Document:

Form of Subscription Agreement

 Exhibit 10.3 
 READ CAREFULLY AND COMPLETE SECTION 2(l) BEFORE SIGNING 
 SUBSCRIPTION AGREEMENT 
 TAYLOR CAPITAL GROUP, INC. 
 COLE TAYLOR BANK

 ALL SUBSCRIPTIONS ARE SUBJECT TO ACCEPTANCE BY TAYLOR CAPITAL GROUP, INC. AND COLE TAYLOR BANK. ALL INFORMATION REQUIRED TO BE PROVIDED HEREIN BY
SUBSCRIBERS FOR DETERMINING PURCHASER QUALIFICATION WILL BE KEPT STRICTLY CONFIDENTIAL. 
 Taylor Capital Group, Inc. 
 Cole Taylor Bank 
 9550 West Higgins Road 
 Rosemont, Illinois 60018 
 Attn: Bruce W. Taylor 
 Ladies and Gentlemen: 
  

	1.	Subscription; Funding Obligation. 

  

	 	a)	Cole Taylor Bank, an Illinois-chartered member bank (the “Bank”), has offered to a limited number of accredited investors the opportunity to purchase in the
aggregate up to $60,000,000 in principal amount of 10% subordinated notes (“Notes”) to be issued by the Bank. Upon issuance of the Notes, each Person who purchases any Notes will receive a detachable warrant (the
“Warrant” and, collectively with the Notes, the “Offered Securities”) to acquire fifteen (15) shares of common stock (the “Common Stock”) of Taylor Capital Group, Inc., a Delaware corporation
(the “Holding Company” and, together with the Bank, the “Companies” and each of the Companies, individually, a “Company”), at $10 per share of Common Stock for each $1,000 in face amount of the
Notes purchased by such Buyer (the “Warrant Shares” and, collectively with the Offered Securities, the “Securities”). The undersigned (“Subscriber”) hereby irrevocably subscribes to purchase the
dollar amount of Notes as set forth on the signature page of this subscription agreement (this “Subscription Agreement”), and upon issuance of the Notes at Closing, Subscriber will receive a Warrant to acquire the corresponding
number of shares of Common Stock as set forth on the signature page of this Subscription Agreement. 

  

	 	b)	 Subscriber acknowledges that the Holding Company has entered into a securities purchase agreement (the “Securities Purchase Agreement”) with
respect to the private placement of either shares of Series A Non-Cumulative Convertible Perpetual Preferred Stock of the Holding Company (the “Preferred Shares”), or in some cases, shares of 

	 	 
Series B Convertible Preferred Stock of the Holding Company (the “Designated Preferred”) that upon the approval of the stockholders of the
Holding Company are exchangeable for Preferred Shares, for an aggregate purchase price of $60,000,000 (the “Preferred Stock Transaction”). The Preferred Stock Transaction is contemplated to close on or before September 30,
2008, subject to the satisfaction or waiver of the conditions to closing set forth in the Securities Purchase Agreement. Subscriber may obtain a copy of the Securities Purchase Agreement and other documents relating to the Preferred Stock
Transaction upon written request of the Holding Company. 

  

	 	c)	As described in Section 5 below, the closing of the Preferred Stock Transaction is a condition to closing the sale of the Offered Securities. No more than ten (10), nor less
than five (5), Business Days prior to the contemplated closing of the Preferred Stock Transaction, the Holding Company will give written notice to the Buyers, including Subscriber, of the pending closing of the Preferred Stock Transaction and wire
transfer instructions for a closing escrow account. Subscriber hereby warrants that, within three (3) Business Days of such written notice from the Holding Company, Subscriber shall deliver payment in full for the Offered Securities for which
Subscriber has subscribed hereunder (the “Purchase Price”), by wire transfer of immediately available funds to the closing escrow account identified in the notice. If the Closing has not occurred within ten (10) Business Days
after such funds are so delivered, the funds so delivered by Subscriber will be promptly refunded to Subscriber upon request. 

  

	 	d)	The closing (the “Closing”) of the acquisition of the Offered Securities by the Buyers (the “Sub Debt Transaction”) shall occur at the offices of
Katten Muchin Rosenman LLP, 525 West Monroe Street, Chicago, Illinois 60661. The date and time of the Closing (the “Closing Date”) shall be 10:00 a.m., Chicago time, on the date of (or, if such date is not a Business Day, the first
Business Day after) the satisfaction (or waiver) of the conditions to the Closing set forth in Section 5 below (other than any such condition required to be satisfied at the Closing) or such other date and time as is mutually agreed to by the
Holding Company and a Majority of Holders (as defined herein). At the Closing, the Companies and the Buyers shall make certain deliveries, as specified herein, and all such deliveries, regardless of chronological sequence, shall be deemed to occur
contemporaneously and simultaneously on the occurrence of the last delivery and none of such deliveries shall be effective until the last of the same has occurred. 

  

	 	e)	Subscriber acknowledges that the Companies have the right, in their sole discretion, to accept or reject this Subscription Agreement, in whole or in part, and this Subscription
Agreement is not binding on the Companies until the date, if any, on which it has been accepted by the Companies, which acceptance shall be noted by execution by each of the Companies of this Subscription Agreement where indicated on the signature
page hereof. 

  

	2.	Representations and Warranties of Subscriber. To induce the Companies to accept this Subscription Agreement, Subscriber hereby represents and warrants to, and agrees with,
each Company that: 

  

	 	a)	 Subscriber has received a copy of the Form of Note, the Form of Warrant and this Subscription Agreement and all exhibits and supplements thereto and any amendments
thereof (the “Subscription Materials”) regarding an investment in the Offered 

  

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Securities, has read the Subscription Materials carefully, is fully familiar with the contents of the Subscription Materials and hereby adopts, accepts and
agrees to be bound by the terms of the Subscription Materials if and when this Subscription Agreement is accepted by each Company. 

  

	 	b)	The Offered Securities were not offered to Subscriber by any means of general solicitation or general advertising. Subscriber has received no oral or written representations,
warranties or communications with respect to the offering of Offered Securities other than those contained in the Subscription Materials, and, in entering into this transaction, Subscriber is not relying upon any information other than that
contained in the Subscription Materials or that resulting from Subscriber’s own investigation of the Offered Securities and the Companies. Subscriber’s own investigation has included such review as Subscriber has considered necessary or
appropriate of the Holding Company’s annual report on Form 10-K for the year ended December 31, 2007 and quarterly reports on Form 10-Q for the quarters ended March 31, 2008 and June 30, 2008, each as filed with the Securities
and Exchange Commission (the “SEC”), and the Holding Company’s other filings with the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), since December 31, 2007 and prior to
the date of Subscriber’s execution and delivery hereof (such annual report, quarterly reports and other filings, the “Company 2008 SEC Filings”). It never has been represented, guaranteed or warranted, whether express or
implied, by either of the Companies, any officer, director, shareholder, partner, employee or agent of either of the Companies, any broker or dealer, or any other person that either of the Companies or Subscriber will realize any amount or type of
consideration, profit or loss as a result of activities of the Companies or Subscriber’s investment in the Securities. With respect to tax and other economic considerations involved in an investment in the Securities, Subscriber is not relying
on any Company. Subscriber has carefully considered and has, to the extent Subscriber believes such discussion necessary, discussed with Subscriber’s professional legal, tax, accounting and financial advisers the suitability of an investment in
the Offered Securities for Subscriber’s particular tax and financial situation and has determined that the Offered Securities included in Subscriber’s offer to purchase hereunder are a suitable investment for Subscriber. Subscriber hereby
acknowledges and agrees that Keefe, Bruyette & Woods, Inc. has acted as financial advisor to the Holding Company (and not as an underwriter or placement agent for the Offered Securities) and has not acted as an advisor to, and does not
represent, Subscriber. 

  

	 	c)	Subscriber has had an opportunity to ask questions of and receive answers from each Company or the representatives of each Company concerning the terms of this investment, all such
questions have been answered to the full satisfaction of Subscriber, and Subscriber has had the opportunity to request and obtain any additional information Subscriber deemed necessary to verify the information contained in the Subscription
Materials. 

  

	 	d)	 Subscriber has the knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of an investment in the Securities.
Subscriber recognizes that an investment in the Securities involves substantial risks, and has taken full cognizance of and understands all of the risk factors related to the purchase of Offered Securities, including, but not limited to, those set
forth in the Company 2008 

  

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SEC filings. Subscriber has determined that the purchase of the Securities is consistent with Subscriber’s investment objectives. Subscriber is able to
bear the economic risks of an investment in the Securities, and at the present time could afford a complete loss of such investment. 

  

	 	e)	Subscriber is acquiring the Offered Securities, and will acquire the Warrant Shares, for Subscriber’s own account, for investment purposes only, and not with a view towards the
sale or other distribution thereof, in whole or in part. Subscriber will not sell, hypothecate or otherwise transfer Subscriber’s Securities except pursuant to, and in compliance with the “plan of distribution” set forth in, an
effective registration statement for such Offered Securities under the Securities Act and such state or other laws as may be applicable, or upon receipt by the Holding Company of a written opinion of counsel in form and substance reasonably
acceptable to the Holding Company that such registration is not required for such sale, hypothecation or other transfer; provided, however that no such opinion shall be required in connection with (i) a transaction pursuant to Rule 144 in which
Subscriber provides the Holding Company with certifications reasonably requested by the Holding Company regarding compliance with the terms and provisions of Rule 144 or (ii) a distribution of any Offered Securities to an Affiliate of
Subscriber, so long as such Affiliate does not pay any consideration in connection with such distribution (other than issuance of equity interests in such Affiliate) and Subscriber provides the Holding Company with certifications reasonably
requested by the Holding Company in connection therewith. Subscriber acknowledges that the Warrants contain additional restrictions and limitations on transfer. The undersigned acknowledges that any certificate or certificates evidencing the
Securities shall bear the following or a substantially similar legend and such other legends as may be required by state blue sky laws: 

 “[THESE SECURITIES] HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES ACT OF ANY STATE. [EXCEPT AS OTHERWISE PROVIDED [IN THE SECURITIES OR ]THE SUBSCRIPTION
AGREEMENT, THESE SECURITIES] MAY NOT BE OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR [THESE SECURITIES] UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND SUCH STATE OR OTHER LAWS AS MAY BE APPLICABLE, OR RECEIPT BY THE
COMPANY OF AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE HOLDING COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.” 
  

	 	f)	Subscriber understands that, in connection with the offering described in the Subscription Materials, the Securities have not been registered under the 1933 Act, nor under the
securities laws of any state or other jurisdiction. The offering and sale of the Securities is intended to be exempt from registration under the 1933 Act by virtue of Section 4(2) of the 1933 Act and the provisions of Regulation D thereunder
and applicable state securities laws. The Securities have not been approved or disapproved by the Securities and Exchange Commission or by any other federal or state agency, and no such agency has passed on the accuracy or adequacy of the
Subscription Materials, nor made any finding or determination as to the fairness or suitability of an investment in the Securities. 

  

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	 	g)	Subscriber acknowledges that, so long as the indebtedness evidenced by the Notes is deemed to be Tier 2 Capital (or the equivalent) of the Bank under the applicable rules and
regulations promulgated by the Board of Governors of the Federal Reserve System (or successor thereto), the indebtedness evidenced by the Notes shall be subordinated and junior in right of payment to the Bank’s obligations to the general
creditors and depositors of the Bank. 

  

	 	h)	Subscriber understands that there are restrictions on the transferability of the Securities; there may be no public market for the Securities; and it may not be possible for
Subscriber to liquidate Subscriber’s investment in any of the Securities. Accordingly, Subscriber may have to hold the Securities, and bear the economic risk of this investment, indefinitely. 

  

	 	i)	Subscriber, if a natural person, has reached the age of maturity in the state or other jurisdiction in which Subscriber resides and is legally competent to execute this Subscription
Agreement and to make the representations and warranties contained herein. If Subscriber is other than a natural person: (i) Subscriber is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is
formed; (ii) Subscriber has all the requisite right, power, authority and capacity to enter into this Subscription Agreement and to consummate the transactions contemplated hereby; (iii) Subscriber has taken all necessary action to
authorize the execution, delivery and performance of this Subscription Agreement; (iv) this Subscription Agreement shall constitute a legal, valid and binding obligation of Subscriber enforceable in accordance with its terms; and
(v) Subscriber has not been organized or reorganized for the specific purpose of acquiring the Securities, unless each beneficial owner of such entity is an “accredited investor” within the meaning of Rule 501(a) of Regulation D
promulgated under the Act (“Accredited Investor”) and has submitted information substantiating such qualification. 

  

	 	j)	Subscriber is an Accredited Investor, in each of the categories initialed by Subscriber in paragraph (1) below. Failure so to qualify as an Accredited Investor will disqualify
Subscriber from investing in the Securities. 

  

	 	k)	The information contained in this Subscription Agreement is true, correct and complete in all respects as of the date hereof. 

  

	 	l)	Subscriber has initialed each of the following categories that describes Subscriber’s financial condition or status: 

  

					
	 ____
 Initial
	    	(i)	  	Subscriber is a director or executive officer of one or more of the Companies.
			
	 ____
 Initial
	    	(ii)	  	Subscriber is a natural person whose individual net worth or joint net worth with his or her spouse, as of the date hereof, exceeds $1,000,000.

  

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	 ____
 Initial
	    	(iii)	  	Subscriber is a natural person who had an individual income in excess of $200,000 (or joint income with his or her spouse in excess of $300,000) in 2006 and 2007 and has a reasonable expectation
of reaching the same income (or joint income) level in 2008.
			
	 ____
 Initial
	    	(iv)	  	Subscriber lawfully acts on behalf of a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a
“sophisticated person” (i.e., a person who has such knowledge and experience in financial and business matters that he (she) is capable of evaluating the merits and risks of an investment in the Securities).
			
	 ____
 Initial
	    	(v)	  	Subscriber is a bank as defined in Section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its
individual or a fiduciary capacity.
			
	 ____
 Initial
	    	(vi)	  	Subscriber is a broker or dealer registered pursuant to Section 15 of the Exchange Act.
			
	 ____
 Initial
	    	(vii)	  	Subscriber is an insurance company as defined in Section 2(13) of the Act.
			
	 ____
 Initial
	    	(viii)	  	Subscriber is an investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act.
			
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 Initial
	    	(ix)	  	Subscriber is a Small Business Investment Bank licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958.
			
	 ____
 Initial
	    	(x)	  	Subscriber is a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its
employees, and such plan has total assets in excess of $5,000,000.
			
	 ____
 Initial
	    	(xi)	  	Subscriber is a private business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940.
			
	 ____
 Initial
	    	(xii)	  	Subscriber is an organization described in Section 501(c)(3) of the Code, a corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring
the securities offered, with total assets in excess of $5,000,000.

  

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	 ____
 Initial
	    	(xiii)	  	Subscriber is an entity in which all of the equity owners are Accredited Investors. If this item is applicable, please give the name of each equity owner and the category or
categories (as listed above) applicable to each:
				
		    		  	Name	  	Category
				
		    		  	___________________________	  	___________________________
				
		    		  	___________________________	  	___________________________
				
		    		  	___________________________	  	___________________________

  

					
	 ____
 Initial
	    	(xiv)	  	Subscriber is an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 (“ERISA”), and (A) the investment decision is made by a plan fiduciary,
as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company, or registered investment advisor, or (B) the employee benefit plan has total assets in excess of $5,000,000 or (C) the employee benefit
plan is a self-directed plan with investment decisions made solely by persons that are Accredited Investors.

  

	3.	Representations and Warranties of the Companies. Each of the Holding Company and the Bank represents and warrants to Subscriber as set forth below, except (i) to the
extent set forth in the disclosure schedules hereto delivered to Subscriber prior to the execution of this Subscription Agreement, and (ii) other than with respect to Sections 3(a), (b), (c), (d) and (e) of this Subscription
Agreement, to the extent disclosed in the Company 2008 SEC Filings at least two Business Days prior to the date of this Subscription Agreement, and publicly available as of the date of this Subscription Agreement (excluding any cautionary,
predictive or forward-looking statements set forth in any section of such Company 2008 SEC Filings, including “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements”) (the “Available Company SEC
Documents”). Each exception set forth in a disclosure schedule is identified by reference to, or has been grouped under a heading referring to, a specific individual section or subsection of this Subscription Agreement and relates only to
such section or subsection; provided, however, that the inclusion of any item referenced in one section or subsection shall be deemed to refer to any other section or subsection, whether or not an explicit cross-reference appears, to the extent that
the applicability of such item to the other section is readily apparent. 

  

	 	a)	 Organization and Qualification. Except as set forth on Schedule 3(a), the Holding Company and each of the Subsidiaries (i) have been duly
incorporated or organized and are validly existing in good standing under the laws of their respective jurisdictions of incorporation or organization, and (ii) are duly qualified to conduct business and are in good standing as foreign
corporations or organizations in each jurisdiction in which their respective ownership or lease of property or the nature of their respective businesses requires such qualification, except where the failure to be so qualified would not reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect. True and correct copies of the Organizational Documents of the Holding Company and each of the Subsidiaries, as amended and currently in effect, have been made available
by the Holding Company to Subscriber. The Holding Company and each of the Subsidiaries has all requisite power and authority to carry on the businesses in 

  

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which it is engaged (as described in the Available Company SEC Documents) and to own or lease its properties. Schedule 3(a) correctly identifies each
Subsidiary of the Holding Company, identifying separately those subsidiaries that are directly owned by the Bank. 

  

	 	b)	Bank Holding Company; State Banking Corporation Status. The Holding Company is duly registered as a bank holding company under the Bank Holding Company Act of 1956, as
amended, and meets in all material respects the applicable requirements for qualification as such. The Bank holds the requisite authority from the Illinois Department of Financial and Professional Regulation to conduct business as a state-chartered
banking corporation under the laws of the State of Illinois. 

  

	 	c)	Authorized Capital Stock. 

  

	 	i)	The authorized capital stock of the Holding Company consists of: (A) 18,000,000 shares of Common Stock, and (B) 5,000,000 shares of preferred stock, none of which are
issued and outstanding. As of the date of this Subscription Agreement, of the shares of Common Stock currently authorized: (x) 11,011,184 shares are outstanding, (y) 2,773,243 shares are reserved for issuance pursuant to the Taylor Capital
Group, Inc. 2002 Incentive Compensation Plan, and (z) no shares were reserved for issuance pursuant to securities (other than the Preferred Shares, the Designated Preferred and the Warrants) exercisable or exchangeable for, or convertible into,
shares of Common Stock. 

  

	 	ii)	In the event the Preferred Shares are issued at the closing of the Preferred Stock Transaction, upon the filing of the amended and restated certification of incorporation
contemplated in connection with the Preferred Stock Transaction (the “Restated Charter”), the authorized capital stock of the Holding Company shall consist of: (A) 45,000,000 shares of Common Stock, and (B) 10,000,000
shares of preferred stock, 2,400,000 of which shall be designated as the Preferred Shares. In the event that Designated Preferred are issued at the closing of the Preferred Stock Transaction, then, upon the filing of the Restated Charter and the
exchange of Designated Preferred for Preferred Shares, the authorized capital stock of the Holding Company shall consist of: (A) 45,000,000 shares of Common Stock, and (B) 10,000,000 shares of preferred stock, 2,400,000 of which shall be
designated as Preferred Shares and 2,400,000 of which shall be designated as the Designated Preferred. 

  

	 	iii)	The issuance of the Warrants and Warrant Shares as contemplated herein will not cause the number of shares of Common Stock issuable pursuant to any outstanding Convertible
Securities or Stock Purchase Rights to increase as a result of any anti-dilution provisions relating thereto. There are no authorized or outstanding bonds, debentures, notes or other obligations of the Holding Company the holders of which have the
right to vote with the holders of Common Stock on any matter. 

  

	 	iv)	 All outstanding shares of Capital Stock (including any outstanding restricted stock) have been duly authorized and validly issued and are fully-paid and
nonassessable and have been offered and issued without violation of any preemptive rights of any Person or any applicable registration requirements of applicable securities laws. All outstanding Stock Purchase Rights have been issued in compliance,
in all material respects, with any applicable registration requirements of applicable securities laws, 

  

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and all shares of Common Stock issued upon exercise thereof will have been, upon such issuance, duly authorized and validly issued without violation of any
preemptive rights of any Person and will be fully-paid and nonassessable. 

  

	 	v)	There are no outstanding securities or instruments of the Holding Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts,
commitments, understandings or arrangements by which the Holding Company or any of its Subsidiaries is or may become bound to redeem any security of the Holding Company or any equity security, or security convertible into or exercisable for, any
equity security of any of its Subsidiaries. 

  

	 	vi)	The authorized capital stock of the Bank consists of 1,500,000 shares of common stock, par value $10.00 per share, 1,500,000 shares of which are issued and outstanding, and each of
which is owned directly by the Holding Company. 

  

	 	d)	Authorization; Enforcement; Validity. 

  

	 	i)	The Holding Company has the requisite corporate power and authority to execute, deliver and perform its obligations under this Subscription Agreement and the Warrants, including the
issuance of the Warrant Shares upon exercise of the Warrants. The execution, delivery and performance by the Holding Company of this Subscription Agreement and the Warrants, and the issuance of the Warrant Shares upon exercise of the Warrants, have
been duly authorized by the Board and no further corporate action on the part of the Holding Company is required in connection with the authorization thereof. No filing, consent, or authorization is required by the Holding Company, the Board or its
stockholders with respect to the Sub Debt Transaction. This Subscription Agreement has been duly executed and delivered by the Holding Company and constitutes, and, upon execution and delivery thereof by the Holding Company as contemplated herein,
the Warrants will constitute, legal, valid and binding obligations of the Holding Company, enforceable against the Holding Company in accordance with their respective terms, except as such enforceability may be limited by general principles of
equity, applicable bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies or as indemnification or
contribution may be limited by the securities laws and public policy relating thereto. 

  

	 	ii)	 The Bank has the requisite corporate power and authority to execute, deliver and perform its obligations under this Subscription Agreement and the Notes. The
execution, delivery and performance by the Bank of this Subscription Agreement and the Notes have been duly authorized by the Bank Board and no further corporate action on the part of the Bank is required in connection with the authorization
thereof. No filing, consent, or authorization is required by the Bank, the Bank Board or the Holding Company, as its sole stockholder, with respect to the Sub Debt Transaction. This Subscription Agreement has been duly executed and delivered by the
Bank and constitutes, and, upon execution and delivery thereof by the Bank as contemplated herein, the Notes will constitute, legal, valid and binding obligations of the Bank, enforceable against the Bank in accordance with their respective terms,
except as 

  

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such enforceability may be limited by general principles of equity, applicable bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies or as indemnification or contribution may be limited by the securities laws and public policy relating thereto.

  

	 	e)	Issuance of Securities. As of the Closing, a number of shares of Common Stock shall have been duly authorized and reserved for issuance as Warrant Shares which equals at
least the maximum number of shares of Common Stock then issuable upon exercise of the Warrants issued to the Buyers at Closing. Upon issuance, the Offered Securities will be free from all preemptive or similar rights, taxes, Liens or charges with
respect to the issue thereof. Upon issuance, the Warrant Shares will be validly issued, fully paid and nonassessable and free from all preemptive or similar rights, taxes, Liens or charges with respect to the issue thereof, with the holders being
entitled to all rights accorded to a holder of Common Stock. Subject to the accuracy of the representations and warranties of each Buyer in his, her or its Subscription Agreement, the offer, sale and issuance of the Offered Securities hereunder is
exempt from registration under the 1933 Act (pursuant to the exemption provided by Section 4(2) thereof) and all applicable state securities laws. 

  

	 	f)	No Defaults or Consents. 

