Document:

Exhibit
4.1

 

 

_______________________________________

 

LLOYDS
BANKING GROUP PLC

 

as Issuer,

 

and

 

THE
BANK OF NEW YORK MELLON,

acting through its London Branch

 

as Trustee

 

_______________________________________

 

TWELFTH
SUPPLEMENTAL INDENTURE

 

dated as
of June 15, 2020

 

to

 

THE
SENIOR DEBT SECURITIES INDENTURE

 

dated as
of July 6, 2010

 

_______________________________________

 

    

    

    

TWELFTH
SUPPLEMENTAL INDENTURE (“Twelfth Supplemental Indenture”), dated as of June 15, 2020, between LLOYDS BANKING
GROUP PLC, a corporation incorporated in Scotland with registered number 95000, as issuer (the “Company”) and
THE BANK OF NEW YORK MELLON, acting through its London Branch, as trustee (the “Trustee”).

 

WITNESSETH

 

WHEREAS,
the Company and the Trustee have executed and delivered a Senior Debt Securities Indenture dated as of July 6, 2010 (the “Senior
Indenture,” and together with this Twelfth Supplemental Indenture, the “Indenture”) to provide for
the issuance of the Company’s Senior Debt Securities, including the Securities (as defined below).

 

WHEREAS,
Section 9.01(d) of the Senior Indenture permits the Company and the Trustee to add to, change or eliminate any provisions of the
Senior Indenture without the consent of Holders as permitted under Sections 2.01 and 3.01 of the Senior Indenture, subject to
certain conditions;

 

WHEREAS,
Section 9.01(f) of the Senior Indenture permits the Company and the Trustee to enter into a supplemental indenture to establish
the forms or terms of Senior Debt Securities of any series as permitted under Sections 2.01 and 3.01 of the Senior Indenture without
the consent of Holders;

 

WHEREAS,
there are no debt securities Outstanding of any series created prior to the execution of this Twelfth Supplemental Indenture which
are entitled to the benefit of the provisions set forth herein or would be adversely affected by such provisions;

 

WHEREAS,
the Board of Directors has authorized the entry into this Twelfth Supplemental Indenture, as required by Section 9.01 of the Senior
Indenture;

 

WHEREAS,
the parties hereto desire to establish, as further series of Senior Debt Securities under the Senior Indenture, $1,000,000,000
1.326% Senior Callable Fixed-to-Fixed Rate Notes due 2023 (the “Securities”) pursuant to Sections 2.01 and
3.01 of the Senior Indenture. The Securities may be issued from time to time and any Securities issued as part of any series will
constitute a single series of Securities under the Indenture and shall be included in the definition of “Securities”
where the context requires;

 

WHEREAS,
the Company has requested that the Trustee execute and deliver this Twelfth Supplemental Indenture and whereas all actions required
by it to be taken in order to make this Twelfth Supplemental Indenture a valid, binding and enforceable instrument in accordance
with its terms, have been taken and performed, and the execution and delivery of this Twelfth Supplemental Indenture has been
duly authorized in all respects; and

 

WHEREAS,
where indicated, this Twelfth Supplemental Indenture shall amend and supplement the Senior Indenture; to the extent that the terms
of the Senior Indenture are inconsistent with such provisions of this Twelfth Supplemental Indenture, the terms of this Twelfth
Supplemental Indenture shall govern.

 

    

    

    

NOW,
THEREFORE, the Company and the Trustee mutually covenant and agree as follows:

 

Article
1

DEFINITIONS

 

Section
1.01.  Definition of Terms. For all purposes of this Twelfth Supplemental Indenture:

 

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

 

(b) capitalized terms used herein but not otherwise defined shall have the meanings assigned to them in the Senior Indenture;

 

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

 

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

 

(e) for the purposes of this Twelfth Supplemental Indenture and the Senior Indenture, the term “series” shall mean
a series of Securities.

 

Article
2

FORM OF SECURITIES

 

Section
2.01.  Terms of the Securities.

 

(a) The title of the Securities shall be the “1.326% Senior Callable Fixed-to-Fixed Rate Notes due 2023”;

 

(b) The aggregate principal amount of the Securities that may be authenticated and delivered under the Indenture shall not
exceed $1,000,000,000, except as otherwise provided in the Indenture;

 

(c) Principal on the Securities shall be payable on June 15, 2023 (the “Maturity Date”);

 

(d) The Securities shall be issued in global registered form on June 15, 2020 (the “Issue Date”).

 

During
the period from, and including, the Issue Date to, but excluding June 15, 2022 (the “Initial Fixed Rate Period”),
interest shall accrue from the Issue Date at a fixed rate of 1.326% per annum. Interest accrued during the Initial Fixed Rate
Period shall be payable semi-annually in arrears on June 15 and December 15 of each year (each, a “Fixed Rate Interest
Payment Date”), commencing on December 15, 2020.

 

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During
the period from, and including, June 15, 2022 (the
“Reset Date”) to, but excluding, June 15, 2023 (the “Reset Fixed
Rate Period”), interest shall accrue at a fixed annual rate equal to the applicable U.S. Treasury Rate (as defined below)
as determined by the Calculation Agent (as defined below) on the Reset Determination Date (as defined below), plus 1.100%.
Interest accrued during the Reset Fixed Rate Period shall be payable semi-annually in arrears on December 15,
2022 and June 15, 2023 (each, a “Reset Rate Interest Payment Date”, and
together with the Fixed Rate Interest Payment Dates, the “Interest Payment Dates”).

 

The
Regular Record Dates for the Securities shall be 15 calendar days immediately preceding the relevant Interest Payment Date, whether
or not a Business Day. If the scheduled Maturity Date or date of redemption or repayment is not a Business Day, the Company may
pay interest and principal on the next succeeding Business Day, but interest on that payment shall not accrue during the period
from and after the scheduled Maturity Date or date of redemption or repayment.

 

Interest
during the Initial Fixed Rate Period shall be calculated on the basis of a 360-day year divided into twelve months of 30 days
each and, in the case of an incomplete month, on the basis of the actual number of days elapsed in such period. If any scheduled
Fixed Rate Interest Payment Date is not a Business Day, the Company shall pay interest on the next Business Day, but interest
on that payment shall not accrue during the period from and after such scheduled Fixed Rate Interest Payment Date.

 

Interest
during the Reset Fixed Rate Period shall be calculated on the basis of a 360-day year consisting of twelve 30-day months and,
in the case of an incomplete month, on the basis of the actual number of days elapsed in such period. The interest rate during
the Reset Fixed Rate Period will be reset on the Reset Determination Date. If any scheduled Reset Rate Interest Payment Date is
not a Business Day, interest will be paid on the next Business Day, but interest on that payment will not accrue during the period
from and after such scheduled Reset Rate Interest Payment Date.

 

The
U.S. Treasury Rate shall be determined by The Bank of New York Mellon, London Branch as calculation agent (the “Calculation
Agent”).

 

“U.S.
Treasury Rate” means, with respect to the Reset Date, the rate per annum equal to: (1) the yield on actively traded
U.S. Treasury securities adjusted to constant maturity for one-year maturities on the Reset Determination Date and appearing under
the caption “Treasury constant maturities” on the Reset Determination Date in the applicable most recently published
statistical release designated “H.15 Daily Update”, or any successor publication that is published by the Board of
Governors of the Federal Reserve System that establishes yields on actively traded U.S. Treasury securities adjusted to constant
maturity, under the caption “Treasury Constant Maturities”, for the maturity of one year; or (2) if such release (or
any successor release) is not published on the Reset Determination Date or does not contain such yields, the rate per annum equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the Reset Date.

 

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If
the U.S. Treasury Rate cannot be determined, for whatever reason, as described under (1) or (2) above, “U.S. Treasury Rate”
means the rate in percentage per annum as notified by the Calculation Agent to the Company equal to the yield on U.S. Treasury
securities having a maturity of one year as set forth in the most recently published statistical release designated “H.15
Daily Update” under the caption “Treasury constant maturities” (or any successor publication that is published
weekly by the Board of Governors of the Federal Reserve System and that establishes yields on actively traded U.S. Treasury securities
adjusted to constant maturity under the caption “Treasury constant maturities” for the maturity of one year) on the
Reset Determination Date.

 

“Comparable
Treasury Issue” means, with respect to the Reset Fixed Rate Period, the U.S. Treasury security or securities selected
by the Company with a maturity date on or about the last day of the Reset Fixed Rate Period and that would be utilized, at the
time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities denominated
in U.S. dollars and having a maturity of one year.

 

“Comparable
Treasury Price” means, with respect to the Reset Date, (i) the arithmetic average of the Reference Treasury Dealer Quotations
for the Reset Date (calculated on the Reset Determination Date preceding the Reset Date), after excluding the highest and lowest
such Reference Treasury Dealer Quotations, or (ii) if fewer than five such Reference Treasury Dealer Quotations are received,
the arithmetic average of all such quotations, or (iii) if fewer than two such Reference Treasury Dealer Quotations are received,
then such Reference Treasury Dealer Quotations as quoted in writing to the Calculation Agent by a Reference Treasury Dealer.

 

“Reference
Treasury Dealer” means each of up to five banks selected by the Company (following, where practicable, consultation
with the Calculation Agent), or if the affiliates of such banks, which are (i) primary U.S. Treasury securities dealers, and their
respective successors, or (ii) market makers in pricing corporate bond issues denominated in U.S. dollars.

 

“Reference
Treasury Dealer Quotations” means with respect to each Reference Treasury Dealer and the Reset Date, the arithmetic
average, as determined by the Calculation Agent, of the bid and offered prices for the applicable Comparable Treasury Issue, expressed
in each case as a percentage of its principal amount, at 11:00 a.m. (New York City time), on the Reset Determination Date.

 

“Reset
Determination Date” means the second Business Day immediately preceding the Reset Date.

 

All
calculations of the Calculation Agent, in the absence of manifest error, shall be conclusive for all purposes and binding on the
Company, the Trustee, the Paying Agent and on the Holders of the Securities.

 

All
percentages resulting from any of the above calculations shall be rounded, if necessary, to the nearest one hundred thousandth
of a percentage point, with five one-

 

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millionths
of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)) and all dollar
amounts used in or resulting from such calculations shall be rounded to the nearest cent (with one-half cent being rounded upwards).

 

The
interest rate on the Securities during the Reset Fixed Rate Period will in no event be higher than the maximum rate permitted
by law or lower than 0% per annum;

 

By
its acquisition of Securities or an interest therein, each Holder and Beneficial owner of Securities and each subsequent holder
and beneficial owner waives any and all claims in law and/or equity against the Trustee, the Calculation Agent or any paying agent
for, agrees not to initiate a suit against the Trustee, the Calculation Agent and any paying agent in respect of, and agrees that
none of the Trustee, the Calculation Agent or any paying agent will be liable for, any action that the Trustee, the Calculation
Agent or any paying agent, as the case may be, takes, or abstains from taking, in each case in accordance with this section or
any losses suffered in connection therewith.

 

For
the avoidance of doubt, the Trustee shall have the rights set forth in Section 9.03 of the Senior Indenture with respect to any
amendment or alteration of the terms and conditions of the Securities and the Indenture.

 

(e) No premium, upon redemption or otherwise, shall be payable by the Company on the Securities;

 

(f)  Principal of and any interest on the Securities shall be paid to the Holder through The Bank of New York Mellon, acting
through its London Branch, as paying agent of the Company;

 

(g) Subject to Section 11.11 and on at least 5 Business Days but no more than 30 Business Days’ prior written notice
delivered to the Holders of the Securities, the Company may redeem, in its sole discretion, the Securities, in whole, but not
in part, on June 15, 2022 at a redemption price equal to 100% of the principal amount of the Securities being redeemed plus
any accrued and unpaid interest thereon, if any, to, but excluding, the date of redemption, as provided in the Senior Indenture;

 

(h) The Securities may be redeemable pursuant to Section 11.08 of the Senior Indenture. In connection with any redemption of
the Securities pursuant to Section 11.08 of the Senior Indenture, the date referenced therein shall be June 15, 2020;

 

(i)  The Company shall have no obligation to redeem or purchase the Securities pursuant to any sinking fund or analogous provision;

 

(j)  The Securities shall be issued only in denominations of $200,000 and in integral multiples of $1,000 in excess thereof;

 

(k) The principal amount of the Securities shall be payable upon the declaration of acceleration thereof pursuant to Section
5.02 of the Senior Indenture, as amended by this Twelfth Supplemental Indenture;

 

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(l)  The Securities shall not be converted into or exchanged at the option of the Company or otherwise for stock or other securities
of the Company;

 

(m) The Securities shall be denominated in, and payments thereon shall be made in, U.S. Dollars;

 

(n)  The payment of principal of (and premium, if any) or interest, if any, on the Securities shall be payable only in the coin
or currency in which the Securities are denominated;

 

(o)  The Securities shall be issued in the form of one or more global securities in registered form, without coupons attached,
and the initial Holder with respect to each such global security shall be Cede & Co., as nominee of The Depository Trust Company;

 

(p)  The Securities shall not be initially issued in definitive form;

 

(q)  The calculation agent (the “Calculation Agent”) for the Securities shall be The Bank of New York Mellon,
London Branch pursuant to the terms of a Calculation Agency Agreement dated as of June 15, 2020;

 

(r)  The Events of Default on the Securities are as provided for in Section 5.01 of the Senior Indenture, as amended by this
Twelfth Supplemental Indenture;

 

(s)  The form of the Securities to be issued on the date hereof shall be substantially in the form of Exhibit A hereto;

 

(t)  The Company may issue additional Securities (“Additional Notes”) after the date hereof having the same
ranking and same interest rate, maturity date, redemption terms and other terms as the Securities except for the price to the
public, issue date and first interest payment date, provided that such Additional Notes must be fungible with the outstanding
Securities for U.S. federal income tax purposes. Any such Additional Notes, together with the Securities shall constitute a single
series of securities under the Indenture;

 

(u) Additional Amounts in respect of the Securities shall be payable as set forth in the Senior Indenture.

