Document:

Exhibit 4.2

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

 

and

 

U.S. BANK NATIONAL ASSOCIATION

 

as Trustee, Paying Agent and Registrar

 

FIRST SUPPLEMENTAL INDENTURE

 

Dated as of June 15, 2016

 

to

 

INDENTURE

 

Dated as of June 15, 2016

 

6.00% Fixed-to-Floating Subordinated
Notes due June 30, 2026

 

FIRST SUPPLEMENTAL INDENTURE (this “First
Supplemental Indenture”), dated as of June 15, 2016, between PEAPACK-GLADSTONE FINANCIAL CORPORATION, a New Jersey corporation
(the “Company”), and U.S. BANK NATIONAL ASSOCIATION as trustee (the “Trustee”), Registrar
and Paying Agent.

 

RECITALS

 

WHEREAS, the Company
and the Trustee have heretofore executed and delivered the Indenture, dated as of June 15, 2016 (the “Base Indenture”
and, as hereby supplemented and amended, the “Indenture”), providing for the establishment from time to time
of series of the Company’s unsecured debt securities, which may be notes, bonds, debentures or other evidences of indebtedness
(hereinafter called the “Securities”) and the issuance from time to time of Securities under the Indenture;
and

 

WHEREAS, Section 9.01(4)
of the Base Indenture provides that the Company and the Trustee may enter into a supplemental indenture to the Base Indenture
to establish the form and terms of Securities of a series thereunder as permitted by Section 2.01 and 3.01 of the Base Indenture;
and

 

WHEREAS, pursuant
to Section 3.01 of the Base Indenture, the Company desires to establish a new series of Securities under the Indenture to be known
as its “6.00% Fixed-to-Floating Subordinated Notes due June 30, 2026” (the “Notes”), to establish
the form and terms and conditions of the Notes, as provided in this First Supplemental Indenture, and to provide for the initial
issuance of Notes in the aggregate principal amount of $50,000,000; and

 

WHEREAS, the Company
has requested that the Trustee execute and deliver this First Supplemental Indenture; and all requirements necessary to make (i)
this First Supplemental Indenture a valid, binding and enforceable instrument in accordance with its terms, and (ii) the Notes,
when executed by the Company and authenticated and delivered by the Trustee in accordance with the Indenture, the valid, binding
and enforceable obligations of the Company, have been satisfied; and the execution and delivery of this First Supplemental Indenture
has been duly authorized in all respects.

 

NOW, THEREFORE, in
consideration of the covenants and agreements set forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

    	 	1	 

     

    

 

ARTICLE 1

DEFINITIONS

 

Section 1.1. Relation
to Base Indenture. This First Supplemental Indenture constitutes an integral part of the Base Indenture.

 

Section 1.2. Definition
of Terms. For all purposes of this First Supplemental Indenture:

 

(a) Capitalized terms
used herein without definition shall have the meanings set forth in the Base Indenture, provided that, if the definition
of a capitalized term defined in this First Supplemental Indenture conflicts with the definition of that capitalized term in the
Base Indenture, the definition of that capitalized term in this First Supplemental Indenture shall control for purposes of this
First Supplemental Indenture and the Notes and (in respect of the Notes but not any other series of Securities) the Base Indenture;

 

(b) a term defined
anywhere in this First Supplemental Indenture has the same meaning throughout;

 

(c) the singular includes
the plural and vice versa;

 

(d) headings are for
convenience of reference only and do not affect interpretation;

 

(e) unless otherwise
specified or unless the context requires otherwise, (i) all references in this First Supplemental Indenture to Sections refer
to the corresponding Sections of this First Supplemental Indenture, and (ii) the terms “herein,” “hereof,”
“hereunder” and any other word of similar import refer to this First Supplemental Indenture; and

 

(f) for purposes of
this First Supplemental Indenture and the Notes, the following terms have the meanings given to them in this Section 1.2(f):

 

“1940 Act
Event” means an event requiring the Company to register as an investment company pursuant to the Investment Company
Act of 1940, as amended.

 

“Business
Day” means any day other than a Saturday, Sunday or other day on which banking institutions in the City of New York
are authorized or obligated by law, regulation or executive order to close; provided that such term shall mean, when used with
respect to any payment of principal of, or premium or interest, if any, on, or Additional Amounts with respect to, the Notes to
be made at any Place of Payment for the Notes any day other than a Saturday, Sunday or other day on which banking institutions
in such Place of Payment are authorized or obligated by law, regulation or executive order to close.

 

“DTC”
has the meaning set forth in Section 2.3 hereof.

 

“Designated
LIBOR Page” means the display on Reuters or any successor service, on page LIBOR01 or on any other page as may replace
that page on the service, for the purpose of displaying the London interbank rates of U.S. dollars.

 

“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 Rate
Interest Payment Date” has the meaning set forth in Section 2.5(b)(i) hereof.

 

“Fixed Rate
Interest Record Date” means, with respect to each Fixed Rate Interest Payment Date, the close of business on the June
15 or December 15 (whether or not a Business Day) immediately preceding such Fixed Rate Interest Payment Date, through June 30,
2021.

 

“Fixed Rate
Period” has the meaning set forth in Section 2.5(b)(i) hereof.

 

“Floating
Rate Interest Payment Date” has the meaning set forth in Section 2.5(b)(ii) hereof.

 

“Floating
Rate Interest Record Date” means, with respect to each Floating Rate Interest Payment Date, the close of business on
the March 15, June 15, September 15 and December 15 (whether or not a Business Day) immediately preceding such Floating Rate Interest
Payment Date.

 

“Floating
Rate Period” has the meaning set forth in Section 2.5(b)(ii) hereof.

 

“Global Note”
has the meaning set forth in Section 2.4 hereof.

 

    	 	2	 

     

    

 

“Independent
Bank Regulatory Counsel” means a law firm, a member of a law firm or an independent practitioner that is experienced
in matters of federal bank holding company and banking regulatory law, including the laws, rules and the guidelines of the Federal
Reserve Board relating to regulatory capital, and shall include any Person who, under the standards of professional conduct then
prevailing and applicable to such counsel, would not have a conflict of interest in representing the Company or the Trustee in
connection with providing the legal opinion contemplated by the definition of the term “Tier 2 Capital Event.”

 

“Independent
Tax Counsel” means a law firm, a member of a law firm or an independent practitioner that is experienced in matters
of federal income taxation law, including the deductibility of interest payments made with respect to corporate debt instruments,
and shall include any Person who, under the standards of professional conduct then prevailing and applicable to such counsel,
would not have a conflict of interest in representing the Company or the Trustee in connection with providing the legal opinion
contemplated by the definition of the term “Tax Event.”

 

“Interest
Payment Date” has the meaning set forth in Section 2.5(b)(ii) hereof.

 

“London Banking
Day” means any date on which commercial banks are open for business (including dealings in U.S. dollars) in London,
England.

 

“Representative”
means the indenture trustee or other trustee, agent or representative for an issue of Senior Indebtedness.

 

“Senior
Indebtedness” means: 

 

		(i)	any of the Company’s indebtedness for borrowed or purchased
                                         money, whether or not evidenced by bonds, debentures, notes, or other written instruments,
                                         including any obligations of the Company to general creditors or trade creditors;

 

		(ii)	the Company’s obligations under letters of credit;

 

		(iii)	any of the Company’s indebtedness or other obligations
                                         with respect to commodity contracts, interest rate and currency swap agreements, cap,
                                         floor, and collar agreements, currency spot and forward contracts, and other similar
                                         agreements or arrangements designed to protect against fluctuations in currency exchange
                                         or interest rates; and

 

		(iv)	any guarantees, endorsements (other than by endorsement of negotiable
                                         instruments for collection in the ordinary course of business), or other similar contingent
                                         obligations in respect of obligations of others of a type described in clauses (i), (ii),
                                         and (iii), whether or not such obligation is classified as a liability on a balance sheet
                                         prepared in accordance with accounting principles generally accepted in the United States;

 

in each case whether outstanding on the date of execution of
the Indenture or incurred later, other than obligations ranking on a parity with the Notes or ranking junior to the Notes. Notwithstanding
the foregoing, if the Board of Governors of the Federal Reserve Board (or other competent regulatory agency or authority) promulgates
any rule or issues any interpretation that defines general creditor(s), the main purpose of which is to establish a criteria for
determining whether the subordinated debt of a bank holding company is to be included in its capital, then the term “general
creditors” as used herein the definition of Senior Indebtedness will have the meaning as described in that rule or interpretation.

 

“Stated Maturity
Date” has the meaning set forth in Section 2.2 hereof.

 

“Tax Event”
means the receipt by the Company of an opinion of Independent Tax Counsel to the effect that an amendment to, or change (including
any announced prospective change) in, the laws or any regulations of the United States or any political subdivision or taxing
authority, or as a result of any official administrative pronouncement or judicial decision interpreting or applying such laws
or regulations, which change or amendment becomes effective or which pronouncement or decision is announced on or after the date
of the issuance of the Notes, resulting in more than an insubstantial risk that the interest payable on the Notes is not, or within
90 days of receipt of such opinion of Independent Tax Counsel, will not be, deductible by the Company, in whole or in part, for
United States federal income tax purposes.