  

	 	i)	Neither the execution, delivery or performance of this Subscription Agreement or the Warrants by the Holding Company, nor the issuance of the Warrant Shares upon exercise of any
Warrants, will (A) conflict with or violate any provision of the Second Amended and Restated Certificate of Incorporation of the Holding Company or the Second Amended and Restated Bylaws of the Holding Company (the “Bylaws”),
(B) except as set forth on Schedule 3(f)(i)(B), result in a breach of, constitute (with or without due notice or lapse of time or both) a default under, violate, result in the acceleration of, create in any party any right to accelerate,
terminate, modify or cancel, or require any notice, consent, approval or waiver under, any material Contractual Obligation or any Requirement of Law material to the operation of the Holding Company or any of its properties and assets;
(C) result in the imposition of any Lien upon any material properties or assets of the Holding Company, which Lien would materially detract from the value or materially interfere with the use of such properties or assets, (D) result in the
Holding Company being required to redeem, repurchase or otherwise acquire any outstanding equity or debt interests, securities or obligations in the Holding Company or any options or other rights exercisable for any of same, or (E) cause the
accelerated vesting of any employee stock options or restricted stock awards. 

  

	 	ii)	 Neither the execution, delivery or performance of this Subscription Agreement or the Notes by the Bank will (A) conflict with or violate any provision of the
Bank’s Certificate of Incorporation or its Bylaws (the “Bank Bylaws”), (B) except as set forth on Schedule 3(f)(ii)(B), result in a breach of, constitute (with or without due notice or lapse of time or both) a
default under, violate, result in the acceleration of, create in any party any right to accelerate, terminate, modify or cancel, or require any notice, consent, approval or waiver under, any material Contractual Obligation or any Requirement of Law
material to the operation of the Bank or any of its properties and 

  

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assets; (C) result in the imposition of any Lien upon any material properties or assets of the Bank, which Lien would materially detract from the value
or materially interfere with the use of such properties or assets, (D) result in the Bank being required to redeem, repurchase or otherwise acquire any outstanding equity or debt interests, securities or obligations in the Bank or any options
or other rights exercisable for any of same, or (E) cause the accelerated vesting of any employee stock options or restricted stock awards. 

  

	 	iii)	Except as expressly contemplated hereby or by the Notes or the Warrant, none of the Holding Company, the Bank or any of the other Subsidiaries is required to obtain any consent,
authorization or approval of, or make any filing, notification or registration with, any Governmental Authority or any self-regulatory organization in order for the Holding Company and the Bank to execute, deliver and perform this Subscription
Agreement and to consummate the transactions contemplated hereby. 

  

	 	g)	Deposit Accounts. Depending on their nature and size, the deposit accounts of the Bank are insured up to the regulatory maximum amount provided by the FDIC and no proceedings
for the modification, termination or revocation of any such insurance are pending or, to the Knowledge of the Holding Company, threatened or contemplated. 

  

	 	h)	No Restrictions. Except as set forth on Schedule 3(h), neither the Holding Company nor any of the Subsidiaries is currently prohibited, directly or indirectly, under
any order of the Federal Reserve Board (other than orders, regulations or policy statements applicable to bank holding companies and their subsidiaries generally), or any agreement or other instrument to which it is a party or is subject, from
paying any dividends, from making any other distribution on its capital stock, from repaying any loans or advances or from transferring any of its properties or assets. 

  

	 	i)	Absence of Certain Changes or Events. Since December 31, 2007, (i) there has not been any Material Adverse Effect or any event, condition, change or development, or
worsening of any existing event, condition, change or development that would reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, (ii) the Holding Company and the Subsidiaries have conducted their
respective businesses only in the ordinary course consistent with past practices, and (iii) neither the Holding Company nor any of its Subsidiaries has revalued any material assets of the Holding Company or any Subsidiary resulting in a
material impairment charge. Since December 31, 2007, neither the Holding Company nor any of the Subsidiaries has (i) made or declared any distribution in cash or in kind to its stockholders, (ii) sold or otherwise disposed of any
material asset outside of the ordinary course of business, or (iii) except as disclosed in Schedule 3(i)(iii), made or committed to make capital expenditures in excess of $1,000,000 with respect to any individual expenditure or in excess
of $6,000,000 million for all capital expenditures in the aggregate. Neither the Holding Company nor any of the Subsidiaries has taken any steps to seek protection pursuant to any bankruptcy law nor does the Holding Company have any knowledge or
reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so. The Holding Company and the Subsidiaries, individually and on a
consolidated basis, are not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at the Closing will not be, Insolvent. 

  

 11 

	 	j)	Governmental Permits, Etc. 

  

	 	i)	The Holding Company and the Subsidiaries hold all Company Permits that are required for the conduct of the businesses of the Holding Company and the Subsidiaries as currently being
conducted, each as amended through the date hereof, other than such Miscellaneous Permits the absence of which would not reasonably be expected, individually or in the aggregate to have a Material Adverse Effect. 

  

	 	ii)	The Regulatory Permits are in full force and effect and have not been pledged or otherwise encumbered, assigned, suspended, modified, conditioned, or restricted in any material
respect, canceled or revoked, and the Holding Company and each of the Subsidiaries and, to the Knowledge of the Holding Company, each of their respective executive officers and directors, have operated at all times in the past five (5) years,
and are operating, in compliance in all material respects with all terms thereof or any renewals thereof applicable to them. To the Knowledge of the Holding Company, no event has occurred, nor has any notice been received, with respect to any of the
Regulatory Permits which allows or results in, or after notice or lapse of time or both would reasonably be expected to result in, revocation, suspension, or termination, modification, or the imposition of any condition or restriction, thereof or
would reasonably be expected to result in any other material impairment of the rights of the holder of any such Regulatory Permit. 

  

	 	iii)	To the Knowledge of the Holding Company, in the past five (5) years, no Governmental Authority or self-regulatory organization has initiated any material proceeding or
investigation (other than examinations conducted in the ordinary course) into the business or operations of the Holding Company or any Subsidiary, or any executive officer or director thereof, or has instituted any proceeding seeking to revoke,
cancel or limit any Company Permit, and neither the Holding Company or any Subsidiary, nor any executive officer or director thereof has received any notice of any unresolved material violation by any Governmental Authority or self-regulatory
organization with respect to any report or statement relating to any examination of the Holding Company or any Subsidiary. Without limiting the generality of the foregoing, neither the Holding Company nor any Subsidiary nor, to the Knowledge of the
Holding Company, any of their respective executive officers or directors or Persons performing similar duties has been enjoined, indicted, convicted or made the subject of a disciplinary proceeding, censure, consent decree, memorandum of
understanding, cease and desist or administrative order on account of any violation of any Requirement of Law applicable to the Holding Company or any of the Subsidiaries. 

  

	 	iv)	Neither the Holding Company or any Subsidiary, nor, to the Knowledge of the Holding Company, any executive officer or director thereof is a party or subject to any agreement,
consent, decree or order or other understanding or arrangement with, or any directive of any Governmental Authority or self-regulatory organization which imposes any material restrictions on or otherwise adversely affects in any material way the
conduct of any of the business of the Holding Company and the Subsidiaries. 

  

 12 

	 	k)	Governmental and Regulatory Proceedings. There is no Action or Proceeding to which the Holding Company or the Bank is a party pending or, to the Knowledge of the Holding
Company, threatened or contemplated, before any Governmental Authority, Regulatory Agency or self-regulatory organization (i) that challenges the validity or propriety of the Sub Debt Transaction or (ii) if determined adversely to the
Holding Company or the Bank would reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. To the Knowledge of the Holding Company, no executive officer, director or employee of the Holding Company or the Bank is
the subject of any Action or Proceeding involving a claim of material breach of fiduciary duty relating to the Holding Company or the Bank or is or may be permanently or temporarily enjoined by any order, judgment or decree of any Governmental
Authority or self-regulatory organization from engaging in or continuing to conduct any of the businesses of the Holding Company or the Bank. Since January 1, 2006, the Holding Company has not received a stop order or other order suspending the
effectiveness of any registration statement filed by the Holding Company under the Exchange Act or the 1933 Act and, to the Knowledge of the Holding Company, the SEC has not issued any such order since such date. No order, judgment or decree of any
Governmental Authority, Regulatory Agency or self-regulatory organization has been issued in any Action or Proceeding to which the Holding Company or the Bank is or was a party that would reasonably be expected, individually or in the aggregate, to
have a Material Adverse Effect. 

  

	 	l)	Holding Company SEC Reports. The Holding Company has timely filed all forms, reports, schedules, proxy statements, registration statements and other documents (including all
exhibits thereto) required to be filed with the SEC since January 1, 2006 pursuant to the federal securities laws and the SEC rules and regulations thereunder, together with all certifications required pursuant to the Sarbanes-Oxley Act of 2002
(the “Sarbanes-Oxley Act”) (as they have been amended since the time of their filing, and including the exhibits thereto, collectively, the “Company SEC Reports”). The Company SEC Reports (including, without
limitation, any financial statements or schedules included or incorporated by reference therein) at the time they became effective, in the case of registration statements, or when filed, in the case of any other Company SEC Report, complied in all
material respects with the applicable requirements of the 1933 Act and the Exchange Act, as the case may be, and the rules and regulations of the SEC under all of the foregoing. None of the Company SEC Reports, including any financial statements or
schedules included or incorporated by reference therein, as of their respective dates, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading. Except as set forth in Schedule 3(l), none of the Subsidiaries is required to file any reports, forms or other documents with the SEC. There are no outstanding
or unresolved comments in comment letters received from the SEC staff with respect to any of the Company SEC Reports. 

  

 13 

	 	m)	Financial Statements. The audited consolidated financial statements (including the related notes) included in the Company SEC Reports and in the reports filed by the Holding
Company with the Federal Reserve Board, as of their respective dates, complied in all material respects with applicable accounting requirements and the published rules and regulations of the SEC and Federal Reserve Board with respect thereto,
present fairly, in all material respects, the consolidated financial condition and results of operations, changes in stockholders’ equity and cash flows of the Holding Company and its Subsidiaries, at the dates and for the periods indicated,
and were prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) applied on a consistent basis throughout the periods involved. The unaudited consolidated financial statements (including the
related notes) included in the Company SEC Reports, as of their respective dates, complied in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto, present fairly, in
all material respects, the consolidated financial condition and results of operations, changes in stockholders’ equity and cash flows of the Holding Company and its Subsidiaries, at the dates and for the periods indicated, and were prepared in
conformity with GAAP applied on a consistent basis, except that such unaudited consolidated financial statements may omit statements of changes in financial position and certain footnote disclosures required by GAAP as permitted by Form 10-Q under
the Exchange Act and are subject to normal year-end audit adjustments. Neither the Holding Company nor any Subsidiary has any Liabilities or obligations that are of a nature (whether known, unknown, accrued, absolute, contingent or otherwise and
whether due or to become due) that would be required to be reflected or reserved against on a consolidated balance sheet of the Holding Company and its Subsidiaries prepared in accordance with GAAP, or in the notes thereto, other than any
Liabilities to the extent (i) reserved against, reflected or disclosed on the most recent consolidated balance sheet of the Holding Company and its Subsidiaries contained in the Available Company SEC Documents, including the notes to financial
statements contained therein, (ii) incurred in the ordinary course of business consistent with past practice since the date of the most recent financial statements included in the Available Company SEC Documents, or (iii) that,
individually or in the aggregate, have not had and would not reasonably be expected to have a Material Adverse Effect. 

  

	 	n)	Listing Compliance. The Common Stock is listed on the NASDAQ Global Select Market (the “Nasdaq”) and, to the Knowledge of the Holding Company, there are no
proceedings to revoke or suspend such listing. The Holding Company has taken no action designed to, or that would reasonably be expected to have the effect of, terminating the registration of the Common Stock under the Exchange Act or the listing of
the Common Stock on Nasdaq. The Holding Company is in compliance with the requirements of Nasdaq for continued listing of the Common Stock thereon and any other Nasdaq listing and maintenance requirements. In the past five (5) years, trading in
the Common Stock has not been suspended by the SEC or Nasdaq (other than temporary suspensions, in each case during the course of one trading day, to allow dissemination of material information). 

  

	 	o)	Sarbanes-Oxley; Disclosure and Internal Controls. 

  

	 	i)	The Holding Company is in compliance in all material respects with all of the provisions of the Sarbanes-Oxley Act that are applicable to it or any of the Subsidiaries.

  

 14 

	 	ii)	The Holding Company maintains a system of disclosure controls and procedures as defined in Rule 13a-15 under the Exchange Act that are designed to provide reasonable assurance that
information required to be disclosed by the Holding Company in reports that the Holding Company is required to file under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and
forms, and that such information is accumulated and communicated to the Holding Company’s management, including the Holding Company’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding
required disclosures. As of June 30, 2008, to the Knowledge of the Holding Company, such controls and procedures were effective, in all material respects, to provide such reasonable assurance. 

  

	 	iii)	The Holding Company and its consolidated Subsidiaries have established and maintained a system of internal control over financial reporting (within the meaning of Rule 13a-15 under
the Exchange Act) (“Internal Control Over Financial Reporting”). The Holding Company’s certifying officers have evaluated the effectiveness of the Holding Company’s Internal Control Over Financial Reporting as of the end
of the period covered by the most recently filed annual report on Form 10-K of the Holding Company under the Exchange Act (the “Evaluation Date”). The Holding Company presented in such annual report the conclusions of the certifying
officers about the effectiveness of the Holding Company’s Internal Control Over Financial Reporting based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the Holding Company’s
Internal Control Over Financial Reporting that have materially affected, or are reasonably likely to materially affect, the Holding Company’s Internal Control Over Financial Reporting. The Holding Company has devised and maintains a system of
internal accounting controls sufficient to provide reasonable assurances that: (A) transactions are executed in accordance with management’s general or specific authorization; (B) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain accountability for assets; (C) access to assets is permitted only in accordance with management’s general or specific authorization; and (D) the recorded
accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 

  

	 	p)	Integration; Other Issuances of Securities. The Holding Company has not made, nor will the Holding Company make, any offers or sales of any security, or solicited or will
solicit any offers to buy any security under circumstances that would require registration under the 1933 Act of the issuance of the Offered Securities to the Buyers. 

  

	 	q)	 Tax Matters. Since January 1, 2006, the Holding Company and the Subsidiaries have made or filed all federal, state and foreign income and all other
material Tax Returns required by any jurisdiction to which they are subject (unless and only to the extent that the Holding Company or any of the Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid
and unreported Taxes) and have paid all Taxes that are material in amount, shown or determined to be due on such Tax Returns, except those being contested in good faith, and have set aside on their books provisions reasonably adequate for the
payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. To the Knowledge of the 

  

 15 

	 	 
Holding Company, there are no unpaid Taxes in any material amount claimed to be due by any Taxing Authority, and to the Knowledge of the Holding Company,
there is no basis for any such claim. Neither the Holding Company nor any Subsidiary has executed a waiver with respect to the statute of limitations relating to the assessment or collection of any Tax. Except as disclosed in Schedule 3(q),
none of the Holding Company’s, or any of the Subsidiaries’, Tax Returns is presently being audited by any Taxing Authority. 

  

	 	r)	Title to Assets. Except as set forth on Schedule 3(r), the Holding Company and the Subsidiaries have good and marketable title in and to all property owned by them and
that is material to their businesses, free and clear of all Liens, except for Liens reflected in the most recent consolidated balance sheet of the Holding Company included in the Available Company SEC Documents, or that do not materially affect the
value of such property and do not materially interfere with the use made and proposed to be made of such property by them. Any material property and facilities held under lease by the Holding Company and the Subsidiaries are held under valid,
subsisting and enforceable leases concerning which the Holding Company and the Subsidiaries are in material compliance. 

  

	 	s)	Compliance. The Holding Company and the Subsidiaries are not: (i) in violation of any of their respective Organizational Documents, (ii) in default under or in
violation of (and, to the Knowledge of the Holding Company, no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Holding Company or the Subsidiaries under), nor has the Holding
Company or the Subsidiaries received notice of a claim that it is in default under or that it is in violation of, any Company Contract to which it is a party or by which it or any of its properties is bound (whether or not such default or violation
has been waived), (iii) in violation of any order of any court, arbitrator or Governmental Authority, or (iv) in violation of any applicable Requirement of Law, and with respect to clauses (ii), (iii) or (iv) above, other than
where such violation or default would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. The Holding Company and each of the Subsidiaries and the conduct and operation of their respective businesses is
and has been in compliance with each Requirement of Law that affects or relates to this Subscription Agreement, the Notes or the Warrant or any of the transactions contemplated by such documents, other than where the failure to be or to have been in
compliance would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. 

  

	 	t)	Transactions with Affiliates. Since January 1, 2006, all transactions required to be disclosed by the Holding Company pursuant to Item 404 of Regulation S-K
promulgated under the 1933 Act have been disclosed in an Available Company SEC Document. Other than the Transactions, no transactions, or series of related transactions, is currently proposed, by the Holding Company or any of the Subsidiaries or, to
the Knowledge of the Holding Company, by any other Person, to which the Holding Company or any of the Subsidiaries would be a participant that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the 1933 Act if
consummated. 

  

 16 

	 	u)	Investment Company. The Holding Company is not, and after giving effect to the Sub Debt Transaction will not be, an “investment company” as such term is defined in
the Investment Company Act of 1940, as amended. 

  

	 	v)	No Corrupt Practices. Neither the Holding Company nor any Subsidiary, nor to the Knowledge of the Holding Company any director, officer, employee, agent or other Person
acting on behalf of the Holding Company or any Subsidiary has, in the course of his or its actions for, or on behalf of the Holding Company or any of the Subsidiaries (i) used any corporate funds for any unlawful contribution gift,
entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employees from corporate funds; (iii) violated or is in violation
of in any material respect any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee. 

  

	 	w)	No Brokers. Except as disclosed on Schedule 3(w), no broker, investment banker or other Person is entitled to any broker’s, finder’s or other similar fee or
commission in connection with the execution and delivery of this Subscription Agreement or the Offered Securities or the consummation of the Sub Debt Transaction based upon arrangements made by or on behalf of the Holding Company or the Bank, and
the Companies shall indemnify and hold Subscriber harmless against any claim for any such fee or commission based on any such arrangements. 

  

	 	x)	Reports. The Holding Company and each of the Subsidiaries have, filed all reports, forms, correspondence, registrations and statements, together with any amendments required
to be made with respect thereto (“Reports”), that they were required to file since January 1, 2006 with (i) any Bank Regulatory Authority and (ii) any other federal, state or foreign governmental or regulatory agency
or authority (the agencies and authorities identified in clauses (i) through (ii), are, collectively, the “Regulatory Agencies”), and all other reports and statements required to be filed by them since January 1, 2006,
including any report or statement required to be filed pursuant to the laws, rules or regulations of the United States, any state, or any Regulatory Agency and have paid all fees and assessments due and payable in connection therewith, except where
the failure to file such report, registration or statement or to pay such fees and assessments would not reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect. Any such Report and any statement regarding the
Holding Company or any Subsidiaries made in any Report filed with or otherwise submitted to any Regulatory Agency complied in all material respects with relevant legal requirements, including as to content. 

  

	4.	Covenants. 

  

	 	a)	 Form D and Blue Sky. The Holding Company agrees to file a Form D with respect to the Offered Securities as required under Regulation D and to provide a copy
thereof to Subscriber promptly after such filing. The Holding Company shall, on or before the Closing Date, take such action, at the Holding Company’s sole expense, as the Holding Company shall reasonably determine is necessary in order to
obtain an exemption for or 

  

 17 

	 	 
to qualify the Note and the Warrant for sale to Subscriber at the Closing pursuant to this Subscription Agreement under applicable securities or “Blue
Sky” laws of the states of the United States (or to obtain an exemption from such qualification) and shall provide evidence of any such action so taken to Subscriber on or prior to the Closing Date. At the Holding Company’s sole expense,
the Holding Company shall make all filings and reports relating to the offer and sale of the Offered Securities required under applicable securities or “Blue Sky” laws of the states of the United States following the Closing Date.

  

	 	b)	Listing. The Company shall promptly secure the listing of all of the Warrant Shares on Nasdaq (subject to official notice of issuance) and shall use its reasonable best
efforts to maintain such listing of all Warrant Shares from time to time issuable upon exercise of the Warrants, unless a Majority of Holders otherwise agrees in writing. Unless a Majority of Holders otherwise agrees in writing, neither the Holding
Company nor any of its Subsidiaries shall take any action that would be reasonably expected to result in the delisting or suspension of the Common Stock on Nasdaq and, in the event that the Common Stock is delisted or suspended from trading on
Nasdaq without the prior written consent of a Majority of Holders, the Holding Company shall use its reasonable best efforts to cause the Common Stock to be listed and authorized for trading on a national securities exchange or automated quotation
system. 

  

	 	c)	Inspection Rights. At any time following the Closing, so long as Subscriber and its Affiliates hold Notes in the principal amount of at least $12,000,000, the Bank will
permit Subscriber, as well as any agents or representatives of Subscriber, to inspect, at reasonable hours and upon reasonable notice, the Bank’s books and records, provided that the Bank shall have the right to require that Subscriber or its
agents or representatives execute and deliver a confidentiality agreement on customary terms as a condition to any such inspection. 

  

	 	d)	Pro Rata Treatment. 

  

	 	i)	All payments on account of principal of or interest on any Notes, fees or any other obligations owing to or for the account of any one or more of the Buyers shall be apportioned
ratably among the Notes in proportion to the respective unpaid principal amounts thereof. 

  

	 	ii)	Subscriber agrees that if it shall receive any amount hereunder, applicable to the payment of any of the amounts due under the Notes that exceeds its ratable share (according to the
proportion of (x) the unpaid principal amount of Notes held by Subscriber at such time to (y) the aggregate unpaid principal amount of all Notes) of payments on account of such obligations then or therewith obtained by all the Buyers to
which such payments are required to have been made, such Subscriber shall forthwith pay over to the other Buyers such excess amount in the proportions necessary to cause the total payments to be apportioned to the Notes ratably as required in this
Section 4(d). 

  

	 	e)	 Transfer Agent Instructions. The Holding Company shall issue irrevocable instructions to its transfer agent, and any subsequent transfer agent, to issue
certificates or credit shares to the applicable balance accounts at DTC, registered in the name of Subscriber or 

  

 18 

	 	 
its nominee(s), for the Warrant Shares in such amounts as specified from time to time by Subscriber to the Holding Company upon exercise of the Warrant (the
“Irrevocable Transfer Agent Instructions”). The Holding Company warrants that no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 4(e) will be given by the Holding Company to its
transfer agent with respect to the Securities, and that the Securities shall otherwise be freely transferable on the books and records of the Holding Company, as applicable, and to the extent provided in this Subscription Agreement and the Offered
Securities. If Subscriber effects a sale, assignment or transfer of the shares of Common Stock in accordance with Section 2(e), the Holding Company shall permit the transfer and shall promptly instruct its transfer agent to issue one or more
certificates or credit shares to the applicable balance accounts at DTC in such name and in such denominations as specified by such Subscriber to effect such sale, transfer or assignment. In the event that such sale, assignment or transfer involves
Warrant Shares sold, assigned or transferred pursuant to, and in accordance with the plan of distribution set forth in, an effective registration statement, as certified by Subscriber, or pursuant to Rule 144 as set forth in an opinion delivered as
required by Section 2(e), the transfer agent shall issue such Warrant Shares to Subscriber, assignee or transferee, as the case may be, without any restrictive legend. 

  

	 	f)	Use of Proceeds. The net proceeds received by the Holding Company and the Bank from the issuance and sale of the Offered Securities shall be used to increase the regulatory
capital of the Bank. 

  

	 	g)	Stockholder Meeting. The Holding Company shall take all action necessary to duly call, give notice of, convene and hold a special meeting of stockholders (the
“Stockholder Meeting”) for the purpose of obtaining the Stockholder Approval (the date such approval is obtained, the “Stockholder Approval Date”) as promptly as reasonably practicable after the SEC confirms that it
has no further comments on the Proxy Statement (as defined below) or the Holding Company otherwise determines in good faith that such Proxy Statement will not be reviewed by the SEC, but in any event no later than the date of the stockholders
meeting to be held in connection with the Preferred Stock Transaction. In the event that the Holding Company does not obtain the Stockholder Approval at the Stockholder Meeting, the Holding Company agrees that, upon the request of a Majority of
Holders, it will seek to obtain the Stockholder Approval at any subsequent meeting of stockholders of the Holding Company until the Stockholder Approval is obtained. Without limiting the generality of the foregoing, the Holding Company will comply
with the terms of Section 4(h) hereof with respect to each such meeting of stockholders as if it were the Stockholder Meeting. When the Stockholder Vote has occurred and/or the Stockholder Approval has been obtained, the Holding Company shall
promptly notify Subscriber thereof, and such notice shall serve as conclusive evidence that the Stockholder Vote has occurred for the purposes of determining the exercisability of the Warrants. 

