assuming, for this purpose, that the Series 2019 Notes matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Series 2019 Notes.

 

“Comparable Treasury Price” means, with respect to any Calculation Date, (1) the average of five Reference Treasury Dealer Quotations (as defined below) for such Calculation Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Calculation Agent obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.

 

“Par Call Date” means October 15, 2029.

 

“Reference Treasury Dealer” means each of (i) Barclays Capital Inc. and Morgan Stanley & Co. LLC and their respective affiliates and successors and (ii) three Primary Treasury Dealers selected by the Company, and their respective affiliates and successors; provided that, if any of the foregoing ceases to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall substitute another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer (as defined below) and any Calculation Date, the average, as determined by the Calculation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Calculation Agent at 3:30 p.m., New York City time, on the Calculation Date.

 

“Treasury Rate” means, with respect to any Calculation Date, the rate per annum equal to the semiannual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Calculation Date.

 

Selection of Series 2019 Notes to be Redeemed.  If less than all the Series 2019 Notes are to be redeemed, the Series 2019 Notes to be redeemed shall be selected in accordance with the procedures of DTC, provided that, in the case of Series 2019 Notes in definitive form, the Series 2019 Notes to be redeemed will be selected by lot, pro rata or by any other method the Trustee shall deem fair and reasonable.  The Series 2019 Notes to be redeemed shall be selected not more than 60 days before the redemption date from Series 2019 Notes then outstanding that have not been previously called for redemption.  The Trustee shall notify the Company in writing of the Series 2019 Notes that have been selected for redemption and, in the case of any Series 2019 Note selected for partial purchase or redemption, the principal amount thereof to be purchased or redeemed.  Series 2019 Notes and portions of Series 2019 Notes selected for redemption shall be in amounts of $2,000 or integral multiples of $1,000 above that amount.  Provisions of this Indenture that apply to Series 2019 Notes called for redemption also apply to portions of Series 2019 Notes called for redemption.

 

A-7

 

Events of Default.  The Indenture contains provisions for defeasance at any time of the indebtedness on this Security or of certain restrictive covenants and Events of Default with respect to this Security, in each case upon compliance by the Company with certain conditions set forth therein, which provisions apply to this Security.

 

If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of at least a majority in aggregate principal amount of the Securities at the time Outstanding of each series to be affected.  The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.  No reference herein to the Indenture or to Supplemental Indenture No. 16 and no provision of this Security or of the Indenture or of Supplemental Indenture No. 16 shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, and interest on, this Security at the times, place and rate, and in the coin or currency, herein prescribed.

 

Transfer or Exchange of Series 2019 Notes.  As provided in the Indenture and subject to certain limitations as set forth therein and in Supplemental Indenture No. 16, the transfer of this Security is registrable on the Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company, the Trustee and the Registrar duly executed by the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

The Securities of this series are issuable only in registered form without coupons in denominations of $2,000 and in integral multiples of $1,000 above that amount.  As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series of a like tenor of a different authorized denomination, as requested by the Holder surrendering the same.

 

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the person in whose name this Security is registered as the owner hereof for all purposes, whether or not the Security be overdue,

 

A-8

 

and neither the Company, the Trustee nor any such agent of the Company or the Trustee shall be affected by notice to the contrary.

 

THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

 

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

A-9

 

SCHEDULE OF REDEMPTIONS

 

The following redemptions of interests in this Global Note have been made:

 

	
Date of
   Redemption
    	
 
    	
Amount of Decrease
   in Principal Amount
   of this Global Note
    	
 
    	
Principal Amount of the
   Global Note
   Following Such
   Decrease
    	
 
    	
Signature of
   Authorized
   Officer
   of Trustee
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

A-10

 

EXHIBIT B TO

SUPPLEMENTAL INDENTURE NO. 16

 

FORM OF CERTIFICATE OF TRANSFER

 

Protective Life Corporation

P. O. Box 2606

Birmingham, Alabama 35202

Attention: Investor Relations

Tel: (205) 268-1000

Fax: (205) 268-3023

 

The Bank of New York Mellon Trust Company, N.A.
 as Trustee and Registrar

10161 Centurion Parkway North, 2nd Floor

Jacksonville, FL 32256

Attention: Corporation Trust Administration

Tel: (904) 998-4749

Fax: (904) 645-1921

 

Re:                             3.400% Senior Notes due 2030

 

Reference is hereby made to the Senior Indenture dated as of June 1, 1994, as supplemented by Supplemental Indenture No. 16 (the “Supplemental Indenture” and the subordinated indenture, as so supplemented, the “Indenture”) between Protective Life Corporation, as issuer (the “Company”), and The Bank of New York Mellon Trust Company, N.A., as trustee (as successor in interest to The Bank of New York) (the “Trustee”).  Capitalized terms used but not defined herein shall have the meanings given them in the Indenture.

 

                                    , (the “Transferor”) owns and proposes to transfer the Series 2019 Note[s] or interest in such Series 2019 Note[s] specified in Annex A hereto, in the principal amount of $                   in such Series 2019 Note[s] or interests (the “Transfer”), to                                     (the “Transferee”), as further specified in Annex A hereto.  In connection with the Transfer, the Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.  o  Check if Transferee will take delivery of a beneficial interest in the Rule 144A Global Security pursuant to Rule 144A.  The Transfer is being effected pursuant to and in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, the Transferor hereby further certifies that the beneficial interest is being transferred to a Person that the Transferor reasonably believes is purchasing the beneficial interest for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A, and such Transfer is in compliance with any applicable securities laws of any state of the United States

 

B-1

 

or any other jurisdiction.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Rule 144A Global Security and in the Indenture and the Securities Act.

 

2.  o  Check if Transferee will take delivery of a beneficial interest in the Regulation S Global Security pursuant to Regulation S.  The Transfer is being effected pursuant to and in accordance with Rule 904 of Regulation S and, accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a Person in the United States and (x) at the time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes that the Transferee was outside the United States or (y) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the United States, (ii) no directed selling efforts have been made in contravention of the requirements of Rule 904(b) of Regulation S, (iii) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act, (iv) if the transfer is made during the distribution compliance period specified in Rule 903 of Regulation S and the provisions of Rule 904(b)(1) or Rule 904(b)(2) of Regulation S are applicable thereto, the Transferor confirms that such transfer has been made in accordance with the applicable provisions of Rule 904(b)(I) or Rule 904(b)(2), as the case may be and (v) the Transferor is the beneficial owner of the Series 2019 Notes being Transferred.  Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest will be subject to the restrictions on Transfer enumerated in the Private Placement Legend printed on the Regulation S Global Security and in the Indenture and the Securities Act.

 

3.  o  Check and complete if Transferee will take delivery of a beneficial interest pursuant to any provision of the Securities Act other than Rule 144A or Regulation S.  The Transfer is being effected in compliance with the transfer restrictions applicable to beneficial interests in Global Securities and pursuant to and in accordance with the Securities Act and any applicable securities laws of any state of the United States and any other jurisdiction, and accordingly the Transferor hereby further certifies that (check one):

 

(a)  o  such Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act;

 

or

 

(b)  o  such Transfer is being effected to the Company or a subsidiary thereof;

 

or

 

(c)  o  such Transfer is being effected pursuant to an effective registration statement under the Securities Act and in compliance with the prospectus delivery requirements of the Securities Act.

 

B-2

 

This certificate and the statements contained herein are made for your benefit and the benefit of the Company.  You and the Company are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby.

 

	
 
    	
[Insert   Name of Transferor]
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    
					

 

B-3

 

ANNEX A TO CERTIFICATE OF TRANSFER

 

1.                                      The Transferor owns and proposes to transfer the following:

 

[CHECK ONE]

 

o            a beneficial interest in the:

 

(i)                   o                        Rule 144A Global Security (CUSIP                     ), or

 

(ii)                o                        Regulation S Global Security (CUSIP                     ),

 

2.                                      After the Transfer the Transferee will hold:

 

[CHECK ONE]

 

 ̈            a beneficial interest in the:

 

(i)                   o                        Rule 144A Global Security (CUSIP                     ), or

 

(ii)                o                        Regulation S Global Security (CUSIP                     ), or

 

(iii)             o                        a Definitive Security;

 

in accordance with the terms of the Indenture.

 

B-4Exhibit 4.1

 

EXECUTION VERSION

 

MIDLAND STATES BANCORP, INC.

 

As Issuer,

 

and

 

UMB Bank National Association

 

As Trustee

 

INDENTURE

 

Dated as of September 20, 2019

 

5.00% Fixed-to-Floating Rate Subordinated
Notes due 2029

 

     

     

    

 

CROSS-REFERENCE TABLE

 

	Trust Indenture Act Section	Indenture Section
	§310(a)(1)	5.08
	(a)(2)	5.08
	(a)(3)	Not applicable
	(a)(4)	Not applicable
	(a)(5)	5.08
	(b)	5.08, 5.09
	§311(a)	5.05
	(b)	5.05
	§312(a)	6.01
	(b)	6.02
	(c)	6.02
	§313(a)	6.03
	(b)(1)	6.03
	(b)(2)	6.03
	(c)	6.03
	(d)	6.03
	§314(a)	6.04
	(a)(4)	9.08
	(b)	Not applicable
	(c)(1)	1.02
	(c)(2)	1.02
	(c)(3)	Not applicable
	(d)	Not applicable
	(e)	1.02
	(f)	Not applicable
	§315(a)	5.01, 5.02
	(b)	5.03
	(c)	5.01
	(d)	5.01, 5.02
	(e)	4.13
	§316(a)	4.11, 4.12
	(b)	4.07
	(c)	1.04
	§317(a)(1)	4.02
	(a)(2)	4.03
	(b)	9.03
	§318(a)	1.07
	(b)	1.07
	(c)	1.07

 

Note: This Cross-Reference table will not, for any purpose,
be deemed part of this Indenture.

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE	1
	 	 
	Section 1.01	Definitions	1
	Section 1.02	Compliance Certificates and Opinions	13
	Section 1.03	Form of Documents Delivered to Trustee	14
	Section 1.04	Acts of Holders	15
	Section 1.05	Required Notices or Demands	16
	Section 1.06	Incorporation by Reference of Trust Indenture Act; Conflicts	17
	Section 1.07	Effect of Headings and Table of Contents	18
	Section 1.08	Successors and Assigns	18
	Section 1.09	Severability	18
	Section 1.10	Benefits of Indenture	18
	Section 1.11	Governing Law	18
	Section 1.12	Legal Holidays	19
	Section 1.13	Counterparts; Electronic Transmission	19
	Section 1.14	Immunity of Certain Persons	19
	Section 1.15	Waiver of Jury Trial	19
	Section 1.16	Force Majeure	19
	Section 1.17	No Sinking Fund	20
	Section 1.18	Rules of Construction	20
	 	 	 
	ARTICLE II THE SUBORDINATED NOTES	20
	 	 
	Section 2.01	Forms Generally	20
	Section 2.02	Definitive Subordinated Notes	21
	Section 2.03	Global Subordinated Notes	21
	Section 2.04	Restricted Subordinated Notes	21
	Section 2.05	Execution and Authentication	22
	Section 2.06	Registrar and Paying Agent	23
	Section 2.07	Registration of Transfer and Exchange	23
	Section 2.08	Exchange Offer	27
	Section 2.09	Mutilated, Destroyed, Lost and Stolen Subordinated Notes	28
	Section 2.10	Payment of Interest; Rights to Interest Preserved	28
	Section 2.11	Persons Deemed Owners	30
	Section 2.12	Cancellation	30
	Section 2.13	Computation of Interest	30
	Section 2.14	CUSIP Numbers	31
	 	 	 
	ARTICLE III SATISFACTION AND DISCHARGE OF INDENTURE	31
	 	 
	Section 3.01	Satisfaction and Discharge	31
	Section 3.02	Defeasance and Covenant Defeasance	32
	Section 3.03	Application of Trust Money	35
	Section 3.04	Reinstatement	35
	Section 3.05	Effect on Subordination Provisions	35

 

    		i	 

     

    

 

	ARTICLE IV REMEDIES	36
	 	 
	Section 4.01	Events of Default; Acceleration	36
	Section 4.02	Failure to Make Payments	37
	Section 4.03	Trustee May File Proofs of Claim	38
	Section 4.04	Trustee May Enforce Claims Without Possession of Subordinated Notes	39
	Section 4.05	Application of Money Collected	39
	Section 4.06	Limitation on Suits	40
	Section 4.07	Unconditional Right of Holders to Payments	40
	Section 4.08	Restoration of Rights and Remedies	40
	Section 4.09	Rights and Remedies Cumulative	40
	Section 4.10	Delay or Omission Not Waiver	41
	Section 4.11	Control by Holders	41
	Section 4.12	Waiver of Past Defaults	41
	Section 4.13	Undertaking for Costs	42
	 	 	 
	ARTICLE V THE TRUSTEE	42
	 	 
	Section 5.01	Duties of Trustee	42
	Section 5.02	Certain Rights of Trustee	43
	Section 5.03	Notice of Defaults	45
	Section 5.04	Not Responsible for Recitals or Issuance of Subordinated Notes	45
	Section 5.05	May Hold Subordinated Notes	45
	Section 5.06	Money Held in Trust	46
	Section 5.07	Compensation and Reimbursement	46
	Section 5.08	Corporate Trustee Required; Eligibility	47
	Section 5.09	Resignation and Removal; Appointment of Successor	47
	Section 5.10	Acceptance of Appointment by Successor	49
	Section 5.11	Merger, Conversion, Consolidation or Succession to Business	50
	Section 5.12	Appointment of Authenticating Agent	50
	Section 5.13	Preferred Collection of Claims against Company	51
	 	 	 
	ARTICLE VI HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY	52
	 	 
	Section 6.01	Holder Lists	52
	Section 6.02	Preservation of Information; Communications to Holders	52
	Section 6.03	Reports by Trustee	52
	Section 6.04	Reports by Company	53
	 	 	 
	ARTICLE VII SUCCESSORS	54
	 	 
	Section 7.01	Merger, Consolidation or Sale of All or Substantially All Assets	54
	Section 7.02	Successor Person Substituted for Company	54
	 	 	 
	ARTICLE VIII SUPPLEMENTAL INDENTURES	55
	 	 
	Section 8.01	Supplemental Indentures without Consent of Holders	55
	Section 8.02	Supplemental Indentures with Consent of Holders	56
	Section 8.03	Execution of Supplemental Indentures	57
	Section 8.04	Effect of Supplemental Indentures	57
	Section 8.05	Reference in Subordinated Notes to Supplemental Indentures	57
	Section 8.06	Effect on Senior Indebtedness	57

 

    		ii	 

     

    

 

	Section 8.07	Conformity with Trust Indenture Act	57
	 	 	 
	ARTICLE IX COVENANTS	58
	 	 
	Section 9.01	Payment of Principal and Interest	58
	Section 9.02	Maintenance of Office	58
	Section 9.03	Money for Subordinated Notes Payments to Be Held in Trust	59
	Section 9.04	Corporate Existence	60
	Section 9.05	Maintenance of Properties	60
	Section 9.06	Dividends	60
	Section 9.07	Waiver of Certain Covenants	60
	Section 9.08	Company Statement as to Compliance	61
	Section 9.09	Tier 2 Capital	61
	 	 	 
	ARTICLE X REDEMPTION OF SECURITIES	61
	 	 
	Section 10.01	Applicability of Article	61
	Section 10.02	Election to Redeem; Notice to Trustee	62
	Section 10.03	Selection by Trustee of Subordinated Notes to be Redeemed	62
	Section 10.04	Notice of Redemption	63
	Section 10.05	Deposit of Redemption Price	64
	Section 10.06	Subordinated Notes Payable on Redemption Date	64
	Section 10.07	Subordinated Notes Redeemed in Part	64
	 	 	 
	ARTICLE XI SUBORDINATION OF SECURITIES	65
	 	 
	Section 11.01	Agreement to Subordinate	65
	Section 11.02	Distribution of Assets	65
	Section 11.03	Default With Respect to Senior Indebtedness	67
	Section 11.04	No Impairment	67
	Section 11.05	Effectuation of Subordination Provisions	68
	Section 11.06	Notice to Trustee	68
	Section 11.07	Trustee Knowledge of Senior Indebtedness	69
	Section 11.08	Senior Indebtedness to Trustee	69
	Section 11.09	Subordination Not Applicable to Trustee Compensation	69

 

     iii

     

    

 

This INDENTURE dated as of September 20,
2019 is between Midland States Bancorp, Inc., an Illinois corporation (the “Company”), and UMB Bank National
Association, a national banking association duly organized and existing under the laws of the United States of America, as trustee
(the “Trustee”).

 

RECITALS

 

WHEREAS, the Company
has duly authorized the execution and delivery of this Indenture to provide for an issue of $72,750,000 in aggregate principal
amount of 5.00% Fixed-to-Floating Rate Subordinated Notes due 2029, subject to the terms and conditions set forth in this Indenture.

 

NOW, THEREFORE, in
order to declare the terms and conditions upon which the Subordinated Notes are authenticated, issued and delivered, and in consideration
of the premises, and of the purchase and acceptance of the Subordinated Notes by the Holders thereof, the Company and the Trustee
agree as follows for the benefit of each other and for the benefit of the respective Holders from time to time of the Subordinated
Notes.

 

ARTICLE
I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

		Section 1.01	Definitions.

 

Except as otherwise
expressly provided in this Indenture or unless the context otherwise requires, the terms defined in this Section for all purposes
of this Indenture, any Company Order, any Board Resolution, and any indenture supplemental hereto will have the respective meanings
specified in this Section.

 

“Act,”
when used with respect to any Holders, is defined in Section 1.04.

 

“Additional
Interest” has the meaning set forth in the Registration Rights Agreement.

 

“Affiliate”
means, with respect to any specified Person, any other Person directly or indirectly controlling or controlled by or under direct
or indirect common control with such specified Person. For the purposes of this definition, “control,” when used with
respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

 

“Applicable
Procedures” means, with respect to any transfer or exchange of or for beneficial interests in any Global Subordinated
Note, the rules and procedures of the Depositary that apply to such transfer or exchange.

 

“Authenticating
Agent” means any Person authorized by the Trustee in accordance with Section 5.12 to act on behalf of the Trustee
to authenticate Subordinated Notes.

 

“Authorized
Officer” means each of the Chairman of the Board, the Chief Executive Officer, the President, any Senior Vice President,
the Chief Financial Officer and the Chief Accounting Officer of the Company.

 

    1

     

    

 

“Bankruptcy
Laws” mean Title 11, United States Code (11 U.S.C. §§101 et seq.) or any similar federal or state law for the
relief of debtors.

 

“Benchmark”
means, initially, Three-Month Term SOFR; provided that if a Benchmark Transition Event and its related Benchmark Replacement
Date have occurred with respect to Three-Month Term SOFR or the then-current Benchmark, then “Benchmark” means the
applicable Benchmark Replacement.

 

“Benchmark
Replacement” means the Interpolated Benchmark with respect to the then-current Benchmark, plus the Benchmark Replacement
Adjustment for such Benchmark; provided that if (a) the Calculation Agent cannot determine the Interpolated Benchmark as of the
Benchmark Replacement Date or (b) the then-current Benchmark is Three-Month Term SOFR and a Benchmark Transition Event and its
related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR (in which event no Interpolated Benchmark
with respect to Three-Month Term SOFR shall be determined), then “Benchmark Replacement” means the first alternative
set forth in the order below that can be determined by the Calculation Agent, as of the Benchmark Replacement Date:

 

		(a)	Compounded SOFR;

 

		(b)	the sum of: (i) the alternate rate of interest that has been selected or recommended by the
Relevant Governmental Body as the replacement for the then-current Benchmark for the applicable Corresponding Tenor and (ii) the
Benchmark Replacement Adjustment;

 

		(c)	the sum of: (i) the ISDA Fallback Rate and (ii) the Benchmark Replacement Adjustment;

 

		(d)	the sum of: (i) the alternate rate of interest that has been selected by the Company as the
replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted
rate of interest as a replacement for the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and
(ii) the Benchmark Replacement Adjustment.

 

“Benchmark
Replacement Adjustment” means the first alternative set forth in the order below that can be determined by the Calculation
Agent, as of the Benchmark Replacement Date:

 

		(a)	the spread adjustment, or method for calculating or determining such spread adjustment, (which
may be a positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body for the applicable
Unadjusted Benchmark Replacement;

 

		(b)	if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then
the ISDA Fallback Adjustment;

 

		(c)	the spread adjustment (which may be a positive or negative value or zero) that has been selected
by the Calculation Agent giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining
such spread adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement
for U.S. dollar denominated floating rate notes at such time.

 

    2

     

    

 

“Benchmark
Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational
changes (including changes to the definition of “Floating Interest Period,” timing and frequency of determining rates
with respect to each Floating Interest Period and making payments of interest, rounding of amounts or tenors and other administrative
matters) that the Company decides may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially
consistent with market practice (or, if the Company decides that adoption of any portion of such market practice is not administratively
feasible or if the Calculation Agent determines that no market practice for use of the Benchmark Replacement exists, in such other
manner as the Calculation Agent determines is reasonably necessary).

 

“Benchmark
Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark:

 

		(a)	in the case of clause (a) of the definition of “Benchmark Transition Event,” the relevant
Reference Time in respect of any determination;

 

		(b)	in the case of clause (b) or (c) of the definition of “Benchmark Transition Event,”
the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date
on which the administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

 

		(c)	in the case of clause (d) of the definition of “Benchmark Transition Event,” the date
of such public statement or publication of information referenced therein.

 

For the avoidance of doubt, if the event
giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any
determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for purposes of such
determination.

 

“Benchmark
Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

 

		(a)	if the Benchmark is Three-Month Term SOFR, (i) the Relevant Governmental Body has not selected
or recommended a forward-looking term rate for a tenor of three months based on SOFR, (ii) the development of a forward-looking
term rate for a tenor of three months based on SOFR that has been recommended or selected by the Relevant Governmental Body is
not complete or (iii) the Calculation Agent determines that the use of a forward-looking rate for a tenor of three months based
on SOFR is not administratively feasible;

 

    3

     

    

 

		(b)	a public statement or publication of information by or on behalf of the administrator of the Benchmark
announcing that such administrator has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that,
at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark;

 

		(c)	a public statement or publication of information by the regulatory supervisor for the administrator
of the Benchmark, the central bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator
for the Benchmark, a resolution authority with jurisdiction over the administrator for the Benchmark or a court or an entity with
similar insolvency or resolution authority over the administrator for the Benchmark, which states that the administrator of the
Benchmark has ceased or will cease to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement
or publication, there is no successor administrator that will continue to provide the Benchmark; or

 

		(d)	a public statement or publication of information by the regulatory supervisor for the administrator
of the Benchmark announcing that the Benchmark is no longer representative.

 

“Board of
Directors” means, as to any Person, the board of directors, or similar governing body, of such Person or any duly authorized
committee thereof.

 

“Board Resolution”
means one or more resolutions, certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such certification, delivered to the Trustee.

 

“Business
Day” means any day other than a Saturday, Sunday or other day on which banking institutions in the State of Illinois
or the State of New York are authorized or obligated by law, regulation or executive order to close.

 

“Calculation
Agent” means such bank or other entity (which may be the Company or one of its Affiliates) as may be appointed by the
Company, in writing, to act as Calculation Agent for the Subordinated Notes during the Floating Rate Period, and who has accepted
such appointment in writing.

 

“Commission”
means the U.S. Securities and Exchange Commission, as from time to time constituted, or, if at any time after the execution of
this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then
the body performing such duties at such time.

 

“Company”
is defined in the preamble to this Indenture.

 

“Company Request”
and “Company Order” mean, respectively, a written request or order, as the case may be, signed on behalf of
the Company by an Authorized Officer and delivered to the Trustee.

 

    4

     

    

 

“Compounded
SOFR” means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for
this rate, and conventions for this rate (which will be compounded in arrears with a lookback and/or suspension period as a mechanism
to determine the interest amount payable prior to the end of each Floating Interest Period) being established by the Company in
accordance with:

 

		(a)	the rate, or methodology for this rate, and conventions for this rate selected or recommended by
the Relevant Governmental Body for determining compounded SOFR; provided that:

 

		(b)	if, and to the extent that, the Calculation Agent determines that Compounded SOFR cannot be determined
in accordance with clause (a) above, then the rate, or methodology for this rate, and conventions for this rate that have
been selected by the Company or its designee giving due consideration to any industry-accepted market practice for U.S. dollar
denominated floating rate notes at such time.

 

For the avoidance of doubt, the calculation
of Compounded SOFR will exclude the Benchmark Replacement Adjustment.

 

“Corresponding
Tenor” with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length
(disregarding Business Day adjustment) as the applicable tenor for the then-current Benchmark.

 

“Corporate
Trust Office” means the address of the Trustee specified in Section 1.05 or such other address as the Trustee
may designate from time to time by notice to the Holders and the Company, or the designated address of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by notice to the Holders and the Company).

 

“Covenant
Defeasance” is defined in Section 3.02(3).

 

“Defaulted
Interest” is defined in Section 2.10.

 

“Definitive
Subordinated Notes” means, individually and collectively, each Restricted Definitive Subordinated Note and each Unrestricted
Definitive Subordinated Note, substantially in the form of Exhibit A-l hereto, issued under this Indenture.

 

“Depositary”
means, with respect to any Subordinated Note issuable or issued in whole or in part in global form, the Person designated as depositary
by the Company in accordance with this Indenture, and any and all successors thereto appointed as Depositary under this Indenture.
The initial Depositary shall be The Depository Trust Company.

 

“Dollars”
or “$” means a dollar or other equivalent unit of legal tender for payment of public or private debts in the
United States.

 

“Event of
Default” is defined in Section 4.01.

 

    5

     

    

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any successor statute thereto.

 

“Exchange
Notes” means the Subordinated Notes issued in the Exchange Offer in accordance with Section 2.08.

 

“Exchange
Offer” has the meaning set forth in the Registration Rights Agreement.

 

“Federal Reserve
Board” means the Board of Governors of the Federal Reserve System or any successor regulatory authority with jurisdiction
over bank holding companies.

 

“Fixed Interest
Payment Date” means March 30 and September 30 of each year, beginning March 30, 2020.

 

“Floating
Interest Determination Date” means the date upon which the Floating Interest Rate is determined by the Calculation Agent
pursuant to the Three-Month Term SOFR Conventions.

 

“Floating
Interest Payment Date” means March 30, June 30, September 30 and December 30 of each year, beginning September 30, 2024.

 

“Floating
Interest Period” means each three-month period beginning on each Floating Interest Payment Date.

 

“Floating
Interest Rate” means:

 

		(i)	initially Three-Month Term SOFR;

 

		(ii)	notwithstanding the foregoing clause (i) of this definition:

 

		(1)	If the Calculation Agent determines prior to the relevant Floating Interest Determination Date that a Benchmark Transition
Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR, then the Company shall promptly
provide notice of such determination to the Holder and Section 2(c) will thereafter apply to all determinations, calculations and
quotations made or obtained for the purposes of calculating the Floating Interest Rate payable on the Subordinated Notes during
a relevant Floating Interest Period.

 

		(2)	However, if the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have
occurred with respect to Three-Month Term SOFR, but for any reason the Benchmark Replacement has not been determined as of the
relevant Floating Interest Determination Date, the Floating Interest Rate for the applicable Floating Interest Period will be equal
to the Floating Interest Rate on the last Floating Interest Determination Date for the Subordinated Notes, as determined by the
Calculation Agent.

 

    6

     

    

 

		(iii)	If the then-current Benchmark is Three-Month Term SOFR and any of the foregoing provisions concerning the calculation of the
interest rate and the payment of interest during the Floating Rate Period are inconsistent with any of the Three-Month Term SOFR
Conventions (as defined below) determined by the Calculation Agent, then the relevant Three-Month Term SOFR Conventions will apply.

 

“FRBNY”
means the Federal Reserve Bank of New York.

 

“FRBNY’s
Website” means the website of the FRBNY at http://www.newyorkfed.org or any successor source.

 

“GAAP”
means accounting principles generally accepted in the United States set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants, the statements and pronouncements of the Financial
Accounting Standards Board and such other statements by such other entities (including the Commission) as have been accepted by
a significant segment of the accounting profession, which are applicable at the date of this Indenture, consistently applied.

 

“Global Subordinated
Notes” means, individually and collectively, each Restricted Global Subordinated Note and each Unrestricted Global Subordinated
Note, substantially in the form of Exhibit A-2 hereto, issued under this Indenture.