 

    	 	3	 

     

    

 

“Three-month LIBOR”
means, as determined by the Company on the second London Banking Day immediately preceding the commencement of the applicable
floating rate period (the “determination date”) and provided to the trustee in writing, the offered rate for deposits
in U.S. dollars having a maturity of three months that appears on the Designated LIBOR Page as of 11:00 a.m., London time, on
such determination date. If such rate does not appear on the Designated LIBOR Page at such time, then the Company will request
the principal London office of each of four major reference banks in the London interbank market, selected by the Company, to
provide such bank’s offered quotation to prime banks in the London interbank market for deposits in U.S. dollars with a
term of three months as of 11:00 a.m., London time, on such determination date and in a principal amount equal to an amount that,
in the judgment of the Company, is representative for a single transaction in U.S. dollars in the relevant market at the relevant
time (a “representative amount”). If at least two such quotations are so provided, Three-month LIBOR for such floating
rate period will be the arithmetic mean of such quotations. If fewer than two such quotations are provided, the Company will request
each of three major banks in the City of New York to provide such bank’s rate for loans in U.S. dollars to leading European
banks with a term of three months as of approximately 11:00 a.m., the City of New York time, on such determination date and in
a representative amount. If at least two such rates are so provided, Three-month LIBOR for such floating rate period will be the
arithmetic mean of such quotations. If fewer than two such rates are so provided, then Three-month LIBOR for such floating rate
period will be set to equal the Three-month LIBOR for the then current floating rate period or, in the case of the first floating
rate period, 1.15%.

 

“Tier 2 Capital
Event” shall mean the receipt by the Company of an opinion of Independent Bank Regulatory Counsel to the effect that,
as a result of:

 

(a) any amendment to,
or change (including any announced prospective change) in, the laws or any regulations thereunder of the United States or any
rules, guidelines or policies of an applicable regulatory authority for the Company; or

 

(b) any official administrative
pronouncement or judicial decision interpreting or applying such laws or regulations,

 

which amendment or change is effective
or which pronouncement or decision is announced on or after the issue date of the Notes, the Notes do not constitute, or within
90 days of the date of such opinion will not constitute, Tier 2 capital (or its then- equivalent if the Company were subject to
such capital requirement) for purposes of capital adequacy guidelines of the Board of Governors of the Federal Reserve (or any
successor regulatory authority with jurisdiction over bank holding companies), as then in effect and applicable to the Company.

 

The terms “Company,”
“Trustee,” “Base Indenture,” “First Supplemental Indenture,” “Indenture,”
“Securities” and “Notes” shall have the respective meanings set forth in the recitals to
this First Supplemental Indenture and the paragraph preceding such recitals.

 

ARTICLE 2

ESTABLISHMENT OF THE NOTES AND

GENERAL TERMS AND CONDITIONS OF THE NOTES

 

Section 2.1. Establishment
of the Series of the Notes and Designation. There is hereby authorized and established a series of Securities designated as
the “6.00% Fixed-to-Floating Subordinated Notes due June 30, 2026.” The Securities that are a part of such series
shall be in the form and have the terms, provisions and conditions as set forth in the Base Indenture, this First Supplemental
Indenture and the Notes in the form attached hereto as Exhibit A.

 

Section 2.2. Payment
of Principal; Issue Price. Except as earlier redeemed in accordance with this First Supplemental Indenture, the date upon
which the entire principal amount of the Notes shall become due and payable, together with any accrued and unpaid interest then
owing, shall be June 30, 2026 (the “Stated Maturity Date”). The Notes issued on the date hereof will be issued
at a price equal to 100% of the principal amount thereof.

 

Section 2.3. Form,
Payment and Appointment. Except as provided in Section 3.05 of the Base Indenture, the Notes will be issued only in
book-entry form, will be represented by one or more Global Notes registered in the name of or held by The Depository Trust Company
or any successor thereto (“DTC”) or its nominee as the Depositary therefor. So long as DTC or its nominee is
the registered owner of Global Notes, DTC or its nominee, as the case may be, will be considered the Holder of the Notes represented
by such Global Notes for all purposes under the Indenture. The Company will make payments of principal of, and premium, if any,
and interest on the Global Notes to DTC or its nominee, as the case may be, as the registered Holder of the Notes.

 

    	 	4	 

     

    

 

The terms and conditions
contained in the Notes shall constitute, and are hereby expressly made, a part of the Indenture, and the Company and the Trustee,
by their execution and delivery of this First Supplemental Indenture, expressly agree to such terms and conditions and to be bound
thereby.

 

The Registrar and
Paying Agent for the Notes shall initially be the Trustee.

 

The Place of Payment
for the Notes shall be an office or agency of the Company maintained for such purpose, which shall initially be the Corporate
Trust Office of the Trustee located at 21 South Street, 3rd Floor, Morristown, New Jersey 07960.

 

The Notes will be
issuable and may be transferred only in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The amounts
payable with respect to the Notes shall be payable in U.S. Dollars.

 

Section 2.4. Global
Note. The Notes shall be issued initially in the form of one or more fully registered global Securities, substantially
in the form set forth in Exhibit A attached hereto (each such global Security, a “Global Note”) registered
in the name of DTC or its nominee and deposited with DTC or its designated custodian or such other Depositary as any officer of
the Company may from time to time designate. Unless and until a Global Note is exchanged for Notes in certificated form, such
Global Note may be transferred, in whole but not in part, and any payments on the Notes shall be made, only to DTC or a nominee
of DTC, or to a successor Depositary selected or approved by the Company or to a nominee of such successor Depositary as provided
in the Indenture.

 

Section 2.5. Interest.

 

(a) Interest payable
on any Interest Payment Date, the Stated Maturity Date or the Redemption Date, if any, with respect to the Notes shall be the
amount of interest accrued from, and including, the immediately preceding Interest Payment Date in respect of which interest has
been paid or duly provided for (or from and including the date of initial issuance of the Notes if no interest has previously
been paid or duly provided for with respect to the Notes) to, but excluding, such Interest Payment Date, Stated Maturity Date
or the Redemption Date, if any, as the case may be.

 

(b) (i)
From, and including, the date of initial issuance of the Notes to, but excluding, June 30, 2021, unless redeemed prior to such
date pursuant to Article 4 hereof, the Notes will bear interest at the annual rate of 6.00%, computed on the basis of a 360-day
year consisting of twelve 30-day months, and payable semi-annually in arrears on each June 30 and December 30, commencing on December
30, 2016 and ending on June 30, 2021 (each such payment date, a “Fixed Rate Interest Payment Date,” with the
period from, and including, the date of initial issuance of the Notes to, but excluding, the first Fixed Rate Interest Payment
Date and each successive period from, and including, a Fixed Rate Interest Payment Date to, but excluding, the next Fixed Rate
Interest Payment Date being a “Fixed Rate Period”). In the event that any scheduled Fixed Rate Interest Payment
Date for the Notes falls on a day that is not a Business Day, then payment of interest payable on such Fixed Rate Interest Payment
Date will be postponed to the next succeeding day that is a Business Day (and no interest shall accrue on the amount payable for
the period from and after such scheduled Fixed Rate Interest Payment Date to the next succeeding Business Day). The interest payable
on any Fixed Rate Interest Payment Date will be paid to each Holder in whose name a Note is registered at the close of business
on the June 15 and December 15 (whether or not a Business Day) immediately preceding such Fixed Rate Interest Payment Date.

 

(ii) From,
and including June 30, 2021 to, but excluding, the Stated Maturity Date, unless redeemed subsequent to June 30, 2021 but prior
to the Stated Maturity Date pursuant to Article 4 hereof, the Notes will bear interest at an annual rate equal to Three-month
LIBOR, reset quarterly, plus 485 basis points (4.85%), payable quarterly in arrears on each March 30, June 30, September 30 and
December 30, beginning on September 30, 2021 (each such payment date, a “Floating Rate Interest Payment Date,”
and, together with the Fixed Rate Interest Payment Dates, collectively the “Interest Payment Dates,” with the
period from, and including, June 30, 2021 to, but excluding, the first Floating Rate Interest Payment Date and each successive
period from, and including, a Floating Rate Interest Payment Date to, but excluding, the next Floating Rate Interest Payment Date
being a “Floating Rate Period”). The interest payable on any floating rate interest payment date will be paid
to the holder in whose name a note is registered at the close of business on the March 15, June 15, September 15 and December
15 (whether or not a business day) immediately preceding such floating rate interest payment date. Interest payable on the Notes
for a Floating Rate Period shall be computed on the basis of a 360-day year and the actual number of days in such Floating Rate
Period. All percentages used in or resulting from any calculation of Three-month LIBOR shall be rounded, if necessary, to the
nearest one hundred-thousandth of a percentage point, with 0.000005% rounded up to 0.00001%. The Company shall notify the Trustee
in writing of the interest rate for each Floating Rate Period on the applicable determination date. In the event that any scheduled
Floating Rate Interest Payment Date for the Notes falls on a day that is not a Business Day, then payment of interest payable
on such Floating Rate Interest Payment Date will be postponed to the next succeeding day that is a Business Day, unless such day
falls in the next succeeding calendar month, in which case such Floating Rate Interest Payment Date will be accelerated to the
immediately preceding day that is a Business Day, and, in each such case, the amounts payable on such Business Day will include
interest accrued to, but excluding, such Business Day.

    	 	5	 

     

    

 

(c) Interest due on
the Stated Maturity Date (whether or not an Interest Payment Date) of the Notes will be paid to the Person to whom principal of
the Notes is payable.

 

Section 2.6. Subordination.
The Company, for itself, its successors and assigns, covenants and agrees, and each Holder of Notes by the Holder’s acceptance
thereof, likewise covenants and agrees, that the payment of the principal of, premium, if any, and interest on each and all of
the Notes is and will be expressly subordinated and subject in right of payment to the prior payment in full of all Senior Indebtedness,
to the extent and in the manner described in Article 3 hereof.

 

Section 2.7. Events
of Default; Acceleration. 

 

(i)
Neither the Trustee nor the Holders of the Notes shall have the right to accelerate the maturity of the Notes unless there
is an Event of Default specified under clause (5) or (6) of Section 5.01 of the Base Indenture. If an Event of Default specified
in clause (5) or (6) of Section 5.01 of the Base Indenture occurs, then the principal amount of all of the Outstanding Notes,
including any accrued and unpaid interest on the Notes and premium, if any, shall become and be immediately due and payable without
any declaration or other act on the part of the Trustee or the Holders of the Notes in accordance with the provisions of Section
5.02 of the Base Indenture.