  

	 	h)	Proxy Material. 

 (i) In connection
with the Stockholder Meeting, the Holding Company will (A) as promptly as reasonably practicable after the date of this Agreement prepare and file with the SEC a proxy statement (as it may be amended or supplemented from time to time, the

  

 19 

 
“Proxy Statement”) related to the consideration of the Stockholder Approval Matters at the Stockholder Meeting, (B) respond as promptly
as reasonably practicable to any comments received from the SEC with respect to such, (C) as promptly as reasonably practicable prepare and file any amendments or supplements necessary to be filed in response to any SEC comments or as otherwise
required by law, (D) mail to its stockholders as promptly as reasonably practicable the Proxy Statement and all other customary proxy or other materials for meetings such as the Stockholder Meeting, (E) to the extent required by applicable
law, as promptly as reasonably practicable prepare, file and distribute to the Holding Company stockholders any supplement or amendment to the Proxy Statement if any event shall occur which requires such action at any time prior to the Stockholder
Meeting, and (F) otherwise use commercially reasonable efforts to comply with all requirements of law applicable to any Stockholder Meeting. Subscriber shall cooperate with the Holding Company in connection with the preparation of the Proxy
Statement and any amendments or supplements thereto, including promptly furnishing the Holding Company upon request with any and all information as may be required to be set forth in the Proxy Statement or any amendments or supplements thereto under
applicable law. The Proxy Statement shall include the recommendation of the Board of Directors of the Holding Company that stockholders vote in favor of the approval of the Stockholder Approval Matters at the Stockholder Meeting. 
 (ii) If, at any time prior to the Stockholder Meeting, any information relating to the Holding Company or Subscriber or any of their
respective Affiliates should be discovered by the Holding Company or Subscriber which should be set forth in an amendment or supplement to the Proxy Statement so that the Proxy Statement shall not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading, the party that discovers such information shall promptly
notify the other parties and, to the extent required by applicable law, the Holding Company shall disseminate an appropriate amendment thereof or supplement thereto describing such information to the Holding Company’s stockholders. 

(iii) The Holding Company agrees that (A) none of the information included or incorporated by reference in the Proxy Statement or
any other document filed with the SEC in connection with the transactions contemplated by this Agreement (all such other documents, the “Other Filings”) shall, in the case of the Proxy Statement, at the date it is first mailed to
the Holding Company’s stockholders or at the time of the Stockholder Meeting or at the time of any amendment or supplement thereof, or, in the case of any Other Filing, at the date it is first mailed to the Holding Company’s stockholders
or at the date it is first filed with the SEC, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under
which they are made, not misleading, except that no covenant is made by the Holding Company with respect to statements made or incorporated by reference therein based on information supplied by the Buyers or any of their Affiliates or
representatives in connection with the preparation of the Proxy Statement or the Other Filings for inclusion or incorporation by reference therein, and (B) the Proxy Statement and the Other Filings that are filed by the Holding Company shall
comply as to form in all material respects with the requirements of the Exchange Act. 
  

 20 

 (iv) Subscriber covenants that none of the information supplied in writing by or on
behalf of Subscriber expressly for inclusion in the Proxy Statement or the Other Filings will, in the case of the Proxy Statement, at the date it is first mailed to the Holding Company’s stockholders or at the time of the Stockholder Meeting or
at the time of any amendment or supplement thereof, or, in the case of any Other Filing, at the date it is first mailed to the Holding Company’s stockholders or at the date it is first filed with the SEC, contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading. 
  

	 	i)	The Companies and the Buyers shall use commercially reasonable efforts (in the case of the Companies, after consultation with their independent registered public accountants and
financial advisor) to agree, prior to the Closing, upon an allocation (for federal income tax purposes and otherwise) to the Notes and the Warrant of the purchase price paid by each Buyer. A written agreement upon such an allocation, executed by
each of the Companies and a Majority of Holders shall constitute such agreement of the Companies and Buyers, and such agreement shall be binding upon Subscriber and each of the other Buyers. If no such agreement is so executed prior to the Closing,
the allocation (for federal income tax purposes and otherwise) to the Notes and the Warrant of the purchase price paid by each Buyer shall be determined in good faith by the Audit Committee of the Board (after consultation with the Companies’
independent registered public accountants and financial advisor) promptly following the Closing based upon a good faith determination of the fair market value of the Notes and the Warrants, and such determination shall be binding upon Subscriber and
each of the other Buyers. In any event, the Holding Company shall promptly notify Subscriber of such agreement or determination, as applicable. 

  

	 	j)	Reasonable Best Efforts; Cooperation. Each party shall use its reasonable best efforts to satisfy on the timely basis each of the covenants and conditions to be satisfied by
it as provided in Sections 4 and 5 of this Subscription Agreement. Each party shall refrain from taking any action which would render any representation or warranty contained in Sections 2 or 3 of this Subscription Agreement inaccurate in any
material respect as of the Closing Date. Each party shall promptly notify the other of (i) any event or matter that would reasonably be expected to cause any of its representations or warranties to be untrue in any material respect as of the
Closing Date or that would reasonably be expected to cause any of the conditions to closing provided in Section 5 not to be satisfied in the manner contemplated herein, or (ii) any action, suit or proceeding that shall be instituted or
threatened against such party to restrain, prohibit or otherwise challenge the legality of any of the transactions contemplated by this Subscription Agreement. The parties shall cooperate fully with each other and assist each other in defending any
lawsuits or other legal proceedings, whether judicial or administrative, brought against either party challenging this Subscription Agreement or any of the transactions contemplated by this Subscription Agreement, including seeking to have any stay
or temporary restraining order entered by any court, Bank Regulatory Authority or other Governmental Authority vacated or reversed. 

  

 21 

	 	k)	Noncircumvention. The Companies shall not, and shall not permit their respective Subsidiaries, by amendment of their respective Organizational Documents or through any
reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of the Subscription
Agreements, the Notes, or the Warrants, and will at all times in good faith carry out all of the provisions of the Subscription Agreements, the Notes and the Warrants. 

  

	5.	Conditions of Sale and Purchase. 

  

	 	a)	Conditions to Obligations of the Companies. The obligations of the Companies hereunder to issue and sell Offered Securities to Subscriber at the Closing are subject to the
satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Companies’ sole benefit and may be waived by the Companies at any time in their sole discretion by providing each Buyer
with prior written notice thereof: 

  

	 	i)	Subscriber shall have deposited its portion of the Purchase Price by wire transfer of immediately available funds in accordance with the notice given in pursuant to
Section 1(c) of this Subscription Agreement. 

  

	 	ii)	No court or other Governmental Authority having jurisdiction over the Holding Company or the Bank or any Buyer shall have instituted, enacted, issued, promulgated, enforced or
entered any Requirement of Law (whether temporary, preliminary or permanent) that is then in effect and that (x) has the effect of making illegal or otherwise prohibiting or invalidating consummation of the Sub Debt Transaction or any provision
of this Subscription Agreement or of any of the Offered Securities or (y) seeks to restrain, prohibit or invalidate the consummation of the Sub Debt Transaction or to invalidate any provision of this Subscription Agreement or of any of the
Offered Securities. 

  

	 	iii)	Each Buyer shall have performed, satisfied and complied in all material respects with the covenants and agreements contained in this Subscription Agreement and required to be
performed, satisfied or complied with by such Buyer at or prior to the Closing. 

  

	 	b)	Conditions to Obligations of Subscriber. The obligation of Subscriber hereunder to purchase the Offered Securities at the Closing is subject to the satisfaction, at or before
the Closing Date, of each of the following conditions, provided that these conditions are for Subscriber’s sole benefit and may be waived by Subscriber at any time in its sole discretion by providing the Companies with prior written notice
thereof, provided further that Subscriber agrees that the conditions set forth in clauses (iii), (iv) and (vi) below may be waived by the Majority of Holders in their discretion on behalf of all Buyers at any time by providing the
Companies with prior written notice thereof: 

  

	 	i)	The Bank shall have duly executed and delivered the Notes in such amounts as are set forth on the signature page of this Subscription Agreement. 

  

	 	ii)	The Holding Company shall have duly executed and delivered the Warrants in such amounts as are set forth on the signature page of this Subscription Agreement.

  

 22 

	 	iii)	(A) Each of the representations and warranties of the Companies contained in Sections 3(a), (b), (c), (d) and (e) of this Subscription Agreement shall be true and correct
in all material respects (except that each of such representations and warranties that is qualified as to materiality shall be true and correct in all respects) on and as of the Closing Date as if made on and as of such date, other than
representations and warranties which address matters only as of a certain date, which shall be true and correct as of such certain date and (B) the other representations and warranties of the Companies shall be true and correct on and as of the
Closing Date as if made on and as of such date, other than representations and warranties which address matters only as of a certain date, which shall be true and correct as of such certain date, except for such failures to be true and correct as
individually or in the aggregate, did not, and would not reasonably be expected to result in, a Material Adverse Effect. For purposes of determining the satisfaction of clause (B) of this condition, the representations and warranties of the
Companies shall be deemed not qualified by any references therein to materiality generally or to a Material Adverse Effect (or qualifiers similar to the foregoing). The Holding Company shall have delivered a certificate, executed by duly authorized
executive officers of each of the Holding Company and the Bank and dated as of the Closing Date, certifying that the condition set forth in this Section 5(b)(iii) has been satisfied. 

  

	 	iv)	The Companies shall have delivered the opinion of Katten Muchin Rosenman LLP, the Companies’ outside counsel, dated as of the Closing Date, and in substantially the form of
Exhibit B attached hereto. 

  

	 	v)	The Preferred Stock Transaction shall have closed. 

  

	 	vi)	Since the date of this Subscription Agreement, there shall not have been a Material Adverse Change. 

  

	 	vii)	No court or other Governmental Authority having jurisdiction over the Holding Company or the Bank or any Buyer shall have instituted, enacted, issued, promulgated, enforced or
entered any Requirement of Law (whether temporary, preliminary or permanent) that is then in effect and that (x) has the effect of making illegal or otherwise prohibiting or invalidating consummation of any of the Sub Debt Transaction or any
provision of this Subscription Agreement or any of the Offered Securities or (y) seeks to restrain, prohibit or invalidate the consummation of any of the Sub Debt Transaction or to invalidate any provision of this Subscription Agreement or any
of the Offered Securities. 

  

	 	viii)	The Holding Company shall have received subscriptions for the purchase of, and funds shall have been deposited into the Closing Escrow Account sufficient to pay the aggregate
purchase price for, an aggregate of at least $30,000,000 in principal amount of Notes (including the Notes being purchase by Subscriber) and, concurrently with the Closing, the Bank shall issue an aggregate of at least $30,000,000 in principal
amount of Notes (including the Notes being purchased by Subscriber) in connection with the Subscription Agreements. 

  

	 	ix)	Each of the Holding Company and the Bank shall have performed, satisfied and complied in all material respects each of its respective covenants and agreements contained in this
Subscription Agreement and required to be performed, satisfied or complied at or prior to the Closing. 

  

 23 

	6.	Termination. 

  

	 	a)	Termination by Mutual Consent. This Subscription Agreement may be terminated at any time prior to the Closing, by mutual written consent of the Holding Company and either
(i) Subscriber or (ii) a Majority of Holders. 

  

	 	b)	Termination by Either Holding Company or Subscribers. This Subscription Agreement may be terminated by either the Holding Company or Subscriber at any time prior to Closing:
if the Closing has not occurred on or before December 31, 2008 (the “Outside Date”); provided, however, that the right to terminate this Subscription Agreement under this clause will not be available to any party to this
Subscription Agreement whose failure to fulfill any of its obligations under this Subscription Agreement has been a principal cause of, or resulted in, the failure of the Closing to have occurred by such date or who otherwise has breached an
obligation under this Subscription Agreement. 

  

	 	c)	Effect of Termination. In the event that this Subscription Agreement shall be terminated pursuant to this Section 6, all further obligations of the parties under this
Subscription Agreement shall terminate without further liability of any party to another. A termination under this Section 6 shall not relieve any party of any liability for a breach of, or for any misrepresentation under this Subscription
Agreement, or be deemed to constitute a waiver of any available remedy (including specific performance if available) for any such breach or misrepresentation. Nothing in this Section 6(c) shall relieve either party to this Subscription
Agreement of liability for a breach of a covenant or obligation under this Subscription Agreement prior to the Closing. 

  

	7.	Miscellaneous. 

  

	 	a)	 Subject to the terms of this Section 7(a), Subscriber hereby agrees that the affirmative approval of a Majority of Holders shall have full power and authority
to: (i) waive any of the conditions set forth in clauses (iii), (iv) or (vi) of Section 5(b) hereof; and (ii) amend or modify any of the provisions of the Subscription Agreements, the Notes or the Warrants; provided,
however, that prior to the Closing any such amendment or modification pursuant to this clause (ii) that (A) changes the purchase price, maturity date or interest rate of the Notes, or the exercise price, number of Warrant Shares or
term of the Warrants, or (B) materially and adversely affects any other significant rights of Subscriber under this Subscription Agreement or any of the Offered Securities, shall require the written consent of Subscriber (it being understood
and agreed that the application of any provision of this Subscription Agreement or the Offered Securities in accordance with its terms shall not be deemed an amendment or modification for purposes of this provision). For the avoidance of doubt, the
foregoing sentence does not grant, and shall not be deemed to grant, any power or authority to Buyers representing the Majority of Holders or any other Person to exercise, waive or take other action with respect to rights provided to Subscriber
after the Closing pursuant to and in accordance with any of the Offered Securities other than as set forth in the Offered Securities. Each party hereto acknowledges that this Section 7(a) is intended to promote the efficient negotiation and
handling of matters arising under or in connection with this Subscription 

  

 24 

	 	 
Agreement and the Closing pursuant to this Section 7(a). The Holding Company shall be entitled to rely upon, without independent investigation, any act,
notice, instruction or communication from Buyers representing the Majority of Holders on behalf of all Buyers consistent with this Section 7(a) and shall not be liable in any manner whatsoever for any action taken or not taken in reliance upon
the actions taken or not taken or communications or writings given or executed by Buyers representing the Majority of Holders in accordance with this Section 7(a). Subject to the provisions of this Section 7(a), Subscriber hereby agrees
that Buyers representing the Majority of Holders will have full power and authority in Subscriber’s name, place and stead, to execute, certify, acknowledge, deliver, file and record all agreements, certificates, instruments and other documents
and any amendment thereto, and take any other action which Buyers representing the Majority of Holders deem necessary or appropriate in connection with the power and authority granted under this Section 7(a). All actions, decisions and
instructions of Buyers representing the Majority of Holders in accordance with the power and authority granted under the terms of this Section 7(a) shall be conclusive and binding upon all Buyers and shall be deemed authorized, approved,
ratified and confirmed by Subscriber, having the same force and effect as if performed pursuant to the direct authorization of Subscriber. The provisions of this Section 7(a) shall be binding upon the executors, heirs, legal representatives,
personal representatives, successor trustees, and successors of Subscriber, and any references in this Subscription Agreement to Subscriber shall mean and include the successors to Subscriber’s rights hereunder, whether pursuant to testamentary
disposition, the laws of descent and distribution or otherwise. No Buyer shall be liable to any other Buyer by reason of any action taken by, or failure to act of, a Majority of Holders in connection with this Subscription Agreement or any of the
Offered Securities. 

  

	 	b)	Subscriber understands the meaning of the representations and warranties contained herein and understands and acknowledges that the Companies are relying upon the representations
and warranties of Subscriber contained in this Subscription Agreement in determining whether the offering described herein is eligible for exemption from the registration requirements contained in the 1933 Act and in any applicable state securities
law and in determining whether to accept the subscriptions tendered hereby. Subscriber hereby agrees to indemnify and hold harmless each Company and its respective officers, directors, employees, representatives, advisors and agents, from and
against any and all losses, damages or liabilities (including without limitation reasonable attorneys’ fees and costs) due to or arising out of a breach of any representation or warranty of Subscriber set forth in this Subscription Agreement.

  

	 	c)	In the event that this Subscription Agreement is accepted, Subscriber agrees that the representations, warranties, acknowledgments and agreements made by Subscriber herein shall
survive such acceptance. If there is more than one signatory hereto, the representations, warranties, acknowledgments, agreements and indemnities of Subscriber are made jointly and severally. 

  

	 	d)	 The representations, warranties, covenants and agreements of the Companies set forth in this Subscription Agreement, the Notes, the Warrant or any other exhibit,
schedule, certificate or instrument attached or delivered pursuant hereto or thereto (except covenants and agreements which are expressly required to be performed and are 

  

 25 

	 	 
performed in full on or prior to the Closing Date) shall survive the Closing and the consummation of the transactions contemplated by this Subscription
Agreement (i) in the case of representations and warranties other than pursuant to Sections 3(a), (b), (c), (d) and (e) of this Subscription Agreement (which shall survive indefinitely), for a period ending on the last to occur of
(A) the date six months after Stockholder Approval is obtained, (B) June 30, 2009, and (C) the date 60 days after the filing by the Holding Company of its Form 10-K for the year ending December 31, 2008 including audited
financial statements for such fiscal year, and (ii) in the case of covenants and agreements, for a period ending when no Offered Securities are outstanding. Notwithstanding anything to the contrary in the previous sentence, any claim for
indemnification hereunder asserted in writing on or before the applicable deadline described in the preceding sentence shall survive, and the representation, warranty, covenant and/or agreement referenced in such claim shall survive for purposes of
such claim, until finally resolved or judicially determined. Subscriber agrees that any claim by the Buyers with respect to any breach of any such representations, warranties, covenants and/or agreements of either or both of the Companies may only
be made by a Majority of Holders on behalf of all Buyers, and the amount, net of fees and expenses reasonably incurred in connection with the making, pursuing and resolution of such claim, of any recovery pursuant thereto shall be shared ratably
among all of the Buyers. Notwithstanding anything to the contrary contained herein or in the Notes or the Warrant, the rights and benefits provided under this Section 7(d) with respect to any breach of a representation or warranty shall not be
assignable by Subscriber, and no Person other than Subscriber shall have any rights or remedies with respect to a breach of a representation or warranty hereunder. 

  

	 	e)	Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Subscription Agreement must be in writing and will be deemed to have
been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or
(iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be: 

 If to the Holding Company or the Bank: 
  

			
	Taylor Capital Group, Inc.
	9550 West Higgins Road
	Rosemont, Illinois 60018
	Telephone:	  	(847) 653-7978
	Facsimile:	  	(847) 653-7890
	Attention:	  	Mr. Bruce W. Taylor

 With a copy (for informational purposes only) to: 
  

			
	Katten Muchin Rosenman LLP
	525 West Monroe Street
	Chicago, Illinois 60661
	Telephone:	  	(312) 902-5200
	Facsimile:	  	(312) 902-1061
	Attention:	  	Jeffrey R. Patt, Esq.

  

 26 

 If to Subscriber, to its address and facsimile number set forth on the signature page to this
Subscription Agreement, with a copy to Subscriber’s counsel as set forth on the signature page to this Subscription Agreement, or to such other address and/or facsimile number and/or to the attention of such other Person as the recipient party
has specified by written notice given to each other party five (5) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication,
(B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by an overnight courier service
shall be rebuttable evidence of personal service, receipt by facsimile or deposit with an overnight courier service in accordance with clause (A), (B) or (C) above, respectively. 
  

	 	f)	Subscriber agrees to notify the Companies promptly of any changes in the information contained in this Subscription Agreement that occur after the date hereof but prior to
acceptance hereof by the Companies. 

  

	 	g)	Subscriber agrees not to transfer or assign any interest in the Securities to the extent expressly prohibited herein or therein. 

  

	 	h)	This Subscription Agreement and the representations and warranties contained herein shall be binding upon the heirs, executors, administrators and other successors of Subscriber and
shall inure to the benefit of and be enforceable by each Company and its respective successors and assigns. This Subscription Agreement does not create any rights enforceable by any person not a party to this Subscription Agreement.

  

	 	i)	This Subscription Agreement shall be construed in accordance with the laws of the State of Illinois without regard to conflict of laws principles. The parties hereto irrevocably
consent to the jurisdiction of the courts of the State of Illinois located in the City of Chicago and of any federal court located in the City of Chicago, State of Illinois in connection with any action or proceeding arising out of or relating to
this Subscription Agreement, any document or instrument delivered pursuant to, in connection with or simultaneously with this Subscription Agreement, or a breach of this Subscription Agreement or any such document or instrument.

  

	 	j)	This Subscription Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. 

  

	 	k)	This Subscription Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof, may be amended only by a writing executed by all
of the parties hereto, and supersede any and all prior agreements and understandings between the parties hereto with respect to the subject matter hereof. 

  

 27 

 SUBSCRIBER SIGNATURE PAGE AND QUESTIONNAIRE 
  

	1.	NAME OF SUBSCRIBER: 

 (please print) 
  

					
	  
	 		  	 Date:                      ,

	 2008
	 		  	

  

							
	If Joint Ownership, check one:	 	If fiduciary, partnership or corporation, etc., check one:
				
	 	 	Joint Tenants with	 	 	  	Trust
		 	      Right of Survivorship	 	 	  	Estate
	 	 	Tenants in Common	 	 	  	Corporation
	 	 	Community Property	 	 	  	Partnership
		 		 	 	  	Limited Liability Company
		 		 	 	  	Power of Attorney
		 		 	 	  	Uniform Gift to Minors Act Custodian
				
		 		 	 	  	Individual Retirement Account
		 		 		  	Other:                                      
                                    

  

							
	  
	 	  
	 	  

	 Signature of Individual
 Subscriber
	 	 Signature of Joint Investor (if any)
 (All joint owners
must sign)
	 	If Subscriber is an Entity,
 Name of Entity

				
		 		 	By:	  	  

				
		 		 	Title:	  	  

  

	2.	SUBSCRIBER HEREBY SUBSCRIBES TO INVEST $         IN THE NOTES FOR WHICH SUBSCRIBER ALSO WILL RECEIVE WARRANTS TO PURCHASE
                     SHARES OF COMMON STOCK OF THE HOLDING COMPANY 

  

 28 

	3.	ADDRESS: 

                                        
                                         
                                         
                                         
                                         
                                         
     
                                        
                                         
                                         
                                         
                                         
                                         
     
 With copies to: 
                                        
                                         
                                         
                                         
                                         
                                         
     
                                        
                                         
                                         
                                         
                                         
                                         
     
  

	4.	TELEPHONE: 

  

					
	Office:	  	  
	  	
			
	Home:	  	  
	  	

  

					
	 5.      TAXPAYER IDENTIFICATION NUMBER OR SOCIAL SECURITY NUMBER:
	  	  
	  	
		  		  	

  

 29 

 IN WITNESS WHEREOF, the undersigned accepts this subscription and agrees to all of the terms and
conditions set forth above as of the      day of September, 2008. 
  

			
	COLE TAYLOR BANK
		
	By:	 	  

		 	Mark A. Hoppe, Chief Executive Officer
	
	TAYLOR CAPITAL GROUP, INC.
		
	By:	 	  

		 	Bruce W. Taylor, Chief Executive Officer

  

 30 

 EXHIBITS 
  

			
	Exhibit A	  	Defined Terms
		
	Exhibit B	  	Form of Company Counsel Opinion

  

 31 

 EXHIBIT A 
 DEFINED TERMS 
 “1933 Act” has the meaning set forth in Section 2(e).

 “Action or Proceeding” means any suit, action, proceeding (including any compliance, enforcement or disciplinary
proceeding), arbitration, formal or informal inquiry, audit, inspection, investigation or formal order of investigation of complaint. 
 “Affiliate” has the meaning set forth in Rule 12b-2 under the Exchange Act as in effect as on the date hereof. 
 “Available Company SEC Documents” has the meaning set forth in the preamble to Section 4. 
 “Bank” has the meaning set forth in Section 1(a). 
 “Bank Board” means the board of
directors of the Bank. 
 “Bank Bylaws” has the meaning set in Section 3(f)(ii). 
 “Board” means the board of directors of the Holding Company. 
 “Business Day” means any day other than a Saturday or Sunday, a legal holiday or any other day on which the SEC is closed. 

