Document:

Exhibit  10.6

                              EMPLOYMENT AGREEMENT

      THIS AGREEMENT (the "Agreement") is made as of the 30th day of September,
2005 between Aduromed Corporation, a Delaware corporation (the "Company"), and
Kevin T. Dunphy (the "Employee"), an individual residing at 2 Limekiln Court,
Bethel, Connecticut 06801;

                                WITNESSETH THAT:

      WHEREAS, the Employee has extensive and valuable experience in the
business of the Company; and

      WHEREAS, the Company desires to employ the Employee, and the Employee
desires so to be employed by the Company;

      NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, the Company and the Employee hereby agree as follows:

 1.   Employment.

      The Company shall, and does hereby, employ the Employee, and the Employee
shall, and does hereby accept employment from the Company to act as its chief
financial officer. In such capacity the Employee shall at all times during the
term of his employment hereunder have the title of Chief Financial Officer; and
shall

            (i) devote during normal business hours his full attention,
knowledge, experience, skills and best endeavors to the business and affairs of
the Company,

            (ii) perform services and discharge duties set forth herein as the
Company's chief financial officer in a trustworthy manner and

            (iii) perform all duties consistent with (a) policies established
from time to time by the Company and (b) all applicable legal requirements.

2.    Authority.

      Employee shall have the responsibility and authority to manage the
business development in the ordinary course of both the Company and its various
subsidiaries, if any, including, but not limited to,

                  (i) subject to approval by the Chief Executive Officer of the
Company, the hiring and terminating of employees relating to the financial
affairs of the Company; and

                  (ii) performing all other functions necessary to provide for
the continued operation in the ordinary course of the Company and any of
subsidiaries as shall from time to time be established.

3.    Term.

      Subject to the provisions for termination herein provided, the term of
this Agreement shall commence as of the 29th day of September, 2005, and shall
continue in full force and effect until the Company's close of business on
September 28, 2010. At the expiration of the original term of this Agreement on
September 28. 2010, and upon each anniversary thereafter, the Term of this
Agreement shall be deemed renewed and extended for successive one-year periods,
provided that neither party, within ninety (90) days prior to such expiration
date or any anniversary thereof, shall have given written notice to the other
that this Agreement shall not be renewed or extended. (Such term, including all
renewals and extensions, herein called the "Term".)

4.    Compensation.

      The Company shall compensate the Employee during the Term of this
Agreement as follows:

      (a) Base Salary. The Employee shall be paid a base salary ("Base Salary")
of not less than One Hundred and Thirty Thousand Dollars ($130,000.00) per year
in installments consistent with the Company's usual practices. The President and
Chief Executive Office and the Board shall review the Employee's Base Salary on
October 1 of each year or more frequently, at the times prescribed in salary
administration practices applied generally to management employees of the
Company.

      (b) Performance Bonus. The Employee shall be entitled to an annual cash
bonus (the "Bonus") based upon the Company's attainment of reasonable financial
objectives to be determined annually by the Board. The maximum annual Bonus
shall not exceed one hundred percent (100%) of the applicable year's ending Base
Salary and shall be payable only in the event the Board determines, in its sole
and exclusive discretion, that the particular year's financial objectives have
been met. The timing for payment of any such Bonus shall be in accordance with
the Company's bonus plan, if any shall have been established by the Board, but
in any event not later than seventy-five (75) days following the close of the
particular year.

      (c) Withholding. All compensation payable to the Employee hereunder shall
be subject to withholding, as required by law.

5.    Benefits.

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      (a) Generally. The Employee shall be eligible to participate in any
employee benefit or welfare plan, including any life, accident, medical
insurance, retirement or pension plan or program maintained or which shall be
maintained from time to time during the Term by the Company for its employees or
executive employees and their immediate families, on the same basis and subject
to the same requirements and limitations as are or shall be applicable to other
employees or executive employees of the Company.

      (b) Perquisites. The Employee shall be provided with (i) the use of a car
of his choosing (such as an Volvo S80 or comparable vehicle) and the Company
shall pay or reimburse the Executive for all fuel, maintenance and insurance
therefor and (ii) a cellular phone for which the Company shall pay all monthly
fees and charges.

      (c) Supplemental Benefits. In addition the Company, at its cost and
expense, shall provide to Employee, to the extent not covered by plans or
programs described in Section 5 above, medical and dental coverage of Employee,
his wife and his children (up to the age of eighteen and thereafter, while full
time students, to the age of 23 years); and shall provide to the Employee
insurance plans covering his disability, long term care and life with limits of
not less than $500,000 (with beneficiaries of his choosing).

      (d) Long Term Disability Benefits. The Company, at its cost and expense,
shall provide to Employee, to the extent not covered by plans or programs
described in Section 5 above, long term disability insurance in an amount equal
to 100% of the Employees then base salary for a period not to be less than 10
years or through retirement age if such disability is not corrected and the
Employee is not able due to such disability to return to full time employment.

6.    Vacation.

      Employee shall be entitled to four (4) weeks' vacation each year during
the Term of this Agreement, and any renewal or extension thereof , to be taken
at times not inconvenient to the Company.

7.    Expenses.

      The Company shall reimburse the Employee for all reasonable business
expenditures made by him in connection with, or in furtherance of, his
employment hereunder, upon presentation and approval of itemized expense
statements, receipts or vouchers or such other supporting information as may
from time to time be reasonably requested by the Company. Air travel by Employee
in excess of 2 hours in-flight time shall be in "business class". Otherwise,
travel of a shorter duration shall be "standard or economy class".

8.    Confidentiality.

      During the Term of his employment, and at all times thereafter, the
Employee

                                        3

shall not, without the prior written consent of the Company, divulge to any
third party or use for his own benefit or the benefit of any third party or for
any purpose other than the exclusive benefit of the Company, any confidential or
proprietary business or technical information revealed, obtained or developed in
the course of his employment with the Company and which is otherwise the
property of the Company or any of its affiliated corporations, including, but
not limited to, trade secrets, customer lists, formulae and processes of
manufacture; provided, however, that nothing herein contained shall restrict the
Employee's ability to make such disclosures during the course of his employment
as may be necessary or appropriate to the effective and efficient discharge of
his duties to the Company.

 9.   Proprietary Intellectual Property.

      The Employee shall treat as for the sole benefit of the Company and fully
and promptly disclose and assign to it without additional compensation, all
proprietary intellectual property, including, without limitation, all ideas,
discoveries, inventions and improvements, patentable or not, as well as all
formulae, processes, know-how, patent rights and letters patent therefor filed
in the United States and all other countries, and any and all rights and
interests in, to and under the same, made, conceived, acquired, reduced to
practice, or otherwise possessed, during the term of his employment by the
Company, alone or with other employees, during or after usual working hours
either on or off the job, and which are related to the Company's business. In
addition, the Employee agrees that, upon request, he will promptly make all
disclosures, execute all instruments and papers, and perform all acts whatsoever
necessary or desired by the Company to vest in and assign to the Company, its
successors, assigns and nominees, fully and completely, all rights created or
contemplated by this SECTION 9 and which may be necessary or desirable to enable
the Company, its successors, assigns and nominees to secure and enjoy the full
benefits and advantages thereof, including any and all applications, writings or
other documents, as may be necessary to apply for and obtain any patent,
copyright or trademark registration by the Company or any assignment thereof.
Employee shall at all times cooperate with and assist the Company in preserving
and enforcing the aforesaid rights which assistance and cooperation shall
include but not be limited to providing the Company with all information and
documents necessary to prosecute and defend such rights. The covenants made by
the Employee under the terms of this SECTION 9 shall be enforceable by the
Company for so long as employee shall be employed by, or a consultant to, the
Company and for twelve (12) months immediately thereafter unless, during the
term of this Agreement, he shall have been terminated without cause.

10.   Property.

      Both during the Term of his employment and thereafter, the Employee shall
not remove from the Company's offices or premises any Company documents,
records, notebooks, files, correspondence, reports, memoranda and similar
materials or property of any kind unless necessary in accordance with the duties
and responsibilities of his employment. In the event that any such material or
property is removed, it shall be returned as promptly as possible. The Employee
shall not make, retain, remove or

                                        4

distribute any copies, or divulge to any third person the nature or contents of
any of the foregoing or of any other oral or written information to which he may
have access, except as disclosure shall be necessary in the performance of his
duties. On the termination of his employment with the Company, the Employee
shall leave with or return to the Company all originals and copies of the
foregoing then in his possession or subject to his control, whether prepared by
the Employee or by others.

11.   Termination By Company.

      (a) Termination for Cause. The employment of the Employee may be
terminated for Cause at any time; provided, however, that before the Company may
terminate the Employee's employment for Cause for any reason that is susceptible
to cure, the Company shall first send the Employee written notice of its
intention to terminate this Agreement for Cause, specifying in such notice the
reasons for such Cause and those conditions that, if satisfied by the Employee,
would cure the reasons for such Cause, and the Employee shall have 60 days from
receipt of such written notice to satisfy such conditions. If such conditions
are satisfied within such 60-day period, the Company shall so advise the
Employee in writing. If such conditions are not satisfied within such 60-day
period, the Company may thereafter terminate this Agreement for Cause on written
Notice of Termination (as defined in SECTION 13(A)) delivered to the Employee
describing with specificity the grounds for termination. Immediately on
termination pursuant to this SECTION 11(A), the Company shall pay to the
Employee in a lump sum his then current Base Salary under SECTION 4(A) on a
prorated basis to the Date of Termination (as defined in SECTION 13(B)). On
termination pursuant to this SECTION 11(A), the Employee shall forfeit (i) his
Bonus under SECTION 4(B) for the year in which such termination occurs, and (ii)
all unvested Options and other options, warrants and rights relating to capital
stock of the Company, except those issued prior to the date of this Agreement.
For purposes of this Agreement, Cause shall mean: (1) a material breach of any
of the terms of this Agreement that is not immediately corrected following
written notice of default specifying such breach; (2) repeated intoxication with
alcohol or drugs while on Company premises during its regular business hours to
such a degree that, in the reasonable judgment of the other managers of the
Company, the Employee is abusive or incapable of performing his duties and
responsibilities under this Agreement; (3) conviction of a felony; or (4)
misappropriation of property belonging to the Company and/or any of its
affiliates.

      (b) Termination Without Cause. The employment of the Employee may be
terminated without Cause at any time upon delivery to the Employee of a written
Notice of Termination (as defined in SECTION 13(A)). On the Date of Termination
(as defined in SECTION 13(B)) pursuant to this SECTION 11(B), the Company shall
pay to the Employee in a lump sum in lieu of payments under SECTIONS 4(A), 4(B)
AND 5 for the remainder of the Term an amount equal to the sum of (i) all Base
Salary payable under SECTION 4(A) through the termination date, (ii) a pro-rated
portion of the maximum Bonus available to the Employee under SECTION 4(B) for
the year in which the termination occurs, (iii) an amount equal to two times the
Employee's Total Compensation for the twelve months preceding the termination
date, and (iv) Three Hundred Thousand Dollars ($300,000.00).

                                        5

In addition, provided that Employee has complied with the provisions of SECTION
16 hereof, on each of the first and second anniversaries of the Date of
Termination of the Employee's employment, the Company shall pay the Employee in
a lump sum One Hundred Fifty Thousand Dollars ($150,000.00). For purposes of
this SECTION 11(B), the Employee's Total Compensation shall equal the sum of the
Base Salary, maximum Bonus of 100% of such Base Salary (whether or not the
entire amount was actually earned or paid to the Employee), fair value of
vehicle allowance and other benefits and expense reimbursements described in
SECTIONS 4(D) AND 5. In addition, on termination of the Employee under this
SECTION 11(B), all of the Employee's unvested Options and other options,
warrants and rights relating to capital stock of the Company shall immediately
vest and become exercisable. The term of any such options (including the
Options), warrants and rights shall be extended to the third anniversary of the
Employee's termination. The Employee acknowledges that extending the term of any
incentive stock option pursuant to this SECTION 11(B), or SECTION 11(C), 11(D)
OR 12(A), could cause such option to lose its tax-qualified status under the
Internal Revenue Code of 1986, as amended (the "Code"), and agrees that the
Company shall have no obligation to compensate the Employee for any additional
taxes he incurs as a result.