 

“Government
Obligations” means securities which are direct obligations of the United States of America in each case where the payment
or payments thereunder are supported by the full faith and credit of the United States of America.

 

“Holder”
means the Person in whose name the Subordinated Note is registered in the Subordinated Note Register.

 

“Indenture”
means this Indenture, as amended and supplemented from time to time in accordance with its terms.

 

“Initial Notes”
means the $72,750,000 in aggregate principal amount of the Company’s 5.00% Fixed-to-Floating Rate Subordinated Notes due
2029 issued under this Indenture on the date hereof.

 

“Interest
Payment Date” means either a Fixed Interest Payment Date or a Floating Interest Payment Date, as applicable.

 

“Interpolated
Benchmark” with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a
linear basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than
the Corresponding Tenor and (2) the Benchmark for the shortest period (for which the Benchmark is available) that is longer
than the Corresponding Tenor.

 

    7

     

    

 

“Investment
Company Event” means the receipt by the Company of a legal opinion from counsel experienced in such matters to the effect
that there is more than an insubstantial risk that the Company is or, within 90 days of the date of such legal opinion will be,
considered an “investment company” that is required to be registered under the Investment Company Act of 1940, as amended.

 

“ISDA”
means the International Swaps and Derivatives Association, Inc. or any successor thereto.

 

“ISDA Definitions”
means the 2006 ISDA Definitions published by the ISDA or any successor thereto, as amended or supplemented from time to time, or
any successor definitional booklet for interest rate derivatives published from time to time.

 

“ISDA Fallback
Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives
transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to
the Benchmark for the applicable tenor.

 

“ISDA Fallback
Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon
the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA
Fallback Adjustment.

 

“Legal Defeasance”
is defined in Section 3.02(2).

 

“Letter of
Transmittal” means the letter of transmittal to be prepared by the Company and sent to all Holders for use by such Holders
in connection with an Exchange Offer.

 

“Maturity”
means the date on which the principal of a Subordinated Note or an installment of principal becomes due and payable as provided
in or under this Indenture or such Subordinated Note, whether at the Stated Maturity or by an acceleration of the maturity of such
Subordinated Note in accordance with the terms of such Subordinated Note, upon redemption at the option of the Company, upon repurchase
or repayment or otherwise, and includes a Redemption Date for such Subordinated Note and a date fixed for the repurchase or repayment
of such Subordinated Note at the option of the Holder.

 

“Officer”
means, with respect to any Person, the chairman of the board, vice chairman of the board, the chief executive officer, the president,
the chief operating officer, the chief financial officer, the treasurer, any assistant treasurer, the controller, the secretary
or any vice president of such Person.

 

“Officers’
Certificate” means a certificate signed on behalf of the Company by two Officers of the Company, at least one of whom
must be the principal executive officer, the principal financial officer or the principal accounting officer of the Company, that
complies with the requirements of Section 1.02 and is delivered to the Trustee.

 

    8

     

    

 

“Opinion of
Counsel” means a written opinion from legal counsel, which opinion meets the requirements of Section 1.02. The
counsel may be an employee of or counsel to the Company or any Subsidiary of the Company.

 

“Outstanding,”
when used with respect to any Subordinated Notes, means, as of the date of determination, all such Subordinated Notes theretofore
authenticated and delivered under this Indenture, except (1) any such Subordinated Note theretofore cancelled by the Trustee or
the Registrar or delivered to the Trustee or the Registrar for cancellation; (2) any such Subordinated Note for whose payment at
the Maturity thereof money in the necessary amount has been theretofore deposited in accordance with this Indenture (other than
in accordance with Section 3.02) with the Trustee or any Paying Agent (other than the Company) in trust or set aside and
segregated in trust by the Company (if the Company will act as its own Paying Agent) for the Holders of such Subordinated Notes,
provided that, if such Subordinated Notes are to be redeemed, notice of such redemption has been duly given in accordance
with this Indenture or provision therefor satisfactory to the Trustee has been made; (3) any such Subordinated Note with respect
to which the Company has effected Legal Defeasance or Covenant Defeasance in accordance with Section 3.02, except to the
extent provided in Section 3.02; and (4) any such Subordinated Note that has been paid in accordance with Section 2.09
or in exchange for or in lieu of which other Subordinated Notes have been authenticated and delivered under this Indenture, unless
there will have been presented to the Trustee proof satisfactory to the Trustee that such Subordinated Note is held by a bona fide
purchaser in whose hands such Subordinated Note is a valid obligation of the Company; provided, however, in all cases,
that in determining whether the Holders of the requisite principal amount of Outstanding Subordinated Notes have given any request,
demand, authorization, direction, notice, consent or waiver hereunder, Subordinated Notes owned by the Company or any Affiliate
of the Company will be disregarded and deemed not to be Outstanding. Subordinated Notes so owned that will have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right
so to act with respect to such Subordinated Notes and that the pledgee is not the Company or an Affiliate of the Company.

 

“Participating
Broker-Dealer” has the meaning set forth in the Registration Rights Agreement.

 

“Paying Agent”
is defined in Section 2.06.

 

“Person”
mean any individual, corporation, partnership, association, limited liability company, other company, statutory trust, business
trust, joint venture, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision
thereof.

 

“Place of
Payment,” with respect to any Subordinated Note, means the place or places where the principal of, or interest on, such
Subordinated Note are payable as provided in or under this Indenture or such Subordinated Note.

 

“Private Placement
Legend” means the legend set forth in Section 2.04 of this Indenture to be placed on all Subordinated Notes issued
under this Indenture, except where otherwise permitted by the provisions of this Indenture.

 

    9

     

    

 

“Purchase
Agreement” means the Subordinated Note Purchase Agreement, dated as of September 20, 2019, by and among the Company and
the purchasers identified therein.

 

“Redemption
Date” with respect to any Subordinated Note or portion thereof to be redeemed, means the date fixed for such redemption
by or under this Indenture or such Subordinated Note.

 

“Redemption
Price” with respect to any Subordinated Note or portion thereof to be redeemed, means the price at which it is to be
redeemed as determined by or under this Indenture or such Subordinated Note.

 

“Reference
Time” with respect to any determination of a Benchmark means (1) if the Benchmark is Three-Month Term SOFR, the time
determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, and (2) if the Benchmark is not
Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Benchmark Replacement Conforming
Changes.

 

“Registrar”
is defined in Section 2.06.

 

“Registration
Rights Agreement” means the Registration Rights Agreement in the form attached as Exhibit B to the Purchase Agreement,
dated as of the date of this Indenture, by and among the Company and the purchasers identified therein.

 

“Regular Record
Date,” with respect to any Interest Payment Date, means the close of business on the fifteenth calendar day prior to
such Interest Payment Date, without regard to whether the Regular Record Date is a Business Day.

 

“Relevant
Governmental Body” means the Federal Reserve Board and/or the FRBNY, or a committee officially endorsed or convened by
the Federal Reserve Board and/or the FRBNY or any successor thereto.

 

“Responsible
Officer” means, when used with respect to the Trustee, any officer assigned to the Corporate Trust Office who has direct
responsibility for the administration of this Indenture and, with respect to a particular corporate trust matter, any other officer
of the Trustee to whom such matter is referred because of such Person’s knowledge of and familiarity with the particular
subject.

 

“Restricted
Definitive Subordinated Note” means a Definitive Subordinated Note bearing, or that is required to bear, the Private
Placement Legend.

 

“Restricted
Global Subordinated Note” means a Global Subordinated Note bearing, or that is required to bear, the Private Placement
Legend,

 

“Restricted
Subordinated Note” means a Restricted Global Subordinated Note or a Restricted Definitive Subordinated Note.

 

“Rule 144”
means Rule 144 promulgated under the Securities Act.

 

    10

     

    

 

“Rule 144A”
means Rule 144A promulgated under the Securities Act.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any successor statute thereto.

 

“Senior Indebtedness”
means the principal of, and premium, if any, and interest, including interest accruing after the commencement of any bankruptcy
proceeding relating to the Company, on, or substantially similar payments the Company makes in respect of the following categories
of debt, whether that debt was outstanding on the date of execution of this Indenture or thereafter incurred, created or assumed:
(1) all indebtedness of the Company for borrowed money, whether or not evidenced by notes, debentures, bonds, securities or other
similar instruments issued under the provisions of any indenture, fiscal agency agreement, debenture or note purchase agreement
or other agreement, including any senior debt securities that may be offered; (2) indebtedness of the Company for money borrowed
or represented by purchase money obligations, as defined below; (3) the Company’s obligations as lessee under leases of property
whether made as part of a sale and leaseback transaction to which it is a party or otherwise; (4) reimbursement and other obligations
relating to letters of credit, bankers’ acceptances and similar obligations and direct credit substitutes; (5) all obligations
of the Company in respect of interest rate swap, cap or other agreements, interest rate future or option contracts, currency swap
agreements, currency future or option contacts, commodity contracts and other similar arrangements; (6) all of the Company’s
obligations issued or assumed as the deferred purchase price of property or services, but excluding trade accounts payable and
accrued liabilities arising in the ordinary course of business; (7) any other obligation of the Company to its general creditors;
(8) all obligations of the type referred to in clauses (1) through (7) of other persons for the payment of which the Company is
liable contingently or otherwise to pay or advance money as obligor, guarantor, endorser or otherwise; (9) all obligations of the
types referred to in clauses (1) through (8) of other persons secured by a lien on any property or asset of the Company; and (10)
deferrals, renewals or extensions of any of the indebtedness or obligations described above; provided, however, that
“Senior Indebtedness” does not include: (a) the subordinated notes of the Company issued in June 2015 and October 2017,
and in each case any subordinated notes issued in exchange therefor or upon transfer thereof, in each case that are outstanding
as of the date hereof or that are issued in exchange for or upon transfer of such subordinated notes after the date hereof, (b)
the subordinated debt securities, including, without limitation, any subordinated debentures or junior subordinated debentures,
of the Company underlying trust preferred securities issued by subsidiary trusts of the Company that are outstanding as of the
date hereof or that are issued after the date hereof by a subsidiary trust of the Company; (c) any indebtedness, obligation
or liability that is subordinated to indebtedness, obligations or liabilities of the Company to substantially the same extent as
or to a greater extent than the Subordinated Notes are subordinated, including, without limitation, the Company’s 5.50% Fixed-to-Floating
Rate Subordinated Notes due 2034; and (d) any Subordinated Notes issued under this Indenture and, unless expressly provided in
the terms thereof, any indebtedness of the Company to its Subsidiaries.

 

As used above, the
term “purchase money obligations” means indebtedness, obligations evidenced by a note, debenture, bond or other instrument,
whether or not secured by a lien or other security interest, issued to evidence the obligation to pay or a guarantee of the payment
of, and any deferred obligation for the payment of, the purchase price of property but excluding indebtedness or obligations for
which recourse is limited to the property purchased, issued or assumed as all or a part of the consideration for the acquisition
of property or services, whether by purchase, merger, consolidation or otherwise, but does not include any trade accounts payable
as set forth in clause (6) above.

 

    11

     

    

 

“Significant
Subsidiary” means any Subsidiary of the Company that is a “significant subsidiary” as defined in Rule 1-02
of Regulation S-X promulgated by the Commission (as such rule is in effect on the date of this Indenture).

 

“SOFR”
means the daily Secured Overnight Financing Rate provided by the FRBNY, as the administrator of the benchmark (or a successor administrator),
on the FRBNY’s Website.

 

“Special Record
Date” for the payment of any Defaulted Interest on any Subordinated Note means a date fixed in accordance with Section
2.10.

 

“Stated Maturity”
means September 30, 2029.

 

“Subordinated
Note” or “Subordinated Notes” means the Initial Notes and the Exchange Notes and, more particularly,
any Subordinated Note authenticated and delivered under this Indenture, including those Subordinated Notes issued or authenticated
upon transfer, replacement or exchange.

 

“Subordinated
Note Register” is defined in Section 2.06.

 

“Subordination
Provisions” means the provisions contained in Article XI or any provisions with respect to subordination contained in
the Subordinated Notes.

 

“Subsidiary”
means a corporation, a partnership, business or statutory trust or a limited liability company, a majority of the outstanding voting
equity securities or a majority of the voting membership or partnership interests, as the case may be, of which is owned or controlled,
directly or indirectly, by the Company or by one or more other Subsidiaries of the Company. For the purposes of this definition,
“voting equity securities” means securities having voting power for the election of directors, managers, managing partners
or trustees, as the case may be, whether at all times or only so long as no senior class of stock has voting power by reason of
any contingency.

 

“Tax Event”
means the receipt by the Company of a legal opinion from counsel experienced in such matters to the effect that, as a result of
a change in law on or after the date hereof, there is more than an insubstantial risk that interest paid by the Company on the
Subordinated Notes is not, or, within 90 days of the date of such legal opinion, will not be, deductible by the Company, in whole
or in part, for United States federal income tax purposes.

 

“Term SOFR”
means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.

 

“Term SOFR
Administrator” means any entity designated by the Relevant Governmental Body as the administrator of Term SOFR (or a
successor administrator).

 

“Three-Month
Term SOFR” means the greater of: (i) the rate for Term SOFR for a tenor of three months that is published by the Term
SOFR Administrator at the Reference Time for any Floating Interest Period, as determined by the Calculation Agent after giving
effect to the Three-Month Term SOFR Conventions; and (ii) zero percent (0.00%).

 

    12

     

    

 

“Three-Month
Term SOFR Conventions” means any determination, decision or election by the Calculation Agent with respect to any technical,
administrative or operational matter (including with respect to the manner and timing of the publication of Three-Month Term SOFR,
or changes to the definition of “Floating Interest Period”, timing and frequency of determining Three-Month Term SOFR
with respect to each Floating Interest Period and making payments of interest, rounding of amounts or tenors, and other administrative
matters) that the Calculation Agent decides may be appropriate to reflect the use of Three-Month Term SOFR as the Benchmark in
a manner substantially consistent with market practice (or, if the Company decides that adoption of any portion of such market
practice is not administratively feasible or if the Calculation Agent determines that no market practice for the use of Three-Month
Term SOFR exists, in such other manner as the Calculation Agent determines is reasonably necessary).

 

“Tier 2 Capital”
means Tier 2 capital for purposes of capital adequacy regulations of the Federal Reserve Board, as then in effect and applicable
to the Company.

 

“Tier 2 Capital
Event” means the receipt by the Company of a legal opinion from counsel experienced in such matters to the effect that,
as a result of any change, event, occurrence, circumstance or effect occurring on or after the date hereof, the Subordinated Notes
do not constitute, or within 90 days of the date of such legal opinion will not constitute, Tier 2 Capital (or its then equivalent
if the Company were subject to such capital requirement).

 

“Trust Indenture
Act” means the Trust Indenture Act of 1939, as amended.

 

“Trustee”
means UMB Bank National Association, as trustee, until a successor replaces it in accordance with the provisions of this Indenture
and thereafter means the successor serving hereunder.

 

“Unadjusted
Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

“United States”
means the United States of America (including the states thereof and the District of Columbia), its territories, its possessions
and other areas subject to its jurisdiction.

 

“Unrestricted
Definitive Subordinated Note” means a Definitive Subordinated Note that does not bear, and is not required to bear, the
Private Placement Legend.

 

“Unrestricted
Global Subordinated Note” means a Global Subordinated Note that does not bear, and is not required to bear, the Private
Placement Legend.

 

		Section 1.02	Compliance
Certificates and Opinions.

 

Except as otherwise
expressly provided in or under this Indenture, upon any application or request by the Company to the Trustee to take any action
under any provision of this Indenture, the Company will furnish to the Trustee an Officers’ Certificate stating that, in
the opinion of the signers, all conditions precedent (including covenants compliance with which constitutes a condition precedent),
if any, provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating
that, in the opinion of such counsel, all such conditions precedent (including covenants compliance with which constitutes a condition
precedent), if any, have been complied with, except that in the case of any such application or request as to which the furnishing
of such documents or any of them is specifically required by any provision of this Indenture relating to such particular application
or request, no additional certificate or opinion need be furnished.

 

    13

     

    

 

Each certificate or
opinion with respect to which compliance with a condition provided for in this Indenture (other than an Officers’ Certificate
provided under Section 9.08) must comply with the provisions of Section 314(e) of the Trust Indenture Act and must include:

 

(1)              
a statement that the person making such certificate or opinion has read such covenant or condition;

 

(2)              
a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;

 

(3)              
a statement that, in the opinion of such person, he or she has made such examination or investigation as is necessary
to enable him or her to express an informed opinion as to whether or not such condition has been satisfied; and

 

(4)              
a statement as to whether or not, in the opinion of such person, such condition has been satisfied.

 

		Section 1.03	Form of Documents
Delivered to Trustee.

 

In any case where several
matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters
be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other
matters, and any such Person may certify or give an opinion as to such matters in one or several documents.

 

Any certificate or
opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of reasonable care, but without investigation, should
know, that the certificate or opinion or representations with respect to the matters upon which his certificate or opinion is based
is erroneous.

 

Any such certificate
or opinion of counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations
by, an officer or officers of the Company stating that the information with respect to such factual matters is in the possession
of the Company unless such counsel knows, or in the exercise of reasonable care, but without investigation, should know, that the
certificate or opinion or representations with respect to such matters are erroneous.

 

    14

     

    

 

Where any Person is
required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments
under this Indenture or any Subordinated Note, they may, but need not, be consolidated and form one instrument.

 

		Section 1.04	Acts of Holders.

 

(1)              
Any request, demand, authorization, direction, notice, consent, waiver or other action provided by or under this
Indenture to be made, given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by an agent duly appointed in writing. Except as herein otherwise expressly provided,
such action will become effective when such instrument or instruments or record or both are delivered to the Trustee and, where
it is hereby expressly required, to the Company. Such instrument or instruments and any such record (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument
or instruments. Proof of execution of any such instrument or of a writing appointing any such agent, or of the holding by any Person
of a Subordinated Note, will be sufficient for any purpose of this Indenture and (subject to Section 5.01) conclusive in
favor of the Trustee and the Company and any agent of the Trustee or the Company, if made in the manner provided in this Section.

 

(2)              
The fact and date of the execution by any Person of any such instrument or writing may be proved in any reasonable
manner that the Trustee deems sufficient and in accordance with such reasonable rules as the Trustee may determine, and the Trustee
may in any instance require further proof with respect to any of the matters referred to in this Section.

 

(3)              
The ownership, principal amount and serial numbers of Subordinated Notes held by any Person, and the date of the
commencement and the date of the termination of holding the same, will be proved by the Subordinated Note Register.

 

(4)              
The Company may, in the circumstances permitted by the Trust Indenture Act, set a record date for purposes of determining
the identity of Holders entitled to give any request, demand, authorization, direction, notice, consent, waiver or take any other
act authorized or permitted to be given or taken by Holders. Unless otherwise specified, if not set by the Company prior to the
first solicitation of a Holder made by any Person in respect of any such action, any such record date will be the later of 30 days
prior to the first solicitation of such consent or the date of the most recent list of Holders furnished to the Trustee prior to
such solicitation. If a record date is fixed, the Holders on such record date, and only such Persons, will be entitled to make,
give or take such request, demand, authorization, direction, notice, consent, waiver or other action, whether or not such Holders
remain Holders after such record date. No such request, demand, authorization, direction, notice, consent, waiver or other action
will be valid or effective if made, given or taken more than 90 days after such record date.

 

(5)              
Any effective request, demand, authorization, direction, notice, consent, waiver or other Act by the Holder of any
Subordinated Note will bind every future Holder of the same Subordinated Note and the Holder of every Subordinated Note issued
upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done or suffered to
be done by the Trustee, any Registrar, any Paying Agent or the Company in reliance thereon, whether or not notation of such Act
is made upon such Subordinated Note.

 

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(6)              
Without limiting the foregoing, a Holder entitled to take any action hereunder with regard to any particular Note
may do so with regard to all or any part of the principal amount of such Note or by one or more duly appointed agents, each of
which may do so in accordance with such appointment with regard to all or any part of such principal amount. Any notice given or
action taken by a Holder or its agents with regard to different parts of such principal amount in accordance with this paragraph
will have the same effect as if given or taken by separate Holders of each such different part.

 

(7)              
Without limiting the generality of this Section 1.04, a Holder, including a Depositary that is a Holder of
a Global Subordinated Note, may make, give or take, by a proxy or proxies, duly appointed in writing, any request, demand, authorization,
direction, notice, consent, waiver or other Act provided in or under this Indenture or the Subordinated Notes to be made, given
or taken by Holders, and a Depositary that is a Holder of a Global Subordinated Note may provide its proxy or proxies to the beneficial
owners of interests in any such Global Subordinated Note through such Depositary’s Applicable Procedures. The Company may
fix a record date for the purpose of determining the Persons who are beneficial owners of interests in any Global Subordinated
Note entitled under the Applicable Procedures of such Depositary to make, give or take, by a proxy or proxies duly appointed in
writing, any request, demand, authorization, direction, notice, consent, waiver or other action provided in this Indenture to be
made, given or taken by Holders. If such a record date is fixed, the Holders on such record date or their duly appointed proxy
or proxies, and only such Persons, will be entitled to make, give or take such request, demand, authorization, direction, notice,
consent, waiver or other action, whether or not such Holders remain Holders after such record date. No such request, demand, authorization,
direction, notice, consent, waiver or other action will be valid or effective if made, given or taken more than 90 days after such
record date.

 

Promptly upon any record
date being set in accordance with this Section 1.04, the Company, at its own expense, will cause notice of the record date,
the proposed action by Holders and the expiration date to be given to the Trustee in writing and the Holders in the manner set
forth in Section 1.05.

 

		Section 1.05	Required Notices
or Demands.

 

Any notice or communication
by the Company or the Trustee to the other is duly given if in writing and delivered in Person or delivered by registered or certified
mail (return receipt requested), facsimile or overnight air courier guaranteeing next day delivery, to the other’s address:

 

If to the Company;

 

Midland States Bancorp, Inc.

1201 Network Centre Drive

Effingham, Illinois 62401

		Attention:	Jeffrey G. Ludwig

			Chief Executive Officer

		Facsimile:	(217) 342-9462

 

If to the Trustee:

 

UMB Bank National Association

5555 San Felipe, Suite 870

Houston, Texas 77056

		Attention:	Mauri J. Cowen

		Facsimile	No.: 214-389-5949

 

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The Company or the
Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.

 

All notices and communications
will be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if delivered by mail; on the first Business Day after being sent, if sent by facsimile
and the sender receives confirmation of successful transmission; and the next Business Day after timely delivery to the courier,
if sent by overnight air courier guaranteeing next day delivery.

 

Any notice required
or permitted to be given to a Holder under the provisions of this Indenture will be deemed to be properly delivered by being deposited
postage prepaid in a post office letter box in the United States addressed to such Holder at the address of such Holder as shown
on the Subordinated Note Register. Any report in accordance with Section 313 of the Trust Indenture Act will be transmitted in
compliance with subsection (c) therein. If the Company delivers a notice or communication to Holders, the Company will deliver
a copy to the Trustee at the same time.

 

In any case where notice
to Holders of Subordinated Notes is delivered by mail, neither the failure to deliver such notice, nor any defect in any notice
so delivered, to any particular Holder of a Subordinated Note will affect the sufficiency of such notice with respect to other
Holders of Subordinated Notes. Any notice that is delivered in the manner herein provided will be conclusively presumed to have
been duly given or provided. In the case by reason of the suspension of regular mail service or by reason of any other cause it
will be impracticable to give such notice by mail, then such notification as will be made with the approval of the Trustee will
constitute a sufficient notification for every purpose hereunder.

 

Where this Indenture
provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver will be the equivalent of such notice. Waivers of notice by Holders of Subordinated Notes will
be filed with the Trustee, but such filing will not be a condition precedent to the validity of any action taken in reliance upon
such waiver.

 

Notwithstanding any
other provision herein, where this Indenture provides for notice to any Holder of a Global Subordinated Note, or of an interest
therein, such notice will be sufficiently given if given to the Depositary for such Global Subordinated Note (or its designee)
according to the Applicable Procedures of such Depositary prescribed for giving such notice.

 

		Section 1.06	Incorporation
by Reference of Trust Indenture Act; Conflicts.

 

Whenever this Indenture
refers to a provision of the Trust Indenture Act, the provision is incorporated by reference in and made a part of this Indenture.
The Trust Indenture Act term “obligor” used in this Indenture means the Company and any successor obligor upon
the Subordinated Notes.

 

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All other terms used
in this Indenture that are defined by the Trust Indenture Act, defined by Trust Indenture Act reference to another statute or defined
by Commission rule under the Trust Indenture Act have the meanings so assigned to them as of the date of this Indenture. If and
to the extent that any provision of this Indenture limits, qualifies or conflicts with another provision included in this Indenture
that is required to be included in this Indenture by any of Sections 310 to 317, inclusive, of the Trust Indenture Act, such required
provision will control. If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by Section 318(c)
of the Trust Indenture Act, the duties imposed by Section 318(c) of the Trust Indenture Act will control. If any provision of this
Indenture modifies or excludes any provision of the Trust Indenture Act that may be so modified or excluded, the provisions of
the Trust Indenture Act will be deemed to apply to this Indenture as so modified or will be excluded, as the case may be.

 

		Section 1.07	Effect of
Headings and Table of Contents.

 

The Article and Section
headings in this Indenture and the Table of Contents are for convenience only and will not affect the construction of this Indenture.

 

		Section 1.08	Successors
and Assigns.

 

All the covenants,
stipulations, promises and agreements in this Indenture by or on behalf of the Company or the Trustee will bind its respective
successors and permitted assigns, whether so expressed or not. The Company may assign its rights under this Indenture, but may
not assign its obligations under this Indenture, other than in connection with a transaction permitted by Article VII hereof, or
as consented to by the Holder of each Outstanding Subordinated Note.

 

		Section 1.09	Severability.

 

In case any provision
in this Indenture or any Subordinated Note will be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions will not, to the fullest extent permitted by law, in any way be affected or impaired thereby.

 

		Section 1.10	Benefits of
Indenture.

 

Nothing in this Indenture
or any Subordinated Note, express or implied, will give to any Person, other than the parties hereto, any Registrar, any Paying
Agent and their respective successors hereunder and the Holders of Subordinated Notes, and the holders of Senior Indebtedness,
any benefit or any legal or equitable right, remedy or claim under this Indenture.

 

		Section 1.11	Governing
Law.

 

This Indenture and
the Subordinated Notes 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 any laws or principles of conflict of
laws that would apply the laws of a different jurisdiction.

 

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		Section 1.12 	Legal Holidays.

 

Unless otherwise specified
in or under this Indenture or any Subordinated Notes, in any case where any Interest Payment Date, Stated Maturity or Maturity
of, or any other day on which a payment is due with respect to, any Subordinated Note will be a day that is not a Business Day
at any Place of Payment, then (notwithstanding any other provision of this Indenture or any Subordinated Note other than a provision
in any Subordinated Note or in the Board Resolution, Officers’ Certificate or supplemental indenture establishing the terms
of any Subordinated Note that specifically states that such provision will apply in lieu hereof) payment need not be made at such
Place of Payment on such date, but such payment may be made on the next succeeding day that is a Business Day at such Place of
Payment with the same force and effect as if made on the Interest Payment Date, at the Stated Maturity or Maturity or on any such
other payment date, as the case may be, and no interest will accrue on the amount payable on such date or at such time for the
period from and after such Interest Payment Date, Stated Maturity, Maturity or other payment date, as the case may be, to the next
succeeding Business Day,

 

		Section 1.13	Counterparts;
Electronic Transmission.

 

This Indenture may
be executed in several counterparts, each of which will be an original and all of which will constitute but one and the same instrument.
Any facsimile or electronically transmitted copies hereof or signature hereon will, for all purposes, be deemed originals.

 

		Section 1.14	Immunity of Certain Persons.

 

No recourse under or
upon any obligation, covenant or agreement contained in this Indenture, or in any Subordinated Note, or because of any indebtedness
evidenced thereby, will be had against any past, present or future shareholder, employee, officer or director, as such, of the
Company or Trustee or of any predecessor or successor, either directly or through the Company or Trustee or any predecessor or
successor, under any rule 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 the Subordinated
Notes by the Holders and as part of the consideration for the issue of the Subordinated Notes.

 

		Section 1.15	Waiver
of Jury Trial.

 

EACH PARTY HERETO IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY
OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SUBORDINATED NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

		Section 1.16	Force
Majeure.

 

In no event will the
Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused
by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee will
use reasonable efforts that are consistent with accepted practices in the banking industry to resume performance as soon as practicable
under the circumstances.

 

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		Section 1.17	No Sinking
Fund.