 

(ii) In the case
of an Event of Default other than an Event of Default specified under clause (5) or (6) of Section 5.01 of the Base Indenture,
the Trustee may seek to enforce its rights and the rights of the holders of Notes pursuant to Section 5.03 of the Base Indenture.

 

Section 2.8. No
Sinking Fund. The Notes are not entitled to the benefit of any sinking fund.

 

Section 2.9. No
Conversion or Exchange Rights. The Notes shall not be convertible into or exchangeable for any other securities
or property of the Company or any Subsidiary of the Company.

 

Section 2.10. No
Defeasance or Covenant Defeasance. Section 4.02 of the Base Indenture shall not be applicable to the Notes.

 

ARTICLE 3

SUBORDINATION OF THE NOTES

 

Section 3.1. Agreement to Subordinate.
Except as otherwise specified, the Company agrees, and each Holder by accepting a Security agrees, that the indebtedness evidenced
by the Notes is subordinated in right of payment, to the extent and in the manner provided in this Article 3, to the prior payment
in full of all Senior Indebtedness and that the subordination is for the benefit of the holders of Senior Indebtedness.

 

Section 3.2. Liquidation; Dissolution;
Bankruptcy. In the event of (a) any insolvency or bankruptcy case or proceeding, or any receivership, liquidation, reorganization
or other similar case or proceeding in connection therewith, relative to the Company or to its creditors, as such, or to its assets,
or (b) any liquidation, dissolution or other winding up of the Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any assignment for the benefit of creditors or any other marshalling of assets and liabilities
of the Company:

 

		(1)	holders of Senior Indebtedness shall be entitled to receive
                                         payment in full in cash of the principal thereof, premium, if any, Additional Amounts,
                                         if any, and interest (including interest accruing after the commencement of any such
                                         proceeding) to the date of payment on the Senior Indebtedness before Holders shall be
                                         entitled to receive any payment of principal of or interest on Notes;

 

		(2)	until the Senior Indebtedness is paid in full in cash, any
                                         Indebtedness to which Holders or the Trustee would be entitled but for this Article 3
                                         shall be made to holders of Senior Indebtedness as their interests may appear for the
                                         application to the payment thereof, except that Holders may receive securities that are
                                         subordinated to Senior Indebtedness to at least the same extent as the Notes; and

    	 	6	 

     

    

 

		(3)	the Trustee is entitled to conclusively rely upon an order
                                         or decree of a court of competent jurisdiction or a certificate of a bankruptcy trustee
                                         or other similar official for the purpose of ascertaining the persons entitled to participate
                                         in such distribution, the holders of Senior Indebtedness and other Company debt, the
                                         amount thereof or payable thereon and all other pertinent facts relating to the Trustee's
                                         obligations under this Article 3.

 

In the event that, notwithstanding the
foregoing provisions of this Section, the Trustee or the Holder of any of the Notes shall have received any payment or distribution
of assets of the Company of any kind or character, whether in cash, property or securities, including by way of set-off or any
such payment or distribution which may be payable or deliverable by reason of the payment of any other indebtedness of the Company
being subordinated to the payment of the Notes, before all Senior Indebtedness is paid in full or payment thereof provided for,
and if such fact shall, at or prior to the time of such payment or distribution, have been made known to a Responsible Officer
of the Trustee in writing or, as the case may be, such Holder, then and in such event such payment or distribution shall be paid
over or delivered forthwith to the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee, agent or other Person
making payment or distribution of assets of the Company for application to the payment of all Senior Indebtedness remaining unpaid,
to the extent necessary to pay all Senior Indebtedness in full, after giving effect to any concurrent payment or distribution
to or for the holders of Senior Indebtedness. Any taxes that have been withheld or deducted from any payment or distribution in
respect of the Notes, or any taxes that ought to have been withheld or deducted from any such payment or distribution that have
been remitted to the relevant taxing authority, shall not be considered to be an amount that the Trustee or the Holder of any
of the Notes receives for purposes of this Section.

 

Section 3.3. Default on Senior Indebtedness.
The Company may not pay principal, premium, interest or Additional Amounts on the Notes and may not acquire any Notes for
cash or property other than capital stock of the Company if:

 

		(1)	(a) in the event and during the continuation of any default
                                         in the payment of principal, premium, if any, or interest on any Senior Indebtedness
                                         beyond any applicable grace period with respect thereto or (b) a default on Senior Indebtedness
                                         occurs and is continuing that permits holders of such Senior Indebtedness (or a trustee
                                         on their behalf) to accelerate its maturity, or

 

		(2)	the default is the subject of judicial proceedings or the Company
                                         receives a notice of the default from a person who may give it pursuant to Section 3.11
                                         hereof. If the Company receives any such notice, a similar notice received within nine
                                         months thereafter relating to the same default on the same issue of Senior Indebtedness
                                         shall not be effective for purposes of this Section.

 

The Company may resume payments on the Notes and may acquire
them when:

 

		a)	the default is cured or waived;

 

		b)	120 days pass after the notice is given if the default is
                                         not the subject of judicial proceedings; or

 

		c)	if this Article 3 otherwise permits the payment or acquisition
                                         at that time.

 

Section 3.4. Acceleration of the Notes.

 

In the event that any Notes are declared
due and payable before their Stated Maturity, then and in such event the holders of Senior Indebtedness shall be entitled to receive
payment in full of all amounts due or to become due on or in respect of all Senior Indebtedness or provision shall be made for
such payment in cash, before the Holders of the Notes are entitled to receive any payment (including any payment which may be
payable by reason of the payment of any other indebtedness of the Company being subordinated to the payment of the Notes) by the
Company on account of the principal of, premium, if any, Additional Amounts, if any or interest on the Notes or on account of
the purchase or other acquisition of Notes; provided, that any money deposited pursuant to Section 4.01 of the Base Indenture
not in violation of the Indenture shall not be subject to the claims of holders of Senior Indebtedness.

 

In the event that, notwithstanding the
forgoing, the Company shall make any payment to the Trustee or the Holder of any Note prohibited by the foregoing provisions of
this Section, and if such fact shall, at or prior to the time of such payment, have been made known to a Responsible Officer of
the Trustee in writing or, as the case may be, such Holder, then and in such event such payment shall be paid over and delivered
forthwith to the Company.

 

    	 	7	 

     

    

 

Section 3.5. When Distribution Must
be Paid Over.

 

If payment or distribution on account of
the Notes of any character or security, whether in cash, securities or other property, is received by Holder, including any applicable
Trustee, in contravention of any of the terms of this Article 3 and before all Senior Indebtedness has been paid in full, such
payment or distribution or security will be received in trust for the benefit of, and must be paid over or delivered and transferred
to, holders of Senior Indebtedness at the time outstanding in accordance with the priorities then existing among those holders
of Senior Indebtedness for application to the payment of all Senior Indebtedness remaining unpaid to the extent necessary to pay
all Senior Indebtedness in full.

 

Section 3.6. Notice by Company.

 

The Company shall promptly notify the Trustee,
in writing, and any Paying Agent of any facts known to the Company that would cause a payment on the Notes to violate this Article.

 

Section 3.7. Subrogation.

 

After all Senior Indebtedness is paid in
full and until the Notes are paid in full, Holders shall be subrogated to the rights of holders of Senior Indebtedness to receive
payments or distributions applicable to Senior Indebtedness to the extent that distributions otherwise payable to the Holders
have been applied to the payment of Senior Indebtedness. A payment or distribution made under this Article to holders of Senior
Indebtedness which otherwise would have been made to Holders is not, as among the Company, its creditors other than the holders
of Senior Indebtedness and Holders, a payment or distribution by the Company on account of the Senior Indebtedness.

 

Section 3.8. Relative Rights.

 

This Article 3 is intended solely to define
the relative rights of Holders on the one hand and the holders of Senior Indebtedness on the other hand. Nothing in the Indenture
or in the Notes shall:

 

		(1)	impair, as among the Company, its creditors other than holders
                                         of Senior Indebtedness and the Holders of the Notes, the obligation of the Company, which
                                         is absolute and unconditional, to pay to the Holders of the Notes the principal of, premium,
                                         if any, Additional Amounts, if any, and interest on the Notes as and when the same shall
                                         become due and payable in accordance with their terms;

 

		(2)	affect the relative rights of Holders and creditors of the
                                         Company other than holders of Senior Indebtedness; or

 

		(3)	prevent the Trustee or any Holder from exercising its available
                                         remedies upon an Event of Default, subject to the rights of holders of Senior Indebtedness
                                         to receive payments or distributions otherwise payable to Holders or the Trustee.

 

If the Company fails because of this Article
3 to pay principal, premium, if any, Additional Amounts, if any, or interest on any of the Notes on the due date, such failure
shall constitute a default hereunder.

 

Section 3.9. Subordination May Not be
Impaired by Company.

 

No right of any holder of Senior Indebtedness
to enforce the subordination of the indebtedness evidenced by the Notes shall be impaired by any act or failure to act by the
Company or by its failure to comply with the Indenture.

 

Section 3.10. Distribution or Notice
to Representative.

 

Whenever a distribution is to be made or
a notice given to holders of Senior Indebtedness, the distribution may be made and the notice given to their Representative.

 

Section 3.11. Rights of Trustee and
Paying Agent.

 

The Trustee or any Paying Agent may continue
to make payments on the Notes until it receives written notice of facts that would cause a payment of principal of or interest
on the Notes to violate this Article. Only the Company, a Representative or a holder of an issue of Senior Indebtedness that has
no Representative may give the written notice.

  

The Trustee has no fiduciary duty to the
holders of Senior Indebtedness other than as created under this Indenture. The Trustee in its individual or any other capacity
may hold Senior Indebtedness with the same rights it would have if it were not Trustee.