      (c) Termination on Disability. If during the Term the Employee should fail
to perform his duties hereunder on account of physical or mental illness or
other incapacity which the Board shall in good faith determine renders the
Employee incapable of performing his duties hereunder, and such illness or other
incapacity shall continue for a period of more than six (6) consecutive months
("Disability"), the Company shall have the right, on written Notice of
Termination (as defined in SECTION 13(A)) delivered to the Employee to terminate
the Employee's employment under this Agreement. During the period that the
Employee shall have been incapacitated due to Disability, the Employee shall
continue to receive the full Base Salary provided for in SECTION 4(A) hereof at
the rate then in effect until the Date of Termination (as defined in SECTION
13(B)) pursuant to this SECTION 11(C). On the Date of Termination pursuant to
this SECTION 10(C), the Company shall pay to the Employee in a lump sum an
amount equal to (i) the Base Salary remaining payable to the Employee under
SECTION 4(A) for the full remaining Term, plus (ii) a pro-rated portion of the
maximum Bonus available to the Employee under SECTION 4(B) for the year in which
the termination occurs. In addition, on such termination, all of the Employee's
unvested Options and other options, warrants and rights relating to capital
stock of the Company shall immediately vest and become exercisable. The term of
any such options (including the Options), warrants and rights shall be extended
to the third anniversary of the Employee's termination.

      (d) Termination on Death. If the Employee shall die during the Term, the
employment of the Employee shall thereupon terminate. On the Date of Termination
(as defined in SECTION 13(B)) pursuant to this SECTION 11(D), the Company shall
pay to the Employee's estate the payments and other benefits applicable to
termination without Cause set forth in clauses (i), (ii) and (iii) of SECTION
11(B) hereof. In addition, on termination of the Employee under this SECTION
11(D), all of the Employee's unvested Options and other options, warrants and
rights relating to capital stock of the Company shall immediately vest and
become exercisable. The term of any such options (including

                                        6

the Options), warrants and rights shall be extended to the fifth anniversary of
the Employee's termination. The provisions of this SECTION 11(D) shall not
affect the entitlements of the Employee's heirs, executors, administrators,
legatees, beneficiaries or assigns under any employee benefit plan, fund or
program of the Company.

12.   Termination By Employee.

      (a) Termination for Good Reason. The Employee may terminate his employment
hereunder for Good Reason (as defined below). On the Date of Termination
pursuant to this SECTION 12(A), the Employee shall be entitled to receive, and
the Company agrees to pay and deliver, the payments and other benefits
applicable to termination without Cause set forth in SECTION 11(B) hereof at the
times and subject to the conditions set forth therein. In addition, on
termination of the Employee under this SECTION 12(A), all of the Employee's
Options and other options, warrants and rights relating to capital stock of the
Company shall immediately vest and become exercisable. The term of any such
options (including the Options), warrants and rights shall be extended to the
fifth anniversary of the Employee's termination.

For purposes of this Agreement, "Good Reason" shall mean: (1) assignment to the
Employee of duties inconsistent with his responsibilities as they existed on the
date of this Agreement; a substantial alteration in the title(s) of the Employee
(so long as the existing corporate structure of the Company is maintained); or a
substantial alteration in the status of the Employee in the Company organization
as it existed on the date of this Agreement; (2) the relocation of the Company's
principal executive office to a location more than fifty (50) miles from its
present location; (3) a reduction by the Company in the Employee's Base Salary
without the Employee's approval; (4) a failure by the Company to continue in
effect, without substantial change, any benefit plan or arrangement in which the
Employee was participating or the taking of any action by the Company which
would adversely affect the Employee's participation in or materially reduce his
benefits under any benefit plan (unless such changes apply equally to all other
management employees of Company); (5) any material breach by the Company of any
provision of this Agreement without the Employee having committed any material
breach of his obligations hereunder, which breach is not cured within twenty
(20) days following written notice thereof to the Company of such breach; or (6)
the failure of the Company to obtain the assumption of this Agreement by any
successor entity.

13.   Provisions Applicable to Termination of Employment.

      (a) Notice of Termination. Any purported termination of Employee's
employment by the Company pursuant to SECTION 11 shall be communicated by Notice
of Termination to the Employee as provided herein, and shall state the specific
termination provisions in this Agreement relied on and set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of
the Employee's employment ("Notice of Termination"). If the Employee terminates
under SECTION 12, he shall give the Company a Notice of Termination.

                                        7

      (b) Date of Termination. For all purposes, "Date of Termination" shall
mean, for Disability, thirty (30) days after Notice of Termination is given to
the Employee (provided the Employee has not returned to duty on a full-time
basis during such 30-day period), or, if the Employee's employment is terminated
by the Company for any other reason or by the Employee, the date on which a
Notice of Termination is given.

      (c) Benefits on Termination. On termination of this Agreement by the
Company pursuant to SECTION 11 or by the Employee pursuant to SECTION 12, all
profit-sharing, deferred compensation and other retirement benefits payable to
the Employee under benefit plans in which the Employee then participated shall
be paid to the Employee in accordance with the provisions of the respective
plans.

14.   Gross Up Payments.

      If all or any portion of any payment or benefit that the Employee is
entitled to receive from the Company pursuant to this Agreement (a "Payment")
constitutes an "excess parachute payment" within the meaning of Section 280G of
the Code, and as such is subject to the excise tax imposed by Section 4999 of
the Code or to any similar Federal, state or local tax or assessment (the
"Excise Tax"), the Company or its successors or assigns shall pay to the
Employee an additional amount (the "Gross-Up Payment") with respect to such
Payment. The amount of the Gross-Up Payment shall be sufficient that, after
paying (a) any Excise Tax on the Payment, (b) any Federal, state or local income
or employment taxes and Excise Tax on the Gross-Up Payment, and (c) any interest
and penalties imposed in respect of the Excise Tax, the Employee shall retain an
amount equal to the full amount of the Payment. For the purpose of determining
the amount of any Gross-Up Payment, the Employee shall be deemed to pay Federal
income taxes at the highest marginal rate applicable in the calendar year in
which the Gross-Up Payment is made, and state and local income taxes at the
highest marginal rate applicable in the state and locality where the Employee
resides on the date the Gross-Up Payment is made, net of the maximum reduction
in Federal income taxes that could be obtained from deducting such state and
local taxes. The Gross-Up Payment with respect to any Payment shall be paid to
the Employee within ten (10) days after the Internal Revenue Service or any
other taxing authority issues a notice stating that an Excise Tax is due with
respect to the Payment, unless the Company undertakes to challenge the taxing
authority on the applicability of such Excise Tax and indemnifies the Employee
for (a) any amounts ultimately determined to be payable, including the Excise
Tax and any related interest and penalties, (b) all expenses (including
attorneys' and experts' fees) reasonably incurred by the Employee in connection
with such challenge, as such expenses are incurred, and (c) all amounts that the
Employee is required to pay to the taxing authorities during the pendency of
such challenge (such amounts to be repaid by the Employee to the Company if they
are ultimately refunded to the Employee by the taxing authority).

15.   Non-Competition and Non-Solicitation.

      (a) In consideration of the provisions hereof and the payments provided
under SECTION 11, for the Restricted Period (as hereinafter defined), the
Employee will not,

                                        8

except as specifically provided below, anywhere in any state of the United
States in which the Company is engaged in the conduct of its business as of such
termination date (the "Restricted Territory"), directly or indirectly, acting
individually or as the owner, shareholder, partner or management employee of any
entity, (i) engage in the operation of disposing or converting medical waste,
(ii) enter the employ as a manager of, or render any personal services to or for
the benefit of, or assist in or facilitate the solicitation of customers for, or
receive remuneration in the form of management salary, commissions or otherwise
from, any business engaged in such activities in such jurisdictions; or (iii)
receive or purchase a financial interest in, make a loan to, or make a gift in
support of, any such business in any capacity, including without limitation, as
a sole proprietor, partner, shareholder, officer, director, principal agent or
trustee; provided, however, that the Employee may own, directly or indirectly,
solely as an investment, securities of any business traded on any national
securities exchange or quoted on any NASDAQ market, provided the Employee is not
a controlling person of, or a member of a group which controls, such business
and further provided that the Employee does not, in the aggregate, directly or
indirectly, own five percent (5%) or more of any class of securities of such
business. The term "Restricted Period" shall mean the earlier of (i) the maximum
period allowed under applicable law and (ii)(x) in the case of a Change of
Control, until the third anniversary of the effective date of the Change of
Control, (y) in the case of a termination by the Company without Cause pursuant
to SECTION 11(B) or by the Employee for Good Reason pursuant to SECTION 12(A)
and provided the Company has made the payments required under SECTION 11(B) OR
12(A), as the case may be, until the second anniversary of the Date of
Termination, or (z) in the case of Termination for Cause by the Company pursuant
to SECTION 11(A) or by the Employee without Good Reason pursuant to SECTION
12(B), until the first anniversary of the Date of Termination.

      (b) If the final judgment of a court of competent jurisdiction declares
that any term or provision of this SECTION 15 is invalid or unenforceable, the
parties agree that the court making the determination of invalidity or
unenforceability shall have the power to reduce the scope, duration or area of
the term or provision, to delete specified words or phrases or to replace any
invalid or unenforceable term or provision with a term or provision that is
valid and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision, and this Agreement shall be
enforceable as so modified after the expiration of the time within which the
judgment may be appealed.

16.   Indemnification.

As an employee and agent of the Company, the Employee shall be fully indemnified
by the Company to the fullest extent permitted by applicable law in connection
with his employment hereunder.

17.   Survival of Provisions.

The obligations of the Company under SECTION 15 of this Agreement shall survive
both the termination of the Employee's employment and this Agreement.

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18.   No Duty to Mitigate; No Offset.

The Employee shall not be required to mitigate damages or the amount of any
payment contemplated by this Agreement, nor shall any such payment be reduced by
any earnings that the Employee may receive from any other sources or offset
against any other payments made to him or required to be made to him pursuant to
this Agreement.

19.   Assignment; Binding Agreement.

The Company may assign this Agreement to any parent, subsidiary, affiliate or
successor of the Company. This Agreement is not assignable by the Employee and
is binding on him and his executors and other legal representatives. This
Agreement shall bind the Company and its successors and assigns and inure to the
benefit of the Employee and his heirs, executors, administrators, personal
representatives, legatees or devisees. The Company shall assign this Agreement
to any entity that acquires its assets or business, and shall cause it to assume
the Company's obligations and liabilities arising hereunder.

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20.   Notice.

Any written notice under this Agreement shall be personally delivered to the
other party or sent by certified or registered mail, return receipt requested
and postage prepaid, to such party at the address set forth in the records of
the Company or to such other address as either party may from time to time
specify by written notice.

21.   Entire Agreement; Amendments.

This Agreement contains the entire agreement of the parties relating to the
Employee's employment and supersedes all oral or written prior discussions,
agreements and understandings of every nature between them. This Agreement may
not be changed except by an agreement in writing signed by the Company and the
Employee.

22.   Waiver.

The waiver of a breach of any provision of this Agreement shall not operate or
as be construed to be a waiver of any other provision or subsequent breach of
this Agreement.

23.   Governing Law and Jurisdictional Agreement.

This Agreement shall be governed by and construed and enforced in accordance
with the laws of the State of New York. The parties irrevocably and
unconditionally submit to the jurisdiction and venue of any court, federal or
state, situated within New York County, New York, and within the State of
Connecticut, for the purpose of any suit, action or other proceeding arising out
of, or relating to or in connection with, this Agreement.