 

Article
3

ADDITIONAL TERMS APPLICABLE TO THE SECURITIES

 

Section
3.01.  Addition of Definitions. With respect to the Securities only, Section 1.01 of the Senior Indenture is amended to
include the following definitions (which shall be deemed to arise in Section 1.01 in their proper alphabetical order):

 

“Business
Day” means any day, other than Saturday or Sunday, that is not a legal holiday nor a day on which banking institutions
are authorized 

 

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or
required by law or regulation to close in the City of New York or the City of London.

 

“Default”
has the meaning specified in Section 5.03.

 

“Group”
means Lloyds Banking Group plc together with its subsidiaries and associated undertakings.

 

“Loss
Absorption Disqualification Event” shall be deemed to have occurred if, as a result of any amendment to, or change in,
the Loss Absorption Regulations, or any change in the application or official interpretation of the Loss Absorption Regulations,
in any such case becoming effective on or after the Issue Date of the Securities, such Securities are or (in the opinion of the
Company or the opinions of the Relevant Regulator and/or the United Kingdom resolution authority) are likely to be fully or partially
excluded from the Company’s or the Group’s minimum requirements for (A) own funds and eligible liabilities and/or
(B) loss absorbing capacity instruments, in each case as such minimum requirements are applicable to the Company and/or the Group
and determined in accordance with, and pursuant to, the relevant Loss Absorption Regulations; provided that a Loss Absorption
Disqualification Event shall not occur where the exclusion of the Securities from the relevant minimum requirement(s) is due to
the remaining maturity of the Securities being less than any period prescribed by any applicable eligibility criteria for such
minimum requirements under the relevant Loss Absorption Regulations effective with respect to the Company and/or the Group on
the issue date of the Securities.

 

“Loss
Absorption Regulations” means, at any time, the laws, regulations, requirements, guidelines, rules, standards and policies
relating to minimum requirements for own funds and eligible liabilities and/or loss absorbing capacity instruments of the United
Kingdom, the Relevant Regulator, the United Kingdom resolution authority, the Financial Stability Board and/or of the European
Parliament or of the Council of the European Union then in effect in the United Kingdom including, without limitation to the generality
of the foregoing, any delegated or implementing acts (such as regulatory technical standards) adopted by the European Commission
and any regulations, requirements, guidelines, rules, standards and policies relating to minimum requirements for own funds and
eligible liabilities and/or loss absorbing capacity instruments adopted by the Relevant Regulator and/or the United Kingdom resolution
authority from time to time (whether or not such regulations, requirements, guidelines, rules, standards or policies are applied
generally or specifically to the Company or to the Group).

 

“Relevant
Regulator” means the Prudential Regulation Authority, the Bank of England or such other governmental authority in the
United 

 

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Kingdom
(or if the Company becomes domiciled in a jurisdiction other than the United Kingdom, in such other jurisdiction) having primary
supervisory authority with respect to the Company and/or the Group with respect to prudential and/or resolution matters, as the
case may be.

 

“relevant
U.K. resolution authority” means any authority with the ability to exercise a U.K. bail-in power.

 

“U.K.
bail-in power” means any write-down, conversion, transfer, modification or suspension power existing from time to time
under any laws, regulations, rules or requirements relating to the resolution of banks, banking group companies, credit institutions
and/or investment firms incorporated in the United Kingdom in effect and applicable in the United Kingdom to Lloyds Banking Group
plc or its affiliates, including but not limited to any such laws, regulations, rules or requirements which are implemented, adopted
or enacted within the context of a European Union directive or regulation of the European Parliament and of the Council establishing
a framework for the recovery and resolution of credit institutions and investment firms and/or within the context of a U.K. resolution
regime under the U.K. Banking Act 2009 as the same has been or may be amended from time to time (whether pursuant to the U.K.
Financial Services (Banking Reform) Act 2013 (the “Banking Reform Act 2013”), secondary legislation or otherwise),
pursuant to which any obligations of a bank, banking group company, credit institution or investment firm or any of its affiliates
can be reduced, cancelled, modified, transferred and/or converted into shares or other securities or obligations of the obligor
or any other person (or suspended for a temporary period) or pursuant to which any right in a contract governing such obligations
may be deemed to have been exercised. A reference to the “relevant U.K. resolution authority” is to any authority
with the ability to exercise a U.K. bail-in power.

 

Section
3.02. Deletion of Definitions. With respect to the Securities only, the following definitions shall be deleted in their
entirety in Section 1.01 of the Senior Indenture:

 

“Default
Interest” has the meaning specified in ‎Section 3.07.

 

“Business
Day” has the meaning specified in Section 3.01.

 

Section
3.03. Payment; Interest Rights Preserved. With respect to the Securities only, Section 3.07 is amended and restated in
its entirety and shall read as follows:

 

Section
3.07. Payment; Interest Rights Preserved. Except as otherwise provided as contemplated by ‎Section 3.01 with
respect to any series of Senior Debt Securities, interest, if any, on any Senior Debt Securities which is payable, and is

 

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paid
or duly provided for, on any Interest Payment Date shall be paid to the Holder (including if held through a Paying Agent of the
Company designated pursuant to ‎Section 3.01 outside the United Kingdom for collection by the Holder) at the close
of business on the Regular Record Date for such interest.

 

In
the case of Senior Debt Securities where payment is to be made in Dollars, payment at any Paying Agent’s office outside
The City of New York will be made in Dollars by check drawn on, or, at the request of the Holder, by transfer to a Dollar account
maintained by the payee with, a bank in The City of New York.

 

In
the case of Senior Debt Securities where payment is to be made in a Foreign Currency, payment will be made as established pursuant
to ‎Section 3.01.

 

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

 

Section
3.04.  Events of Default. With respect to the Securities only, Section 5.01 of the Senior Indenture is amended and restated
in its entirety and shall read as follows:

 

Section
5.01. Events of Default. “Event of Default”, wherever used herein with respect to Senior Debt Securities
of a particular series, means the making of an order by a court of competent jurisdiction which is not successfully appealed within
30 days of the making of such order, or valid adoption by the shareholders of the Company of an effective resolution, for the
winding-up of the Company (other than under or in connection with a scheme of amalgamation or reconstruction not involving bankruptcy
or insolvency). The exercise of any U.K. bail-in power by the relevant U.K. resolution authority shall not constitute a default
or an Event of Default under this Section 5.01 or a Default under Section 5.03.

 

Section
3.05.  Acceleration of Maturity; Rescission and Annulment. With respect to the Securities only, Section 5.02 of the Senior
Indenture is amended by adding the following at the end of the section:

 

If
the Senior Debt Securities become due and payable (whether pursuant to this Section 5.02 or Article 11 below) and the Company
fails to pay such amounts (or any damages awarded for breach of any obligations in respect of the Senior Debt Securities or this
Senior Debt Securities Indenture) forthwith upon demand, notwithstanding the continuing right of any Holder to receive payment
of the principal of and interest on Senior Debt Securities, or to institute suit for the enforcement of any such payment, each
in accordance with Section 316(b) (Directions and Waivers by Bondholders; Prohibition of Impairment of Holders’ Right
to Repayment) of the Trust Indenture Act, the Trustee, in its own name and

 

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as
trustee of an express trust, may institute proceedings for the winding up of the Company, and/or prove in a winding up of the
Company for all such due and payable amounts (including any damages awarded for breach of any obligations in respect of the Senior
Debt Securities or this Senior Debt Securities Indenture) but no other remedy shall be available to the Trustee or the Holders.

 

Section
3.06. Defaults; Collection of Indebtedness and Suits for Enforcement by Trustee. With respect to the Securities only,
Section 5.03 of the Senior Indenture is amended and restated in its entirety and shall read as follows:

 

Section
5.03. Defaults; Collection of Indebtedness and Suits for Enforcement by Trustee. “Default” wherever
used herein with respect to Senior Debt Securities of a particular series, means any one of the following events (subject as provided
below, whatever the reason for such Default and whether it shall be voluntary or involuntary or be effected by operation of law
pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental
body):

 

(a)
the Company fails to pay any installment of interest on any Senior Debt Security of such series on or before its Interest Payment
Date and such failure continues for 14 days; or

 

(b)
the Company fails to pay all or any part of the principal of any Senior Debt Security of such series on any date on which such
principal shall otherwise have become due and payable, whether upon redemption or otherwise, and such failure continues for seven
days.

 

If
a Default occurs, the Trustee may commence a proceeding for the winding-up of the Company and/or prove in a winding-up of the
Company, provided that the Trustee may not (except in such winding-up, in accordance with Section 5.01) declare the principal
amount of, or any other amount in respect of, any Outstanding Senior Debt Security to be due and payable.

 

Subject
to applicable law, including the Trust Indenture Act, no Holder may exercise or claim any right of set-off, counterclaim, combination
of accounts, compensation or retention in respect of any amount owed to it by the Company arising under or in connection with
the Senior Debt Securities. The Holders of Senior Debt Securities by their acceptance thereof will be deemed to have waived any
right of set-off, counterclaim, combination of accounts, compensation and retention with respect to the Senior Debt Securities
or this Senior Debt Securities Indenture (or between the obligations under or in respect of any Senior Debt Securities and any
liability owed by a Holder to the Company) that they might otherwise have against the Company, whether before or during a winding-up
or liquidation of the Company. Notwithstanding the above, if any of such rights and claims of any such Holder against the Company
are discharged by set-off, such Holder will immediately pay an amount equal to the amount of such discharge to

 

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the Company or,
in the event of the winding up of the Company, the liquidator or administrator (or other relevant insolvency official), as the
case may be, and until such time as payment is made will hold a sum equal to such amount in trust for the Company or the liquidator
or administrator (or other relevant insolvency official), as the case may be, and accordingly such discharge shall be deemed not
to have taken place.

 

Notwithstanding
the foregoing, failure to make any payment in respect of a series of Senior Debt Securities shall not be a Default in respect
of such Senior Debt Securities if such payment is withheld or refused and the Company delivers an Opinion of Counsel concluding
that such sums were not paid in order to comply with any fiscal or other law or regulation or with the order of any court of competent
jurisdiction, provided, however, that the Trustee may by notice to the Company require the Company to take such action (including
but not limited to proceedings for a declaration by a court of competent jurisdiction) as the Trustee may be advised in an Opinion
of Counsel, upon which opinion the Trustee may conclusively rely, is appropriate and reasonable in the circumstances to resolve
such doubt, in which case the Company shall forthwith take and expeditiously proceed with such action and shall be bound by any
final resolution of the doubt resulting therefrom. If any such action results in a determination that the relevant payment can
be made without violating any applicable law, regulation or order then the provisions of the preceding sentence shall cease to
have effect and the payment shall become due and payable on the expiration of 14 days (in the case of payments under Section 5.03(a)
above) or seven days (in the case of payments under Section 5.03(b) above) after the Trustee gives written notice to the Company
informing it of such resolution.

 

Except
as otherwise provided in this Article 5, the Trustee may in its discretion proceed to protect and enforce its rights and the rights
of the Holders of Senior Debt Securities of such series by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Senior
Debt Securities Indenture or in aid of the exercise of any power granted herein, or to enforce any other legal or equitable right
vested in the Trustee by this Senior Debt Securities Indenture or by law, provided, however, that the Company shall not, as a
result of the bringing of such judicial proceedings, be required to pay any amount representing or measured by reference to the
principal of, or any interest on, the Senior Debt Securities prior to any date on which the principal of, or any interest on,
the Senior Debt Securities would have otherwise been payable by the Company.

 

No
recourse for the payment of the principal of (or premium, if any) or interest, if any, on any Senior Debt Security, or for any
claim based thereon or otherwise in respect thereof and no recourse under or upon any obligation, covenant or agreement of the
Company in this Senior Debt Securities Indenture, or in any Senior Debt Security, or because of the creation of any indebtedness
represented thereby, shall be had against any incorporator, stockholder, officer or

 

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director, past, present or future, of the
Company or of any successor corporation of the Company, either directly or through the Company or any successor corporation, whether
by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that to the extent lawful all such liability is hereby expressly waived and released as a condition of, and
as a consideration for, the execution of this Senior Debt Securities Indenture and the issue of the Senior Debt Securities.

 

No
remedy against the Company other than as referred to in this Article 5 shall be available to the Trustee or the Holders, whether
for the recovery of amounts owing in respect of the Senior Debt Securities or under this Senior Debt Securities Indenture or in
respect of any breach by the Company of any of its other obligations under or in respect of the Senior Debt Securities or under
this Senior Debt Securities Indenture, except that the Trustee and the Holders shall have such rights and powers as they are required
to have under the Trust Indenture Act.

 

Section
3.07.  With respect to the Securities only, (a) Sections 5.07(a), 5.07(b), 5.11, 5.13, 6.02, 6.03(i), 8.01(b), 8.03(c) and 10.03(b)
shall be amended to add the words “or Default” after each appearance of the words “Event of Default” and
(b) Section 11.08 shall be amended to replace in the first paragraph the word “Unless” with the words “Subject
to Section 11.1 and unless”.

 

Section
3.08.  Deletion of Satisfaction and Discharge Provisions. With respect to the Securities only, Article 4 of the Senior
Indenture is deleted in its entirety.

 

Section
3.09.  Compensation and Reimbursement. With respect to the Securities only, Section 6.07 of the Senior Indenture is amended
in part to add the following sentence at the end of the section:

 

The
Trustee’s right to reimbursement and indemnity under this Section 6.07 shall survive the payment in full of the Senior Debt
Securities, the discharge of this Senior Debt Securities Indenture, the resignation or removal of the Trustee and (without prejudice
to Section 4.08 of the Twelfth Supplemental Indenture if and to the extent applicable as set out therein) any exercise of the
U.K. bail-in power by the relevant U.K. resolution authority with respect to the obligations owed or owing to Holders pursuant
to or in connection with the Senior Debt Securities.