 

    	 	8	 

     

    

 

Notwithstanding anything herein to the
contrary, the Company's obligation to pay, and the Company's payment of, the amounts required by Section 6.06 of the Base Indenture
are excluded from the operation of this Article 3. For the sake of clarity, such payments are not subordinated to the Company’s
Senior Indebtedness.

 

Section 3.12. Payments Permitted in
Certain Situations.

 

Nothing contained in this Article 3 or
elsewhere in the Indenture or in any of the Notes shall prevent (a) the Company, at any time except during the pendency of any
case, proceeding, dissolution, liquidation or other winding up, assignment for the benefit of creditors or other marshalling of
assets and liabilities of the Company referred to in Section 3.02 hereof or under the conditions described in Section 3.03 or
3.04 hereof, from making payments at any time of or on account of the principal of, premium, if any, Additional Amounts, if any
or interest on the Notes or on account of the purchase or other acquisition of the Notes, or (b) the application by the Trustee
of any money deposited with it hereunder to the payment of or on account of the principal of, premium, if any, Additional Amounts,
if any, or interest on the Notes or the retention of such payment by the Holders, if, at the time of such application by the Trustee,
it did not have knowledge (in accordance with Section 3.06 hereof) that such payment would have been prohibited by the provisions
of this Article 3.

 

Section 3.13. Trustee to Effectuate
Subordination.

 

Each Holder of a Note by his acceptance
thereof authorizes and directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate
the subordination provided in this Article 3 and appoints the Trustee his attorney-in-fact for any and all such purposes.

 

Section 3.14. Reliance on Judicial Order
or Certificate of Liquidating Agent.

 

Upon any payment or distribution of assets
of the Company referred to in this Article 3, the Trustee, subject to the provisions of Section 6.02 of the Base Indenture, and
the Holders of the Notes shall be entitled to conclusively rely upon any order or decree entered by any court of competent jurisdiction
in which such insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution, winding up or similar case or proceeding
is pending, or a certificate of the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee for the benefit
of creditors, agent or other Person making such payment or distribution, delivered to the Trustee or to the Holders of the Notes,
for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of 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.

 

Section 3.15. Article Applicable to
Paying Agents.

 

In case at any time any Paying Agent other
than the Trustee shall have been appointed by the Company and be then acting hereunder, the term "Trustee" as used in
this Article 3 shall in such case (unless the context otherwise requires) be construed as extending to and including such Paying
Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named in this Article 3 in addition
to or in place of the Trustee.

 

ARTICLE 4

REDEMPTION OF THE NOTES

 

Section 4.1. Optional
Redemption. The Company may, at its option, redeem the Notes, in whole or in part, beginning with the Interest Payment Date
of June 30, 2021 and on any Interest Payment Date thereafter, at a redemption price equal to 100% of the principal amount of the
Notes to be redeemed, plus accrued and unpaid interest (the “Redemption Price”) to, but excluding, the Redemption
Date, subject to prior approval of the Federal Reserve Board to the extent that such approval is required. If we elect to redeem
the Notes, we will be required to notify the trustee of the aggregate principal amount of Notes to be redeemed and the redemption
date. If fewer than all of the Notes are to be redeemed, the trustee is required to select the Notes to be redeemed equally, by
lot or in a manner it deems fair and appropriate. The Notes are not subject to repayment at the option of the holders.

 

The Company’s
election to redeem any Notes shall be provided to the Trustee in the form of an Officer’s Certificate at least 45 days prior
to the Redemption Date, or such shorter notice as may be acceptable to the Trustee. Any partial redemption will be made in accordance
with the Base Indenture. In the case of any partial redemption, the Company shall, at least 60 days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date
and the principal amount of the Notes to be redeemed.

    	 	9	 

     

    

  

Section 4.2. Redemption
Upon Special Events. The Company may also, at its option and subject to prior approval of the Federal Reserve Board if such
prior approval is required at such time, redeem the Notes, in whole but not in part, prior to the Stated Maturity Date, upon the
occurrence of a Tax Event, a Tier 2 Capital Event or a 1940 Act Event. Any such redemption will be at a Redemption Price equal
to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the Redemption
Date fixed by the Company. The Company’s election to redeem any Notes upon the occurrence of a Tax Event, a Tier 2 Capital
Event or a 1940 Act Event shall be provided to the Trustee in the form of an Officer’s Certificate at least 45 days prior
to the Redemption Date, or such shorter notice as may be acceptable to the Trustee.

 

Section 4.3. Redemption
Approval. No redemption of the Notes by the Company prior to the Stated Maturity Date pursuant to this Article 4 shall be
made without the prior approval of the Federal Reserve Board if such prior approval is required at the scheduled Redemption Date.
To the extent that the approval of the Federal Reserve Board is required for the Company’s redemption of the Notes pursuant
to this Article 4, the Trustee shall not have any duty or obligation to determine whether such approval is required or any duty
or obligation to obtain such approval. Prior to the delivery of the notice of redemption to the Holders of the Notes, the Company
shall deliver to the Trustee an Officer’s Certificate stating (i) whether or not the approval of the Federal Reserve Board
is required for the Company’s redemption of the Notes and (ii) if such approval is required, whether or not such approval
has been obtained by the Company.

 

Section 4.4. Redemption
Procedures. Notice of redemption must be provided to the Holders of the Notes to be redeemed not less than 30 nor more than
60 days prior to the applicable Redemption Date. Except as otherwise set forth herein, the provisions of Article Eleven of the
Base Indenture shall apply to any redemption of the Notes pursuant to this Article 4.

 

ARTICLE 5

FORM OF NOTES

 

The Notes and the
Trustee’s certificate of authentication thereon are to be substantially in the form attached as Exhibit A hereto,
with such changes therein as the officers of the Company executing the Notes (by manual or facsimile signature) may approve, such
approval to be conclusively evidenced by their execution thereof.

 

ARTICLE 6

ISSUE OF NOTES

 

Section 6.1. Original
Issue of Notes. Notes having an aggregate principal amount of $50,000,000 may, from time to time, upon execution of this First
Supplemental Indenture, be executed by the Company and delivered to the Trustee for authentication, and the Trustee shall thereupon
authenticate and deliver said Notes in accordance with a Company Order pursuant to Section 3.03 of the Base Indenture without
any further action by the Company (other than as required by the Base Indenture).

 

Section 6.2. Additional
Issues of Notes. The Company may, from time to time, without notice to or the consent of the Holders of the Notes, issue an
unlimited amount of additional subordinated Securities of the same series as the Notes, which Securities will rank pari passu
with the Notes and be identical in all respects to the Notes previously issued except for their issuance date, the offering
price, the interest commencement date and the first payment of interest following the issue date of such additional subordinated
Securities in order that such additional subordinated Securities may be consolidated and form a single series with the Notes outstanding
immediately prior to the issuance of such additional subordinated Securities and have the same terms as to status, redemption
or otherwise as the Notes; provided that a separate CUSIP number will be issued for any such additional Securities unless
the additional Securities are fungible with the Notes for U.S. federal income tax purposes, subject to the procedures of DTC.

 

ARTICLE 7

IMMUNITY OF STOCKHOLDERS, EMPLOYEES, AGENTS, OFFICERS AND DIRECTORS

 

No director, officer,
employee or shareholder of the Company, as such, shall have any liability for any obligations of the Company under the Notes or
this First Supplemental Indenture or for any claim based on, in respect of or by reason of such obligations or their creation.
By accepting the Notes, each Holder waives and releases all such liability.

 

    	 	10	 

     

    

 

ARTICLE 8

MISCELLANEOUS

 

Section 8.1. Ratification
of Base Indenture. The Base Indenture, as supplemented by this First Supplemental Indenture, is in all respects ratified and
confirmed, and this First Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein
and therein provided; provided that the provisions of this First Supplemental Indenture apply solely with respect to the
Notes.

 

Section 8.2. Trustee
Not Responsible for Recitals. The recitals contained herein and in the Notes, except the Trustee’s certificates of authentication,
shall be taken as statements of the Company and not those of the Trustee, and the Trustee assumes no responsibility for the correctness
thereof. The Trustee makes no representations as to the validity or sufficiency of this First Supplemental Indenture or of the
Notes. The Trustee shall not be accountable for the use or application by the Company of the Notes or of the proceeds thereof.

 

Section 8.3. Governing
Law. THIS FIRST SUPPLEMENTAL INDENTURE AND EACH NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO SUCH STATE’S INTERNAL CONFLICTS OF LAWS PRINCIPLES.

 

Section 8.4. Separability
Clause. In case any provision in this First Supplemental Indenture or in the Notes 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 8.5. Counterparts
Originals. This First Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. The exchange
of copies of this First Supplemental Indenture and of signature pages by facsimile transmission or by transmission as a PDF e-mail
attachment shall constitute effective execution and delivery of this First Supplemental Indenture as to the parties hereto and
may be used in lieu of the original First Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted
by facsimile or PDF e-mail attachment shall be deemed to be their original signatures for all purposes.

 

Section 8.6. Benefits
of First Supplemental Indenture. Nothing in this First Supplemental Indenture or in the Notes, express or implied, shall give
to any Person, other than the parties to this First Supplemental Indenture and their successors under this First Supplemental
Indenture and the Persons in whose names the Notes are registered from time to time, any benefit or any legal or equitable right,
remedy or claim under this First Supplemental Indenture.

 

Section 8.7. Conflict
with Base Indenture. To the extent that any provision of this First Supplemental Indenture relating to the Notes is inconsistent
with any provision of the Base Indenture, such provision of this First Supplemental Indenture shall control with respect to the
Notes.