24.   Severability.

In case any one or more of the provisions contained in this Agreement is, for
any reason, held invalid in any respect, such invalidity shall not affect the
validity of any other provision of this Agreement, and such provision shall be
deemed modified to the extent

      [The balance of this page is blank]

                                       11

necessary to make it enforceable.

25.   Enforcement.

It is agreed that it is impossible to measure fully, in money, the damage which
will accrue to the Company in the event of a breach or threatened breach of
SECTIONS 8, 9 OR 10 of this Agreement, and, in any action or proceeding to
enforce the provisions of SECTIONS 8, 9 OR 10 hereof, the Employee waives the
claim or defense that the Company has an adequate remedy at law and will not
assert the claim or defense that such a remedy at law exists. The Company is
entitled to injunctive relief to enforce the provisions of such sections as well
as any and all other remedies available to it at law or in equity without the
posting of any bond.

26.   Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed an
original and both of which together shall constitute one and the same
instrument.

27    Due Authorization.

The execution of this Agreement has been duly authorized by the Company by all
necessary corporate action.

      IN WITNESS WHEREOF, the parties have executed and delivered this
Employment Agreement as of the day and year set forth above.

ADUROMED CORPORATION, a Delaware corporation

By: /s/ Damien R. Tanaka
Name: Damien R. Tanaka
Title: President and CEO

EMPLOYEE:

/s/ Kevin T. Dunphy
Kevin T. Dunphy

                                       12exv10w1

 

Exhibit 10.1

	 	 	 	 	 
	
	 	 	 	 
	 

	 	 	 	M&I Marshall & Ilsley Bank
	 

	 	 	 	770 North Water Street
	 

	 	 	 	Milwaukee, WI 53202-3509
	 

	 	 	 	414765-7700
	 

	 	 	 	mibank.com

March 24, 2006

Mr. Daniel R. Kadolph

Senior Vice President & CFO

Midwest Banc Holdings, Inc.

501 W. North Avenue

Melrose Park, IL60160

Dear Mr. Kadolph:

     This Letter Agreement (the “Agreement”) is made and entered into as of this 24th
day of March, 2006, by and between Midwest Banc Holdings, Inc. (the “Customer”) and M&I Marshall &
Ilsley Bank (the “Lender”).

     Customer covenants that so long as any obligation is owed to Lender or Lender has any
outstanding commitment to lend to Customer, under the terms and conditions of any promissory note
from Customer to Lender under the Revolving Loan(s), in the aggregate principal amount of
$50,000,000.00 (the “Revolving Credit Limit”) dated March 24, 2006, or under any note(s) evidencing
a loan, (the “Note(s)”) and all extensions, renewals or modifications of the Note(s):

	 	1.	 	Lender shall have received the following security documents (the “Security
Documents”) in form and substance satisfactory to Lender:

	 	(i)	 	Promissory Note(s);
	 
	 	(ii)	 	Commercial Pledge Agreement;
	 
	 	(iii)	 	Agreement to Deliver Collateral (100% of Midwest Bank and
Trust Company stock); and
	 
	 	(iv)	 	Irrevocable Stock or Bond Power.

	 	2.	 	Customer shall furnish to Lender, as soon as available, such financing information
respecting Customer as Lender from time to time requests, and without request furnish to
Lender:

(i) Within 120 days after the end of each fiscal year of
Customer, a balance sheet of Customer as of the close of such fiscal year and
related statements of income and retained earnings and cash flow for such year
all in reasonable detail and satisfactory in scope to Lender, prepared in
accordance with generally accepted accounting principles applied on a
consistent basis, audited by an independent certified public accountant,
selected by Customer and acceptable to Lender.

 

 

(ii) Within 45 days after the end of each third month, a balance sheet of Customer as of the end of
such third month and related statements of income and retained earnings and cash flow for the
period from the beginning of the fiscal year to the end of such third month, prepared in accordance
with generally accepted accounting principles applied on a consistent basis, certified, subject to
normal year-end adjustments, by a financial representative of Customer.

(iii) Copies of all quarterly Federal Financial Institution Examination Council Form 031 (“Call
Reports”) required by Midwest Bank and Trust Company (the “Bank”) no later than the due date
required by these agencies prepared in accordance with agency requirements, certified, by the
financial representatives of Bank now owned or hereafter acquired.

	 	3.	 	Customer shall timely perform and observe the following financial covenant(s), all calculated in
accordance with generally accepted accounting principles applied on a consistent basis:

(i) Bank shall maintain at all times a ratio of Non-performing Loans to Total Loans of not greater
than 2.00%, tested quarterly. “Non-performing Loans” means loans outstanding which are not accruing
interest, have been classified as renegotiated pursuant to guidelines established by the Federal
Financial Institutions Examination council or are 90 days or more past due in the payment of
principal or interest. “Total Loans” means the sum of loans and direct lease financings, net of
unearned income by Bank.

(ii) Bank must report a quarterly profit starting in 2006, tested quarterly, excluding charges
related to acquisitions.

(iii) Bank must remain well capitalized.

	 	4.	 	Customer shall not merge into or consolidate with any other business enterprise or another
business enterprise merges into the Customer, without prior written consent of Lender, for the
purpose of acquisitions must be approved by Lender following the announcement of a definitive
agreement.
	 
	 	5.	 	An event of default will occur if either the Customer or Bank becomes subject to an adverse
regulatory action (including a Memorandum of Understanding or Cease & Desist order). An event of
default (including a Memorandum of Understanding which limits in anyway the ability of the bank to
pay dividends to the holding company, a written agreement or Cease & Desist order).
	 
	 	6.	 	Use of the Revolving Loan for the purpose of acquisitions must be approved by Lender following
the announcement of a definitive agreement.
	 
	 	7.	 	The Revolving Loan is due on the sale of Bank or Customer.

 

 

	 	8.	 	In the event of a change in executive management provide Lender with acceptable succession plan
within 90 days.
	 
	 	9.	 	Other Customer debt greater than $2,000,000 is prohibited;
this excludes trust preferred, approval
will not be unreasonably withheld.

     A breach of any term or condition in this Agreement shall constitute an additional event of
default under the Note(s) and Lender may, at its option, declare the Note(s) due and payable, and
may pursue all remedies available to it with regard to the Note(s). The undersigned shall reimburse
Lender for all expenses incurred by it in protecting or enforcing its rights under this Note(s),
including without limitation, costs of administration of the Note(s) and costs of collection before
and after judgment, including reasonable attorney’s fees and legal expenses. There will be a 10 day
cure period for payment defaults and a 30 day cure period for covenant defaults.

     In the case of any ambiguity or conflict between this Agreement, any note evidencing a Loan,
or any Security Document, this Agreement will govern.

     Please confirm your acknowledgment and acceptance of the terms and conditions of this Agreement by
signing and dating below.

	 	 	 	 	 	 	 	 	 
	Very truly yours,	 	 	 	Very truly yours,
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ John J. Kadlac 	 	 	 	By:	 	/s/ Gregg R. Weyer 
	 

	 	 
	 	 	 	 	 	 
	 	 	John J. Kadlac, Vice President	 	Gregg R. Weyer, Vice President
	 
	 	 	 	 	 	 	 	 
	Accepted and Agreed:
March 24, 2006	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Midwest Banc Holdings, Inc.	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	/s/ Daniel R. Kadolph 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Daniel R. Kadolph, Senior Vice President &CFO	 	 	 	 

 

 

CORPORATE RESOLUTION TO BORROW / GRANT COLLATERAL / SUBORDINATE DEBT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal	 	Loan Date	 	Maturity	 	Loan No	 	Call / Coll	 	Account	 	Officer	 	Initials
	$50,000,000.00

	 	03-24-2006
	 	03-23-2007
	 	37956985-10000
	 	U100 / PO
	 	 	 	 	06564	 	 	 

References
in the shaded area are for Lender’s use only and do not limit
the applicability of this document to any particular loan or item.

Any item above containing “***” has been due to text length limitations.

	 	 	 	 	 	 	 
	 

	 	 	 	Lender:
	 	M&I Marshall & Ilsley Bank
	Corporation:

	 	Midwest Banc Holdings, Inc.
	 	 	 	Correspondent Banking
	 

	 	501 W North Avenue
	 	 	 	770 N. Water Street
	 

	 	Melrose Park, IL 60160
	 	 	 	Milwaukee, Wl 53202
	 
	 	 	 	 	 	 
	 

I, THE UNDERSIGNED, DO HEREBY CERTIFY THAT:

THE
CORPORATION’S EXISTENCE. The complete and correct name of the Corporation is Midwest Banc
Holdings, Inc. (“Corporation”). The Corporation is a corporation for profit which is, and at all
times shall be, duly organized, validly existing, and in good standing under and by virtue of the
laws of the State of Delaware. The Corporation is duly authorized to transact business in all other
states in which the Corporation is doing business, having obtained all necessary filings,
governmental licenses and approvals for each state in which the Corporation is doing business.
Specifically, the Corporation is, and at all times shall be, duly qualified as a foreign
corporation in all states in which the failure to so qualify would have a material adverse effect
on its business or financial condition. The Corporation has the full power and authority to own its
properties and to transact the business in which it is presently engaged or presently proposes to
engage. The Corporation maintains an office at 501 W North Avenue, Melrose Park, IL 60160. Unless
the Corporation has designated otherwise in writing, the principal office is the office at which
the Corporation keeps its books and records. The Corporation will notify Lender prior to any change
in the location of The Corporation’s state of organization or any change in The Corporation’s name.
The Corporation shall do all things necessary to preserve and to keep in full force and effect its
existence, rights and privileges, and shall comply with all regulations, rules, ordinances,
statutes, orders and decrees of any governmental or quasi-governmental authority or court
applicable to the Corporation and The Corporation’s business activities.

RESOLUTIONS ADOPTED. At a meeting of the Directors of the Corporation, or if the Corporation is a
close corporation having no Board of Directors then at a meeting of the Corporation’s shareholders,
duly called and held on February 28, 2006, at which a quorum was present and voting, or by other
duly authorized action in lieu of a meeting, the resolutions set forth in this Resolution were
adopted.

OFFICERS. The following named persons are officers of Midwest Banc Holdings, Inc.:

	 	 	 	 	 	 	 
	NAMES	 	TITLES	 	AUTHORIZED	 	ACTUAL SIGNATURES
	Daniel R. Kadolph

	 	Senior VP/CFO
	 	Y
	 	X  /s/ Daniel R. Kadolph (Seal)
	 
	 	 	 	 	 	 
	James J. Giancola

	 	President & CEO
	 	Y
	 	X  /s/ James J. Giancola  (Seal)

ACTIONS AUTHORIZED. Any one (1) of the authorized persons listed above may enter into any
agreements of any nature with Lender, and those agreements will bind the Corporation. Specifically,
but without limitation, any one (1) of such authorized persons are authorized, empowered, and
directed to do the following for and on behalf of the Corporation:

Borrow Money. To borrow, as a cosigner or otherwise, from time to time from Lender, on such terms
as may be agreed upon between the Corporation and Lender, such sum or sums of money as in their
judgment should be borrowed, without limitation.

Execute Notes. To execute and deliver to Lender the promissory note or notes, or other evidence of
the Corporation’s credit accommodations, on Lender’s forms, at such rates of interest and on such
terms as may be agreed upon, evidencing the sums of money so borrowed or any of the Corporation’s
indebtedness to Lender, and also to execute and deliver to Lender one or more renewals, extensions,
modifications, refinancing, consolidations, or substitutions for one or more of the notes, any
portion of the notes, or any other evidence of credit accommodations.