 

The Subordinated Notes
are not entitled to the benefit of any sinking fund.

 

		Section 1.18	Rules of Construction.

 

Unless the context
otherwise requires:

 

(1)              
a term has the meaning assigned to it;

 

(2)              
an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(3)              
“or” is not exclusive;

 

(4)              
words in the singular include the plural, and in the plural include the singular;

 

(5)              
“including” means including without limitation;

 

(6)              
“will” will be interpreted to express a command;

 

(7)              
provisions apply to successive events and transactions;

 

(8)              
references to sections of, or rules under, the Securities Act will be deemed to include substitute, replacement or
successor sections or rules adopted by the Commission from time to time;

 

(9)              
unless the context otherwise requires, any reference to an “Article,” “Section” or “clause”
refers to an Article, Section or clause, as the case may be, of this Indenture; and

 

(10)            
the words “herein,” “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not any particular Article, Section, clause or other subdivision.

 

ARTICLE
II

THE SUBORDINATED NOTES

 

		Section 2.01	Forms Generally.

 

The Subordinated Notes
and the Trustee’s certificate of authentication will be substantially in the form of Exhibit A-l and Exhibit A-2,
as applicable, which are a part of this Indenture. The Subordinated Notes may have notations, legends or endorsements required
by law, stock exchange rule or usage (provided that any such notation, legend or endorsement is in a form acceptable to the Company).
The Company will provide any such notations, legends or endorsements to the Trustee in writing. Each Subordinated Note will be
dated the date of its authentication. The terms and provisions contained in the Subordinated Notes will constitute, and are hereby
expressly made a part of this Indenture and the Company and the Trustee, by their execution and delivery of this Indenture, agree
to such terms and provisions and to be bound thereby. However, to the extent any provision of any Subordinated Note irreconcilably
conflicts with the express provisions of this Indenture, the provisions of this Indenture will govern and be controlling.

 

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		Section 2.02	Definitive
Subordinated Notes.

 

The Initial Notes will
be issued initially in the form of one or more Definitive Subordinated Notes, unless, before the issuance of such Exchange Notes,
the Company has determined that the Initial Notes may be represented by Global Subordinated Notes and has so notified the Trustee,
in which event the Initial Notes will be issued in the form of one or more Global Subordinated Notes. The Exchange Notes will also
be issued initially in the form of one or more Definitive Subordinated Notes, unless, before the issuance of such Exchange Notes,
the Company has determined that the Subordinated Notes may be represented by Global Subordinated Notes and has so notified the
Trustee, in which event the Exchange Notes will be issued in the form of one or more Global Subordinated Notes. Except as provided
in Section 2.07, Holders of Definitive Subordinated Notes will not be entitled to transfer Definitive Subordinated Notes
in exchange for beneficial interests in Global Subordinated Notes, and owners of beneficial interests in Global Subordinated Notes
will not be entitled to receive physical delivery of Definitive Subordinated Notes.

 

		Section 2.03	Global
Subordinated Notes.

 

Each Global Subordinated
Note issued under this Indenture will be deposited with the Trustee at its Corporate Trust Office, as custodian for the Depositary,
and registered in the name of the Depositary or the nominee thereof, duly executed by the Company and authenticated by the Trustee
as hereinafter provided. The aggregate principal amount of any Global Subordinated Note may from time to time be increased or decreased
by adjustments made on the records of the Trustee and the Depositary as hereinafter provided. Any adjustment of the aggregate principal
amount of a Global Subordinated Note to reflect the amount of any increase or decrease in the amount of outstanding Subordinated
Notes represented thereby will be made by the Trustee in accordance with written instructions given by the Holder thereof as required
by Section 2.07 hereof and will be made on the records of the Trustee and the Depositary.

 

		Section 2.04	Restricted
Subordinated Notes.

 

Each Restricted Definitive
Subordinated Note and Restricted Global Subordinated Note will bear a legend in substantially the following form:

 

“THE SECURITIES
REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT (A) PURSUANT
TO, AND IN ACCORDANCE WITH, A REGISTRATION STATEMENT THAT IS EFFECTIVE UNDER THE SECURITIES ACT AT THE TIME OF SUCH TRANSFER; (B)
TO A PERSON THAT YOU REASONABLY BELIEVE TO BE A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT OR TO A PERSON THAT YOU REASONABLY BELIEVE TO BE AN INSTITUTIONAL ACCREDITED INVESTOR AS DEFINED IN RULE 501(A)(1), (2), (3)
OR (7) OF REGULATION D UNDER THE SECURITIES ACT; OR (C) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT (INCLUDING, IF AVAILABLE, THE EXEMPTION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT).”

 

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The Private Placement
Legend set forth above will be removed and a new Subordinated Note of like tenor and principal amount without such Private Placement
Legend will be executed by the Company, and upon written request of the Company (together with an Officers’ Certificate and
an Opinion of Counsel) given at least three Business Days prior to the proposed authentication date, the Trustee will authenticate
and deliver such new Subordinated Note to the respective Holder, if legal counsel to the Holder or owner of beneficial interests
requesting the removal of such Private Placement Legend deliver to the Trustee, any Registrar and Paying Agent (if a different
Person than the Trustee) and the Company an opinion of counsel in compliance with this Indenture and additionally opining that
the restrictive legend can be removed in connection with the transfer in accordance with the Securities Act.

 

		Section 2.05	Execution
and Authentication.

 

Subordinated Notes
will be executed on behalf of the Company by any Authorized Officer and may (but need not) have the Company’s corporate seal
or a facsimile thereof reproduced thereon. The signature of an Authorized Officer on the Subordinated Notes may be manual or facsimile.
Subordinated Notes bearing the manual or facsimile signatures of individuals who were at the time of execution Authorized Officers
of the Company will, to the fullest extent permitted by law, bind the Company, notwithstanding that such individuals or any of
them have ceased to hold such offices prior to the authentication and delivery of such Subordinated Notes or did not hold such
offices at the date of such Subordinated Notes.

 

The Trustee or an Authenticating
Agent will authenticate and deliver the Initial Notes for original issue in an initial aggregate principal amount of up to $72,750,000
upon one or more Company Orders and an Opinion of Counsel. In addition, the Trustee or an Authenticating Agent will upon receipt
of a Company Order, Opinion of Counsel and Officers’ Certificate authenticate and deliver any Exchange Notes for an initial
aggregate principal amount not to exceed $72,750,000 specified in such Company Order for Exchange Notes issued hereunder. The aggregate
principal amount of the Outstanding Subordinated Notes to be issued hereunder may be increased at any time hereafter and the series
may be reopened for issuances of additional Subordinated Notes upon Company Order without the consent of any Holder. The Subordinated
Notes issued on the date hereof and any such additional Subordinated Notes that may be issued hereafter shall be part of the same
series of Subordinated Notes for all purposes under the Indenture. Unless the context otherwise requires, the initial Subordinated
Notes and the Exchange Notes shall constitute one series for all purposes under the Indenture, including with respect to any amendment,
waiver, acceleration or other Act of the Holders or upon redemption of the Subordinated Notes. The Subordinated Notes will be issued
only in registered form without coupons and in minimum denominations of $1,000 and any integral multiple of $1,000 in excess thereof.

 

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The Trustee will not
be required to authenticate any Subordinated Notes if the issue of such Subordinated Notes under this Indenture will affect the
Trustee’s own rights, duties or immunities under the Subordinated Notes and this Indenture or otherwise in a manner that
is not reasonably acceptable to the Trustee or if the Trustee, being advised by counsel, determines that such action may not lawfully
be taken.

 

No Subordinated Note
will be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there appears on such Subordinated
Note a certificate of authentication substantially in the form provided for herein executed by or on behalf of the Trustee or by
the Authenticating Agent by the manual signature of one of its authorized signatories. Such certificate upon any Subordinated Note
will be conclusive evidence, and the only evidence, that such Subordinated Note has been duly authenticated and delivered hereunder.

 

		Section 2.06	Registrar and Paying
Agent.

 

The Company will maintain
an office or agency where Subordinated Notes may be presented for registration of transfer or for exchange (“Registrar”)
and an office or agency where Subordinated Notes may be presented for payment (“Paying Agent”). The Registrar
will keep a register of the Subordinated Notes (“Subordinated Note Register”) and of their transfer and exchange.
The registered Holder of a Subordinated Note will be treated as the owner of the Subordinated Note for all purposes. The Company
may appoint one or more co-registrars and one or more additional paying agents. The term “Registrar” includes any co-registrar
and the term “Paying Agent” includes any additional paying agent. The Company may change any Paying Agent or Registrar
without prior notice to any Holder; provided that no such removal or replacement will be effective until a successor Paying Agent
or Registrar will have been appointed by the Company and will have accepted such appointment. The Company will notify the Trustee
in writing of the name and address of any Registrar or Paying Agent not a party to this Indenture. If the Company fails to appoint
or maintain another entity as Registrar or Paying Agent, the Trustee will act as such. The Company or any of its Subsidiaries may
act as Paying Agent or Registrar.

 

The Company initially
appoints the Trustee to act as the Paying Agent and Registrar for the Subordinated Notes and, in the event that any Subordinated
Notes are issued in global form, to initially act as custodian with respect to the Global Subordinated Notes. In the event that
the Trustee will not be or will cease to be Registrar with respect the Subordinated Notes, it will have the right to examine the
Subordinated Note Register at all reasonable times. There will be only one Subordinated Note Register.

 

		Section 2.07	Registration of
Transfer and Exchange.

 

(1)              
Except as otherwise provided in or under this Indenture, upon surrender for registration of transfer of any Subordinated
Note, the Company will execute, and the Trustee will, upon receipt of a Company Order, authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Subordinated Notes denominated as authorized in or under this Indenture,
of a like aggregate principal amount bearing a number not contemporaneously outstanding and containing identical terms and provisions.

 

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Except as otherwise
provided in or under this Indenture, at the option of the Holder, Subordinated Notes may be exchanged for other Subordinated Notes
containing identical terms and provisions, in any authorized denominations (minimum denominations of $1,000 and any integral multiple
of $1,000 in excess thereof), and of a like aggregate principal amount, upon surrender of the Subordinated Notes to be exchanged
at any office or agency for such purpose. Whenever any Subordinated Notes are so surrendered for exchange, the Company will execute,
and the Trustee will authenticate and deliver, subject to the terms hereof, the Subordinated Notes that the Holder making the exchange
is entitled to receive.

 

All Subordinated Notes
issued upon any registration of transfer or exchange of Subordinated Notes will be the valid obligations of the Company evidencing
the same debt and entitling the Holders thereof to the same benefits under this Indenture as the Subordinated Notes surrendered
upon such registration of transfer or exchange.

 

Every Subordinated
Note presented or surrendered for registration of transfer or for exchange or redemption will (if so required by the Company or
the Registrar for such Subordinated Note) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory
to the Company and the Registrar for such Subordinated Note duly executed by the Holder thereof or his attorney duly authorized
in writing.

 

No service charge will
be made for any registration of transfer or exchange of Subordinated Notes, or any redemption or repayment of Subordinated Notes,
or any conversion or exchange of Subordinated Notes for other types of securities or property, but the 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 the Subordinated Notes from the Holder requesting such transfer or exchange.

 

Except as otherwise
provided in or under this Indenture, the Company will not be required (i) to issue, register the transfer of or exchange any Subordinated
Notes during a period beginning at the opening of business 15 days before the day of the selection for redemption of Subordinated
Notes under Section 10.03 and ending at the close of business on the day of such selection, or (ii) to register the transfer
of or exchange any Subordinated Note, or portion thereof, so selected for redemption, except in the case of any Subordinated Note
to be redeemed in part, the portion thereof not to be redeemed.

 

Any Registrar (if not
the Trustee) appointed in accordance with Section 2.06 hereof will provide to the Trustee such information as the Trustee
may reasonably require in connection with the delivery by such Registrar of Subordinated Notes upon transfer or exchange of Subordinated
Notes. No Registrar will be required to make registrations of transfer or exchange of Subordinated Notes during any periods designated
in the Subordinated Notes or in this Indenture as periods during which such registration of transfers and exchanges need not be
made.

 

The Trustee and the
Registrar will have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed
under this Indenture or under applicable law with respect to any transfer of any interest in any Subordinated Note (including any
transfers between or among Depositary participants or beneficial owners of interests in any Global Subordinated Note) other than
to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and
when expressly required by the terms of, this Indenture.

 

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Neither the Trustee
nor any Paying Agent will have any responsibility for any actions taken or not taken by the Depositary.

 

(2)              
When Definitive Subordinated Notes are presented by a Holder to the Registrar with a request to register the transfer
of such Definitive Subordinated Notes or to exchange such Definitive Subordinated Notes for an equal principal amount of Definitive
Subordinated Notes of other authorized denominations, the Registrar will register the transfer or make the exchange as requested
if its reasonable requirements for such transaction are met; provided, however, that the Definitive Subordinated
Notes surrendered for transfer or exchange will be duly endorsed or accompanied by a written instrument of transfer in form reasonably
satisfactory to the Company and the Registrar, duly executed by the Holder thereof or such Holder’s attorney duly authorized
in writing.

 

(3)              
A Global Subordinated Note may not be transferred except by the Depositary to a nominee of the Depositary, by a nominee
of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor
Depositary or a nominee of such successor Depositary. All Global Subordinated Notes will be exchanged by the Company for Definitive
Subordinated Notes if: (i) the Depositary has notified the Company that it is unwilling or unable to continue as Depositary for
such Global Subordinated Note or such Depositary has ceased to be a “clearing agency” registered under the Exchange
Act, and a successor depositary is not appointed by the Company within 90 days, (ii) the Company determines that the Subordinated
Notes are no longer to be represented by Global Subordinated Notes and so notifies the Trustee in writing, or (iii) an Event of
Default has occurred and is continuing with respect to the Subordinated Notes and the Depositary or its participant(s) has requested
the issuance of Definitive Subordinated Notes.

 

Any Global Subordinated
Note exchanged in accordance with clause (i) or (ii) above will be so exchanged in whole and not in part, and any Global Subordinated
Note exchanged in accordance with clause (iii) above may be exchanged in whole or from time to time in part as directed by the
Depositary.

 

Upon the occurrence
of any of the preceding events in (i), (ii) or (iii) above, Definitive Subordinated Notes will be issued in fully registered form,
without interest coupons, will have an aggregate Principal Amount equal to that of the Global Subordinated Note or portion thereof
to be so exchanged, will be registered in such names and be in such authorized denominations as the Depositary will instruct the
Trustee in writing and will bear such legends as provided herein. Global Subordinated Notes also may be exchanged or replaced,
in whole or in part, as provided in Section 2.09 hereof. Every Subordinated Note authenticated and delivered in exchange
for, or in lieu of, a Global Subordinated Note or any portion thereof, in accordance with this Section 2.07 or Section
2.09 hereof, will be authenticated and delivered in the form of, and will be, a Global Subordinated Note, except as otherwise
provided herein. A Global Subordinated Note may not be exchanged for another Subordinated Note other than as provided in this Section
2.07(3); however, beneficial interests in a Global Subordinated Note may be transferred and exchanged as provided in Section
2.07(4) hereof.

 

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Any Global Subordinated
Note to be exchanged in whole will be surrendered by the Depositary to the Trustee. With regard to any Global Subordinated Note
to be exchanged in part, either such Global Subordinated Note will be so surrendered for exchange or, if the Trustee is acting
as custodian for the Depositary or its nominee with respect to such Global Subordinated Note, the principal amount thereof will
be reduced, by an amount equal to the portion thereof to be so exchanged, by means of an appropriate adjustment made on the records
of the Trustee. Upon any such surrender or adjustment, the Trustee will authenticate and deliver the Subordinated Note issuable
on such exchange to or upon the order of the Depositary or an authorized representative thereof.

 

(4)              
The transfer and exchange of beneficial interests in the Global Subordinated Notes will be effected through the Depositary
in accordance with the Applicable Procedures and this Section 2.07.

 

(5)              
A Definitive Subordinated Note may not be exchanged for a beneficial interest in a Global Subordinated Note unless
the Company determines that the Subordinated Notes may be represented by Global Subordinated Notes and so notifies the Trustee.
After the Company has determined that the Subordinated Notes may be represented by Global Subordinated Notes and so notifies the
Trustee in writing, then upon receipt by the Trustee of a Definitive Subordinated Note, duly endorsed or accompanied by appropriate
instruments of transfer, in form satisfactory to the Trustee, together with written instructions from such Holder directing the
Trustee to make, or to direct the Registrar to make, an adjustment on its books and records with respect to such Global Subordinated
Note to reflect an increase in the aggregate principal amount of the Subordinated Notes represented by the Global Subordinated
Note, such instructions to contain information regarding the Depositary account to be credited with such increase, the Trustee
will cancel such Definitive Subordinated Note and cause, or direct the Registrar to cause, in accordance with the standing instructions
and procedures existing between the Depositary and the Registrar, the aggregate principal amount of Subordinated Notes represented
by the Global Subordinated Note to be increased by the aggregate principal amount of the Definitive Subordinated Note to be exchanged,
and will credit or cause to be credited to the account of the Person specified in such instructions a beneficial interest in the
Global Subordinated Note equal to the principal amount of the Definitive Subordinated Note so cancelled. If no Global Subordinated
Notes are then outstanding, the Company will issue and the Trustee will authenticate, upon Company Order, a new Global Subordinated
Note in the appropriate principal amount.

 

(6)              
At such time as all beneficial interests in a particular Global Subordinated Note have been exchanged for Definitive
Subordinated Notes or a particular Global Subordinated Note has been repurchased or canceled in whole and not in part, each such
Global Subordinated Note will be returned to or retained and canceled by the Trustee in accordance with Section 2.12 hereof.
At any time prior to such cancellation, if any beneficial interest in a Global Subordinated Note is exchanged for or transferred
to a Person who will take delivery thereof in the form of a beneficial interest in another Global Subordinated Note or for Definitive
Subordinated Notes, the principal amount of Subordinated Notes represented by such Global Subordinated Note will be reduced accordingly
by adjustments made on the records of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged
for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Subordinated
Note, such other Global Subordinated Note will be increased accordingly by adjustments made on the records of the Trustee to reflect
such increase.

 

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(7)              
No Restricted Subordinated Note will be transferred or exchanged except in compliance with the Private Placement
Legend or as provided in accordance with Section 2.08. In addition to the provisions for transfer and exchange set forth
in this Section 2.07, the Trustee, any Registrar and Paying Agent (if a different Person than the Trustee) and the Company
may, prior to effecting any requested transfer or exchange of any Restricted Subordinated Notes, other than an exchange in accordance
with Section 2.08, require that legal counsel to the Holder or owner of beneficial interests requesting such transfer or
exchange deliver to the Trustee, any Registrar and Paying Agent (if a different Person than the Trustee) and the Company, an Opinion
of Counsel in compliance with this Indenture and additionally opining that the transfer or exchange is in compliance with the requirements
of the Private Placement Legend and that the Subordinated Note issued to the transferee or in exchange for the Restricted Subordinated
Note may be issued free of the Private Placement Legend. Any untransferred or unexchanged balance of a Restricted Subordinated
Note will be reissued to the Holder with the Private Placement Legend, unless the Private Placement Legend may be omitted in accordance
with Section 2.04, as evidenced by the Opinion of Counsel.

 

		Section 2.08	Exchange
Offer.

 

Upon the occurrence
of an Exchange Offer in accordance with the Registration Rights Agreement, the Company will issue and, upon receipt of a Company
Order in accordance with Section 2.05 hereof, the Trustee will authenticate (i) Unrestricted Definitive Subordinated Notes
in aggregate principal amounts equal to the principal amounts of the Restricted Definitive Subordinated Notes tendered in such
Exchange Offer for acceptance by Persons that certify in the applicable Letters of Transmittal that (x) they are not Participating
Broker-Dealers, (y) they are not participating in a distribution of the applicable Exchange Notes and (z) they are not Affiliates
of the Company, and accepted for exchange in such Exchange Offer or, if permitted by the Company, (ii) one or more Unrestricted
Global Subordinated Notes in an aggregate principal amount equal to the aggregate principal amount of the beneficial interests
in the Restricted Global Subordinated Notes tendered in such Exchange Offer for acceptance by Persons that certify in the applicable
Letters of Transmittal that (x) they are not Participating Broker-Dealers, (y) they are not participating in a distribution of
the applicable Exchange Notes and (z) they are not Affiliates of the Company, and accepted for exchange in such Exchange Offer.
Concurrently with the issuance of such Unrestricted Global Subordinated Notes upon exchange of Restricted Global Subordinated Notes,
the Trustee will cause the aggregate principal amount of the applicable Restricted Global Subordinated Notes to be reduced accordingly,
and the Company will execute and the Trustee will authenticate and deliver to the Persons designated by the Holders of Restricted
Definitive Subordinated Notes so accepted Unrestricted Definitive Subordinated Notes in the applicable principal amount. Any Subordinated
Notes that remain outstanding after the consummation of such Exchange Offer, and Exchange Notes issued in connection with such
Exchange Offer, will be treated as a single class of securities under this Indenture.

 

    27

     

    

 

		Section 2.09	Mutilated, Destroyed,
Lost and Stolen Subordinated Notes.

 

If any mutilated Subordinated
Note is surrendered to the Trustee, subject to the provisions of this Section 2.09, the Company will execute and the Trustee
will authenticate and deliver in exchange therefor a new Subordinated Note containing identical terms and of like principal amount
and bearing a number not contemporaneously outstanding.

 

If there be delivered
to the Company and to the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Subordinated Note,
and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then,
in the absence of notice to the Company or the Trustee that such Subordinated Note has been acquired by a bona fide purchaser,
the Company will execute and, upon the Company’s written instruction the Trustee will authenticate and deliver, in exchange
for or in lieu of any such destroyed, lost or stolen Subordinated Note, a new Subordinated Note containing identical terms and
of like principal amount and bearing a number not contemporaneously outstanding.

 

Notwithstanding the
foregoing provisions of this Section 2.09, in case the outstanding principal balance of any mutilated, destroyed, lost or
stolen Subordinated Note has become or is about to become due and payable, or is about to be redeemed by the Company pursuant to
Article X hereof, the Company in its discretion may, instead of issuing a new Subordinated Note, pay or redeem such Subordinated
Note, as the case may be.

 

Upon the issuance of
any new Subordinated Note under this Section, the Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith.

 

Every new Subordinated
Note issued in accordance with this Section in lieu of any destroyed, lost or stolen Subordinated Note will constitute a separate
obligation of the Company, whether or not the destroyed, lost or stolen Subordinated Note will be at any time enforceable by anyone,
and will be entitled to all the benefits of this Indenture equally and proportionately with any and all other Subordinated Notes
duly issued hereunder.

 

The provisions of this
Section, as amended or supplemented in accordance with this Indenture with respect to particular Subordinated Notes or generally,
will (to the extent lawful) be exclusive and will preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Subordinated Notes.

 

		Section 2.10	Payment of Interest;
Rights to Interest Preserved.

 

Any interest on any
Subordinated Note that will be payable, and punctually paid or duly provided for, on any Interest Payment Date will be paid to
the Person in whose name such Subordinated Note is registered on the Regular Record Date for such Interest Payment Date.

 

Any interest on any
Subordinated Note that will be payable, but will not be punctually paid or duly provided for, on any Interest Payment Date for
such Subordinated Note (herein called “Defaulted Interest”) will cease to be payable to the Holder thereof on
the relevant Regular Record Date by virtue of having been such Holder; and such Defaulted Interest may be paid by the Company,
at its election in each case, as provided in clause (1) or (2) below:

 

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(1)              
The Company may elect to make payment of any Defaulted Interest to the Person in whose name such Subordinated Note
will be registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which will be
fixed in the following manner:

 

The Company will notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on such Subordinated Note and the date of the proposed
payment, and at the same time the Company will deposit with the Trustee an amount of money equal to the aggregate amount proposed
to be paid in respect of such Defaulted Interest or will make arrangements satisfactory to the Trustee for such deposit on or prior
to the date of the proposed payment, such money when so deposited to be held in trust for the benefit of the Person entitled to
such Defaulted Interest as in this clause provided. Thereupon, the Company will fix or cause to be fixed a Special Record Date
for the payment of such Defaulted Interest, which will be not more than 15 days and not less than 10 days prior to the date of
the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Company
(or, upon the written request of the Company, the Trustee in the name and at the expense of the Company), will cause notice of
the proposed payment of such Defaulted Interest and the Special Record Date therefor to be delivered to the Holder of such Subordinated
Note at the Holder’s address as it appears in the Subordinated Note Register not less than 10 days prior to such Special
Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been delivered
as aforesaid, such Defaulted Interest will be paid to the Person in whose name such Subordinated Note will be registered at the
close of business on such Special Record Date and will no longer be payable under the following clause (2).

 

(2)              
The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements
of any securities exchange on which such Subordinated Note may be listed, and upon such notice as may be required by such exchange,
if, after written notice given by the Company to the Trustee of the proposed payment under this Clause, such payment will be deemed
practicable by the Trustee.

 

Unless otherwise provided
in or under this Indenture or the Subordinated Notes, at the option of the Company, interest on Subordinated Notes that bear interest
may be paid by mailing a check to the address of the Person entitled thereto as such address will appear in the Subordinated Note
Register or by transfer to an account maintained by the payee with a bank located in the United States.

 

Subject to the foregoing
provisions of this Section and Section 2.07, each Subordinated Note delivered under this Indenture upon registration of
transfer of or in exchange for or in lieu of any other Subordinated Note will carry the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Subordinated Note.

 

    29

     

    

 

		Section 2.11	Persons
Deemed Owners.

 

Prior to due presentment
of a Subordinated Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name such Subordinated Note is registered in the Subordinated Note Register as the owner of such Subordinated
Note for the purpose of receiving payment of principal of, and (subject to Section 2.07 and Section 2.10) interest
on, such Subordinated Note and for all other purposes whatsoever, whether or not any payment with respect to such Subordinated
Note will be overdue, and neither the Company, the Trustee or any agent of the Company or the Trustee will be affected by notice
to the contrary.

 

No holder of any beneficial
interest in any Global Subordinated Note held on its behalf by a Depositary will have any rights under this Indenture with respect
to such Global Subordinated Note, and such Depositary may be treated by the Company, the Trustee, and any agent of the Company
or the Trustee as the owner of such Global Subordinated Note for all purposes whatsoever. None of the Company, the Trustee, any
Paying Agent or the Registrar will have any responsibility or liability for any aspect of the records relating to or payments made
on account of beneficial ownership interests of a Global Subordinated Note or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.

 

Notwithstanding the
foregoing, nothing herein will prevent the Company, the Trustee, any Paying Agent or the Registrar from giving effect to any written
certification, proxy or other authorization furnished by the applicable Depositary, as a Holder, with respect to a Global Subordinated
Note or impair, as between such Depositary and the owners of beneficial interests in such Global Subordinated Note, the operation
of customary practices governing the exercise of the rights of such Depositary (or its nominee) as the Holder of such Global Subordinated
Note.

 

		Section 2.12	Cancellation.

 

All Subordinated Notes
surrendered for payment, redemption, registration of transfer or exchange will, if surrendered to any Person other than the Trustee,
be delivered to the Trustee, and any such Subordinated Note, as well as Subordinated Notes surrendered directly to the Trustee
for any such purpose, will be cancelled promptly by the Trustee. The Company may at any time deliver to the Trustee for cancellation
any Subordinated Notes previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever,
and all Subordinated Notes so delivered will be cancelled promptly by the Trustee. No Subordinated Notes will be authenticated
in lieu of or in exchange for any Subordinated Notes cancelled as provided in this Section, except as expressly permitted by or
under this Indenture. All cancelled Subordinated Notes held by the Trustee will be disposed of in accordance with its procedure
for the disposition of cancelled Subordinated Notes, and the Trustee upon the written request of the Company will deliver to the
Company a certificate of such disposition, unless by a Company Order the Company shall direct that cancelled Subordinated Notes
shall be returned to the Company.

 

		Section 2.13	Computation of Interest.

 

From and including
the original issue date of the Subordinated Notes, or from the most recent date to which interest has been paid or duly provided
for, to but excluding September 30, 2024, the rate at which the Subordinated Notes shall bear interest shall be 5.00% per annum,
computed on the basis of a 360-day year consisting of twelve 30-day months and payable semiannually in arrears on each Fixed Interest
Payment Date, beginning on March 30, 2020. From and including September 30, 2024, to but excluding the Stated Maturity or at any
Redemption Date, the rate at which the Subordinated Notes shall bear interest shall be a floating rate per annum, reset quarterly,
equal to the Floating Interest Rate determined by the Calculation Agent on the Floating Interest Determination Date for the applicable
Floating Interest Period plus 361 basis points, computed on the basis of a 360-day year and the actual number of days elapsed and
payable quarterly in arrears on each Floating Interest Payment Date. Any payment of principal of or interest on the Subordinated
Notes that would otherwise become due and payable on a day which is not a Business Day will 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.

