Document:

AMENDMENT NO. 2 TO
THE
FIRST SUPPLEMENTAL INDENTURE AND SECURITY AGREEMENT 

        THIS
AMENDMENT NO. 2, dated as of January 12, 2009 (this “Second Amendment”),
between COEUR D’ALENE MINES CORPORATION, an Idaho corporation, as issuer (the
“Company”) and THE BANK OF NEW YORK MELLON, a banking corporation duly
organized under the laws of the State of New York, as trustee (the
“Trustee”). 

RECITALS 

        WHEREAS,
this Second Amendment is supplemental to the indenture dated as of October 20, 2008 (the
“Original Indenture”), by and between the Company and the Trustee, as
supplemented by the First Supplemental Indenture and Security Agreement dated as of
October 20, 2008 by and among the Company, Coeur Rochester, Inc. and the Trustee (as
amended by Amendment No. 1 to the First Supplemental Indenture, dated as of December 10,
2008, the “Existing First Supplemental Indenture” and, as further amended
by this Second Amendment, the “Amended First Supplemental Indenture”); 

        WHEREAS,
the Company duly authorized the creation of an issue of its Senior Secured Floating Rate
Convertible Notes due 2012 (the “Notes”), having the terms, tenor, amount
and other provisions set forth in the Indenture, as supplemented by the First Supplemental
Indenture; 

        WHEREAS,
the Company issued $50,000,000 aggregate principal amount of the Notes on October 20, 2008
(the “Outstanding Notes”); and 

        WHEREAS,
the Company and the Holders of the Outstanding Notes have agreed to amend the terms of the
Notes as set forth herein and the Holders of the Outstanding Notes have consented to the
terms of this Second Amendment. 

        NOW,
THEREFORE, the parties hereto agree as follows: 

        Section
1.01     Scope of Second Amendment. This Second Amendment shall be applicable only with
respect to, and govern only the terms of, the Notes issued pursuant to the Amended First
Supplemental Indenture. 

        Section
1.02     Definitions. All capitalized terms used but not otherwise defined herein shall have
the meaning set forth in the Indenture, as modified by the Amended First Supplemental
Indenture. 

        Section
1.03     Amendments. 

            (a)                 The
third and fourth sentences of the first paragraph of Section 2.04(c) of the
          Existing First Supplemental Indenture are hereby deleted and replaced with the
          following:  

	 	
“Interest
on the Notes will accrue at an annual rate equal to the Three-Month LIBOR Rate plus
7.50%, from the applicable Issue Date until the principal thereof is paid or made
available for payment; provided, however, that in no event will the annual
rate be less than 9.00% or more than 12.00% (for the avoidance of doubt, if the annual
rate computed is higher than 12.00%, the interest rate shall be 12.00%, and if lower than
9.00%, it shall be 9.00%); provided, further, that the interest rate shall
be fixed at 12.00% for all periods prior to July 15, 2009. The Three-Month LIBOR Rate
will be reset quarterly on each interest payment date (each of these dates is referred to
as an “Interest Reset Date”), beginning on July 15, 2009.” 

            (b)                 The
first sentence of the second paragraph of Section 2.04(c) of the Existing           First
Supplemental Indenture is hereby deleted and replaced with the following,           which
shall be effective for all Interest Payment Dates, including the Interest
          Payment Date on January 15, 2009:  

	 	
In
the event that the Company elects to pay interest in the Company’s Common Stock,
such Common Stock will be valued at 95% of the VWAP per share for the five Trading Days
immediately preceding the first Trading Day prior to the Interest Payment Date or
Conversion Date, as applicable (the “Interest Payment Common Stock Price”);
provided, however, that if as of any applicable Interest Payment Date or
Conversion Date, as applicable, the Interest Payment Common Stock Price is less than the
par value per share of Common Stock (the “Pre-Adjustment Interest Payment
Common Stock Price”), the Interest Payment Common Stock Price with respect to
the payment of interest in shares of Common Stock on such Interest Payment Date or
Conversion Date, as applicable, shall be adjusted to equal the par value of the Common
Stock then in effect and on such Interest Payment Date or Conversion Date, as applicable,
the Company shall pay each Holder an amount in cash equal to (i) the difference between
(A) the number of shares of Common Stock that would have been issuable to such Holder on
such date at the Pre-Adjustment Interest Payment Common Stock Price and (B) the number of
shares of Common Stock issuable on such date at the then applicable par value of the
Common Stock multiplied by (ii) the Interest Payment Common Stock Price with respect to
such Interest Payment Date or Conversion Date, as applicable. 

            (c)                 The
fourth paragraph of Section 2.04(c) of the Existing First Supplemental
          Indenture is hereby deleted and replaced with the following:  

	 	
Notwithstanding
anything to the contrary in this Section 2.04(c), if as of any applicable
Conversion Date, the Conversion Price is less than the par value per share of Common
Stock (the “Pre-Adjustment Conversion Price”), the Conversion Price with
respect to the Additional Payment Upon Conversion payable on such Conversion Date shall
be adjusted to equal the par value of the Common Stock then in effect and, on such
Conversion Date, the Company shall pay each applicable Holder an amount in cash equal to
(i) the difference between (A) the number of shares of Common Stock that would have been
issuable to such Holder on such date at the Pre-Adjustment Conversion Price and (B) the
number of shares of Common Stock issuable on such date at the then applicable par value
of the Common Stock multiplied by (ii) the VWAP per share for the five Trading Days
immediately preceding the first Trading Day prior to the applicable Conversion Date. 

2 

            (d)       Exhibit
A to the Existing First Supplemental Indenture is hereby deleted           and
replaced with Exhibit A attached hereto.  

        Section
1.04.     Governing Law. This Second Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York. 

        Section
1.05.    Notices.  Any notice or communication shall be in
accordance with Section 10.02 of the Indenture.  

        Section
1.06.    Multiple Originals.  The parties may sign any number
of copies of this Second Amendment.  Each signed copy shall be an original, but all of
them together represent the same agreement.  One signed copy is enough to prove this
Second Amendment. 

        Section
1.07.     Trustee’s Disclaimer. Neither the Trustee nor the Collateral Agent shall
be responsible for the validity or sufficiency of this Second Amendment, nor for the
recitals contained herein. 

[Signature page
follows.] 

3 

        IN
WITNESS WHEREOF, the parties have caused this Amendment No. 2 to the Existing First
Supplemental Indenture to be duly executed as of the date first written above. 

		COEUR D’ALENE MINES CORPORATION,
		as Issuer
	

 	By:  /s/ Mitchell J. Krebs
		        Name:  Mitchell J. Krebs
		        Title:  Chief Financial Officer

[Signature Page to
Second Supplemental Indenture] 

		THE BANK OF NEW YORK MELLON,
		as Trustee and Collateral Agent
	

 	By:  /s/ Catherine F. Donohue
		        Name:  Catherine F. Donohue
		        Title:  Vice President

[Signature Page to
Second Supplemental Indenture] 

EXHIBIT A 

[FORM OF FACE OF NOTE] 

[Global Notes Legend] 

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

        TRANSFERS
OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES
OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 

No.______ 

Senior Secured Floating
Rate Convertible Notes due 2012 

CUSIP No.: [________] 
ISIN: [____________] 