 

Section
3.10.  Agreement with Respect to Exercise of U.K. Bail-In Power. The following provisions relate solely to the Securities
established pursuant to this Twelfth Supplemental Indenture:

 

(a) Notwithstanding any other agreements, arrangements, or understandings between the Company and any Holder or Beneficial
Owner of the Securities, by

 

    13

    

    

purchasing
or acquiring the Securities, each Holder (including each Beneficial Owner) of the Securities acknowledges, accepts, agrees to
be bound by and consents to the exercise of any U.K. bail-in power by the relevant U.K. resolution authority that may result in
(i) the reduction or cancellation of all, or a portion, of the principal amount of, or interest on, the Securities; (ii) the conversion
of all, or a portion, of the principal amount of, or interest on, the Securities into shares or other securities or other obligations
of the Company or another person; and/or (iii) the amendment or alteration of the maturity of the Securities, or amendment of
the amount of interest due on the Securities, or the dates on which interest becomes payable, including by suspending payment
for a temporary period; which U.K. bail-in power may be exercised by means of variation of the terms of the Securities solely
to give effect to the exercise by the relevant U.K. resolution authority of such U.K. bail-in power. Each Holder and Beneficial
Owner of the Securities further acknowledges and agrees that the rights of the Holders and/or Beneficial Owners under the Securities
are subject to, and will be varied, if necessary, solely to give effect to, the exercise of any U.K. bail-in power by the relevant
U.K. resolution authority.

 

(b) By purchasing or acquiring the Securities, each Holder and each Beneficial Owner of the Securities:

 

(i) acknowledges and agrees that the exercise of the U.K. bail-in power by the relevant U.K. resolution authority in respect
of the Securities shall not give rise to a default or an Event of Default for purposes of Section 315(b) (Notice of Default) and
Section 315(c) (Duties of the Trustee in Case of Default) of the Trust Indenture Act;

 

(ii)  to the extent permitted by the Trust Indenture Act, waives any and all claims against the Trustee for, agrees not to initiate
a suit against the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee takes,
or abstains from taking, in either case in accordance with the exercise of the U.K. bail-in power by the relevant U.K. resolution
authority with respect to the Securities; and

 

(iii)  acknowledges
and agrees that, upon the exercise of any U.K. bail-in power by the relevant U.K. resolution authority, (a) the Trustee shall
not be required to take any further directions from Holders of the Securities under Section 5.12 of the Senior Indenture, and
(b) neither the Senior Indenture nor this Twelfth Supplemental Indenture shall impose any duties upon the Trustee whatsoever with
respect to the exercise of any U.K. bail-in power by the relevant U.K. resolution authority. Notwithstanding the foregoing, if,
following the completion of the exercise of the U.K. bail-in power by the relevant U.K. resolution authority, any of the Securities
remain outstanding (for example, if the exercise of the U.K. bail-in power results in only a partial write-down of the principal
of the Securities), then the Trustee’s duties under the Indenture shall remain applicable with respect to the Securities
following such completion to the extent that the Company and the Trustee shall agree pursuant to a supplemental indenture or an
amendment to this Twelfth Supplemental Indenture.

 

    14

    

    

(c) By purchasing or acquiring the Securities, each Holder and Beneficial Owner that acquires its Securities in the secondary
market shall be deemed to acknowledge and agree to be bound by and consent to the same provisions specified in the Indenture to
the same extent as the Holders and Beneficial Owners of the Securities that acquire the Securities upon their initial issuance,
including, without limitation, with respect to the acknowledgement and agreement to be bound by and consent to the terms of the
Securities related to the U.K. bail-in power.

 

(d) By purchasing or acquiring the Securities, each Holder and Beneficial Owner shall be deemed to have (i) consented to the
exercise of any U.K. bail-in power as it may be imposed without any prior notice by the relevant U.K. resolution authority of
its decision to exercise such power with respect to the Securities and (ii) authorized, directed and requested DTC and any direct
participant in DTC or other intermediary through which it holds such Securities to take any and all necessary action, if required,
to implement the exercise of any U.K. bail-in power with respect to the Securities as it may be imposed, without any further action
or direction on the part of such Holder or Beneficial Owner or the Trustee.

 

(e) No repayment of the principal amount of the Securities or payment of interest on the Securities shall become due and payable
after the exercise of any U.K. bail-in power by the relevant U.K. resolution authority unless, at the time that such repayment
or payment, respectively, is scheduled to become due, such repayment or payment would be permitted to be made by the Company under
the laws and regulations of the United Kingdom and the European Union applicable to the Company and the Group.

 

(f)  Upon the exercise of the U.K. bail-in power by the relevant U.K. resolution authority with respect to the Securities, the
Company shall provide a written notice to DTC as soon as practicable regarding such exercise of the U.K. bail-in power for purposes
of notifying Holders of such occurrence. The Company shall also deliver a copy of such notice to the Trustee for information purposes
only.

 

Section
3.11.  Redemption of Securities. With respect to the Securities only, Article 11 of the Senior Indenture is amended to
add a Section 11.09, Section 11.10 and Section 11.11, each of which shall read as follows:

 

Section
11.09. Optional Redemption.

 

    15

    

    

Subject
to Section 11.11 and on at least 5 Business Days’, but no more than 30 Business Days’, prior written notice delivered
to the registered holders of the Securities, the Company may, at the Company’s option and in its sole discretion, redeem
the Securities, in whole, but not in part, on June 15, 2022, at a Redemption Price equal to 100% of the principal amount of the
notes being redeemed together with any accrued and unpaid interest to, but excluding, the date of redemption.

 

Section
11.10 Loss Absorption Disqualification Event Redemption.

 

Subject
to Section 11.11, the Company may, at the Company’s option (but subject to, if and to the extent then required by the Relevant
Regulator or the Loss Absorption Regulations, the Company giving notice to the Relevant Regulator and the Relevant Regulator granting
the Company permission), having given not less than 30 nor more than 60 days’ notice to holders, redeem all but not some
only of the Securities outstanding at any time at 100% of their principal amount together with any accrued but unpaid interest
to the date of redemption, if immediately prior to the giving of the notice referred to above, the Company satisfies the Trustee
that a Loss Absorption Disqualification Event has occurred.

 

Section
11.11. Conditions to Redemption and Repurchase, etc.

 

Notwithstanding
anything herein to the contrary, any redemption or purchase of Securities (other than redemption on the relevant Maturity Date),
and any modification to the terms of the Securities or any indenture relating thereto, is subject to, if and to the extent then
required by the Relevant Regulator or the Loss Absorption Regulations, the Company giving notice to the Relevant Regulator and
the Relevant Regulator granting the Company permission therefor and otherwise to compliance with the Loss Absorption Regulations
if and to the extent then required thereunder.

 

Article
4

MISCELLANEOUS

 

Section
4.01.  Effect of Supplemental Indenture. Upon the execution and delivery of this Twelfth Supplemental Indenture by each
of the Company and the Trustee, and the delivery of the documents referred to in Section 5.02 herein, the Senior Indenture shall
be supplemented in accordance herewith, and this Twelfth Supplemental Indenture shall form a part of the Senior Indenture for
all purposes in respect of the Securities or otherwise as applicable.

 

Section
4.02. Other Documents to be Given to the Trustee.
The Trustee shall be entitled to receive an Officer’s Certificate and an Opinion of Counsel stating the recitals contained
in Section 1.02 of the Senior Indenture and, in the case of the Opinion of Counsel, stating that the Indenture is a legal, binding
a valid obligation of the Company enforceable in accordance with its terms. As specified in Section 9.03 of the Senior Indenture
and subject to the provisions of Section 6.03 of the Senior Indenture, the Trustee shall also be entitled to receive an Opinion
of Counsel stating that that this Twelfth Supplemental Indenture is authorized or permitted by the Indenture, and the Twelfth
Supplemental Indenture and the Securities whose terms are incorporated by reference herein are each, subject to Section 1.03 of
the Senior Indenture, a legal, valid and binding obligation of the Company enforceable in accordance with their terms, except
as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or
affecting creditor’s rights generally, by equitable principles of general

 

    16

    

    

applicability
and by possible judicial actions giving effect to governmental actions or foreign laws affecting creditors’ rights, and
the Twelfth Supplemental Indenture is permitted under the Indenture. The Trustee may rely on such Officer’s Certificate
and Opinion of Counsel as conclusive evidence that this Twelfth Supplemental Indenture complies with the applicable provisions
of the Senior Indenture.

 

Section
4.03.  Confirmation of Indenture. The Senior Indenture, as supplemented and amended by this Twelfth Supplemental Indenture
with respect to the Securities or otherwise as applicable, is in all respects ratified and confirmed, and the Senior Indenture,
this Twelfth Supplemental Indenture and all indentures supplemental thereto shall, in respect of the Securities or otherwise as
applicable, be read, taken and construed as one and the same instrument. This Twelfth Supplemental Indenture constitutes an integral
part of the Senior Indenture and, where applicable, with respect to the Securities. In the event of a conflict between the terms
and conditions of the Senior Indenture and the terms and conditions of this Twelfth Supplemental Indenture, the terms and conditions
of this Twelfth Supplemental Indenture shall prevail where applicable.

 

Section
4.04.  Concerning the Trustee. The Trustee does not make any representations as to the validity or sufficiency of this
Twelfth Supplemental Indenture or the Securities. The recitals and statements herein are deemed to be those of the Company and
not the Trustee. In entering into this Twelfth Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision
of the Senior Indenture relating to the conduct of or affecting the liability of or affording protection to the Trustee.

 

Section
4.05.  Governing Law. This Twelfth Supplemental Indenture and the Securities shall be governed by and construed in accordance
with the laws of the State of New York, except that the authorization and execution by the Company of this Twelfth Supplemental
Indenture and the Securities shall be governed by (in addition to the laws of the State of New York relevant to execution) the
respective jurisdictions of the Company and the Trustee, as the case may be.

 

Section
4.06. Separability. In case any provision contained in this Twelfth Supplemental Indenture 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
4.07. Counterparts. This Twelfth Supplemental Indenture may be executed in any number of counterparts, each of which shall
be an original, but such counterparts shall together constitute but one and the same instrument.

 

    17

    

    

Section
4.08. Concerning BRRD Liability. Notwithstanding and to the exclusion of any other term of this Twelfth Supplemental Indenture
or the Senior Indenture or any other agreements, arrangements, or understanding between the Company and the Trustee, the Trustee
acknowledges and accepts that a BRRD Liability arising under this Twelfth Supplemental Indenture may be subject to the exercise
of Bail-in Powers by the relevant Resolution Authority (but only to the extent applicable) and acknowledges, accepts, and agrees
to be bound by:

 

(a)  the effect of the exercise of Bail-in Powers by the Relevant Resolution Authority in relation to any BRRD Liability of
the Company to the Trustee under this Twelfth Supplemental Indenture or the Senior Indenture, that (without limitation) may include
and result in any of the following, or some combination thereof:

 

(i)  the reduction of all, or a portion, of the BRRD Liability or outstanding amounts due thereon;

 

(ii)  the conversion of all, or a portion, of the BRRD Liability into shares, other securities or other obligations of the Company
or another person (and the issue to or conferral on the Trustee of such shares, securities or obligations);

 

(iii)  the cancellation of the BRRD Liability; and/or

 

(iv)  the amendment or alteration of any interest, if applicable, thereon, the maturity or the dates on which any payments are
due, including by suspending payment for a temporary period; and

 

(b) the variation of the terms of this Twelfth Supplemental Indenture, as deemed necessary by the Relevant Resolution Authority,
to give effect to the exercise of Bail-in Powers by the Relevant Resolution Authority.

 

“Bail-in
Legislation” means Part I of the U.K. Banking Act 2009 and any other law, regulation, rule or requirement applicable
from time to time in the U.K. relating to the resolution of unsound or failing banks, investment firms or other

 

financial
institutions or their affiliates (otherwise than through liquidation, administration or other insolvency proceedings).

 

“Bail-in
Powers” means any Write-down and Conversion Powers as defined in relation to the Bail-in Legislation.

 

“BRRD”
means Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms.

 

“BRRD
Liability” means a liability in respect of which the relevant Write-down and Conversion powers in the applicable Bail-in
Legislation may be exercised.

 

    18

    

    

“Relevant
Resolution Authority” means the resolution authority with the ability to exercise any Bail-in Powers in relation to
the Company.

 

“Write-down
and Conversion Powers” means the powers under the Bail-In Legislation to cancel, transfer or dilute shares issued by
a person that is a bank or investment firm or affiliate of a bank or investment firm, to cancel, reduce, modify or change the
form of a liability of such a person or any contract or instrument under which that liability arises, to convert all or part of
that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or
instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability.