 

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		Section 2.14	CUSIP
Numbers.

 

The Company may issue
the Subordinated Notes with one or more “CUSIP” numbers (if then generally in use). The Company will promptly notify
the Trustee in writing of any change in the CUSIP numbers. The Trustee may use “CUSIP” numbers in notices (including
but not limited to notices of redemption or exchange) as a convenience to Holders; provided that any such notice may state
that no representation is made as to the correctness of such numbers either as printed on the Subordinated Notes or as contained
in any notice (including any notice of redemption or exchange) and that reliance may be placed only on the other identification
numbers printed on the Subordinated Notes, and any such notice will not be affected by any defect in or omission of such numbers.

 

ARTICLE
III

SATISFACTION AND DISCHARGE OF INDENTURE

 

		Section 3.01	Satisfaction
and Discharge.

 

This Indenture will
cease to be of further effect, and the Trustee, on receipt of a Company Order, at the expense of the Company, will execute proper
instruments acknowledging satisfaction and discharge of this Indenture, when:

 

(1)              
either:

 

(a)              
all Subordinated Notes theretofore authenticated and delivered (other than (i) Subordinated Notes that have been
destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.09 and (ii) Subordinated Notes for
whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid
to the Company or discharged from such trust, as provided in Section 9.03) have been delivered to the Trustee for cancellation;
or

 

(b)              
all Subordinated Notes that have not been delivered to the Trustee for cancellation (i) have become due and payable,
or (ii) will become due and payable at their Stated Maturity within one year, or (iii) if redeemable at the option of the Company,
are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption
by the Trustee in the name, and at the expense, of the Company, and the Company, in the case of (i), (ii) or (iii) above, has deposited
or caused to be deposited with the Trustee as trust funds in trust for such purpose, an amount sufficient to pay and discharge
the entire indebtedness on such Subordinated Notes not theretofore delivered to the Trustee for cancellation, including the principal
of, and interest on, such Subordinated Notes, to the date of such deposit (in the case of Subordinated Notes which have become
due and payable) or to the Maturity thereof, as the case may be;

 

    31

     

    

 

(2)              
the Company has paid or caused to be paid all other sums payable hereunder by the Company with respect to the Outstanding
Subordinated Notes; and

 

(3)              
the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been satisfied.

 

Notwithstanding the
satisfaction and discharge of this Indenture with respect to the Subordinated Notes, the obligations of the Company to the Trustee
under Section 5.07 and, if money will have been deposited with the Trustee in accordance with Section 3.01(1)(b),
the obligations of the Company and the Trustee with respect to the Subordinated Notes under Section 3.03 and Section
9.03 will survive.

 

		Section 3.02	Defeasance
and Covenant Defeasance.

 

(1)              
The Company may at its option and at any time, elect to have Section 3.02(2) or Section 3.02(3) be
applied to such Outstanding Subordinated Notes upon compliance with the conditions set forth below in this Section 3.02.
Legal Defeasance and Covenant Defeasance may be effected only with respect to all, and not less than all, of the Outstanding Subordinated
Notes.

 

(2)              
Upon the Company’s exercise of the above option applicable to this Section 3.02(2), the Company will
be deemed to have been discharged from its obligations with respect to such Outstanding Subordinated Notes on the date the conditions
set forth in clause (4) of this Section 3.02 are satisfied (“Legal Defeasance”). For this purpose, Legal
Defeasance means that the Company will be deemed to have paid and discharged the entire indebtedness represented by such Outstanding
Subordinated Notes, which will thereafter be deemed to be “Outstanding” only for the purposes of Section 3.02(5)
and the other Sections of this Indenture referred to in clauses (i) through (iv) of this paragraph, and to have satisfied all of
its other obligations under such Subordinated Notes and this Indenture insofar as such Subordinated Notes are concerned (and the
Trustee, at the expense of the Company, will execute proper instruments acknowledging the same), except for the following which
will survive until otherwise terminated or discharged hereunder: (i) the rights of Holders of such Outstanding Subordinated Notes
to receive, solely from the trust fund described in Section 3.02(4)(a) and as more fully set forth in this Section 3.02
and Section 3.03, payments in respect of the principal of and interest, if any, on, such Subordinated Notes when such payments
are due, (ii) the obligations of the Company and the Trustee with respect to such Subordinated Notes under Section 2.07,
Section 2.09, Section 9.02 and Section 9.03, (iii) the rights, powers, trusts, duties and immunities of the
Trustee hereunder and (iv) this Section 3.02 and Section 3.03. The Company may exercise its option under this Section
3.02(2) notwithstanding the prior exercise of its option under Section 3.02(3) with respect to such Subordinated Notes.

 

    32

     

    

 

(3)              
Upon the Company’s exercise of the above option applicable to this Section 3.02(3), the Company will
be released from its obligations under Section 9.04 (except with respect to clause (i)), Section 9.05. Section 9.08
and Section 9.09 on and after the date the conditions set forth in Section 3.02(4) are satisfied (“Covenant
Defeasance”), and such Subordinated Notes will thereafter be deemed to be not “Outstanding” for the purposes
of any direction, waiver, consent or declaration or Act of Holders (and the consequences of any thereof) in connection with any
such covenant, but will continue to be deemed “Outstanding” for all other purposes hereunder. For this purpose, such
Covenant Defeasance means that with respect to such Outstanding Subordinated Notes, the Company may omit to comply with, and will
have no liability in respect of. any term, condition or limitation set forth in any such Section or any such other covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such Section or such other covenant or by reason of
reference in any such Section or such other covenant to any other provision herein or in any other document and such omission to
comply will not constitute a default, but, except as specified above, the remainder of this Indenture and such Subordinated Notes
will be unaffected thereby.

 

(4)              
The following will be the conditions to application of Section 3.02(2) or Section 3.02(3) to any Outstanding
Subordinated Notes:

 

(a)              
The Company will irrevocably have deposited or caused to be deposited with the Trustee (or another trustee satisfying
the requirements of Section 5.08 who will agree to comply with the provisions of this Section 3.02 applicable to
it) as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders, (i) an amount in Dollars, (ii) Government Obligations that through the scheduled payment
of principal and interest in respect thereof in accordance with their terms will provide, not later than one day before the due
date of any payment of principal of and interest, if any, on such Subordinated Notes, money or (iii) a combination thereof, in
any case, in an amount, sufficient, without consideration of any reinvestment of such principal and interest, in the opinion of
a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee,
to pay and discharge, and which will be applied by the Trustee (or other qualifying trustee) to pay and discharge, the principal
of and interest, if any, on, such Outstanding Subordinated Notes on the Stated Maturity of such principal or installment of principal
or interest or the applicable Redemption Date, as the case may be.

 

(b)              
Such Legal Defeasance or Covenant Defeasance will not result in a breach or violation of, or constitute a default
under, this Indenture or any other material agreement or instrument to which the Company or any Subsidiary is a party or by which
it is bound.

 

(c)              
No Event of Default or event which with notice or lapse of time or both would become an Event of Default with respect
to such Subordinated Notes will have occurred and be continuing on the date of such deposit, and, solely in the case of Legal Defeasance
under Section 3.02(2), no Event of Default, or event which with notice or lapse of time or both would become an Event of
Default, under Section 4.01 will have occurred and be continuing at any time during the period ending on and including the
91st day after the date of such deposit (it being understood that this condition
to Legal Defeasance under Section 3.02(2) will not be deemed satisfied until the expiration of such period).

 

    33

     

    

 

(d)              
In the case of Legal Defeasance, the Company will have delivered to the Trustee an Opinion of Counsel stating that
(i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (ii) since the date
of this Indenture there has been a change in applicable federal income tax law, in either case to the effect that, and based thereon
such opinion of independent counsel will confirm that, the Holders of such Outstanding Subordinated Notes will not recognize income,
gain or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on
the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred.

 

(e)               
In the case of Covenant Defeasance, the Company will have delivered to the Trustee an Opinion of Counsel to the effect
that the Holders of such Outstanding Subordinated Notes will not recognize income, gain or loss for federal income tax purposes
as a result of such Covenant Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such Covenant Defeasance had not occurred.

 

(f)               
The Company will have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that all conditions precedent to the Legal Defeasance or Covenant Defeasance, as the case may be, under this Indenture have been
satisfied.

 

(g)              
If the moneys or Government Obligations or combination thereof, as the case may be, deposited under Section 3.02(4)(a)
above are sufficient to pay the principal of, and interest, if any, on, such Subordinated Notes provided such Subordinated Notes
are redeemed on a particular Redemption Date, the Company will have given the Trustee irrevocable instructions to redeem such Subordinated
Notes on such date and to provide notice of such redemption to Holders as provided in or under this Indenture.

 

(h)              
The Trustee will have received such other documents, assurances and Opinions of Counsel as the Trustee will have
reasonably required in its discretion.

 

(5)               
Subject to the provisions of the last paragraph of Section 9.03, all money and Government Obligations deposited
with the Trustee (or other qualifying trustee, collectively for purposes of this Section 3.02(5), the “Trustee”)
in accordance with Section 3.02(4)(a) in respect of any Outstanding Subordinated Notes will be held in trust and applied
by the Trustee, in accordance with the provisions of such Subordinated Notes and this Indenture, to the payment, either directly
or through any Paying Agent (other than the Company or any Subsidiary or Affiliate of the Company acting as Paying Agent) as the
Trustee may determine in its discretion, to the Holders of all sums due and to become due thereon in respect of principal and interest
but such money and Government Obligations need not be segregated from other funds, except to the extent required by law.

 

The Company will pay
and indemnify the Trustee against any tax, fee or other charge, imposed on or assessed against the Government Obligations deposited
in accordance with this Section 3.02 or the principal or interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the Outstanding Subordinated Notes.

 

    34

     

    

 

		Section 3.03	Application
of Trust Money.

 

Subject to the provisions
of the last paragraph of Section 9.03, all money and Government Obligations deposited with the Trustee in accordance with
Section 3.01 or Section 3.02 will be held in trust and applied by the Trustee, in accordance with the provisions
of such Subordinated Notes subject to discharge under Section 3.01 or Legal Defeasance or Covenant Defeasance under Section
3.02, and this Indenture, to the payment, either directly or through any Paying Agent (including the Company, acting as its
own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal and interest for whose payment
such money has or Government Obligations have been deposited with or received by the Trustee; but such money and Government Obligations
need not be segregated from other funds, except to the extent required by law.

 

		Section 3.04	Reinstatement.

 

If the Trustee (or
other qualifying trustee appointed in accordance with Section 3.02(4)(a)) or any Paying Agent is unable to apply any moneys
or Government Obligations deposited in accordance with Section 3.01(1) or Section 3.02(4)(a) to pay any principal
of, or interest, if any, on, the Subordinated Notes by reason of any legal proceeding or any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s obligations under
this Indenture and the Subordinated Notes will be revived and reinstated as though no such deposit had occurred, until such time
as the Trustee (or other qualifying trustee) or Paying Agent is permitted to apply all such moneys and Government Obligations to
pay the principal of, and interest, if any, on the Subordinated Notes as contemplated by Section 3.01 or Section 3.02
as the case may be; provided, however, that if the Company makes any payment of the principal of, or interest if
any on, the Subordinated Notes following the reinstatement of its obligations as aforesaid, the Company will be subrogated to the
rights of the Holders of such Subordinated Notes to receive such payment from the funds held by the Trustee (or other qualifying
trustee) or Paying Agent.

 

		Section 3.05	Effect on Subordination
Provisions.

 

The provisions of Article
XI are expressly made subject to the provisions for, and to the right of the Company to effect, the satisfaction and discharge
of all of the Subordinated Notes as set forth in and in accordance with Section 3.01 and the provisions for, and to the
right of the Company to effect, Legal Defeasance and Covenant Defeasance of all of the Subordinated Notes as set forth in and in
accordance with Section 3.02. As a result, and anything herein to the contrary notwithstanding, if the Company complies
with the provisions of Section 3.01 to effect the satisfaction and discharge of the Subordinated Notes or complies with
the provisions of Section 3.02 to effect the Legal Defeasance or Covenant Defeasance, upon the effectiveness of such satisfaction
and discharge in accordance with Section 3.01 or of Legal Defeasance or Covenant Defeasance in accordance with Section
3.02, in the case of satisfaction and discharge in accordance with Section 3.01, or, in the case of Legal Defeasance
or Covenant Defeasance in accordance with Section 3.02, the Subordinated Notes as to which Legal Defeasance or Covenant
Defeasance, as the case may be, will have become effective will thereupon cease to be so subordinated in right of payment to the
Senior Indebtedness and will no longer be subject to the provisions of Article XI and, without limitation to the foregoing, all
moneys and Government Obligations deposited with the Trustee (or other qualifying trustee) in trust in connection with such satisfaction
and discharge, Legal Defeasance or Covenant Defeasance, as the case may be, and all proceeds therefrom may be applied to pay the
principal of, and interest, if any, on, such Subordinated Notes as and when the same will become due and payable notwithstanding
the provisions of Article XI without regard to whether any or all of the Senior Indebtedness then outstanding will have been paid
or otherwise provided for.

 

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ARTICLE
IV

REMEDIES

 

		Section 4.01	Events of
Default; Acceleration.

 

An “Event of
Default” means any one of the following events (whatever the reason for such Event of Default and whether it will be voluntary
or involuntary or be effected by operation of law or in accordance with any judgment, decree, or order of any court or any order,
rule, or regulation of any administrative or governmental body):

 

(1)              
the entry of a decree or order for relief in respect of the Company by a court having jurisdiction in the premises
in an involuntary case or proceeding under any applicable bankruptcy, insolvency, or reorganization law, now or hereafter in effect
of the United States or any political subdivision thereof, and such decree or order will have continued unstayed and in effect
for a period of 30 consecutive days;

 

(2)              
the commencement by the 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 the Company to the
entry of a decree or order for relief in an involuntary case or proceeding under any such law;

 

(3)              
the failure of the 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 15 days;

 

(4)              
the failure of the 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 under this Indenture;

 

(5)              
the failure of the Company to perform any other covenant or agreement on the part of the Company contained in the
Subordinated Notes or in this Indenture, and the continuation of such failure for a period of 30 days after the date on which notice
specifying such failure, stating that such notice is a “Notice of Default” hereunder and demanding that the Company
remedy the same, will have been given, in the manner set forth in Section 1.05, to the Company by the Trustee, or to the
Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Subordinated Notes at the time Outstanding;
or

 

(6)              
the default by the Company under any bond, debenture, note or other evidence of indebtedness for money borrowed by
the Company having an aggregate principal amount outstanding of at least $75,000,000, 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.

 

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Upon becoming aware
of any Event of Default, the Company will promptly deliver to the Trustee a written statement specifying the Event of Default.

 

If an Event of Default
described in Section 4.01(1) or Section 4.01(2) occurs, then the principal amount of all of the Outstanding Subordinated
Notes, and accrued and unpaid interest, if any, on all Outstanding Subordinated Notes will become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder, and the Company waives demand, presentment for payment,
notice of nonpayment, notice of protest, and all other notices. Notwithstanding the foregoing, because the Company will treat the
Subordinated Notes as Tier 2 Capital, upon the occurrence of an Event of Default other than an Event of Default described in Section
4.01(1) or Section 4.01(2), neither the Trustee nor any Holder may accelerate the Maturity of the Subordinated Notes
and make the principal of, and any accrued and unpaid interest on, the Subordinated Notes, immediately due and payable.

 

If any Event of Default
occurs and is continuing, the Trustee may also pursue any other available remedy to collect the payment of principal of, and interest
on, the Subordinated Notes or to enforce the performance of any provision of the Subordinated Notes or this Indenture.

 

		Section 4.02	Failure to Make
Payments.

 

If an Event of Default
described in Section 4.01(3) or Section 4.01(4) occurs, the Company will, upon demand of the Trustee, pay to the
Trustee, for the benefit of the Holders of such Subordinated Notes, the whole amount then due and payable with respect to such
Subordinated Notes, with interest upon the overdue principal, and, to the extent permitted by applicable law, upon any overdue
installments of interest at the rate or respective rates, as the case may be, provided for or with respect to such Subordinated
Notes or, if no such rate or rates are so provided, at the rate or respective rates, as the case may be, of interest borne by such
Subordinated Notes, and, in addition thereto, such further amount of money as will be sufficient to cover the costs and expenses
of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel
and all other amounts due to the Trustee under Section 5.07.

 

If the Company fails
to pay the money it is required to pay the Trustee, the Trustee, in its own name and as trustee of an express trust, may institute
a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree,
and may enforce the same against the Company or any other obligor upon such Subordinated Notes and collect the moneys adjudged
or decreed to be payable in the manner provided by law out of the property of the Company, wherever situated.

 

The Trustee may proceed
to protect and enforce its rights and the rights of the Holders of Subordinated Notes by such appropriate judicial proceedings
as the Trustee will deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant
or agreement in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other proper
remedy.

 

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Upon the occurrence
of a failure by the Company to make any required payment of principal or interest on the Subordinated Notes, the Company may not
declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to,
any of the Company’s capital stock, make any payment of principal or interest or premium, if any, on or repay, repurchase
or redeem any debt securities of the Company that rank equal with or junior to the Subordinated Notes, or 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 in accordance with 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.

 

		Section 4.03	Trustee May File
Proofs of Claim.

 

In case of any judicial
proceeding relative to the Company (or any other obligor upon the Subordinated Notes), its property or its creditors, the Trustee
will be entitled and empowered, by intervention in such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such proceeding. In particular, the Trustee
will be authorized to:

 

(1)              
file and prove a claim for the whole amount, or such lesser amount as may be provided for in the Subordinated Notes,
of the principal and interest owing and unpaid in respect of such Subordinated Notes and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents or retained professionals) and of the Holders of such Subordinated
Notes allowed in such judicial proceeding, and

 

(2)              
collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the
same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator, or other similar official in any such judicial
proceeding is authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee will consent to
the making of such payments directly to the Holders and to pay to the Trustee any amount due it for the reasonable compensation,
expenses, disbursements, and advances of the Trustee, its agents and retained professionals, and any other amounts due hereunder.

 

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No provision of this
Indenture will be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan
of reorganization, arrangement, adjustment, or composition affecting the Subordinated Notes or the rights of any Holder or to authorize
the Trustee to vote in respect of the claim of any Holder in any such proceeding; provided, however, the Trustee
may vote on behalf of the Holders for the election of a trustee in bankruptcy or similar official and may be a member of a creditors,
or other similar committee.

 

		Section 4.04	Trustee
May Enforce Claims Without Possession of Subordinated Notes.

 

All rights of action
and claims under this Indenture or the Subordinated Notes may be prosecuted and enforced by the Trustee without the possession
of any of the Subordinated Notes or the production of such Subordinated Notes in any related proceeding, and any such proceeding
instituted by the Trustee will be brought in its own name as trustee of an express trust, and any recovery of judgment will, after
provision for the payment of the reasonable compensation, expenses, disbursements, and advances of the Trustee, its agents, and
retained professionals, be for the ratable benefit of the Holders in respect of which such judgment has been recovered.

 

		Section 4.05	Application
of Money Collected.

 

Any money collected
by the Trustee in accordance with this Article IV or, after an Event of Default, any money or other property distributable in respect
of the Company’s obligations under this Indenture will be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal or any interest, upon presentation of the Subordinated
Notes and the notation on such Subordinated Notes of the payment if only partially paid and upon surrender of such Subordinated
Notes if fully paid:

 

FIRST: To the payment
of all amounts due the Trustee (including the payment of Trustee’s agents, accountants, consultants, counsel and other experts
employed by it in the exercise and performance of its powers and duties as Trustee), acting in any capacity hereunder, (including
any predecessor trustee) under Section 5.07;

 

SECOND: To the payment
of amounts then due and unpaid to the holders of Senior Indebtedness, to the extent required under the Subordination Provisions
established with respect to the Subordinated Notes;

 

THIRD: To the payment
of the amounts then due and unpaid for principal of and any interest on the Subordinated Notes in respect of which or for the benefit
of which such money has been collected, ratably, without preference or priority of any kind, according to the aggregate amounts
due and payable on such Subordinated Notes for principal and interest, respectively; and

 

FOURTH: The balance,
if any, to the Person or Persons entitled thereto.

 

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		Section 4.06	Limitation
on Suits.

 

No Holder of any Subordinated
Note will have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture or any Subordinated
Notes, or for the appointment of a receiver or trustee, or for any other remedy under this Indenture, unless:

 

(1)               such
Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Subordinated Notes;

 

(2)               the
Holders of not less than 25% in aggregate principal amount of the Outstanding Subordinated Notes will have made written request
to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee under the Indenture;

 

(3)               such
Holder or Holders have offered to the Trustee security and indemnity reasonably satisfactory to the Trustee to bond against the
costs, expenses, and liabilities to be incurred in compliance with such request;

 

(4)               the
Trustee for 60 days after its receipt of such notice, request, and offer of indemnity has failed to institute any such proceeding;
and

 

(5)               no
direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority
in aggregate principal amount of the Outstanding Subordinated Notes;

 

it being understood and intended that no
one or more of such Holders will have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture
to affect, disturb, or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference
over any other of such Holders or to enforce any right under this Indenture, except in the manner provided in this Indenture and
for the equal and ratable benefit of all of such Holders.

 

		Section 4.07	Unconditional
Right of Holders to Payments.

 

Notwithstanding any
other provision in this Indenture, the Holder of any Subordinated Note will have the right, which is absolute and unconditional,
to receive payment of the principal of and (subject to Section 2.07 and Section 2.10) any interest on such Subordinated
Note on the respective Stated Maturity or Maturities expressed in such Subordinated Note (or, in the case of redemption, on the
Redemption Date), and to institute suit for the enforcement of any such payment and such rights will not be impaired without the
consent of such Holder.

 

		Section 4.08	Restoration
of Rights and Remedies.

 

If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued
or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject
to any determination in such proceeding, the Company, the Trustee and the Holders will be restored severally and respectively to
their former positions under this Indenture, and thereafter all rights and remedies of the Trustee and the Holders will continue
as though no such proceeding had been instituted.

 

		Section 4.09	Rights
and Remedies Cumulative.

 

Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed, lost, or stolen Subordinated Notes in the last paragraph
of Section 2.09, no right or remedy conferred in this Indenture upon or reserved to the Trustee or to the Holders is intended
to be exclusive of any other right or remedy, and every right and remedy will, to the extent permitted by law, be cumulative and
in addition to every other right and remedy given under this Indenture or now or in the future existing at law or in equity or
otherwise. The assertion or employment of any right or remedy under this Indenture, or otherwise, will not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

 

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		Section 4.10	Delay
or Omission Not Waiver.

 

No delay or omission
of the Trustee or of any Holder of any Subordinated Notes to exercise any right or remedy accruing upon any Event of Default will
impair any such right or remedy or constitute a waiver of or acquiescence in any such Event of Default. Every right and remedy
given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders, as the case may be.

 

		Section 4.11	Control
by Holders.

 

The Holders of a majority
in aggregate principal amount of the Outstanding Subordinated Notes will have the right to direct the time, method, and place of
conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with
respect to the Subordinated Notes, provided that

 

(1)               such
direction will not violate any rule of law or this Indenture or the Subordinated Notes,

 

(2)               the
Trustee may take any other action deemed proper by the Trustee in its discretion which is not inconsistent with such direction,
and

 

(3)               the
Trustee will have the right to decline to follow any such direction if the Trustee in good faith will determine that the proceeding
so directed would involve the Trustee in personal liability.

 

		Section 4.12	Waiver
of Past Defaults.

 

The Holders of not
less than a majority in aggregate principal amount of the Outstanding Subordinated Notes may on behalf of the Holders of all the
Subordinated Notes waive any past default under this Indenture and its consequences, except a default in the payment of the principal
of, or interest on, any Subordinated Note, or in respect of a covenant or provision of this Indenture which under Article VIII
cannot be modified or amended without the consent of the Holder of each Outstanding Subordinated Note.

 

Upon any such waiver,
such default will cease to exist, and any Event of Default arising from such default will be deemed to have been cured, for every
purpose of this Indenture; but no such waiver will extend to any subsequent or other default or impair any consequent right.

 

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		Section 4.13	Undertaking
for Costs.

 

All parties to this
Indenture agree, and each Holder of any Subordinated Notes by his acceptance of such Subordinated Notes will be deemed to have
agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture,
or in any suit against the Trustee for any action taken, suffered, or omitted by it as Trustee, the filing by any party litigant
in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorney’s fees and expenses, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the provisions of this Section 4.13 will not apply
to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% in principal amount of the Outstanding Subordinated Notes, or to any suit instituted
by any Holder for the enforcement of the payment of the principal of or interest, if any, on any Subordinated Notes on or after
the Stated Maturity or Maturities expressed in such Subordinated Notes (or, in the case of redemption, on or after the Redemption
Date).

 

ARTICLE
V 

THE TRUSTEE

 

		Section 5.01	Duties
of Trustee.

 

(1)               If
an Event of Default has occurred and is continuing, the Trustee will exercise such of the rights and powers vested in it hereby,
and use the same degree of care and skill in its exercise, as a prudent person would exercise or use under the circumstances in
the conduct of such person’s own affairs.

 

(2)               Except
during the continuance of an Event of Default:

 

    (a)               the
duties of the Trustee will be determined solely by the express provisions hereof and the Trustee need perform only those duties
that are specifically set forth herein and no others, and no implied covenants or obligations will be read into this Indenture
against the Trustee; and

 

    (b)               in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements hereof;
however, the Trustee will examine the certificates and opinions to determine whether or not they conform on their face to the
requirements hereof (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein).

 

(3)               Whether
or not therein expressly so provided, every provision hereof that in any way relates to the Trustee is subject to paragraphs (1)
and (2) of this Section 5.01 and to Section 5.02.

 

(4)               No
provision hereof will require the Trustee to expend or risk its own funds or incur any liability. The Trustee will be under no
obligation to exercise any of its rights and powers under this Indenture at the request of any Holders, unless such Holder has
offered to the Trustee security and indemnity reasonably satisfactory to it against any loss, liability or expense.

 

(5)               The
Trustee will not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company.
Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

 

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		Section 5.02	Certain
Rights of Trustee.

 

Subject to Section
315(a) through Section 315(d) of the Trust Indenture Act:

 

(1)               the
Trustee may conclusively rely and will be protected in acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document reasonably believed by it to be genuine and to have been signed or presented by the proper party or
parties;

 

(2)               any
request or direction of the Company mentioned herein will be sufficiently evidenced by a Company Request or a Company Order (unless
other evidence in respect thereof be herein specifically prescribed) and any resolution of the Board of Directors may be sufficiently
evidenced by a Board Resolution;

 

(3)               whenever
in the administration of this Indenture the Trustee will deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence will be herein specifically prescribed) may, in
the absence of bad faith on its part, rely upon an Officers’ Certificate or Opinion of Counsel, or both, which will comply
with Section 1.02;

 

(4)               before
the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel or both. The
Trustee will not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate
or Opinion of Counsel. The Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel will
be full and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon. The Trustee may act through its attorneys and agents and will not be responsible for the
misconduct or negligence of any agent appointed with due care;

 

(5)               the
Trustee will be under no obligation to exercise any of the rights or powers vested in it by or under this Indenture at the request
or direction of any Holder(s) under this Indenture, unless such Holder(s) will have offered to the Trustee security or indemnity
satisfactory to the Trustee against the costs, expenses and liabilities that might be incurred by it in compliance with such request
or direction;

 

(6)               the
Trustee will not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee will determine to make such further inquiry or investigation, it will be entitled
to examine, during business hours and upon reasonable notice, the books, records and premises of the Company, personally or by
agent, accountant or attorney, at the sole cost of the Company and will incur no liability or additional liability of any kind
by reason of such inquiry or investigation;

 

    43

     

    

 

(7)               the
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents
or attorneys and the Trustee will not be responsible for any misconduct or negligence on the part of any agent or professional
appointed with due care by it hereunder;

 

(8)               the
Trustee will not be liable for any action taken, suffered or omitted to be taken by it in good faith and reasonably believed by
it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture;

 

(9)               in
no event will the Trustee be responsible or liable for special, indirect or consequential loss or damage of any kind whatsoever
(including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such
loss or damage and regardless of the form of action;

 

(10)             the
Trustee will not be required to take notice or be deemed to have notice of any default or Event of Default, except failure by
the Company to pay or cause to be made any of the payments required to be made to the Trustee to pay principal of, and interest
on, the Subordinated Notes, unless a Responsible Officer of the Trustee shall receive written notice of such default or Event
of Default from the Company or from the Holders of at least 25% in aggregate principal amount of the then Outstanding Subordinated
Notes delivered to the Corporate Trust Office of the Trustee and in the absence of such notice so delivered the Trustee may conclusively
assume no default or Event of Default exists;

 

(11)             the
Trustee shall have no duty to monitor or confirm compliance by the Company with the terms of this Indenture or any Subordinated
Note;

 

(12)             the
Trustee shall not be bound to make any investigation into (i) the performance of or compliance with any of the covenants or agreements
set forth herein, (ii) the occurrence of any default, or the validity, enforceability, effectiveness or genuineness of this Indenture
or any other agreement, instrument or document;

 

(13)             the
rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be
indemnified for all costs (including those of its retained professionals), are extended to, and will be enforceable by, the Trustee
in each of its capacities hereunder, and each agent, custodian and other Person employed or appointed to act hereunder;

 

(14)             the
Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers authorized
at such time to take specified actions under this Indenture;

 

(15)             the
Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder;

 

    44

     

    

 

(16)             the
Trustee shall not be liable or responsible for any calculation in connection with the transactions contemplated hereunder nor
for any information used in connection with such calculation; and

 

(17)             in
no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind
whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood
of such loss or damage and regardless of the form of action.