“Business Entity” means any corporation, partnership, limited liability company, joint venture, association, partnership,
business trust or other business entity. 
 “Buyer” means, prior to the Closing, each Person that has subscribed to
purchase any Notes and, on and after the Closing, each Person that owns any Notes. 
 “Bylaws” has the meaning set forth in
Section 3(f)(i). 
 “Closing” has the meaning set forth in Section 1(d). 
 “Closing Date” has the meaning set forth in Section 1(d). 
 “Common Stock” has the meaning set forth in Section 1(a). 
 “Companies” has the meaning set forth in Section 1(a). 
 “Company 2008 SEC Filings” has the meaning set forth in Section 2(b). 
 “Company Permits” means all Regulatory Permits and all Miscellaneous Permits. 
 “Company SEC Reports” has the meaning set forth in Section 3(h). 
 “Contractual Obligation” means, as to any Person, any obligation arising out of any indenture, mortgage, deed of trust, contract,
agreement, insurance policy, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound (including, without limitation, any debt security issued by such Person). 

 “Convertible Securities” means securities or obligations that are convertible into or
exchangeable for shares of Capital Stock. 
 “Designated Preferred” has the meaning set forth in Section 1(b).

 “Evaluation Date” has the meaning set forth in Section 3(k)(iii). 
 “Exchange Act” has the meaning set forth in Section 2(b). 
 “GAAP” has the meaning set forth in Section 3(i). 
 “Governmental Authority” means any government or political subdivision or department thereof, any governmental or regulatory body, commission, board, bureau, agency or instrumentality, or any court or
arbitrator or alternative dispute resolution body, in each case whether federal, state, local, foreign or supranational. 
 “Holding
Company” has the meaning set forth in Section 1(a). 
 “Internal Control Over Financial Reporting” has the
meaning set forth in Section 3(k)(iii). 
 “Knowledge of the Holding Company” means the actual knowledge of any Person
serving on the senior management team of the Holding Company or the Bank (including the Chairman and Chief Executive Officer, President and Chief Financial Officer), after reasonable inquiry. 
 “Liens” means any security interests, liens, claims, pledges, mortgages, options, rights of first refusal, agreements, limitations on
voting rights, charges, easements, servitudes, encumbrances and other restrictions of any nature whatsoever. 
 “Majority of
Holders” means (i) on any date during the period from the date hereof through the Closing, the holders of at least a majority in interest of the Buyers as represented by the principal amount of Notes for which such Buyers have
subscribed, and (ii) on any date after the Closing, the holders of at least a majority of the principal amount of Notes on such date or, to the extent the matter relates solely to the Warrants, the holders of at least a majority in interest of
the Warrants on such date as represented by the number of underlying Warrant Shares. 
 “Material Adverse Change” or
“Material Adverse Effect” means any fact, event, change, effect, condition, factor or circumstance that individually or in the aggregate with all other facts, changes, events, effects, conditions, factors and circumstances
(i) is or is reasonably likely to be materially adverse to the business, financial condition, results of operations, assets, or liabilities of the Holding Company and its Subsidiaries taken as a whole or (ii) prevents in any material
respect the Holding Company’s or the Bank’s ability to perform its obligations under this Subscription Agreement and the Offered Securities; provided that a “Material Adverse Effect” or “Material Adverse Change” shall
not be deemed to include any effects to the extent relating to or resulting from (A) changes in accounting principles generally accepted in the United States or regulatory accounting requirements applicable to banks or their holding companies
generally (except in each such case for any changes which disproportionately affect the business, financial condition, results of operations, assets, or liabilities of the Holding Company and its Subsidiaries, taken as a whole, as compared to other
industry participants); (B) changes in laws, rules or regulations of general applicability or interpretations thereof (except in each such case for any changes which disproportionately affect the business, financial condition, results of
operations, assets, or liabilities of the Holding Company and its Subsidiaries, taken as a whole, as compared to other industry participants), (C) changes in general economic or market 

  

 33 

 
conditions in the United States, including the credit and securities markets, (D) changes in general economic or market conditions in the regions in
which the Holding Company and/or its Subsidiaries operate or conduct business or in the markets in which the Holding Company and/or its Subsidiaries conduct lending operations, including the commercial and residential real estate lending markets in
the Chicago area (except in each such case for any changes which disproportionately affect the business, financial condition, results of operations, assets, or liabilities of the Holding Company and its Subsidiaries, taken as a whole, as compared to
other industry participants), (E) any changes in the market price or trading volume of the Holding Company’s securities (but not any effect, event, development or change underlying such decrease to the extent that such effect, event,
development or change otherwise would constitute a Material Adverse Effect), (F) the announcement or disclosure of the sale of the Offered Securities, (G) any action taken by the Holding Company or the Bank that is expressly required by
the terms of this Subscription Agreement, (H) the failure of the Bank to remain “well capitalized” under applicable capital guidelines for banks as of September 30, 2008 prior to giving effect to the sale of Series A Preferred or
Designated Preferred, as applicable; provided, however that this exception (H) shall not apply in the event that (i) the Bank has publicly disclosed that it is not “well-capitalized” prior to the Closing Date or
(ii) the Bank would not be “well capitalized” after giving effect to this Transaction, the Preferred Stock Transaction and the application of the net proceeds therefrom, or (I) the failure of the Holding Company to remain
“well capitalized” under applicable capital guidelines for bank holding companies as of September 30, 2008 prior to giving effect to the sale of Series A Preferred or Designated Preferred, as applicable. 
 “Miscellaneous Permits” means all licenses, permits, certificates, franchises, ordinances, registrations, qualifications, and other
rights, privileges, applications or authorizations filed with, granted or issued by any Governmental Authority other than Regulatory Permits. 
 “Nasdaq” has the meaning set forth in Section 3(j). 
 “Notes” has the meaning set forth in
Section 1(a). 
 “Offered Securities” has the meaning set forth in Section 1(a). 
 “Organizational Documents” means, as to any Person (other than an individual), the articles or certificate of incorporation, bylaws,
certificate of limited partnership, partnership agreement, certificate of formation, limited liability company operating agreement, and all other organizational documents of such Person, its certificate or articles of incorporation, by-laws and
other organizational documents. 
 “Other Filings” has the meaning set forth in Section 4(h)(iii). 
 “Outside Date” has the meaning set forth in Section 6(b). 
 “Person” means any individual, Business Entity, unincorporated association or Governmental Authority. 
 “Preferred Shares” has the meaning set forth in Section 1(b). 
 “Preferred Stock Transaction” has the meaning set forth in Section 1(b). 
 “Proxy Statement” has the meaning set forth in Section 4(h)(i). 
 “Purchase Price” has the meaning set forth in Section 1(c). 
  

 34 

 “Regulatory Agencies” has the meaning set forth in Section 3(q). 
 “Regulatory Permits” means all licenses, permits, certificates, franchises, ordinances, registrations, qualifications, and other rights,
privileges, applications or authorizations filed with, granted or issued by the SEC, any Bank Regulatory Authority, any state securities or blue sky regulatory authority in which the Holding Company or the Bank maintains offices, or any
self-regulatory organization. 
 “Reports” has the meaning set forth in Section 3(q). 
 “Representatives” has the meaning set forth in Section 4(k). 
 “Requirement of Law” means any judgment, order (whether temporary, preliminary or permanent), writ, injunction, decree, statute, rule,
regulation, notice, law or ordinance and shall also include any rules, regulations and interpretations of any applicable self -regulatory organizations. 
 “Restated Charter” has the meaning set forth in Section 3(c)(ii). 
 “Sarbanes-Oxley Act” has the meaning set forth in Section 3(h). 
 “Securities” has the
meaning set forth in Section 1(a). 
 “Securities Purchase Agreement” has the meaning set forth in Section 1(b).

 “Stock Purchase Rights” has the meaning set forth in Section 3(c)(iii). 
 “Stockholder Approval” has the meaning set forth in the Warrant. 
 “Stockholder Approval Date” has the meaning set forth in Section 4(g). 
 “Stockholder Approval Matters” has the meaning set forth in the Warrant. 
 “Stockholder Meeting” has the meaning set forth in Section 4(g). 
 “Stockholder Vote” has the meaning set forth in the Warrant. 
 “Sub Debt Transaction” has the meaning set forth in Section 1(d). 
 “Subscriber” has the meaning set forth in Section 1(a). 
 “Subscription Agreement” has the meaning set forth in Section 1(a). 
 “Subscription Agreements” means this Subscription Agreement and the other Subscription Agreements entered into by the Holding Company,
the Bank and the Buyers in connection with the Sub Debt Transaction. 
 “Subscription Materials” has the meaning set forth
in Section 2(a). 
  

 35 

 “Subsidiaries” means the subsidiaries of the Holding Company set forth on Schedule
3(a) which includes any Business Entity of which the Holding Company (either alone or through or together with one or more other Subsidiaries) (x) owns, directly or indirectly, more than 20% of the stock or other equity interests the
holders of which are generally entitled to vote for the election of the board of directors or other governing body of such Business Entity, (y) is a general partner, managing member, trustee or other Person performing similar functions or
(z) has control (as defined in Rule 405 under the 1933 Act). 
 “Tax” means any tax, governmental fee or other like
assessment or charge of any kind whatsoever (including, but not limited to, any tax imposed under Subtitle A of the Internal Revenue Code of 1986, as amended, and any net income, alternative or add-on minimum tax, gross income, gross receipts, sale,
bulk sales, use, real property, personal property, ad valorem, value added, transfer, franchise, profits, license, withholding tax on amounts paid, withholding, payroll, employment, excise severance, stamp, capital stock, occupation, property,
environmental or windfall profits tax, premium, custom, duty or other tax or assessment), together with any interest, penalty, addition to tax or additional amount thereto, imposed by any Governmental Authority. 
 “Taxing Authority” means any Governmental Authority (domestic or foreign) responsible for the imposition of any Tax. 
 “Tax Return” means any return, report or similar statement (including the attached schedules) required to be filed with respect to any
Tax, including, without limitation, any information return, claim for refund, amended return or declaration of estimated Tax. 
 “Warrant” has the meaning set forth in Section 1(a). 
 “Warrants” means the Warrant and the
other warrants to purchase shares of Common Stock issued in the Sub Debt Transaction. 
 “Warrant Shares” has the meaning
set forth in Section 1(a). 
  

 36 

 THIS SUBORDINATED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES
ACT OF ANY STATE. EXCEPT AS OTHERWISE PROVIDED IN THE SUBSCRIPTION AGREEMENT REFERENCED IN THIS SUBORDINATED NOTE, THIS SUBORDINATED NOTE MAY NOT BE OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THIS SUBORDINATED NOTE
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND SUCH STATE OR OTHER LAWS AS MAY BE APPLICABLE, OR RECEIPT BY COLE TAYLOR BANK OF AN OPINION OF COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. 
 THIS OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE
CORPORATION. THIS OBLIGATION IS SUBORDINATED TO THE CLAIMS OF THE DEPOSITORS AND THE GENERAL AND SECURED CREDITORS OF COLE TAYLOR BANK AND IS NOT SECURED. 
 10% SUBORDINATED NOTE DUE 2016 
  

			
	$[        ]	  	September [    ], 2008

 FOR VALUE RECEIVED, the undersigned, Cole Taylor Bank (the “Bank”), hereby promises to
pay to the order of [                    ], (“Purchaser”), at its offices at
             (or at such other place as the holder may from time to time designate) the principal sum of [        
($        )] on September     , 2016 (the “Maturity Date”) or any earlier date of acceleration of the Maturity Date, and to pay interest on the outstanding principal
amount of this 10% Subordinated Note Due 2016 (this “Note”) from September     , 2008, quarterly on the fifteenth day of the last month of each calendar quarter, commencing on December 15, 2008 (each, an
“Interest Payment Date”), at a rate per annum of 10% prior to the Maturity Date and, if the outstanding principal amount of this Note is not paid in full on the Maturity Date, at a rate equal to 15% per annum on and after the Maturity
Date until the principal hereof shall have been paid or duly provided for. Unless expressly prohibited by applicable law, any accrued interest that is not paid when due shall bear interest until paid in full at a rate equal to 10% per annum
prior to the Maturity Date and at a rate equal to 15% per annum on and after the Maturity Date. 
 This Note is the Note referred to in
the Subscription Agreement (as may be amended, modified, or restated from time to time), dated                     , by and among the Bank,
Taylor Capital Group, Inc. and Purchaser (the “Subscription Agreement”). All of the other 10% Subordinated Notes due 2016 of the Bank of even date herewith (as may be amended, modified or restated from time to time) are collectively
referred to herein as the “Other Notes,” and this Note and the Other Notes are collectively referred to herein as the “Notes.” This Subscription Agreement and the Subscription Agreements with respect to the Other Notes are
collectively referred to herein as the “Subscription Agreements”. Capitalized terms used in this Note are defined in the Subscription Agreement, unless otherwise expressly stated herein. This Note is entitled to the benefits of the
Subscription Agreement and is subject to all of the agreements, 

 
terms and conditions contained therein, all of which are incorporated herein by this reference. This Note may not be prepaid at any time prior to the third
anniversary of the date of this Note. This Note may be prepaid, in whole or in part, without premium or penalty, at any time from and after the third anniversary of the date of this Note on the following terms and conditions: (a) the Bank shall
give the holder at least three Business Days’ prior written notice of its intent to make each prepayment; and (b) each prepayment shall be made in immediately available funds and shall be made by paying the principal amount to be prepaid,
together with unpaid accrued interest thereon to the date of prepayment. Notwithstanding the foregoing, the Bank may not make any prepayment of this Note unless (i) all accrued interest that is then due and payable under the Notes shall have
been paid in full, (ii) the Bank simultaneously prepays the same percentage of the outstanding principal amount of each Other Note, and (iii) the Bank shall have received the prior written approval of the Board of Governors of the Federal
Reserve System or its designee, or any successor thereto (the “Federal Reserve Board”), if required. 
 Interest on the principal
amount of this Note from time to time outstanding shall be computed on the basis of the actual number of days elapsed over a 360-day year, consisting of twelve (12) 30-day months. In no event, however, shall interest exceed the maximum rate
permitted by law. 
 In the event the Bank can pay some, but not all, of the aggregate interest payable on the outstanding Notes on any
Interest Payment Date, or of the aggregate outstanding principal of the Notes on the Maturity Date, or of any fees or other obligations payable under the Notes on the due date therefor, the Bank shall apportion the aggregate payment made by it on
such Interest Payment Date, Maturity Date or other due date ratably among the Notes in proportion to the respective outstanding principal balances thereof; provided that the foregoing shall not affect any right of the holder of this Note to receive
payment in full of such interest, principal or other amount on such Interest Payment Date, Maturity Date or other due date, as the case may be, or otherwise limit any rights and remedies of the holder of this Note with respect thereto. 

Any of the following events shall represent an event of default under this Note (each, an “Event of Default”): (i) a court or
administrative or governmental agency or body with proper jurisdiction to do so shall enter a decree or order for the appointment of the Federal Deposit Insurance Corporation (the “FDIC”), the Illinois Department of Financial and
Professional Regulation (the “DFPR”), any successor agency to the FDIC or the DFPR, or any other governmental agency or body with proper jurisdiction, as applicable, as receiver of the Bank; (ii) the Bank shall consent to the
appointment of the FDIC, the DFPR, any successor agency to the FDIC or the DFPR, or any other governmental agency or body with proper jurisdiction, as applicable, as receiver for it; (iii) the Bank breaches the Dividend Covenant or the Organic
Change Covenant (each as defined below); (iv) the Bank fails to pay, when due, any principal of this Note or fails to pay any interest due on this Note within five (5) business days of the Interest Payment Date applicable thereto (a
“Payment Default”); or (v) the Bank shall have failed to keep or perform any of its other material agreements, undertakings, obligations or covenants under the Note or the Subscription Agreements in any material respect and such
failure continues for a period of thirty (30) days after notice thereof executed by the holders of Notes representing at least a majority of the principal amount then outstanding under all of the Notes (a “Majority of Holders”).

 Upon the occurrence of an Event of Default described in subsection (i) or (ii) of the
immediately preceding paragraph, the principal of, interest accrued on, and other obligations payable under this Note, will immediately become due and payable, without presentment, demand, protest or notice of any kind. Notwithstanding anything to
the contrary herein, other than the occurrence of an Event of Default described in subsection (i) or (ii) of the immediately preceding paragraph, as long as this Note is deemed to be Tier 2 Capital (or the equivalent) of the Bank under the
applicable rules and regulations promulgated by the Federal Reserve Board (except to the extent not so deemed due to the limitation imposed by the second sentence of 12 C.F.R. §250.166(e)(1), which limits the capital treatment of subordinated
debt during the five years immediately preceding the maturity date of the subordinated debt), there is no right of acceleration for any default or Event of Default, including a default in the payment of principal or interest or the performance of
any other covenant or obligation by the Bank, under this Note or the Subscription Agreement. If the Bank receives a written notification from the Federal Reserve Board that the indebtedness evidenced by the Notes no longer constitutes Tier 2 Capital
of the Bank (the “Federal Reserve Notice”), other than due to the limitation imposed by the second sentence of 12 C.F.R. §250.166(e)(1), which limits the capital treatment of subordinated debt during the five years immediately
preceding the maturity date of the subordinated debt, the Bank shall immediately notify the holder of this Note. At any time after receipt of the Federal Reserve Notice, and so long as the determination set forth in such Federal Reserve Notice
remains in effect, if any Event of Default shall occur hereunder and be continuing, then (x) if such Event Default is a Payment Default, the holder of this Note may declare this Note and any amounts due to the holder of this Note hereunder
immediately due and payable, whereupon this Note and such amounts payable hereunder shall immediately become due and payable, and (y) in the case of any other Event of Default, a Majority of Holders may declare the Notes and any amounts due to
the holders of the Notes hereunder or thereunder immediately due and payable, whereupon the Notes and such amounts payable hereunder or thereunder shall immediately become due and payable, but in each case under clause (x) or (y), without
presentment, demand, protest or notice of any kind. Upon the occurrence of an Event of Default, it is specifically understood and agreed that, notwithstanding the curing of such Event of Default, the Bank shall not be released from any of its
covenants hereunder unless and until this Note is paid in full. Notwithstanding the foregoing, nothing herein shall limit the rights of the holder of this Note to exercise any and all remedies available to such holder under applicable law; provided,
however, that, except in connection with a Payment Default, no action may be initiated to enforce the rights of the holder of this Note pursuant hereto or under the Subscription Agreement without the prior written consent of a Majority of Holders.

 If the Bank fails to make any principal or interest payment when and as required hereby, the Bank shall not, until such principal or
interest payment has been made, (i) declare, set aside or pay any dividends on or make any other distributions (whether in cash, stock, equity securities or property) in respect of any of its equity securities, (ii) make loans or advances
to the Company, (iii) make any payments of interest, principal or premium on, or repay, repurchase or redeem any indebtedness of the Bank payable to the Company or (iv) purchase, redeem or otherwise acquire, directly or indirectly, any of
its equity securities, in each case without the consent of a Majority of Holders (such negative covenant, the “Dividend Covenant”). 
 This Note is a debt of the Bank only and is not an obligation of Taylor Capital Group, Inc. 

 The indebtedness of the Bank evidenced by this Note, including the principal, interest and premium, if
any, is not secured by any assets or commitments of the Bank, and until such time as the Bank receives a Federal Reserve Notice, the indebtedness evidenced by this Note shall be subordinated and junior in right of payment to the Bank’s
obligations to the general creditors and depositors of the Bank, and upon dissolution or liquidation of the Bank, no payment of principal or interest shall be due and payable until all general creditors and depositors of the Bank shall have been
paid in full. Purchaser and each other holder of this Note, by the acceptance hereof, agree to be bound by the foregoing provisions. 
 Any
recapitalization, reorganization, reclassification, consolidation, merger, sale of all or substantially all of the Bank’s assets to another Person or other transaction that is effected in such a way that holders of all of the common equity of
the Bank are entitled to receive (either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for such common equity is referred to herein as an “Organic Change.” Prior to the consummation of
any (i) sale of all or substantially all of the Bank’s assets to an acquiring Person or (ii) other Organic Change following which the Bank is not a surviving entity, the Bank shall secure from the Person purchasing such assets or the
successor resulting from such Organic Change (in each case, the “Acquiring Entity”) a written agreement, in form and substance satisfactory to a Majority of Holders, to deliver to the holder of this Note, in exchange for this Note, a
security of the Acquiring Entity evidenced by a written instrument substantially similar in form and substance to this Note (such covenant, the “Organic Change Covenant”). 
 The written consent of the Bank and a Majority of Holders shall be required for any amendment to the Notes (including this Note), and upon receipt of
such consent, each Note (including this Note) shall be deemed amended thereby. No such amendment shall be effective except to the extent it applies on an equivalent basis to all of the Notes. No consideration shall be offered or paid to any holder
of the Notes to amend or consent to an amendment or other modification of any provision of the Notes unless the same consideration is offered to all of the holders of the Notes. 
 The holder of this Note may assign or transfer some or all of its rights hereunder, subject to compliance with the provisions of Section 2(e)
of the Subscription Agreement, without the consent of the Bank. The holder of this Note shall promptly provide notice to the Bank of the name and address of the assignee or transferee and the principal amount of this Note assigned or
transferred, as applicable. Notwithstanding the foregoing, if this Note has been prepaid in part, the holder of this Note may not transfer this Note unless such holder first physically surrenders this Note to the Bank, whereupon the Bank will
forthwith issue and deliver upon the order of the holder of this Note a new Note of like tenor, registered as such holder may request, representing in the aggregate the remaining principal represented by this Note. The holder of this Note and any
assignee, by acceptance of this Note, acknowledge and agree that following any prepayment of any portion of this Note, the principal of this Note may be less than the principal amount stated on the face hereof. 
 The Bank shall maintain, at one of its offices in the United States, a register for the recordation of the names and addresses of each holder of the
Notes, and the principal amount of the Notes owed to each such holder pursuant to the terms hereof and of the Other Notes from time to time (the “Register”). The entries in the Register shall be conclusive absent manifest 

 
error, and the Bank and the holders of the Notes shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as the holder of
this Note for all purposes, notwithstanding notice to the contrary. The Register shall be available for inspection by any holder of the Notes, at any reasonable time and from time to time upon reasonable prior notice. The Notes are intended to be
obligations in “registered form” for purposes of Sections 871 and 881 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder, and the provision of this Note shall be interpreted consistently
therewith. 
 The Bank shall pay all taxes (other than transfer taxes) and all other expenses and charges payable in connection with the
preparation, execution and delivery of this Note. 
 THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF ILLINOIS, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF ILLINOIS OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF
ILLINOIS. ANY ACTION OR PROCEEDING WITH RESPECT TO THIS NOTE SHALL BE BROUGHT EXCLUSIVELY IN ANY STATE OR FEDERAL COURT IN THE CITY OF CHICAGO, STATE OF ILLINOIS, THE PARTIES WAIVE ANY RIGHT TO A JURY TRIAL. 
 The Bank expressly waives any presentment, demand, protest, notice of default, notice of intention to accelerate, notice of acceleration or notice of any
other kind. 
 [Remainder of Page Intentionally Left Blank; Signature Page Follows] 

 This Note is executed as of the date first written above. 
  

