<PAGE>   1
                                                                    EXHIBIT 10.1




                                 FIRST AMENDMENT
                                       OF
                           TAYLOR CAPITAL GROUP, INC.
                                   401(k) PLAN



                  WHEREAS, Taylor Capital Group, Inc. (the "Company")
established and maintains the Taylor Capital Group, Inc. 401(k) Plan (the
"Plan"); and

                  WHEREAS, the Board of Directors of this Company believe the
best interests of this Company and the employees of this Company would be served
by amending the loan provisions of the Plan to extend the time in which a loan
may be repaid upon an employee's termination of employment;

                  NOW, THEREFORE, IT IS RESOLVED that, pursuant to the power to
amend the Plan reserved to this Company by Section 15.1 of the Plan, and by
authority granted to the officers of this Company by the Board of Directors of
this Company in resolutions adopted on ______________, 1999, the text of Section
9.3(e)(ii) of the Plan is hereby replaced by the following effective January 1,
1999:

                  "A participant whose settlement date has occurred and who has
                  an unpaid loan or unpaid portion of a loan still outstanding
                  immediately prior to the settlement date may repay an amount
                  equal to the unpaid balance of such loan.

                  If (A) the participant will not receive an immediate
                  distribution of his Plan benefits, repayment may be made by
                  the last day of the calendar quarter following the calendar
                  quarter in which his settlement date occurs, or if (B) the
                  participant will receive an immediate distribution of his Plan
                  benefits, repayment may be made prior to the time distribution
                  of his Plan benefits will be made.



<PAGE>   2
                  If a participant does not repay the entire balance of the loan
                  within the time period specified in (A) or (B) of this
                  subparagraph (ii), the balance of the loan shall be considered
                  in default as of the date specified in (A) or (B) of this
                  subparagraph (ii).

                  On the date that a loan is considered in default, the
                  promissory note shall immediately become due and payable and
                  an amount equal to such loan or any part thereof, together
                  with the accrued interest thereon, shall be deemed distributed
                  to the participant and shall be charged to the participant's
                  accounts after all other adjustments required under the Plan
                  have been made, but before any other distribution.

                  The provisions of this subparagraph (ii) shall apply to
                  existing loans provided the loan recipients are notified of
                  the terms of this subparagraph (ii), as well as to new loans."


                                    *     *     *


                  IN WITNESS WHEREOF, Taylor Capital Group, Inc. has caused
these presents to be signed on its behalf by its duly authorized officer this
____ day of _________________, 1999.

                                           TAYLOR CAPITAL GROUP, INC.


                                           By:
                                              ----------------------------------
                                           Its:
                                               ---------------------------------





                                      -2-