        COEUR
D’ALENE MINES CORPORATION, AN IDAHO CORPORATION, PROMISES TO PAY TO [CEDE &
CO.]1, OR REGISTERED ASSIGNS, THE PRINCIPAL SUM OF [______] MILLION DOLLARS
($______) [OR SUCH LESSER AMOUNT AS IS INDICATED IN SCHEDULE I ATTACHED
HERETO]2, ON OCTOBER 15, 2012, AND TO PAY INTEREST THEREON FROM
[____________] , OR FROM THE MOST RECENT INTEREST PAYMENT DATE TO WHICH INTEREST HAS BEEN
PAID OR DULY PROVIDED FOR, QUARTERLY ON JANUARY 15, APRIL 15, JULY 15 AND OCTOBER 15 OF
EACH YEAR, COMMENCING [____________]3 15, 2009, AT AN ANNUAL RATE EQUAL TO
THE THREE-MONTH LIBOR RATE PLUS 7.50%, FROM [___________]4 UNTIL THE
PRINCIPAL THEREOF IS PAID OR MADE AVAILABLE FOR PAYMENT; PROVIDED, HOWEVER,
THAT IN NO EVENT WILL THE ANNUAL RATE BE LESS THAN 9.00% OR MORE THAN 12.00%;
PROVIDED, FURTHER, THAT THE INTEREST RATE SHALL BE FIXED AT 12.00% UNTIL THE
INTEREST RATE IS RESET ON JULY 15, 2009. THE THREE-MONTH LIBOR RATE WILL BE RESET
QUARTERLY ON EACH INTEREST PAYMENT DATE (EACH OF THESE DATES IS REFERRED TO AS AN
“INTEREST RESET DATE”), BEGINNING ON [____________]5 15,
2009, UNTIL THE PRINCIPAL HEREOF IS PAID OR MADE AVAILABLE FOR PAYMENT OR THE NOTE IS
CONVERTED IN ACCORDANCE WITH THE INDENTURE (AS DEFINED ON THE REVERSE HEREOF). THE
INTEREST RATE FOR ALL INTEREST PERIODS PRIOR TO JULY 15, 2009 SHALL BE 12.00%. THE
INTEREST SO PAYABLE, AND PUNCTUALLY PAID OR DULY PROVIDED FOR, ON ANY INTEREST PAYMENT
DATE WILL, AS PROVIDED IN THE INDENTURE, BE PAID TO THE PERSON IN WHOSE NAME THIS NOTE (OR
ONE OR MORE PREDECESSOR NOTES) IS REGISTERED AT 5:00 P.M., NEW YORK TIME, ON THE REGULAR
RECORD DATE FOR SUCH INTEREST, WHICH SHALL BE JANUARY 1, APRIL 1, JULY 1 OR OCTOBER 1
(WHETHER OR NOT A BUSINESS DAY), AS THE CASE MAY BE, NEXT PRECEDING SUCH INTEREST PAYMENT
DATE. ANY SUCH INTEREST NOT SO PUNCTUALLY PAID OR DULY PROVIDED FOR WILL FORTHWITH CEASE
TO BE PAYABLE TO THE HOLDER ON SUCH REGULAR RECORD DATE AND MAY EITHER BE PAID TO THE
PERSON IN WHOSE NAME THIS NOTE (OR ONE OR MORE PREDECESSOR NOTES) IS REGISTERED AT 5:00
P.M., NEW YORK TIME, ON A SPECIAL RECORD DATE FOR THE PAYMENT OF SUCH DEFAULTED INTEREST
TO BE FIXED BY THE TRUSTEE, NOTICE WHEREOF SHALL BE GIVEN TO HOLDERS NOT MORE THAN 15 DAYS
PRIOR TO SUCH SPECIAL RECORD DATE, OR BE PAID AT ANY TIME IN ANY OTHER LAWFUL MANNER NOT
INCONSISTENT WITH THE REQUIREMENTS OF ANY SECURITIES EXCHANGE ON WHICH THE NOTES MAY BE
LISTED, AND UPON SUCH NOTICE AS MAY BE REQUIRED BY SUCH EXCHANGE, ALL AS MORE FULLY
PROVIDED IN THE INDENTURE. 

     1    
          Use bracketed language only if Global Note. 
2    
          Use bracketed language only if Global Note. 
3    
          The first Interest Payment Date after the Issue Date. 
4    
          The applicable Issue Date. 
5    
          The first Interest Payment Date after the Issue Date. 

A-1 

        Interest
on the Notes will be calculated on the basis of a 360-day period consisting of twelve
30-day months. If a payment date is not a Business Day, payment will be made on the next
succeeding Business Day, and no additional interest will accrue in respect of such payment
by virtue of the payment being made on such later date. 

        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. 

        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 said
State. 

        The
holder hereof takes this Note subject to the terms and conditions of the Indenture. 

        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. 

Dated: 

		COEUR D’ALENE MINES CORPORATION,
	
 	By:________________________________
		      Name:
		      Title:
	
 	By:________________________________
		      Name:
		      Title:

TRUSTEE’S CERTIFICATE OF
 
  AUTHENTICATION  

THE BANK OF NEW YORK MELLON, 
  as
Trustee, certifies that this is one of the 
  Notes referred to in the
Indenture.  

By:_________________________________
      Authorized Signatory 

[FORM OF REVERSE SIDE
OF NOTE] 

Senior Secured Floating
Rate Convertible Notes due 2012 

        COEUR
D’ALENE MINES CORPORATION, an Idaho corporation (such corporation, and its successors
and assigns under the Indenture hereinafter referred to, being herein called the
“Company”), issued these Notes under an indenture dated as of October 20,
2008 (the “Original Indenture”), by and between the Company and The Bank
of New York Mellon, as Trustee, as supplemented by the first supplemental indenture and
security agreement dated as of October 20, 2008 (as amended by Amendment No. 1 and
Amendment No. 2 thereto, the “Amended First Supplemental Indenture”),
among the Company, Coeur Rochester, Inc. and The Bank of New York Mellon, as Trustee and
Collateral Agent, to which reference is hereby made for a statement of the respective
rights, obligations, duties and immunities thereunder of the Trustee, the Company and the
Holders and of the terms upon which the Notes are, and are to be, authorized and
delivered. The Original Indenture, as supplemented by the Amended First Supplemental
Indenture, is referred to herein as the “Indenture”. All terms used in
this note which are defined in the Indenture shall have the meaning assigned to them in
the Indenture. In the event of any inconsistency between the terms of the Note and the
terms of the Indenture, the terms of the Indenture shall control. 

	1.  	Further
Provisions Relating to Interest

        In
certain circumstances, liquidated damages may be payable as provided in Section
6.01 of the Amended First Supplemental Indenture. Any such liquidated damages shall be
payable in the same manner and on the same dates as the stated interest payable on these
Notes. 

	2.  	Method
of Payment. 

        Subject
to the limitations set forth in Section 2.04 of the Amended First Supplemental
Indenture, the Company will pay interest on the Notes in cash, or at the option of the
Company, in Common Stock or in cash and Common Stock, to the Persons who are registered
Holders of Notes at 5:00 p.m., New York time, on the January 1, April 1, July 1 and
October 1 next preceding the Interest Payment Date even if Notes are canceled after the
record date and on or before the Interest Payment Date, except as otherwise provided in
the Indenture. Holders must surrender Notes to a Paying Agent to collect principal
payments. The Company will pay principal and interest in money of the United States of
America that at the time of payment is legal tender for payment of public and private
debts. 

        Subject
to the limitations set forth in Section 10.02 of the Amended First Supplemental
Indenture, if any shares of Common Stock are to be issued on an Interest Payment Date,
then the Company shall on the applicable Interest Payment Date, (X) provided that the
Common Stock Transfer Agent is participating in the DTC Fast Automated Securities Transfer
Program, credit such aggregate number of shares of Common Stock to which the Holder shall
be entitled to the Holder’s or its designee’s balance account with DTC through
its Deposit Withdrawal Agent Commission system, or (Y) if the Common Stock Transfer Agent
is not participating in the DTC Fast Automated Securities Transfer Program, issue and
deliver to such Holder, a certificate, registered in the name of the Holder or its
designee, for the number of shares of Common Stock to which the Holder shall be entitled. 

A-3 

        If
any fractional share of Common Stock otherwise would be issuable as a result of the
issuance of Common Stock to pay interest due on the Notes, the Company shall calculate and
pay to the Holder of Notes a cash adjustment in lieu of such fractional share at a rate
equal to the VWAP per share for the five Trading Days immediately preceding the Trading
Day prior to the Interest Payment Date. 

        The
Company shall pay cash interest, if any, on: 

        (i)                 any
Global Notes by wire transfer of immediately available funds to the account           of
the Depositary or its nominee;  

        (ii)                 any
Notes in certificated form by wire transfer in immediately available funds           in
accordance with written instructions of the Holder duly delivered to the
          Trustee at least five Business Days prior to the relevant Interest Payment
Date.  

	3.  	Paying
Agent, Registrar, Conversion Agent and Calculation Agent

        Initially,
The Bank of New York Mellon, a banking corporation duly organized under the laws of the
State of New York (the “Trustee”), will act as Paying Agent, Registrar,
Conversion Agent, Collateral Agent and Calculation Agent. The Company may appoint and
change any Paying Agent, Registrar or co-registrar, Conversion Agent, Collateral Agent or
Calculation Agent without notice. The Company or any of its domestically incorporated
wholly owned Subsidiaries may act as Paying Agent, Registrar or co-registrar. 

	4.  	Sinking
Fund

        The
Notes are not subject to any sinking fund. 