			
	COLE TAYLOR BANK
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES ACT OF ANY
STATE. EXCEPT AS OTHERWISE PROVIDED IN THIS WARRANT AND THE SUBSCRIPTION AGREEMENT REFERENCED IN THIS WARRANT, THIS WARRANT MAY NOT BE OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE WARRANT UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND SUCH STATE OR OTHER LAWS AS MAY BE APPLICABLE, OR RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. THIS WARRANT IS SUBJECT TO OTHER RESTRICTIONS ON
TRANSFER AS SET FORTH IN SECTION 5 HEREOF. 
 TAYLOR CAPITAL GROUP, INC. 
 Incorporated Under the Laws of the State of Delaware 
 STOCK PURCHASE WARRANT

  

			
	 Warrant No. W-_
	  	Original Issue Date:                     ,
2008

 THIS CERTIFIES THAT, for value received,
            , or its assigns (the “Holder”), is entitled to subscribe for and purchase during the period specified in Section 1 hereof
             fully paid and non-assessable shares of Common Stock, $.01 par value (“Common Stock”), of TAYLOR CAPITAL GROUP, INC., a Delaware corporation (the
“Company”), at a per share price equal to the Warrant Price, subject to the provisions and upon the terms and conditions hereinafter set forth. Capitalized terms used herein, but not otherwise defined, shall have meanings provided
in Section 10 of this Warrant. 
 This Warrant was originally issued pursuant to the Subscription Agreement (as may be amended, modified or restated
from time to time), dated             , by and among the Company, Cole Taylor Bank, a wholly-owned subsidiary of the Company (the “Bank”), and the initial Holder (the
“Subscription Agreement”). The Holder acknowledges that this Warrant was issued in connection with a private placement (the “Debt Placement”) of up to $60 million in subordinated notes (the “Notes”) by the Bank,
in which each investor in the Debt Placement is receiving a warrant on the same terms as this Warrant to purchase fifteen (15) shares (subject to adjustment as provided herein) of Common Stock for every $1,000 in face amount of subordinated
notes purchased in the Debt Placement. Accordingly, the Company is issuing, in the aggregate, warrants to purchase an aggregate of up to 900,000 shares (subject to adjustment as provided herein) of Common Stock on the terms set forth below
(collectively, including this Warrant, the “Aggregate Warrants”) in connection with the Debt Placement. Notwithstanding that this Warrant was issued in connection with, and as part of, the Debt Placement, this Warrant is detachable
from the Notes purchased in the Debt Placement and transferable separate from such Notes, but subject to the terms, conditions, limitations and restrictions set forth in Section 5 of this Warrant and Section 2(e) of the Subscription
Agreement. 

	 1.
	 Duration. The right to subscribe for and purchase shares of Common Stock represented hereby shall commence on the
later of (a) the date of the Stockholder Vote and (b) the one hundred eightieth (180th) day after the Original Issue Date, and shall
expire at 5:00 p.m., Chicago time, on the fifth anniversary of the Original Issue Date specified above (the “Expiration Date”); provided, that if the Stockholder Vote is not held on or prior to December 31, 2008, the Expiration
Date shall be extended by the number of days after December 31, 2008 and prior to the date the Stockholder Vote is held; and provided further, that if the Expiration Date would otherwise occur on a day on which banking institutions are required
or authorized by law to close in Chicago, Illinois (a “Bank Holiday”), then the Expiration Date shall be the next succeeding day which shall not be a Bank Holiday. From and after the Expiration Date, this Warrant shall be null, void
and of no further force or effect. 

  

	2.	Method of Exercise; Payment; Issuance of New Warrant. 

  

	 	a)	The holder hereof may exercise this Warrant, in whole or in part, at the times and subject to the conditions set forth in Section 1 hereof, by the surrender of this Warrant
(with the subscription form attached hereto duly executed) at the principal office of the Company, together with payment in the aggregate amount equal to the Warrant Price multiplied by the number of shares of Common Stock being purchased. At the
option of Holder, payment of the Warrant Price may be made either (i) in cash, by wire transfer of immediately available United States federal funds or by bank certified, treasurer’s or cashier’s check payable to the order of the
Company, (ii) by cashless exercise in accordance with Section 2(b), or (iii) by any combination of the foregoing methods. 

  

	 	b)	In lieu of exercising this Warrant in cash, the Holder may elect to receive shares equal to the value of this Warrant (or the portion thereof being canceled) by surrender of this
Warrant at the principal office of the Company together with notice of such election, in which event the Company shall issue to the holder hereof a number of shares of Common Stock computed using the following formula: 

  

									
		 	X =    	  	Y (A - B)	  		  	
	 	  	        A	  		  	

 Where 
  

			
	X —  	  	The number of shares of Common Stock to be received upon such cashless exercise of this Warrant pursuant to this Section 2(b) (the “Net Number”).
		
	Y —  	  	The total number of shares for which this Warrant is exercised pursuant to such cashless exercise.
		
	A —  	  	The Market Value (as defined below) of one share of Common Stock.
		
	B —  	  	The Exercise Price (as adjusted to the date of such calculations).

 Any reference in this Warrant to “exercise” of this Warrant, and the use of the term
“exercise” herein, shall be deemed to include, without limitation, any cashless exercise pursuant to this Section 2(b). 

	 	c)	Notwithstanding anything contained herein to the contrary, in the event that a Conversion Date occurs, the Company at any time within ninety (90) days after any such Conversion
Date, may, at the Company’s sole election, effective immediately upon notice delivered to the Holder, convert this Warrant, and thereby extinguish all exercise rights of the Holder hereunder, by issuance to the Holder of the Net Number of
shares of Common Stock, determined according to Section 2(b) above, then issuable upon exercise of this Warrant in full in a “cashless exercise,” provided that the Company exercises such election with respect to all of the Aggregate
Warrants then outstanding. 

  

	 	d)	In the event of any exercise of the rights represented by this Warrant in accordance with Section 2(a), (i) stock certificates for the shares of Common Stock so purchased
shall be delivered to the Holder, and, in the event the Warrant has not been exercised in full, a new Warrant representing the number of shares with respect to which this Warrant shall not then have been exercised shall also be delivered to the
Holder, and (ii) stock certificates for the shares of Common Stock so purchased shall be dated the date of exercise of this Warrant (with the required payment of the aggregate Warrant Price unless payable by cashless exercise pursuant to
Section 2(b) or (c)), and the Holder exercising this Warrant shall be deemed for all purposes to be the holder of the shares of Common Stock so purchased as of the date of such exercise (with the required payment of the aggregate Warrant Price
unless payable by cashless exercise in accordance with Section 2(b) or (c)). Such stock certificates (and new Warrant, if applicable) shall be delivered to the holder hereof within a reasonable time, not exceeding five Business Days, after
this Warrant shall have been so exercised. Each stock certificate so delivered shall be in such denominations as may be requested by the Holder and shall be registered in the name of the Holder or such other name (upon compliance with the transfer
requirements hereinafter set forth) as shall be designated by said Holder. The Company shall pay all taxes (other than income taxes, franchise taxes or other taxes levied on gross earnings, profits or the like of the Holder) and other expenses
and charges payable in connection with the issuance and delivery of shares of Common Stock (and new Warrants, if applicable) upon any exercise of this Warrant, except that, in case such shares of Common Stock shall be registered in a name or names
other than the Holder or its nominee, funds sufficient to pay all stock transfer taxes which shall be payable in connection with the execution and delivery of such stock certificates shall be paid by the Holder to the Company at the time of the
exercise of this Warrant. 

  

	 	e)	Notwithstanding any other provision hereof, if any exercise of any portion of a Warrant is made in connection with a registered public offering or the sale of the Company
(regardless of how structured), such exercise may be conditioned, at the election of the Holder, upon the consummation of such public offering or sale of the Company, in which case such exercise shall not be deemed to be effective until immediately
prior to the consummation of such transaction. 

  

	 	f)	If a fractional share of Common Stock would be issuable upon exercise of this Warrant, the Company shall, as soon as reasonably practicable after the date of exercise, deliver to
the Holder a check payable to the Holder, in lieu of such fractional share, in an amount equal to the Market Value of such fractional share of Common Stock. 

	3.	Adjustment of Warrant Price and Number of Shares. 

  

	 	a)	The Warrant Price and the number of shares of Common Stock purchasable upon the exercise of this Warrant shall be subject to adjustment from time to time upon the happening of
certain events occurring after the original issuance date, as follows: 

  

	 	i)	Reclassification, Consolidation or Merger. In case of any reclassification or change of outstanding Common Stock issuable upon exercise of this Warrant (other than a change
in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination), or in case of any consolidation or merger of the Company with or into another Company (other than a merger with
another corporation in which the Company is the surviving corporation and which does not result in any reclassification or change other than a change in par value, or from par value to no par value, or from no par value to par value, or as a
result of a subdivision or combination of outstanding Common Stock issuable upon such conversion) the rights of the holders of this Warrant shall be adjusted in the manner described below: 

  

	 	(1)	In the event that the Company is the surviving corporation, the Warrant shall, without payment of additional consideration therefor, be deemed modified so as to provide that upon
exercise thereof the holder of this Warrant shall procure, in lieu of each share of Common Stock theretofore issuable upon such exercise, the kind and amount of shares of stock, other securities, money and property receivable upon such
reclassification, change, consolidation or merger by the holder of each share of Common Stock issuable upon such exercise had exercise occurred immediately prior to such reclassification, change, consolidation or merger. This Warrant (as adjusted)
shall be deemed to provide for further adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 3. The provisions of this clause (1) shall similarly apply to successive
reclassifications, changes, consolidations and mergers. 

  

	 	(2)	In the event that the Company is not the surviving entity, the surviving entity shall, without payment of any additional consideration therefor, issue new Warrants, providing that
upon exercise thereof the holder thereof shall procure in lieu of each share of Common Stock theretofore issuable upon exercise of this Warrant the kind and amount of shares of stock, other securities, money and property receivable upon such
reclassification, change, consolidation or merger by the holder of each share of Common Stock issuable upon exercise of this Warrant had such exercise occurred immediately prior to such reclassification, change, consolidation or merger. Such new
Warrants shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 3. The provisions of this clause (2) shall similarly apply to successive reclassifications,
changes, consolidations and mergers. The Company shall not enter into any transaction subject to the provisions of this Section 3(a)(i)(2) unless the surviving entity in such transaction agrees in writing to issue new Warrants in accordance
with the terms and conditions of this Section 3(a)(i)(2) and comply with the terms and conditions of such new Warrants. 

	 	ii)	Subdivision or Combination of Shares. If the Company, at any time while any of this Warrant is outstanding, shall subdivide or combine its Common Stock, the Warrant Price
shall be proportionately reduced, in case of subdivision of shares, as of the effective date of such subdivision, or shall be proportionately increased, in the case of combination of shares, as of the effective date of such combination. In the event
that a record date is set with respect to any such subdivision, and this Warrant is exercised after such record date but prior to the effective date of such subdivision, upon the effectiveness of such subdivision, the Company shall issue the Holder
additional shares of Common Stock as if the Common Stock issued upon such exercise of the Warrant were outstanding on the record date with respect to such subdivision, without the payment of any additional consideration. 

  

	 	iii)	Certain Dividends and Distributions. If the Company, at any time while any of this Warrant is outstanding, shall: 

  

	 	(1)	Stock Dividends. Pay a dividend payable in, or make any other distribution of Common Stock, the Warrant Price shall be adjusted, as of the date such payment or dividend or
other distribution, to that price determined by multiplying the Warrant Price by a fraction (1) the numerator of which shall be the total number of shares of Common Stock outstanding immediately prior to such dividend or distribution and
(2) the denominator of which shall be the total number of shares of Common Stock outstanding immediately after such dividend or distribution (plus in the event that the Company paid cash for fractional shares, the number of additional shares
which would have been outstanding had the Company issued such fractional shares in connection with such dividend or distribution); provided that in the event that a record date is set with respect to any such dividend and distribution, and this
Warrant is exercised after such record date but prior to the payment or other distribution of such dividend or other distribution, upon such payment or other distribution, the Company shall issue the Holder additional shares of Common Stock as if
the Common Stock issued upon such exercise of the Warrant were outstanding on the record date with respect to such dividend or other distribution, without the payment of any additional consideration. 

  

	 	(2)	Liquidating Dividends, etc. Make a distribution of its property to the holders of its Common Stock as a dividend in liquidation or partial liquidation or by way of return of
capital or other than as a dividend payable out of funds legally available for dividends under the laws of the State of Delaware, the holders of this Warrant shall, upon exercise hereof, be entitled to receive, in addition to the number of shares of
Common Stock receivable hereupon, and without payment of any consideration therefor, a sum equal to the amount of such property as would have been payable to them as owners of that number of shares of Common Stock of the Company receivable upon such
exercise, had they been the holders of record of such Common Stock on the record date for such distribution; and an appropriate provision therefor shall be made a part of any such distribution. 

	 	(3)	Purchase Rights. If at any time the Company grants, issues or sells any options, warrants, convertible securities or other rights to purchase stock, warrants, options,
securities or other property pro rata to the record holders of Common Stock (the “Purchase Rights”), then the Holder of this Warrant shall be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate
Purchase Rights which such Holder could have acquired if such Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant immediately before the date on which a record is taken for the grant, issuance or
sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights. 

  

	 	iv)	Adjustment of Number of Shares. Upon each adjustment in the Warrant Price pursuant to any provision of this Section 3(a), the number of shares of Common Stock issuable
upon exercise hereof shall be adjusted, to the nearest one hundredth of a whole share, to the product obtained by multiplying the number of shares issuable upon exercise hereof immediately prior to such adjustment in the Warrant Price by a fraction,
the numerator of which shall be the Warrant Price immediately prior to such adjustment and the denominator of which shall be the Warrant Price immediately thereafter. 

  

	 	b)	Notice of Adjustments. Whenever any Warrant Price shall be adjusted pursuant to Section 3 hereof, the Company shall make a certificate signed by its President or a Vice
President and by its Treasurer, Assistant Treasurer, Secretary or Assistant Secretary, setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated
(including a description of the basis on which the Board made any determination hereunder), and the Warrant Price after giving effect to such adjustment, and shall cause copies of such certificate to be delivered (by first-class mail, postage
prepaid) or facsimile to the holder of this Warrant at its address or facsimile number shown on the books of the Company. The Company shall make such certificate and deliver it to each Holder promptly after each adjustment. 

 

	 	c)	Default in Obligations Regarding Par Value. If the Company shall default in its obligation pursuant to the last sentence of Section 4(a) hereof such that the par value
per share of Common Stock would be greater than the Warrant Price that, absent the limitation contained in the last sentence of Section 4(a), would have been in effect pursuant to this Section 3, then the Warrant Price shall be an amount
equal to the par value per share of Common Stock but the number of shares the holder of this Warrant shall be entitled to purchase shall be such greater number of shares of Common Stock as would have resulted from the Warrant Price that, absent the
limitation contained in the last sentence of Section 4(a), would have been in effect pursuant to this Section 3. The foregoing adjustment shall not constitute a waiver of any claim arising against the Company by reason of its default under
the agreement contained in the last sentence of Section 4(a) of this Warrant. 

	4.	Covenants. 

  

	 	a)	The Company covenants and agrees that all shares of Common Stock issued upon exercise of this Warrant will, upon issuance, be fully paid and nonassessable and free from preemptive
rights and any liens and charges with respect to the issuance thereof. The Company further covenants and agrees that during the period within which the rights represented by this Warrant may be exercised, the Company will at all times have
authorized, and reserved for the purpose of issue upon exercise of the purchase rights evidenced by this Warrant, a sufficient number of shares of Common to provide for the exercise in full of such purchase rights (including any and all shares as to
which the right to acquire such shares has not been forfeited pursuant to Section 1 hereof). Furthermore, and without limiting the generality of the foregoing, the Company covenants and agrees that it will from time to time take all such action
as may be required to assure that the par value per share of Common Stock is at all times equal to or less than the effective Warrant Price. 

  

	 	b)	The Company agrees that it shall not close its books against the transfer of this Warrant or of any shares of Common Stock issued or issuable upon the exercise of this Warrant in
any manner which interferes with the timely exercise of this Warrant. 

  

	 	c)	The Company shall cooperate with the Holder if the Holder is required to make any governmental filings or obtain any governmental approvals prior to, or in connection with, the
exercise of Warrants (including making any filings required to be made by the Company). The Company shall take all such actions as may be reasonably necessary to ensure that all shares of Common Stock issuable upon exercise of the Warrants may be
issued in accordance with the terms and conditions of the Warrants without violation of any applicable law or regulation of any governmental entity or self regulatory organization or any requirement of any securities exchange or trading system on
which the shares of Common Stock are listed or eligible for trading (except for official notice of issuance, which (to the extent required) shall be delivered immediately by the Company upon each such issuance). 

  

	 	d)	If any securities issuable upon exercise of this Warrant are then convertible into or exchangeable for any other stock or securities of the Company (“Other
Securities”), the Company shall, at the Holder’s option and upon exercise of this Warrant by the Holder as provided herein, together with any notice, statement or payment required to effect such conversion or exchange, deliver to the
Holder (or such other Person specified by such Holder) a certificate or certificates representing the Other Securities into which the securities issuable upon such exercise of this Warrant are convertible or exchangeable, registered in such name or
names and in such denomination or denominations as the Holder has specified. 

  

	 	e)	 The Company shall not by any action, including, without limitation, amending its charter documents or through any reorganization, reclassification, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or other similar voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and 

	 	 
in the taking of all such actions as may be necessary or appropriate to protect the rights of the Holder against impairment. Without limiting the foregoing,
the Company shall take all action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon the exercise of this Warrant, free and clear of all mortgages,
pledges, hypothecations, claims, charges, security interests, encumbrances, adverse claims, options, liens, put or call rights, rights of first offer or refusal, proxies, voting rights or other restrictions or limitations of any nature whatsoever
(collectively, “Liens”), other than Liens created by the actions of the Holder. 

  

	 	f)	The Company shall provide each Holder with not less than 10 days prior written notice in the event that the Company closes its books or sets a record date (i) with respect to
either a dividend or distribution upon the Common Stock or a subscription offer to the holders of Common Stock or (ii) for determining rights to vote with respect to any merger, consolidation, reorganization, restructuring or similar
transaction (including, without limitation, the dissolution or liquidation of the Company). The Company shall also provide the Holder not less than 20 days prior written notice of the consummation of any such transaction. 

 

	5.	Transfer and Exchange. 

  

	 	a)	This Warrant shall not be transferable without the prior written consent of the Company at any time prior to the first anniversary of the Original Issue Date. On and after the first
anniversary of the Original Issue Date, but prior to the second anniversary of the Original Issue Date, this Warrant shall be transferable in part with respect to up to 50% of the shares of Common Stock issuable upon exercise of this Warrant as of
the Original Issue Date. On and after the second anniversary of the Original Issue Date, this Warrant shall be transferable with respect to all of the shares of Common Stock issuable upon exercise of this Warrant. Notwithstanding the foregoing, the
Holder may transfer this Warrant to an Affiliate at any time without the prior written consent of the Company, provided that any such transfer shall remain subject to the further terms, conditions, limitations and restrictions set forth in clauses
(b) through (g) of this Section 5 and Section 2(e) of the Subscription Agreement. In addition to the restrictions and limitations set forth in this Section 5(a), any transfer of this Warrant shall be subject to the further
terms, conditions, limitations and restrictions set forth in clauses (b) through (g) of this Section 5 and Section 2(e) of the Subscription Agreement. For the avoidance of doubt, nothing in this Section 5(a) shall prohibit
or otherwise affect the right to transfer any shares of Common Stock received upon the exercise of this Warrant (it being understood that the restrictions set forth in this Section 5(a) shall apply only to the Warrant itself, and not any shares
issuable upon the exercise thereof). 

  

	 	b)	 The transfer of this Warrant and all rights hereunder, in whole or in part, is registrable at the office or agency of the Company referred to below by the Holder,
in person or by his duly authorized attorney, upon surrender of this Warrant properly endorsed. Each taker and holder of this Warrant, by taking or holding the same, consents and agrees that this Warrant, when endorsed in blank, shall be deemed
negotiable, and that the Holder, when this Warrant shall have been so endorsed, may be treated by the Company and all other 

	 	 
Persons dealing with this Warrant as the absolute owner and holder hereof for any purpose and as the Person entitled to exercise the rights represented by
this Warrant, or to the registration of transfer hereof on the books of the Company; and until due presentment for registration of transfer on such books the Company may treat the Holder as the owner and holder for all purposes, and the Company
shall not be affected by notice to the contrary. 

  

	 	c)	The Holder of this Warrant, by the acceptance hereof, represents that it is acquiring this Warrant, and upon exercise hereof will acquire the Warrant and the shares of Common Stock
issuable upon exercise hereof (collectively, including this Warrant, the “Warrant Securities”), for its own account and not with a view towards, or for resale in connection with, the public sale or distribution of the Warrant
Securities, except pursuant to sales registered or exempted under the Securities Act. The Holder further represents, by acceptance hereof, that, as of this date, such Holder is an “accredited investor” as such term is defined in Rule
501(a)(3) of Regulation D promulgated by the Securities and Exchange Commission under the Securities Act (an “Accredited Investor”). The delivery of this Warrant for exercise shall constitute confirmation at such time by the Holder
of the representations concerning the Warrant Securities set forth in the first two sentences of this Section 5(c), unless contemporaneous with the delivery of this Warrant for exercise, the Holder notifies the Company in writing that it is not
making such representations (a “Representation Notice”). If the Holder delivers a Representation Notice in connection with an exercise, it shall be a condition to such Holder’s exercise of this Warrant and the Company’s
obligations set forth in Section 2 in connection with such exercise, that the Company receive such other representations as the Company considers reasonably necessary to assure the Company that the issuance of its securities upon exercise of
this Warrant shall not violate any United States or state securities laws, and the time periods for the Company’s compliance with its obligations set forth in Section 2 shall be tolled until such Holder provides the Company with such other
representations. 

  

	 	d)	 The Holder, by acceptance of this Warrant, understands that the Warrant Securities are characterized as “restricted securities” under the federal
securities laws inasmuch as they are being or will be acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations neither this Warrant nor the shares of Common Stock issuable upon
its exercise may be resold without registration under the Securities Act or under certain other limited circumstances. The Holder further agrees, by acceptance of this Warrant that it will not offer or sell this Warrant or any shares of Common Stock
issued upon exercise hereof in the absence of an effective registration statement for the Warrant or such shares of Common Stock, as applicable, under the Securities Act and such state or other laws as may be applicable, or receipt by the Company of
a written opinion of counsel (provided that such counsel, and the form and substance of such opinion are reasonably acceptable to the Company) that such registration is not required; provided, however that no such opinion shall be required in
connection with (i) a transaction pursuant to Rule 144 in which the Holder provides the Company with certifications reasonably requested by the Company regarding compliance with the terms and provisions of Rule 144 or (ii) a distribution
of any Warrant Securities to an Affiliate of the Holder, so long as such Affiliate does not pay any consideration in 

	 	 
connection with such distribution (other than issuance of equity interests in such Affiliate) and the Holder provides the Company with certifications
reasonably requested by the Company in connection therewith. Furthermore, it is agreed that each Warrant and any shares of Common Stock will include the appropriate variant of the following legend: 

 [THE SHARES OF STOCK EVIDENCED BY THIS CERTIFICATE HAVE] [THIS WARRANT HAS] NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE
SECURITIES ACT OF ANY STATE. [EXCEPT AS OTHERWISE PROVIDED IN THE WARRANT UPON EXERCISE OF WHICH THE SHARES WERE ORIGINALLY ISSUED AND THE SUBSCRIPTION AGREEMENT REFERENCED IN SUCH WARRANT, THE SHARES][EXCEPT AS OTHERWISE PROVIDED IN THIS WARRANT
AND THE SUBSCRIPTION AGREEMENT REFERENCED IN THIS WARRANT, THIS WARRANT] MAY NOT BE OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR [THE SHARES][THIS WARRANT] UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND SUCH STATE OR
OTHER LAWS AS MAY BE APPLICABLE, OR RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. THIS WARRANT IS SUBJECT TO OTHER RESTRICTIONS ON TRANSFER AS SET FORTH IN SECTION 5
HEREOF. 
 The Holder of this Warrant and/or any Common Stock issued upon exercise hereof shall be entitled to receive, without expense to
such Holder, a new certificate or Warrant, as the case may be, not bearing the above restrictive legend if (1) the Warrant Securities represented thereby shall have been effectively registered under the Securities Act and sold by the Holder
thereof in accordance with such registration, (2) such Warrant Securities shall have been sold without registration under the Securities Act in compliance with Rule 144, as certified in writing by the Holder to the Company, or (3) the
Company is reasonably satisfied that the Holder of such Warrant Securities shall, in accordance with the terms of Rule 144, be entitled to sell such Warrant Securities pursuant thereto without any restriction or limitation and without satisfaction
of any current public information requirement thereunder. 
  

	 	e)	Register. The Company shall maintain, at the principal office of the Company, a register for the Warrants, in which the Company shall record the name and address of the
Person in whose name a Warrant has been issued, as well as the name and address of each transferee and each prior owner of such Warrant. Within 10 days after the Holder shall by written notice request the same, the Company will deliver to such
Holder a certificate, signed by one of its officers, listing the name and address of every other Holder of this Warrant, as such information appears in said register at the close of business on the day before such certificate is signed.