 

[Signature
Pages Follow]

 

    19

    

    

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

 

	 	LLOYDS BANKING GROUP PLC	 
	 	 	 	 	 
	 	By:	/s/ Peter Green	 
	 	 	Name:	Peter Green	 
	 	 	Title:	Authorised Signatory	 

 

 

    [Signature Page to Supplemental Indenture]

    

    

	 	THE
BANK OF NEW YORK MELLON,

acting
through its London Branch, as Trustee

	 
	 	 	 	 	 
	 	By:	/s/ Thomas Vanson	 
	 	 	Name:	Thomas Vanson	 
	 	 	Title:	Authorised Signatory	 

 

 

    [Signature Page to Supplemental Indenture]

    

    

EXHIBIT
A

 

FORM
OF 2023 SENIOR CALLABLE FIXED-TO-FIXED RATE SENIOR GLOBAL NOTE

 

THIS SECURITY
IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS
SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

CUSIP
No. 53944YAM5

ISIN No. US53944YAM57

Common Code: 218990568 

 

LLOYDS BANKING
GROUP plc

1.326% SENIOR
CALLABLE FIXED-TO-FIXED RATE NOTE DUE 2023

 

	No. [·]	$[·]

 

LLOYDS BANKING
GROUP plc (herein called the “Company,” which term includes any successor person under the Indenture (as defined on
the reverse hereof)), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of
$[·] ([·] dollars) on June 15,
2023 (the “Maturity Date”) or on such earlier date as the principal hereof may become due in accordance with the terms
hereof and to pay interest thereon (i) from, and including, the date of issuance hereof to, but excluding, June 15, 2022, semi-annually
in arrears on the Initial Fixed Rate Interest Payment Dates (as defined on the reverse hereof) and (ii) from, and including, June
15, 2022 to, but excluding, June 15, 2023, semi-annually in arrears on the Reset Rate Interest Payment Dates (as defined in the
reverse hereof). Interest so payable on any Interest Payment Date (as defined on the reverse hereof) shall be paid to the Holder
in whose name this Senior Note is registered on the 15th calendar day immediately preceding the relevant Interest Payment
Date, whether or not such day is a Business Day, as defined in the Indenture (each a “Regular Record Date”). If (i)
the Company fails to pay any installment of interest on this Senior Note on or before its Interest Payment Date and such failure
continues for 14 days or (ii) the Company fails to pay all or any part of the principal of this Senior Note on any date on which
such principal shall otherwise have become due and payable, whether upon redemption or otherwise, and such failure continues for
seven days (each of (i) and (ii), a “Default”), the Trustee may commence a proceeding for the winding up of the Company,
provided that the Trustee may not, upon the occurrence of a Default,
declare the principal amount of any of the Outstanding Senior Notes to be due and payable.

 

    

    

    

As
set forth on the reverse hereof, interest shall accrue on this Senior Note from day to day from the date of issuance hereof until
the principal amount hereof is paid or made available for payment.

 

Payments
of interest on this Senior Note shall be computed on the basis of a 360-day year divided into twelve months of 30 days each and,
in the case of an incomplete month, the actual number of days elapsed in such period.

 

Payment
of the principal amount of (and premium, if any) and any interest on, this Senior Note will be made in such coin or currency of
the United States of America as at the time of payment is legal tender for payment of public and private debts. Such payment shall
be made to the Holder including through a Paying Agent of the Company outside the United Kingdom for collection by the Holder.
If the date for payment of the principal amount hereof (and premium, if any) or interest thereon is not a Business Day, then (subject
as provided in the Indenture) such payment shall be made on the next succeeding Business Day with the same force and effect as
if made on such date for payment and without any interest or other payment in respect of such delay.

 

Prior
to due presentment of this Senior Note for registration of transfer, the Company, the Trustee and any agent of the Company or
the Trustee may treat the Person in whose name this Senior Note is registered as the owner of such Senior Note for the purpose
of receiving payment of principal and interest, if any, on such Senior Note and for all other purposes whatsoever, whether or
not such Senior Note be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected
by notice to the contrary.

 

Reference
is hereby made to the further provisions of this Senior 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 Senior Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

Notwithstanding
any other agreements, arrangements, or understandings between the Company and any Holder or Beneficial Owner of this Senior Note,
by purchasing or acquiring this Senior Note, each Holder (including each Beneficial Owner) of this Senior Note acknowledges, accepts,
agrees to be bound by and consents to the exercise of any U.K. bail-in power (as defined below) by the relevant U.K. resolution
authority that may result in (i) the reduction or cancellation of all, or a portion, of the principal amount of, or interest on,
this Senior Note; (ii) the conversion of all, or a portion, of the principal amount of, or interest on, this Senior Note into
shares or other securities or other obligations of the Company or another person; and/or (iii) the amendment or alteration of
the maturity of this Senior Note, or amendment of the amount of interest due on this

 

    A-2

    

    

Senior
Note, or the dates on which interest becomes payable, including by suspending payment for a temporary period; which U.K. bail-in
power may be exercised by means of variation of the terms of this Senior Note solely to give effect to the exercise by the relevant
U.K. resolution authority of such U.K. bail-in power. Each Holder and Beneficial Owner of this Senior Note further acknowledges
and agrees that the rights of the Holders and/or Beneficial Owners under this Senior Note are subject to, and will be varied,
if necessary, solely to give effect to, the exercise of any U.K. bail-in power by the relevant U.K. resolution authority.

 

For
these purposes, a “U.K. bail-in power” is any write-down, conversion, transfer, modification or suspension power existing
from time to time under any laws, regulations, rules or requirements relating to the resolution of banks, banking group companies,
credit institutions and/or investment firms incorporated in the United Kingdom in effect and applicable in the United Kingdom
to the Company and the Group, including but not limited to any such laws, regulations, rules or requirements which are implemented,
adopted or enacted within the context of a European Union directive or regulation of the European Parliament and of the Council
establishing a framework for the recovery and resolution of credit institutions and investment firms and/or within the context
of a U.K. resolution regime under the U.K. Banking Act 2009 as the same has been or may be amended from time to time (whether
pursuant to the U.K. Financial Services (Banking Reform) Act 2013, secondary legislation or otherwise), pursuant to which any
obligations of a bank, banking group company, credit institution or investment firm or any of its affiliates can be reduced, cancelled,
modified, transferred and/or converted into shares or other securities or obligations of the obligor or any other person (or suspended
for a temporary period) or pursuant to which any right in a contract governing such obligations may be deemed to have been exercised.
A reference to the “relevant U.K. resolution authority” is to any authority with the ability to exercise a U.K. bail-in
power.

 

[The rest
of this page is intentionally left blank]

 

    A-3

    

    

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

 

Dated:

 

	 	LLOYDS BANKING GROUP PLC	 
	 	 	 	 	 
	 	By:	  	 
	 	 	Name:		 
	 	 	Title:		 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Global
Note Signature Page]

 

    A-4

    

    

 

CERTIFICATE
OF AUTHENTICATION

 

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

 

Dated:

 

	 	THE
BANK OF NEW YORK MELLON,

LONDON BRANCH, as Trustee

	 
	 	 	 	 	 
	 	By:	 	 
	 	 	 	Authorised Signatory	 

 

 

 

 

 

 

 

 

 

 

 

 

[Global
Note Signature Page]

 

    A-5

    

    

 

[REVERSE
OF SECURITY]

 

This
Senior Note is one of a duly authorized issue of securities of the Company (herein called the “Senior Notes”) issued
and to be issued in one or more series under a Senior Debt Securities Indenture, dated as of July 6, 2010 (herein called the “Senior
Indenture”), among the Company, as issuer, and The Bank of New York Mellon, acting through its London Branch as trustee
(herein called the “Trustee,” which term includes any successor trustee under the Senior Indenture), as supplemented
by the Twelfth Supplemental Indenture dated as of June 15, 2020, among the Company and the Trustee (the “Twelfth Supplemental
Indenture”, and, together with the Senior Indenture, the “Indenture”) to which Indenture and all 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 Holders of the Senior Notes and of the terms upon which the Senior Notes are, and
are to be, authenticated and delivered.

 

This
Senior Note is one of the series designated on the face hereof, initially limited in aggregate principal amount to $1,000,000,000.
The Company may, without the consent of the Holders of the Senior Notes, issue additional notes having the same ranking and interest
rate, maturity date, redemption terms and other terms as the Senior Notes except for the price to the public, issue date and first
interest payment date, provided that such additional notes must be fungible with the outstanding Senior Notes for U.S. federal
income tax purposes. Any such Senior Notes, together with this Senior Note, will constitute a single series of securities under
the Indenture. The Senior Notes will initially be issued in the form of one or more global Senior Notes (each, a “Global
Senior Note”). Except as provided in the Indenture, a Global Senior Note shall not be exchangeable for one or more definitive
Senior Notes.

 

The
Senior Notes of this series will constitute direct, unconditional, unsecured and unsubordinated obligations of the Company, as
described herein, and will rank pari passu and without any preference among themselves and at least pari passu with
all of the Company’s other outstanding unsecured and unsubordinated obligations, present and future subject to such exceptions
as may be provided by mandatory provisions of applicable law.

 

During
the period from, and including, June 15, 2020 to, but excluding, June 15, 2022 (the “Initial Fixed Rate Period”),
interest shall accrue from the Issue Date at a fixed rate of 1.326% per annum. Interest accrued during the Initial Fixed Rate
Period shall be payable semi-annually in arrears on June 15 and December 15 of each year (each, a “Fixed Rate Interest Payment
Date”), commencing on December 15, 2020.

 

During
the period from, and including, June 15, 2022 to, but excluding, June 15, 2023 (the “Reset Fixed Rate Period”), interest
shall accrue at a fixed annual rate equal to the applicable U.S. Treasury Rate (as defined below) as determined by the Calculation
Agent (as defined below) on the Reset Determination Date (as defined below), plus 110.0 basis points. Interest accrued
on the Senior Notes during the Reset Fixed Rate Period will be payable semi-annually in arrears on December 15, 2022 and June
15, 2023 (each a

 

    A-6

    

    

“Reset
Rate Interest Payment Date”, and together with the Fixed Rate Interest Payment Dates, the “Interest Payment Dates”).

 

Interest
during the Initial Fixed Rate Period shall be calculated on the basis of a 360-day year divided into twelve months of 30 days
each and, in the case of an incomplete month, on the basis of the actual number of days elapsed in such period. If any scheduled
Fixed Rate Interest Payment Date is not a Business Day, the Company shall pay interest on the next Business Day, but interest
on that payment shall not accrue during the period from and after such scheduled Fixed Rate Interest Payment Date.

 

Interest
during the Reset Fixed Rate Period shall be calculated on the basis of a 360-day year consisting of twelve 30-day months and,
in the case of an incomplete month, on the basis of the actual number of days elapsed in such period. The interest rate during
the Reset Fixed Rate Period will be reset on the Reset Determination Date. If any scheduled Reset Rate Interest Payment Date is
not a Business Day, interest will be paid on the next Business Day, but interest on that payment will not accrue during the period
from and after such scheduled Reset Rate Interest Payment Date.

 

The
U.S. Treasury Rate shall be determined by The Bank of New York Mellon, London Branch as calculation agent (the “Calculation
Agent”).

 

“U.S.
Treasury Rate” means, with respect to the Reset Date, the rate per annum equal to: (1) the yield on actively traded
U.S. Treasury securities adjusted to constant maturity for one-year maturities on the Reset Determination Date and appearing under
the caption “Treasury constant maturities” on the Reset Determination Date in the applicable most recently published
statistical release designated “H.15 Daily Update”, or any successor publication that is published by the Board of
Governors of the Federal Reserve System that establishes yields on actively traded U.S. Treasury securities adjusted to constant
maturity, under the caption “Treasury Constant Maturities”, for the maturity of one year; or (2) if such release (or
any successor release) is not published on the Reset Determination Date or does not contain such yields, the rate per annum equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the Reset Date.

 

If
the U.S. Treasury Rate cannot be determined, for whatever reason, as described under (1) or (2) above, “U.S. Treasury Rate”
means the rate in percentage per annum as notified by the Calculation Agent to the Company equal to the yield on U.S. Treasury
securities having a maturity of one year as set forth in the most recently published statistical release designated “H.15
Daily Update” under the caption “Treasury constant maturities” (or any successor publication that is published
weekly by the Board of Governors of the Federal Reserve System and that establishes yields on actively traded U.S. Treasury securities
adjusted to constant maturity under the caption “Treasury constant maturities” for the maturity of one year) on the
Reset Determination Date.

 

“Comparable
Treasury Issue” means, with respect to the Reset Fixed Rate Period, the U.S. Treasury security or securities selected
by the Company with a maturity

 

    A-7

    

    

date
on or about the last day of the Reset Fixed Rate Period and that would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of corporate debt securities denominated in U.S. dollars and having a
maturity of one year.

 

“Comparable
Treasury Price” means, with respect to the Reset Date, (i) the arithmetic average of the Reference Treasury Dealer Quotations
for the Reset Date (calculated on the Reset Determination Date preceding the Reset Date), after excluding the highest and lowest
such Reference Treasury Dealer Quotations, or (ii) if fewer than five such Reference Treasury Dealer Quotations are received,
the arithmetic average of all such quotations, or (iii) if fewer than two such Reference Treasury Dealer Quotations are received,
then such Reference Treasury Dealer Quotations as quoted in writing to the Calculation Agent by a Reference Treasury Dealer.

 

“Reference
Treasury Dealer” means each of up to five banks selected by the Company (following, where practicable, consultation
with the Calculation Agent), or if the affiliates of such banks, which are (i) primary U.S. Treasury securities dealers, and their
respective successors, or (ii) market makers in pricing corporate bond issues denominated in U.S. dollars.

 

“Reference
Treasury Dealer Quotations” means with respect to each Reference Treasury Dealer and the Reset Date, the arithmetic
average, as determined by the Calculation Agent, of the bid and offered prices for the applicable Comparable Treasury Issue, expressed
in each case as a percentage of its principal amount, at 11:00 a.m. (New York City time), on the Reset Determination Date.

 

“Reset
Determination Date” means the second Business Day immediately preceding the Reset Date.

 

All
calculations of the Calculation Agent, in the absence of manifest error, shall be conclusive for all purposes and binding on the
Company, the Trustee, the Paying Agent and on the Holders of the Senior Notes.

 

All
percentages resulting from any of the above calculations shall be rounded, if necessary, to the nearest one hundred thousandth
of a percentage point, with five one-millionths of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) being rounded
to 9.87655% (or .0987655)) and all dollar amounts used in or resulting from such calculations shall be rounded to the nearest
cent (with one-half cent being rounded upwards).

 

The
interest rate on the Senior Notes during the Reset Fixed Rate Period will in no event be higher than the maximum rate permitted
by law or lower than 0% per annum.