 

		Section 5.03	Notice
of Defaults.

 

Within 90 days after
a Responsible Officer of the Trustee is notified of the occurrence of any default hereunder with respect to the Subordinated Notes
in accordance with Section 5.02(10), the Trustee will deliver to all Holders entitled to receive reports in accordance with
Section 6.03(4), notice of such default hereunder known to the Trustee, unless such default will have been cured or waived;
provided, however, that, except in the case of a default in the payment of the principal of or interest, if any,
on, any Subordinated Note, the Trustee will be protected in withholding such notice if and so long as the Board of Directors or
a Responsible Officer of the Trustee in good faith determines that the withholding of such notice is in the best interest of the
Holders. For the purpose of this Section, the term “default” means any event that is, or after notice or lapse of time
or both would become, an Event of Default with respect to Subordinated Notes.

 

		Section 5.04	Not
Responsible for Recitals or Issuance of Subordinated Notes.

 

The recitals contained
herein and in the Subordinated Notes, except the Trustee’s certificate of authentication, will be taken as the statements
of the Company and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee
makes no representations as to the validity or sufficiency of this Indenture or of the Subordinated Notes, except that the Trustee
represents that it is duly authorized to execute and deliver this Indenture, authenticate the Subordinated Notes and perform its
obligations hereunder. Neither the Trustee nor any Authenticating Agent will be accountable for the use or application by the Company
of the Subordinated Notes or the proceeds thereof. The Trustee will not be responsible for and makes no representation as to the
validity or adequacy of this Indenture or the Subordinated Notes, it will not be accountable for the Company’s use of the
proceeds from the Subordinated Notes or any money paid to the Company or upon the Company’s direction under any provision
hereof, it will not be responsible for the use or application of any money received by any Paying Agent other than the Trustee,
and it will not be responsible for any statement or recital herein or any statement in the Subordinated Notes or any other document
in connection with the sale of the Subordinated Notes or under this Indenture other than its certificate of authentication.

 

		Section 5.05	May
Hold Subordinated Notes.

 

The Trustee, any Authenticating
Agent, any Paying Agent, any Registrar or any other Person that may be an agent of the Trustee or the Company, in its individual
or any other capacity, may become the owner or pledgee of Subordinated Notes and, subject to Section 310(b) and Section 311 of
the Trust Indenture Act, may otherwise deal with the Company with the same rights that it would have if it were not Trustee, Authenticating
Agent, Paying Agent, Registrar or such other Person.

 

The Trustee is subject
to Section 311(a) of the Trust Indenture Act, excluding any creditor relationship listed in Section 311(b) of the Trust Indenture
Act. A Trustee who has resigned or been removed shall be subject to Section 311(a) of Trust Indenture Act to the extent indicated.

 

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		Section 5.06	Money
Held in Trust.

 

Except as provided
in Section 3.02(5), Section 3.03 and Section 9.03, money held by the Trustee in trust hereunder need not be segregated from other
funds except to the extent required by law and will be held uninvested. The Trustee will be under no liability for interest on
any money received by it hereunder except as otherwise agreed in writing with the Company.

 

		Section 5.07	Compensation
and Reimbursement.

 

The Company agrees:

 

(1)               to
pay to the Trustee from time to time compensation for all services rendered by the Trustee acting in any capacity hereunder (which
compensation will not be limited by any provision of law in regard to the compensation of a trustee of an express trust);

 

(2)               except
as otherwise expressly provided herein, to reimburse the Trustee promptly upon its request for all reasonable expenses, disbursements
and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation
and the expenses and disbursements of Trustee’s agents, accountants, consultants, counsel and other experts employed by
it in the exercise and performance of its powers and duties as Trustee), except any such expense, disbursement or advance resulting
from the Trustee’s gross negligence or willful misconduct; and

 

(3)               to
indemnify, defend, protect and hold each of the Trustee acting in any capacity or any predecessor Trustee and their agents, accountants,
consultants, counsel and other experts employed by it in the exercise and performance of its powers and duties as Trustee harmless
from and against any and all losses, liabilities, damages, costs or expenses suffered or incurred by it arising out of or in connection
with the acceptance or administration of its duties under this Indenture, including the costs and expenses of enforcing this Indenture
against the Company and defending itself against any claim (whether asserted by the Company, any Holder or any other Person) or
liability in connection with the exercise or performance of any of its powers or duties hereunder, except to the extent any such
loss, liability or expense resulting from its gross negligence or willful misconduct, as determined by a final, non-appealable
judgment of a court of competent jurisdiction, and the fees and disbursements of the Trustee’s agents, legal counsel, accountants
and experts and including taxes (other than taxes based upon, measured by or determined by the income of the Trustee). The Trustee
will notify the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify the Company
will not relieve the Company of its obligations hereunder. The Company will defend the claim and the Trustee will cooperate in
the defense. The Trustee may have separate counsel and the Company will pay the reasonable fees and expenses of such counsel.
None of the Company need pay for any settlement made without its consent, which consent will not be unreasonably withheld.

 

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The obligations of
the Company under this Section 5.07 will survive the satisfaction and discharge of this Indenture.

 

As security for the
performance of the obligations of the Company under this Section, the Trustee will have a lien prior to the Subordinated Notes
upon all property and funds held or collected by the Trustee as such, except funds held in trust for the payment of principal of,
or interest on, Subordinated Notes. Such lien will survive the satisfaction and discharge hereof and the resignation or removal
of the Trustee.

 

Any compensation or
expense incurred by the Trustee after a default specified by Section 4.01 is intended to constitute an expense of administration
under any then applicable bankruptcy or insolvency law. “Trustee” for purposes of this Section 5.07 will include
any predecessor Trustee, but the negligence or bad faith of any Trustee will not affect the rights of any other Trustee under this
Section 5.07. The provisions of this Section 5.07 will, to the extent permitted by law, survive any termination of
this Indenture (including, without limitation, termination in accordance with any Bankruptcy Laws) and the resignation or removal
of the Trustee.

 

		Section 5.08	Corporate
Trustee Required; Eligibility.

 

(1)               There
will at all times be a Trustee hereunder that is a corporation, organized and doing business under the laws of the United States,
any state thereof or the District of Columbia, eligible under Section 310(a)(1) of the Trust Indenture Act to act as trustee under
an indenture qualified under the Trust Indenture Act and that has a combined capital and surplus (computed in accordance with
Section 310(a)(2) of the Trust Indenture Act) of at least $50,000,000 and is subject to supervision or examination by federal
or state authority. The Trustee will also satisfy the requirements of Section 310(a)(5) of the Trust Indenture Act. If at any
time the Trustee will cease to be eligible in accordance with the provisions of this Section, it will resign immediately upon
written request therefor by the Company or any Holder in the manner and with the effect hereinafter specified in this Article,

 

(2)               The
Trustee will comply with Section 310(b) of the Trust Indenture Act; provided, however, that there will be excluded
from the operation of Section 310(b)(1) of the Trust Indenture Act this Indenture or any indenture or indentures under which other
securities or certificates of interest or participation in other securities of the Company are outstanding if the requirements
for such exclusion set forth in Section 310(b)(1) of the Trust Indenture Act are met.

 

		Section 5.09	Resignation
and Removal; Appointment of Successor.

 

(1)               No
resignation or removal of the Trustee and no appointment of a successor Trustee in accordance with this Article V will become
effective until the acceptance of appointment by the successor Trustee in accordance with Section 5.10.

 

(2)               The
Trustee may resign at any time with respect to the Subordinated Notes by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 5.10 will not have been delivered to the Trustee within
30 days after the giving of such notice of resignation, the resigning Trustee may, at the Company’s expense, petition any
court of competent jurisdiction for the appointment of a successor Trustee.

 

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(3)               The
Trustee may be removed at any time with respect to the Subordinated Notes by Act of the Holders of a majority in principal amount
of the Outstanding Subordinated Notes, delivered to the Trustee and the Company.

 

If at any time:

 

    (a)               the
Trustee will fail to comply with the obligations imposed upon it under Section 310(b) of the Trust Indenture Act with respect
to Subordinated Notes after written request therefor by the Company or any Holder who has been a bona fide Holder for at least
six months,

 

    (b)               the
Trustee will cease to be eligible under Section 5.08 and will fail to resign after written request therefor by the Company
or any such Holder, or

 

    (c)               the
Trustee will become incapable of acting or will be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property
will be appointed or any public officer will take charge or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation,

 

then, in any such case, (i) the Company,
by or in accordance with a Board Resolution, may remove the Trustee with respect to the Subordinated Notes, or (ii) subject to
Section 315(e) of the Trust Indenture Act, any Holder who has been a bona fide Holder for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee with respect
to all Subordinated Notes and the appointment of a successor Trustee or Trustees.

 

(4)               If
the Trustee will resign, be removed or become incapable of acting, or if a vacancy will occur in the office of Trustee for any
cause, with respect to the Subordinated Notes, the Company, by or in accordance with a Board Resolution, will promptly appoint
a successor Trustee or Trustees with respect to the Subordinated Notes and will comply with the applicable requirements of Section
5.10. If, within one year after such resignation, removal or incapability, or the occurrence of such vacancy, a successor
Trustee with respect to the Subordinated Notes shall have been appointed by Act of the Holders of a majority in principal amount
of the Outstanding Subordinated Notes delivered to the Company and the retiring Trustee, the successor Trustee so appointed will,
forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 5.10, become
the successor Trustee with respect to the Subordinated Notes and to that extent supersede the successor Trustee appointed by the
Company. If no successor Trustee with respect to the Subordinated Notes will have been so appointed by the Company or the Holders
and accepted appointment in the manner required by Section 5.10, any Holder who has been a bona fide Holder for at least
six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment
of a successor Trustee with respect to the Subordinated Notes.

 

(5)               The
Company will give notice of each resignation and each removal of the Trustee with respect to the Subordinated Notes and each appointment
of a successor Trustee with respect to the Subordinated Notes by delivering written notice of such event by first-class mail,
postage prepaid, to the Holders as their names and addresses appear in the Subordinated Note Register. Each notice will include
the name of the successor Trustee with respect to the Subordinated Notes and the address of its Corporate Trust Office.

 

    48

     

    

 

		Section 5.10	Acceptance
                                         of Appointment by Successor.

 

(1)              
Upon the appointment hereunder of any successor Trustee with respect to all Subordinated Notes, such successor Trustee
so appointed will execute, acknowledge and deliver to the Company and the retiring Trustee an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Trustee will become effective and such successor Trustee, without any
further act, deed or conveyance, will become vested with all the rights, powers, trusts and duties hereunder of the retiring Trustee;
but, on the request of the Company or such successor Trustee, such retiring Trustee, upon payment of its charges, will execute
and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and,
subject to Section 9.03, will duly assign, transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder, subject nevertheless to its claim, if any, provided for in Section 5.07.

 

(2)              
Upon the appointment hereunder of any successor Trustee with respect to the Subordinated Notes, the Company, the
retiring Trustee and such successor Trustee will execute and deliver an indenture supplemental hereto wherein each successor Trustee
will accept such appointment and which (i) will contain such provisions as will be necessary or desirable to transfer and confirm
to, and to vest in, such successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the
Subordinated Notes, (ii) if the retiring Trustee is not retiring with respect to all Subordinated Notes, will contain such provisions
as will be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Subordinated Notes will continue to be vested in the retiring Trustee, and (iii) will add to or change any of the
provisions of this Indenture as will be necessary to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such supplemental indenture will constitute such Trustees co-trustees
of the same trust, that each such Trustee will be trustee of a trust or trusts hereunder separate and apart from any trust or trusts
hereunder administered by any other such Trustee and that no Trustee will be responsible for any notice given to, or received by,
or any act or failure to act on the part of any other Trustee hereunder, and, upon the execution and delivery of such supplemental
indenture, the resignation or removal of the retiring Trustee will become effective to the extent provided therein, such retiring
Trustee will have no further responsibility for the exercise of rights and powers or for the performance of the duties and obligations
vested in the Trustee under this Indenture with respect to the Subordinated Notes other than as hereinafter expressly set forth,
and such successor Trustee, without any further act, deed or conveyance, will become vested with all the rights, powers, trusts
and duties of the retiring Trustee with respect to the Subordinated Notes; but, on request of the Company or such successor Trustee,
such retiring Trustee, upon payment of its charges with respect to the Subordinated Notes and subject to Section 9.03 will
duly assign, transfer and deliver to such successor Trustee, to the extent contemplated by such supplemental indenture, the property
and money held by such retiring Trustee hereunder with respect to the Subordinated Notes, subject to its claim, if any, provided
for in Section 5.07.

 

(3)              
Upon request of any Person appointed hereunder as a successor Trustee, the Company will execute any and all instruments
for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts referred to
in paragraph (1) or (2) of this Section, as the case may be.

    49

     

    

 

(4)              
No Person will accept its appointment hereunder as a successor Trustee unless at the time of such acceptance such
successor Person will be qualified and eligible under this Article. No resigning or removed Trustee shall have any liability or
responsibility for the action or inaction of any successor Trustee.

 

		Section 5.11	Merger,
Conversion, Consolidation or Succession to Business.

 

Any corporation into
which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee will be a party, or any corporation succeeding to all or substantially all of
the corporate trust business of the Trustee, will be the successor of the Trustee hereunder (provided that such corporation will
otherwise be qualified and eligible under this Article), without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Subordinated Notes will have been authenticated but not delivered by the Trustee
then in office, any such successor to such authenticating Trustee may adopt such authentication and deliver the Subordinated Notes
so authenticated with the same effect as if such successor Trustee had itself authenticated such Subordinated Notes. In case any
Subordinated Notes will not have been authenticated by such predecessor Trustee, any such successor Trustee may authenticate and
deliver such Subordinated Notes in either its own name or that of its predecessor Trustee.

 

		Section 5.12	Appointment
                                         of Authenticating Agent.

 

The Trustee may appoint
one or more Authenticating Agents acceptable to the Company with respect to the Subordinated Notes which will be authorized to
act on behalf of the Trustee to authenticate Subordinated Notes issued upon original issue, exchange, registration of transfer,
partial redemption, partial repayment, or in accordance with Section 2.09, and Subordinated Notes so authenticated will
be entitled to the benefits of this Indenture and will be valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication and delivery of Subordinated Notes by the Trustee
or the Trustee’s certificate of authentication, such reference will be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating
Agent.

 

Each Authenticating
Agent will be reasonably acceptable to the Company and, except as provided in or under this Indenture, will at all times be a corporation
that would be permitted by the Trust Indenture Act to act as trustee under an indenture qualified under the Trust Indenture Act,
is authorized under applicable law and by its charter to act as an Authenticating Agent and has a combined capital and surplus
(computed in accordance with Section 310(a)(2) of the Trust Indenture Act) of at least $50,000,000 and is subject to supervision
or examination by federal or state authority. If at any time an Authenticating Agent will cease to be eligible in accordance with
the provisions of this Section, it will resign immediately upon written request therefor by the Company or any Holder in the manner
and with the effect specified in this Section.

 

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Any corporation into
which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from
any merger, conversion or consolidation to which such Authenticating Agent will be a party, or any corporation succeeding to all
or substantially all of the corporate agency or corporate trust business of an Authenticating Agent, will be the successor of such
Authenticating Agent hereunder, provided such corporation will be otherwise eligible under this Section, without the execution
or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent.

 

An Authenticating Agent
may resign at any time by giving written notice thereof to the Trustee and the Company. The Trustee may at any time terminate the
agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent will cease to be eligible
in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent that will be acceptable
to the Company and will deliver written notice of such appointment by first-class mail, postage prepaid, to all Holders with respect
to which such Authenticating Agent will serve, as their names and addresses appear in the Subordinated Note Register. Any successor
Authenticating Agent, upon acceptance of its appointment hereunder, will become vested with all the rights, powers and duties of
its predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No successor Authenticating Agent
will be appointed unless eligible under the provisions of this Section 5.12.

 

The Company agrees
to pay each Authenticating Agent from time to time reasonable compensation for its services under this Section. If the Trustee
makes such payments, it will be entitled to be reimbursed for such payments, subject to the provisions of Section 5.07.

 

The provisions of Section
2.11, Section 5.04 and Section 5.05 will be applicable to each Authenticating Agent.

 

If an Authenticating
Agent is appointed under this Section, the Subordinated Notes may have endorsed thereon, in addition to or in lieu of the Trustee’s
certificate of authentication, an alternate certificate of authentication in substantially the following form:

 

This is one of the
Subordinated Notes of the series designated therein referred to in the within-mentioned Indenture.

 

	 	UMB Bank National Association, as Trustee
	 	
	 	By:	 
	 	Name:
	 	Title:
	 	Dated:
	 	

		Section 5.13	Preferred
Collection of Claims against Company.

 

If and when the Trustee
will be or become a creditor of the Company (or any other obligor upon the Subordinated Notes), the Trustee will be subject to
the provisions of the Trust Indenture Act regarding the collection of claims against the Company (or any such other obligor).

 

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ARTICLE
VI

HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

		Section 6.01	Holder
                                         Lists.

 

The Trustee will preserve
in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of the Holders.
If the Trustee is not the Registrar, the Company will cause to be furnished to the Trustee at least semiannually on January 1 and
July 1 a listing of the Holders dated within 10 days of the date on which the list is furnished and at such other times as the
Trustee may request in writing a list in such form and as of such date as the Trustee may reasonably require of the names and addresses
of the Holders.

 

		Section 6.02	Preservation
of Information; Communications to Holders.

 

The Trustee will comply
with the obligations imposed upon it in accordance with Section 312 of the Trust Indenture Act.

 

Every Holder of Subordinated
Notes, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company, the Trustee, any Paying
Agent or any Registrar will be held accountable by reason of the disclosure of any such information as to the names and addresses
of the Holders of Subordinated Notes in accordance with Section 312(c) of the Trust Indenture Act, regardless of the source from
which such information was derived, and that the Trustee will not be held accountable by reason of delivering any material in accordance
with a request made under Section 312(b) of the Trust Indenture Act.

 

		Section 6.03	Reports
by Trustee.

 

(1)              
Within 60 days after July 15 of each year commencing with the first July 15 following the date of this Indenture,
if required by Section 313(a) of the Trust Indenture Act, the Trustee will transmit, in accordance with Section 313(c) of the Trust
Indenture Act, a brief report dated as of such July 15 with respect to any of the events specified in said Section 313(a) and Section
313(b)(2) that may have occurred since the later of the immediately preceding July 15 and the date of this Indenture.

 

(2)              
The Trustee will transmit the reports required by Section 313(a) of the Trust Indenture Act at the times specified
therein.

 

(3)              
The Trustee shall comply with Sections 313(b) and 313(c) of the Trust Indenture Act.

 

(4)              
Reports under this Section will be transmitted in the manner and to the Persons required by Section 313(c) and Section
313(d) of the Trust Indenture Act.

 

    52

     

    

 

		Section 6.04	
Reports by Company.

 

(1)              
The Company, in accordance with Section 314(a) of the Trust Indenture Act, will:

 

    (a)                  
file with the Trustee, within 15 days after the Company files the same with the Commission, copies of the annual
reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission
may from time to time by rules and regulations prescribe) that the Company may be required to file with the Commission in accordance
with Section 13 or Section 15(d) of the Exchange Act; or, if the Company is not required to file information, documents or reports
in accordance with either of said Sections, then it will file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and reports
that may be required in accordance with Section 13 of the Exchange Act in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and regulations;

 

    (b)                   file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by
the Commission, such additional certificates, information, documents and reports with respect to compliance by the Company, with
the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and

 

    (c)                 
transmit to the Holders within 30 days after the filing thereof with the Trustee, in the manner and to the extent
provided in Section 313(c) of the Trust Indenture Act, such summaries of any information, documents and reports required to be
filed by the Company in accordance with paragraphs (1) and (2) of this Section as may be required by rules and regulations prescribed
from time to time by the Commission.

 

Delivery of such reports,
information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such will not constitute
constructive notice of any information contained therein or determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates).

 

(2)              
The Company intends to file the reports referred to in Section 6.04(1) with the Commission in electronic form
in accordance with Regulation S-T of the Commission using the Commission’s Electronic Data Gathering, Analysis and Retrieval
system. Compliance with the foregoing, or any successor electronic system approved by the Commission, will constitute delivery
by the Company of such reports to the Trustee and Holders in compliance with the provision of Section 6.04(1) and Trust
Indenture Act Section 314(a). Notwithstanding anything to the contrary herein, the Trustee will have no duty to search for or obtain
any electronic or other filings that the Company makes with the Commission, regardless of whether such filings are periodic, supplemental
or otherwise. Delivery of the reports, information and documents to the Trustee in accordance with this Section 6.04(2)
will be solely for the purposes of compliance with Section 6.04(1) and with Trust Indenture Act Section 314(a). The Trustee’s
receipt of such reports, information and documents (whether or not filed in electronic form) is for informational purposes only
and the Trustee’s receipt of such will not constitute constructive notice of any information contained therein or determinable
from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates). The Trustee shall have no liability or responsibility
for the filing, content or timelines of any report hereunder aside from any report transmitted under Section 6.03 hereof.

 

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ARTICLE
VII

SUCCESSORS

 

		Section 7.01	Merger,
Consolidation or Sale of All or Substantially All Assets.

 

The Company will not,
in any transaction or series of related transactions, consolidate with or merge into any Person or sell, assign, transfer, lease
or otherwise convey all or substantially all its properties and assets to any Person, unless:

 

(1)              
either the Company will be the continuing Person (in the case of a merger), or the successor Person (if other than
the Company) formed by such consolidation or into which the Company is merged or which acquires by sale, assignment, transfer,
lease or other conveyance all or substantially all the properties and assets of the Company will be a corporation organized and
existing under the laws of the United States, any state thereof or the District of Columbia and will expressly assume, by an indenture
(or indentures, if at such time there is more than one Trustee) supplemental hereto, executed by such successor corporation and
delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of, and interest on,
all the Outstanding Subordinated Notes and the due and punctual performance and observance of every obligation in this Indenture
and the Outstanding Subordinated Notes on the part of the Company to be performed or observed;

 

(2)              
immediately after giving effect to such transaction and treating any indebtedness that becomes an obligation of the
Company or any Subsidiary as a result of that transaction as having been incurred by the Company or any Subsidiary at the time
of the transaction, no Event of Default, and no event which, after notice or lapse of time, or both, would become an Event of Default,
will have occurred and be continuing; and

 

(3)              
either the Company or the successor Person will have delivered to the Trustee an Officers’ Certificate and
an Opinion of Counsel, each stating that such consolidation, merger, sale, assignment, transfer, lease or other conveyance and,
if a supplemental indenture is required in connection with such transaction, such supplemental indenture comply with this Article
VII and that all conditions precedent herein provided for relating to such transaction have been complied with.

 

For purposes of the
foregoing, any sale, assignment, transfer, lease or other conveyance of all or any of the properties and assets of one or more
Subsidiaries of the Company (other than to the Company or another Subsidiary), which, if such properties and assets were directly
owned by the Company, would constitute all or substantially all of the Company’s properties and assets, will be deemed to
be the transfer of all or substantially all of the properties and assets of the Company.

 

		Section 7.02	Successor
Person Substituted for Company.

 

Upon any consolidation
by the Company with or merger of the Company into any other Person or any sale, assignment, transfer, lease or conveyance of all
or substantially all of the properties and assets of the Company to any Person in accordance with Section 7.01, the successor
Person formed by such consolidation or into which the Company is merged or to which such sale, assignment, transfer, lease or other
conveyance is made will succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture
with the same effect as if such successor Person had been named as the Company herein; and thereafter, except in the case of a
lease, the predecessor Person will be released from all obligations and covenants under this Indenture and the Subordinated Notes.

 

    54

     

    

 

ARTICLE
VIII

SUPPLEMENTAL INDENTURES

 

		Section 8.01	Supplemental
Indentures without Consent of Holders.

 

Without the consent
of any Holders of Subordinated Notes, the Company (when authorized by or in accordance with a Board Resolution) and the Trustee,
at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee,
for any of the following purposes:

 

(1)              
to evidence the succession of another Person to the Company, and the assumption by any such successor of the covenants
of the Company contained herein and in the Subordinated Notes;

 

(2)              
to add to the covenants of the Company for the benefit of the Holders (as will be specified in such supplemental
indenture or indentures) or to surrender any right or power herein conferred upon the Company with respect to the Subordinated
Notes issued under this Indenture (as will be specified in such supplemental indenture or indentures);

 

(3)              
to permit or facilitate the issuance of Subordinated Notes in uncertificated or global form, provided any such action
will not adversely affect the interests of the Holders;

 

(4)              
to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Subordinated
Notes and to add to or change any of the provisions of this Indenture as will be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, in accordance with the requirements of Section 5.10;

 

(5)              
to cure any ambiguity or to correct or supplement any provision herein that may be defective or that may be inconsistent
with any other provision herein;

 

(6)              
to make any other provisions with respect to matters or questions arising under this Indenture that will not adversely
affect the interests of the Holders of then Outstanding Subordinated Notes;

 

(7)              
to add any additional Events of Default (as will be specified in such supplemental indenture);

 

(8)               to
supplement any of the provisions of this Indenture to such extent as will be necessary to permit or facilitate the Legal Defeasance,
Covenant Defeasance and/or satisfaction and discharge of the Subordinated Notes in accordance with Article III, provided that
any such action will not adversely affect the interests of any Holder;

 

    55

     

    

 

(9)              
to provide for the issuance of Exchange Notes;

 

(10)            
to conform any provision in this Indenture to the requirements of the Trust Indenture Act; or

 

(11)            
to make any change that does not adversely affect the legal rights under this Indenture of any Holder.

 

		Section 8.02	Supplemental
                                         Indentures with Consent of Holders.

 

With the consent of
the Holders of not less than a majority in principal amount of the Outstanding Subordinated Notes, by Act of said Holders delivered
to the Company and the Trustee, the Company (when authorized by or in accordance with a Board Resolution), and the Trustee may
enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of this Indenture or of the Subordinated Notes or of modifying in any manner the rights of
the Holders under this Indenture; provided, that no such supplemental indenture, without the consent of the Holder of each Outstanding
Subordinated Note affected thereby, will:

 

(1)              
reduce the rate of or change the time for payment of interest, including Defaulted Interest, on any Subordinated
Notes;

 

(2)              
reduce the principal of or change the Stated Maturity of any Subordinated Notes, or change the date on which any
Subordinated Notes may be subject to redemption or reduce the Redemption Price therefore;

 

(3)              
make any Subordinated Note payable in money other than Dollars;

 

(4)              
make any change in provisions of this Indenture protecting the right of each Holder to receive payment of principal
of and interest on such Subordinated Note on or after the due date thereof or to bring suit to enforce such payment;

 

(5)              
reduce the percentage in principal amount of the Outstanding Subordinated Notes, the consent of whose Holders is
required for any such supplemental indenture, or the consent of whose Holders is required for any waiver (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their consequences) provided for in Section 4.12 or Section
9.07 of this Indenture; or

 

(6)              
modify any of the provisions of this Section 8.02, Section 4.12 or Section 9.07, except to increase
any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent
of the Holder of each Outstanding Subordinated Note affected thereby.