	5.  	Repurchase
of Notes at the Option of the Company

        The
Notes will be subject to redemption at the option of the Company on any date prior to the
maturity date, in whole or from time to time in part, in $1,000 increments
(provided that any remaining principal amount thereof shall be at least the minimum
authorized denomination thereof), on written notice given to the Holders thereof not less
than 30 days nor more than 90 days prior to the date fixed for redemption in such notice
(the “Redemption Date”), at a redemption price equal to the greater of
(i) 100% of the principal amount of such Notes to be redeemed and (ii) as determined by
the Quotation Agent and delivered to the Trustee in writing, the sum of the present values
of the remaining scheduled payments of principal and interest thereon due on any date
after the Redemption Date (excluding the portion of interest that will be accrued and
unpaid to and including the Redemption Date) discounted from their scheduled date of
payment to the Redemption Date (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate plus 50 basis points (such greater amount is referred to
herein as the “Redemption Price”), plus, in either the case of clause (i)
or clause (ii), accrued and unpaid interest, if any, thereon to the Redemption Date. 

A-4 

        The
Company shall not be required to make mandatory redemption or sinking fund payments with
respect to the Notes. 

	6.  	Conversion

        Subject
to the provisions of the Indenture, the Holder hereof has the right, at its option prior
to 5:00 p.m. (New York time) on the Trading Day immediately preceding the Maturity Date,
to convert any Notes or portion thereof that is $1,000 or multiples thereof at a
Conversion Rate specified in the Indenture. The initial Conversion Rate shall be [____]
shares for each $1,000 principal amount of Notes. If a Holder elects to voluntarily
convert all or any portion of such Holder’s Notes at any time prior to the Maturity
Date in accordance with the provisions of Section 10.01 of the Amended First
Supplemental Indenture, such Holder will receive the Additional Payment Upon
Conversion in shares of Common Stock. The shares of Common Stock will be valued at the
Conversion Price. 

        If
any fractional share of Common Stock otherwise would be issuable as a result of the
issuance of Common Stock to upon conversion of the Notes, the Company shall calculate and
pay to the Holder of Notes a cash adjustment in lieu of such fractional share at a rate
equal to the VWAP per share for the five Trading Days immediately preceding the Trading
Day prior to the applicable Conversion Date. No adjustment shall be made for dividends or
any shares issued upon conversion of such Note except as provided in the Indenture. 

	7.  	Denominations,
Transfer, Exchange

        The
Notes are in registered form without coupons in denominations of $1,000 and whole
multiples of $1,000. A Holder may transfer or exchange Notes in accordance with the
Indenture. Upon any transfer or exchange, the Registrar and the Trustee may require a
Holder, among other things, to furnish appropriate endorsements or transfer documents and
to pay any taxes required by law or permitted by the Indenture. 

	8.  	Persons
Deemed Owners

        The
registered Holder of this Note may be treated as the owner of it for all purposes. 

	9.  	Unclaimed
Funds

        Subject
to any applicable abandoned property law, the Trustee and the Paying Agent shall pay to
the Company upon written request any money held by them for the payment of principal or
interest and any shares of Common Stock or other property due in respect of converted
Notes that remains unclaimed for two years, and, thereafter, Holders entitled to the money
and/or securities must look to the Company for payment as general creditors unless
applicable abandoned property law designates another Person. 

	10.  	Amendment,
Waiver

        Subject
to certain exceptions, the Indenture contains provisions permitting an amendment of the
Indenture or the Notes with the written consent of the Holders of at least a majority in
principal amount of the then outstanding Notes and the waiver of any Event of Default
(other than any continuing Event of Default in payment of interest or principal amount of
the Notes or in respect of provisions that cannot be amended without the written consent
of each Holder affected) or noncompliance with any provision with the written consent of
the Holders of a majority in principal amount of the then outstanding Notes. 

A-5 

        In
addition, the Indenture permits an amendment of the Indenture or the Notes without the
consent of any Holder under circumstances specified in the Indenture. The Indenture also
permits an amendment of the Indenture or the Notes only with the consent of any Holder
affected thereby under circumstances specified in the Indenture. 

	11.  	Defaults
and Remedies

        Except
as specified in the Indenture, if an Event of Default occurs and is continuing, the
Trustee or the Holders of at least 25% in principal amount of the outstanding Notes may
declare the principal of and accrued but unpaid interest on all the Notes to be due and
payable. 

        No
reference herein to the Indenture and no provision of this Note or of the Indenture shall
impair, as among the Company and the Holder of the Notes, the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on this Note at
the place, at the respective times, at the rate and in the coin or currency herein and in
the Indenture prescribed. 

	12.  	Trustee
Dealings with the Company

        Subject
to certain limitations imposed by the TIA, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes and may
otherwise deal with the Company or its Affiliates with the same rights it would have if it
were not Trustee. 

	13.  	No
Recourse Against Others

        A
director, officer, employee, incorporator, stockholder or partner, as such, of the Company
shall not have any liability for any obligations of the Company under the Notes or the
Indenture or for any claim based on, in respect of or by reason of such obligations or
their creation. By accepting a Note, each Holder shall waive and release all such
liability. The waiver and release shall be part of the consideration for the issue of the
Notes. 

	14.  	Authentication

        This
Note shall not be valid until an authorized signatory of the Trustee (or an authenticating
agent) manually signs the certificate of authentication on the other side of this Note. 

A-6 

	15.  	Abbreviations

        Customary
abbreviations may be used in the name of a Holder or an assignee, such as TEN COM
(=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with
rights of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A
(=Uniform Gift to Minors Act). 

	16.  	CUSIP
and ISIN Numbers

        Pursuant
to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP and ISIN numbers to be printed on the Notes and
has directed the Trustee to use CUSIP and ISIN numbers in notices of repurchase as a
convenience to Holders. No representation is made as to the accuracy of such numbers
either as printed on the Notes or as contained in any notice of repurchase and reliance
may be placed only on the other identification numbers placed thereon. 

        The
Company will furnish to any Holder upon written request and without charge to the Holder a
copy of the Indenture which has in it the text of this Note. 

A-7 

CONVERSION NOTICE 

	TO:  	COEUR
D’ALENE MINES CORPORATION          
THE BANK OF NEW YORK MELLON, as Conversion Agent

        The
undersigned registered owner of this Note hereby irrevocably exercises the option to
convert this Note, or the portion thereof (which is $1,000 or a multiple thereof) below
designated in accordance with the terms of the Indenture referred to in this Note, and
directs that the shares of Common Stock, cash or a combination of cash and shares of
Common Stock deliverable or payable upon such conversion and any Notes representing any
unconverted principal amount hereof, be issued and delivered to the registered Holder
hereof unless a different name has been indicated below. Capitalized terms used herein but
not defined shall have the meanings ascribed to such terms in the Indenture. If shares or
any portion of this Note not converted are to be issued in the name of a person other than
the undersigned, the undersigned will provide the appropriate information below and pay
all transfer taxes payable with respect thereto. Any amount required to be paid by the
undersigned on account of interest accompanies this Note. 

Dated:______________________ 

	 	
______________________________

	 	
______________________________
                                                     
Signature(s)

	 	
Signature(s)
must be guaranteed by an “eligible guarantor
                                                     institution” meeting the
requirements of the 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 Registrar in
addition to, or in                                                      substitution for,
STAMP, all in accordance with the
                                                     Securities Exchange Act of 1934, as
amended.

	 	
______________________________
                                                     
Signature Guarantee

A-8 

        Fill
in the registration of shares of Common Stock, if any, if to be issued, and Notes if to be
delivered, and the person to whom cash, if any, is to be made, if to be made, other than
to and in the name of the registered Holder: 

Please print name and address 

______________________________
(Name)  

______________________________ 
(DTC
Participant Number if applicable)  

______________________________
(Street
Address) 

______________________________
(City,
State and Zip Code) 

Principal amount to be converted 
(if
less than all): 

$______________________________ 

Social Security or Other
Taxpayer
Identification Number: 

______________________________ 

NOTICE: The signature on this Conversion
Notice must correspond with the name as written upon the face of the Notes in every
particular without alteration or enlargement or any change whatever. 

A-9 

ASSIGNMENT 

        For
value received ________________________________________ hereby sell(s) assign(s) and
transfer(s) unto ___________________________________ (Please insert social security or
other Taxpayer Identification Number of assignee) the within Notes, and hereby irrevocably
constitutes and appoints ______________________________________ attorney to transfer said
Notes on the books of the Company, with full power of substitution in the premises. 

Dated:______________________ 

	 	
______________________________

	 	
______________________________
                                                     
Signature(s)

	 	
Signature(s)
must be guaranteed by an “eligible guarantor
                                                     institution” meeting the
requirements of the 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 Registrar in
addition to, or in                                                      substitution for,
STAMP, all in accordance with the
                                                     Securities Exchange Act of 1934, as
amended.