Grant Security. To mortgage, pledge, transfer, endorse, hypothecate, or otherwise encumber and
deliver to Lender any property now or hereafter belonging to the Corporation or in which the
Corporation now or hereafter may have an interest, including without limitation all of the
Corporation’s real property and all of the Corporation’s personal property (tangible or
intangible), as security for the payment of any loans or credit accommodations so obtained, any
promissory notes so executed (including any amendments to or modifications, renewals, and
extensions of such promissory notes), or any other or further indebtedness of the Corporation to
Lender at any time owing, however the same may be evidenced. Such property may be mortgaged,
pledged, transferred, endorsed, hypothecated or encumbered at the time such loans are obtained or
such indebtedness is incurred, or at any other time or times, and may be either in addition to or
in lieu of any property theretofore mortgaged, pledged, transferred, endorsed, hypothecated or
encumbered.

Execute Security Documents. To execute and deliver to Lender the forms of mortgage, deed of trust,
pledge agreement, hypothecation agreement, and other security agreements and financing statements
which Lender may require and which shall evidence the terms and conditions under and pursuant to
which such liens and encumbrances, or any of them, are given; and also to execute and deliver to
Lender any other written instruments, any chattel paper, or any other collateral, of any kind or
nature, which Lender may deem necessary or proper in connection with or pertaining to the giving of
the liens and encumbrances. Notwithstanding the foregoing, any one of the above authorized persons
may execute, deliver, or record financing statements.

Subordination. To subordinate, in all respects, any and all present and future indebtedness,
obligations, liabilities, claims, rights, and demands of any kind which may be owed, now or
hereafter, from any person or entity to the Corporation to all present and future indebtedness,
obligations, liabilities, claims, rights, and demands of any kind which may be owed, now or
hereafter, from such person or entity to Lender (“Subordinated Indebtedness”), together with
subordination by the Corporation of any and all security interests of any kind, whether now
existing or hereafter acquired, securing payment or performance of the Subordinated Indebtedness;
all on such subordination terms as may be agreed upon between the Corporation’s Officers and Lender
and in such amounts as in their judgment should be subordinated.

Negotiate Items. To draw, endorse, and discount with Lender all drafts, trade acceptances,
promissory notes, or other evidences of indebtedness payable to or belonging to the Corporation or
in which the Corporation may have an interest, and either to receive cash for the

 

 

CORPORATE RESOLUTION TO BORROW / GRANT COLLATERAL / SUBORDINATE DEBT

					
	Loan No: 37956985-10000
	 	(Continued)
	 	Page 2

 

same or to cause such proceeds to be credited to the Corporation’s account with Lender, or to
cause such other disposition of the proceeds derived there from as they may deem advisable.

Further Acts. In the case of lines of credit, to designate additional or alternate individuals as
being authorized to request advances under such lines, and in all cases, to do and perform such
other acts and things, to pay any and all fees and costs, and to execute and deliver such other
documents and agreements, including agreements waiving the right to a trial by jury, as the
officers may in their discretion deem reasonably necessary or proper in order to carry into effect
the provisions of this Resolution.

ASSUMED BUSINESS NAMES. The Corporation has filed or recorded all documents or filings required by
law relating to all assumed business names used by the Corporation. Excluding the name of the
Corporation, the following is a complete list of all assumed business names under which the
Corporation does business: None.

NOTICES TO LENDER. The Corporation will promptly notify Lender in writing at Lender’s address shown
above (or such other addresses as Lender may designate from time to time) prior to any (A) change
in the Corporation’s name; (B) change in the Corporation’s assumed business name(s); (C) change in
the management of the Corporation; (D) change in the authorized signer(s); (E) change in the
Corporation’s principal office address; (F) change in the Corporation’s state of organization; (G)
conversion of the Corporation to a new or different type of business entity; or (H) change in any
other aspect of the Corporation that directly or indirectly relates to any agreements between the
Corporation and Lender. No change in the Corporation’s name or state of organization will take
effect until after Lender has received notice.

CERTIFICATION CONCERNING OFFICERS AND RESOLUTIONS. The officers named above are duly elected,
appointed, or employed by or for the Corporation, as the case may be, and occupy the positions set
opposite their respective names. This Resolution now stands of record on the books of the
Corporation, is in full force and effect, and has not been modified or revoked in any manner
whatsoever.

NO CORPORATE SEAL. The Corporation has no corporate seal, and therefore, no seal is affixed to this
Resolution.

CONTINUING VALIDITY. Any and all acts authorized pursuant to this Resolution and performed prior to
the passage of this Resolution are hereby ratified and approved. This Resolution shall be
continuing, shall remain in full force and effect and Lender may rely on it until written notice of
its revocation shall have been delivered to and received by Lender at Lender’s address shown above
(or such addresses as Lender may designate from time to time). Any such notice shall not affect any
of the Corporation’s agreements or commitments in effect at the time notice is given.

IN TESTIMONY WHEREOF, I have hereunto set my hand and attest that the signatures set opposite the
names listed above are their genuine signatures.

I have read all the provisions of this Resolution, and I personally and on behalf of the
Corporation certify that all statements and representations made in this Resolution are true and
correct. This Corporate Resolution to Borrow / Grant Collateral / Subordinate Debt is dated
February 28, 2006.

THIS RESOLUTION IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS RESOLUTION IS AND SHALL CONSTITUTE
AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW.

	 	 	 	 	 	 	 
	 	 	CERTIFIED TO AND ATTESTED BY:	 	 
	 
	 

	 	X
	 	/s/ Daniel R. Kadolph	 	(Seal)
	 

	 	 	 	 	 	 
	 

	 	 	 	Daniel R. Kadolph, Senior VP/CFO of Midwest	 	 
	 

	 	 	 	Banc Holdings, Inc.	 	 

NOTE: If the officers signing this Resolution are designated by the foregoing document as one
of the officers authorized to act on the Corporation’s behalf, it is advisable to have this
Resolution signed by at least one non-authorized officer of the Corporation.

 

LASER
PRO Lending, Ver. 5.30.10.001 Copr. Harland Financial Solutions, Inc. 1997, 2006.
All Rights Reserved. DE/WI L:\LPL\CFI\LPL\C10.FC TR-32464 PR-5

 

 

*000037956985-10000095503242006*

PROMISSORY NOTE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal	 	Loan Date	 	Maturity	 	Loan No	 	Call / Coll	 	Account	 	Officer	 	Initials
	$50,000,000.00

	 	03-24-2006
	 	03-23-2007
	 	37956985-10000
	 	U100/PO
	 	 	 	 	06564	 	 	 

References in the shaded area are for Lender’s use only and do not limit the applicability of
this document to any particular loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Borrower:

	 	Midwest Banc Holdings, Inc.
	 	Lender:
	 	M&l Marshall & Ilsley Bank
	 

	 	501 W North Avenue
	 	 	 	Correspondent Banking
	 

	 	Melrose Park, IL 60160
	 	 	 	770 N. Water Street
	 

	 	 	 	 	 	Milwaukee, Wl 53202

					
	Principal Amount: $50,000,000.00
	 	Initial Rate: 6.090%
	 	Date of Note: March 24, 2006

PROMISE
TO PAY. Midwest Banc Holdings, Inc. (“Borrower”) promises to pay to M&I Marshall &
Ilsley Bank (“Lender”), or order, in lawful money of the United States of America, the principal
amount of Fifty Million & 00/100 Dollars ($50,000,000.00) or so much as may be outstanding,
together with interest on the unpaid outstanding principal balance of each advance. Interest shall
be calculated from the date of each advance until repayment of each advance.

PAYMENT. Borrower will pay this loan in one payment of all outstanding principal plus all accrued
unpaid interest on March 23, 2007. In addition, Borrower will pay regular monthly payments of all
accrued unpaid interest due as of each payment date, beginning April 24, 2006, with all subsequent
interest payments to be due on the same day of each month after that. Unless otherwise agreed or
required by applicable law, payments will be applied to accrued interest, credit life premiums,
principal, late charges, and escrow. The annual interest rate for this Note is computed on a
365/360 basis; that is, by applying the ratio of the annual interest rate over a year of 360 days,
multiplied by the outstanding principal balance, multiplied by the actual number of days the
principal balance is outstanding. Borrower will pay Lender at Lender’s address shown above or at
such other place as Lender may designate in writing.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based
on changes in an independent index which is the British Bankers Association (BBA) LIBOR and
reported by a major news service selected by Lender (such as Reuters, Bloomberg or Moneyline
Telerate). If BBA LIBOR for the one month period is not provided or reported on the first day of a
month because, for example, it is a weekend or holiday or for another reason, the One Month LIBOR
Rate shall be established as of the preceding day on which a BBA LIBOR rate is provided for the one
month period and reported by the selected news service (the “Index”). The Index is not necessarily
the lowest rate charged by Lender on its loans. If the Index becomes unavailable during the term of
this loan, Lender may designate a substitute index after notice to Borrower. Lender will tell
Borrower the current Index rate upon Borrower’s request. The interest rate change will not occur
more often than each first day of each calendar month. Borrower understands that Lender may make
loans based on other rates as well. The Index currently is 4.640% per annum. The interest rate to
be applied to the unpaid principal balance of this Note will be at a rate of 1.450 percentage
points over the Index, resulting in an initial rate of 6.090% per annum. NOTICE: Under no
circumstances will the interest rate on this Note be more than the maximum rate allowed by
applicable law.

PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier than it is
due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower’s
obligation to continue to make payments of accrued unpaid interest. Rather, early payments will
reduce the principal balance due. Borrower agrees not to send Lender payments marked “paid in
full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender may accept
it without losing any of Lender’s rights under this Note, and Borrower will remain obligated to pay
any further amount owed to Lender. All written communications concerning disputed amounts,
including any check or other payment instrument that indicates that the payment constitutes
“payment in full” of the amount owed or that is tendered with other conditions or limitations or as
full satisfaction of a disputed amount must be mailed or delivered
to: M&I Marshall & Ilsley Bank,
P.O. 3114 Milwaukee, Wl 53201-3114.

LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the unpaid
portion of the regularly scheduled payment.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, Lender, at its
option, may, if permitted under applicable law, increase the variable interest rate on this Note to
3.450 percentage points over the Index. The interest rate will not exceed the maximum rate
permitted by applicable law.

DEFAULT. Each of the following shall constitute an event of default (“Event of Default”) under this
Note:

Payment Default. Borrower fails to make any payment when due under this Note.

Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or
condition contained in this Note or in any of the related documents or to comply with or to perform
any term, obligation, covenant or condition contained in any other agreement between Lender and
Borrower.

Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of
credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any
other creditor or person that may materially affect any of Borrower’s property or Borrower’s
ability to repay this Note or perform Borrower’s obligations under this Note or any of the related
documents.

False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower
or on Borrower’s behalf under this Note or the related documents is false or misleading in any
material respect, either now or at the time made or furnished or becomes false or misleading at any
time thereafter.

Insolvency. The dissolution or termination of Borrower’s existence as a going business, the
insolvency of Borrower, the appointment of a receiver for any part of Borrower’s property, any
assignment for the benefit of creditors, any type of creditor workout, or the commencement of any
proceeding under any bankruptcy or insolvency laws by or against Borrower.

 

 

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether
by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or
by any governmental agency against any collateral securing the loan. This includes a garnishment of
any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of Default
shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness
of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives
Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a
surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its
sole discretion, as being an adequate reserve or bond for the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor,
endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser,
surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of,
or liability under, any guaranty of the indebtedness evidenced by this Note. In the event of a
death, Lender, at its option, may, but shall not be required to, permit the guarantor’s estate to
assume unconditionally the obligations arising under the guaranty in a manner satisfactory to
Lender, and, in doing so, cure any Event of Default.

Change In Ownership. Any change in ownership of fifty percent (50%) or more of the common stock of
Borrower.

Adverse Change. A material adverse change occurs in Borrower’s financial condition, or Lender
believes the prospect of payment or performance of this Note is impaired.

Insecurity. Lender in good faith believes itself insecure.