 

Section 7.8. Trust
Indenture Act Controls. This First Supplemental Indenture is subject to the provisions of the Trust Indenture Act that are
required to be part of the Indenture and shall, to the extent applicable, be governed by such provisions. If any provision of
this First Supplemental Indenture limits, qualifies or conflicts with another provision that is required or deemed to be included
in this First Supplemental Indenture by the Trust Indenture Act, such required or deemed provision shall control.

 

Section 8.9. Rights,
Protections and Immunities of the Trustee. All of the rights, protections, benefits, immunities and indemnities afforded or
given to the Trustee, the Registrar and the Paying Agent pursuant to the Base Indenture shall apply to and be enforceable by the
Trustee, the Registrar and the Paying Agent acting in their respective capacities relating to the Notes and pursuant to this First
Supplemental Indenture mutatis mutandi as if set forth and incorporated herein. The Trustee is acting hereunder, not in
its individual capacity, but solely in its capacity as Trustee for the Notes under the Indenture.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

 

    	 	11	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this First Supplemental Indenture to be duly executed as of the day and year first written above.

 

	 	PEAPACK-GLADSTONE FINANCIAL CORPORATION
    	 
	 	 	 	 
	 	By: 	/s/ Jeffrey
    Carfora	 
	 	Name: 	Jeffrey Carfora	 
	 	Title: 	Senior Executive Vice President and

        Chief Financial Officer
	 

  

	 	U.S. BANK NATIONAL ASSOCIATION 

as
    Trustee, Registrar and Paying Agent	 
	 	 	 	 
	 	By: 	/s/ Rick
    Barnes	 
	 	Name: 	Rick Barnes	 
	 	Title: 	Vice President	 

 

[Signature Page to First Supplemental Indenture]

 

    	 	12	 

     

    

 

[FORM OF NOTE]

 

EXHIBIT A

 

THIS SECURITY AND THE OBLIGATIONS OF
THE COMPANY (AS DEFINED HEREIN) AS EVIDENCED HEREBY (1) ARE NOT DEPOSITS WITH OR HELD BY THE COMPANY AND ARE NOT INSURED OR GUARANTEED
BY ANY FEDERAL AGENCY OR INSTRUMENTALITY, INCLUDING, WITHOUT LIMITATION, THE FEDERAL DEPOSIT INSURANCE CORPORATION AND (2) ARE
SUBORDINATE IN THE RIGHT OF PAYMENT TO THE SENIOR INDEBTEDNESS (AS DEFINED IN THE INDENTURE IDENTIFIED HEREIN).

 

GLOBAL NOTE

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN
THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY,
WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE
OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE (I)
BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR (II) BY A NOMINEE OF THE DEPOSITARY OR THE DEPOSITARY TO A SUCCESSOR DEPOSITARY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY TO THE ISSUER 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 REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL
BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, 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.

 

    	 	13	 

     

    

PEAPACK-GLADSTONE FINANCIAL CORPORATION

6.00% Fixed-to-Floating Subordinated Notes due June 30, 2026

 

	No. 1	 	CUSIP: 704699 AA5
	 	 	ISIN: US704699AA50

 

$50,000,000

 

Peapack-Gladstone
Financial Corporation, a New Jersey corporation (hereinafter called the “Company,”
which term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to CEDE & CO., or its registered assigns, the principal sum of $50,000,000
(or such other amount as set forth in the Schedule of Increases or Decreases in Global Note attached hereto) on June 30, 2026
(such date is hereinafter referred to as the “Stated
Maturity Date”), unless redeemed prior to such date,
and to pay interest thereon (i) from, and including, the date of initial issuance of the Notes, to, but excluding, June 30, 2021,
unless redeemed prior to such date, at an annual rate of 6.00%, computed on the basis of a 360-day year consisting of twelve 30-day
months, and payable semi-annually in arrears on each June 30 and December 30 of each year, commencing on December 30, 2016 and
ending on June 30, 2021 (each such date, a “Fixed Rate
Interest Payment Date,” with the period from, and including,
the date of initial issuance of the Notes to, but excluding, the first Fixed Rate Interest Payment Date and each successive period
from, and including, a Fixed Rate Interest Payment Date to, but excluding, the next Fixed Rate Interest Payment Date being a “Fixed
Rate Period”) and (ii) from, and including, June 30,
2021 to, but excluding, the Stated Maturity Date, unless redeemed subsequent to June 30, 2021 but prior to the Stated Maturity
Date, at a rate equal to Three-month LIBOR, reset quarterly, plus 485 basis points (4.85%), payable quarterly in arrears on each
March 30, June 30, September 30 and December 30, beginning on September 30, 2021 (each, a “Floating
Rate Interest Payment Date,” and together with the Fixed
Rate Interest Payment Dates, the “Interest Payment Dates,”
with the period from, and including, June 30, 2021 to, but excluding,
the first Floating Rate Interest Payment Date and each successive period from, and including a Floating Rate Interest Payment
Date to, but excluding, the next Floating Rate Interest Payment Date being a “Floating
Rate Period”). In the event that any scheduled Fixed
Rate Interest Payment date on this Note falls on a day that is not a Business Day (as defined in the Indenture), then payment
of interest payable on such Fixed Rate Interest Payment Date will be postponed to the next succeeding day that is a Business Day
(and no interest shall accrue on the amount payable for the period from and after such scheduled Fixed Rate Interest Payment Date
to the next succeeding Business Day). Interest payable on this Note for a Floating Rate Period shall be computed on the basis
of a 360-day year and the actual number of days in such Floating Rate Period. All percentages used in or resulting from any calculation
of Three-month LIBOR shall be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with 0.000005%
rounded up to 0.00001%. In the event that any scheduled Floating Rate Interest Payment Date on this Note falls on a day that is
not a Business Day, then payment of interest payable on such Floating Rate Interest Payment Date will be postponed to the next
succeeding day that is a Business Day, unless such day falls in the next succeeding calendar month, in which case such Floating
Rate Interest Payment Date will be accelerated to the immediately preceding day that is a Business Day, and, in each such case,
the amounts payable on such Business Day will include interest accrued to, but excluding, such Business Day.

 

Any principal and
premium, and any such installment of interest, which is overdue shall bear interest at the applicable rate set forth in the previous
paragraph (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 interest payable on any Fixed
Rate Interest Payment Date will be paid to each Holder in whose name a Note is registered at the close of business on the June
15 and December 15 (whether or not a Business Day) immediately preceding such Fixed Rate Interest Payment Date. The interest payable
on any Floating Rate Interest Payment Date will be paid to the Holder in whose name a Note is registered at the close of business
on the March 15, June 15, September 15 and December 15 (whether or not a Business Day) immediately preceding such Floating Rate
Interest Payment Date.

 

Payment of the principal
of and interest on this Note shall be made at an office or agency of the Company maintained for such purpose, which shall initially
be the Corporate Trust Office of the Trustee, in such 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 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 Note shall
not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

[Signature
Page Follows]

 

     

     

    

 

IN WITNESS WHEREOF, the Company has caused
this Note to be signed manually or by facsimile by its duly authorized officer.

 

	PEAPACK-GLADSTONE FINANCIAL CORPORATION	 
	 	 	 
	By: 	 	 
	Name:	Jeffrey Carfora	 
	Title:	Senior Executive Vice President and Chief Financial Officer
	 	 	 
	By: 	 	 
	Name:	Mary M. Russell	 
	Title:	Corporate Secretary	 

 

     

     

    

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

Date of authentication: June 15, 2016

 

	u.s. Bank national association, as Trustee	 
	 	 	 
	By:	 	 
	 	   Authorized Signatory	 

 

     

     

    

 

REVERSE OF NOTE

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

 

6.00% Fixed-to-Floating Subordinated Notes
due June 30, 2026

 

This
Note is one of a duly authorized issue of Securities of the Company of a series designated as the “6.00%
Fixed-to-Floating Subordinated Notes due June 30, 2026”
(herein called the “Notes”)
initially issued in an aggregate principal amount of $50,000,000 on June 15, 2016. Such series of Securities has been established
pursuant to, and is one of an indefinite number of series of subordinated debt securities of the Company issued or issuable under
and pursuant to the Indenture, dated as of June 15, 2016 (the “Base
Indenture”), between the Company and U.S. Bank National
Association, as Trustee (herein called the “Trustee,”
which term includes any successor trustee), as supplemented and amended
by the First Supplemental Indenture between the Company and the Trustee, dated as of June 15, 2016 (the “First
Supplemental Indenture,” and the Base Indenture as supplemented
and amended by the First Supplemental Indenture, the “Indenture”),
to which Indenture and any other indentures supplemental thereto 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 Persons in whose names Notes are registered
from time to time and of the terms upon which the Notes are, and are to be, authenticated and delivered. The terms, conditions
and provisions of the Notes are those stated in the Indenture, those made part of the Indenture by reference to the Trust Indenture
Act of 1939, as amended (the “Trust Indenture Act”),
and those set forth in this Note. To the extent that the terms, conditions and provisions of this Note modify, supplement or are
inconsistent with those of the Indenture, then the terms, conditions and other provisions of this Note shall govern to the extent
that such terms, conditions and other provisions of this Note are not inconsistent with the terms, conditions and provisions made
part of the Indenture by reference to the Trust Indenture Act.

 

All capitalized terms
used in this Note and not defined herein that are defined in the Indenture shall have the meanings assigned to them in the Indenture.
To the extent that any capitalized term used in this Note and defined herein is also defined in the Indenture but conflicts with
the definition provided in the Indenture, the definition of the capitalized term in this Note shall control.

 

The indebtedness of
the Company evidenced by the Notes, including the principal thereof, premium, if any, and interest thereon, is, to the extent
and in the manner set forth in the Indenture, subordinate and subject in right of payment to the prior payment in full of all
Senior Indebtedness, whether outstanding at the date hereof or hereafter incurred, and on the terms and subject to the terms and
conditions set forth in the Indenture, and shall rank pari passu in right of payment with all other Securities, and with
all other unsecured subordinated indebtedness of the Company not by its terms subordinate and subject in right of payment to the
prior payment in full of debentures, notes, bonds or other evidences of indebtedness of types that include the Notes. Each Holder
of this Note, by the acceptance hereof, agrees to and shall 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.