	 	
______________________________
                                                     
Signature Guarantee

NOTICE: The signature on this
Assignment must correspond with the name as written upon the face of the Notes in every
particular without alteration or enlargement or any change whatever. 

A-10 

Schedule I 

Senior Secured Floating
Rate Convertible Notes due 2012 

	

	Date
	Principal Amount
	Notation Explaining
Amount
Recorded
	Authorized Signature of

Trustee or Custodianex4-1.htm

    Exhibit
4.1

    

     

    WARRANT
TO PURCHASE COMMON STOCK

     

    THE
SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION
STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR
SUCH LAWS.  THIS INSTRUMENT IS ISSUED SUBJECT TO THE RESTRICTIONS ON
TRANSFER AND OTHER PROVISIONS OF A SECURITIES PURCHASE AGREEMENT BETWEEN THE
ISSUER OF THESE SECURITIES AND THE INVESTOR REFERRED TO THEREIN, A COPY OF WHICH
IS ON FILE WITH THE ISSUER.  THE SECURITIES REPRESENTED BY THIS
INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH
SAID AGREEMENT.  ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH
SAID AGREEMENT WILL BE VOID.

     

    

     

    WARRANT

    to
purchase

    143,139
Shares

    of
Common Stock

    of
Peapack-Gladstone Financial Corporation

    

     

    Issue
Date: January 9, 2009

     

    1.           Definitions. Unless
the context otherwise requires, when used herein the following terms shall have
the meanings indicated.

     

    “Affiliate” has the meaning
ascribed to it in the Purchase Agreement.

     

    “Appraisal Procedure” means a
procedure whereby two independent appraisers, one chosen by the Company and one
by the Original Warrantholder, shall mutually agree upon the determinations then
the subject of appraisal.  Each party shall deliver a notice to the
other appointing its appraiser within 15 days after the Appraisal Procedure is
invoked.  If within 30 days after appointment of the two appraisers
they are unable to agree upon the amount in question, a third independent
appraiser shall be chosen within 10 days thereafter by the mutual consent of
such first two appraisers.  The decision of the third appraiser so
appointed and chosen shall be given within 30 days after the selection of such
third appraiser.  If three appraisers shall be appointed and the
determination of one appraiser is disparate from the middle determination by
more than twice the amount by which the other determination is disparate from
the middle determination, then the determination of such appraiser shall be
excluded, the remaining two determinations shall be averaged and such average
shall be binding and conclusive upon the Company and the Original Warrantholder;
otherwise, the average of all three determinations

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    shall be
binding upon the Company and the Original Warrantholder.  The costs of
conducting any Appraisal Procedure shall be borne by the Company.

     

    “Board of Directors” means the
board of directors of the Company, including any duly authorized committee
thereof.

     

    “Business Combination” means a
merger, consolidation, statutory share exchange or similar transaction that
requires the approval of the Company’s stockholders.

     

    “business
day” means any day except
Saturday, Sunday and any day on which banking institutions in the State of
New York generally are authorized or required by
law or other governmental actions to close.

     

    “Capital Stock” means (A) with
respect to any Person that is a corporation or company, any and all shares,
interests, participations or other equivalents (however designated) of capital
or capital stock of such Person and (B) with respect to any Person that is not a
corporation or company, any and all partnership or other equity interests of
such Person.

     

    “Charter” means, with respect
to any Person, its certificate or articles of incorporation, articles of
association, or similar organizational document.

     

    “Common Stock” has the meaning
ascribed to it in the Purchase Agreement.

     

    “Company” means the Person
whose name, corporate or other organizational form and jurisdiction of
organization is set forth in Item 1 of Schedule A hereto.

     

    “conversion” has the meaning
set forth in Section 13(B).

     

    “convertible securities” has
the meaning set forth in Section 13(B).

     

    “CPP” has the meaning ascribed
to it in the Purchase Agreement.

     

    “Exchange Act” means the
Securities Exchange Act of 1934, as amended, or any successor statute, and the
rules and regulations promulgated thereunder.

     

    “Exercise Price” means the
amount set forth in Item 2 of Schedule A hereto.

     

    “Expiration Time” has the
meaning set forth in Section 3.

     

    “Fair Market Value” means,
with respect to any security or other property, the fair market value of such
security or other property as determined by the Board of Directors, acting in
good faith or, with respect to Section 14, as determined by the Original
Warrantholder acting in good faith.  For so long as the Original
Warrantholder holds this Warrant or any portion thereof, it may object in
writing to the Board of Director’s calculation of fair market value within 10
days of receipt of written notice thereof.  If the Original
Warrantholder and the Company are unable to agree on fair market value during
the 10-day period following the delivery of the Original Warrantholder’s
objection, the Appraisal Procedure may be invoked by either party
to

     

    
      
         

      

      
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    determine
Fair Market Value by delivering written notification thereof not later than the
30th
day after delivery of the Original Warrantholder’s objection.

     

    “Governmental Entities” has
the meaning ascribed to it in the Purchase Agreement.

     

    “Initial Number” has the
meaning set forth in Section 13(B).

     

    “Issue Date” means the date
set forth in Item 3 of Schedule A hereto.

     

    “Market Price” means, with respect to a particular security,
on any given day, the last reported sale price regular way or, in case no such
reported sale takes place on such day, the average of the last closing bid and
ask prices regular way, in either case on the principal national securities
exchange on which the applicable securities are listed or admitted to trading,
or if not listed or admitted to trading on any national securities exchange, the
average of the closing bid and ask prices as furnished by two members of the
Financial Industry Regulatory Authority, Inc. selected from time to time by the
Company for that purpose.  “Market Price” shall be determined without
reference to after hours or extended hours trading.  If such security
is not listed and traded in a manner that the quotations referred to above are
available for the period required hereunder, the Market Price per share of
Common Stock shall be deemed to be (i) in the event that any portion of the
Warrant is held by the Original Warrantholder, the fair market value per share
of such security as determined in good faith by the Original Warrantholder or
(ii) in all other circumstances, the fair market value per share of such
security as determined in good faith by the Board of Directors in reliance on an
opinion of a nationally recognized independent investment banking corporation
retained by the Company for this purpose and certified in a resolution to the
Warrantholder.  For the purposes of determining the Market
Price of the Common Stock on the “trading day” preceding, on or following the
occurrence of an event, (i) that trading day shall be deemed to commence
immediately after the regular scheduled closing time of trading on the New York
Stock Exchange or, if trading is closed at an earlier time, such earlier time
and (ii) that trading day shall end at the next regular scheduled closing time,
or if trading is closed at an earlier time, such earlier time (for the avoidance
of doubt, and as an example, if the Market Price is to be determined as of the
last trading day preceding a specified event and the closing time of trading on
a particular day is 4:00 p.m. and the specified event occurs at 5:00 p.m. on
that day, the Market Price would be determined by reference to such 4:00 p.m.
closing price).

     

    “Ordinary Cash Dividends”
means a regular quarterly cash dividend on shares of Common Stock out of surplus
or net profits legally available therefor (determined in accordance with
generally accepted accounting principles in effect from time to time), provided that Ordinary Cash
Dividends shall not include any cash dividends paid subsequent to the Issue Date
to the extent the aggregate per share dividends paid on the outstanding Common
Stock in any quarter exceed the amount set forth in Item 4 of Schedule A hereto,
as adjusted for any stock split, stock dividend, reverse stock split,
reclassification or similar transaction.

     

    “Original Warrantholder” means
the United States Department of the Treasury.  Any actions specified
to be taken by the Original Warrantholder hereunder may only be taken by such
Person and not by any other Warrantholder.

     

    
      
         

      

      
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    “Permitted Transactions” has
the meaning set forth in Section 13(B).

     

    “Person” has the meaning given
to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3)
and 14(d)(2) of the Exchange Act.

     

    “Per Share Fair Market Value”
has the meaning set forth in Section 13(C).

     

    “Preferred Shares” means the
perpetual preferred stock issued to the Original Warrantholder on the Issue Date
pursuant to the Purchase Agreement.