  

	 	f)	 Warrants Exchangeable for Different Denominations. This Warrant is exchangeable, upon the surrender hereof by the Holder at the office or agency of the
Company referred to in paragraph 5(e), for new Warrants of like tenor representing in the aggregate the right 

	 	 
to subscribe for and purchase the number of shares which may be subscribed for and purchased hereunder, each of such new Warrants to represent the right
to subscribe for and purchase such number of shares as shall be designated by the Holder at the time of such surrender. 

  

	 	g)	Cancellation; Payment of Expenses. Upon the surrender of this Warrant in connection with any exchange, transfer or replacement, this Warrant shall be promptly cancelled by
the Company. The Company shall pay all taxes (other than transfer taxes and income taxes, franchise taxes or other taxes levied on gross earnings, profits or the like of the Holder) and all other expenses and charges payable in connection with the
preparation, execution and delivery of this Warrant. 

  

	6.	Notices. All notices, requests and other communications required or permitted to be given or delivered to the Company or the holders of Warrants shall be in writing, and
shall be deemed properly given if hand delivered or sent by overnight courier with adequate evidence of delivery or sent by registered or certified mail, return receipt requested and, if to a Warrant Holder, at such Warrant holder’s address as
shown on the books of the Company or its transfer agent, and if to the Company at: 

 Taylor Capital Group, Inc. 
 9550 West Higgins Road 
 Rosemont, IL 60018

 Attention: Chief Financial Officer 
 or such other addresses or Persons as the recipient shall have designated to the sender by written notice given in accordance with this Section. Any notice, request or other communication hereunder shall be deemed given when delivered in
person, on the next business day after being sent by overnight courier, or on the second business day after being sent by registered or certified mail. 
  

	7.	Governing Law. This Warrant shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to its principles of conflicts of laws.

  

	8.	Remedies and Limitation of Liability. 

  

	 	a)	The Company stipulates that the remedies at law of the Holder in the event of any default or threatened default by the Company in the performance of or compliance with any of the
terms of this Warrant are not and will not be adequate, and that such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or
otherwise. 

  

	 	b)	No provision hereof, in the absence of affirmative action by the Holder to purchase Common Stock upon the exercise of this Warrant, and no enumeration of the rights or privileges of
the Holder, shall give rise to any liability of a Holder for the Warrant Price or any other amounts. 

	9.	Miscellaneous. 

  

	 	a)	Amendments. This Warrant and any provision hereof may be amended or waived only by an instrument in writing signed by either (i) the Holder of this Warrant, or
(ii) the holders of a majority of the Aggregate Warrants then outstanding as measured by the number of shares of Common Stock issuable upon full exercise of all such Aggregate Warrants then outstanding (the “Majority Holders”),
and in each case, signed by the Company if it is to be bound thereby; and each Holder acknowledges and agrees that it shall be bound by any such amendment or waiver so approved by the Majority Holders, provided that no such amendment or waiver shall
be effective except to the extent it applies on an equivalent basis to all of the outstanding Aggregate Warrants. No consideration shall be offered or paid to any Holder to amend or consent to a waiver, amendment or other modification of any
provision of the Agreement unless the same consideration is offered to all of the holders of the outstanding Aggregate Warrants. 

  

	 	b)	Descriptive Headings. The descriptive headings of the several paragraphs of this Warrant are inserted for purposes of reference only, and shall not affect the meaning or
construction of any of the provisions hereof. 

  

	10.	Definitions. For the purposes of this Warrant the following terms have the following meanings: 

 “Closing Price” shall mean, with respect to a share of Common Stock, the closing sale price (or if no closing sale price is reported, the last reported sale price) for such security on the Nasdaq
Global Select Market (or any successor thereto) as reported by Bloomberg Financial Markets (“Bloomberg”), or if the Nasdaq Global Select Market is not the principal trading market for such security, the closing sale price (or if no
closing sale price is reported, the last reported sale price) of such security on the principal securities exchange or trading market where such security is listed or traded, as reported by Bloomberg, or if the Common Stock is not listed or traded
on any national securities exchange or trading market, then the last reported sale price of the Common Stock at 4:00 p.m., New York City time, in the over-the-counter market on the electronic bulletin board as reported by Bloomberg, or, if no such
sale price is reported for such security by Bloomberg, the average of the bid prices at 4:00 p.m., New York City time, of any market makers for the Common Stock as reported on the domestic over the counter market by the National Quotation Bureau,
Inc. or any similar successor organization. If the Closing Price cannot be calculated for such security on any day (either because the Common Stock is listed on any domestic securities exchange or quoted on the domestic over the counter market, or
otherwise), the Closing Price of such security on such date shall be the fair market value as mutually determined by the Company and the Majority Holders. If the Company and such Majority Holders are unable to agree, then the Closing Price for such
day shall be determined by a nationally recognized investment banking firm or other nationally recognized financial advisor, unaffiliated with the Company, selected by the Company and the Majority Holders for such purpose, taking into consideration,
among other factors, the earnings history, book value and prospects of the Company, with the determination of such investment banking firm or financial advisor to be final and binding, and the cost and expenses thereof to be paid by the Company.

 “Conversion Date” means the earliest to occur of the following: 
 1. the first date on which the average of VWAP of the Common Stock has exceeded 200% of the Warrant Price for at least 20 Trading Days
within any period of 30 consecutive Trading Days occurring after the second anniversary of the Original Issue Date; or 

 2. the first date on which the average of the VWAP of the Common Stock has exceeded 130%
of the Warrant Price for at least 20 Trading Days within any period of 30 consecutive Trading Days occurring after the third anniversary of the Original Issue Date. 
 “Market Value” shall mean, in respect of a share of Common Stock on any date herein specified, the arithmetic average of the Closing Price on ten (10) consecutive Trading Days
immediately preceding such date; provided, however, that in the event that any of the actions specified in Sections 3(a)(ii) or 3(a)(iii)(1) become effective on or after the first day of such fifteen day period the Company, then in
calculating the Market Value, the Closing Prices for all Trading Days occurring on or after the effectiveness of such action shall be adjusted in the same manner as the Warrant Price is adjusted pursuant to such Sections hereof. 
 “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization or a
government or any department or agency thereof or any other legal entity. 
 “Securities Act” shall mean the Securities Act of
1933, as amended prior to or after the date hereof, or any federal statute or statutes which shall be enacted to take the place of such Act, together with all rules and regulations promulgated thereunder. 
 “Stockholder Approval” shall mean the date on which, in accordance with applicable law, the rules of the NASDAQ Stock Market and the Company’s
certificate of incorporation and by-laws, the Company’s stockholders approve the Company’s issuance of the Aggregate Warrants and the shares of Common Stock issuable upon exercise thereof, including the issuance thereof to officers,
directors and employees of, and consultants to, the Company (the “Stockholder Approval Matters”). 
 “Stockholder Vote”
means the first vote of the Company’s stockholders, at a meeting at which a quorum is present, with respect to approval of the Stockholder Approval Matters (regardless of whether the Stockholder Approval is obtained at such meeting).

 “Trading Day” means any day on which the Common Stock is traded on its principal market; provided that “Trading Day” shall not
include any day on which the Common Stock is scheduled to trade, or actually trades, on such exchange or market for less than 4.5 hours. 
 “VWAP” per share of the Common Stock on any Trading Day means the per share volume-weighted average price as displayed under the heading Bloomberg VWAP on Bloomberg page C UN <equity> AQR (or its equivalent successor
if such page is not available) in respect of the period from the official open of trading on the relevant Trading Day until the official close of trading on the relevant Trading Day (or if such volume-weighted average price is unavailable, the
market price of one share of Common Stock on such Trading Days determined, using a volume-weighted average method, by a nationally recognized investment banking firm (unaffiliated with the Company) retained for this purpose by the Company).

 “Warrants” shall mean this Warrant, and any Warrants issued in substitution or replacement thereof, including without
limitation, upon a permitted transfer hereof. 

 “Warrant Price” shall mean $10.00 [Insert in any warrant issued to any officer, director or employee
of, or consultant to, the Company (excluding any Person that becomes a director of the Company at the Closing of the Preferred Stock Transaction) or any of its subsidiaries (or any affiliate of any such person or trust for the benefit of any such
person): (or, at any time prior to Stockholder Approval, $            ) [the closing bid price of the Common Stock on the Trading Day immediately prior to the date of
execution and delivery of the Subscription Agreement by the Holder and the Company (or the closing bid price on the Trading Day on which the Subscription Agreement is executed and delivered by the Holder and the Company, if it occurs after 4:00
p.m., New York City time] per share, subject to adjustment pursuant to the provisions of Section 3 hereof. 
 IN WITNESS WHEREOF, the Company
has caused this Warrant to be signed and issued on the date set forth below. 
  

					
	Dated:                     , 2008	 	TAYLOR CAPITAL GROUP, INC.
			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	

 EXHIBIT A 
 SUBSCRIPTION FORM 
 [To be executed only upon exercise of Warrant] 
 The undersigned registered owner of the attached Warrant irrevocably exercises such Warrant for the purchase of      shares of
Common Stock of                      and herewith makes payment therefor, all at the price and on the terms and conditions specified in such
Warrant, and requests that certificates for the shares of Common Stock hereby purchased (and any securities or other property issuable upon such exercise) be issued in the name of and delivered to
                     whose address is
                             and, if such shares of Common Stock shall not include all of the shares
of Common Stock issuable as provided in such Warrant, that a new Warrant of like tenor and date for the balance of the shares of Common Stock issuable hereunder be delivered to the undersigned. 
 The Warrant Price with respect to the shares of Common Stock is being paid by: 
              Wire Transfer in the amount of $             
              Bank certified, treasurer’s or cashier’s check in the amount of
$             
              Cashless exercise 
  

			
	  

	(Name of Registered Owner)
	
	  

	(Signature of Registered Owner)
	
	  

	(Street Address)
	
	  

	(City)        (State)    (Zip Code)

  

			
	NOTICE:	    	The signature on this subscription must correspond with the name as written upon the face of the attached Warrant in every particular, without alteration or enlargement or any change
whatsoever.

			
	ACKNOWLEDGED AND ACCEPTED:
	
	[Purchaser]
		
	By:	 	  

	Name:	 	  

	Title:Employment Agreement

 Exhibit 10.4 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (this
“Agreement”) is made and entered into as of the 4th day of September, 2008 by and among Taylor Capital Group, Inc. (“TCGI”), Cole Taylor Bank (the “Bank”) and Bruce Taylor
(“Executive”) (together, the “Parties”). This Agreement shall become effective only upon the Closing on the Closing Date (as such terms are defined in the Securities Purchase Agreement) contemplated by that certain
Securities Purchase Agreement dated as of September 4, 2008 by and among TCGI, the Bank and each of the preferred stock investors listed on the Schedule of Buyers attached thereto (the “Securities Purchase Agreement”). Prior to
such Closing and notwithstanding any provision in this Agreement to the contrary, this Agreement shall not be effective and Executive shall have no rights of any kind hereunder. In the event that the Closing contemplated by the Securities Purchase
Agreement does not occur on or before December 31, 2008, this Agreement shall not become effective and shall be void and of no effect. 
 RECITALS: 
 A. TCGI desires to employ Executive to serve as its Chief Executive Officer and Chairman of the Board of
Directors of TCGI, and the Bank desires to employ Executive to serve as the Chairman of the Board of Directors of the Bank, and Executive desires to be employed in such capacity by TCGI and the Bank on the terms and conditions set forth in this
Agreement; and 
 B. The Parties desire to enter into this Agreement to set forth the terms and provisions of Executive’s employment
with TCGI and the Bank and certain other agreements which will survive Executive’s employment, as set forth below. 
 NOW,
THEREFORE, in consideration of the premises, the mutual covenants, promises and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto,
intending to be legally bound, agree as set forth herein. 
 1. EMPLOYMENT. TCGI and the Bank hereby employ Executive, and
Executive hereby accepts employment with TCGI and the Bank upon and subject to the terms and conditions set forth herein. Executive will serve as Chairman of the Bank, and as Chairman and Chief Executive Officer of TCGI. During the Term and
thereafter for so long as the Executive is one of the “Taylor Family” nominees to the Board of Directors of TCGI pursuant to Section 2.9 of the Bylaws of TCGI: 
 A. TCGI shall make its best effort to cause the Executive to be elected to the Board of Directors of TCGI and as its Chairman; 
 B. at each meeting of the stockholders of TCGI at which directors of TCGI are to be elected and in each proxy statement relating thereto, TCGI shall
recommend that the stockholders elect the Executive to the Board of Directors of TCGI as its Chairman; 
 C. TCGI shall cause Executive to be
elected to and maintained as a member and Chairman of the Board of Directors of the Bank and to each executive or other committee thereof (other than a traditional audit or compensation committee); and 

 D. to the extent that TCGI fails to cause the Executive to be appointed to and maintained on the Board of
Directors of TCGI, TCGI shall cause the Executive to be appointed as an observer of the Board of Directors of TCGI (other than a traditional audit or compensation committee but including any executive committee) entitled to attend all meetings
thereof and receive copies of all actions to be taken by written consent at the same time as the members thereof. 
 The foregoing obligations shall not
limit or preclude the Board of Directors of TCGI or the Bank from taking or failing to take any action that the Board of Directors of TCGI or the Bank determines in good faith, consistent with the legal opinion of its outside legal counsel, that to
do otherwise would violate its fiduciary duties under applicable law. 
 2. DUTIES. During the Term, Executive will employ his
best efforts and will devote the whole of his normal business time, energy, skill and attention to carrying out the responsibilities assigned to him, in accordance with TCGI’s and the Bank’s policies in effect from time to time and in a
diligent, trustworthy, businesslike and efficient manner. In each case, Executive shall have the responsibility, authority, and such other duties that are customary for an executive officer of a similar corporation having similar titles and duties.
The TCGI Board of Directors (the “Board”) shall oversee Executive in his duties as Chief Executive Officer and Chairman and the Bank’s Board of Directors shall oversee Executive in his duties as Chairman of the Board of
Directors of the Bank. To the extent that such activities do not inhibit Executive from performing his duties for TCGI and the Bank, and do not conflict with the interests of TCGI or the Bank, nothing in this Agreement shall preclude Executive from
(a) subject to prior approval of the Audit Committee of the Board, service as a director at any other entity in accordance with TCGI or Bank policy, (b) service to any civic, religious, charitable or similar type organization,
(c) public speaking engagements, and (d) management of personal and family investments. As of the date hereof, Executive’s continuing service on the boards of directors of Mutual Trust Financial Group and MTL Insurance Company has
been permitted by the Audit Committee of the Board, and the Parties agree that, if at some future time the Audit Committee of the Board shall reasonably determine that such service would be a conflict or contrary to TCGI or Bank policy, then,
promptly upon written notice thereof from the Audit Committee of the Board, Executive shall resign from such board(s). The duties and services to be performed by Executive hereunder shall be substantially rendered at TCGI’s principal offices in
the Chicagoland area, except for reasonable travel on business incidental to the performance of Executive’s duties to TCGI or the Bank. 
 3. COMPENSATION. 
 3.1 Base Salary. During the Term, TCGI will pay to Executive a base
salary at an annual rate of no less than Five Hundred Twenty-Five Thousand Two Hundred Dollars ($525,200), subject to applicable deductions and withholdings for taxes to be paid in periodic payments in accordance with TCGI’s usual payroll
practices (“Base Salary”). Executive’s Base Salary shall be subject to increase, but not decrease (other than permitted proportionate reductions applicable to all similarly situated senior executives of TCGI or the Bank, but
not any such reduction during the two (2) year period commencing upon a Change in Control, as defined in Section 4.3(a)(iii)), at the discretion of the Compensation Committee of the Board. 
 3.2 Annual Incentive Compensation. During the Term, Executive will continue to be eligible to participate in the Taylor
Capital Group, Inc. 2007 Incentive 

  

 2 

 
Bonus Plan or any such successor plan in effect from time to time (“Bonus Plan”). Eligibility and benefits shall be determined by the terms
of the Bonus Plan as in effect from time to time. Executive’s benefits under the Bonus Plan (referred to as the “Bonus”) shall be based upon annual quantitative performance targets as established by the Compensation Committee
in its sole discretion in accordance with the Bonus Plan. Executive’s 2008 target shall remain sixty percent (60%) of Executive’s Base Salary, as previously established by the Compensation Committee of the Board. Any Bonus earned by
Executive shall be paid to Executive in accordance with the terms of the Bonus Plan. 
 3.3 Long-Term Incentive
Compensation Plan. During the Term, Executive will continue to be eligible to participate in the Taylor Capital Group, Inc. 2002 Incentive Compensation Plan or any successor plan in effect from time to time (“Incentive
Plan”) in accordance with its terms as in effect from time to time. Executive shall have annual targets consistent with similar executive officers of TCGI and the Bank. 
 3.4 Deferred Compensation Plan. During the Term, Executive will continue to be eligible to participate in the Taylor Capital
Group, Inc. Deferred Compensation Plan or any such successor plan in effect from time to time in accordance with its terms as in effect from time to time. 
 3.5 401(k) Profit Sharing Plan. During the Term, Executive will continue to be eligible to participate in the Taylor Capital Group, Inc. 401(k)/Profit Sharing plan or any successor plan in effect from
time to time in accordance with its terms as in effect from time to time. 
 3.6 Expenses. The Bank shall pay
the legal fees and expenses incurred by Executive in connection with the negotiation and preparation of this Agreement and related documents and relating to the transactions being contemplated with Harrison Steans and certain of his affiliates
within thirty (30) days of the Bank’s receipt of statements evidencing such legal fees and expenses; provided, that such fees and expenses, together with other fees and expenses of the Taylor Family (including without limitation, the
consulting agreement among TCGI, the Bank and Jeffrey Taylor) relating to such matters shall not in the aggregate exceed $100,000; provided, further, that such reimbursements shall not be made later than March 15, 2009. 
 3.7 Benefits. For so long as Executive is an employee of TCGI or the Bank, Executive will continue to be eligible to
participate in the health and welfare benefit plans (which currently include medical, dental, vision, disability, life insurance and flexible spending accounts) sponsored by TCGI or the Bank in accordance with the applicable plan documents in effect
from time to time. Nothing in this Agreement shall require TCGI or the Bank to continue to maintain any particular health or welfare or other employee benefit plan. 
 3.8 Additional Benefits. During the Term, Executive’s perquisite package shall include the payment of club dues in an
amount not to exceed Thirty Thousand Dollars ($30,000.00) per year, the reimbursement of automobile expenses in an amount not to exceed One Thousand Five Hundred Dollars ($1,500.00) per month, and the provision of wealth management services in
accordance with the Bank’s policies in effect from time to time at a discount of twenty percent (20%) off 

  

 3 

 
the Bank’s standard charges, with the amount of the discount not to exceed Four Thousand Dollars ($4,000.00) per year (“Benefits”).
Notwithstanding anything to the contrary herein provided, the amount of Benefits provided during one calendar year shall not affect the amount of Benefits provided during a subsequent calendar year, the Benefits may not be exchanged or substituted
for other forms of compensation to Executive, and any reimbursement or payment under the Benefit arrangements will be paid in accordance with applicable plan or policy terms and no later than the last day of Executive’s taxable year following
the taxable year in which he incurred the expense giving rise to such reimbursement or payment. 
 3.9 Paid Time
Off. For so long as Executive is an employee of TCGI or the Bank, Executive shall continue to be eligible for up to twenty-four (24) days of paid time off each year in accordance with TCGI’s or the Bank’s policies in effect
from time to time. 
 3.10 Other Benefits. During the Term, Executive shall be eligible to participate in such
other insurance programs and other benefit plans not specifically set forth herein that TCGI and the Bank may now have in effect or may hereinafter adopt for similar executives to the extent permitted under the terms of such programs and plans in
effect from time to time. 
 3.11 Director Fees. For so long as Executive is a director (but not an employee of
TCGI or the Bank at such time) of TCGI or the Bank, he shall be entitled to and shall receive customary cash, equity and other compensation for board service on the same terms and conditions as other non-employee directors of TCGI or the Bank (as
applicable). If the Executive is an employee of TCGI or the Bank at any time that he serves as a director of TCGI or the Bank, he shall not be entitled to or paid any compensation described under this Section 3.11. 
 4. TERM OF EMPLOYMENT AND TERMINATION. 
 4.1 Term of Employment. Executive shall be employed at will, and the term of Executive’s employment hereunder shall commence on the date of this Agreement and continue until terminated pursuant to
the provisions of this Section 4 (the “Term”). Unless otherwise provided in this Section 4 or unless the context requires otherwise, the Parties shall each provide to the other thirty (30) days prior written notice of
any termination of employment; provided however, that nothing herein shall prevent immediate termination of employment of Executive by TCGI or the Bank if such termination is for Cause. 
 4.2 Termination Due to Death or Disability. If, during the Term,
Executive dies or if Executive’s employment is terminated on account of Disability, as defined in Section 4.3(a)(ix), the Term shall terminate upon the date of Executive’s death or his termination due to Disability; provided, however,
that TCGI shall pay (i) his Base Salary earned but not yet paid up to the date of such termination; (ii) any Bonus earned but not yet paid for the year preceding such termination; and (iii) an amount equal to the Bonus for the year
preceding the year of such termination multiplied by a fraction whose numerator is the number of days lapsed from January 1st through the date
of such termination, and whose denominator is 365 (hereinafter referred to as “Pro-Rata Bonus”). In the event of the death of Executive, such payments shall be made in accordance with Section 22.10. Any of Executive’s
stock 

  

 4 

 
options or restricted stock provided under any arrangement with TCGI or the Bank shall vest, terminate, expire or be subject to exercise by the appropriate
party, in accordance with the applicable plan documents or other agreements in effect at the time of Executive’s termination of employment. 
 4.3 Severance Provisions. The following additional provisions govern the payment of severance benefits to Executive in all cases of termination of his employment, except as a result of his death or
Disability: 
 (a) Definitions. 
 (i) “Affiliate” means, with respect to any person, any individual, corporation, partnership, association, joint-stock
company, trust, unincorporated association or other entity (other than such person) that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with that person. 
 (ii) “Cause” means: (a) Executive has committed an act of dishonesty that results, or is intended to result, in
material gain or personal enrichment of Executive or has, or is intended to have, a material detrimental effect on the reputation or business of TCGI or the Bank; (b) Executive has committed an act or acts of fraud, moral turpitude or
constituting a felony (other than relating to the operation of a motor vehicle); (c) any material breach by Executive of any provision of this Agreement that, if curable, has not been cured by Executive within thirty (30) days of written
notice of such breach from TCGI or the Bank; (d) an intentional act or willful gross negligence on the part of Executive that has, or is intended to have, a material, detrimental effect on the reputation or business of TCGI or the Bank;
(e) Executive’s refusal, after thirty (30) days written notice thereof, to perform specific reasonable directives from the Board or the Board of Directors of the Bank that are reasonably consistent with the scope and nature of his
duties and responsibilities, as set forth in this Agreement; or (f) Executive being barred or prohibited by any governmental authority or agency from holding the position of Chief Executive Officer of TCGI or Chairman of either TCGI or the
Bank. The decision to terminate Executive’s employment for Cause, to take other action or to take no action in response to any occurrence shall be in the sole and exclusive discretion of the Board. No act or failure to act shall be considered
“intentional” unless it is done, or omitted to be done, by Executive in bad faith or without reasonable belief that Executive’s action or omission was in the best interests of TCGI or the Bank; and provided further, that no act or
omission shall constitute Cause hereunder absent such a finding by the Board. 
 (iii) “Change in Control”
means the occurrence of any of the following events: 
 (1) A change in the ownership of TCGI or the Bank. A change in
the ownership of TCGI or the Bank shall occur on 

  

 5 

 
the date that any one person, or more than one person acting as a “Group” (as defined below), except for the Taylor Family, or an Employee Stock
Ownership Plan (as defined below), acquires ownership of stock of TCGI or the Bank that, together with all other stock held by such person or Group, constitutes more than fifty percent (50%) of the total fair market value or total voting power
of the stock of TCGI or the Bank. 
 (2) A change in the effective control of TCGI or the Bank. A change in the
effective control of TCGI or the Bank occurs on the earlier of the date that a majority of the members of the Board or the Bank’s Board of Directors is replaced during any twelve (12) month period by directors whose appointment or election
is not endorsed by a majority of the members of the Board or the Bank’s Board of Directors prior to the date of the appointment or election; provided, however, that, if one person, or more than one person acting as a Group, is considered to
effectively control TCGI or the Bank, the acquisition of additional control of TCGI or the Bank by the same person or persons is not considered a change in the effective control of TCGI or the Bank. 
 (3) A change in the ownership of a substantial portion of TCGI’s or the Bank’s assets. A change in the ownership of a
substantial portion of TCGI’s or the Bank’s assets occurs on the date that any one person, or more than one person acting as a Group, acquires (or has acquired during the twelve (12) month period ending on the date of the most recent
acquisition by such person or persons) assets from TCGI or the Bank that have a total Gross Fair Market Value (as defined below) equal to or more than fifty percent (50%) of the total Gross Fair Market Value of all of the assets of TCGI or the
Bank immediately prior to such acquisition or acquisitions; provided, however, that, a transfer of assets by TCGI or the Bank is not treated as a change in the ownership of such assets if the assets are transferred to: 
 (A) a stockholder of TCGI or the Bank (immediately before the asset transfer) in exchange for or with respect to its stock; or

 (B) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by TCGI or the
Bank. 
 (iv) For purposes of the definition of Change in Control: 
 (1) “Gross Fair Market Value” means the value of the assets of TCGI or the Bank (as applicable), or the value of the
assets being disposed of, determined without regard to any liabilities associated with such assets; 
  

 6 

 (2) “Group” shall have the meaning ascribed to such term in Sections
(i)(5)(v)(B), (vi)(D) or (vii)(C), as applicable, of Treasury Regulation Section 1.409A-3; and 
 (3) “Employee
Stock Ownership Plan” means a retirement plan that is (A) intended to be a tax-qualified plan under Section 401(a) of the Internal Revenue Code of 1986, as amended (“Code”); (B) intended to be an employee
stock ownership plan defined under Code Section 4975(e)(7); and (C) is sponsored by TCGI (or a member of its controlled group, as determined under Code Section 414(b)). 
 (v) “Exchange Act” means the Securities Exchange Act of 1934. The terms “beneficial owner” and
“beneficially owned” have the meaning set forth in Rule 13d-3 under the Exchange Act. 
 (vi)
“Outstanding securities” when used in the context of the “combined voting power of TCGI’s then outstanding securities” means only the common stock of TCGI and securities convertible into such common stock. 