 

By
its acquisition of Senior Notes or an interest therein, each holder and beneficial owner of Senior Notes and each subsequent holder
and beneficial owner waives any and all claims in law and/or equity against the Trustee, the Calculation Agent or any paying agent
for, agrees not to initiate a suit against the Trustee, the Calculation Agent and any paying agent in respect of, and agrees that
none of the Trustee, the

 

    A-8

    

    

Calculation
Agent or any paying agent will be liable for, any action that the Trustee, the Calculation Agent or any paying agent, as the case
may be, takes, or abstains from taking, in each case in accordance with this section or any losses suffered in connection therewith.

 

Subject
to Section 11.11 of the Twelfth Supplemental Indenture and on at least 5 Business Days but no more than 30 Business Days’
prior written notice delivered to the Holders of the Senior Notes, the Company may in its sole discretion (but subject to, if
and to the extent then required by the Relevant Regulator or the Loss Absorption Regulations, our giving notice to the Relevant
Regulator and the Relevant Regulator granting us permission) redeem, the Senior Notes, in whole, but not in part, on June 15,
2022 at a redemption price equal to 100% of the principal amount of the Senior Notes being redeemed plus any accrued and
unpaid interest thereon, if any, to, but excluding, the date of redemption.

 

If
an Event of Default with respect to the Senior Notes of this series shall have occurred and be continuing, the Trustee or the
Holder or Holders of not less than 25% in aggregate principal amount of the Outstanding Senior Notes of this series may declare
the principal amount of, and any accrued interest on, all the Senior Notes to be due and payable immediately, in the manner, with
the effect and subject to the conditions provided in the Indenture.

 

Except
as otherwise provided in Article 5 of the Senior Indenture, the Trustee may in its discretion proceed to protect and enforce its
rights and the rights of Holders of Senior Notes by such appropriate judicial proceedings as the Trustee shall deem most effectual
to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in the Indenture or
in aid of the exercise of any power granted herein, or to enforce any other legal or equitable right vested in the Trustee by
the Indenture or by law, provided, however, that the Company shall not, as a result of the bringing of such judicial proceedings,
be required to pay any amount representing or measured by reference to the principal of, or any interest on, the Senior Notes
prior to any date on which the principal of, or any interest on, the Senior Notes would have otherwise been payable by the Company.

 

If
a Default occurs, the Trustee may commence a proceeding for the winding-up of the Company and/or prove in a winding-up of the
Company, provided that the Trustee may not, upon the occurrence of a Default, declare the principal amount of any of the Outstanding
Senior Notes to be due and payable.

 

Failure
to make any payment in respect of this Senior Note shall not be a Default if such payment is withheld or refused and an Opinion
of Counsel is delivered to the Trustee concluding that such sums were not paid in order to comply with any fiscal or other law
or regulation or with the order of any court of competent jurisdiction, provided, however, that the Trustee may by notice to the
Company require the Company to take such action (including but not limited to proceedings for a declaration by a court of competent
jurisdiction) as the Trustee may be advised in an Opinion of Counsel, upon which opinion the Trustee may conclusively rely, is
appropriate and reasonable in the

 

    A-9

    

    

circumstances
to resolve such doubt, in which case the Company shall forthwith take and expeditiously proceed with such action and shall be
bound by any final resolution of the doubt resulting therefrom. If any such action results in a determination that the relevant
payment can be made without violating any applicable law, regulation or order then the provisions of the preceding sentence shall
cease to have effect and the payment shall become due and payable on the expiration of 14 days (in the case of payments under
Section 5.03(a) of the Senior Indenture) or seven days (in the case of payments under Section 5.03(b) of the Senior Indenture)
after the Trustee gives written notice to the Company informing it of such resolution.

 

Subject
to applicable law, no Holder may exercise or claim any right of set-off, counterclaim, combination of accounts, compensation or
retention in respect of any amount owed to it by the Company arising under or in connection with the Senior Notes. The Holders
of Senior Notes by their acceptance thereof will be deemed to have waived any right of set-off, counterclaim, combination of accounts,
compensation and retention with respect to the Senior Notes or the Senior Indenture (or between the obligations under or in respect
of the Senior Notes and any liability owed by a Holder to the Company) that they might otherwise have against the Company.

 

No
remedy against the Company other than as referred to in Article 5 of the Senior Indenture shall be available to the Trustee or
the Holders, whether for the recovery of amounts owing in respect of the Senior Notes or under the Indenture or in respect of
any breach by the Company of any of its other obligations under or in respect of the Senior Notes or under the Senior Indenture,
except that the Trustee and the Holders shall have such rights and powers as they are required to have under the Trust Indenture
Act.

 

Amounts
to be paid on the Senior Notes of this Series will be made without deduction or withholding for, or on account of, any and all
present and future income, stamp and other taxes, levies, imposts, duties, charges or fees, levied, collected, withheld or assessed
by or on behalf of the United Kingdom or any political subdivision or authority thereof or therein having the power to tax (the
“Taxing Jurisdiction”), unless such deduction or withholding is required by law. If at any time a Taxing Jurisdiction
requires the Company to make such deduction or withholding, the Company will pay additional amounts with respect to the principal
of, and interest and any other payments on, the Senior Notes of this series (“Additional Amounts”) that are necessary
in order that the net amounts paid to the Holders, after the deduction or withholding, shall equal the amounts which would have
been payable on the Senior Notes if the deduction or withholding had not been required. However, this will not apply to
any such tax, levy, impost, duty, charge or fee, which would not have been deducted or withheld but for the fact that:

 

(i)
the Holder or the Beneficial Owner of a Senior Note is a domiciliary, national or resident of, or engaging in business or maintaining
a permanent establishment or is physically present in, the Taxing Jurisdiction or otherwise has some connection with the Taxing
Jurisdiction other than the holding or ownership of a Senior Note, or the collection of any payment of (or in respect of) principal
of, or interest or other payments on, any Senior Note,

 

    A-10

    

    

(ii)
except in the case of winding-up in the United Kingdom, the relevant Senior Note is presented (where presentation is required)
for payment in the United Kingdom,

 

(iii)
the relevant Senior Note is presented (where presentation is required) for payment more than 30 days after the date payment became
due or was provided for, whichever is later, except to the extent that the Holder would have been entitled to the Additional Amounts
on presenting the same for payment at the close of that 30 day period,

 

(iv)
the Holder or the Beneficial Owner of the relevant Senior Note or the Beneficial Owner of any payment of (or in respect of) principal
of, or interest or other payments on, the Senior Note failed to comply with a request of the Company or its liquidator or other
authorized person addressed to the Holder (x) to provide information concerning the nationality, residence or identity of the
Holder or such Beneficial Owner or (y) to make any declaration or other similar claim to satisfy any requirement, which in the
case of (x) or (y), is required or imposed by a statute, treaty, regulation or administrative practice of the Taxing Jurisdiction
as a precondition to exemption from all or part of the tax, levy, impost, duty, charge or fee,

 

(v)
the deduction or withholding is imposed by reason of any agreement with the U.S. Internal Revenue Service in connection with Sections
1471-1474 of the U.S. Internal Revenue Code and the U.S. Treasury regulations thereunder (“FATCA”), any intergovernmental
agreement between the United States and the United Kingdom or any other jurisdiction with respect to FATCA, or any law, regulation
or other official guidance enacted or issued in any jurisdiction implementing, or relating to, FATCA or any intergovernmental
agreement; or

 

(vi)
any combination of clauses (i) through (v) above,

 

nor shall
Additional Amounts be paid with respect to the principal of, or any interest or other payments on, the Senior Notes to any Holder
who is a fiduciary or partnership or any person other than the sole Beneficial Owner of such payment to the extent such payment
would be required by the laws of any Taxing Jurisdiction to be included in the income for tax purposes of a beneficiary or partner
or settlor with respect to such fiduciary or a member of such partnership or a Beneficial Owner who would not have been entitled
to such Additional Amounts, had it been the Holder. With respect to any deduction or withholding made by any of the Company, the
Trustee, the Paying Agent or another withholding agent from any amount payable on, or in respect of, the Senior Notes in the events
described in clauses (i) through (vi) above, the amounts so deducted or withheld shall be treated as having been paid to the holder
of the Senior Notes, and no additional amounts will be paid on account of any such deduction or withholding. None of the Company,
the Trustee, the Paying Agent or another withholding agent shall have any liability in connection with their compliance with any
such withholding obligation under applicable law.

 

    A-11

    

    

References
herein to the payment of the principal of or interest or other payments on the Senior Notes shall be deemed to include mention
of the payment of Additional Amounts provided for in the foregoing paragraph to the extent that, in such context, Additional Amounts
are, were or would be payable under the foregoing provisions.

 

In
addition to the Company’s right to redeem the Senior Notes on June 15, 2022, the Senior Notes of this series are redeemable,
as a whole but not in part, at the option of the Company (subject to, if and to the extent required by the Relevant Regulator
or the Loss Absorption Regulations, the Company giving notice to the Relevant Regulator and the Relevant Regulator granting the
Company permission), on not less than 30 nor more than 60 days’ notice, on any Payment Date, at a redemption price equal
to 100% of the principal amount, together with accrued but unpaid interest, in respect of the Senior Notes to the date fixed for
redemption, if, at any time, the Company shall determine that as a result of a change in or amendment to the laws or regulations
of the Taxing Jurisdiction (including any treaty to which such Taxing Jurisdiction is a party), or any change in the application
or interpretation of such laws or regulations (including a decision of any court or tribunal) which change or amendment becomes
effective on or after June 15, 2020:

 

(a)
in making payment under the Senior Notes the Company has or will or would on the next Payment Date become obligated to pay Additional
Amounts;

 

(b)
the payment of interest on the next Payment Date in respect of the Senior Notes would be treated as a “distribution”
within the meaning of Chapter 2 of Part 23 of the Corporation Tax Act 2010 of the United Kingdom (or any statutory modification
or re-enactment thereof for the time being); or

 

(c)
on the next Payment Date the Company would not be entitled to claim a deduction in respect of such payment of interest in computing
its United Kingdom taxation liabilities (or the value of such deduction to the Company would be materially reduced).

 

In
any case where the Company shall determine that, in accordance with Section 11.08 of the Senior Indenture, it is entitled to redeem
the Senior Notes of this series, the Company shall be required to deliver to the Trustee prior to the giving of any notice of
redemption (i) a written legal opinion of independent United Kingdom counsel of recognized standing (selected by the Company)
in a form satisfactory to the Trustee confirming that the relevant change or amendment has occurred and that the Company is entitled
to exercise its right of redemption and (ii) an Officer’s Certificate, evidencing compliance with such provisions and stating
that it is entitled to redeem the Senior Notes pursuant to the terms of the Senior Notes.

 

The
Company may, at the Company’s option (but subject to, if and to the extent then required by the Relevant Regulator or the
Loss Absorption Regulations, the Company giving notice to the Relevant Regulator and the Relevant Regulator granting the Company
permission), having given not less than 30 nor more than 60 days’ notice to holders, redeem all but not some only of the
Senior Notes outstanding at any time at 100%

 

    A-12

    

    

of
their principal amount together with any accrued but unpaid interest to the date of redemption, if immediately prior to the giving
of the notice referred to above, the Company satisfies the Trustee that a Loss Absorption Disqualification Event has occurred.
Any redemption or purchase of Senior Notes (other than redemption on the relevant maturity date), and any modification to the
terms of the Senior Notes or any indenture relating thereto, is subject to, if and to the extent then required by the Relevant
Regulator or the Loss Absorption Regulations, the Company giving notice to the Relevant Regulator and the Relevant Regulator granting
the Company permission therefor and otherwise to compliance with the Loss Absorption Regulations if and to the extent then required
thereunder.

 

If
the Company elects to redeem the Senior Notes of this series, the Senior Notes will cease to accrue interest from the date of
redemption, provided the redemption price has been paid in accordance with the Indenture.

 

Upon
payment of (i) the amount of principal (and premium, if any) so declared due and payable and (ii) accrued and unpaid interest,
all of the Company’s obligations in respect of the payment of the principal of (and premium, if any), and accrued and unpaid
interest on, the Senior Notes of this series shall terminate.

 

Notwithstanding
any other agreements, arrangements, or understandings between the Company and any Holder or Beneficial Owner of this Senior Note,
by purchasing or acquiring this Senior Note, each Holder (including each Beneficial Owner) of this Senior Note acknowledges, accepts,
agrees to be bound by and consents to the exercise of any U.K. bail-in power by the relevant U.K. resolution authority that may
result in (i) the reduction or cancellation of all, or a portion, of the principal amount of, or interest on, the Senior Notes;
(ii) the conversion of all, or a portion, of the principal amount of, or interest on, the Senior Notes into shares or other securities
or other obligations of the Company or another person; and/or (iii) the amendment or alteration of the maturity of the Senior
Notes, or amendment of the amount of interest due on the Senior Notes, or the dates on which interest becomes payable, including
by suspending payment for a temporary period; which U.K. bail-in power may be exercised by means of variation of the terms of
the Senior Notes solely to give effect to the exercise by the relevant U.K. resolution authority of such U.K. bail-in power. Each
Holder and Beneficial Owner of the Senior Notes further acknowledges and agrees that the rights of the Holders and/or Beneficial
Owners under the Senior Notes are subject to, and will be varied, if necessary, solely to give effect to, the exercise of any
U.K. bail-in power by the relevant U.K. resolution authority.