     

    “Pro Rata Repurchases” means
any purchase of shares of Common Stock by the Company or any Affiliate thereof
pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or
14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any
other offer available to substantially all holders of Common Stock, in the case
of both (A) or (B), whether for cash, shares of Capital Stock of the Company,
other securities of the Company, evidences of indebtedness of the Company or any
other Person or any other property (including, without limitation, shares of
Capital Stock, other securities or evidences of indebtedness of a subsidiary),
or any combination thereof, effected while this Warrant is
outstanding.  The “Effective Date” of a Pro Rata
Repurchase shall mean the date of acceptance of shares for purchase or exchange
by the Company under any tender or exchange offer which is a Pro Rata Repurchase
or the date of purchase with respect to any Pro Rata Repurchase that is not a
tender or exchange offer.

     

    “Purchase Agreement” means the
Securities Purchase Agreement – Standard Terms incorporated into the Letter
Agreement, dated as of the date set forth in Item 5 of Schedule A hereto, as
amended from time to time, between the Company and the United States Department
of the Treasury (the “Letter
Agreement”), including all annexes and schedules thereto.

     

    “Qualified Equity Offering”
has the meaning ascribed to it in the Purchase Agreement.

     

    “Regulatory Approvals” with
respect to the Warrantholder, means, to the extent applicable and required to
permit the Warrantholder to exercise this Warrant for shares of Common Stock and
to own such Common Stock without the Warrantholder being in violation of
applicable law, rule or regulation, the receipt of any necessary approvals and
authorizations of, filings and registrations with, notifications to, or
expiration or termination of any applicable waiting period under, the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules
and regulations thereunder.

     

    “SEC” means the U.S.
Securities and Exchange Commission.

     

    “Securities Act” means the
Securities Act of 1933, as amended, or any successor statute, and the rules and
regulations promulgated thereunder.

     

    “Shares” has the meaning set
forth in Section 2.

     

    “trading day” means (A) if
the shares of Common Stock are not traded on any national or regional securities
exchange or association or over-the-counter market,  a business day or
(B) if the shares of Common Stock are traded on any national or regional
securities exchange or

     

    
      
         

      

      
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    association
or over-the-counter market, a business day on which such relevant exchange or
quotation system is scheduled to be open for business and on which the shares
of  Common Stock (i) are not suspended from trading on any national or
regional securities exchange or association or over-the-counter market for any
period or periods aggregating one half hour or longer; and (ii) have traded at
least once on the national or regional securities exchange or association or
over-the-counter market that is the primary market for the trading of the shares
of Common Stock.

     

    “U.S. GAAP” means United
States generally accepted accounting principles.

     

    “Warrantholder” has the
meaning set forth in Section 2.

     

    “Warrant” means this Warrant,
issued pursuant to the Purchase Agreement.

     

    2.           Number of Shares; Exercise
Price.  This
certifies that, for value received, the United States Department of the Treasury
or its permitted assigns (the “Warrantholder”) is entitled,
upon the terms and subject to the conditions hereinafter set forth, to acquire
from the Company, in whole or in part, after the receipt of all applicable
Regulatory Approvals, if any, up to an aggregate of the number of fully paid and
nonassessable shares of Common Stock set forth in Item 6 of Schedule A hereto,
at a purchase price per share of Common Stock equal to the Exercise
Price.  The number of shares of Common Stock (the “Shares”) and the Exercise
Price are subject to adjustment as provided herein, and all references to
“Common Stock,” “Shares” and “Exercise Price” herein shall be deemed to include
any such adjustment or series of adjustments.

     

    3.           Exercise of Warrant;
Term.  Subject
to Section 2, to the extent permitted by applicable laws and regulations, the
right to purchase the Shares represented by this Warrant is exercisable, in
whole or in part by the Warrantholder, at any time or from time to time after
the execution and delivery of this Warrant by the Company on the date hereof,
but in no event later than 5:00 p.m., New York City time on the tenth
anniversary of the Issue Date (the “Expiration Time”), by (A) the
surrender of this Warrant and Notice of Exercise annexed hereto, duly completed
and executed on behalf of the Warrantholder, at the principal executive office
of the Company located at the address set forth in Item 7 of Schedule A
hereto (or such
other office or agency of the Company in the United States as it may designate
by notice in writing to the Warrantholder at the address of the Warrantholder
appearing on the books of the Company), and (B) payment of the Exercise Price
for the Shares thereby purchased:

     

    (i) by having the Company withhold,
from the shares of Common Stock that would otherwise be delivered to the
Warrantholder upon such exercise, shares of Common stock issuable upon exercise
of the Warrant equal in value to the aggregate Exercise Price as to which this
Warrant is so exercised based on the Market Price of the Common Stock on the
trading day on which this Warrant is exercised and the Notice of Exercise is
delivered to the Company pursuant to this Section 3, or

    

    (ii) with the consent of both the
Company and the Warrantholder, by tendering in cash, by certified or cashier’s
check payable to the order of the Company, or by wire transfer of immediately
available funds to an account designated by the Company.

    
      
         

      

      
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    If the Warrantholder does not exercise
this Warrant in its entirety, the Warrantholder will be entitled to receive from
the Company within a reasonable time, and in any event not exceeding three
business days, a new warrant in substantially identical form for the purchase of
that number of Shares equal to the difference between the number of Shares
subject to this Warrant and the number of Shares as to which this Warrant is so
exercised.  Notwithstanding anything in this Warrant to the contrary,
the Warrantholder hereby acknowledges and agrees that its exercise of this
Warrant for Shares is subject to the condition that the Warrantholder will have
first received any applicable Regulatory Approvals.

    

    4.           Issuance of Shares;
Authorization; Listing.  Certificates
for Shares issued upon exercise of this Warrant will be issued in such name or
names as the Warrantholder may designate and will be delivered to such named
Person or Persons within a reasonable time, not to exceed three business days
after the date on which this Warrant has been duly exercised in accordance with
the terms of this Warrant.  The Company hereby represents and warrants
that any Shares issued upon the exercise of this Warrant in accordance with the
provisions of Section 3 will be duly and validly authorized and issued, fully
paid and nonassessable and free from all taxes, liens and charges (other than
liens or charges created by the Warrantholder, income and franchise taxes
incurred in connection with the exercise of the Warrant or taxes in respect of
any transfer occurring contemporaneously therewith).  The Company
agrees that the Shares so issued will be deemed to have been issued to the
Warrantholder as of the close of business on the date on which this Warrant and
payment of the Exercise Price are delivered to the Company in accordance with
the terms of this Warrant, notwithstanding that the stock transfer books of the
Company may then be closed or certificates representing such Shares may not be
actually delivered on such date.  The Company will at all times
reserve and keep available, out of its authorized but unissued Common Stock,
solely for the purpose of providing for the exercise of this Warrant, the
aggregate number of shares of Common Stock then issuable upon exercise of this
Warrant at any time.  The Company will (A) procure, at its sole
expense, the listing of the Shares issuable upon exercise of this Warrant at any
time, subject to issuance or notice of issuance, on all principal stock
exchanges on which the Common Stock is then listed or traded and (B) maintain
such listings of such Shares at all times after issuance.  The Company
will use reasonable best efforts to ensure that the Shares may be issued without
violation of any applicable law or regulation or of any requirement of any
securities exchange on which the Shares are listed or traded.

     

    5.           No Fractional Shares or
Scrip.  No
fractional Shares or scrip representing fractional Shares shall be issued upon
any exercise of this Warrant.  In lieu of any fractional Share to
which the Warrantholder would otherwise be entitled, the Warrantholder shall be
entitled to receive a cash payment equal to the Market Price of the Common Stock
on the last trading day preceding the date of exercise less the pro-rated
Exercise Price for such fractional share.

     

    6.           No Rights as Stockholders;
Transfer Books.  This
Warrant does not entitle the Warrantholder to any voting rights or other rights
as a stockholder of the Company prior to the date of exercise
hereof.  The Company will at no time close its transfer books against
transfer of this Warrant in any manner which interferes with the timely exercise
of this Warrant.

     

    
      
         

      

      
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    7.           Charges, Taxes and
Expenses.  Issuance
of certificates for Shares to the Warrantholder upon the exercise of this
Warrant shall be made without charge to the Warrantholder for any issue or
transfer tax or other incidental expense in respect of the issuance of such
certificates, all of which taxes and expenses shall be paid by the
Company.

     

    8.           Transfer/Assignment.

     

    (A)           Subject
to compliance with clause (B) of this Section 8, this Warrant and all rights
hereunder are transferable, in whole or in part, upon the books of the Company
by the registered holder hereof in person or by duly authorized attorney, and a
new warrant shall be made and delivered by the Company, of the same tenor and
date as this Warrant but registered in the name of one or more transferees, upon
surrender of this Warrant, duly endorsed, to the office or agency of the Company
described in Section 3.  All expenses (other than stock transfer
taxes) and other charges payable in connection with the preparation, execution
and delivery of the new warrants pursuant to this Section 8 shall be paid by the
Company.