 

The
Notes are intended to be treated as Tier 2 capital (or its then-equivalent if the Company were subject to such capital requirement)
for purposes of capital adequacy guidelines of the Board of Governors of the Federal Reserve System (or any successor regulatory
authority with jurisdiction over bank holding companies) (the “Federal
Reserve Board”) as then in effect and applicable to the
Company. If an Event of Default with respect to Notes shall occur and be continuing, the principal and interest owed on the Notes
shall only become due and payable in accordance with the terms and conditions set forth in Article Five of the Base Indenture
and Section 2.7 of the First Supplemental Indenture. Accordingly, the Holder of this Note shall have no right to accelerate
the maturity of this Note unless there is an Event of Default specified under clause (5) or (6) of Section 5.01 of the Base Indenture.

 

The
Company may, at its option, redeem the Notes, in whole or in part, beginning with the Interest Payment Date of June 30, 2021 and
on any Interest Payment Date thereafter, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed,
plus accrued and unpaid interest (the “Redemption Price”)
to, but excluding, the Redemption Date, subject to prior approval of the Federal Reserve Board to the extent that such approval
is required. The Company may also, at its option, and subject to prior approval of the Federal Reserve Board if such prior approval
is required at such time, redeem the Notes, in whole but not in part, prior to the Stated Maturity Date, upon the occurrence of
a Tax Event, a Tier 2 Capital Event or a 1940 Act Event. Any such redemption will be at a Redemption Price equal to 100% of the
principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the Redemption Date fixed by
the Company. The provisions of Article Eleven of the Base Indenture and Article 4 of the First Supplemental Indenture shall apply
to the redemption of any Notes by the Company. 

 

The Notes are not
entitled to the benefit of any sinking fund. The Notes are not convertible into or exchangeable for any other securities or property
of the Company or any Subsidiary of the Company. The Base Indenture provisions relating to defeasance in Section 4.02 shall not
be applicable to the Notes.

 

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 Notes at any time by the Company and the Trustee with the consent of the Holders of at least
a majority in principal amount of the Outstanding Notes. The Indenture also contains provisions permitting the Holders of specified
percentages in principal amount of the Notes at the time Outstanding, on behalf of the Holders of all Notes, to waive certain
past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be binding
upon such Holder and upon all future Holders of this Note and of any 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 Note.

 

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security Register
described in Section 3.05 of the Base Indenture, upon surrender of this Note for registration of transfer at the office or agency
of the Company in any place where the principal of and interest on this Note are payable, duly endorsed by, or accompanied by
a written instrument of transfer in form satisfactory to the Company and the Security Registrar for such Note duly executed by
the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations
and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

     

     

    

 

 

The Notes are issuable
and may be transferred only in denominations of $1,000 and integral multiples of $1,000 in excess thereof.

 

The Company and the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof
for the purpose of receiving payment of principal of, any premium and interest on and any Additional Amounts with respect to this
Note and for all other purposes whatsoever, whether or not any payment with respect to this Note is overdue, and neither the Company,
the Trustee nor any such agent shall be affected by notice to the contrary.

 

This
Security is a global note, represented by one or more permanent global certificates registered in the name of the nominee of The
Depository Trust Company (each a “Global Note”
and collectively, the “Global
Notes”). Accordingly, unless and until it is exchanged for
individual certificates, this Note may not be transferred except as a whole by The Depository Trust Company (the “Depositary”)
to a nominee of such Depositary or by a nominee of such Depositary or by the Depositary or any nominee to a successor Depositary
or any nominee of such successor. Ownership of beneficial interests in this Security will be shown on, and the transfer of that
ownership will be effected only through, records maintained by the applicable Depositary or its nominee (with respect to interest
of persons that have accounts with the Depositary (“Participants”))
and the records of Participants (with respect to interests of persons other than Participants). Beneficial interests in Notes
owned by persons that hold through Participants will be evidenced only by, and transfers of such beneficial interests with such
Participants will be effected only through, records maintained by such Participants. Except as provided below, owners of beneficial
interests in this Note will not be entitled to have any individual certificates and will not be considered the owners or Holders
thereof under the Indenture.

 

Except
in the limited circumstances set forth in the Base Indenture, Participants and owners of beneficial interests in the Global Notes
will not be entitled to receive Notes in the form of individual securities in definitive, non-global form registered in the name
or names of Persons other than the Depositary or a nominee or nominees thereof (“Individual
Securities”) and will not be considered Holders of Notes.
None of the Company, the Trustee, the Security Registrar, the Paying Agent or any of their respective agents will be liable for
any delay by the Depositary, its nominee or any direct or indirect Participant in identifying the beneficial owners of the related
Notes. The Company, the Trustee, the Security Registrar, the Paying Agent and each of their respective agents may conclusively
rely on, and will be protected in relying on, instructions from the Depositary or its nominee for all purposes, including with
respect to the registration and delivery, and the respective principal amounts, of the Notes to be issued.

 

Except as provided
in Section 3.05 of the Base Indenture, beneficial owners of Global Notes will not be entitled to receive physical delivery of
Notes in the form of Individual Securities, and no Global Note will be exchangeable except for another Global Note of like denomination
and tenor to be registered in the name of the Depositary or its nominee. Accordingly, each person owning a beneficial interest
in a Global Note must rely on the procedures of the Depositary and, if such person is not a Participant, on the procedures of
the Participant through which such person owns its interest, to exercise any rights of a Holder under the Notes.

 

The
laws of some jurisdictions may require that certain purchasers of securities take physical delivery of those securities in definitive
form. Accordingly, the ability to transfer interests in the Notes represented by a Global Note to those persons may be limited.
In addition, because the Depositary can act only on behalf of its Participants, who in turn act on behalf of persons who hold
interests through Participants, the ability of a person having an interest in Notes represented by a Global Note to pledge or
transfer such interest to persons or entities that do not participate in the Depositary’s
system, or otherwise to take actions in respect of such interest, may be affected by the lack of a physical definitive security
in respect of such interest. None of the Company, the Trustee, the Paying Agent and the Security Registrar will have any responsibility
or liability for any aspect of the records relating to or payments made on account of Notes by the Depositary, or for maintaining,
supervising or reviewing any records of the Depositary relating to the Notes.

 

U.S.
Bank National Association, will act as the Company’s Paying
Agent with respect to the Notes through its Corporate Trust Office presently located at 21 South Street, 3rd Floor,
Morristown, New Jersey 07960. The Company may at any time rescind the designation of a Paying Agent, appoint a successor Paying
Agent, or approve a change in the office through which any Paying Agent acts.

 

Notices
to the Holders of registered Notes in the form of Individual Securities will be given to such Holders at their respective addresses
in the Register, or in the case of Global Notes, electronic delivery in accordance with DTC’s
applicable procedures. The Indenture contains provisions setting forth certain conditions to the institution of proceedings by
the Holders of Notes with respect to the Indenture or for any remedy under the Indenture.

 

THIS
NOTE SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO SUCH STATE’S
INTERNAL CONFLICT OF LAWS PRINCIPALS.

 

     

     

    

 

ASSIGNMENT FORM

 

To assign the within Security, fill in
the form below: I or we assign and transfer the within Security to:

 

	 	 	 
	 	(Insert assignee’s
    legal name)	 
	 	 	 
	 	 	 
	 	 	 
	 	(Insert assignee’s
    social security or tax I.D. no.)	 
	 	 	 
	 	 	 
	 	 	 
	 	(Print or type assignee’s
    name, address and zip code)	 

  

and irrevocably appoint U.S. Bank National Association as agent
to transfer this Security on the books of Peapack-Gladstone Financial Corporation. The agent may substitute another to act for
it.

 

Your Signature:

(Sign exactly as your name appears on the other side of
this Security)

 

Your Name:

 

Date:

 

Signature Guarantee:

 

SIGNATURE GUARANTEE

 

Signatures
must be guaranteed by an “eligible guarantor institution”
meeting the requirements of the Security Registrar, which requirements
include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”)
or such other “signature guarantee program”
as may be determined by the Security Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

     

     

    

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL
NOTE

 

The initial principal amount of this Global
Note is $50,000,000. The following increases or decreases in the principal amount of this Global Note have been made:

 

	Date	 	Amount of

increase in

principal amount

of this

Global Note	 	Amount of

decrease in

principal amount

of this 

Global Note	 	Principal amount

of this

Global Note

following such

decrease or

increase	 	Signature of

authorized

signatory of 

TrusteeExhibit 10.1

 

SECOND AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT

 

This SECOND AMENDMENT
TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Second Amendment”) dated as of June 14, 2016 is among EMPIRE
RESOURCES, INC., a Delaware corporation (the “Company”), the undersigned Banks and COÖPERATIEVE
RABOBANK U.A (formerly known as Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”), NEW
YORK BRANCH, as Agent (the “Agent”). Capitalized terms used herein and not otherwise defined herein shall
have the meanings given to them in the Credit Agreement (as defined below).

 

WITNESSETH:

 

WHEREAS, the Company, the
Banks, the Syndication Agent, the Agent, the Issuing Bank, the Swing Line Bank and the Lead Arranger are parties to the Amended
and Restated Credit Agreement dated as of June 19, 2014 (as amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”);

 

WHEREAS, RB International
Finance (USA) LLC (the “Departing Lender”) has requested to withdraw as a Bank and to be repaid its outstanding Obligations;
and

 

WHEREAS, the Company has
requested certain amendments to the Credit Agreement and the Banks and the Agent are willing to agree to such amendments and the
withdrawal of the Departing Lender from the facility, on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration
of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

 

SECTION 1.          Amendments.