 

It will not be necessary
for any Act of Holders under this Section 8.02 to approve the particular form of any proposed supplemental indenture, but
it will be sufficient if such Act will approve the substance thereof.

 

    56

     

    

 

		Section 8.03	Execution
of Supplemental Indentures.

 

As a condition to executing,
or accepting the additional trusts created by, any supplemental indenture permitted by this Article VIII or the modifications thereby
of the trust created by this Indenture, the Trustee will be entitled to receive, and (subject to Section 5.01) will be fully
protected in relying upon, an Officers’ Certificate and an Opinion of Counsel to the effect that the execution of such supplemental
indenture is authorized or permitted by this Indenture, that such supplemental indenture has been duly authorized, executed and
delivered by, and is a valid, binding and enforceable obligation of, the Company, subject to customary exceptions, and that, to
the extent applicable pursuant to Section 8.01, such supplemental indenture does not adversely affect the interests of the
Holders. The Trustee may, but will not be obligated to, enter into any such supplemental indenture which affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise.

 

		Section 8.04	Effect of Supplemental Indentures.

 

Upon the execution
of any supplemental indenture under this Article VIII, this Indenture will be modified in accordance therewith, and such supplemental
indenture will form a part of this Indenture for all purposes; and every Holder theretofore or thereafter authenticated and delivered
hereunder.

 

		Section 8.05	Reference
in Subordinated Notes to Supplemental Indentures.

 

Subordinated Notes
authenticated and delivered after the execution of any supplemental indenture in accordance with this Article VIII may, and will
if required by the Company, bear a notation in form approved by the Company as to any matter provided for in such supplemental
indenture. If the Company will so determine, new Subordinated Notes so modified as to conform, in the opinion of the Company, to
any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange
for Outstanding Subordinated Notes.

 

		Section 8.06	Effect
                                         on Senior Indebtedness.

 

No supplemental indenture
will directly or indirectly modify or eliminate the Subordination Provisions or the definition of “Senior Indebtedness”
applicable with respect to the Subordinated Notes in any manner that might terminate or impair the subordination of such Subordinated
Notes to such Senior Indebtedness without the prior written consent of each of the holders of such Senior Indebtedness.

 

		Section 8.07	Conformity
with Trust Indenture Act.

 

Every supplemental
indenture executed in accordance with this Article will conform to the requirements of the Trust Indenture Act as then in effect.

 

    57

     

    

 

 

ARTICLE
IX

COVENANTS

 

		Section 9.01	Payment of Principal and Interest.

 

The Company covenants
and agrees for the benefit of the Holders that it will duly and punctually pay the principal of, and interest on, the Subordinated
Notes, in accordance with the terms thereof and this Indenture. Principal and interest will be considered paid on the date due
if the Paying Agent, if other than the Company or a Subsidiary thereof, holds as of 11:00 a.m., Eastern time, on the Business Day
immediately prior to any Interest Payment Date, an amount in immediately available funds provided by the Company that is designated
for and sufficient to pay all principal and interest then due. The Company will pay all Additional Interest, if any, on the dates
and in the amounts set forth in the Registration Rights Agreement.

 

If Additional Interest
is payable by the Company in accordance with the Registration Rights Agreement, the Company will deliver to the Trustee a certificate
to that effect stating (i) the amount of such Additional Interest that is payable and (ii) the date on which such Additional Interest
is payable. Unless and until a Responsible Officer of the Trustee receives such a certificate or instruction or direction from
the Holders in accordance with the terms of this Indenture, the Trustee may assume without inquiry that no Additional Interest
is payable. The foregoing will not prejudice the rights of the Holders with respect to their entitlement to Additional Interest
as otherwise set forth in this Indenture or the Subordinated Notes and pursuing any action against the Company directly or otherwise
directing the Trustee to take such action in accordance with the terms of this Indenture and the Subordinated Notes. If the Company
has paid Additional Interest directly to persons entitled to it, the Company will deliver to the Trustee a certificate setting
forth the particulars of such payment.

 

		Section 9.02	Maintenance of
Office.

 

The Company will maintain
an office or agency in The City of New York (which may be an office of the Trustee or an Affiliate of the Trustee or Registrar)
where Subordinated Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon
the Company in respect of the Subordinated Notes and this Indenture may be served. The Company will give prompt written notice
to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Company fails to maintain
any such required office or agency or fails to furnish the Trustee with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the Corporate Trust Office of the Trustee.

 

The 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 the Company of its obligation to maintain an office or agency in The City of New York. The Company will
give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other
office or agency.

 

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The Company hereby
designates the Corporate Trust Office of the Trustee in each of The City of New York and in Houston, Texas as one such office or
agency of the Company in accordance with Section 9.02; provided, however, that no service of legal process on the Company
may be made at any office of the Trustee.

 

		Section 9.03	Money
for Subordinated Notes Payments to Be Held in Trust.

 

If the Company will
at any time act as its own Paying Agent, it will, on or before each due date of the principal of, or interest on, any of the Subordinated
Notes, segregate and hold in trust for the benefit of the Persons entitled thereto a sum in Dollars sufficient to pay the principal
and interest, as the case may be, so becoming due until such sums will be paid to such Persons or otherwise disposed of as herein
provided, and will promptly notify the Trustee of its action or failure so to act.

 

Whenever the Company
will have one or more Paying Agents, it will, on or prior to each due date of the principal of, or interest on, any Subordinated
Notes, deposit with any Paying Agent a sum in Dollars sufficient to pay the principal and interest, as the case may be, so becoming
due, such sum to be held in trust for the benefit of the Persons entitled thereto, and (unless such Paying Agent is the Trustee)
the Company will promptly notify the Trustee of its action or failure so to act.

 

The Company will cause
each Paying Agent other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent will agree
with the Trustee, subject to the provisions of this Section that such Paying Agent will:

 

(1)          
hold all sums held by it for the payment of the principal of, or interest on, the Subordinated Notes in trust for
the benefit of the Persons entitled thereto until such sums will be paid to such Persons or otherwise disposed of as provided in
or under this Indenture;

 

(2)          
give the Trustee notice of any default by the Company in the making of any payment of principal, or interest on,
the Subordinated Notes; and

 

(3)          
at any time during the continuance of any such default, upon the written request of the Trustee, pay to the Trustee
all sums so held in trust by such Paying Agent.

 

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The Company may at
any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company
Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be
held by the Trustee upon the same terms as those upon which such sums were held by the Company or such Paying Agent; and, upon
such payment by any Paying Agent to the Trustee, such Paying Agent will be released from all further liability with respect to
such sums.

 

Any money deposited
with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, or interest on,
any Subordinated Note and remaining unclaimed for two years after such principal or interest will have become due and payable will
be paid to the Company upon a Company Request, or (if then held by the Company) will be discharged from such trust; and the Holder
of such Subordinated Note will thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee
thereof, will thereupon cease.

 

		Section 9.04	Corporate
Existence.

 

Subject to Article
VII, the 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 the Company, (ii) the existence (corporate or otherwise) of each Significant Subsidiary and (iii) the rights (charter
and statutory), licenses and franchises of the Company and each of its Significant Subsidiaries, including without limitation the
Company’s status as a bank holding company or financial holding company under the Bank Holding Company Act of 1956, as amended,
and the Company’s principal bank subsidiary’s status as an “insured depository institution” under Section
3(c)(2) of the Federal Deposit Insurance Act, as amended; provided, however, that the 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 the Company
or any of its Significant Subsidiaries if the Board of Directors of the Company determines that the preservation thereof is no
longer desirable in the conduct of the business of the Company and its Significant Subsidiaries taken as a whole and that the loss
thereof will not be disadvantageous in any material respect to the Holders. Subject to Article VII, the Company shall not take
any action, omit to take any action or enter into any transaction that would have the effect of the Company owning less than one
hundred percent (100%) of the capital stock of the Company’s principal bank subsidiary.

 

		Section 9.05	Maintenance
of Properties.

 

The 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 the 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 the 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 the
Company or of any Significant Subsidiary, as the case may be desirable in the conduct of its business.

 

		Section 9.06	Dividends.

 

The Company shall not
declare or pay any dividend, or make any distribution on capital stock or other equity securities of any kind of the Company, in
each case except: (i) in such amounts as permitted by applicable regulations and only upon receipt of any required regulatory approval;
and (ii) for dividends payable solely in shares of common stock of the Company.

 

		Section 9.07	Waiver
of Certain Covenants.

 

The Company may omit
in any particular instance to comply with any term, provision or condition set forth in Section 9.02 to Section 9.06,
inclusive, with respect to the Subordinated Notes if before the time for such compliance the Holders of at least a majority in
principal amount of the Outstanding Subordinated Notes, by Act of such Holders, 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 the Company and the duties of the Trustee in respect of any such term, provision or condition will remain in full force and
effect.

 

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		Section 9.08	Company Statement as to Compliance.

 

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

 

		Section 9.09	Tier
2 Capital.

 

If all or any portion
of the Subordinated Notes ceases to be deemed to be Tier 2 Capital, other than due to the limitation imposed on the capital treatment
of subordinated debt during the five (5) years immediately preceding the Maturity Date of the Subordinated Notes, the Company will
immediately notify the Trustee and the Holders thereof, and thereafter the Company and the Holders will work together in good faith,
subject to the terms of this Indenture, to execute and deliver all agreements as reasonably necessary in order to restructure the
applicable portions of the obligations evidenced by the Subordinated Notes to qualify as Tier 2 Capital and the Company shall request,
subject to the terms of this Indenture, that the Trustee execute and deliver all such agreements as may be reasonably necessary
in order to effect any restructuring agreed to by the Company and the Holders; provided, however, that nothing contained
in this Section 9.09 shall limit the Company’s right to redeem the Subordinated Notes upon the occurrence of a Tier
2 Capital Event pursuant to Section 10.01(3) hereof.

 

ARTICLE
X

REDEMPTION OF SECURITIES

 

		Section 10.01	Applicability
of Article.

 

(1)         
Except as provided in this Section 10.01, the Subordinated Notes are not subject to redemption at the option
of the Company. The Subordinated Notes are not subject to redemption at the option of the Holders.

 

(2)         
Subject to the receipt of the prior approval of the Board of Governors of the Federal Reserve System (the “Federal
Reserve”), to the extent such approval is then required under the capital adequacy rules of the Federal Reserve, with
corresponding written notice to the Trustee, the Company may, at its option, on any Interest Payment Date on or after September
30, 2024, redeem all or a portion of the Subordinated Notes.

 

(3)         
Subject to the receipt of the prior approval of the Federal Reserve, to the extent such approval is then required
under the capital adequacy rules of the Federal Reserve, with corresponding written notice to the Trustee, the Company may, at
its option, redeem all, but not a portion of the Outstanding Subordinated Notes at any time upon an Investment Company Event, a
Tax Event or a Tier 2 Capital Event.

 

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(4)         
The Redemption Price with respect to any redemption permitted under this Indenture will be equal to 100% of the principal
amount of the Subordinated Notes to be redeemed, plus accrued but unpaid interest and Additional Interest, if any, thereon to,
but excluding, the Redemption Date.

 

		Section 10.02	Election
to Redeem; Notice to Trustee.

 

The election of the
Company to redeem any Subordinated Notes will be evidenced by a Company Order. In case of any redemption of less than all of the
Subordinated Notes, the Company will, at least 60 days prior to the Redemption Date fixed by the Company (unless a shorter notice
will be satisfactory to the Trustee, but in any event not less than 45 days prior to the Redemption Date), notify the Trustee,
of such Redemption Date and of the principal amount of Subordinated Notes to be redeemed.

 

In the case of any
redemption of Subordinated Notes (i) prior to the expiration of any restriction on such redemption provided in the terms of such
Subordinated Notes or elsewhere in this Indenture or (ii) in accordance with an election of the Company that is subject to a condition
specified in the terms of such Subordinated Notes or elsewhere in this Indenture, the Company will furnish to the Trustee an Officers’
Certificate evidencing compliance with such restriction or condition.

 

		Section 10.03	Selection
by Trustee of Subordinated Notes to be Redeemed.

 

If less than all of
the Subordinated Notes are to be redeemed, the particular Subordinated Notes to be redeemed will be selected not more than 45 days
prior to the Redemption Date by the Trustee from the Outstanding Subordinated Notes not previously called for redemption unless
otherwise required by law or applicable depositary requirements, on a pro rata basis as to the Holders and which may provide for
the selection for redemption of portions of the principal amount of Subordinated Notes; provided, however, that no
such partial redemption will reduce the portion of the principal amount of a Subordinated Note not redeemed to less than the minimum
denomination for a Subordinated Note established in or under this Indenture. In the event a pro rata redemption is not permitted
under applicable law or applicable depositary requirements, the Subordinated Notes to be redeemed will be selected by lot or such
method as the Trustee will deem fair and appropriate.

 

The Trustee will promptly
notify the Company and the Registrar (if other than itself) in writing of the Subordinated Notes selected for redemption and, in
the case of any Subordinated Notes selected for partial redemption, the principal amount thereof to be redeemed.

 

For all purposes of
this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Subordinated Notes will relate,
in the case of any Subordinated Notes redeemed or to be redeemed only in part, to the portion of the principal of such Subordinated
Notes which has been or is to be redeemed.

 

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		Section 10.04	Notice of
Redemption.

 

Notice of redemption
will be given in the manner provided in Section 1.05, not less than 30 nor more than 60 days prior to the Redemption Date
to the Holders of Subordinated Notes to be redeemed. Failure to give notice by delivering in the manner herein provided to the
Holder of any Subordinated Notes designated for redemption as a whole or in part, or any defect in the notice to any such Holder,
will not affect the validity of the proceedings for the redemption of any other Subordinated Notes or portions thereof.

 

Any notice that is
delivered to the Holder of any Subordinated Notes in the manner herein provided will be conclusively presumed to have been duly
given, whether or not such Holder receives the notice.

 

All notices of redemption
will state:

 

(1)           
the Redemption Date,

 

(2)           
the Redemption Price,

 

(3)           
if less than all Outstanding Subordinated Notes are to be redeemed, the identification (and, in the case of partial
redemption, the principal amount) of the particular Subordinated Note or Subordinated Notes to be redeemed,

 

(4)           
that, in case any Subordinated Note is to be redeemed in part only, on and after the Redemption Date, upon surrender
of such Subordinated Note, the Holder of such Subordinated Note will receive, without charge, a new Subordinated Note or Subordinated
Notes of authorized denominations for the principal amount thereof remaining unredeemed,

 

(5)           
that, on the Redemption Date, the Redemption Price will become due and payable upon each such Subordinated Note or
portion thereof to be redeemed, together (if applicable) with accrued and unpaid interest and Additional Interest, if any, thereon
(subject, if applicable, to the provisos to the first paragraph of Section 10.06), and, if applicable, that interest thereon
will cease to accrue on and after said date,

 

(6)          
the place or places where such Subordinated Notes are to be surrendered for payment of the Redemption Price and any
accrued interest pertaining thereto, and

 

(7)           
the section hereunder providing for such redemption.

 

The notice of redemption
shall include the CUSIP number reference numbers of such Subordinated Notes, if any (or any other numbers used by a Depositary
to identify such Subordinated Notes).

 

Notice of redemption
of Subordinated Notes to be redeemed at the election of the Company will be given by the Company or, at the Company’s request
delivered at least 10 days before the date such notice is to be given (unless a shorter period will be acceptable to the Trustee)
together with the form of notice to be delivered, by the Trustee in the name and at the expense of the Company.

 

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		Section 10.05	Deposit
of Redemption Price.

 

On or prior to 11:00
a.m., Eastern time, on any Redemption Date, the Company will deposit, with respect to the Subordinated Notes called for redemption
in accordance with Section 10.04, with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 9.03) an amount sufficient to pay the Redemption Price of, and
(except if the Redemption Date will be an Interest Payment Date) any accrued interest on, all such Subordinated Notes or portions
thereof which are to be redeemed on that date.

 

		Section 10.06	Subordinated
Notes Payable on Redemption Date.

 

Notice of redemption
having been given as provided above, the Subordinated Notes so to be redeemed will, on the Redemption Date, become due and payable
at the Redemption Price therein specified, together with accrued and unpaid interest and Additional Interest, if any, thereon and
from and after such date (unless the Company will default in the payment of the Redemption Price and accrued interest, if any)
such Subordinated Notes will cease to bear interest. Upon surrender of any such Subordinated Note for redemption in accordance
with said notice, such Subordinated Note will be paid by the Company at the Redemption Price, together with any accrued and unpaid
interest and Additional Interest, if any, thereon to but excluding the Redemption Date; provided, however, that installments
of interest on Subordinated Notes whose Stated Maturity is on or prior to the Redemption Date will be payable to the Holders of
such Subordinated Notes registered as such on the Regular Record Dates therefor according to their terms and the provisions of
Section 2.10.

 

If any Subordinated
Note called for redemption will not be so paid upon surrender thereof for redemption, the principal, until paid, will bear interest
from the Redemption Date at the rate prescribed therefor in the Subordinated Note or, if no rate is prescribed therefor in the
Subordinated Note, at the rate of interest, if any, borne by such Subordinated Note.

 

		Section 10.07	Subordinated
Notes Redeemed in Part.

 

Any Subordinated Note
which is to be redeemed only in part will be surrendered at any office or agency for such Subordinated Note (with, if the Company
or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) and the Company will execute and the Trustee
will authenticate and deliver to the Holder of such Subordinated Note without service charge, a new Subordinated Note or Subordinated
Notes, containing identical terms and provisions, of any authorized denomination as requested by such Holder in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of the Subordinated Note so surrendered. If a Global
Subordinated Note is so surrendered, the Company will execute, and the Trustee will authenticate and deliver to the Depositary
for such Global Subordinated Note as will be specified in the Company Order with respect thereto to the Trustee, without service
charge, a new Global Subordinated Note in a denomination equal to and in exchange for the unredeemed portion of the principal of
the Global Subordinated Note so surrendered.

 

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Upon surrender of a
Subordinated Note that is redeemed in part, the Company will issue and the Trustee will authenticate for the Holder at the expense
of the Company a new Subordinated Note equal in principal amount to the unredeemed portion of the Subordinated Notes Note surrendered
representing the same indebtedness to the extent not redeemed. Notwithstanding anything in this Indenture to the contrary, only
a Company Order and not an Opinion of Counsel or an Officers’ Certificate of the Company is required for the Trustee to authenticate
such new Subordinated Note.

 

ARTICLE
XI

SUBORDINATION OF SECURITIES

 

		Section 11.01	Agreement
to Subordinate.

 

The Company, for itself,
its successors and assigns, covenants and agrees, and each Holder of Subordinated Notes by the Holder’s acceptance thereof,
likewise covenants and agrees, that the payment of the principal of and interest on each and all of the Subordinated Notes is and
will be expressly subordinated in right of payment to the prior payment in full of all Senior Indebtedness.

 

		Section 11.02	Distribution
of Assets.

 

(1)         
Upon any distribution of assets of the Company upon any termination, winding up, liquidation or reorganization of
the Company, whether in bankruptcy, insolvency, reorganization or receivership proceedings or upon an assignment for the benefit
of creditors or any other marshalling of the assets and liabilities of the Company or otherwise (subject to the power of a court
of competent jurisdiction to make other equitable provision reflecting the rights conferred upon the Senior Indebtedness and the
holders thereof with respect to the Subordinated Notes and the Holders thereof by a lawful plan of reorganization under applicable
bankruptcy law):

 

(a)          
holders of all Senior Indebtedness will first be entitled to receive payment in full in accordance with the terms
of such Senior Indebtedness of the principal thereof, premium, if any, and the interest due thereon (including interest accruing
subsequent to the commencement of any proceeding for the bankruptcy or reorganization of the Company under any applicable bankruptcy,
insolvency or similar law now or hereafter in effect) before the Holders of the Subordinated Notes are entitled to receive any
payment upon the principal of or interest on indebtedness evidenced by the Subordinated Notes;

 

(b)          
any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities,
to which the Holders would be entitled except for the provisions of this Article XI, including any such payment or distribution
that may be payable or deliverable by reason of the payment of any other indebtedness of the Company being subordinated to the
payment of the Subordinated Notes, will be paid by the liquidating trustee or agent or other Person making such payment or distribution,
whether a trustee in bankruptcy, a receiver or liquidating trustee or otherwise, directly to the holders of Senior Indebtedness
or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing
any of such Senior Indebtedness may have been issued, in accordance with the priorities then existing among holders of Senior Indebtedness
for payment of the aggregate amounts remaining unpaid on account of the principal, premium, if any, and interest (including interest
accruing subsequent to the commencement of any proceeding for the bankruptcy or reorganization of the Company under any applicable
bankruptcy, insolvency or similar law now or hereafter in effect) on the Senior Indebtedness held or represented by each, to the
extent necessary to make payment in full of all Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment
or distribution to the holders of such Senior Indebtedness; it being understood that if the Holders fail to file a proper claim
in the form required by any proceeding referred to in this Section 11.02(1)(b) prior to 30 days before the expiration of
the time to file such claim or claims, then the holders of Senior Indebtedness are hereby authorized to file an appropriate claim
or claims for and on behalf of the Holders, in the form required in any such proceeding; and

 

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(c)          
in the event that, notwithstanding the foregoing, any payment or distribution of assets of the Company of any kind
or character, whether in cash, property or securities, including any such payment or distribution that may be payable or deliverable
by reason of the payment of any other indebtedness of the Company being subordinate to the payment of the Subordinated Notes will
be received by the Trustee or the Holders before all Senior Indebtedness is paid in full, such payment or distribution will be
paid over to the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee, agent or other Person making payment
of assets of the Company for all Senior Indebtedness remaining unpaid until all such Senior Indebtedness will have been paid in
full, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness,

 

(2)         
Subject to the payment in full of all Senior Indebtedness, the Holders will be subrogated to the rights of the holders
of Senior Indebtedness to receive payments or distributions of cash, property or securities of the Company applicable to the Senior
Indebtedness until the principal of and interest on the Subordinated Notes will be paid in full and no such payments or distributions
to holders of such Senior Indebtedness to which the Holders would be entitled except for the provisions hereof of cash, property
or securities otherwise distributable to the holders of Senior Indebtedness will, as between the Company, its creditors, other
than the holders of Senior Indebtedness, and the Holders, be deemed to be a payment by the Company to or on account of the Senior
Indebtedness. It is understood that the provisions of this Article XI are intended solely for the purpose of defining the relative
rights of the Holders of the Subordinated Notes, on the one hand, and the holders of Senior Indebtedness, on the other hand. Nothing
contained in this Article XI or elsewhere in this Indenture or any supplemental indenture issued in accordance with Article VIII
of this Indenture or in the Subordinated Notes is intended to or will impair, as between the Company, its creditors, other than
the holders of Senior Indebtedness, and the Holders, the obligation of the Company, which is unconditional and absolute, to pay
to the Holders the principal of and interest on the Subordinated Notes as and when the same will become due and payable in accordance
with their terms or to affect the relative rights of the Holders and creditors of the Company, other than the holders of the Senior
Indebtedness, nor, except as otherwise expressly provided in this Indenture and the Subordinated Notes with respect to the limitation
on the rights of the Trustee and the Holders, to accelerate the maturity of the Subordinated Notes and pursue remedies upon such
an acceleration, will anything herein or in the Subordinated Notes prevent the Trustee or any Holder from exercising all remedies
otherwise permitted by applicable law upon any Event of Default under the Indenture occurring, subject to the rights, if any, under
this Article XI of the holders of Senior Indebtedness, in respect of cash, property or securities of the Company received upon
the exercise of any such remedy. Upon any payment or distribution of assets of the Company referred to in this Article XI, the
Trustee and the Holders will be entitled to rely upon any order or decree of a court of competent jurisdiction in which such termination,
winding up, liquidation or reorganization proceeding is pending or upon a certificate of the liquidating trustee or agent or other
Person making any distribution to the Trustee or to the Holders for the purpose of ascertaining the Persons entitled to participate
in such distribution, the holders of the Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article XI. In the
absence of any such liquidating trustee, agent or other person, the Trustee will be entitled to rely upon a written notice by a
Person representing itself to be a holder of Senior Indebtedness (or a trustee or representative on behalf of such holder) as evidence
that such Person is a holder of Senior Indebtedness (or is such a trustee or representative). If the Trustee determines, in good
faith, that further evidence is required with respect to the right of any Person, as a holder of Senior Indebtedness, to participate
in any payment or distribution in accordance with this Article XI, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, as to the extent to which such
Person is entitled to participation in such payment or distribution, and as to other facts pertinent to the rights of such Person
under this Article XI, and if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

 

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With respect to the
holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only such of its covenants and obligations as are
specifically set forth in this Indenture, and no implied covenants or obligations with respect to the holders of Senior Indebtedness
will be read into this Indenture against the Trustee. The Trustee, however, will not be deemed to owe any fiduciary duty to the
holders of Senior Indebtedness by reason of the execution of this Indenture, or any other supplemental indenture entered into in
accordance with Article VIII of this Indenture, and will not be liable to any such holders if it will in good faith mistakenly
pay over or distribute to or on behalf of the Holders or the Company moneys or assets to which any holders of Senior Indebtedness
will be entitled by virtue of this Article XI or otherwise.

 

		Section 11.03	Default With
Respect to Senior Indebtedness.

 

In the event and during
the continuation of any default in the payment of principal of, or premium, if any, or interest on, any Senior Indebtedness, beyond
any applicable grace period, or if any event of default with respect to any Senior Indebtedness will have occurred and be continuing,
or would occur as a result of the payment referred to hereinafter, permitting the holders of such Senior Indebtedness (or a trustee
on behalf of the holders thereof) to accelerate the maturity thereof, then, unless and until such default or event of default will
have been cured or waived or will have ceased to exist, no payment or principal of or interest on the Subordinated Notes, or in
respect of any retirement, purchase or other acquisition of any of the Subordinated Notes, will be made by the Company.

 

		Section 11.04	No Impairment.

 

Nothing contained in
this Indenture, any other supplemental indenture entered into in accordance with Article VIII of this Indenture, or in any of the
Subordinated Notes will: (i) impair, as between the Company and the Holders, the obligations of the Company, to make, or prevent
the Company from making, at any time except as provided in Section 11.02 and Section 11.03, payments of principal
of, or interest (including interest accruing subsequent to the commencement of any proceeding for the bankruptcy or reorganization
of the Company under any applicable bankruptcy, insolvency, or similar law now or hereafter in effect) on, the Subordinated Notes,
as and when the same will become due and payable in accordance with the terms of the Subordinated Notes; (ii) affect the relative
rights of the Holders and creditors of the Company other than the holders of the Senior Indebtedness; (iii) except as otherwise
expressly provided in this Indenture and the Subordinated Notes with respect to the limitation on the rights of the Trustee and
the Holders, to accelerate the maturity of the Subordinated Notes and pursue remedies upon such an acceleration, prevent the Holder
of any Subordinated Notes or the Trustee from exercising all remedies otherwise permitted by applicable law upon default thereunder,
subject to the rights, if any, under this Article XI of the holders of Senior Indebtedness in respect of cash, property or securities
of the Company received upon the exercise of such remedy; or (iv) prevent the application by the Trustee or any Paying Agent of
any moneys deposited with it hereunder to the payment of or on account of the principal of, or interest on, the Subordinated Notes
or prevent the receipt by the Trustee or any Paying Agent of such moneys, if, prior to the third Business Day prior to such deposit,
the Trustee or such Paying Agent did not have written notice of any event prohibiting the making of such deposit by the Company.

 

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		Section 11.05	Effectuation
of Subordination Provisions.

 

Each Holder by his
acceptance of any Notes authorizes and expressly directs the Trustee on such Holder’s behalf to take such action as may be
necessary or appropriate to effectuate the Subordination Provisions, and appoints the Trustee such Holder’s attorney-in-fact
for such purposes, including, in the event of any termination, winding up, liquidation or reorganization of the Company (whether
in bankruptcy, insolvency, receivership, reorganization or similar proceedings or upon an assignment for the benefit of creditors
by the Company, a marshalling of the assets and liabilities of the Company or otherwise) tending toward the liquidation of the
property and assets of the Company, the filing of a claim for the unpaid balance of the Subordinated Notes in the form required
in those proceedings.

 

		Section 11.06	Notice
to Trustee.