     

    (B)           The
transfer of the Warrant and the Shares issued upon exercise of the Warrant are
subject to the restrictions set forth in Section 4.4 of the Purchase
Agreement.  If and for so long as required by the Purchase Agreement,
this Warrant shall contain the legends as set forth in Sections 4.2(a) and
4.2(b) of the Purchase Agreement.

     

    9.           Exchange and Registry of
Warrant.  This
Warrant is exchangeable, upon the surrender hereof by the Warrantholder to the
Company, for a new warrant or warrants of like tenor and representing the right
to purchase the same aggregate number of Shares.  The Company shall
maintain a registry showing the name and address of the Warrantholder as the
registered holder of this Warrant.  This Warrant may be surrendered
for exchange or exercise in accordance with its terms, at the office of the
Company, and the Company shall be entitled to rely in all respects, prior to
written notice to the contrary, upon such registry.

     

    10.           Loss, Theft, Destruction or
Mutilation of Warrant.  Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant, and in the case of any such
loss, theft or destruction, upon receipt of a bond, indemnity or security
reasonably satisfactory to the Company, or, in the case of any such mutilation,
upon surrender and cancellation of this Warrant, the Company shall make and
deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new
Warrant of like tenor and representing the right to purchase the same aggregate
number of Shares as provided for in such lost, stolen, destroyed or mutilated
Warrant.

     

    11.           Saturdays, Sundays,
Holidays, etc.

     

     If
the last or appointed day for the taking of any action or the expiration of any
right required or granted herein shall not be a business day, then such action
may be taken or such right may be exercised on the next succeeding day that is a
business day.

     

    12.           Rule 144
Information.  The
Company covenants that it will use its reasonable best efforts to timely file
all reports and other documents required to be filed by it under the Securities
Act and the Exchange Act and the rules and regulations promulgated by the SEC
thereunder (or, if the Company is not required to file such reports, it will,
upon the request of any

     

    
      
         

      

      
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    Warrantholder,
make publicly available such information as necessary to permit sales pursuant
to Rule 144 under the Securities Act), and it will use reasonable best efforts
to take such further action as any Warrantholder may reasonably request, in each
case to the extent required from time to time to enable such holder to, if
permitted by the terms of this Warrant and the Purchase Agreement, sell this
Warrant without registration under the Securities Act within the limitation of
the exemptions provided by (A) Rule 144 under the Securities Act, as such rule
may be amended from time to time, or (B) any successor rule or regulation
hereafter adopted by the SEC.  Upon the written request of any
Warrantholder, the Company will deliver to such Warrantholder a written
statement that it has complied with such requirements.

     

    13.           Adjustments and Other
Rights.  The
Exercise Price and the number of Shares issuable upon exercise of this Warrant
shall be subject to adjustment from time to time as follows; provided, that if more than
one subsection of this Section 13 is applicable to a single event, the
subsection shall be applied that produces the largest adjustment and no single
event shall cause an adjustment under more than one subsection of this Section
13 so as to result in duplication:

     

    (A)           Stock Splits, Subdivisions,
Reclassifications or Combinations.  If
the Company shall (i) declare and pay a dividend or make a distribution on its
Common Stock in shares of Common Stock, (ii) subdivide or reclassify the
outstanding shares of Common Stock into a greater number of shares, or (iii)
combine or reclassify the outstanding shares of Common Stock into a smaller
number of shares, the number of Shares issuable upon exercise of this Warrant at
the time of the record date for such dividend or distribution or the effective
date of such subdivision, combination or reclassification shall be
proportionately adjusted so that the Warrantholder after such date shall be
entitled to purchase the number of shares of Common Stock which such holder
would have owned or been entitled to receive in respect of the shares of Common
Stock subject to this Warrant after such date had this Warrant been exercised
immediately prior to such date.  In such event, the Exercise Price in
effect at the time of the record date for such dividend or distribution or the
effective date of such subdivision, combination or reclassification shall be
adjusted to the number obtained by dividing (x) the product of (1) the number of
Shares issuable upon the exercise of this Warrant before such adjustment and (2)
the Exercise Price in effect immediately prior to the record or effective date,
as the case may be, for the dividend, distribution, subdivision, combination or
reclassification giving rise to this adjustment by (y) the new number of Shares
issuable upon exercise of the Warrant determined pursuant to the immediately
preceding sentence.

     

    (B)           Certain Issuances of Common
Shares or Convertible Securities.  Until
the earlier of (i) the date on which the Original Warrantholder no longer holds
this Warrant or any portion thereof and (ii) the third anniversary of the Issue
Date, if the Company shall issue shares of Common Stock (or rights or warrants
or other securities exercisable or convertible into or exchangeable
(collectively, a “conversion”) for shares of
Common Stock) (collectively, “convertible securities”)
(other than in Permitted Transactions (as defined below) or a transaction to
which subsection (A) of this Section 13 is applicable) without consideration or
at a consideration per share (or having a conversion price per share) that is
less than 90% of the Market Price on the last trading day preceding the date of
the agreement on pricing such shares (or such convertible securities) then, in
such event:

     

    
      
         

      

      
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    (A) the
number of Shares issuable upon the exercise of this Warrant immediately prior to
the date of the agreement on pricing of such shares (or of such convertible
securities) (the “Initial
Number”) shall be increased to the number obtained by multiplying the
Initial Number by a fraction (A) the numerator of which shall be the sum of (x)
the number of shares of Common Stock of the Company outstanding on such date and
(y) the number of additional shares of Common Stock issued (or into which
convertible securities may be exercised or convert) and (B) the denominator of
which shall be the sum of (I) the number of shares of Common Stock outstanding
on such date and (II) the number of shares of Common Stock which the aggregate
consideration receivable by the Company for the total number of shares of Common
Stock so issued (or into which convertible securities may be exercised or
convert) would purchase at the Market Price on the last trading day preceding
the date of the agreement on pricing such shares (or such convertible
securities); and

     

    (B) the
Exercise Price payable upon exercise of the Warrant shall be adjusted by
multiplying such Exercise Price in effect immediately prior to the date of the
agreement on pricing of such shares (or of such convertible securities) by a
fraction, the numerator of which shall be the number of shares of Common Stock
issuable upon exercise of this Warrant prior to such date and the denominator of
which shall be the number of shares of Common Stock issuable upon exercise of
this Warrant immediately after the adjustment described in clause (A)
above.

     

    For
purposes of the foregoing, the aggregate consideration receivable by the Company
in connection with the issuance of such shares of Common Stock or convertible
securities shall be deemed to be equal to the sum of the net offering price
(including the Fair Market Value of any non-cash consideration and after
deduction of any related expenses payable to third parties) of all such
securities plus the minimum aggregate amount, if any, payable upon exercise or
conversion of any such convertible securities into shares of Common Stock; and
“Permitted
Transactions” shall mean issuances (i) as consideration for or to fund
the acquisition of businesses and/or related assets, (ii) in connection with
employee benefit plans and compensation related arrangements in the ordinary
course and consistent with past practice approved by the Board of Directors,
(iii) in connection with a public or broadly marketed offering and sale of
Common Stock or convertible securities for cash conducted by the Company or its
affiliates pursuant to registration under the Securities Act or Rule 144A
thereunder on a basis consistent with capital raising transactions by comparable
financial institutions and (iv) in connection with the exercise of preemptive
rights on terms existing as of the Issue Date.  Any adjustment made
pursuant to this Section 13(B) shall become effective immediately upon the date
of such issuance.