 

The Credit Agreement is
hereby amended, upon the occurrence of the Effective Date (as defined in Section 3 below), as follows:

 

(a)          Section
1.01 is amended as follows:

 

(i)          The
definition of “Defaulting Bank” is amended by (x) deleting “or” at the end of clause (c)(v) therein and
replacing it with “,” and (y) inserting the following immediately after clause (c)(vi) therein (before the “;”):
“or (vii) become the subject of a Bail-In Action”.

 

(ii)         The
definition of “Eligible Inventory” is amended as follows:

 

(A)         clause
(e) is amended and restated in its entirety as follows:

 

“(e) in respect of such Inventory either (i) (A) one
or more customers of the Company has contracted to purchase such Inventory at a predetermined fixed price under sales contracts
entered into by the Company in the ordinary course of business and (B) upon such delivery an Eligible Receivable will arise or
(ii) such Inventory is hedged by futures contracts (in a manner acceptable to the Required Banks) in a futures account maintained
with a broker acceptable to the Agent, which futures account shall be subject to no rights of any third party other than the Agent
and customary setoff rights of the applicable broker,”; and

 

    - 1 -

     

    

  

(B)         the
proviso (after clause (l)) is amended by deleting “65%” and replacing it with “75%”.

 

(iii)        The
definition of “Monthly Date” is inserted in its proper alphabetical place as follows:

 

““Monthly Date”
means the last Business Day of each month.”

 

(iv)        The
definition of “Quarterly Date” is deleted.

 

(v)         The
following definitions are hereby inserted in their proper alphabetical places:

 

“Bail-In
Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect
of any liability of an EEA Financial Institution.

 

“Bail-In
Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European
Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is
described in the EU Bail-In Legislation Schedule.

 

“EEA Financial
Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject
to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an
institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which
is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision
with its parent.

 

“EEA Member
Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution
Authority” means any public administrative authority or any person entrusted with public administrative authority of
any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“EU Bail-In
Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor
person), as in effect from time to time.

 

    - 2 -

     

    

 

“Sanctions” means any sanctions imposed
or administered by or enforced by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union,
Her Majesty’s Treasury, the Netherlands, the French Republic or other relevant sanctions authority.

 

“Write-Down
and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such
EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down
and conversion powers are described in the EU Bail-In Legislation Schedule.

 

(b)          Section
2.03 is amended as follows:

 

(i)          clause
(ii) of the first proviso in the first paragraph is amended by deleting “$75,000,000” and replacing it with “$65,000,000”;
and

 

(ii)         clause
(g) is amended and restated in its entirety as follows:

 

“(g) (i)        Letter of Credit Fees. The Company shall pay to the Agent for the pro rata account of the Banks (other than Defaulting
Banks) in accordance with their respective Revolving Loan Commitment Percentages), the following fees:

 

(A)         Commercial
Letters of Credit. For each commercial Letter of Credit, a letter of credit fee in an amount equal to 0.125% flat for each
90 day period or part thereof between the date of issuance and the expiration date thereof, on the face amount of such Letter of
Credit, such letter of credit fee accrued through and including each Monthly Date to be due and payable no later than the date
which is ten (10) Business Days after delivery by the Agent to the Company of a monthly invoice therefor;

 

(B)         Standby
Letters of Credit. For each standby Letter of Credit, a letter of credit fee at a rate per annum equal to 2.35% on the average
daily undrawn amount of such standby Letter of Credit during the period from the date of issuance through and including the date
of drawing of the entire amount or expiration or termination thereof, such letter of credit fee accrued through and including each
Monthly Date to be due and payable no later than the date which is ten (10) Business Days after delivery by the Agent to the Company
of a monthly invoice therefor;

 

provided that
such letter of credit commissions with respect to each Letter of Credit set forth in clauses (A) and (B) above shall be non-refundable
and shall not be less than $500, and

 

    - 3 -

     

    

  

(ii)         Letter
of Credit Fronting Fees. The Company shall pay to each Issuing Bank a fronting fee with respect to each Letter of Credit issued
by such Issuing Bank, which shall accrue at the rate or rates per annum separately agreed upon between the Company and the applicable
Issuing Bank on the daily amount of the Letter of Credit Liabilities (excluding any portion thereof attributable to unreimbursed
Reimbursement Obligations) during the period from and including the Closing Date to but excluding the later of the date of termination
of the Revolving Loan Commitments and the date on which there ceases to be any Letter of Credit Liabilities with respect to such
Issuing Bank, such fronting fees accrued through and including each Monthly Date to be due and payable no later than the date which
is ten (10) Business Days after delivery by the Agent to the Company of a monthly invoice therefor;

 

provided that all
such fees (under clauses (i) and (ii) above) shall also be payable (to the extent accrued and not yet paid) on the date on which
the Revolving Loan Commitments terminate and any such fees accruing after the date on which the Revolving Loan Commitments terminate
shall be payable upon the expiration of the applicable Letter of Credit or, if earlier, the date on which the Revolving Loan Commitments
terminate.

 

In addition, the Company shall pay to the Agent for account
of the applicable Issuing Bank, such Issuing Bank’s standard fees with respect to the amendment or negotiation of any Letter
of Credit or processing of drawings thereunder. Any other fees payable to an Issuing Bank pursuant to this paragraph shall be payable
within 10 Business Days after demand.”

 

(c)          Section
2.06 is amended and restated in its entirety as follows:

 

“2.06 Commitment Fee. The Company shall pay
to the Agent for account of each Bank a commitment fee on the daily average unused portion of the Revolving Loan Commitment of
such Bank (for which purpose (a) the aggregate amount of any Letter of Credit Liabilities shall be deemed to be a use of the Revolving
Loan Commitment and (b) the aggregate amount of any Swing Line Loans then outstanding shall not be deemed to be a use of the Revolving
Loan Commitment), for the period from and including the date of this Agreement to but not including the earlier of the date the
Revolving Loan Commitment is terminated and the Revolving Credit Commitment Termination Date, at a rate per annum equal to 0.50%.
Accrued commitment fees through and including each Monthly Date shall be due and payable no later than the date which is ten (10)
Business Days after delivery by the Agent to the Company of a monthly invoice therefor, and on the earlier of the date the Revolving
Loan Commitment is terminated and the Revolving Credit Commitment Termination Date. For purposes of this paragraph, the Revolving
Loan Commitment of a Defaulting Bank shall be deemed to be fully utilized for as long as such Bank is a Defaulting Bank.”

 

    - 4 -

     

    

  

(d)          Section
7.16 is amended and restated in its entirety as follows:

 

“7.16         OFAC/Money
Laundering/Corruption Representations. No Obligor nor, to the knowledge of any Obligor, any of its employees, directors, officers
or Affiliates is in violation of any Laws relating to Sanctions, bribery, corruption, terrorism or money laundering (collectively,
“Anti-Terrorism Laws”), including regulations administered by the United States Treasury Department’s
Office of Foreign Asset Control (“OFAC”) and the Executive Order No. 13224 on Terrorist Financing, effective
September 24, 2001 (the “Executive Order”), and the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56. No Obligor nor, to the knowledge of any Obligor,
any of its employees, directors, officers or Affiliates, or their respective brokers or other agents acting or benefiting in any
capacity in connection with the Loans or Letters of Credit, is any of the following (each such Person, a “Sanctioned Person”):

 

(a)          a
Person or country that is listed in the annex to, or is otherwise subject in the prohibitions contained in, the Executive Order
or the OFAC regulations, or that is subject to or the target of any Sanctions;

 

(b)          a
Person owned or controlled by, or acting for or on the behalf of, any Person that is listed in the annex to, or is otherwise subject
to the prohibitions contained in, the Executive Order or the OFAC regulations or other Anti-Terrorism Laws or similar Laws promulgated
by the United Nations or Her Majesty’s Treasury;

 

(c)          a
Person with which the Agent or any Bank is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism
Law;

 

(d)          a
Person that commits, threatens or conspires to commit or supports “terrorism” as defined in the Executive Order or
the OFAC regulations;

 

(e)          a
Person that is (i) named on the most current list of “Specially Designated Nationals and Blocked Persons” published
by OFAC at its official website or any replacement website or other replacement official publication list or (ii) similarly designated
in any comparable list published by the United Nations or any Governmental Authority of the European Union, the Netherlands, the
United Kingdom or the French Republic; or

 

(f)          a
Person located, organized or resident in a country or territory that is, or whose government is, the subject of Sanctions including,
without limitation, Cuba, Iran, North Korea, Sudan and Syria.

 

No Obligor nor any of its brokers or
other agents acting in any capacity in connection with the Loans or Letters of Credit (x) conducts any business or engages in making
or receiving any contribution of funds, goods or services to or for the benefit of any Sanctioned Person, (y) deals in, or otherwise
engages in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order or the OFAC
regulations, or (z) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law.

 

    - 5 -

     

    

  

No part of the proceeds
of the Loans or Letters of Credit will be used, directly or indirectly, (x) for any payments to any Sanctioned Person, governmental
official or employee, political party, official of a political party, candidate for political office, or anyone else acting in
an official capacity, (i) in order to obtain, retain or direct business or obtain any improper advantage, in violation of OFAC,
Anti-Terrorism Laws, regulations of the European Union or the United States Foreign Corrupt Practices Act of 1977, as amended or
(ii) which could result in the imposition of Sanctions against any Person (including any Bank) or (y) to fund any activities or
business of or with any Person that, at the time of funding, is a Person described in any of clauses (a) - (f) above.”

 

(e)          Section
8.10 is amended by deleting “$42,500,000” and replacing it with “$37,500,000”.