 

By
purchasing or acquiring the Senior Notes, each Holder and Beneficial Owner of the Senior Notes:

 

(i)
acknowledges and agrees that the exercise of the U.K. bail-in power by the relevant U.K. resolution authority in respect of the
Senior Notes shall not give rise to a default or an Event of Default for purposes of Section 315(b) (Notice of Default) and Section
315(c) (Duties of the Trustee in Case of Default) of the Trust Indenture Act;

 

    A-13

    

    

(ii)
to the extent permitted by the Trust Indenture Act, waives any and all claims against the Trustee for, agrees not to initiate
a suit against the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee takes,
or abstains from taking, in either case in accordance with the exercise of the U.K. bail-in power by the relevant U.K. resolution
authority with respect to the Senior Notes; and

 

(iii)
acknowledges and agrees that, upon the exercise of any U.K. bail-in power by the relevant U.K. resolution authority, (a) the Trustee
shall not be required to take any further directions from Holders of the Senior Notes under Section 5.12 of the Senior Indenture,
and (b) neither the Senior Indenture nor the Twelfth Supplemental Indenture shall impose any duties upon the Trustee whatsoever
with respect to the exercise of any U.K. bail-in power by the relevant U.K. resolution authority. Notwithstanding the foregoing,
if, following the completion of the exercise of the U.K. bail-in power by the relevant U.K. resolution authority, any of the Senior
Notes remain outstanding (for example, if the exercise of the U.K. bail-in power results in only a partial write-down of the principal
of the Senior Notes), then the Trustee’s duties under the Indenture shall remain applicable with respect to the Senior Notes
following such completion to the extent that the Company and the Trustee shall agree pursuant to a supplemental indenture or an
amendment to the Twelfth Supplemental Indenture.

 

By
purchasing or acquiring the Senior Notes, each Holder and Beneficial Owner that acquires its Senior Notes in the secondary market
shall be deemed to acknowledge and agree to be bound by and consent to the same provisions specified in the Indenture to the same
extent as the Holders and Beneficial Owners of the Senior Notes that acquire the Senior Notes upon their initial issuance, including,
without limitation, with respect to the acknowledgement and agreement to be bound by and consent to the terms of the Senior Notes
related to the U.K. bail-in power.

 

By
purchasing or acquiring the Senior Notes, each Holder and Beneficial Owner shall be deemed to have (i) consented to the exercise
of any U.K. bail-in power as it may be imposed without any prior notice by the relevant U.K. resolution authority of its decision
to exercise such power with respect to the Senior Notes and (ii) authorized, directed and requested DTC and any direct participant
in DTC or other intermediary through which it holds such Senior Notes to take any and all necessary action, if required, to implement
the exercise of any U.K. bail-in power with respect to the Senior Notes as it may be imposed, without any further action or direction
on the part of such Holder or Beneficial Owner or the Trustee.

 

No
repayment of the principal amount of the Senior Notes or payment of interest on the Senior Notes shall become due and payable
after the exercise of any U.K. bail-in power by the relevant U.K. resolution authority unless, at the time that such repayment
or payment, respectively, is scheduled to become due, such repayment or payment would be

 

    A-14

    

    

permitted
to be made by the Company under the laws and regulations of the United Kingdom and the European Union applicable to the Company
and the Group.

 

Upon
the exercise of the U.K. bail-in power by the relevant U.K. resolution authority with respect to the Senior Notes, the Company
shall provide a written notice to DTC as soon as practicable regarding such exercise of the U.K. bail-in power for purposes of
notifying Holders of such occurrence. The Company shall also deliver a copy of such notice to the Trustee for information purposes.

 

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 Senior Notes to be affected thereby by the Company and the Trustee with the
consent of the Holders of not less than a majority in principal amount of the Senior Notes at the time outstanding of each such
series. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the outstanding
Senior Notes, on behalf of the Holders of all Senior Notes of such series, to waive compliance by the Company with certain provisions
of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder
of this Senior Note shall be conclusive and binding upon such Holder and upon all future Holders of this Senior Note and of any
Senior Note issued in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Senior Note.

 

No
reference herein to the Indenture and no provision of this Senior Note or of the Indenture shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay, if and when due and payable, the principal of (and premium, if any)
and interest on, this Senior Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

As
set forth in, and subject to, the provisions of the Indenture, no Holder of the Senior Notes will have the right to institute
any proceeding with respect to the Indenture, this Senior Note or any remedy thereunder; provided, however, that such limitations
do not apply to a suit instituted by the Holder hereof for the enforcement of payment of the principal or interest as and when
the same shall have become due and payable in accordance with the terms hereof and the Indenture.

 

No
reference herein to the Indenture and no provision of this Senior Note or of the Indenture shall alter or impair the right of
the Holder of this Senior Note, which is absolute and unconditional, to receive payment of the principal of (and premium, if any)
and interest on, this Senior Note when due and payable in accordance with the provisions of this Senior Note and the Indenture.

 

This
Senior Note will be governed by the laws of the State of New York.

 

Unless
otherwise defined herein, all terms used in this Senior Note which are defined in the Indenture shall have the meanings assigned
to them in the Indenture.

 

    A-15Exhibit 4.2

 

PACIFIC PREMIER BANCORP, INC.

and

Wilmington Trust, National Association

as Trustee, Paying Agent and Security
Registrar

SECOND SUPPLEMENTAL INDENTURE

Dated as of June 15, 2020

to

INDENTURE

Dated as of May 8, 2019

5.375% Fixed-to-Floating Rate Subordinated
Notes due June 15, 2030

 

SECOND SUPPLEMENTAL
INDENTURE (this “Second Supplemental Indenture”), dated as of June 15, 2020, between PACIFIC PREMIER BANCORP,
INC., a Delaware corporation (the “Company”), and Wilmington Trust, National Association, a national banking
association, organized and existing under the laws of the United States of America, as trustee (the “Trustee”),
Security Registrar and Paying Agent.

 

RECITALS

 

WHEREAS, the Company
and the Trustee have heretofore executed and delivered the Indenture, dated as of May 8, 2019 (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 debentures, notes, bonds or other evidences of indebtedness
(hereinafter called the “Securities”) and the issuance from time to time of Securities under the Indenture;
and

 

WHEREAS, Section 901(7)
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 or terms of Securities of a series thereunder as permitted by Sections 201 and 301 of the Base Indenture; and

 

WHEREAS, pursuant to
Section 301 of the Base Indenture, the Company desires to establish a new series of Securities under the Indenture to be known
as its “5.375% Fixed-to-Floating Rate Subordinated Notes due June 15, 2030” (the “Notes”),
to establish the form and terms and conditions of the Notes, as provided in this Second Supplemental Indenture, and to provide
for the initial issuance of Notes in the aggregate principal amount of $150,000,000; and

 

WHEREAS, the Company
has requested that the Trustee execute and deliver this Second Supplemental Indenture; and all requirements necessary to make (i)
this Second 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 Second Supplemental Indenture
has been duly authorized in all respects; and

 

     

     

    

 

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:

 

ARTICLE 1

DEFINITIONS

 

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

 

Section 1.2.         
Definition of Terms. For all purposes of this Second 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 Second Supplemental Indenture conflicts with the definition of that capitalized term in
the Base Indenture, the definition of that capitalized term in this Second Supplemental Indenture shall control for purposes of
this Second 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 Second 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 Second Supplemental Indenture to Sections
refer to the corresponding Sections of this Second Supplemental Indenture, and (ii) the terms “herein,” “hereof,”
 “hereunder” and any other word of similar import refer to this Second Supplemental Indenture; and

 

(f)          for
purposes of this Second 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.

 

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

 

    2

     

    

 

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

 

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

 

(a)         Compounded
SOFR;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    3

     

    

 

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

 

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

 

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

 

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

 

For the avoidance
of doubt, for purposes of the definitions of Benchmark Replacement Date and Benchmark Transition Event, references to the Benchmark
also include any reference rate underlying the Benchmark (for example, if the Benchmark becomes Compounded SOFR, references to
the Benchmark would include SOFR).

 

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

 

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

 

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

 

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

 

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

 

    4

     

    

 

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

 

“Business
Day”, when used with respect to any Place of Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which
is not a day on which banking institutions in that Place of Payment are authorized or obligated by law or executive order to close.

 

“Calculation
Agent” means the Company, or any other successor appointed by the Company, acting as calculation agent. The Company may
appoint itself, or any of its affiliates, as the Calculation Agent.

 

“Compounded
SOFR” means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for
this rate, and conventions for this rate being established by the Calculation Agent in accordance with:

 

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

 

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

 

For the avoidance of
doubt, the calculation of Compounded SOFR shall exclude the Benchmark Replacement Adjustment (if applicable) and the spread of
517 basis points per annum.

 

“Corporate
Trust Office” means the office of the Trustee at which at any particular time this Second Supplemental Indenture shall
be administered, which office, at the date of the execution of this Second Supplemental Indenture, is located at 1100 North Market
Street, Wilmington, Delaware 19890, Attention: Pacific Premier Bancorp, Inc. Administrator, or such other address as the Trustee
may designate from time to time by notice to the Holders of the Notes and the Company, or the principal corporate trust office
of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders
of the Notes and the Company).

 

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

 

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

 

    5

     

    

 

“Federal Reserve
Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org,
or any successor source.

 

“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
1 or December 1 (whether or not a Business Day) immediately preceding such Fixed Rate Interest Payment Date, through June 15, 2025.

 

“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 1, June 1, September 1 and December 1 (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.

 

“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.

 

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

 

    6

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

“Senior Indebtedness”
means:

 

(a)       any
of the Company’s indebtedness (including the principal of, and premium, if any, and unpaid interest on such indebtedness)
for borrowed or purchased money including overdrafts, foreign exchange contracts, currency exchange agreements, interest rate protection
agreements, and any loans or advances from banks, whether or not evidenced by bonds, debentures, notes, or other written instruments,
including any obligations of the Company to general creditors, depositors or trade creditors;

 

(b)       the
Company’s obligations under letters of credit, bank guarantees or bankers’ acceptances;

 

(c)       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;

 

    7

     

    

 

(d)       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 (a), (b), and (c), 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;

 

(e)       all
obligations and liabilities in respect of leases required in conformity with generally accepted accounting principles to be accounted
for as capitalized lease obligations on the Company’s balance sheet;

 

(f)        all
obligations and other liabilities under any lease or related document in connection with the lease of real property which provides
that the Company is contractually obligated to purchase or cause a third party to purchase the leased property and thereby guarantee
a minimum residual value of the leased property to the lessor;

 

(g)       all
direct or indirect guarantees or similar agreements in respect of, and the Company’s obligations or liabilities to purchase,
acquire or otherwise assure a creditor against loss in respect of, indebtedness, obligations or liabilities of others of the type
described in clauses (a) through (f) above; and

 

(h)       any
and all refinancings, replacements, deferrals, renewals, extensions and refundings of, or amendments, modifications or supplements
to, any indebtedness, obligation or liability of the kind described in clauses (a) through (g) above, other than obligations ranking
on a parity with the Notes or ranking junior to the Notes.

 

Notwithstanding the
foregoing, if 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 in this definition of Senior Indebtedness will have the meaning as described in that rule or interpretation.

 

The term “Senior
Indebtedness” does not include: (i) any indebtedness of the Company which, when incurred, and without respect to any election
under Section 1111(b) of the U.S. Bankruptcy Code, was without recourse to the Company; (ii) any indebtedness of the Company to
any of its Subsidiaries; (iii) indebtedness to any employee of the Company; (iv) any liability for taxes; (v) any indebtedness
of the Company that is expressly subordinate in right of payment to any other indebtedness of the Company; or (vi) renewals, extensions,
modifications and refundings of any such indebtedness.

 

Notwithstanding anything
to the contrary herein and for purposes of clarity, the term “Senior Indebtedness” does not include the Company’s
5.75% Subordinated Notes Due 2024, the Company’s 7.125% Subordinated Notes Due 2025 and the Company’s 4.875% Subordinated
Notes due 2029 (collectively, the “Debentures”), which Debentures shall rank pari passu with the Notes
in the right of payment and upon the Company’s liquidation.

 

    8

     

    

 

“SOFR”
means the secured overnight financing rate published by the Federal Reserve Bank of New York, as the administrator of the Benchmark
(or a successor administrator), on the Federal Reserve Bank of New York’s Website.

 

“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, as a result of:

 

(a)       an
amendment to or change (including any announced prospective amendment or change) in any law or treaty, or any regulation thereunder,
of the United States or any of its political subdivisions or taxing authorities;

 

(b)       a
judicial decision, administrative action, official administrative pronouncement, ruling, regulatory procedure, regulation, notice
or announcement, including any notice or announcement of intent to adopt or promulgate any ruling, regulatory procedure or regulation
(any of the foregoing, an “administrative or judicial action”);

 

(c)       an
amendment to or change in any official position with respect to, or any interpretation of, an administrative or judicial action
or a law or regulation of the United States that differs from the previously generally accepted position or interpretation; or

 

(d)       a
threatened challenge asserted in writing in connection with an audit of the Company’s federal income tax returns or positions
or a similar audit of any of its Subsidiaries, or a publicly known threatened challenge asserted in writing against any other taxpayer
that has raised capital through the issuance of securities that are substantially similar to the Notes, in each case, occurring
or becoming publicly known on or after the original issue date of the Notes, there is more than an insubstantial risk that interest
payable by the Company on the Notes is not, or, within 90 days of the date of such opinion, will not be, deductible by the Company,
in whole or in part, for United States federal income tax purposes.

 

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

 

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

 

“Three-Month
Term SOFR” means the rate for Term SOFR for a tenor of three months that is published by the Term SOFR Administrator
at the Reference Time for any interest period, as determined by the Calculation Agent after giving effect to the Three-Month Term
SOFR Conventions. All percentages used in or resulting from any calculation of Three-Month Term SOFR shall be rounded, if necessary,
to the nearest one-hundred-thousandth of a percentage point, with 0.000005% rounded up to 0.00001%.

 

    9

     

    

 

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

 

“Tier 2 Capital
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 amendment or 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 original 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 Federal Reserve Board,
as then in effect and applicable to the Company.

 

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

 

The terms “Company,”
 “Trustee,” “Base Indenture,” “Second Supplemental Indenture,” “Indenture,”
 “Securities” and “Notes” shall have the respective meanings set forth in the recitals to
this Second 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 “5.375% Fixed-to-Floating Rate Subordinated Notes due June 15, 2030.” 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 Second 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 Second 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 15, 2030 (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.