 

The Company will give
prompt written notice to the Trustee of any fact known to the Company that would prohibit the Company from making any payment to
or by the Trustee in respect of the Subordinated Notes in accordance with the provisions of this Article XI. The Trustee will not
be charged with the knowledge of the existence of any default or event of default with respect to any Senior Indebtedness or of
any other facts that would prohibit the making of any payment to or by the Trustee or any Paying Agent unless and until a Responsible
Officer of the Trustee has received a written notice specifying such default, event of default or other facts signed by an Authorized
Officer, or by a holder of Senior Indebtedness or a trustee or agent thereof; and prior to the receipt of any such written notice,
the Trustee will, subject to Article V of this Indenture, be entitled to assume that no such facts exist; provided that, if the
Trustee will not have received the notice provided for in this Section 11.06 at least two Business Days prior to the date
upon which, by the terms of the Indenture, any monies will become payable for any purpose (including, without limitation, the payment
of the principal of or interest on any Subordinated Note), then, notwithstanding anything herein to the contrary, the Trustee will
have full power and authority to receive any monies from the Company and to apply the same to the purpose for which they were received,
and will not be affected by any notice to the contrary that may be received by it on or after such prior date except for an acceleration
of the Subordinated Notes prior to such application. The foregoing will not apply if the Paying Agent is the Company. The Trustee
will be entitled to rely on the delivery to it of a written notice by a Person representing himself or itself to be a holder of
any Senior Indebtedness (or a trustee on behalf of, or agent of, such holder) to establish that such notice has been given by a
holder of such Senior Indebtedness or a trustee or agent on behalf of any such holder.

 

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In the event that the
Trustee determines in good faith that any evidence is required with respect to the right of any Person as a holder of Senior Indebtedness
to participate in any payment or distribution in accordance with this Article XI, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, the extent
to which such Person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of
such Person under this Article XI and, if such evidence is not furnished to the Trustee, the Trustee may defer any payment to such
Person pending such evidence being furnished to the Trustee or a judicial determination that such Person has the right to receive
such payment.

 

		Section 11.07	Trustee
Knowledge of Senior Indebtedness.

 

Notwithstanding the
provisions of this Article XI or any other provisions of this Indenture or any other supplemental indenture issued in accordance
with Article VIII of this Indenture, neither the Trustee nor any Paying Agent will be charged with knowledge of the existence of
any Senior Indebtedness or of any event that would prohibit the making of any payment of moneys to or by the Trustee or such Paying
Agent, unless and until a Responsible Officer of the Trustee or such Paying Agent has received written notice thereof from the
Company or from the holder of any Senior Indebtedness or from the representative of any such holder.

 

		Section 11.08	Senior Indebtedness
to Trustee.

 

The Trustee will be
entitled to all of the rights set forth in this Article XI in respect of any Senior Indebtedness at any time held by it in its
individual capacity to the same extent as any other holder of such Senior Indebtedness, and nothing in this Indenture or any other
supplemental indenture issued in accordance with Article VIII of this Indenture will be construed to deprive the Trustee of any
of its rights as such holder.

 

		Section 11.09	Subordination
Not Applicable to Trustee Compensation.

 

Nothing contained in
this Article XI will apply to the claims of, or payments to, the Trustee under Section 5.07 of this Indenture.

 

The Trustee hereby
accepts the trusts in this Indenture upon the terms and conditions set forth herein.

 

[Signature Page
Follows]

 

    69

     

    

  

IN WITNESS WHEREOF,
the parties hereto have caused this Indenture to be duly signed as of the date first written above.

 

	 	MIDLAND STATES BANCORP, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Jeffrey G. Ludwig
	 	Name	Jeffrey G. Ludwig
	 	Title	President and Chief Executive Officer

 

[Signature Page to Indenture]

 

     

     

    

 

	 	UMB Bank National Association
	 	As Trustee
	 	 	 
	 	 	 
	 	By:	/s/ Mauri J. Cowen
	 	Name	Mauri J. Cowen
	 	Title	Sr. Vice President

 

[Signature Page to Indenture]

 

     

     

    

 

Exhibit A-1

Form of Definitive Subordinated Notes

 

MIDLAND STATES BANCORP, INC.

 

5.00% FIXED-TO-FLOATING RATE SUBORDINATED
NOTE DUE SEPTEMBER 30, 2029

 

[THE SECURITIES REPRESENTED BY THIS INSTRUMENT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR SECURITIES LAWS OF
ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT (A) PURSUANT TO, AND IN ACCORDANCE WITH, A REGISTRATION
STATEMENT THAT IS EFFECTIVE UNDER THE SECURITIES ACT AT THE TIME OF SUCH TRANSFER; (B) TO A PERSON THAT YOU REASONABLY BELIEVE
TO BE A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT OR TO A PERSON THAT YOU REASONABLY
BELIEVE TO BE AN INSTITUTIONAL ACCREDITED INVESTOR AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES
ACT; OR (C) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (INCLUDING, IF AVAILABLE,
THE EXEMPTION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT).]

 

THE SECURITY AND THE OBLIGATIONS OF THE
COMPANY AS EVIDENCED BY THIS SUBORDINATED NOTE (1) ARE NOT A DEPOSIT AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
OR ANY OTHER GOVERNMENT AGENCY OR FUND AND (2) ARE SUBORDINATE IN THE RIGHT OF PAYMENT TO ALL SENIOR INDEBTEDNESS (AS DEFINED IN
THE INDENTURE IDENTIFIED HEREIN).

 

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 PLANS, OR ANY OTHER PERSON OR ENTITY USING THE “PLAN ASSETS” OF ANY SUCH EMPLOYEE BENEFIT PLAN OR PLAN
TO FINANCE SUCH PURCHASE OR (ii) SUCH PURCHASE OR HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA
OR SECTION 4975 OF THE CODE FOR WHICH FULL EXEMPTIVE RELIEF IS NOT AVAILABLE UNDER APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

 

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

 

    A-1-1

     

    

 

	No. 2029-[●]	ACCREDITED INVESTOR CUSIP: 597742 AG0 / US597742AG00
	 	QIB CUSIP: 597742 AF2 / US597742AF27
	 	[REGISTERED CUSIP: [●]/[●]]

 

MIDLAND STATES BANCORP, INC.

 

5.00% FIXED-TO-FLOATING RATE SUBORDINATED
NOTE DUE 2029

 

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

 

1.            Indenture;
Holder. This Subordinated Note is one of a duly authorized issue of notes of Midland States Bancorp, Inc., an Illinois corporation
(the “Company”), designated as the “5.00% Fixed-to-Floating Rate Subordinated Notes due 2029” (the “Subordinated
Notes”) in an aggregate principal amount of $72,750,000 and initially issued on September 20, 2019. The Company has issued
this Subordinated Note under that certain Indenture dated as of September 20, 2019, relating to the Subordinated Notes, as the
same may be amended or supplemented from time to time (“Indenture”), between the Company and UMB Bank National Association,
a national banking association, as Trustee (the “Trustee”). All capitalized terms not otherwise defined in this Subordinated
Note will have the meanings assigned to them in the Indenture. The terms of this Subordinated Note include those stated in the
Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the “Trust Indenture
Act”). This Subordinated Note is subject to all such terms, and the Holder (as defined below) is referred to the Indenture
and the Trust Indenture Act for a statement of such terms. To the extent any provision of this Subordinated Note irreconcilably
conflicts with the express provisions of the Indenture, the provisions of the Indenture will govern and be controlling.

 

2.            Payment.
The Company, for value received, promises to pay to [●], the principal sum of [●] DOLLARS (U.S.) ($[●]),
plus accrued but unpaid interest on September 30, 2029 (“Stated Maturity”) and to pay interest thereon (i) from and
including the original issue date of the Subordinated Notes, or from the most recent date to which interest has been paid or duly
provided for, to but excluding September 30, 2024, at the rate of 5.00% per annum, computed on the basis of a 360-day year consisting
of twelve 30-day months and payable semi-annually in arrears on March 30 and September 30 of each year (each, a “Fixed Interest
Payment Date”), beginning March 30, 2020, and (ii) from and including September 30, 2024 to, but excluding the Stated Maturity
or the early redemption date contemplated by Section 5 of this Subordinated Note (the “Floating Rate Period”), at the
rate per annum, reset quarterly, equal to the Floating Interest Rate (as defined below) determined on the Floating Interest Determination
Date (as defined below) of the applicable interest period plus 361 basis points, computed on the basis of a 360-day year and the
actual number of days elapsed and payable quarterly in arrears on March 30, June 30, September 30 and December 30 (each quarterly
period, a “Floating Interest Period”) of each year (each payment date, a “Floating Interest Payment Date”).
Dollar amounts resulting from this calculation shall be rounded to the nearest cent, with one-half cent being rounded up. The term
“Floating Interest Determination Date” means the date upon which the Floating Interest Rate is determined by the Calculation
Agent pursuant to the Three-Month Term SOFR Conventions. The Company will pay all Additional Interest (as defined in the Indenture),
if any, on the dates and in the amounts set forth in the Registration Rights Agreement (as defined in the Indenture).

 

    A-1-2

     

    

 

(a)          An “Interest
Payment Date” is either a Fixed Interest Payment Date or a Floating Interest Payment Date, as applicable.

 

(b)         
The “Floating Interest Rate” means:

 

(i)          initially
Three-Month Term SOFR (as defined below).

 

		(ii)	Notwithstanding the foregoing clause (i) of this Section 2(b):

 

		(1)	If the Calculation Agent determines prior to the relevant Floating Interest Determination Date that a Benchmark Transition
Event and its related Benchmark Replacement Date (each of such terms as defined below) have occurred with respect to Three-Month
Term SOFR, then the Company shall promptly provide notice of such determination to the Holder and Section 2(c) will thereafter
apply to all determinations, calculations and quotations made or obtained for the purposes of calculating the Floating Interest
Rate payable on the Subordinated Notes during a relevant Floating Interest Period.

 

		(2)	However, if the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have
occurred with respect to Three-Month Term SOFR, but for any reason the Benchmark Replacement has not been determined as of the
relevant Floating Interest Determination Date, the Floating Interest Rate for the applicable Floating Interest Period will be equal
to the Floating Interest Rate on the last Floating Interest Determination Date for the Subordinated Notes, as determined by the
Calculation Agent.

 

		(iii)	If the then-current Benchmark is Three-Month Term SOFR and any of the foregoing provisions concerning the calculation of the
interest rate and the payment of interest during the Floating Rate Period are inconsistent with any of the Three-Month Term SOFR
Conventions (as defined below) determined by the Calculation Agent, then the relevant Three-Month Term SOFR Conventions will apply.

 

(c)          Effect
of Benchmark Transition Event.

 

		(i)	If the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred
prior to the Reference Time (as defined below) in respect of any determination of the Benchmark (as defined below) on any date,
the Benchmark Replacement will replace the then-current Benchmark for all purposes relating to the Subordinated Notes during the
relevant Floating Interest Period in respect of such determination on such date and all determinations on all subsequent dates.

 

    A-1-3

     

    

 

		(ii)	In connection with the implementation of a Benchmark Replacement, the Company will have the right to make Benchmark Replacement
Conforming Changes from time to time.

 

		(iii)	Any determination, decision or election that may be made by the Calculation Agent pursuant to the benchmark transition provisions
set forth herein, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence
of an event, circumstance or date, and any decision to take or refrain from taking any action or any selection:

 

		(1)	will be conclusive and binding absent manifest error;

 

		(2)	if made by the Company, will be made in the Company’s sole discretion; and

 

		(3)	notwithstanding anything to the contrary in this Subordinated Note or the Indenture, shall become effective without consent
from the Holder or any other party.

 

		(iv)	For the avoidance of doubt, after a Benchmark Transition Event and its related Benchmark Replacement Date have occurred, interest
payable on this Subordinated Note for the Floating Rate Period will be an annual rate equal to the sum of the applicable Benchmark
Replacement and the spread specified on the face hereof.

 

		(v)	As used in this Subordinated Note:

 

		1.	“Benchmark” means, initially, Three-Month Term SOFR; provided that if a Benchmark Transition Event and its related
Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR or the then-current Benchmark, then “Benchmark”
means the applicable Benchmark Replacement.

 

		2.	“Benchmark Replacement” means the Interpolated Benchmark with respect to the then-current Benchmark, plus the Benchmark
Replacement Adjustment for such Benchmark; provided that if (a) the Calculation Agent cannot determine the Interpolated Benchmark
as of the Benchmark Replacement Date or (b) the then-current Benchmark is Three-Month Term SOFR and a Benchmark Transition Event
and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR (in which event no Interpolated
Benchmark with respect to Three-Month Term SOFR shall be determined), then “Benchmark Replacement” means the first
alternative set forth in the order below that can be determined by the Calculation Agent, as of the Benchmark Replacement Date:

 

    A-1-4

     

    

 

		a.	Compounded SOFR;

 

		b.	the sum of: (i) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body
as the replacement for the then-current Benchmark for the applicable Corresponding Tenor and (ii) the Benchmark Replacement
Adjustment;

 

		c.	the sum of: (i) the ISDA Fallback Rate and (ii) the Benchmark Replacement Adjustment;

 

		d.	the sum of: (i) the alternate rate of interest that has been selected by the Company as the replacement for the then-current
Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of interest as a replacement
for the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (ii) the Benchmark Replacement
Adjustment.

 

		3.	“Benchmark Replacement Adjustment” means the first alternative set forth in the order below that can be determined
by the Calculation Agent, as of the Benchmark Replacement Date:

 

		a.	the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative
value or zero) that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark
Replacement;

 

		b.	if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment;

 

		c.	the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Calculation Agent giving
due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment,
for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated
floating rate notes at such time.

 

		4.	“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative
or operational changes (including changes to the definition of “Floating Interest Period,” timing and frequency of
determining rates with respect to each Floating Interest Period and making payments of interest, rounding of amounts or tenors
and other administrative matters) that the Company decides may be appropriate to reflect the adoption of such Benchmark Replacement
in a manner substantially consistent with market practice (or, if the Company decides that adoption of any portion of such market
practice is not administratively feasible or if the Calculation Agent determines that no market practice for use of the Benchmark
Replacement exists, in such other manner as the Calculation Agent determines is reasonably necessary).

 

    A-1-5

     

    

 

		5.	“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current
Benchmark:

 

		a.	in the case of clause (a) of the definition of “Benchmark Transition Event,” the relevant Reference Time in respect
of any determination;

 

		b.	in the case of clause (b) or (c) of the definition of “Benchmark Transition Event,” the later of (i) the
date of the public statement or publication of information referenced therein and (ii) the date on which the administrator
of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

 

		c.	in the case of clause (d) of the definition of “Benchmark Transition Event,” the date of such public statement
or publication of information referenced therein.

 

For the avoidance of doubt,
if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect
of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for purposes of
such determination.

 

		6.	“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current
Benchmark:

 

		a.	if the Benchmark is Three-Month Term SOFR, (i) the Relevant Governmental Body has not selected or recommended a forward-looking
term rate for a tenor of three months based on SOFR, (ii) the development of a forward-looking term rate for a tenor of three months
based on SOFR that has been recommended or selected by the Relevant Governmental Body is not complete or (iii) the Calculation
Agent determines that the use of a forward-looking rate for a tenor of three months based on SOFR is not administratively feasible;

 

		b.	a public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such
administrator has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such
statement or publication, there is no successor administrator that will continue to provide the Benchmark;

 

    A-1-6

     

    

 

		c.	a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central
bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution
authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution
authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease
to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no
successor administrator that will continue to provide the Benchmark; or

 

		d.	a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing
that the Benchmark is no longer representative.

 

		7.	“Calculation Agent” means such bank or other entity (which may be the Company or one of its Affiliates) as may
be appointed by the Company, in writing, to act as Calculation Agent for the Subordinated Notes during the Floating Rate Period,
and who has accepted such appointment in writing.

 

		8.	“Compounded SOFR” means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate,
or methodology for this rate, and conventions for this rate (which will be compounded in arrears with a lookback and/or suspension
period as a mechanism to determine the interest amount payable prior to the end of each Floating Interest Period) being established
by the Company in accordance with:

 

		a.	the rate, or methodology for this rate, and conventions for this rate selected or recommended by the Relevant Governmental
Body for determining compounded SOFR; provided that:

 

		b.	if, and to the extent that, the Calculation Agent determines that Compounded SOFR cannot be determined in accordance with clause
(a) above, then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Company
or its designee giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating rate notes
at such time.

 

For the avoidance of doubt,
the calculation of Compounded SOFR will exclude the Benchmark Replacement Adjustment.

 

    A-1-7

     

    

 

		9.	“Corresponding Tenor” with respect to a Benchmark Replacement means a tenor (including overnight) having approximately
the same length (disregarding Business Day adjustment) as the applicable tenor for the then-current Benchmark.

 

		10.	“FRBNY” means the Federal Reserve Bank of New York.

 

		11.	“FRBNY’s Website” means the website of the FRBNY at http://www.newyorkfed.org or any successor source.

 

		12.	“Interpolated Benchmark” with respect to the Benchmark means the rate determined for the Corresponding Tenor by
interpolating on a linear basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that
is shorter than the Corresponding Tenor and (2) the Benchmark for the shortest period (for which the Benchmark is available)
that is longer than the Corresponding Tenor.

 

		13.	“ISDA” means the International Swaps and Derivatives Association, Inc. or any successor thereto.

 

		14.	“ISDA Definitions” means the 2006 ISDA Definitions published by the ISDA or any successor thereto, as amended or
supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time.

 

		15.	“ISDA Fallback Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that
would apply for derivatives transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation
event with respect to the Benchmark for the applicable tenor.

 

		16.	“ISDA Fallback Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions
to be effective upon the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding
the applicable ISDA Fallback Adjustment.

 

		17.	“Reference Time” with respect to any determination of a Benchmark means (1) if the Benchmark is Three-Month Term
SOFR, the time determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, and (2) if the
Benchmark is not Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Benchmark Replacement
Conforming Changes.

 

    A-1-8

     

    

 

		18.	“Relevant Governmental Body” means the Federal Reserve Board and/or the FRBNY, or a committee officially endorsed
or convened by the Federal Reserve Board and/or the FRBNY or any successor thereto.

 

		19.	“SOFR” means the daily Secured Overnight Financing Rate provided by the FRBNY, as the administrator of the benchmark
(or a successor administrator), on the FRBNY’s Website.

 

		20.	“Term SOFR” means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant
Governmental Body.

 

		21.	“Term SOFR Administrator” means any entity designated by the Relevant Governmental Body as the administrator of
Term SOFR (or a successor administrator).

 

		22.	“Three-Month Term SOFR” means the greater of (i) the rate for Term SOFR for a tenor of three months that is published
by the Term SOFR Administrator at the Reference Time for any Floating Interest Period, as determined by the Calculation Agent after
giving effect to the Three-Month Term SOFR Conventions; and (ii) zero percent (0.00%).

 

		23.	“Three-Month Term SOFR Conventions” means any determination, decision or election by the Calculation Agent with
respect to any technical, administrative or operational matter (including with respect to the manner and timing of the publication
of Three-Month Term SOFR, or changes to the definition of “Floating Interest Period”, timing and frequency of determining
Three-Month Term SOFR with respect to each Floating Interest Period and making payments of interest, rounding of amounts or tenors,
and other administrative matters) that the Calculation Agent decides may be appropriate to reflect the use of Three-Month Term
SOFR as the Benchmark in a manner substantially consistent with market practice (or, if the Company decides that adoption of any
portion of such market practice is not administratively feasible or if the Calculation Agent determines that no market practice
for the use of Three-Month Term SOFR exists, in such other manner as the Calculation Agent determines is reasonably necessary).

 

		24.	“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

    A-1-9

     

    

 

(d)         In
the event that any Fixed Interest Payment Date during the Fixed Rate Period falls on a day that is not a Business Day (as defined
below), the dividend payment due on that date shall be postponed to the next day that is a Business Day and no additional dividends
shall accrue as a result of that postponement. In the event that any Floating Interest Payment Date during the Floating Rate Period
falls on a day that is not a Business Day (as defined below), the dividend payment due on that date shall be postponed to the next
day that is a Business Day and dividends shall accrue to but excluding the date dividends are paid. However, if the postponement
would cause the day to fall in the next calendar month during the Floating Interest Period, the Floating Interest Payment Date
shall instead be brought forward to the immediately preceding Business Day. The term “Business Day” means any day other
than a Saturday or Sunday or any other day on which banking institutions in the State of Illinois or State of New York are generally
authorized or required by law or executive order to be closed.

 

The Company will pay
interest on this Subordinated Note to the Person who is the registered Holder at the close of business on the fifteenth calendar
day prior to the applicable Interest Payment Date, except as provided in Section 2.10 of the Indenture with respect to Defaulted
Interest. This Subordinated Note will be payable as to principal and interest at the office or agency of the Paying Agent, or,
at the option of the Company, payment of interest may be made by check delivered to the Holder at its address set forth in the
Subordinated Note Register or by wire transfer to an account appropriately designated by the Person entitled to payment; provided,
that the Paying Agent will have received written notice of such account designation at least five Business Days prior to the
date of such payment (subject to surrender of this Subordinated Note in the case of a payment of interest at Maturity).

 

3.          Paying
Agent and Registrar. The Trustee will act as the initial Paying Agent and Registrar through its offices presently located at
[●]. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company or any of its
Subsidiaries may act in any such capacity.

 

4.          Subordination.
The indebtedness of the Company evidenced by this Subordinated Note, including the principal thereof and interest thereon, is,
to the extent and in the manner set forth in the Indenture, subordinate and junior in right of payment to obligations of the Company
constituting the Senior Indebtedness (as defined in the Indenture) on the terms and subject to the terms and conditions as provided
and set forth in Article XI of the Indenture and will rank pari passu in right of payment with all other Subordinated Notes.
Holder, by the acceptance of this Subordinated Note, agrees to and will be bound by such provisions of the Indenture and authorizes
and directs the Trustee on his behalf to take such actions as may be necessary or appropriate to effectuate the subordination so
provided.

 

5.          Redemption.

 

(a)          The
Company may, at its option, on any Interest Payment Date on or after September 30, 2024, redeem this Subordinated Note, in whole
or in part, without premium or penalty, but in all cases in a principal amount with integral multiples of $1,000. In addition,
the Company may redeem all, but not a portion of the Subordinated Notes, at any time upon the occurrence of a Tier 2 Capital Event,
Tax Event or an Investment Company Event. Any redemption of this Subordinated Note shall be subject to the prior approval of the
Board of Governors of the Federal Reserve System (or its designee) or any successor agency, and any other bank regulatory agency,
to the extent such approval shall then be required by law, regulation or policy. This Subordinated Note is not subject to redemption
at the option of the Holder. The Redemption Price with respect to any redemption permitted under this Indenture will be equal to
100% of the principal amount of this Subordinated Note, or portion thereof, to be redeemed, plus accrued but unpaid interest and
Additional Interest, if any, thereon to, but excluding, the Redemption Date.

 

    A-1-10

     

    

 

(b)          If
less than the then outstanding principal amount of this Subordinated Note is redeemed, (i) a new 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 Holder. For purposes of clarity, upon a partial redemption, a like percentage of the principal amount of every Subordinated
Note held by every Holder shall be redeemed.

 

(c)          Effectiveness
of Redemption. If notice of redemption has been duly given and notwithstanding that any Subordinated Notes so called for redemption
have not been surrendered for cancellation, on and after the Redemption Date interest shall cease to accrue on all Subordinated
Notes so called for redemption, all Subordinated Notes so called for redemption shall no longer be deemed outstanding and all rights
with respect to such Subordinated Notes shall forthwith on such Redemption Date cease and terminate (unless the Company shall default
in the payment of the redemption price), except only the right of the Holder thereof to receive the amount payable on such redemption,
without interest.

 

6.          Events
of Default; Acceleration. An “Event of Default” means any one of the events described in Section 4.01 of the Indenture.
If an Event of Default described in Section 4.01(1) or Section 4.01(2) of the Indenture occurs, then the principal amount of all
of the Outstanding Subordinated Notes, and accrued and unpaid interest, if any, on all Outstanding Subordinated Notes will become
and be immediately due and payable without any declaration or other act on the part of the Trustee or the Holder, and the Company
waives demand, presentment for payment, notice of nonpayment, notice of protest, and all other notices. Notwithstanding the foregoing,
because the Company will treat the Subordinated Notes as Tier 2 Capital, upon the occurrence of an Event of Default other than
an Event of Default described in Section 4.01(1) or Section 4.01(2) of the Indenture, neither the Trustee nor the Holder may accelerate
the Maturity of the Subordinated Notes and make the principal of, and any accrued and unpaid interest on, the Subordinated Notes,
immediately due and payable. If any Event of Default occurs and is continuing, the Trustee may also pursue any other available
remedy to collect the payment of principal of, and interest on, the Subordinated Notes then due and payable or to enforce the performance
of any provision of the Subordinated Notes or the Indenture.

 

7.          Failure
to Make Payments. If the Company fails to make any payment of interest on this Subordinated Note when such interest becomes
due and payable and such default continues for a period of 30 days, or if the Company fails to make any payment of the principal
of this Subordinated Note when such principal becomes due and payable, the Company will, upon demand of the Trustee, pay to the
Trustee, for the benefit of the Holder, the whole amount then due and payable with respect to this Subordinated Note, with interest
upon the overdue principal, any premium and, to the extent permitted by applicable law, upon any overdue installments of interest
at the rate or respective rates, as the case may be, provided for or with respect to this Subordinated Note or, if no such rate
or rates are so provided, at the rate or respective rates, as the case may be, of interest borne by this Subordinated Note.

 

    A-1-11

     

    

 

Upon an Event of Default,
the Company may not declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Company’s capital stock, make any payment of principal or interest or premium, if any, on or
repay, repurchase or redeem any debt securities of the Company that rank equal with or junior to this Subordinated Note, or make
any payments under any guarantee that ranks equal with or junior to this Subordinated Note, 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 in accordance with 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.

 

8.          Denominations,
Transfer, Exchange. The Subordinated Notes are issuable only in registered form without interest coupons in minimum denominations
of $1,000 and integral multiples of $1,000 in excess thereof. The transfer of this Subordinated Note may be registered and this
Subordinated Note may be exchanged as provided in the Indenture. The Registrar may require the Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require the Holder to pay any taxes and fees required by law
or permitted by the Indenture.

 

9.          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 the 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 Holder requesting such
transfer or exchange.

 

10.         Persons
Deemed Owners. The Company and the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Subordinated Note is registered as the owner hereof for all purposes, whether or not this Subordinated Note is overdue, and neither
the Company, the Trustee nor any such agent will be affected by notice to the contrary.

 

11.         Amendments;
Waivers. The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the rights of the Holders of the Subordinated Notes at any time by the Company and
the Trustee with the consent of the holders of a majority in principal amount of the then Outstanding Subordinated Notes. The Indenture
also contains provisions permitting the holders of specified percentages in principal amount of the then Outstanding Subordinated
Notes, on behalf of the holders of all Subordinated Notes, to waive certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Subordinated Note will 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
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Subordinated Note.

 

    A-1-12

     

    

 

12.         No
Impairment. No reference herein to the Indenture and no provision of this Subordinated Note or of the Indenture will alter
or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest (if any) and
Additional Interest on this Subordinated Note at the times, place and rate as herein prescribed.

 

13.         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 the Company or any Subsidiary.

 

14.         No
Recourse Against Others. No recourse under or upon any obligation, covenant or agreement contained in the Indenture or 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 the Company or of any predecessor or successor, either directly or through
the Company or any predecessor or successor, under any rule 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 and as part of the consideration for the issuance of this Subordinated Note.

 

15.         Authentication.
This Subordinated Note will not be valid until authenticated by the manual signature of the Trustee or an Authenticating Agent.

 

16.         Abbreviations.
Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= custodian),
and U/G/M/A (= Uniform Gifts to Minors Act). Additional abbreviations may also be used though not in the above list.

 

17.         Available
Information. The Company will furnish to the Holder upon written request and without charge a copy of the Indenture. Requests
by the Holder to the Company may be made to: Midland States Bancorp, Inc., 1201 Network Centre Drive, Effingham, Illinois 62401,
Attention: Douglas J. Tucker, Corporate Counsel.

 

18.         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 ANY LAWS OR PRINCIPLES OF CONFLICT
OF LAWS THAT WOULD APPLY THE LAWS OF A DIFFERENT JURISDICTION.

 

[Signature page follows]

 

    A-1-13

     

    

 

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

 

	 	MIDLAND STATES BANCORP, INC.
	 	 	 	 