 

(f)          New
Section 11.24 is hereby inserted after Section 11.23 as follows:

 

“11.20 Acknowledgement
and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Basic Document or in
any other agreement, arrangement or understanding among any of the parties thereto, each of the Company and the Secured Parties
acknowledges that any liability of any EEA Financial Institution arising under any Basic Document, to the extent such liability
is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to,
and acknowledges and agrees to be bound by:

 

		(a)	the application of any Write-Down and Conversion Powers
by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is
an EEA Financial Institution; and

 

		(b)	the effects of any Bail-in Action on any such liability,
including, if applicable:

 

(i)          a
reduction in full or in part or cancellation of any such liability;

 

(ii)         a
conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution,
its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or
other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement
or any other Basic Document; or

 

(iii)        
the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA
Resolution Authority.”

 

(g)          Schedule
A is amended and restated in its entirety as set forth on Annex I hereto.

 

    - 6 -

     

    

  

(h)          Footnote
4 on Schedule 1 to Exhibit B is amended by deleting “65%” and replacing it with “75%”.

 

(i)          Section
7 of Exhibit G is hereby amended and restated in its entirety as follows:

 

“7. SECTION 8.10 – Net Working Capital

 

	(a) Base Amount	$37,500,000	 
	(b) 25% of Company’s Consolidated Net Income (only if a positive number) for the fiscal year most recently ended	$_________	 
	(c) Total minimum required Net Working Capital (8(a) plus 8(b))	$_________	 
	(d) Actual Net Working Capital	$_________	Yes     No”

  

SECTION 2.          Departing
Bank Provisions; Reallocation.

 

(a)          On
the Effective Date (immediately prior to giving effect to this Second Amendment (and for the avoidance of doubt, each of the parties
hereto acknowledges that the Departing Bank shall not be deemed to have consented to any of the amendments to the Credit Agreement
set forth in Section 1 hereof and none of such amendments shall be effective until the requirements of this Section 2(a) have been
satisfied)), the Company shall repay in full all outstanding Loans and other Loan Obligations (including, without limitation, any
amounts payable under Section 5.04 of the Credit Agreement in connection with such repayment) owing to the Departing Bank and upon
such repayment, the Departing Bank shall cease to be a Bank, the Departing Bank’s Commitment shall terminate and the Departing
Bank’s rights and obligations under the Basic Documents (and the rights under the Intercreditor Agreement) shall terminate
except for any such rights under Section 11.03 of the Credit Agreement and any other rights that expressly survive such termination.

 

(b)          All
payments made under clause (a) above shall be retained solely by the Departing Bank and shall not be subject to the pro rata sharing
provisions set forth in the Basic Documents.

 

(c)          On
the date hereof, the Agent shall reallocate, if necessary, the Loan Obligations of all Banks (other than the Departing Bank) such
that after giving effect thereto, each Bank (other than the Departing Bank) shall have Loan Obligations in accordance with its
Revolving Loan Commitment Percentage (after giving effect to this Second Amendment). Each Bank (other than the Departing Bank)
hereby agrees that in connection with such reallocation it shall be deemed to have purchased and/or sold, as applicable, by assignment
(without recourse) to or from such other Banks such amounts as necessary to effect the reallocation set forth above.

 

(d)          The
Company hereby agrees that, in connection with the reallocation set forth in clause (c) above, the Company shall compensate each
Bank for any loss, cost or expense attributable to such reallocation as required by Section 5.04 of the Credit Agreement.

 

    - 7 -

     

    

  

SECTION 3.          Effectiveness
of Amendment.

 

This Second Amendment shall
become effective on the date (the “Effective Date”) on which the Agent shall have received:

 

(a)          this
Second Amendment duly executed by each of the Company, the Agent and the Banks, and duly acknowledged by the Guarantor;

 

(b)          such
corporate authorization documents and opinions of counsel as the Banks shall require; and

 

(c)          payment
from the Company, in immediately available funds, of an arranging fee for the sole account of the Agent in an amount set forth
in that certain Fee Letter dated May 11, 2016 executed by the Company and the Agent and the reasonable fees of counsel to the Agent
for which an invoice shall have been provided.

 

SECTION 4.          Effect
of Amendment; Ratification; Representations; etc.

 

(a)          On
and after the Effective Date, this Second Amendment shall be a part of the Credit Agreement, all references to the Credit
Agreement in the Credit Agreement and the other Basic Documents shall be deemed to refer to the Credit Agreement as amended by
this Second Amendment, and the term “this Agreement”, and the words “hereof”, “herein”, “hereunder”
and words of similar import, as used in the Credit Agreement, shall mean the Credit Agreement as amended hereby.

 

(b)          Except
as expressly set forth herein, this Second Amendment shall not constitute an amendment, waiver or consent with respect to any provision
of the Credit Agreement and the Credit Agreement is hereby ratified, approved and confirmed in all respects and remains in full
force and effect.

 

(c)          In
order to induce the Agent and the Banks to enter into this Second Amendment, each Company represents and warrants to the Agent
and the Banks that before and after giving effect to the execution and delivery of this Second Amendment:

 

(i)          the
representations and warranties of such Company set forth in the Credit Agreement and in the other Basic Documents are true and
correct in all material respects as if made on and as of the date hereof, except for those representations and warranties that
by their terms were made as of a specified date which were true and correct on and as of such date; and

 

(ii)         no
Default or Event of Default has occurred and is continuing.

 

(d)          This
Second Amendment shall be a Basic Document.

 

    - 8 -

     

    

  

SECTION 5.          Counterparts.

 

This Second Amendment may
be executed by one or more of the parties to this Second Amendment on any number of separate counterparts (including by facsimile
or email transmission of signature pages hereto), and all of said counterparts taken together shall be deemed to constitute one
and the same agreement. A set of the copies of this Second Amendment signed by all the parties shall be lodged with the Company
and the Agent.

 

SECTION 6.          Severability.

 

Any provision of this Second
Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

SECTION 7.          GOVERNING
LAW.

 

THIS SECOND AMENDMENT AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK.

 

SECTION 8.          WAIVERS
OF JURY TRIAL.

 

EACH OF THE COMPANY, THE
AGENT AND THE BANKS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
SECOND AMENDMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

[Remainder of Page Intentionally Left Blank;
Signature Pages Follow]

 

    - 9 -

     

    

  

IN WITNESS WHEREOF, the
parties hereto have caused this Second Amendment to be duly executed as of the day and year first above written.

 

	
          
	EMPIRE RESOURCES, INC.
	 	 	 
	 	By:	/s/ Sandra Kahn
	 	 	Name: Sandra Kahn
	 	 	Title: Vice President

 

     

     

    

 

	 	COÖPERATIEVE RABOBANK, U.A.
(formerly known as Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”), NEW YORK BRANCH,
as Agent and as a Bank
	 	 
	 	By: 	/s/ Paul Moisselin
	 	 	Name: Paul Moisselin
	 	 	Title: Vice President
	 	 	 
	 	By:	/s/ Jan Hendrik de Graaff
	 	 	Name: Jan Hendrik de Graaff
	 	 	Title: Managing Director

 

     

     

    

 

	 	BNP PARIBAS, as a Bank
	 	 	 
	 	By: 	/s/ Bradley Dingwall
	 	 	Name: Bradley Dingwall
	 	 	Title: Director
	 	 	 
	 	By:	/s/ Deborah P. Whittle
	 	 	Name: Deborah P. Whittle
	 	 	Title: Director

 

     

     

    

 

	 	SOCIÉTÉ GÉNÉRALE S.A., as a Bank
	 	 	 
	 	By:	/s/ Barbara Paulsen
	 	 	Name: Barbara Paulsen
	 	 	Title: Managing Director

 

     

     

    

 

	 	ABN AMRO CAPITAL USA LLC, as a Bank
	 	 	 
	 	By:	/s/ Jamie Matos
	 	 	Name: Jamie Matos
	 	 	Title: Vice President
	 	 	 
	 	By: 	/s/ R. Bisscheroux
	 	 	Name: R. Bisscheroux
	 	 	Title: Director

 

     

     

    

 

	 	BROWN BROTHERS HARRIMAN & CO., as a Bank
	 	 	 
	 	By: 	/s/ Michael Vellucci
	 	 	Name: Michael Vellucci
	 	 	Title: SVP

 

     

     

    

 

	 	RB INTERNATIONAL FINANCE (USA) LLC, as the Departing Bank
	 	 	 
	 	By: 	/s/ Astrid Wilke
	 	 	Name: Astrid Wilke
	 	 	Title: Group Vice President
	 	 	 
	 	By: 	/s/ Tracey Duffy
	 	 	Name: Tracey Duffy
	 	 	Title: Vice President

 

     

     

    

  

	ACKNOWLEDGED AND AGREED:	 
	 	 
	EMPIRE RESOURCES PACIFIC, LTD.	 
	 	 	 
	 	 	 
	By: 	/s/ Sandra R. Kahn	 
	 	Name: Sandra R. Kahn	 
	 	Title: Vice President 	 

 

     

     

    

 

Annex I to Second Amendment

to Amended and Restated Credit Agreement

 

SCHEDULE A

TO

EMPIRE RESOURCES, INC.

AMENDED AND RESTATED

CREDIT AGREEMENT

 

Commitments

 

	Banks	 	Commitment	 	 	Revolving Loan Commitment

 Percentage	 
	Coöperatieve Rabobank U.A., New York Branch	 	$	45,000,000	 	 	 	27.6924	%
	BNP Paribas	 	$	39,000,000	 	 	 	24.0000	%
	Société Générale S.A.	 	$	24,000,000	 	 	 	14.7692	%
	ABN AMRO Capital USA LLC	 	$	37,000,000	 	 	 	22.7692	%
	Brown Brothers Harriman & Co.	 	$	17,500,000	 	 	 	10.7692	%
	Total	 	$	162,500,000.00	 	 	 	100.0000	%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}]]