     

    (C)           Other
Distributions.  In
case the Company shall fix a record date for the making of a distribution to all
holders of shares of its Common Stock of securities, evidences of indebtedness,
assets, cash, rights or warrants (excluding Ordinary Cash Dividends, dividends
of its Common Stock and other dividends or distributions referred to in Section
13(A)), in each such case, the Exercise Price in effect prior to such record
date shall be reduced immediately thereafter to the price determined by
multiplying the Exercise Price in effect immediately prior to the reduction by
the quotient of (x) the Market Price of the Common Stock on the last trading day
preceding the first date on which the Common Stock trades regular way on the
principal

     

    
      
         

      

      
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    national
securities exchange on which the Common Stock is listed or admitted to trading
without the right to receive such distribution, minus the amount of cash and/or
the Fair Market Value of the securities, evidences of indebtedness, assets,
rights or warrants to be so distributed in respect of one share of Common Stock
(such amount and/or Fair Market Value, the “Per Share Fair Market Value”)
divided by (y) such Market Price on such date specified in clause (x); such
adjustment shall be made successively whenever such a record date is
fixed.  In such event, the number of Shares issuable upon the exercise
of this Warrant shall be increased to the number obtained by dividing (x) the
product of (1) the number of Shares issuable upon the exercise of this Warrant
before such adjustment, and (2) the Exercise Price in effect immediately prior
to the distribution giving rise to this adjustment by (y) the new Exercise Price
determined in accordance with the immediately preceding sentence.  In
the case of adjustment for a cash dividend that is, or is coincident with, a
regular quarterly cash dividend, the Per Share Fair Market Value would be
reduced by the per share amount of the portion of the cash dividend that would
constitute an Ordinary Cash Dividend.  In the event that such
distribution is not so made, the Exercise Price and the number of Shares
issuable upon exercise of this Warrant then in effect shall be readjusted,
effective as of the date when the Board of Directors determines not to
distribute such shares, evidences of indebtedness, assets, rights, cash or
warrants, as the case may be, to the Exercise Price that would then be in effect
and the number of Shares that would then be issuable upon exercise of this
Warrant if such record date had not been fixed.

     

    (D)           Certain Repurchases of
Common Stock.  In
case the Company effects a Pro Rata Repurchase of Common Stock, then the
Exercise Price shall be reduced to the price determined by multiplying the
Exercise Price in effect immediately prior to the Effective Date of such Pro
Rata Repurchase by a fraction of which the numerator shall be (i) the product of
(x) the number of shares of Common Stock outstanding immediately before such Pro
Rata Repurchase and (y) the Market Price of a share of Common Stock on the
trading day immediately preceding the first public announcement by the Company
or any of its Affiliates of the intent to effect such Pro Rata Repurchase, minus
(ii) the aggregate purchase price of the Pro Rata Repurchase, and of which the
denominator shall be the product of (i) the number of shares of Common Stock
outstanding immediately prior to such Pro Rata Repurchase minus the number of
shares of Common Stock so repurchased and (ii) the Market Price per share of
Common Stock on the trading day immediately preceding the first public
announcement by the Company or any of its Affiliates of the intent to effect
such Pro Rata Repurchase.  In such event, the number of shares of
Common Stock issuable upon the exercise of this Warrant shall be increased to
the number obtained by dividing (x) the product of (1) the number of Shares
issuable upon the exercise of this Warrant before such adjustment, and (2) the
Exercise Price in effect immediately prior to the Pro Rata Repurchase giving
rise to this adjustment by (y) the new Exercise Price determined in accordance
with the immediately preceding sentence.  For the avoidance of doubt,
no increase to the Exercise Price or decrease in the number of Shares issuable
upon exercise of this Warrant shall be made pursuant to this Section
13(D).

     

    (E)           Business
Combinations.  In
case of any Business Combination or reclassification of Common Stock (other than
a reclassification of Common Stock referred to in Section 13(A)), the
Warrantholder’s right to receive Shares upon exercise of this Warrant shall be
converted into the right to exercise this Warrant to acquire the number of
shares of stock or other securities or property (including cash) which the
Common Stock issuable (at the time of such Business Combination or
reclassification) upon exercise of this Warrant immediately prior to
such

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Business
Combination or reclassification would have been entitled to receive upon
consummation of such Business Combination or reclassification; and in any such
case, if necessary, the provisions set forth herein with respect to the rights
and interests thereafter of the Warrantholder shall be appropriately adjusted so
as to be applicable, as nearly as may reasonably be, to the Warrantholder’s
right to exercise this Warrant in exchange for any shares of stock or other
securities or property pursuant to this paragraph.  In determining the
kind and amount of stock, securities or the property receivable upon exercise of
this Warrant following the consummation of such Business Combination, if the
holders of Common Stock have the right to elect the kind or amount of
consideration receivable upon consummation of such Business Combination, then
the consideration that the Warrantholder shall be entitled to receive upon
exercise shall be deemed to be the types and amounts of consideration received
by the majority of all holders of the shares of common stock that affirmatively
make an election (or of all such holders if none make an election).

     

    (F)           Rounding of Calculations;
Minimum Adjustments.  All
calculations under this Section 13 shall be made to the nearest one-tenth
(1/10th) of a cent or to the nearest one-hundredth (1/100th) of a share, as the
case may be.  Any provision of this Section 13 to the contrary
notwithstanding, no adjustment in the Exercise Price or the number of Shares
into which this Warrant is exercisable shall be made if the amount of such
adjustment would be less than $0.01 or one-tenth (1/10th) of a share of Common
Stock, but any such amount shall be carried forward and an adjustment with
respect thereto shall be made at the time of and together with any subsequent
adjustment which, together with such amount and any other amount or amounts so
carried forward, shall aggregate $0.01 or 1/10th of a share of Common Stock, or
more.

     

    (G)           Timing of Issuance of
Additional Common Stock Upon Certain Adjustments.  In
any case in which the provisions of this Section 13 shall require that an
adjustment shall become effective immediately after a record date for an event,
the Company may defer until the occurrence of such event (i) issuing to the
Warrantholder of this Warrant exercised after such record date and before the
occurrence of such event the additional shares of Common Stock issuable upon
such exercise by reason of the adjustment required by such event over and above
the shares of Common Stock issuable upon such exercise before giving effect to
such adjustment and (ii) paying to such Warrantholder any amount of cash in lieu
of a fractional share of Common Stock; provided, however, that the Company
upon request shall deliver to such Warrantholder a due bill or other appropriate
instrument evidencing such Warrantholder’s right to receive such additional
shares, and such cash, upon the occurrence of the event requiring such
adjustment.

     

    (H)           Completion of Qualified
Equity Offering.  In the event the Company (or any successor by
Business Combination) completes one or more Qualified Equity Offerings on or
prior to December 31, 2009 that result in the Company (or any such successor )
receiving aggregate gross proceeds of not less than 100% of the aggregate
liquidation preference of the Preferred Shares (and any preferred stock
issued by any such successor to the Original Warrantholder under the CPP), the
number of shares of Common Stock underlying the portion of this Warrant then
held by the Original Warrantholder shall be thereafter reduced by a number of
shares of Common Stock equal to the product of (i) 0.5 and (ii) the number of
shares underlying

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    the
Warrant on the Issue Date (adjusted to take into account all other theretofore
made adjustments pursuant to this Section 13).

     

    (I)           Other
Events.  For
so long as the Original Warrantholder holds this Warrant or any portion thereof,
if any event occurs as to which the provisions of this Section 13 are not
strictly applicable or, if strictly applicable, would not, in the good faith
judgment of the Board of Directors of the Company, fairly and adequately protect
the purchase rights of the Warrants in accordance with the essential intent and
principles of such provisions, then the Board of Directors shall make such
adjustments in the application of such provisions, in accordance with such
essential intent and principles, as shall be reasonably necessary, in the good
faith opinion of the Board of Directors, to protect such purchase rights as
aforesaid.  The Exercise Price or the number of Shares into which this
Warrant is exercisable shall not be adjusted in the event of a change in the par
value of the Common Stock or a change in the jurisdiction of incorporation of
the Company.

     

    (J)           Statement Regarding
Adjustments.  Whenever
the Exercise Price or the number of Shares into which this Warrant is
exercisable shall be adjusted as provided in Section 13, the Company shall
forthwith file at the principal office of the Company a statement showing in
reasonable detail the facts requiring such adjustment and the Exercise Price
that shall be in effect and the number of Shares into which this Warrant shall
be exercisable after such adjustment, and the Company shall also cause a copy of
such statement to be sent by mail, first class postage prepaid, to each
Warrantholder at the address appearing in the Company’s records.

     

    (K)           Notice of Adjustment
Event.  In
the event that the Company shall propose to take any action of the type
described in this Section 13 (but only if the action of the type described in
this Section 13 would result in an adjustment in the Exercise Price or the
number of Shares into which this Warrant is exercisable or a change in the type
of securities or property to be delivered upon exercise of this Warrant), the
Company shall give notice to the Warrantholder, in the manner set forth in
Section 13(J), which notice shall specify the record date, if any, with respect
to any such action and the approximate date on which such action is to take
place.  Such notice shall also set forth the facts with respect
thereto as shall be reasonably necessary to indicate the effect on the Exercise
Price and the number, kind or class of shares or other securities or property
which shall be deliverable upon exercise of this Warrant.  In the case
of any action which would require the fixing of a record date, such notice shall
be given at least 10 days prior to the date so fixed, and in case of all other
action, such notice shall be given at least 15 days prior to the taking of such
proposed action.  Failure to give such notice, or any defect therein,
shall not affect the legality or validity of any such action.