LENDER’S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance on this Note
and all accrued unpaid interest immediately due, and then Borrower will pay that amount.

ATTORNEYS’ FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if
Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits
under applicable law, Lender’s attorneys’ fees and Lender’s legal expenses, whether or not there is
a lawsuit, including attorneys’ fees, expenses for bankruptcy proceedings (including efforts to
modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable
law, Borrower also will pay any court costs, in addition to all other sums provided by law.

JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action,
proceeding, or counterclaim brought by either Lender or Borrower against the other.

GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent
not preempted by federal law, the laws of the State of Wisconsin without regard to its conflicts of
law provisions. This Note has been accepted by Lender in the State of Wisconsin.

CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the
jurisdiction of the courts of Milwaukee County, State of Wisconsin.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $15.00 if Borrower makes a payment on
Borrower’s loan and the check or preauthorized charge with which Borrower pays is later dishonored.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in
all Borrower’s accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open
in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for
which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on the indebtedness against any and all such
accounts, and, at Lender’s option, to administratively freeze all such accounts to allow Lender to
protect Lender’s charge and setoff rights provided in this paragraph.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note, as well
as directions for payment from Borrower’s accounts, may be requested orally or in writing by
Borrower or by an authorized person. Lender may, but need not, require that all oral requests be
confirmed in writing. Borrower agrees to be liable for all sums either: (A) advanced in accordance
with the instructions of an authorized person or (B) credited to any of Borrower’s accounts with
Lender. The unpaid principal balance owing on this Note at any time may be evidenced by
endorsements on this Note or by Lender’s internal records, including daily computer print-outs.
Lender will have no obligation to advance funds under this Note if: (A) Borrower or any guarantor
is in default under the terms of this Note or any agreement that Borrower or any guarantor has with
Lender, including any agreement made in connection with the signing of this Note; (B) Borrower or
any guarantor ceases doing business or is insolvent; (C) any guarantor seeks, claims or otherwise
attempts to limit, modify or revoke such guarantor’s guarantee of this Note or any other loan with
Lender; (D) Borrower has applied funds provided pursuant to this Note for purposes other than those
authorized by Lender; or (E) Lender in good faith believes itself insecure.

GRID PRICING. An exhibit, titled “Pricing Grid,” is attached to this Note and by this reference is
made a part of this Note just as if all the provisions, terms and conditions of the Exhibit had
been fully set forth in this Note.

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s
heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender
and its successors and assigns.

GENERAL PROVISIONS. This Note benefits Lender and its successors and assigns, and binds Borrower
and Borrower’s heirs, successors, assigns, and representatives. If any part of this Note cannot be
enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any
of its rights or remedies under this Note without losing them. Borrower and any other person who
signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand
for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless
otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor,
accommodation maker or endorser, shall be released from liability. All such parties agree that
Lender may renew or extend (repeatedly and for any length of time) this loan or release any party
or guarantor or collateral; or impair, fail to realize upon or perfect Lender’s security interest
in the collateral; and take any other action deemed necessary by Lender without the consent of or
notice to anyone. All such parties also agree that Lender may modify this loan without the consent
of or notice to anyone other than the party with whom the modification is made. The obligations
under this Note are joint and several.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING
THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

 

 

BORROWER:

MIDWEST BANC HOLDINGS, INC.

By:  
/s/ Daniel R. Kadolph           

Daniel R. Kadolph, Senior VP/CFO of Midwest Banc Holdings, Inc.

LASER
PRO Lending, Ver. 5.30.10.001 Copr. Harland Financial Solutions, Inc.
1997, 2006. All Rights Reserved -Wl L:\LPL\CFI\LPL\D20.FC TR-32464
PR-5(M)

 

 

PRICING GRID

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal
	 	Loan Date	 	Maturity	 	Loan No	 	Call/Coll	 	Account	 	Officer	 	Initials
	$50,000,000.00
	 	03-24-2006	 	03-23-2007	 	37956985-10000	 	U100/PO	 	 	 	06564	 	 

References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Borrower:

	 	Midwest Banc Holdings, Inc.
	 	Lender:
	 	M&I Marshall & Ilsley Bank
	 

	 	501 W North Avenue
	 	 	 	Correspondent Banking
	 

	 	Melrose Park, IL 60160
	 	 	 	770 N. Water Street
	 

	 	 	 	 	 	Milwaukee, Wl 53202

This PRICING GRID is attached to and by this reference is made a part of the Promissory Note,
dated March 24, 2006, and executed in connection with a loan or other financial accommodations
between M&I MARSHALL & ILSLEY BANK and Midwest Banc Holdings, Inc.

	 	 	 	 	 
	Initial pricing will be Libor + 145 bp. Pricing will be subject to a performance-based grid below:
	 
	*Borrower is profitable for two consecutive quarters

	 	Libor + 130bp	 	 
	ROA > .50% -1.03% for two consecutive quarters

	 	Libor +115bp	 	 
	ROA > 1.04% for two consecutive quarters

	 	Libor + 100bp	 	 
	 
	*starting with the 4th quarter of 2005
	 	 	 	 

THIS PRICING GRID IS EXECUTED ON MARCH 24, 2006.

BORROWER:

MIDWEST BANC HOLDINGS, INC.

By:  /s/ Daniel R. Kadolph           

Daniel R. Kadolph, Senior VP/CFO of Midwest

Banc Holdings, Inc.

LASER
PRO Lending, Ver. 5.30.10.001 Copr. Harland Financial Solutions, Inc.
1997, 2006. All Rights Reserved. -Wl L:\LPL\CFI\LPL\D20.FC TR-32464 PR-5(M)

 

 

AGREEMENT TO DELIVER COLLATERAL (A SECURITY AGREEMENT)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal
	 	Loan Date	 	Maturity	 	Loan No	 	Call/Coll	 	Account	 	Officer	 	Initials
	$50,000,000.00
	 	03-24-2006	 	03-23-2007	 	37956985-10000	 	U100/PO	 	 	 	06564	 	 

References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Borrower:

	 	Midwest Banc Holdings, Inc.
	 	Lender:
	 	M&I Marshall & Ilsley Bank
	 

	 	501 W North Avenue
	 	 	 	Correspondent Banking
	 

	 	Melrose Park, IL 60160
	 	 	 	770 N. Water Street
	 

	 	 	 	 	 	Milwaukee, Wl 53202

Date: March 24, 2006

“Borrower”: Midwest Banc Holdings, Inc.

1 ) Receipt of New Value: This Agreement is given in consideration of a loan, binding commitment
to lend, extention of immediately available credit, release of a perfected security interest or
other new value granted by M&I Marshall & Ilsley Bank (“Lender”) to Borrower or to any of the
undersigned “Debtor.” This collateral will not be held in the State of Illinois.

2) Description of New Collateral: For such new value, and to secure all debts, obligations and
liabilities to Lender arising out of credit previously granted,
credit contemporaneously granted and credit granted in the future by Lender to any Debtor to any
Borrower, to any of them and another, or to another
guaranteed or indorsed by any of them (“Obligations”), Debtor grants Lender a security interest in
and assigns to Lender the following instruments,
certificated securities or negotiable documents, their proceeds and other rights in connection
with such property (“Collateral”), which Debtor owns or is
about to acquire:

100% of Midwest Bank and Trust Company Stock

3) Debtor covenants:

a) That Debtor has, or will acquire, title to the Collateral, free of liens, encumbrances and
security interests (other than Lender’s);

b) That Debtor has full authority to grant a security interest in and deliver the Collateral to
Lender;

c) That the address of Debtor’s principal residence, or if Debtor is an organization, Debtor’s
place of business (or if Debtor has more than one place of
business, Debtor’s chief executive office) is as set forth below Section 4; and that Debtor’s
exact legal name, and if Debtor is an organization, the type of
organization and the state under whose law it is organized, are as set forth below Section 4;

d) To hold Collateral in trust for Lender and deliver it to Lender within 18 calendar days from
the date of this Agreement;

e) That Debtor’s transferor of Collateral (i.e., broker, seller, etc.) holds Collateral as bailee
for Lender and is hereby directed to deliver Collateral Directly to
Lender as soon as obtained; and Lender is authorized to deliver a copy of this Agreement to such
transferor;

f) Not to sell or otherwise transfer or dispose of the Collateral; and

g) That all provisions of all security agreements and assignments between Lender and Debtor
covering collateral of the type or kind described above apply
to the Collateral both before and after delivered to Lender; and that Lender is authorized to file
Uniform Commercial Code financing statements describing
the Collateral and amendments to such financing statments and any such financing statement or
amendment filed prior to the date of this Agreement is
ratified.

4) Persons Bound, the obligations of all Debtors under this Agreement are joint and several. This
Agreement benefits Lender, its successors and assigns,
and binds Debtor (s) and their respective heirs, personal representatives, successors and assigns.

Midwest Banc Holdings, Inc.

By:  
/s/ Daniel R. Kadolph                     

Daniel R. Kadolph, Senior VP & CFO

Corporation

Type of Organization

Address: 501 W. North Avenue, Melrose Park, IL 60160

State of Organization: Delaware

ACKNOWLEDGEMENT:

The undersigned acknowledges receipt of notice (by copy of this Agreement) of Lender’s security
interest in the described Collateral and agrees that it is a bailee of the Collateral and holds it
for Lender’s benefit and agrees to deliver it directly to Lender immediately upon receipt of the
Collateral.

Dated:                                                                                                                        

Name of Transferor/Bailee:                                                                                

LASER
PRO Lending, Ver. 5.30.10.001 Copr. Harland Flnancial Solutions, Inc.
1997, 2006. All Rights Reserved. -Wl L:\LPL\CFI\LPL\G60.FC TR-32464
PR-5(M)

 

 

*000037956985-10000034503242006*

DISBURSEMENT REQUEST AND AUTHORIZATION

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal

	 	Loan Date
	 	Maturity
	 	Loan No
	 	Call/Coll
	 	Account
	 	Officer
	 	Initials
	$50,000,000.00

	 	03-24-2006
	 	03-23-2007
	 	37956985-10000
	 	U100/PO
	 	 	 	 	06564	 	 	 

References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Borrower:

	 	Midwest Banc Holdings, Inc.
	 	Lender:
	 	M&I Marshall & Ilsley Bank
	 

	 	501 W North Avenue
	 	 	 	Correspondent Banking
	 

	 	Melrose Park, IL 60160
	 	 	 	770 N. Water Street
	 

	 	 	 	 	 	Milwaukee, Wl 53202

LOAN TYPE. This is a Variable Rate Nondisclosable Revolving Line of Credit Loan to a Corporation
for $50,000,000.00 due on March 23, 2007. The reference rate (British Bankers Association (BBA)
LIBOR and reported by a major news service selected by Lender (such as Reuters, Bloomberg or
Moneyline Telerate). If BBA LIBOR for the one month period is not provided or reported on the
first day of a month because, for example, it is a weekend or holiday or for another reason, the
One Month LIBOR Rate shall be established as of the preceding day on which a BBA LIBOR rate is
provided for the one month period and reported by the selected news service, currently 4.640%) is
added to the margin of 1.450%, resulting in an initial rate of 6.090. This Note is subject to a
performance based pricing grid, see the attached Pricing Grid to the Note.

	 	 	 
	PRIMARY PURPOSE OF LOAN. The primary purpose of this loan is for:
	 

	 	Personal, Family or Household
Purposes or Personal Investment.
	 

	 	Agricultural Purposes.
	X

	 	Business Purposes.

DISBURSEMENT INSTRUCTIONS. Borrower understands that no loan proceeds will be disbursed until all
of Lender’s conditions for making the loan have been satisfied. Please disburse the loan proceeds
of $50,000,000.00 as follows:

	 	 	 
	Other Disbursements:	 	 
	 
	 	$50,000,000.00
	$50,000,000.00	 	 
	 	 	 
	Note Principal:	 	 
	 
	 	$50,000,000.00

FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND WARRANTS TO LENDER
THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND THAT THERE HAS BEEN NO MATERIAL
ADVERSE CHANGE IN BORROWER’S FINANCIAL CONDITION AS DISCLOSED IN BORROWER’S MOST RECENT
FINANCIAL STATEMENT TO LENDER. THIS AUTHORIZATION IS DATED MARCH 24, 2006.