 

    10

     

    

 

Section 2.3.          Form, Payment and Appointment. Except as provided in Section 305 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.

 

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 Second Supplemental Indenture, expressly agree to such terms and conditions and to be bound
thereby.

 

The Security 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.

 

The Notes will be issuable
and may be transferred only in minimum denominations of $2,000 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 (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 original issue date of 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 original issue date of the Notes to, but excluding, June 15, 2025, unless redeemed prior
to such date pursuant to Article 3 hereof, the Notes will bear interest at the annual rate of 5.375%, computed on the basis of
a 360-day year consisting of twelve 30-day months, and payable semi-annually in arrears on each June 15 and December 15, beginning
on December 15, 2020 and ending on June 15, 2025 (each such payment date, a “Fixed Rate Interest Payment Date,”
with the period from, and including, the original issue date 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 on such payment will accrue for the period
from and after such scheduled Fixed Rate Interest Payment Date).

 

    11

     

    

 

ii)     From, and including
June 15, 2025 to, but excluding, the Stated Maturity Date, unless redeemed subsequent to June 15, 2025 but prior to the Stated
Maturity Date pursuant to Article 3 hereof, the Notes will bear interest at an annual rate equal to the then-current Three-Month
Term SOFR, reset quarterly, plus 517 basis points (5.17%), payable quarterly in arrears on March 15, June 15, September 15, and
December 15 of each year, beginning on June 15, 2025 (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 15, 2025 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”). 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. The Calculation Agent shall notify the
Trustee (if the Trustee is not the Calculation Agent) in writing of the interest rate for each Floating Rate Period promptly after
the Reference Time (or such other date of determination for the applicable Benchmark). 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. Notwithstanding the foregoing, if Three-Month Term SOFR (or other applicable Benchmark) is less
than zero, then Three-Month Term SOFR (or other such Benchmark) shall be deemed to be zero.

 

(c)         The
interest payable, and punctually paid or duly provided for, on any Fixed Rate Interest Payment Date shall be paid to the Person
in whose name the Note is registered at the close of business on the Fixed Rate Interest Record Date for such interest through
June 15, 2025, and thereafter, the interest so payable, and punctually paid or duly provided for on any Floating Rate Interest
Payment Date shall be paid to the Person in whose name this Note is registered at the close of business on the Floating Rate Interest
Record Date for such interest on any Floating Rate Interest Payment Date. Notwithstanding the foregoing, 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, subject to DTC’s applicable procedures.

 

    12

     

    

 

(d)         The Company shall take such actions as are necessary to ensure that from the commencement of the Floating Rate Period for
so long as any of the Notes remain outstanding there will at all times be a Calculation Agent appointed to calculate Three-Month
Term SOFR in respect of each Floating Rate Period. The calculation of Three-Month Term SOFR for each applicable Floating Rate Period
by the Calculation Agent will (in the absence of manifest error) be final and binding. The Calculation Agent’s determination
of any interest rate and its calculation of interest payments for any period will be maintained on file at the Calculation Agent’s
principal offices, will be made available to any Holder of the Notes upon request and will be provided to the Trustee. The Calculation
Agent (if the Trustee is not the Calculation Agent) shall have all the rights, protections and indemnities afforded to the Trustee
under the Indenture and hereunder. The Calculation Agent may be removed by the Company at any time. If the Calculation Agent is
unable or unwilling to act as Calculation Agent or is removed by the Company, the Company will promptly appoint a replacement Calculation
Agent. The Calculation Agent may not resign its duties without a successor having been duly appointed; provided, that if a successor
Calculation Agent has not been appointed by the Company and such successor accepted such position within 30 days after the giving
of notice of resignation by the Calculation Agent, then the resigning Calculation Agent may petition, at the expense of the Company,
any court of competent jurisdiction for the appointment of a successor Calculation Agent with respect to such series. The Trustee
shall not be under any duty to succeed to, assume or otherwise perform, any duties of the Calculation Agent, or to appoint a successor
or replacement in the event of the Calculation Agent’s resignation or removal or to replace the Calculation Agent in the
event of a default, breach or failure of performance on the part of the Calculation Agent with respect to the Calculation Agent’s
duties and obligations hereunder. For the avoidance of doubt, if at any time there is no Calculation Agent appointed by the Company,
then the Company shall be the Calculation Agent.

 

(e)         Effect of Benchmark Transition Event

 

i)      If the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred
on or prior to the Reference Time in respect of any determination of the Benchmark on any date, then the Benchmark Replacement
will replace the then-current Benchmark for all purposes relating to the Notes during the Floating Rate Period in respect of such
determination on such date and all determinations on all subsequent dates. In connection with the implementation of a Benchmark
Replacement, the Calculation Agent will have the right to make Benchmark Replacement Conforming Changes from time to time.

 

ii)     Notwithstanding
anything set forth in Section 2.5(b)(ii) above, if the Calculation Agent determines on or prior to the relevant Reference Time
that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR,
then the provisions set forth in this Section 2.5(e) will thereafter apply to all determinations of the interest rate on the Notes
during the Floating Rate Period. After a Benchmark Transition Event and its related Benchmark Replacement Date have occurred,
the interest rate on the Notes for each interest period during the Floating Rate Period will be an annual rate equal to the Benchmark
Replacement plus 517 basis points.

 

    13

     

    

 

iii)    The
Calculation Agent is expressly authorized to make certain determinations, decisions and elections under the terms of the Notes,
including with respect to the use of Three-Month Term SOFR as the Benchmark and under this Section 2.5(e). Any determination,
decision or election that may be made by the Calculation Agent under the terms of the Notes, including any determination with
respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision
to take or refrain from taking any action or selection (A) will be conclusive and binding on the Holders of the Notes and the
Trustee absent manifest error, (B) if made by the Company as Calculation Agent, will be made in the Company’s sole discretion,
(C) if made by a Calculation Agent other than the Company, will be made after consultation with the Company, and the Calculation
Agent will not make any such determination, decision or election to which the Company reasonably objects and (D) notwithstanding
anything to the contrary herein or in the Indenture, shall become effective without consent from the Holders of the Notes, the
Trustee or any other party. If the Calculation Agent fails to make any determination, decision or election that it is required
to make under the terms of the Notes, then the Company will make such determination, decision or election on the same basis as
described above.

 

iv)    The
Company (or its Calculation Agent, if the Trustee is not the Calculation Agent) shall notify the Trustee in writing (i) upon the
occurrence of the Benchmark Transition Event or the Benchmark Replacement Date, and (ii) of any Benchmark Replacements, Benchmark
Replacement Conforming Changes and other items affecting the interest rate on the Notes after a Benchmark Transition Event.

 

v)     The
Trustee (including in its capacity as Paying Agent) shall have no (i) responsibility or liability for the (A) Three-Month Term
SOFR Conventions, (B) selection of an alternative reference rate to Three-Month Term SOFR (including, without limitation, whether
the conditions for the designation of such rate have been satisfied or whether such rate is a Benchmark Replacement or an Unadjusted
Benchmark Replacement), (C) determination or calculation of a Benchmark Replacement, or (D) determination of whether a Benchmark
Transition Event or Benchmark Replacement Date has occurred, and in each such case under clauses (A) through (D) above shall be
entitled to conclusively rely upon the selection, determination, and/or calculation thereof as provided by the Company or its
Calculation Agent, as applicable, and (ii) liability for any failure or delay in performing its duties hereunder as a result of
the unavailability of a Benchmark rate as described in the definition thereof, including, without limitation, as a result of the
Company’s or Calculation Agent’s failure to select a Benchmark Replacement or the Calculation Agent’s failure
to calculate a Benchmark. The Trustee shall be entitled to rely conclusively on all notices from the Company or its Calculation
Agent regarding any Benchmark or Benchmark Replacement, including, without limitation, in regards to Three-Month Term SOFR Conventions,
a Benchmark Transition Event, Benchmark Replacement Date, and Benchmark Replacement Conforming Changes. The Trustee shall not
be responsible or liable for the actions or omissions of the Calculation Agent, or any failure or delay in the performance of
the Calculation Agent’s duties or obligations, nor shall it be under any obligation to monitor or oversee the performance
of the Calculation Agent. The Trustee shall be entitled to conclusively rely on any determination made, and any instruction, notice,
Officers’ Certificate or other instruction or information provided by the Calculation Agent without independent verification,
investigation or inquiry of any kind. The Trustee shall not be obligated to enter into any amendment or supplement hereto that
adversely impacts its rights, duties, obligations, immunities or liabilities (including, without limitation, in connection with
the adoption of any Benchmark Replacement Conforming Changes).

 

vi)    If the then-current Benchmark is Three-Month Term SOFR, the Calculation Agent will have the right to establish the Three-Month
Term SOFR Conventions, and if any of the foregoing provisions concerning the calculation of the interest rate and the payment of
interest during the Floating Rate Period are inconsistent with any of the Three-Month Term SOFR Conventions determined by the Calculation
Agent, then the relevant Three-Month Term SOFR Conventions will apply.

 

    14

     

    

 

Section 2.6.            Subordination Provisions.

 

(a)         Except
as otherwise specified, the Company agrees, and each Holder of the Notes by accepting the Notes agrees, that the indebtedness
evidenced by the Notes is subordinated in right of payment, to the extent and in the manner provided in this Section 2.6, to the
prior payment in full of all Senior Indebtedness and that the subordination is for the benefit of the holders of Senior Indebtedness.

 

(b)         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:

 

i)      holders
of Senior Indebtedness shall be entitled to receive payment in full in cash of the principal thereof, and premium, if any, additional
amounts owing in respect thereof, if any, and interest thereon (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;

 

ii)     until
the Senior Indebtedness is paid in full in cash, any indebtedness to which Holders of the Notes or the Trustee would be entitled
but for this Section 2.6 shall be made to holders of Senior Indebtedness as their interests may appear for the application to
the payment thereof, except that Holders of the Notes may receive securities that are subordinated to Senior Indebtedness to at
least the same extent as the Notes; and

 

iii)    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 Section 2.6.

 

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 of the Notes, 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.

 

    15

     

    

 

(c)         The Company may not pay principal of, or premium, if any or interest on the Notes and may not acquire any Notes for cash
or property other than capital stock of the Company if:

 

i)      any default in the payment of principal, premium, if any, or interest on any Senior Indebtedness beyond any applicable grace
period with respect thereto occurs and is continuing;

 

ii)     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

 

iii)    a default under any Senior Indebtedness is the subject of judicial proceedings or the Trustee or the Paying Agent receives
a notice of the default from a person who may give it pursuant to Section 2.6(k) hereof.

 

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

 

i)      the default is cured or waived; or

 

ii)     this Section 2.6 otherwise permits the payments or acquisition at that time.

 

(d)          In the event that any Notes are declared due and payable before their Stated Maturity Date, 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, or premium, 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 Articles Four
and Thirteen of the Base Indenture not in violation of the Indenture shall not be subject to the claims of holders of Senior Indebtedness,
unless, in avoidance of doubt, it was deposited in connection with any declaration of acceleration under Article Five of the Base
Indenture.

 

In the event that,
notwithstanding the foregoing, 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 Representative with respect to such Senior Indebtedness.

    16

     

    

 

(e)              
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 Section 2.6 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
holders of Senior Indebtedness or their Representatives, and must be paid over or delivered and transferred to the Representative
with respect to such Senior Indebtedness for application, 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.

 

(f)               
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 Section 2.6. The Company shall provide all relevant contact, wiring and other information
as the Trustee may require in order to pay over or deliver to the Representative representing the Senior Indebtedness any funds
or other payment or distribution in accordance with this Section 2.6. The Trustee shall be entitled to conclusively rely on any
such information provided by the Company.

 

(g)              
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 such Holders have been applied to the payment of Senior Indebtedness. A payment or distribution made under
this Section 2.6 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.

 

(h)              
This Section 2.6 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:

 

i)                
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 and interest on the Notes as and when the same shall become due and payable in accordance with their terms;

 

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

 

iii)              
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 Section 2.6 to pay principal of, or premium, if any or interest on any of the Notes on the due date, such failure
shall constitute a default under the Indenture.

 

    17

     

    

 

(i)                
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.

 

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

 

(k)              
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 Section 2.6. 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. 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. Notwithstanding anything herein to the contrary, the Company’s obligation
to pay, and the Company’s payment of, the amounts required by Section 607 of the Base Indenture are excluded from the operation
of this Section 2.6. For the sake of clarity, such payments are not subordinated to the Company’s Senior Indebtedness.

 

(l)                
Nothing contained in this Section 2.6 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 2.6(b) hereof or under
the conditions described in Section 2.6(c) or 2.6(d) hereof, from making payments at any time of or on account of the principal
of, or premium, 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 under the Indenture to the payment of or on account of the principal of, or premium,
if any or interest on the Notes or the retention of such payment by the Holders of the Notes, if, at the time of such application
by the Trustee, it did not have knowledge (in accordance with Section 2.6(f) hereof) that such payment would have been prohibited
by the provisions of this Section 2.6.

 

(m)            
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 Section 2.6 and appoints the Trustee his attorney-in-fact
for any and all such purposes.

 

(n)              
Upon any payment or distribution of assets of the Company referred to in this Section 2.6, the Trustee, subject to the provisions
of Section 602 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 Section 2.6.

 

    18

     

    

 

(o)              
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 Section 2.6 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 Section 2.6 in addition to or in place of the Trustee.