     

    (L)           Proceedings Prior to Any
Action Requiring Adjustment.  As
a condition precedent to the taking of any action which would require an
adjustment pursuant to this Section 13, the Company shall take any action which
may be necessary, including obtaining regulatory, New York Stock Exchange,
NASDAQ Stock Market or other applicable national securities exchange or
stockholder approvals or exemptions, in order that the Company may thereafter
validly and legally issue as fully paid and nonassessable all shares of Common
Stock that the Warrantholder is entitled to receive upon exercise of this
Warrant pursuant to this Section 13.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

     

    (M)           Adjustment
Rules.  Any
adjustments pursuant to this Section 13 shall be made successively whenever an
event referred to herein shall occur.  If an adjustment in Exercise
Price made hereunder would reduce the Exercise Price to an amount below par
value of the Common Stock, then such adjustment in Exercise Price made hereunder
shall reduce the Exercise Price to the par value of the Common
Stock.

     

    14.           Exchange.  At
any time following the date on which the shares of Common Stock of the Company
are no longer listed or admitted to trading on a national securities exchange
(other than in connection with any Business Combination), the Original
Warrantholder may cause the Company to exchange all or a portion of this Warrant
for an economic interest (to be determined by the Original Warrantholder after
consultation with the Company) of the Company classified as permanent equity
under U.S. GAAP having a value equal to the Fair Market Value of the portion of
the Warrant so exchanged.   The Original Warrantholder shall
calculate any Fair Market Value required to be calculated pursuant to this
Section 14, which shall not be subject to the Appraisal Procedure.

     

    

    15.           No
Impairment.  The
Company will not, by amendment of its Charter or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the
Company, but will at all times in good faith assist in the carrying out of all
the provisions of this Warrant and in taking of all such action as may be
necessary or appropriate in order to protect the rights of the
Warrantholder.

     

    16.           Governing
Law.  This Warrant will be governed by and
construed in accordance with the federal law of the United States if and to the
extent such law is applicable, and otherwise in accordance with the laws of the
State of New York applicable to contracts made and to be performed entirely
within such State. Each of the Company and the Warrantholder agrees (a) to
submit to the exclusive jurisdiction and venue of the United States District
Court for the District of Columbia for any civil action, suit or proceeding
arising out of or relating to this Warrant or the transactions contemplated
hereby, and (b) that notice may be served upon the Company at the address in
Section 20 below and upon the Warrantholder at the address for the Warrantholder
set forth in the registry maintained by the Company pursuant to Section 9
hereof.  To the extent permitted by applicable law, each of the
Company and the Warrantholder hereby unconditionally waives trial by jury in any
civil legal action or proceeding relating to the Warrant or the transactions
contemplated hereby or thereby.

     

    17.           Binding
Effect.  This
Warrant shall be binding upon any successors or assigns of the
Company.

     

    18.           Amendments.  This
Warrant may be amended and the observance of any term of this Warrant may be
waived only with the written consent of the Company and the
Warrantholder.

     

    19
..           Prohibited
Actions.  The Company agrees that it will not take any action
which would entitle the Warrantholder to an adjustment of the Exercise Price if
the total number of shares of Common Stock issuable after such action upon
exercise of this Warrant, together with

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    all
shares of Common Stock then outstanding and all shares of Common Stock then
issuable upon the exercise of all outstanding options, warrants, conversion and
other rights, would exceed the total number of shares of Common Stock then
authorized by its Charter.

     

    20.           Notices.  Any
notice, request, instruction or other document to be given hereunder by any
party to the other will be in writing and will be deemed to have been duly given
(a) on the date of delivery if delivered personally, or by facsimile, upon
confirmation of receipt, or (b) on the second business day following the date of
dispatch if delivered by a recognized next day courier service.  All
notices hereunder shall be delivered as set forth in Item 8 of Schedule A
hereto, or pursuant to such other instructions as may be designated in writing
by the party to receive such notice.

     

    21.           Entire
Agreement.  This
Warrant, the forms attached hereto and Schedule A hereto (the terms of which are
incorporated by reference herein), and the Letter Agreement (including all
documents incorporated therein), contain the entire agreement between the
parties with respect to the subject matter hereof and supersede all prior and
contemporaneous arrangements or undertakings with respect thereto.

     

    [Remainder
of page intentionally left blank]

     

     

     

     

    
 

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    [Form
of Notice of Exercise]

     

    Date:  _________

     

    TO:           Peapack-Gladstone
Financial Corporation

     

    RE:           Election
to Purchase Common Stock

     

    The
undersigned, pursuant to the provisions set forth in the attached Warrant,
hereby agrees to subscribe for and purchase the number of shares of the Common
Stock set forth below covered by such Warrant.  The undersigned, in
accordance with Section 3 of the Warrant, hereby agrees to pay the aggregate
Exercise Price for such shares of Common Stock in the manner set forth
below.  A new warrant evidencing the remaining shares of Common Stock
covered by such Warrant, but not yet subscribed for and purchased, if any,
should be issued in the name set forth below.

     

    Number of
Shares of Common
Stock     _________________________

     

    Method of
Payment of Exercise Price (note if cashless exercise pursuant to Section 3(i) of
the Warrant or cash exercise pursuant to Section 3(ii) of the Warrant, with
consent of the Company and the Warrantholder)
     _________________________

     

    Aggregate
Exercise Price:
     _________________________

     

    
      
        	
                Holder:

              	 
      
	
                Name:

              	 
      
	
                By:

              	 
      
	
                Title:

              	 

      

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by a
duly authorized officer.

     

    Dated:  January
9, 2009

     

    
      
        
          
            	
                    PEAPACK-GLADSTONE
      FINANCIAL CORPORATION

                     

                  
	 
	
                    By:

                  	
                    /s/
      Arthur F. Birmingham

                  
	 
      	
                    Name:

                  	
                    Arthur
      F. Birmingham

                  
	 
      	
                    Title:

                  	
                    Executive
      Vice President and

                  
	 
      	 
      	
                    Chief
      Financial Officer

                  
	
                    Attest:

                     

                  	 
      	 
      
	
                    By:

                  	
                    /s/
      Finn M.W. Caspersen, Jr.

                  
	 
      	
                    Name:

                  	
                    Finn
      M.W. Caspersen, Jr.

                  
	 
      	
                    Title:

                  	
                    Executive
      Vice President and

                  
	 
      	 
      	
                    General
      Counsel

                  

          

        

      

    

    

     

    [Signature
Page to Warrant]

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    SCHEDULE
A

    

    

    Item 1

    Name:
Peapack-Gladstone Financial Corporation

    Corporate
or other organizational form: Corporation

    Jurisdiction
of organization: New Jersey

    

    Item 2

    Exercise
Price: 1 $30.06

    

    Item 3

    Issue
Date: January 9, 2009

    

    Item 4

    Amount of
last dividend declared prior to the Issue Date: $0.16 per common
share

    

    Item 5

    Date of
Letter Agreement between the Company and the United States Department of the
Treasury: January 9, 2009

    

    Item 6

    Number of
shares of Common Stock: 143,139 shares

    

    Item 7

    Company’s
address: 158 Route 206 North, Gladstone, New Jersey 07934

    

    
      	
              Item
      8

            	 
      
	
              Notice
      information:

            	
              Peapack-Gladstone Financial
      Corporation

            
	 
      	
              158 Route 206
      North

            
	 
      	
              Gladstone, New Jersey 07934

            
	 
      	
              Attn.: Frank A. Kissel, Chairman
      of the Board

            
	 
      	
                               and Chief Executive
      Officer

            
	 
      	
              Facsimile No.: (908)
      719-4308

            
	 
      	 
      
	 
      	
              Copy to:

            
	 
      	 
      
	 
      	
              Day Pitney
    LLP

            
	 
      	
              7 Times
  Square

            
	 
      	
              New York, New York 10036

            
	 
      	
              Attn.: Ronald H. Janis,
      Esq.

            
	 
      	
              Facsimile No.: (212)
      916-2940

            

    

    

    

      

    

    
      
        	
                1

              	
                Initial
      exercise price to be calculated based on the average of closing prices of
      the Common Stock on the 20 trading days ending on the last trading day
      prior to the date the Company’s application for participation in the
      Capital Purchase Program was approved by the United States Department of
      the Treasury.

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