(vii) “Change in Control Period” means the continuous period commencing on the Effective Date and ending on the
second anniversary of the Effective Date. 
 (viii) “COBRA Continuation Coverage” means the medical, dental
and vision care benefits that Executive and his Qualifying Family Members elect and are eligible to receive upon Executive’s termination of employment with TCGI and the Bank pursuant to Code Section 4980B and Section 601 et. al. of
the Employee Retirement Income Security Act of 1974, as amended. For this purpose, an Executive’s Qualifying Family Members are his spouse and his dependent children to the extent they are eligible for, and elect to receive, continuation
coverage under such Section 4980B and Section 601 et. al. Notwithstanding any other provision of this Agreement to the contrary, COBRA Continuation Coverage under this Agreement shall terminate for any individual when it terminates under
the terms of the applicable benefit plan of TCGI or the Bank in accordance with such Section 4980B and Section 601 et. al. 
 (ix) “Disability” shall be deemed to have occurred if TCGI determines that Executive has a physical or mental impairment, as confirmed by a licensed physician selected by TCGI that renders Executive
unable to engage in any substantial gainful activity, and is expected to result in death or is expected to last for a continuous period of not less than twelve (12) months. This definition of “Disability” is intended to comply with
Code Section 409A, and the regulations in effect thereunder, and shall be interpreted and administered in accordance with said provisions. Termination due to Disability shall be deemed to have occurred upon the first day of the month following
the determination of Disability as defined in the preceding sentence. 
  

 7 

 (x) “Effective Date” means the date on which a Change in Control
occurs. Anything in this Agreement to the contrary notwithstanding, if Executive incurs a Qualifying Termination, then for all purposes of this Agreement the “Effective Date” shall mean the date of such Qualifying Termination. 

(xi) “Good Reason” means the occurrence of any of the following events unless, (A) such event occurs with
Executive’s express prior written consent, (B) the event is an isolated, insubstantial or inadvertent action or failure to act which is remedied by TCGI or the Bank promptly after receipt of notice thereof given by Executive, (C) the
event occurs in connection with the termination of Executive’s employment for Cause, Disability or death or (D) the event occurs in connection with Executive’s voluntary termination of employment other than due to the occurrence of
one of the following events: 
 (1) a material adverse change in the nature or scope of the authorities, powers, functions,
duties or responsibilities attached to Executive’s position (including, but not limited to, Executive not being re-elected or removed from his positions with TCGI or the Bank); or 
 (2) a change in Executive’s principal office to a location outside of Cook County, DuPage County or Lake County; or 
 (3) any material reduction in Executive’s Base Salary and Bonus opportunity (other than permitted proportionate reductions
applicable to all similarly situated senior executives of TCGI or the Bank, unless such reduction occurs during the two (2) year period commencing upon a Change in Control); or 
 (4) a material breach of this Agreement by TCGI or the Bank. 
 Notwithstanding any provision herein to the contrary, removal of Executive from the position of Chief Executive Officer of TCGI (including a reduction or
alteration or any material adverse change in the nature and/or scope of the authorities, powers, functions, duties and/or responsibilities applicable to the position of Chief Executive Officer of TCGI in accordance with the Bylaws of TCGI) at any
time, shall not constitute a Good Reason event, unless Executive is no longer an employee of TCGI or there is a material reduction in his compensation pursuant to clause (3) above or Executive suffers a material reduction of duties such that
Executive no longer has the duties and responsibilities of an active senior executive of TCGI as determined from time to time in accordance with the Bylaws of TCGI. Anything herein to the contrary notwithstanding, Executive shall be required to give
written notice to the Board that Executive believes an event has occurred that constitutes a Good Reason event within ninety 

  

 8 

 
(90) days of the initial occurrence, which written notice shall specify the particular act or acts, on the basis of which Executive intends to so terminate
Executive’s employment. Within sixty (60) days of its receipt of such notice, TCGI or the Bank, as the case may be, shall have the opportunity to cure such Good Reason event, and if cured, within such sixty (60) day period, any
termination by Executive due to that particular Good Reason event, shall be a voluntary termination of employment other than for Good Reason. 
 (xii) “Prior Year’s Bonus” means the Bonus paid by TCGI or the Bank to Executive in the year preceding the year in which the Effective Date occurs. 
 (xiii) “Qualifying Termination” means a termination of employment where Executive’s employment with TCGI or the
Bank is terminated by TCGI or the Bank without Cause or by Executive for Good Reason and a Change in Control occurs within sixty (60) days of the termination of Executive’s employment. 
 (xiv) “Severance Compensation” means the sum of (A) Executive’s annual Base Salary at the greater of the rate
in effect on the Effective Date or the rate in effect immediately prior to the date when notice of termination of Executive’s employment was given and (B) the average of (1) the Prior Year’s Bonus and (2) the greatest of
(a) the Prior Year’s Bonus, (b) Executive’s actual Bonus for the year in which the Effective Date occurs, or (c) Executive’s Bonus at target for the year in which his Separation from Service occurs. 
 (xv) “Separation from Service” means Executive’s termination of employment with TCGI and the Bank that constitutes
a “separation from service,” as such term is defined under Code Section 409A or applicable guidance or regulations thereunder. 
 (xvi) “Taylor Family” means (A) Iris Taylor and the Estate of Sidney J. Taylor, (B) a descendant (or a spouse of a descendant) of Sidney J. Taylor and Iris Taylor, (C) any estate,
trust, guardianship or custodianship for the primary benefit of any individual described in item (A) or (B) above, or (D) a proprietorship, partnership, limited liability company, or corporation controlled directly or indirectly by
one or more individuals or entities described in item (A), (B) or (C) above. 
 (b) Certain Terminations of
Employment. If Executive’s Separation from Service occurs except as a result of his death or Disability: 
 (i) (x)
by TCGI (other than for Cause) or (y) as a result of Executive’s termination for Good Reason within one hundred fifty (150) days of the Good Reason event, Executive shall be entitled to receive (A) all previously earned and
accrued but unpaid Base Salary and Benefits up to the date of such termination shall be paid to Executive within thirty (30) days of his Separation from Service, (B)

  

 9 

 
any Bonus earned but unpaid for the calendar year preceding such termination, (C) subject to Sections 4.3(k) and 4.3(l), a Pro-Rata Bonus for the year
in which such termination occurs, (D) subject to Sections 4.3(k) and 4.3(l), an amount equal to one and one-half (1.5) times the sum of Base Salary plus the average of (1) the Bonus paid to Executive with respect to the year preceding
the year in which his employment terminates, and (2) the greater of (I) the amount described in clause (1) and (II) Executive’s Bonus at target for the year in which his termination occurs to be paid in equal installments
(subject to the accumulation of the first installment consistent with Section 4.3(h)) through the period ending on the eighteen (18) month anniversary of the termination of Executive’s employment in accordance with the Bank’s
customary payroll practices; and (E) for a period of not more than eighteen (18) consecutive months beginning with the date of Executive’s termination of employment, TCGI or the Bank shall provide, at no cost to Executive and his
Qualifying Family Members, COBRA Continuation Coverage. Any benefits described under Sections 3.3 and 3.4 shall be payable in accordance with the terms of the applicable plan or arrangement. In the event Executive materially breaches any of his
obligations set forth in Sections 8, 9, 10, 11, 12 and/or 13, the Bank’s and TCGI’s obligation to make any further payments or provide benefits to Executive under this Agreement shall terminate, and Executive acknowledges that the remedy
offered to the Bank and TCGI under this Section 4.3(b)(i) is not exclusive and it shall not preclude TCGI or the Bank from seeking or receiving any other relief, including, without limitation, any form of monetary or equitable relief; and

 (ii) as a result of (A) Executive’s voluntary resignation other than for Good Reason in accordance with the
provisions relating to a Good Reason termination, or (B) termination by the Board for Cause, Executive shall be entitled to all previously earned and accrued but unpaid Base Salary which shall be paid to Executive within thirty (30) days
of his employment termination date. Paid time off and other benefits to which Executive may be entitled shall be determined in accordance with TCGI’s or the Bank’s applicable plans, programs, and policies in effect from time to time. The
Executive shall not be entitled to any Bonus or awards under Section 3.3 or 3.4, or any Benefits, or to any other severance or other compensation of any kind, nature or amount; unless otherwise provided pursuant to the terms of applicable
plans, programs and policies of TCGI and the Bank. 
 (c) Change in Control. Subject to the limits of this Agreement
and in addition to any payments Executive is entitled to receive pursuant to Section 4.3(b) and Executive’s obligations thereunder, if during the Change in Control Period Executive’s Separation from Service occurs other than as a
result of his death or Disability because, (x) TCGI terminates Executive’s employment other than for Cause or (y) Executive terminates his employment with TCGI for Good Reason within one hundred fifty (150) days of the Good
Reason event, then: (i) TCGI shall pay to Executive an amount equal to one-half 

  

 10 

 
(0.5) times Executive’s Severance Compensation (the “Change in Control Payment”); (ii) TCGI shall continue Executive’s
medical benefits for a period of up to thirty-six (36) months, provided such continued medical benefits constitute COBRA Continuation Coverage, and subject to the limitations of Section 4.3(a)(viii); and (iii) the vesting of any
outstanding Incentive Plan benefits under Section 3.3 shall be governed by the terms of the controlling plan documents. Subject to Sections 4.3(k) and 4.3(l), the Change in Control Payment shall be paid in a single lump sum payment as follows:
(i) if Executive’s termination of employment occurs as a result of a Qualifying Termination, the Change in Control Payment shall be made within seventy (70) days following the Change in Control or (ii) if Executive’s
termination of employment occurs on or following the date of the Change in Control, the Change in Control Payment shall be made within seventy (70) days following Executive’s Separation from Service; provided, however, that if such seventy
(70) day period spans two calendar years, the Change in Control Payment shall be made on or after January 1 of the second calendar year. If Executive’s employment is terminated by Executive during the Change in Control Period for any
reason other than a Good Reason, or if TCGI shall terminate Executive’s employment for Cause during the Change in Control Period, or if Executive’s employment terminates due to Executive’s death or Disability, the obligation provided
in this Section 4.3(c) shall terminate without any obligation of TCGI or the Bank to Executive hereunder. 
 (d)
Taxes. Subject to Section 4.3(k), in the event that the aggregate of all payments or benefits made or provided to, or that may be made or provided to, Executive under this Agreement and under all other plans, programs and arrangements of
TCGI or the Bank (the “Aggregate Payment”) is determined to constitute a “parachute payment,” as such term is defined in Code Section 280G(b)(2), TCGI or the Bank shall pay to Executive, prior to the time any excise
tax imposed by Code Section 4999 (“Excise Tax”) is payable with respect to such Aggregate Payment, an additional amount, which after the imposition of all income and excise taxes thereon, is equal to the Excise Tax on the
Aggregate Payment (“Gross-Up Payment”); provided, however, that such Gross-Up Payment shall not exceed $350,000 and shall be made no later than the end of Executive’s taxable year following the taxable year in which Executive
remits the Excise Tax to the applicable taxing authority. Notwithstanding the foregoing provision of this Section 4.3(d) to the contrary, if it shall be determined that Executive is entitled to a Gross-Up Payment, but the Aggregate Payment does
not exceed one hundred ten percent (110%) of the greatest amount that could be paid to Executive without the Aggregate Payment giving rise to any Excise Tax (the “Reduced Amount”), then no Gross-Up Payment shall be made to
Executive and the Aggregate Payment shall be reduced to the Reduced Amount. The determination of whether the Aggregate Payment constitutes a parachute payment and, if so, the amount to be paid to Executive as a Gross-Up Payment and the time of such
Gross-Up Payment pursuant to this Section 4.3(d) shall be made by an independent auditor (the “Auditor”) jointly selected by TCGI and Executive and paid by TCGI. The Auditor shall be a nationally recognized United States public
accounting firm that has not, during the two (2) years preceding the date of its selection, acted in any way on behalf of TCGI or any Affiliate 

  

 11 

 
thereof. If Executive and TCGI cannot agree on the firm to serve as the Auditor, then Executive and TCGI shall each select one accounting firm and those two
firms shall jointly select the accounting firm to serve as the Auditor. Subject to the foregoing cap of $350,000, in the event that the amount of Executive’s Excise Tax liability is subsequently determined to be greater than the Excise Tax
liability with respect to which an initial Gross-Up Payment to Executive under this Section 4.3(d) has been made, TCGI or the Bank shall pay to Executive an additional amount with respect to such additional Excise Tax (and any interest and
penalties thereon) at the time and in the amount determined by the Auditor so as to make Executive whole, on an after-tax basis, with respect to such Excise Tax (and any interest and penalties thereon); provided, however, that such payment shall be
made no later than the end of Executive’s taxable year following the taxable year in which Executive remits the Excise Tax to the applicable taxing authority. In the event the amount of Executive’s Excise Tax liability is subsequently
determined to be less than the Excise Tax liability with respect to which an initial Gross-Up Payment to Executive has been made, Executive shall, as soon as practical after the determination is made, pay to TCGI or the Bank, as the case may be, the
amount of the overpayment by TCGI or the Bank, reduced by the amount of any relevant taxes already paid by Executive and not refundable, all as determined by the Auditor. Executive and TCGI shall cooperate with each other in connection with any
proceeding or claim relating to the existence or amount of liability for Excise Tax. 
 (e) Other Benefits. Nothing in
this Agreement shall prevent or limit Executive’s continuing or future participation in any other non-severance plan, program, policy or practice of TCGI, the Bank or any Affiliate for which Executive may qualify, nor shall anything in this
Agreement limit or otherwise affect the rights of TCGI, the Bank or Executive under any other non-severance plan, program, policy, practice, contract or agreement to which TCGI, the Bank or any Affiliate may be a party. Any amounts payable or rights
or benefits furnished to Executive under any such non-severance plan, program, policy, practice, contract or agreement with TCGI, the Bank or any of its Affiliates at or subsequent to the date of Executive’s termination of employment shall be
payable in accordance with the terms of such plan, program, policy, practice, contract or agreement and without regard to this Agreement, except as explicitly modified by this Agreement, to the extent such modification does not result in a tax under
Code Section 409A. Amounts payable in respect of this Agreement shall not be taken into account with respect to any other non-severance employee benefit plan or arrangement. Notwithstanding anything to the contrary herein, benefits payable to
Executive under Sections 4.3(b) and/or 4.3(c) hereof shall be in lieu of benefits under any other severance plan, program, policy, or practice of TCGI, the Bank or any Affiliate. 
 (f) Mitigation. The Executive shall not be obligated to seek other employment or take any other action by way of mitigation of the
amounts payable to Executive under this Agreement, and the amount payable under this Agreement shall not be reduced in the event that Executive obtains other employment. 
  

 12 

 (g) Certain Payments. Notwithstanding anything to the contrary herein, in the
event of Executive’s death following a termination of Executive’s employment with TCGI or the Bank during the Change in Control Period under circumstances described in the first sentence of Section 4.3(c) hereof, (A) if
Executive’s death shall have occurred prior to the payment of the lump sum amount set forth in clause (i) of the first sentence of Section 4.3(c), such amount shall thereafter be paid in accordance with Section 22.10 and
(B) if Executive’s death shall have occurred prior to the end of the eighteen (18) month period described in clause (E) of Section 4.3(b)(i), TCGI will continue to provide at no cost COBRA Continuation Coverage to
Executive’s Qualifying Family Members (but only to the extent a Qualifying Family Member is being provided such coverage at the time of Executive’s death) for the remainder of such eighteen (18) month period, subject to the limits set
forth in Section 4.3(a)(viii). 
 (h) Payment of Benefits.
Following the termination of Executive’s employment and except as expressly provided above or in Section 4.3(l), and subject to Section 4.3(k), all payments (or in the case of installments, the first installment) due to Executive
hereunder shall be paid to Executive on the seventieth (70th) day after the date of Separation from Service. In the case of payments in
installments, any installments that might be due (but for the application of Section 4.3(k)) prior to the seventieth (70th) day after the
date of Separation from Service shall be accumulated such that the first installment of such payment shall (subject to Section 4.3(k)) be paid on the seventieth (70th) day after the date of Separation from Service. 
 (i) Sole Source of Severance
Benefits. Other than the Salary Continuation Benefit referred to in Section 21 below, Executive hereby agrees that except as expressly provided herein no severance compensation of any kind, nature or amount shall be payable to Executive by
TCGI or the Bank. 
 (j) Right to Benefits Terminates. Except as provided in Sections 4.3(b)(i) and 4.3(c) above, all
of Executive’s rights to Benefits hereunder, or participation in any plans, programs, or perquisites (if any) of TCGI, the Bank or any Affiliate shall cease upon the termination of Executive’s employment, except the right of Executive to
elect COBRA Continuation Coverage. 
 (k) Execution of Release. To receive payments and benefits under Section(s)
4.3(b)(i), 4.3(c) and/or 4.3(d), Executive must execute, not revoke and return to TCGI a release and waiver of claims substantially in the form attached hereto as Exhibit A (“Release”) and such Release must become irrevocable
no later than sixty (60) days following Executive’s Separation from Service. If such Release is not timely executed, returned to TCGI and if the revocation period has not expired, and the Release has not become irrevocable, Executive shall
forfeit his right to any payments or benefits as provided in Section(s) 4.3(b)(i), 4.3(c) and/or 4.3(d). 
 (l) Specified
Employee. Notwithstanding anything to the contrary herein provided, if Executive is considered a “specified employee” (as defined in Treasury Regulation Section 1.409A-1(i)) as of the date of his Separation from Service, no
payments of deferred compensation payable due to 

  

 13 

 
Executive’s Separation from Service shall be made under the Incentive Plan, the Deferred Compensation Plan described in Section 3.4, this Agreement
under Section 4.3, or under any other deferred compensation arrangements payable under this Agreement due to Executive’s Separation from Service, to Executive hereunder before the first business day that is six (6) months after the
date of Executive’s Separation from Service (or upon Executive’s death, if earlier) (the “Restricted Period”). Any deferred compensation payments that would otherwise be required to be made to Executive during the
Restricted Period shall be accumulated by TCGI or the Bank, as the case may be, and paid to Executive on the first day after the end of the Restricted Period. The foregoing restriction on the payment of amounts to Executive during the Restricted
Period shall not apply to the payment of employment taxes. 
 5. BUSINESS EXPENSES. Executive is authorized to incur ordinary
and necessary business expenses in order to meet TCGI’s or the Bank’s expectations that as an employee, he travel and entertain as the business of TCGI or the Bank requires. The Bank will reimburse Executive for all reasonable business
expenses thereby incurred upon receipt of expense vouchers in a form satisfactory to the Bank in accordance with the Bank’s policies as in effect from time to time. 
 6. WORKING FACILITIES. Executive shall be furnished with office facilities, equipment and services suitable to his position and adequate for the performance of his duties. 
 7. INDEMNITY. Executive shall be eligible for indemnity to the fullest extent permitted by law and/or the Bylaws of the Bank and TCGI (as
set forth more fully in an indemnification agreement between TCGI and Executive entered into as of the date hereof). 
 8. RETURN OF
PROPERTY. At the time that Executive’s employment terminates, or at any other time that TCGI so requests, Executive will promptly return and turn over to TCGI all property of TCGI, the Bank and their Customers, including but not limited
to all Confidential Information (as defined in Section 13) in Executive’s possession or control, whether in written form, stored electronically or in physical form. Executive will not keep any copies of such materials. 
 9. ABSENCE OF PRIOR AGREEMENTS. Executive represents, warrants and agrees that Executive: 
 (a) has the legal capacity and unrestricted right to execute and deliver this Agreement and to perform all of his obligations hereunder;
and 
 (b) by entering into this Agreement and performing the duties of his position, he will not breach, violate, be in
conflict with, or interfere with any contract, agreement, understanding or legal obligation owed to any third party, and Executive is free to execute this Agreement. 
 10. WORKS BELONG TO THE BANK AND TCGI. TCGI and the Bank have retained Executive to continue to work full time and exclusively for TCGI and the Bank, so all work product which Executive develops while
engaged in performing services for TCGI or the Bank during or prior to the Term (“Work”) shall be the sole property of TCGI or the Bank, as appropriate. TCGI or the Bank, as appropriate, shall be the sole owner of all 

  