 

Section 2.7.         
Events of Default; Acceleration. Neither the Trustee nor the Holders of the Notes shall have the right to accelerate
the Stated Maturity Date unless there is an Event of Default specified under clause (6) or (7) of Section 501 of the Base Indenture.
If an Event of Default specified in clause (6) or (7) of Section 501 of the Base Indenture occurs, then the principal amount of
all of the Outstanding Notes, including any accrued and unpaid interest and premium, if any, on the Notes 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 502 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.        
Defeasance; No Covenant Defeasance. Section 1302 of the Base Indenture shall be applicable to the Notes. Section
1303 of the Base Indenture shall not be applicable to the Notes.

 

ARTICLE 3

REDEMPTION OF THE NOTES

 

Section 3.1.         
Optional Redemption. The Company may, at its option, redeem the Notes, in whole or in part, on any Interest Payment
Date on or after June 15, 2025, 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; provided that, for the avoidance of doubt,
the payment of such accrued and unpaid interest paid as a part of the Redemption Price shall satisfy in full the obligation of
the Company to pay accrued and unpaid interest on the Notes redeemed from and including the most recent Interest Payment Date on
which all accrued and unpaid interest on the Notes was paid or provided for to, but excluding, the Redemption Date. Any partial
redemption will be made in accordance with the Base Indenture. The Company’s election to redeem any Notes shall be evidenced
by a Board Resolution and provided to the Trustee in the form of an Officers’ Certificate at least 60 days prior to the Redemption
Date, or such shorter notice as may be acceptable to the Trustee.

 

    19

     

    

 

Section 3.2.         
Redemption Upon Special Events. The Company may also, at its option, redeem the Notes before the Stated Maturity
Date in whole, but not in part, at any time, upon the occurrence of a Tier 2 Capital Event, a Tax 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; provided that, for the avoidance of doubt,
the payment of such accrued and unpaid interest paid as a part of the Redemption Price shall satisfy in full the obligation of
the Company to pay accrued and unpaid interest on the Notes redeemed from and including the most recent Interest Payment Date on
which all accrued and unpaid interest on the Notes was paid or provided for through, but excluding, the Redemption Date. The Company’s
election to redeem any Notes shall be evidenced by a Board Resolution, and in case of any redemption at the election of the Company
of less than all the Notes, such election must be provided to the Trustee in the form of an Officers’ Certificate at least
60 days prior to the Redemption Date, or such shorter notice as may be acceptable to the Trustee. If any conditions precedent to
such optional redemption have not been satisfied, the Company shall provide written notice to the Trustee and each Holder of the
Notes prior to the close of business prior to the Redemption Date fixed by the Company in the same manner in which the notice of
redemption was given. Upon receipt of such notice, the notice of redemption shall be rescinded or delayed as provided in such notice.
In no event shall the Trustee be responsible to satisfy any such conditions precedent, including making a deposit of money required
to effectuate the redemption.

 

Section 3.3.         
Redemption Approval. No redemption of the Notes by the Company prior to the Stated Maturity Date pursuant to this
Article 3 shall be made without the prior approval of the Federal Reserve Board if such prior approval is or will be 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 3, 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 Officers’ 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 3.4.         
Redemption Procedures. Notice of redemption must be provided to the Holders of the Notes to be redeemed not less
than 30 days nor more than 60 days prior to the applicable Redemption Date. The provisions of Article Eleven of the Base Indenture
shall apply to any redemption of the Notes pursuant to this Article 3 unless they are inconsistent with this Article 3.

 

ARTICLE 4

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, electronic or facsimile signature) may approve, such approval
to be conclusively evidenced by their execution thereof.

 

    20

     

    

 

ARTICLE 5

ISSUE OF NOTES

 

Section 5.1.          
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 date of 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, if any additional subordinated Securities are not fungible
with the initial Notes for U.S. income tax purposes, such additional subordinated Securities will have a separate CUSIP number.

 

ARTICLE 6

IMMUNITY OF INCORPORATOR, STOCKHOLDERS, EMPLOYEES,

OFFICERS AND DIRECTORS

 

No incorporator, director,
officer, employee or stockholder of the Company, as such, shall have any liability for any obligations of the Company under the
Notes or this Second 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 thereof waives and releases all such liability.

 

ARTICLE 7

MISCELLANEOUS

 

Section 7.1.         
Ratification of Base Indenture. The Base Indenture, as supplemented by this Second Supplemental Indenture, is in
all respects ratified and confirmed, and this Second 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 Second Supplemental Indenture apply solely
with respect to the Notes.

 

Section 7.2.         
Trustee Not Responsible for Recitals. The recitals contained herein and the Notes, except the Trustee’s certificate
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 Second 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 7.3.         
Governing Law; Waiver of Jury Trial. THIS SECOND SUPPLEMENTAL INDENTURE AND EACH NOTE ISSUED HEREUNDER SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. THE ISSUER, THE TRUSTEE AND THE HOLDERS OF THE NOTES HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS SECOND SUPPLEMENTAL INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

    21

     

    

 

Section 7.4.         
Separability Clause. In case any provision in this Second 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 7.5.         
Counterparts Originals; Electronic Signatures. This Second 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 Second 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 Second Supplemental
Indenture as to the parties hereto and may be used in lieu of the original Second 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. The words “execution,” “signed,” “signature,” and words of similar import in this
Indenture and the Notes shall be deemed to include electronic or digital signatures or the keeping of records in electronic form,
each of which shall be of the same effect, validity, and enforceability as manually executed signatures or a paper-based recordkeeping
system, as the case may be, to the extent and as provided for under applicable law, including the Electronic Signatures in Global
and National Commerce Act of 2000 (15 U.S.C. §§ 7001-7006), the Electronic Signatures and Records Act of 1999 (N.Y. State
Tech. §§ 301-309), or any other similar state laws based on the Uniform Electronic Transmissions Act; provided that,
notwithstanding anything herein to the contrary, the Trustee is not under any obligation to agree or accept electronic signatures
in any form or in any format unless expressly agreed to by such Trustee pursuant to procedures approved by such Trustee.

 

Section 7.6.         
Benefits of Second Supplemental Indenture. Nothing in this Second Supplemental Indenture or in the Notes, express
or implied, shall give to any Person, other than the parties to this Second Supplemental Indenture and their successors under this
Second 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 Second Supplemental Indenture.

 

Section 7.7.         
Conflict with Base Indenture. To the extent that any provision of this Second Supplemental Indenture relating to
the Notes is inconsistent with any provision of the Base Indenture, such provision of this Second Supplemental Indenture shall
control with respect to the Notes.

 

Section 7.8.         
Trust Indenture Act Controls. This Second 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 Second Supplemental Indenture limits, qualifies or conflicts with another provision that is required or deemed to be included
in this Second Supplemental Indenture by the Trust Indenture Act, such required or deemed provision shall control.

 

    22

     

    

 

Section 7.9.         
Rights, Protections and Immunities of the Trustee. All of the rights, protections, benefits, immunities and indemnities
afforded or given to the Trustee, the Security Registrar and the Paying Agent pursuant to the Base Indenture shall apply to and
be enforceable by the Trustee, the Security Registrar and the Paying Agent acting in their respective capacities relating to the
Notes and pursuant to this Second Supplemental Indenture mutatis mutandi as if set forth and incorporated herein. The Trustee,
the Security Registrar and the Paying Agent is acting hereunder, not in its individual capacity, but solely in its capacity as
Trustee, Security Registrar or Paying Agent, as applicable, for the Notes under the Indenture.

  

Section 7.10.     
USA PATRIOT Act. The parties hereto acknowledge that in accordance with Section 326 of the USA PATRIOT Act, the Trustee,
like all financial institutions and in order to help the government fight the funding of terrorism and money laundering, are required
to obtain, verify and record information that identifies each person or legal entity that establishes a relationship or opens an
account with it. The Company agrees that it will provide the Trustee with such information as the Trustee may request to satisfy
the requirements of the USA PATRIOT Act.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

 

    23

     

    

 

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

 

	 	PACIFIC PREMIER BANCORP, INC.
	 	 
	 	By:	/s/
    Ronald J. Nicolas, Jr.
	 	 	Name: Ronald J. Nicolas, Jr.
	 	 	Title: Senior Executive
    Vice President and Chief Financial Officer

 

[Signature Page to Second Supplemental
Indenture]

 

    

     

    

 

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

 

	 	WILMINGTON TRUST, NATIONAL ASSOCIATION,
	 	as Trustee
	 	 
	 	By:	/s/ Michael Wass
	 	 	Name: Michael Wass
	 	 	Title: Vice President

 

[Signature Page to Second Supplemental
Indenture]

 

 

    

     

    

 

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 NOTE 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 NOTE 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, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT 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, 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.

 

    A-1

     

    

 

PACIFIC PREMIER BANCORP, INC.

5.375% Fixed-to-Floating Rate Subordinated
Note due June 15, 2030

 

	
        No. 1

        $150,000,000
	
        CUSIP 69478X AE5

        ISIN US69478XAE58

 

PACIFIC PREMIER BANCORP, Inc., a Delaware
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 $150,000,000 (or such other amount as set forth in the Schedule of Increases or Decreases in Global Note attached hereto)
on June 15, 2030 (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, June 15, 2020 to, but excluding, June 15, 2025 or any earlier
redemption date, at a rate of 5.375% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, commencing
December 15, 2020 and ending on June 15, 2025 (each such payment date, a “Fixed Rate Interest Payment Date,”
with the period from, and including, June 15, 2020 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 15, 2025 to, but excluding, the Stated Maturity Date
or any earlier redemption date, at a rate equal to the then-current Benchmark, reset quarterly, plus 517 basis points (5.17%),
payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing June 15, 2025 through
the Stated Maturity Date or any earlier redemption date (each such payment date, 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 15, 2025 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”). Interest payable on this Note during any Fixed Rate Period shall be computed on the basis of a 360-day
year consisting of twelve 30-day months. In the event that any scheduled Fixed Rate Interest Payment date on this Note 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 additional interest shall accrue. Interest payable on this Note during any
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 the then-current Benchmark 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 case, the amounts payable on such Business Day will include interest accrued to, but excluding,
such Business Day. Notwithstanding the foregoing, if the Benchmark is less than zero, the Benchmark shall be deemed to be zero.

 

    A-2

     

    

 

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 so payable, and punctually paid or duly
provided for, (i) on any Fixed Rate Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name
this Note is registered at the close of business on the Fixed Rate Interest Record Date for such interest, which shall be the close
of business on the June 1 or December 1 (whether or not a Business Day) immediately preceding such Fixed Rate Interest Payment
Date, through June 15, 2025, and (ii) thereafter, the interest so payable, and punctually paid or duly provided for on any Floating
Rate Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Note is registered at the
close of business on the Floating Rate Interest Record Date for such interest, which shall be the close of business on the March
1, June 1, September 1 or December 1 (whether or not a Business Day) immediately preceding such Floating Rate Interest Payment
Date.

 

Payment of the principal of and interest
on this Note will be made at an office or agency of the Company maintained for that 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]

 

    A-3

     

    

 

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

 

	 	PACIFIC PREMIER BANCORP, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	 	WILMINGTON TRUST, NATIONAL ASSOCIATION,
	 	as Trustee
	 	 
	 	By:	 
	 	 	Authorized Officer
	 	Date:

 

    A-4

     

    

 

REVERSE OF NOTE

PACIFIC PREMIER BANCORP, INC.

5.375% Fixed-to-Floating Rate Subordinated
Notes due June 15, 2030

 

This Note is one of
a duly authorized issue of Securities of the Company of a series designated as the “5.375% Fixed-to-Floating Rate Subordinated
Notes due June 15, 2030” (herein called the “Notes”) initially issued in an aggregate principal amount
of $150,000,000 on June 15, 2020. 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 May
8, 2019 (the “Base Indenture”), between the Company and Wilmington Trust, National Association, as Trustee (herein
called the “Trustee,” which term includes any successor trustee), as supplemented and amended by the Second
Supplemental Indenture between the Company and the Trustee, dated as of June 15, 2020 (the “Second Supplemental Indenture,”
and the Base Indenture as supplemented and amended by the Second 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, 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 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, and 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 other unsecured
subordinated indebtedness of the Company which are not by their 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 Sections 501(6) and (7) of the
Base Indenture and Section 2.7 of the Second Supplemental Indenture. Accordingly, the Holder of this Note has no right to accelerate
the maturity of this Note in the event that the Company fails to pay interest on any of the Notes, or fails to perform any other
obligations under the Notes or in the Indenture that are applicable to the Notes.

 

    A-5

     

    

 

The Company may, at
its option, redeem the Notes, in whole or in part, on any Interest Payment Date on or after June 15, 2025. The Company may also,
at its option, redeem the Notes before the Stated Maturity Date, in whole, but not in part, at any time, upon the occurrence of
a Tier 2 Capital Event, a Tax 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. No redemption of the Notes by the Company prior to the Stated Maturity Date shall be made without the prior approval
of the Federal Reserve Board if such prior approval is or will be required at the scheduled Redemption Date. The provisions of
Article Eleven of the Base Indenture and Article 3 of the Second 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 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, and in some limited instances prescribed therein, even without such consent.
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 compliance by the Company with certain provisions of the Indenture
and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall
be conclusive and binding upon all Holders of this Note 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 305 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 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.

 

    A-6

     

    

 

The Notes are issuable
only in registered form without coupons in minimum denominations of $2,000 and any 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 all purposes, whether or not 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 the 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 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 305 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.

 

    A-7

     

    

 

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 the 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 the Notes by the Depositary, or for maintaining, supervising or reviewing any records of the Depositary
relating to the Notes.

 

The Trustee will act
as the Company’s Paying Agent with respect to the Notes through its Corporate Trust Office. 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 Security
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 the 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.

 

    A-8

     

    

 

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 such assignee as
agent to transfer this Security on the books of Pacific Premier Bancorp, Inc. 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.

 

    A-9

     

    

 

SCHEDULE OF INCREASES OR DECREASES
IN GLOBAL NOTE

 

The initial principal
amount of this Global Note is $150,000,000. 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

 increase or decrease	 	Signature of authorized

 signatory of Trustee
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

    A-10

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