	 	 	 	 
	 	By:	 
	 	 	Name:	 Jeffrey G. Ludwig
	 	 	Title:	 Chief Executive Officer and President

 

[Signature page to Certificate of Authentication]

 

    	 		 

     

    

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the
Subordinated Notes of Midland States Bancorp, Inc., referred to in the within-mentioned Indenture:

 

UMB BANK NATIONAL ASSOCIATION,

a national banking association, as Trustee

 

	By:		 
	Name: 	 	 
	Title:	 	 
	Dated: 	 	 

 

[Signature page to Certificate of Authentication]

 

     

     

    

 

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 the 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 Exchange Act Rule 17Ad-15).

 

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

 

    A-1-16

     

    

 

 ̈     (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 of 1933, as amended. 

 

Unless one of the boxes is checked, the
Paying Agent 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, the Paying Agent may require, prior to registering any such transfer
of this Subordinated Note, in its sole discretion, such legal opinions, certifications and other information as the Paying Agent
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-15).

 

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

 

The undersigned represents
and warrants that it is purchasing this Subordinated Note for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning
of Rule 144A under the Securities Act of 1933, as amended, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the 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:	 

 

    A-1-17

     

    

 

Exhibit A-2

Form of Global Subordinated Notes

 

MIDLAND STATES BANCORP, INC.

 

5.00% FIXED-TO-FLOATING RATE SUBORDINATED
NOTE DUE SEPTEMBER 30, 2029

 

[THE SECURITIES REPRESENTED BY THIS INSTRUMENT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR SECURITIES LAWS OF
ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT (A) PURSUANT TO, AND IN ACCORDANCE WITH, A REGISTRATION
STATEMENT THAT IS EFFECTIVE UNDER THE SECURITIES ACT AT THE TIME OF SUCH TRANSFER; (B) TO A PERSON THAT YOU REASONABLY BELIEVE
TO BE A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT OR TO A PERSON THAT YOU REASONABLY
BELIEVE TO BE AN INSTITUTIONAL ACCREDITED INVESTOR AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES
ACT; OR (C) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (INCLUDING, IF AVAILABLE,
THE EXEMPTION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT).]

 

THIS SUBORDINATED NOTE IS A GLOBAL SUBORDINATED
NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF CEDE & CO AS NOMINEE OF THE
DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS SUBORDINATED NOTE IS EXCHANGEABLE FOR SUBORDINATED NOTES
REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE,
AND NO TRANSFER OF THIS SUBORDINATED NOTE (OTHER THAN A TRANSFER OF THIS SUBORDINATED NOTE AS A WHOLE BY DTC TO A NOMINEE OF DTC
OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES SPECIFIED IN THE INDENTURE.

 

UNLESS THIS SUBORDINATED NOTE IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
SUBORDINATED NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO, OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

    	 	A-2-1	 

     

    

 

TRANSFERS OF THIS SUBORDINATED NOTE WILL
BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE
AND TRANSFERS OF PORTIONS OF THIS SUBORDINATED NOTE WILL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH RESTRICTIONS SET FORTH
IN THE INDENTURE IDENTIFIED HEREIN.

 

THE SECURITY AND THE OBLIGATIONS OF THE
COMPANY AS EVIDENCED BY THIS SUBORDINATED NOTE (1) ARE NOT A DEPOSIT AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
OR ANY OTHER GOVERNMENT AGENCY OR FUND AND (2) ARE SUBORDINATE IN THE RIGHT OF PAYMENT TO ALL SENIOR INDEBTEDNESS (AS DEFINED IN
THE INDENTURE IDENTIFIED HEREIN).

 

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 PLANS, OR ANY OTHER PERSON OR ENTITY USING THE “PLAN ASSETS” OF ANY SUCH EMPLOYEE BENEFIT PLAN OR PLAN
TO FINANCE SUCH PURCHASE OR (ii) SUCH PURCHASE OR HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA
OR SECTION 4975 OF THE CODE FOR WHICH FULL EXEMPTIVE RELIEF IS NOT AVAILABLE UNDER APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

 

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

 

    	 	A-2-2	 

     

    

  

	No. 2029-[●]	 	ACCREDITED INVESTOR CUSIP: 597742 AG0 / US597742AG00

QIB CUSIP: 597742 AF2 / US597742AF27

[REGISTERED CUSIP: [●]/[●]]

 

MIDLAND STATES BANCORP, INC.

 

5.00% FIXED-TO-FLOATING RATE SUBORDINATED
NOTE DUE 2029

 

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

 

1.         Indenture;
Holder. This Subordinated Note is one of a duly authorized issue of notes of Midland States Bancorp, Inc., an Illinois corporation
(the “Company”), designated as the “5.00% Fixed-to-Floating Rate Subordinated Notes due 2029” (the “Subordinated
Notes”) in an aggregate principal amount of $72,750,000 and initially issued on September 20, 2019. The Company has issued
this Subordinated Note under that certain Indenture dated as of September 20, 2019, relating to the Subordinated Notes, as the
same may be amended or supplemented from time to time (“Indenture”), between the Company and UMB Bank National Association,
a national banking association, as Trustee (the “Trustee”). All capitalized terms not otherwise defined in this Subordinated
Note will have the meanings assigned to them in the Indenture. The terms of this Subordinated Note include those stated in the
Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the “Trust Indenture
Act”). This Subordinated Note is subject to all such terms, and the Holder (as defined below) is referred to the Indenture
and the Trust Indenture Act for a statement of such terms. To the extent any provision of this Subordinated Note irreconcilably
conflicts with the express provisions of the Indenture, the provisions of the Indenture will govern and be controlling.

 

2.          Payment.
The Company, for value received, promises to pay to Cede & Co., or its registered assigns (the “Holder”), as nominee
of The Depository Trust Company, the principal sum of [●] DOLLARS (U.S.) ($[●]), plus accrued but unpaid
interest on September 30, 2029 (“Stated Maturity”) and to pay interest thereon (i) from and including the original
issue date of the Subordinated Notes, or from the most recent date to which interest has been paid or duly provided for, to but
excluding September 30, 2024, at the rate of 5.00% per annum, computed on the basis of a 360-day year consisting of twelve 30-day
months and payable semi-annually in arrears on March 30 and September 30 of each year (each, a “Fixed Interest Payment Date”),
beginning March 30, 2020, and (ii) from and including September 30, 2024 to, but excluding the Stated Maturity or the early redemption
date contemplated by Section 5 of this Subordinated Note (the “Floating Rate Period”), at the rate per annum, reset
quarterly, equal to the Floating Interest Rate (as defined below) determined on the Floating Interest Determination Date (as defined
below) of the applicable interest period plus 361 basis points, computed on the basis of a 360-day year and the actual number of
days elapsed and payable quarterly in arrears on March 30, June 30, September 30 and December 30 (each quarterly period, a “Floating
Interest Period”) of each year (each payment date, a “Floating Interest Payment Date”). Dollar amounts resulting
from this calculation shall be rounded to the nearest cent, with one-half cent being rounded up. The term “Floating Interest
Determination Date” means the date upon which the Floating Interest Rate is determined by the Calculation Agent pursuant
to the Three-Month Term SOFR Conventions. The Company will pay all Additional Interest (as defined in the Indenture), if any, on
the dates and in the amounts set forth in the Registration Rights Agreement (as defined in the Indenture).

 

    	 	A-2-3	 

     

    

 

(a)          An “Interest
Payment Date” is either a Fixed Interest Payment Date or a Floating Interest Payment Date, as applicable.

 

(b)          The “Floating
Interest Rate” means:

 

		(i)	initially Three-Month Term SOFR (as defined below).

 

		(ii)	Notwithstanding the foregoing clause (i) of this Section 2(b):

 

		(1)	If the Calculation Agent determines prior to the relevant Floating Interest Determination Date that a Benchmark Transition
Event and its related Benchmark Replacement Date (each of such terms as defined below) have occurred with respect to Three-Month
Term SOFR, then the Company shall promptly provide notice of such determination to the Holder and Section 2(c) will thereafter
apply to all determinations, calculations and quotations made or obtained for the purposes of calculating the Floating Interest
Rate payable on the Subordinated Notes during a relevant Floating Interest Period.

 

		(2)	However, if the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have
occurred with respect to Three-Month Term SOFR, but for any reason the Benchmark Replacement has not been determined as of the
relevant Floating Interest Determination Date, the Floating Interest Rate for the applicable Floating Interest Period will be equal
to the Floating Interest Rate on the last Floating Interest Determination Date for the Subordinated Notes, as determined by the
Calculation Agent.

 

		(iii)	If the then-current Benchmark is Three-Month Term SOFR and any of the foregoing provisions concerning the calculation of the
interest rate and the payment of interest during the Floating Rate Period are inconsistent with any of the Three-Month Term SOFR
Conventions (as defined below) determined by the Calculation Agent, then the relevant Three-Month Term SOFR Conventions will apply.

 

(c)           Effect
of Benchmark Transition Event.

 

		(i)	If the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred
prior to the Reference Time (as defined below) in respect of any determination of the Benchmark (as defined below) on any date,
the Benchmark Replacement will replace the then-current Benchmark for all purposes relating to the Subordinated Notes during the
relevant Floating Interest Period in respect of such determination on such date and all determinations on all subsequent dates.

 

    	 	A-2-4	 

     

    

 

		(ii)	In connection with the implementation of a Benchmark Replacement, the Company will have the right to make Benchmark Replacement
Conforming Changes from time to time.

 

		(iii)	Any determination, decision or election that may be made by the Calculation Agent pursuant to the benchmark transition provisions
set forth herein, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence
of an event, circumstance or date, and any decision to take or refrain from taking any action or any selection:

 

		(1)	will be conclusive and binding absent manifest error;

 

		(2)	if made by the Company, will be made in the Company’s sole discretion; and

 

		(3)	notwithstanding anything to the contrary in this Subordinated Note or the Indenture, shall become effective without consent
from the Holder or any other party.

 

		(iv)	For the avoidance of doubt, after a Benchmark Transition Event and its related Benchmark Replacement Date have occurred, interest
payable on this Subordinated Note for the Floating Rate Period will be an annual rate equal to the sum of the applicable Benchmark
Replacement and the spread specified on the face hereof.

 

		(iv)	As used in this Subordinated Note:

 

		1.	“Benchmark” means, initially, Three-Month Term SOFR; provided that if a Benchmark Transition Event and its related
Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR or the then-current Benchmark, then “Benchmark”
means the applicable Benchmark Replacement.

 

		2.	“Benchmark Replacement” means the Interpolated Benchmark with respect to the then-current Benchmark, plus the Benchmark
Replacement Adjustment for such Benchmark; provided that if (a) the Calculation Agent cannot determine the Interpolated Benchmark
as of the Benchmark Replacement Date or (b) the then-current Benchmark is Three-Month Term SOFR and a Benchmark Transition Event
and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR (in which event no Interpolated
Benchmark with respect to Three-Month Term SOFR shall be determined), then “Benchmark Replacement” means the first
alternative set forth in the order below that can be determined by the Calculation Agent, as of the Benchmark Replacement Date:

 

    	 	A-2-5	 

     

    

 

 

		a.	Compounded SOFR;

 

		b.	the sum of: (i) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body
as the replacement for the then-current Benchmark for the applicable Corresponding Tenor and (ii) the Benchmark Replacement
Adjustment;

 

		c.	the sum of: (i) the ISDA Fallback Rate and (ii) the Benchmark Replacement Adjustment;

 

		d.	the sum of: (i) the alternate rate of interest that has been selected by the Company as the replacement for the then-current
Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of interest as a replacement
for the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (ii) the Benchmark Replacement
Adjustment.

 

		3.	“Benchmark Replacement Adjustment” means the first alternative set forth in the order below that can be determined
by the Calculation Agent, as of the Benchmark Replacement Date:

 

		a.	the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative
value or zero) that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark
Replacement;

 

		b.	if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment;

 

		c.	the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Calculation Agent giving
due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment,
for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated
floating rate notes at such time.

 

		4.	“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative
or operational changes (including changes to the definition of “Floating Interest Period,” timing and frequency of
determining rates with respect to each Floating Interest Period and making payments of interest, rounding of amounts or tenors
and other administrative matters) that the Company decides may be appropriate to reflect the adoption of such Benchmark Replacement
in a manner substantially consistent with market practice (or, if the Company decides that adoption of any portion of such market
practice is not administratively feasible or if the Calculation Agent determines that no market practice for use of the Benchmark
Replacement exists, in such other manner as the Calculation Agent determines is reasonably necessary).

 

    	 	A-2-6	 

     

    

 

 

		5.	“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current
Benchmark:

 

		a.	in the case of clause (a) of the definition of “Benchmark Transition Event,” the relevant Reference Time in respect
of any determination;

 

		b.	in the case of clause (b) or (c) of the definition of “Benchmark Transition Event,” the later of (i) the
date of the public statement or publication of information referenced therein and (ii) the date on which the administrator
of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

 

		c.	in the case of clause (d) of the definition of “Benchmark Transition Event,” the date of such public statement
or publication of information referenced therein.

 

For the avoidance of doubt,
if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect
of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for purposes of
such determination.

 

		6.	“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current
Benchmark:

 

		a.	if the Benchmark is Three-Month Term SOFR, (i) the Relevant Governmental Body has not selected or recommended a forward-looking
term rate for a tenor of three months based on SOFR, (ii) the development of a forward-looking term rate for a tenor of three months
based on SOFR that has been recommended or selected by the Relevant Governmental Body is not complete or (iii) the Calculation
Agent determines that the use of a forward-looking rate for a tenor of three months based on SOFR is not administratively feasible;

 

		b.	a public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such
administrator has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such
statement or publication, there is no successor administrator that will continue to provide the Benchmark;

 

    	 	A-2-7	 

     

    

 

		c.	a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central
bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution
authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution
authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease
to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no
successor administrator that will continue to provide the Benchmark; or

 

		d.	a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing
that the Benchmark is no longer representative.

 

		7.	“Calculation Agent” means such bank or other entity (which may be the Company or one of its Affiliates) as may
be appointed by the Company, in writing, to act as Calculation Agent for the Subordinated Notes during the Floating Rate Period,
and who has accepted such appointment in writing.

 

		8.	“Compounded SOFR” means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate,
or methodology for this rate, and conventions for this rate (which will be compounded in arrears with a lookback and/or suspension
period as a mechanism to determine the interest amount payable prior to the end of each Floating Interest Period) being established
by the Company in accordance with:

 

		a.	the rate, or methodology for this rate, and conventions for this rate selected or recommended by the Relevant Governmental
Body for determining compounded SOFR; provided that:

 

		b.	if, and to the extent that, the Calculation Agent determines that Compounded SOFR cannot be determined in accordance with clause
(a) above, then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Company
or its designee giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating rate notes
at such time.

 

    	 	A-2-8	 

     

    

 

For the avoidance of doubt,
the calculation of Compounded SOFR will exclude the Benchmark Replacement Adjustment.

 

		9.	“Corresponding Tenor” with respect to a Benchmark Replacement means a tenor (including overnight) having approximately
the same length (disregarding Business Day adjustment) as the applicable tenor for the then-current Benchmark.

 

		10.	“FRBNY” means the Federal Reserve Bank of New York.

 

		11.	“FRBNY’s Website” means the website of the FRBNY at http://www.newyorkfed.org or any successor source.

 

		12.	“Interpolated Benchmark” with respect to the Benchmark means the rate determined for the Corresponding Tenor by
interpolating on a linear basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that
is shorter than the Corresponding Tenor and (2) the Benchmark for the shortest period (for which the Benchmark is available)
that is longer than the Corresponding Tenor.

 

		13.	“ISDA” means the International Swaps and Derivatives Association, Inc. or any successor thereto.

 

		14.	“ISDA Definitions” means the 2006 ISDA Definitions published by the ISDA or any successor thereto, as amended or
supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time.

 

		15.	“ISDA Fallback Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that
would apply for derivatives transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation
event with respect to the Benchmark for the applicable tenor.

 

		16.	“ISDA Fallback Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions
to be effective upon the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding
the applicable ISDA Fallback Adjustment.

 

		17.	“Reference Time” with respect to any determination of a Benchmark means (1) if the Benchmark is Three-Month Term
SOFR, the time determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, and (2) if the
Benchmark is not Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Benchmark Replacement
Conforming Changes.

 

    	 	A-2-9	 

     

    

 

		18.	“Relevant Governmental Body” means the Federal Reserve Board and/or the FRBNY, or a committee officially endorsed
or convened by the Federal Reserve Board and/or the FRBNY or any successor thereto.

 

		19.	“SOFR” means the daily Secured Overnight Financing Rate provided by the FRBNY, as the administrator of the benchmark
(or a successor administrator), on the FRBNY’s Website.

 

		20.	“Term SOFR” means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant
Governmental Body.

 

		21.	“Term SOFR Administrator” means any entity designated by the Relevant Governmental Body as the administrator of
Term SOFR (or a successor administrator).

 

		22.	“Three-Month Term SOFR” means the greater of (i) the rate for Term SOFR for a tenor of three months that is published
by the Term SOFR Administrator at the Reference Time for any Floating Interest Period, as determined by the Calculation Agent after
giving effect to the Three-Month Term SOFR Conventions; and (ii) zero percent (0.00%).

 

		23.	“Three-Month Term SOFR Conventions” means any determination, decision or election by the Calculation Agent with
respect to any technical, administrative or operational matter (including with respect to the manner and timing of the publication
of Three-Month Term SOFR, or changes to the definition of “Floating Interest Period”, timing and frequency of determining
Three-Month Term SOFR with respect to each Floating Interest Period and making payments of interest, rounding of amounts or tenors,
and other administrative matters) that the Calculation Agent decides may be appropriate to reflect the use of Three-Month Term
SOFR as the Benchmark in a manner substantially consistent with market practice (or, if the Company decides that adoption of any
portion of such market practice is not administratively feasible or if the Calculation Agent determines that no market practice
for the use of Three-Month Term SOFR exists, in such other manner as the Calculation Agent determines is reasonably necessary).

 

		24.	“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

(d)       In
the event that any Fixed Interest Payment Date during the Fixed Rate Period falls on a day that is not a Business Day (as defined
below), the dividend payment due on that date shall be postponed to the next day that is a Business Day and no additional dividends
shall accrue as a result of that postponement. In the event that any Floating Interest Payment Date during the Floating Rate Period
falls on a day that is not a Business Day (as defined below), the dividend payment due on that date shall be postponed to the next
day that is a Business Day and dividends shall accrue to but excluding the date dividends are paid. However, if the postponement
would cause the day to fall in the next calendar month during the Floating Interest Period, the Floating Interest Payment Date
shall instead be brought forward to the immediately preceding Business Day. The term “Business Day” means any day other
than a Saturday or Sunday or any other day on which banking institutions in the State of Illinois or State of New York are generally
authorized or required by law or executive order to be closed.

 

    	 	A-2-10	 

     

    

  

The Company will pay
interest on this Subordinated Note to the Person who is the registered Holder at the close of business on the fifteenth calendar
day prior to the applicable Interest Payment Date, except as provided in Section 2.10 of the Indenture with respect to Defaulted
Interest. This Subordinated Note will be payable as to principal and interest at the office or agency of the Paying Agent, or,
at the option of the Company, payment of interest may be made by check delivered to the Holder at its address set forth in the
Subordinated Note Register or by wire transfer to an account appropriately designated by the Person entitled to payment; provided,
that the Paying Agent will have received written notice of such account designation at least five Business Days prior to the
date of such payment (subject to surrender of this Subordinated Note in the case of a payment of interest at Maturity).

 

3.          Paying
Agent and Registrar. The Trustee will act as the initial Paying Agent and Registrar through its offices presently located at
[●]. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company or any of its
Subsidiaries may act in any such capacity.

 

4.          Subordination.
The indebtedness of the Company evidenced by this Subordinated Note, including the principal thereof and interest thereon, is,
to the extent and in the manner set forth in the Indenture, subordinate and junior in right of payment to obligations of the Company
constituting the Senior Indebtedness (as defined in the Indenture) on the terms and subject to the terms and conditions as provided
and set forth in Article XI of the Indenture and will rank pari passu in right of payment with all other Subordinated Notes.
Holder, by the acceptance of this Subordinated Note, agrees to and will be bound by such provisions of the Indenture and authorizes
and directs the Trustee on his behalf to take such actions as may be necessary or appropriate to effectuate the subordination so
provided.

 

5.          Redemption.

 

(a)          The
Company may, at its option, on any Interest Payment Date on or after September 30, 2024, redeem this Subordinated Note, in whole
or in part, without premium or penalty, but in all cases in a principal amount with integral multiples of $1,000. In addition,
the Company may redeem all, but not a portion of the Subordinated Notes, at any time upon the occurrence of a Tier 2 Capital Event,
Tax Event or an Investment Company Event. Any redemption of this Subordinated Note shall be subject to the prior approval of the
Board of Governors of the Federal Reserve System (or its designee) or any successor agency, and any other bank regulatory agency,
to the extent such approval shall then be required by law, regulation or policy. This Subordinated Note is not subject to redemption
at the option of the Holder. The Redemption Price with respect to any redemption permitted under this Indenture will be equal to
100% of the principal amount of this Subordinated Note, or portion thereof, to be redeemed, plus accrued but unpaid interest and
Additional Interest, if any, thereon to, but excluding, the Redemption Date.

 

    	 	A-2-11	 

     

    

 

(b)          If
less than the then outstanding principal amount of this Subordinated Note is redeemed, (i) a new 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 Holder. For purposes of clarity, upon a partial redemption, a like percentage of the principal amount of every Subordinated
Note held by every Holder shall be redeemed.

 

(c)          Effectiveness
of Redemption. If notice of redemption has been duly given and notwithstanding that any Subordinated Notes so called for redemption
have not been surrendered for cancellation, on and after the Redemption Date interest shall cease to accrue on all Subordinated
Notes so called for redemption, all Subordinated Notes so called for redemption shall no longer be deemed outstanding and all rights
with respect to such Subordinated Notes shall forthwith on such Redemption Date cease and terminate (unless the Company shall default
in the payment of the redemption price), except only the right of the Holder thereof to receive the amount payable on such redemption,
without interest.

 

6.          Events
of Default; Acceleration. An “Event of Default” means any one of the events described in Section 4.01 of the Indenture.
If an Event of Default described in Section 4.01(1) or Section 4.01(2) of the Indenture occurs, then the principal amount of all
of the Outstanding Subordinated Notes, and accrued and unpaid interest, if any, on all Outstanding Subordinated Notes will become
and be immediately due and payable without any declaration or other act on the part of the Trustee or the Holder, and the Company
waives demand, presentment for payment, notice of nonpayment, notice of protest, and all other notices. Notwithstanding the foregoing,
because the Company will treat the Subordinated Notes as Tier 2 Capital, upon the occurrence of an Event of Default other than
an Event of Default described in Section 4.01(1) or Section 4.01(2) of the Indenture, neither the Trustee nor the Holder may accelerate
the Maturity of the Subordinated Notes and make the principal of, and any accrued and unpaid interest on, the Subordinated Notes,
immediately due and payable. If any Event of Default occurs and is continuing, the Trustee may also pursue any other available
remedy to collect the payment of principal of, and interest on, the Subordinated Notes then due and payable or to enforce the performance
of any provision of the Subordinated Notes or the Indenture.

 

7.          Failure
to Make Payments. If the Company fails to make any payment of interest on this Subordinated Note when such interest becomes
due and payable and such default continues for a period of 30 days, or if the Company fails to make any payment of the principal
of this Subordinated Note when such principal becomes due and payable, the Company will, upon demand of the Trustee, pay to the
Trustee, for the benefit of the Holder, the whole amount then due and payable with respect to this Subordinated Note, with interest
upon the overdue principal, any premium and, to the extent permitted by applicable law, upon any overdue installments of interest
at the rate or respective rates, as the case may be, provided for or with respect to this Subordinated Note or, if no such rate
or rates are so provided, at the rate or respective rates, as the case may be, of interest borne by this Subordinated Note.

 

    	 	A-2-12	 

     

    

 

Upon an Event of Default,
the Company may not declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Company’s capital stock, make any payment of principal or interest or premium, if any, on or
repay, repurchase or redeem any debt securities of the Company that rank equal with or junior to this Subordinated Note, or make
any payments under any guarantee that ranks equal with or junior to this Subordinated Note, 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 in accordance with 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.

 

8.          Denominations,
Transfer, Exchange. The Subordinated Notes are issuable only in registered form without interest coupons in minimum denominations
of $1,000 and integral multiples of $1,000 in excess thereof. The transfer of this Subordinated Note may be registered and this
Subordinated Note may be exchanged as provided in the Indenture. The Registrar may require the Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require the Holder to pay any taxes and fees required by law
or permitted by the Indenture.

 

9.          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 the 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 Holder requesting such
transfer or exchange.

 

10.         Persons
Deemed Owners. The Company and the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Subordinated Note is registered as the owner hereof for all purposes, whether or not this Subordinated Note is overdue, and neither
the Company, the Trustee nor any such agent will be affected by notice to the contrary.

 

11.         Amendments;
Waivers. The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the rights of the Holders of the Subordinated Notes at any time by the Company and
the Trustee with the consent of the holders of a majority in principal amount of the then Outstanding Subordinated Notes. The Indenture
also contains provisions permitting the holders of specified percentages in principal amount of the then Outstanding Subordinated
Notes, on behalf of the holders of all Subordinated Notes, to waive certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Subordinated Note will 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
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Subordinated Note.

 

    	 	A-2-13	 

     

    

 

12.         No
Impairment. No reference herein to the Indenture and no provision of this Subordinated Note or of the Indenture will alter
or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest (if any) and
Additional Interest on this Subordinated Note at the times, place and rate as herein prescribed.

 

13.         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 the Company or any Subsidiary.

 

14.         No
Recourse Against Others. No recourse under or upon any obligation, covenant or agreement contained in the Indenture or 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 the Company or of any predecessor or successor, either directly or through
the Company or any predecessor or successor, under any rule 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 and as part of the consideration for the issuance of this Subordinated Note.

 

15.         Authentication.
This Subordinated Note will not be valid until authenticated by the manual signature of the Trustee or an Authenticating Agent.

 

16.         Abbreviations.
Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= custodian),
and U/G/M/A (= Uniform Gifts to Minors Act). Additional abbreviations may also be used though not in the above list.

 

17.         Available
Information. The Company will furnish to the Holder upon written request and without charge a copy of the Indenture. Requests
by the Holder to the Company may be made to: Midland States Bancorp, Inc., 1201 Network Centre Drive, Effingham, Illinois 62401,
Attention: Douglas J. Tucker, Corporate Counsel.

 

18.         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 ANY LAWS OR PRINCIPLES OF CONFLICT
OF LAWS THAT WOULD APPLY THE LAWS OF A DIFFERENT JURISDICTION.

  

[Signature page follows]

 

    	 	A-2-14	 

     

    

 

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

 

	 	MIDLAND STATES BANCORP, INC.
	 	 	 	 
	 	 	 	 
	 	By:	 
	 	 	Name:	 Jeffrey G. Ludwig
	 	 	Title:	 Chief Executive Officer and President

 

[Signature page to Subordinated
Note]

 

    	 	 	 

     

    

  

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the
Subordinated Notes of Midland States Bancorp, Inc., referred to in the within-mentioned Indenture:

 

UMB BANK NATIONAL ASSOCIATION,

a national banking association, as Trustee

 

	By:		 
	Name: 	 	 
	Title:	 	 
	Dated: 	 	 

 

[Signature page to Certificate of Authentication] 

  

    	 	 	 

     

    

 

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 the 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 Exchange Act Rule 17Ad-15).

 

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

 

    	 	A-2-17	 

     

    

 

 ̈     (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 of 1933, as amended.

 

Unless one of the boxes is checked, the
Paying Agent 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, the Paying Agent may require, prior to registering any such transfer
of this Subordinated Note, in its sole discretion, such legal opinions, certifications and other information as the Paying Agent
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-15).

 

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

 

The undersigned represents
and warrants that it is purchasing this Subordinated Note for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning
of Rule 144A under the Securities Act of 1933, as amended, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the 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:	 

 

    	 	A-2-18	 

     

    

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL
SUBORDINATED NOTE

 

The following
increases or decreases in this Global Subordinated Note have been made:

 

	
        Date of

        Exchange
	 	
        Amount of

        decrease in

        principal  amount

        of this Global

 Subordinated

        Note
	 	
        Amount of

        increase in

        principal amount

        of this Global

        Subordinated Note
	 	
        Principal amount

        of this Global

        Subordinated Note

 following

        such decrease or

        increase
	 	
        Signature of

        authorized officer

        of Trustee or

        Notes Custodian

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

    	 	A-2-19

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