BORROWER:

MIDWEST BANC HOLDINGS, INC.

By:  /s/ Daniel R. Kadolph           

Daniel R. Kadolph, Senior VP/CFO of Midwest

Banc Holdings, Inc.

LASER
PRO Lending, Ver. 5.30.10.001 Copr. Harland Financial Solutions, Inc.
1997, 2006. All Rights Reserved -Wl L:\LPL\CFI\LPL\I20.FC TR-32464
PR-5(M)

 

 

COMMERCIAL PLEDGE AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal

	 	Loan Date
	 	Maturity
	 	Loan No
	 	Call/Coll
	 	Account
	 	Officer
	 	Initials
	$50,000,000.00

	 	03-24-2006
	 	03-23-2007
	 	37956985-10000
	 	U100/PO
	 	 	 	 	06564	 	 	 

References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Grantor:

	 	Midwest Banc Holdings, Inc.
	 	Lender:
	 	M&l Marshall & Ilsley Bank
	 

	 	501 W North Avenue
	 	 	 	Correspondent Banking
	 

	 	Melrose Park, IL 60160
	 	 	 	770 N. Water Street
	 

	 	 	 	 	 	Milwaukee, Wl 53202

THIS COMMERCIAL PLEDGE AGREEMENT dated March 24, 2006, is made and executed between
Midwest Banc Holdings, Inc. (“Grantor”) and M&I
Marshall & Ilsley Bank (“Lender”).

GRANT
OF SECURITY INTEREST. For valuable consideration, Grantor grants to Lender a security
interest in the Collateral to secure the Indebtedness and agrees that Lender shall have the
rights stated in this Agreement with respect to the Collateral, in addition to all other rights
which Lender may have by law.

COLLATERAL
DESCRIPTION. The word “Collateral” as used in this Agreement means all of Grantor’s
property (however owned if more than one), in the possession of Lender (or in the possession of a
third party subject to the control of Lender), whether existing now or later and whether tangible
or intangible in character, including without limitation each and all of the following:

100%
of Midwest Bank and Trust Company stock

In addition, the word “Collateral” includes all of Grantor’s property (however owned), in the
possession of Lender (or in the possession of a third party subject to the control of Lender),
whether now or hereafter existing and whether tangible or intangible in character, including
without limitation each of the following:

(A) All property to which Lender acquires title or documents of title.

(B) All property assigned to Lender.

(C) All promissory notes, bills of exchange, stock certificates, bonds, savings passbooks, time
certificates of deposit, insurance policies,
and all other instruments and evidences of an obligation.

(D) All records relating to any of the property described in this Collateral section, whether
in the form of a writing, microfilm, microfiche, or
electronic media.

(E) All Income and Proceeds from the Collateral as defined herein.

CROSS-COLLATERALIZATION. In addition to the Note, this Agreement secures all obligations, debts
and liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as well
as all claims by Lender against Grantor or any one or more of them, whether now existing or
hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or
otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or
contingent, liquidated or unliquidated, whether Grantor may be liable individually or jointly
with others, whether obligated as guarantor, surety, accommodation party or otherwise, and
whether recovery upon such amounts may be or hereafter may become barred by any statute of
limitations, and whether the obligation to repay such amounts may be or hereafter may become
otherwise unenforceable.

RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in
all Grantor’s accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Grantor holds jointly with someone else and all accounts Grantor may open
in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Grantor authorizes Lender, to the extent permitted
by applicable law, to charge or setoff all sums owing on the Indebtedness against any and all
such accounts, and, at Lender’s option, to administratively freeze all such accounts to allow
Lender to protect Lender’s charge and setoff rights provided in this paragraph.

REPRESENTATIONS
AND WARRANTIES WITH RESPECT TO THE COLLATERAL. Grantor represents and warrants to
Lender that:

Ownership. Grantor has a lawful ownership interest in the Collateral free and clear of all
security interests, liens, encumbrances and claims of others except as disclosed to and
accepted by Lender in writing prior to execution of this Agreement.

Right
to Pledge. Grantor has the full right, power and authority, acting alone, to enter
into this Agreement and to pledge the Collateral.

Authority;
Binding Effect. Grantor has the full right, power and authority to enter into this
Agreement and, acting alone, to grant a security interest in the Collateral to Lender. This
Agreement is binding upon Grantor as well as Grantor’s successors and assigns, and is legally
enforceable in accordance with its terms. The foregoing representations and warranties, and
all other representations and warranties contained in this Agreement are and shall be
continuing in nature and shall remain in full force and effect until such time as this
Agreement is terminated or cancelled as provided herein.

No
Further Assignment. Grantor has not, and shall not, sell, assign, transfer, encumber or
otherwise dispose of any of Grantor’s rights in the Collateral except as provided in this
Agreement.

No
Defaults. There are no defaults existing under the Collateral, and there are no offsets or
counterclaims to the same. Grantor will strictly and promptly perform each of the terms,
conditions, covenants and agreements, if any, contained in the Collateral which are to be
performed by Grantor.

No
Violation. The execution and delivery of this Agreement will not violate any law or
agreement governing Grantor or to which Grantor is a party, and its certificate or articles
of incorporation and bylaws do not prohibit any term or condition of this Agreement.

Financing
Statements. Grantor authorizes Lender to file a UCC financing statement, or
alternatively, a copy of this Agreement to perfect Lender’s security interest. At Lender’s
request, Grantor additionally agrees to sign all other documents that are necessary to
perfect,

 

 

	 	 	 	 	 
	Loan No: 37956985-10000
	 	COMMERCIAL PLEDGE AGREEMENT

(Continued)
	 	Page 2
	 

protect, and continue Lender’s security interest in the Property. Grantor will pay all
filing fees, title transfer fees, and other fees and costs involved unless prohibited by law or
unless Lender is required by law to pay such fees and costs. Grantor irrevocably appoints
Lender to execute documents necessary to transfer title if there is a default. Lender may file
a copy of this Agreement as a financing statement. If Grantor changes Grantor’s name or
address, or the name or address of any person granting a security interest under this Agreement
changes, Grantor will promptly notify the Lender of such change.

LENDER’S
RIGHTS AND OBLIGATIONS WITH RESPECT TO THE COLLATERAL. Lender may hold the Collateral
until all Indebtedness has been paid and satisfied. Thereafter Lender may deliver the Collateral
to Grantor or to any other owner of the Collateral. Lender shall have the following rights in
addition to all other rights Lender may have by law:

Maintenance
and Protection of Collateral. Lender may, but shall not be obligated to, take such
steps as it deems necessary or desirable to protect, maintain, insure, store, or care for the
Collateral, including paying of any liens or claims against the Collateral. This may include
such things as hiring other people, such as attorneys, appraisers or other experts. Lender may
charge Grantor for any cost incurred in so doing. When applicable law provides more than one
method of perfection of Lender’s security interest, Lender may choose the method(s) to be used.
If the Collateral consists of stock, bonds or other investment property for which no
certificate has been issued, Grantor agrees, at Lender’s request, either to request issuance of
an appropriate certificate or to give instructions on Lender’s forms to the issuer, transfer
agent, mutual fund company, or broker, as the case may be, to record on its books or records
Lender’s security interest in the Collateral. Grantor also agrees to execute any additional
documents, including but not limited to, a control agreement, necessary to perfect Lender’s
security interest as Lender may desire.

Income
and Proceeds from the Collateral. Lender may receive all Income and Proceeds and add it
to the Collateral. Grantor agrees to deliver to Lender immediately upon receipt, in the exact
form received and without commingling with other property, all Income and Proceeds from the
Collateral which may be received by, paid, or delivered to Grantor or for Grantor’s account,
whether as an addition to, in discharge of, in substitution of, or in exchange for any of the
Collateral.

Application
of Cash. At Lender’s option, Lender may apply any cash, whether included in the
Collateral or received as Income and Proceeds or through liquidation, sale, or retirement, of
the Collateral, to the satisfaction of the Indebtedness or such portion thereof as Lender shall
choose, whether or not matured.

Transactions
with Others. Lender may (1) extend time for payment or other performance, (2)
grant a renewal or change in terms or conditions, or (3) compromise, compound or release any
obligation, with any one or more Obligors, endorsers, or Guarantors of the Indebtedness as
Lender deems advisable, without obtaining the prior written consent of Grantor, and no such act
or failure to act shall affect Lender’s rights against Grantor or the Collateral.

All
Collateral Secures Indebtedness. All Collateral shall be security for the Indebtedness,
whether the Collateral is located at one or more offices or branches of Lender. This will be
the case whether or not the office or branch where Grantor obtained Grantor’s loan knows about
the Collateral or relies upon the Collateral as security.

Collection
of Collateral. Lender at Lender’s option may, but need not, collect the Income and
Proceeds directly from the Obligors. Grantor authorizes and directs the Obligors, if Lender
decides to collect the Income and Proceeds, to pay and deliver to Lender all Income and
Proceeds from the Collateral and to accept Lender’s receipt for the payments.

Power
of Attorney. Grantor irrevocably appoints Lender as Grantor’s attorney-in-fact, with full
power of substitution, (a) to demand, collect, receive, receipt for, sue and recover all Income
and Proceeds and other sums of money and other property which may now or hereafter become due,
owing or payable from the Obligors in accordance with the terms of the Collateral; (b) to
execute, sign and endorse any and all instruments, receipts, checks, drafts and warrants issued
in payment for the Collateral; (c) to settle or compromise any and all claims arising under the
Collateral, and in the place and stead of Grantor, execute and deliver Grantor’s release and
acquittance for Grantor; (d) to file any claim or claims or to take any action or institute or
take part in any proceedings, either in Lender’s own name or in the name of Grantor, or
otherwise, which in the discretion of Lender may seem to be necessary or advisable; and (e) to
execute in Grantor’s name and to deliver to the Obligors on Grantor’s behalf, at the time and
in the manner specified by the Collateral, any necessary instruments or documents.

Perfection
of Security Interest. Upon Lender’s request, Grantor will deliver to Lender any and
all of the documents evidencing or constituting the Collateral. When applicable law provides
more than one method of perfection of Lender’s security interest, Lender may choose the
method(s) to be used. Upon Lender’s request, Grantor will sign and deliver any writings
necessary to perfect Lender’s security interest. If any of the Collateral consists of
securities for which no certificate has been issued, Grantor agrees, at Lender’s option, either
to request issuance of an appropriate certificate or to execute appropriate instructions on
Lender’s forms instructing the issuer, transfer agent, mutual fund company, or broker, as the
case may be, to record on its books or records, by book-entry or otherwise, Lender’s security
interest in the Collateral. Grantor hereby appoints Lender as Grantor’s irrevocable
attorney-in-fact for the purpose of executing any documents necessary to perfect, amend, or to
continue the security interest granted in this Agreement or to demand termination of filings of
other secured parties. This is a continuing Security Agreement and will continue in effect even
though all or any part of the Indebtedness is paid in full and even though for a period of time
Grantor may not be indebted to Lender.

LENDER’S
EXPENDITURES. If any action or proceeding is commenced that would materially affect
Lender’s interest in the Collateral or if Grantor fails to comply with any provision of this
Agreement or any Related Documents, including but not limited to Grantor’s failure to discharge or
pay when due any amounts Grantor is required to discharge or pay under this Agreement or any
Related Documents, Lender on Grantor’s behalf may (but shall not be obligated to) take any action
that Lender deems appropriate, including but not limited to discharging or paying all taxes,
liens, security interests, encumbrances and other claims, at any time levied or placed on the
Collateral and paying all costs for insuring, maintaining and preserving the Collateral. All such
expenditures incurred or paid by Lender for such purposes will then bear interest at the rate
charged under the Note from the date incurred or paid by Lender to the date of repayment by
Grantor. All such expenses will become a part of the Indebtedness and, at Lender’s option, will
(A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be
payable with any installment payments to become due during either (1) the term of any applicable
insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment
which will be due and payable at the Note’s maturity. The Agreement also will secure payment of
these amounts. Such right shall be in addition to all other rights and remedies to which Lender
may be entitled upon Default.

LIMITATIONS
ON OBLIGATIONS OF LENDER. Lender shall use ordinary reasonable care in the physical
preservation and custody of the Collateral in Lender’s possession, but shall have no other
obligation to protect the Collateral or its value. In particular, but without limitation, Lender
shall have no responsibility for (A) any depreciation in value of the Collateral or for the
collection or protection of any Income and Proceeds from the Collateral, (B) preservation of rights
against parties to the Collateral or against third persons, (C) ascertaining any

 

 

COMMERCIAL PLEDGE AGREEMENT

					
	Loan No: 37956985-10000
	 	(Continued)
	 	Page 3
	 

maturities, calls, conversions, exchanges, offers, tenders, or similar matters relating to any
of the Collateral, or (D) informing Grantor about any of the above, whether or not Lender has or is
deemed to have knowledge of such matters. Except as provided above, Lender shall have no liability
for depreciation or deterioration of the Collateral.

DEFAULT. Each of the following shall constitute an Event of Default under this Agreement:

Payment Default. Grantor fails to make any payment when due under the Indebtedness.

Other Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant or
condition contained in this Agreement or in any of the Related Documents or to comply with or to
perform any term, obligation, covenant or condition contained in any other agreement between Lender
and Grantor.

Default in Favor of Third Parties. Should Grantor or any Grantor default under any loan, extension
of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any
other creditor or person that may materially affect any of Grantor’s property or Grantor’s or any
Grantor’s ability to repay the Indebtedness or perform their respective obligations under this
Agreement or any of the Related Documents.

False Statements. Any warranty, representation or statement made or furnished to Lender by Grantor
or on Grantor’s behalf under this Agreement or the Related Documents is false or misleading in any
material respect, either now or at the time made or furnished or becomes false or misleading at any
time thereafter.

Defective Collateralization. This Agreement or any of the Related Documents ceases to be in full
force and effect (including failure of any collateral document to create a valid and perfected
security interest or lien) at any time and for any reason.

Insolvency. The dissolution or termination of Grantor’s existence as a going business, the
insolvency of Grantor, the appointment of a receiver for any part of Grantor’s property, any
assignment for the benefit of creditors, any type of creditor workout, or the commencement of any
proceeding under any bankruptcy or insolvency laws by or against Grantor.

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether
by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or
by any governmental agency against any collateral securing the Indebtedness. This includes a
garnishment of any of Grantor’s accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or
reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if
Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with
Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor,
endorser, surety, or accommodation party of any of the Indebtedness or guarantor, endorser, surety,
or accommodation party dies or becomes incompetent or revokes or disputes the validity of, or
liability under, any Guaranty of the Indebtedness.

Adverse Change. A material adverse change occurs in Grantor’s financial condition, or Lender
believes the prospect of payment or performance of the Indebtedness is impaired.

Insecurity. Lender in good faith believes itself insecure.

RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Agreement, at any time
thereafter, Lender may exercise any one or more of the following rights and remedies:

Accelerate Indebtedness. Declare all Indebtedness, including any prepayment penalty which Grantor
would be required to pay, immediately due and payable, without notice of any kind to Grantor.

Collect the Collateral. Collect any of the Collateral and, at Lender’s option and to the extent
permitted by applicable law, retain possession of the Collateral while suing on the Indebtedness.

Sell the Collateral. Sell the Collateral, at Lender’s discretion, as a unit or in parcels, at one
or more public or private sales. Unless the Collateral is perishable or threatens to decline
speedily in value or is of a type customarily sold on a recognized market, Lender shall give or
mail to Grantor, and other persons as required by law, notice at least ten (10) days in advance of
the time and place of any public sale, or of the time after which any private sale may be made.
However, no notice need be provided to any person who, after an Event of Default occurs, enters
into and authenticates an agreement waiving that person’s right to notification of sale. Grantor
agrees that any requirement of reasonable notice as to Grantor is satisfied if Lender mails notice
by ordinary mail addressed to Grantor at the last address Grantor has given Lender in writing. If a
public sale is held, there shall be sufficient compliance with all requirements of notice to the
public by a single publication in any newspaper of general circulation in the county where the
Collateral is located, setting forth the time and place of sale and a brief description of the
property to be sold. Lender may be a purchaser at any public sale.

Sell Securities. Sell any securities included in the Collateral in a manner consistent with
applicable federal and state securities laws. If, because of restrictions under such laws, Lender
is unable, or believes Lender is unable, to sell the securities in an open market transaction,
Grantor agrees that Lender will have no obligation to delay sale until the securities can be
registered. Then Lender may make a private sale to one or more persons or to a restricted group of
persons, even though such sale may result in a price that is less favorable than might be obtained
in an open market transaction. Such a sale will be considered commercially reasonable. If any
securities held as Collateral are “restricted securities” as defined in the Rules of the Securities
and Exchange Commission (such as Regulation D or Rule 144) or the rules of state securities
departments under state “Blue Sky” laws, or if Grantor or any other owner of the Collateral is an
affiliate of the issuer of the securities, Grantor agrees that neither Grantor, nor any member of
Grantor’s family, nor any other person signing this Agreement will sell or dispose of any
securities of such issuer without obtaining Lender’s prior written consent.

Rights and Remedies with Respect to Investment Property, Financial Assets and Related Collateral.
In addition to other rights and remedies granted under this Agreement and under applicable law,
Lender may exercise any or all of the following rights and remedies: (1) register with any issuer
or broker or other securities intermediary any of the Collateral consisting of investment property
or financial assets (collectively herein, “investment property”) in Lender’s sole name or in the
name of Lender’s broker, agent or nominee; (2) cause any issuer, broker or other securities
intermediary to deliver to Lender any of the Collateral consisting of securities, or investment
property capable of being delivered; (3) enter into a control agreement or power of attorney with
any issuer or securities intermediary with respect to any Collateral consisting of investment
property, on such terms as Lender may deem appropriate, in its sole discretion, including without
limitation, an agreement granting to Lender any of the rights provided hereunder without further
notice to or consent by Grantor; (4) execute any such control agreement on Grantor’s behalf and in
Grantor’s name, and hereby irrevocably appoints Lender as agent and

 

 

COMMERCIAL PLEDGE AGREEMENT

					
	Loan No: 37956985-10000
	 	(Continued)
	 	Page 4
	 

attorney-in-fact, coupled with an interest, for the purpose of executing such control agreement
on Grantor’s behalf; (5) exercise any and all rights of Lender under any such control agreement or
power of attorney; (6) exercise any voting, conversion, registration, purchase, option, or other
rights with respect to any Collateral; (7) collect, with or without legal action, and issue
receipts concerning any notes, checks, drafts, remittances or distributions that are paid or
payable with respect to any Collateral consisting of investment property. Any control agreement
entered with respect to any investment property shall contain the following provisions, at Lender’s
discretion. Lender shall be authorized to instruct the issuer, broker or other securities
intermediary to take or to refrain from taking such actions with respect to the investment property
as Lender may instruct, without further notice to or consent by Grantor. Such actions may include
without limitation the issuance of entitlement orders, account instructions, general trading or buy
or sell orders, transfer and redemption orders, and stop loss orders. Lender shall be further
entitled to instruct the issuer, broker or securities intermediary to sell or to liquidate any
investment property, or to pay the cash surrender or account termination value with respect to any
and all investment property, and to deliver all such payments and liquidation proceeds to Lender.
Any such control agreement shall contain such authorizations as are necessary to place Lender in “control”
of such investment collateral, as contemplated under the provisions of the Uniform Commercial Code,
and shall fully authorize Lender to issue “entitlement orders” concerning the transfer, redemption,
liquidation or disposition of investment collateral, in conformance with the provisions of the
Uniform Commercial Code.

Foreclosure. Maintain a judicial suit for foreclosure and sale of the Collateral.

Transfer Title. Effect transfer of title upon sale of all or part of the Collateral. For this
purpose, Grantor irrevocably appoints Lender as Grantor’s attorney-in-fact to execute endorsements,
assignments and instruments in the name of Grantor and each of them (if more than one) as shall be
necessary or reasonable.

Other Rights and Remedies. Have and exercise any or all of the rights and remedies of a secured
creditor under the provisions of the Uniform Commercial Code, at law, in equity, or otherwise.

Application of Proceeds. Apply any cash which is part of the Collateral, or which is received from
the collection or sale of the Collateral, to reimbursement of any expenses, including any costs for
registration of securities, commissions incurred in connection with a sale, attorneys’ fees and
court costs, whether or not there is a lawsuit and including any fees on appeal, incurred by Lender
in connection with the collection and sale of such Collateral and to the payment of the
Indebtedness of Grantor to Lender, with any excess funds to be paid to Grantor as the interests of
Grantor may appear. Grantor agrees, to the extent permitted by law, to pay any deficiency after
application of the proceeds of the Collateral to the Indebtedness.

Election of Remedies. Except as may be prohibited by applicable law, all of Lender’s rights and
remedies, whether evidenced by this Agreement, the Related Documents, or by any other writing,
shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue
any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or
to take action to perform an obligation of Grantor under this Agreement, after Grantor’s failure to
perform, shall not affect Lender’s right to declare a default and exercise its remedies.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Agreement:

Amendments. This Agreement, together with any Related Documents, constitutes the entire
understanding and agreement of the parties as to the matters set forth in this Agreement. No
alteration of or amendment to this Agreement shall be effective unless given in writing and signed
by the party or parties sought to be charged or bound by the alteration or amendment.

Attorneys’ Fees; Expenses. Grantor agrees to pay upon demand all of Lender’s costs and expenses,
including Lender’s attorneys’ fees and Lender’s legal expenses, incurred in connection with the
enforcement of this Agreement. Lender may hire or pay someone else to help enforce this Agreement,
and Grantor shall pay the costs and expenses of such enforcement. Costs and expenses include
Lender’s attorneys’ fees and legal expenses whether or not there is a lawsuit, including attorneys’
fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any
automatic stay or injunction), appeals, and any anticipated post-judgment collection services.
Grantor also shall pay all court costs and such additional fees as may be directed by the court.

Caption Headings. Caption headings in this Agreement are for convenience purposes only and are not
to be used to interpret or define the provisions of this Agreement.

Governing Law. This Agreement will be governed by federal law applicable to Lender and, to the
extent not preempted by federal law, the laws of the State of Wisconsin without regard to its
conflicts of law provisions. This Agreement has been accepted by Lender in the State of Wisconsin.

Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender’s request to submit to the
jurisdiction of the courts of Milwaukee County, State of Wisconsin.

No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Agreement
unless such waiver is given in writing and signed by Lender. No delay or omission on the part of
Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver
by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of Lender’s
right otherwise to demand strict compliance with that provision or any other provision of this
Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall
constitute a waiver of any of Lender’s rights or of any of Grantor’s obligations as to any future
transactions. Whenever the consent of Lender is required under this Agreement, the granting of such
consent by Lender in any instance shall not constitute continuing consent to subsequent instances
where such consent is required and in all cases such consent may be granted or withheld in the sole
discretion of Lender.

Notices. Any notice required to be given under this Agreement shall be given in writing, and shall
be effective when actually delivered, when actually received by telefacsimile (unless otherwise
required by law), when deposited with a nationally recognized overnight courier, or, if mailed,
when deposited in the United States mail, as first class, certified or registered mail postage
prepaid, directed to the addresses shown near the beginning of this Agreement. Any party may change
its address for notices under this Agreement by giving formal written notice to the other parties,
specifying that the purpose of the notice is to change the party’s address. For notice purposes,
Grantor agrees to keep Lender informed at all times of Grantor’s current address. Unless otherwise
provided or required by law, if there is more than one Grantor, any notice given by Lender to any
Grantor is deemed to be notice given to all Grantors.

Severability. If a court of competent jurisdiction finds any provision of this Agreement to be
illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the
offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible,
the offending provision shall be considered modified so that it becomes legal, valid and
enforceable. If the offending provision cannot be so modified, it shall be considered deleted from
this Agreement. Unless otherwise required by law, the illegality, invalidity, or unenforceability
of any provision of this Agreement shall not affect the legality, validity or enforceability of any
other provision of this Agreement.

 

 

COMMERCIAL PLEDGE AGREEMENT

					
	Loan No: 37956985-10000
	 	(Continued)
	 	Page 5
	 

Successors and Assigns. Subject to any limitations stated in this Agreement on transfer of
Grantor’s interest, this Agreement shall be binding upon and inure to the benefit of the parties,
their successors and assigns. If ownership of the Collateral becomes vested in a person other than
Grantor, Lender, without notice to Grantor, may deal with Grantor’s successors with reference to
this Agreement and the Indebtedness by way of forbearance or extension without releasing Grantor
from the obligations of this Agreement or liability under the Indebtedness.

Time is of the Essence. Time is of the essence in the performance of this Agreement.

DEFINITIONS. The following capitalized words and terms shall have the following meanings when used
in this Agreement. Unless specifically stated to the contrary, all references to dollar amounts
shall mean amounts in lawful money of the United States of America. Words and terms used in the
singular shall include the plural, and the plural shall include the singular, as the context may
require. Words and terms not otherwise defined in this Agreement shall have the meanings attributed
to such terms in the Uniform Commercial Code:

Agreement. The word “Agreement” means this Commercial Pledge Agreement, as this Commercial Pledge
Agreement may be amended or modified from time to time, together with all exhibits and schedules
attached to this Commercial Pledge Agreement from time to time.

Borrower. The word “Borrower” means Midwest Banc Holdings, Inc. and includes all co-signers and
co-makers signing the Note and all their successors and assigns.

Collateral. The word “Collateral” means all of Grantor’s right, title and interest in and to all
the Collateral as described in the Collateral Description section of this Agreement.

Default. The word “Default” means the Default set forth in this Agreement in the section titled
“Default”.

Event of Default. The words “Event of Default” mean any of the events of default set forth in this
Agreement in the default section of this Agreement.

Grantor. The word “Grantor” means Midwest Banc Holdings, Inc..

Guaranty. The word “Guaranty” means the guaranty from guarantor, endorser, surety, or accommodation
party to Lender, including without limitation a guaranty of all or part of the Note.

Income and Proceeds. The words “Income and Proceeds” mean all present and future income, proceeds,
earnings, increases, and substitutions from or for the Collateral of every kind and nature,
including without limitation all payments, interest, profits, distributions, benefits, rights, options, warrants, dividends, stock dividends,
stock splits, stock rights, regulatory dividends, subscriptions, monies, claims for money due and
to become due, proceeds of any insurance on the Collateral, shares of stock of different par value
or no par value issued in substitution or exchange for shares included in the Collateral, and all
other property Grantor is entitled to receive on account of such Collateral, including accounts,
documents, instruments, chattel paper, and general intangibles.

Indebtedness. The word “Indebtedness” means the indebtedness evidenced by the Note or Related
Documents, including all principal and interest together with all other indebtedness and costs and
expenses for which Grantor is responsible under this Agreement or under any of the Related
Documents. Specifically, without limitation, Indebtedness includes all amounts that may be
indirectly secured by the Cross-Collateralization provision of this Agreement.

Lender.
The word “Lender” means M&I Marshall & Ilsley Bank, its successors and assigns.

Note. The word “Note” means the Note executed by Midwest Banc Holdings, Inc. in the principal
amount of $50,000,000.00 dated March 24, 2006, together with all renewals of, extensions of,
modifications of, refinancings of, consolidations of, and substitutions for the note or credit
agreement.

Obligor. The word “Obligor” means without limitation any and all persons obligated to pay money or
to perform some other act under the Collateral.

Property. The word “Property” means all of Grantor’s right, title and interest in and to all the
Property as described in the “Collateral Description” section of this Agreement.

Related Documents. The words “Related Documents” mean all promissory notes, credit agreements, loan
agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust,
security deeds, collateral mortgages, and all other instruments, agreements and documents, whether
now or hereafter existing, executed in connection with the Indebtedness.

GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL PLEDGE AGREEMENT AND
AGREES TO ITS TERMS. THIS AGREEMENT IS DATED MARCH 24, 2006.

GRANTOR:

	 	 	 	 	 	 	 
	MIDWEST BANC HOLDINGS, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/ Daniel R. Kadolph 	 	 	 	 
	 

	 	 

Daniel R. Kadolph, Senior VP/CFO of Midwest Banc
	 	 	 	 
	 

	 	Holdings, Inc.	 	 	 	 

LASER PRO Lending, Ver. 5.30.10.001 Copr. Harland Financial
Solutions, Inc. 1997, 2006, All Rights Reserved. - WI
L:\LPL\CFI\LPL\E60.FC TR-32464 PR-5

 

 

IRREVOCABLE STOCK OR BOND POWER

	 	 	 
	FOR VALUE RECEIVED, the undersigned hereby sell, assign and transfer to
	 	 
	 	 	 
	 
	 	 
	 

Please
insert Social Security

or Taxpayer I.D. Number

 

FOR
STOCKS, COMPLETE THIS PORTION:
                     
 share(s) of the                  
    stock of                 
                     
   
                    
                    
                     
                   
represented by
Certificate No.                     
                     
                    
                    
                    , standing
in the name of the undersigned on the books of the Company.

FOR BONDS, COMPLETE THIS PORTION:                                          bond(s)of                                                              in
the principal amount of $            
         
                    ,
No.                                                             , standing in the name of the undersigned on
the books of said Company.

The undersigned hereby irrevocably constitute and appoint
                     
                    
                    attorney
 to transfer the above
stock or bond, as the case may be, on the books of said Company, with full power of substitution in
the premises.

Dated                                         

SIGNATURE(S) GUARANTEED BY:

     Signature
                                                                      

IMPORTANT
- READ CAREFULLY

The signature(s) must correspond with the name(s) as written upon the face of the certificate
or bond in every particular without alteration or enlargement or any change whatever, and must be
guaranteed by a bank or registered securities dealer.

 

 

LASER PRO
Lending,
Ver. 5.30.10.001 Copr. Harland Financial Solutions, Inc. 1997, 2006.
All Rights Reserved. WI L:\LPL\CFI\LPL\E80.FC TR-32464 PR-5

 

 

Number:
1039

COLLATERAL RECEIPT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal	 	Loan Date	 	Maturity	 	Loan No	 	Call / Coll	 	Account	 	Officer	 	Initials
	$50,000,000.00

	 	03-24-2006
	 	03-23-2007
	 	37956985-10000
	 	U100 / PO
	 	 	 	 	06564	 	 	 

References
in the shaded area are for Lender’s use only and do not limit
the applicability of this document to any particular loan or item.

Any item above containing “***” has been due to text length limitations.

	 	 	 	 	 	 	 
	     Grantor:

	 	Midwest Banc Holdings, Inc.
	 	Lender:
	 	M&l Marshall & llsley Bank
	 

	 	501 W North Avenue
	 	 	 	Correspondent Banking
	 

	 	Melrose Park, IL 60160
	 	 	 	770 N. Water Street
	 

	 	 	 	 	 	Milwaukee, Wl 53202

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
Description of Collateral	 	 	 
Custody Control
Signatures	 	 	 
Date Released
	 	 	 	 	 	 	 
	 

100% of Midwest Bank and Trust Company stock
 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
 
	 	 	 	 	 	 

Initial Delivery Acknowledgements:

	 	 	 
	Grantor:
	 	 
	 

	 	 
	 

	 	          (Grantor’s Signature)

	 	 	 
	M&l Marshall & llsley Bank
	By:
	 	 
	 

	 	 
	 

	 	     (Authorized Officer)

Return Receipt Acknowledgement:

Grantor acknowledges the receipt of all collateral, including all unmatured coupons, if any.

	 	 	 
	X
	 	 
	 

	 	 
	 

	 	     (Grantor’s Signature)

Instructions for Returning Collateral and Disposition of Coupons:                                         

	 	 	 
	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 

      

LASER PRO
Lending, Ver. 5.30.10.001 Copr. Harland Financial Solutions, Inc. 1997, 2006. All
Rights Reserved. -WI L:\LPL\CFI\LPL\G80.FC TR-32464 PR-5

 

 

AUTHORIZATION AGREEMENT FOR PREAUTHORIZED PAYMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal	 	Loan Date	 	Maturity	 	Loan No	 	Call / Coll	 	Account	 	Officer	 	Initials
	$50,000,000.00

	 	03-24-2006
	 	03-23-2007
	 	37956985-10000
	 	U100 / PO
	 	 	 	 	06564	 	 	 

References
in the shaded area are for Lender’s use only and do not limit
the applicability of this document to any particular loan or item.

Any item above containing “***” has been due to text length limitations.

	 	 	 	 	 	 	 
	    Borrower:

	 	Midwest Banc Holdings, Inc.
	 	Lender:
	 	M&I Marshall & Ilsley Bank
	 

	 	501 W North Avenue
	 	 	 	Correspondent Banking
	 

	 	Melrose Park, IL 60160
	 	 	 	770 N. Water Street
	 

	 	 	 	 	 	Milwaukee, WI 53202

      

As a convenience to Midwest Banc Holdings, Inc.
(“the Customer”) Customer requests and authorizes
M&l Marshall & Ilsley Bank (“the Originator”) to obtain payment of amounts becoming due the
Originator by initiating charges to Customer’s account in the form of checks, drafts, share drafts
or electronic debit entries. Customer also requests and authorizes M&I MARSHALL & ILSLEY BANK
(“Financial Institution”) to accept and honor same and to charge same to Customer’s account. This
Authorization will remain in effect until Customer notifies the Originator and the Financial
Institution in writing to terminate this Authorization and the Originator and the Financial
Institution have a reasonable time to act on the termination. Customer acknowledges receipt of a
copy of this Authorization on this date.

The following notice applies if:

a) the Originator and the Financial Institution are not the same,

b) Customer is an individual,

c) the account was established primarily for personal, family or household purposes, and

d) the regular payments may vary in amount.

If all of the above apply, Customer has the right to receive a notice from the originator 10 days
before each payment of how much the payment will be; however by signing this Authorization,
Customer elects to receive notice only when current payment would differ by more than 100% or N/A
from previous payment.

	 	 	 	 	 
	From:
	 	 	 	 
	Account Number-
	 	 	 	 
	Account Type (checking or savings)-

	 	 

	 	 
	ABA Routing Number-

	 	 

	 	 
	Requested Start Date-

	 	 

	 	 
	 

	 	 

	 	 

If Customer chooses a payment amount higher than amount scheduled on

the Promissory Note, please complete the following:

	 	 	 	 	 
	Requested Specific Payment Amount - $
	 	 	 	 
	 

	 	 

	 	 

To:

M&I Loan Number- 37956985

Date Signed-

Authorized
Signatures-

Midwest Banc Holdings, Inc.

BY:                                                             

Daniel R. Kadolph, Senior VP & CFO

      

LASER PRO Lending, Ver. 5.30.10.001 Copr. Harland Financial Solutions, Inc. 1997, 2006. All
Rights Reserved. WI L:\LPL\CFI\LPL\G60.FC TR-32464 PR-5

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