 14 

 
patents, copyrights and other rights relating to Works. Executive acknowledges that all Works are works for hire that become property of TCGI or the Bank, as
appropriate, and Executive assigns to TCGI or the Bank, as appropriate, any and all rights that Executive may have or acquire in all Works. Executive also acknowledges that any business he generates during the Term, or any business he has generated
prior to the Term for TCGI or the Bank shall belong to TCGI or the Bank, as determined by TCGI. 
 11. COOPERATION. Executive
agrees that both during and after the Term, he shall, at the reasonable request of TCGI or the Bank, render all assistance and perform all lawful acts that TCGI or the Bank considers necessary or advisable in connection with any litigation or other
legal proceedings or regulatory matters involving TCGI or the Bank or any present or former director, officer, member, manager, executive, shareholder, agent, representative, consultant, Customer or vendor of TCGI or the Bank. Executive also agrees
that, in addition to the other obligations set forth in this Agreement, during his employment and for as long thereafter as shall be deemed reasonably necessary by TCGI or the Bank, he will consult, assist and reasonably cooperate with TCGI and the
Bank in any negotiation, transaction, inquiry, regulatory review, investigation, or other action arising out of matters in which he was involved while employed by TCGI or the Bank or as to which he may have pertinent information. Executive agrees
that he will make himself reasonably available for preparation for hearings, interviews, proceedings, litigation or other matters. TCGI and the Bank agree to make reasonable efforts to provide Executive with reasonable notice in the event his
assistance, cooperation or participation is required. Notwithstanding anything in this Section 11 to the contrary, any such cooperation or assistance to be provided by Executive will in no way prevent him from incurring a Separation from
Service on the date of his termination of employment. TCGI or the Bank will reimburse reasonable out-of-pocket expenses incurred by Executive as a direct result of his cooperation hereunder, provided that such expenses are supported by appropriate
documentation in accordance with TCGI’s or the Bank’s policies and have the prior approval of TCGI or the Bank. Notwithstanding anything to the contrary herein provided, the amount of reimbursement provided during one calendar year shall
not affect the amount of reimbursement provided during a subsequent calendar year, the reimbursement may not be exchanged or substituted for other forms of compensation to Executive, and any reimbursement will be paid no later than the last day of
Executive’s taxable year following the taxable year in which he incurred the expense giving rise to such reimbursement. The reimbursement provisions of this Section 11 shall be in effect for the lifetime of Executive. 
 12. COMMENTS CONCERNING THE BANK OR TCGI. Executive agrees that, during and after the Term, he will not, directly or indirectly,
individually or in concert with others, engage in any conduct or make any statement calculated or likely to have the effect of defaming or disparaging or otherwise reflecting poorly upon the Bank, TCGI and/or its or their respective Customers,
executives, officers, directors, shareholders, managers, members, suppliers, or joint venturers concerning their products, reputations, services, good will, or business opportunities; provided however, that nothing in this Agreement is intended to
preclude Executive from providing truthful and non-malicious testimony if properly subpoenaed to testify under oath. 
 13.
CONFIDENTIALITY AND NON-SOLICITATION PROVISIONS. 
 (a) Confidential Information. Executive acknowledges
that he is or will be in a position of trust and in the course of his employment or retention, he continues to be given access to Confidential Information (as 

  

 15 

 
defined below) of TCGI, the Bank and its or their Customers. This Confidential Information is not generally known, has been generated at great effort and
expense, and has been maintained in a confidential manner by TCGI and/or the Bank. Executive agrees to keep all Confidential Information strictly confidential. Executive will not use, copy, take, disclose or remove Confidential Information
(i) during his employment or retention, except as expressly authorized by and for the benefit of the Bank or TCGI, and (ii) at any time after his employment or retention ends for as long as such Confidential Information has not become
generally known in the banking industry through proper means. Executive will not claim any rights to or lien on any Confidential Information. Executive will immediately notify TCGI or the Bank of any unauthorized possession, use or disclosure, or
threat thereof, of any Confidential Information by anyone. “Confidential Information” means any other non-public confidential or proprietary information of TCGI, the Bank and/or its or their Customers (whether reduced to writing or
not) including, but not limited to: (A) Customer files, presentations, contracts, loan commitments, credit or loan proposals, credit information, term sheets and other information relating to TCGI’s or the Bank’s business or its or
their Customers; (B) employee personnel files and expense records; (C) marketing databases and marketing proposals or strategies; (D) financial analyses; and (E) any other information belonging to TCGI, the Bank or its or their
Customers that would be protected by law, whether or not it constitutes a “trade secret” within the meaning of the Illinois Trade Secrets Act (765 ILCS 1065/1 et seq.), as amended. Confidential Information shall not include:
(1) information disclosed publicly in published materials or (2) information that has become generally known in the banking industry through proper means. Notwithstanding the foregoing, nothing herein shall prohibit the Executive from
disclosing any Confidential Information as is required by law, provided that, unless prohibited from doing so by law, prior to any such disclosure, Executive shall promptly and without delay, provide notice of such anticipated disclosure to TCGI and
the Bank. 
 (b) Non-Interference. Except with the prior written consent of TCGI and the Bank, during Executive’s
employment or retention and for a period of twelve (12) months after his Separation from Service for any reason, Executive agrees that he will not, directly or indirectly, either for himself or for any other business or person: 
 (i) Solicit or attempt to solicit for the purpose of doing business in a competitive manner with any of the Bank’s or TCGI’s
Customers with whom the Bank or TCGI has a protectable relationship or with whom Executive has had substantial contact, or about whom Executive obtained Confidential Information during his employment or retention. For purposes of this Agreement, the
term “Customer” includes any person, firm or entity (A) who, at the time of Executive’s employment with or retention by, TCGI or the Bank, maintained any depository account at the Bank; or (B) to whom the Bank has
extended credit (whether new or existing) during the six (6) month period immediately preceding the Executive’s Separation from Service; or (C) who otherwise actually used any of the Bank’s financial products or services during
the six (6) month period immediately preceding the Executive’s Separation from Service. 
  

 16 

 (ii) Solicit or negotiate with, for the purpose of doing business in a competitive
manner with, hiring, or otherwise engage in any activity that encourages or induces any Employee with whom the Bank or TCGI has a protectable relationship or with whom Executive has had substantial contact, or about whom Executive obtained
Confidential Information to: (A) alter or terminate his or her employment relationship with TCGI or the Bank, or (B) breach any obligation owed to the Bank or TCGI. For purposes of this Agreement, the term “Employee” means
any person employed by TCGI or the Bank at the time of the activities complained of, or any person whose employment with TCGI or the Bank ended within one (1) month preceding the occurrence of such activity. 
 (iii) As used in this Agreement, “business” includes any corporation, company, sole proprietorship, association,
partnership, limited partnership, consultant, independent contractor, or other person or entity. 
 (c) Extension of
Restraints During Periods of Violation. If Executive violates any restriction on his activities in this Agreement, Executive agrees that the period of such restriction shall not run during the period of the violation and the duration of such
restriction shall automatically be extended for an additional period equal to the cumulative duration of such violation. Executive agrees that the purpose of this Section 13(c) is to give the Bank and TCGI the protection of the restriction for
the full agreed-upon duration. 
 (d) Need for Restrictive Provisions in this Agreement. Executive agrees that because
of the nature of TCGI’s or the Bank’s business, any restriction in this Agreement is reasonable in light of the benefits conferred upon Executive and is necessary to protect the legitimate interests of TCGI or the Bank and enforcement of
such restriction will not cause any undue hardship or unduly restrict Executive’s ability to earn a living or support his family. 
 14. RESOLUTION OF DISPUTES. Any dispute related to the interpretation or enforcement of this Agreement shall be enforceable only by arbitration in Cook County, Illinois (or such other metropolitan area to which TCGI’s
principal executive offices may be relocated if such relocation does not result in Good Reason for Executive to terminate his employment with TCGI), in accordance with the commercial arbitration rules then in effect of the American Arbitration
Association, before a panel of three arbitrators, one of whom shall be selected by TCGI, the second of whom shall be selected by Executive and the third of whom shall be selected by the other two arbitrators. In the absence of the American
Arbitration Association, or if for any reason arbitration under the arbitration rules of the American Arbitration Association cannot be initiated, or if one of the Parties fails or refuses to select an arbitrator, or if the arbitrators selected by
TCGI and Executive cannot agree on the selection of the third arbitrator within seven (7) days after such time as TCGI and Executive have each been notified of the selection of the other’s arbitrator, the necessary 

  

 17 

 
arbitrator or arbitrators shall be selected by the presiding judge of the court of general jurisdiction in the metropolitan area where arbitration under this
Section 14 would otherwise have been conducted. Any award entered by the arbitrators shall be final, binding and nonappealable and judgment may be entered thereon by any Party in accordance with applicable law in any court of competent
jurisdiction. This arbitration provision shall be specifically enforceable. Notwithstanding the foregoing, the Parties may also seek specific enforcement of any of the provisions of this Agreement, or any of the other documents executed in
connection herewith, and in connection therewith, if a court finds any provision in this Agreement to be unreasonable or unenforceable, Executive agrees that such finding will not affect the validity of any other provision and that the court may
modify, amend or excise such invalid provision so that it is reasonable and enforceable to the maximum extent permitted by law. Executive also agrees that TCGI and the Bank will be entitled to emergency, preliminary, and final injunctive relief to
enforce this Agreement without the need for a bond or security. TCGI’s and the Bank’s remedies for breach of this Agreement are cumulative and pursuit of one remedy by TCGI or the Bank shall not exclude any other remedy. 
 15. VENUE. To the extent it becomes necessary for a Party to seek specific enforcement or other equitable relief, TCGI, the Bank and
Executive acknowledge and agree that the U.S. District for the Northern District of Illinois, or if such court lacks jurisdiction, the Circuit Court (or its successor) in and for Cook County, Illinois, shall be the venue and exclusive proper forum
in which to adjudicate any such proceeding, and the Parties further agree that, in the event of any such litigation they will not contest or challenge the jurisdiction or venue of these courts. 
 16. WAIVER OF SERVICE. Executive agrees to waive formal service of process under any applicable federal or state rules of procedure.
Service of process shall be effective when given in the manner provided for notices hereunder. 
 17. GOVERNING LAW. This
Agreement shall be governed by and construed in accordance with the laws of the State of Illinois without regard to its principles of conflicts of law or choice of law under which the law of any other jurisdiction would apply. 
 18. WAIVER OF BREACH. Waiver by TCGI, the Bank or Executive of the breach of any provision of this Agreement shall not operate or be
construed as a waiver of any subsequent breach by any Party. The failure to enforce at any time or for any period of time one or more of the terms or conditions of this Agreement shall not constitute a waiver of any such terms or conditions or the
right of TCGI, the Bank or Executive to enforce each and every term of this Agreement. 
 19. WAIVER OF JURY TRIAL. TO THE
EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE RELATIONSHIP CONTEMPLATED HEREBY. 
 20. REGULATORY SUSPENSION AND TERMINATION. If Executive is suspended from office and/or temporarily prohibited from participating in the
conduct of TCGI’s or the Bank’s affairs by a notice served under Section 8(e)(3) (12 U.S.C. § 1818(e)(3)) or 8(g) (12 U.S.C. § 1818(g)) of the Federal Deposit Insurance Act, as amended, TCGI’s or the Bank’s
obligations under this Agreement shall be suspended as of the date of 

  

 18 

 
service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed, then TCGI shall: (i) pay Executive all of the
compensation withheld while obligations were suspended, and (ii) reinstate any of the obligations, which were suspended. If Executive is removed and/or permanently prohibited from participating in the conduct of TCGI’s or the Bank’s
affairs by an order issued under Section 8(e) (12 U.S.C. § 1818(e)) or 8(g) (12 U.S.C. § 1818(g)) of the Federal Deposit Insurance Act, as amended, all obligations of TCGI and the Bank under this Agreement shall terminate as of the
effective date of the order, but vested rights of the Parties shall not be affected. If TCGI or the Bank is in default as defined in Section 3(x) (12 U.S.C. § 1813(x)(1)) of the Federal Deposit Insurance Act, as amended, all obligations of
TCGI or the Bank under this Agreement shall terminate as of the date of default, but this sentence shall not affect any vested rights of the Parties. All obligations of TCGI and the Bank under this Agreement shall be terminated, except to the extent
determined that continuation of the Agreement is necessary for the continued operation of the institution by the Federal Deposit Insurance Corporation (the “FDIC”), at the time the FDIC enters into an agreement to provide assistance to or
on behalf of TCGI or the Bank under the authority contained in Section 13(c) (12 U.S.C. § 1823(c)) of the Federal Deposit Insurance Act, as amended, or when TCGI or the Bank is determined by the FDIC to be in an unsafe or unsound
condition. Any rights of the Parties that have already vested, however, shall not be affected by such action. Any payments made to Executive pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with
Section 18(k) (12 U.S.C. § 1828(k)) of the Federal Deposit Insurance Act, as amended, and any regulations promulgated thereunder. 
 21. ENTIRE AGREEMENT; AMENDMENT. Except with respect to the indemnification agreement contemplated by Section 7, and that certain memorandum from TCGI and the Bank dated June 15, 2005 to Executive re: Salary
Continuation Following Death (“Salary Continuation Benefit”), this Agreement contains the entire agreement of the Parties, supersedes all prior agreements, understandings, representations or discussions among the Parties, and may be
amended or modified only by an agreement in writing signed by the Parties. Executive acknowledges that in executing this Agreement he is not relying on any oral or written representation by anyone connected with TCGI and/or the Bank that is not set
forth in this Agreement. 
 22. MISCELLANEOUS. 
 22.1 Set-off. To the extent permitted by law, and to the extent that such action will not result in the imposition of
additional taxes, interest, or penalties under Code Section 409A, the Bank or TCGI may credit any amount owing to them from Executive against any payment(s) that might otherwise be due to Executive from TCGI or the Bank. 
 22.2 Notices. Any communication required or permitted hereunder must be in writing to be effective and shall be deemed
delivered and received (i) if personally delivered, (ii) if delivered by mail (whether actually received or not), at the close of business on the third business day next following the day when placed in the U.S. mail, postage prepaid,
certified or registered mail, return receipt requested, addressed as set forth below, or (iii) on the first business day after proper and timely deposit for next day delivery, freight prepaid, with a nationally recognized delivery service
providing next-day service to the location of the recipient, to such Party at the address set forth below: 
  

			
	If to TCGI or the Bank:	 	Taylor Capital Group, Inc.
		 	9550 W. Higgins Road
		 	Rosemont, IL 60018
		 	Attention: GSVP - Human Capital

  

 19 

			
		
	With a Copy to:	 	Jeffrey Patt
		 	Katten Muchin Rosenman LLP
		 	525 W. Monroe Street
		 	Chicago, Illinois 60661-3693
		
	If to Executive:	 	Bruce Taylor
		 	To such address as reflected on TCGI’s books and records as of the date of such notice; provided, that if Executive has previously provided written notice to TCGI of a new address for
notice hereunder, then to such address.
		
	With a Copy to:	 	Stanley Meadows
		 	McDermott Will & Emery LLP
		 	 227 W. Monroe Street
 Chicago, IL
60606-5096

 (or to such other address as any Party shall specify by written notice so given). 
 22.3 Headings. All headings contained in this Agreement are inserted herein for convenience of reference only and shall not
be considered in the construction of any provision hereof. 
 22.4 Gender and Number. Whenever in this Agreement
the masculine, feminine or neuter gender is used, such usage shall be deemed to include all other genders as well, and singular usage shall include plural usage, and vice versa, all as the context shall require. 
 22.5 Benefits and Assignability. This Agreement shall inure to the benefit of and be binding upon the Parties and their
successors and assigns; provided, however, (i) the duties, rights, or obligations of Executive under this Agreement are personal to him and may not be assigned by him, and (ii) Executive’s right to receive payments under this
Agreement may not be assigned without the prior written consent of TCGI and the Bank, which consent may be withheld in the sole discretion of TCGI or the Bank, as applicable. TCGI and the Bank shall be free to assign the Agreement to any party
without the consent of Executive or any of his administrators, heirs, successors or assigns. 
 22.6 Voluntary
Agreement. Executive represents and agrees that he fully understands his right to discuss all aspects of this Agreement with his private attorney, that to the extent he desired, he availed himself of this right, that he has carefully read
and fully understands all of the provisions of the Agreement, that he is competent to execute this Agreement, that his decision to execute this Agreement has not been 

  

 20 

 
obtained by any duress and that he freely and voluntarily enters into this Agreement, and that he read this document in its entirety and fully understands
the meaning, intent and consequences of this Agreement. 
 22.7 Interpretation. This Agreement shall be
interpreted without regard to any presumption or rule requiring construction against the Party causing the Agreement to be drafted as the Parties have had an opportunity to provide input in the drafting of this Agreement. 
 22.8 Survivability. The Parties acknowledge and agree that the provisions of this Agreement are intended to and shall
survive indefinitely or as provided in accordance with the applicable provisions, and that the termination of the Term hereof shall only terminate those provisions expressly to be performed solely during the Term. 
 22.9 Severability. The covenants and agreements contained herein are separate and severable and the invalidity or
unenforceability of any one or more of such covenants or agreements shall not affect the validity or enforceability of any other covenant or agreement contained herein. In addition, if, in any judicial proceeding, a court shall refuse to enforce one
or more of the covenants or agreements contained herein because the duration thereof is too long, or the scope thereof is too broad, it is expressly agreed among the Parties that such duration or scope shall be deemed reduced to the extent necessary
to permit the enforcement of such covenants or agreements. 
 22.10 Beneficiary. If any amounts due hereunder
become payable after the death of Executive, TCGI or the Bank, as applicable, shall pay such amounts to a legal beneficiary designated in writing by Executive. If Executive files no beneficiary designation or if no beneficiary designated survives
Executive, TCGI or the Bank, as applicable, shall pay such amounts as determined under any controlling benefit plan document or, if none, (i) to the surviving spouse, if any, (ii) to the descendants of Executive, per stirpes, if no
spouse survives, or (iii) to the estate of Executive if no spouse or descendants survive Executive. 
 22.11 Code
Section 409A Compliance. It is the intent of the Parties to comply with all provisions of Code Section 409A so that Executive shall not be required to include in his gross income for federal income tax purposes, prior to the actual
receipt thereof, any amounts received that may otherwise be considered to be deferred payments. In the event that the interpretation or requirements of Code Section 409A change during the period of Executive’s employment with TCGI or the
Bank, the Parties will amend this Agreement, only as necessary, to comply with any such change, if and to the extent such an amendment would be permitted by Code Section 409A. Notwithstanding any provision herein to the contrary, nothing in
this Agreement shall require TCGI or the Bank to pay any tax, penalty or interest assessed against Executive or otherwise required to be paid by Executive for any Code Section 409A failures or non-compliance with Code Section 409A.

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

 21 

 THE EXECUTIVE ACKNOWLEDGES THAT HE HAS READ ALL OF THE TERMS OF THIS AGREEMENT, UNDERSTANDS THE AGREEMENT, AND AGREES TO
ABIDE BY ITS TERMS AND CONDITIONS. 
 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above
written. 
  

									
	EXECUTIVE	  		 	TAYLOR CAPITAL GROUP, INC.
				
	 /s/ Bruce Taylor
	  		 	By:	 	 /s/ Mark A. Hoppe

	Bruce Taylor	  		 		 	
				
	COLE TAYLOR BANK	  		 		 	
					
	By:	 	 /s/ Mark A. Hoppe
	  		 		 	

  

 22 

 Exhibit A 
 SEPARATION AGREEMENT AND GENERAL RELEASE 
 This Separation Agreement and General Release (this
“Agreement”) is made between Taylor Capital Group, Inc. (“TCGI”) and Cole Taylor Bank (the “Bank”) (collectively, the “Company”), on the one hand, and Bruce Taylor
(“Executive”), on the other. 
 WHEREAS, on [date], 2008, Executive and the Company entered into an Employment
Agreement (the “Employment Agreement”) for Executive to serve as Chairman of the Bank and Chairman and Chief Executive Officer of TCGI; and 
 WHEREAS, effective [date] (the “Separation Date”), Executive’s employment with TCGI will terminate and he will cease to hold the Chairman positions with the Bank and TCGI and the Chief
Executive Officer position with TCGI; and 
 WHEREAS, Executive and the Company wish to fully resolve any and all past, present or future
disputes relating to Executive’s employment or engagement with, or termination from, the Bank and TCGI, and to set forth terms and conditions relating to the termination of Executive’s positions. 
 NOW, THEREFORE, in consideration of the releases, representations, and obligations stated below, Executive, on the one hand, and TCGI and the Bank, on
the other, agree as follows: 
 1. Separation from Employment. Executive’s employment with Company will terminate effective
                         (the “Separation Date”). The Company will provide Executive with
Executive’s regular base pay and accrued but unused vacation pay through the Separation Date, as well as any vested 401(k) benefits. Executive acknowledges that with such payments, Executive will have received all compensation and benefits
(including leave time) due to Executive in connection with Executive’s employment, and Executive is not entitled to any additional benefits except as specifically provided below. 
 2. Consideration of Company. In consideration for the releases and covenants by Executive in this Agreement (provided that Executive abides by and
does not revoke any part of this Agreement), the Company will provide Executive with the following severance benefits: [insert description of benefits to be paid as set forth in the Employment Agreement] 
 3. Executive Release of Rights and Agreement Not to Sue. Executive (defined for the purpose of this Paragraph 3 as Executive and Executive’s
agents, representatives, attorneys, assigns, heirs, executors, and administrators) fully and unconditionally releases the Released Parties (defined as TCGI, the Bank, and any of their past or present employees, agents, insurers, attorneys,
administrators, officials, directors, shareholders, divisions, parents, subsidiaries, predecessors, successors, affiliates, employee benefit plans, and the sponsors, fiduciaries, or administrators of the Company’s employee benefit plans) from,
and agrees not to bring any action, proceeding or suit against any of the Released Parties regarding, any and all known and/or unknown claims and/or causes of action, liabilities, damages, fees, and/or remuneration of any sort, arising or that may
have arisen out of or in connection with Executive’s employment with or termination of employment from or retention by the Company, including but not limited to claims or causes of action for: 
 (a) violation of any written or unwritten contract, agreement, understanding, policy, benefit, retirement or pension plan, severance plan, or covenant of
any kind, or failure to pay wages, bonuses, employee benefits, other compensation, attorneys’ fees, damages, or any other remuneration; 

 (b) discrimination or retaliation on the basis of any characteristic or trait protected under law
(including but not limited to race, color, national origin, sex, sexual orientation, religion, disability, marital or parental status, age, union activity or other protected activity), or other denial of protection or benefits under any statute,
ordinance, executive order or regulation (including but not limited to claims under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Civil Rights Act of 1866, the Age Discrimination in Employment Act, the Americans with
Disabilities Act, the Fair Labor Standards Act, the Family and Medical Leave Act, the Workers’ Adjustment and Retraining Notification, the Employee Retirement Income Security Act of 1974, the Illinois Wage Payment and Collection Act, and the
Illinois Human Rights Act, or any other federal, state or local statute, ordinance, or regulation regarding employment, termination of employment, or discrimination in employment); and/or 
 (c) violation of any public policy or common law of any state relating to employment or personal injury (including but not limited to claims for wrongful
discharge, defamation, invasion of privacy, infliction of emotional distress, negligence, interference with contract). 
 Executive further waives any right
to recovery in a proceeding instituted on Executive’s behalf by an administrative agency or other entity regarding Executive’s retention or employment with, or separation from, the Company; provided, however, that Executive is not
releasing any claims related to (i) the breach of this Agreement; (ii) any vested right in any employee benefit plan in which Executive was participating as of the Separation Date; (iii) coverage under the Company’s
directors’ and officers’ liability insurance policy pursuant to the terms and conditions of such policy; (iv) any right to indemnification; (v) worker’s compensation benefits; (vi) the rights to health care continuation
coverage pursuant to COBRA; (vii) unemployment insurance benefits; and (viii) any claim that may not be released as a matter of law. Executive affirms that, as of the date of signing this Agreement, no action or proceeding covered by this
Paragraph 3 is pending against any of the Released Parties. 
 4. Acknowledgement of Continuing Obligations. Notwithstanding this
Agreement and the termination of Executive’s positions with the Company, the parties acknowledge and agree that those provisions of the Employment Agreement intended to survive Executive’s separation or termination of the Term of the
Employment Agreement shall so survive, and that the parties remain bound by provisions of the Employment Agreement including but not limited to Sections 10 through 16 and 20. Executive represents that, no later than the date on which he
tenders this Agreement to the Company, he will have fully complied with his obligations set forth in Section 8 of the Employment Agreement. 
  

 2 

 5. Non-admission/Inadmissibility. This Agreement does not constitute an admission by the Company
that any action it took with respect to Executive was wrongful, unlawful or in violation of any local, state, or federal statute or regulation, or susceptible of inflicting any damages or injury on Executive, and the Company specifically denies any
such wrongdoing or violation. This Agreement is entered into solely to resolve fully all matters relating to or arising out of Executive’s employment with and termination from the Company, and neither the Agreement nor information regarding its
execution or implementation may be admitted or used as evidence in a subsequent proceeding of any kind, except one alleging a breach of this Agreement or any other matter excluded from the releases. 
 6. Governing Law and Jurisdiction. This Agreement shall be governed by and construed in accordance with laws and judicial decisions of the State
of Illinois, without regard to its principles of conflicts of law. Any suit, action, or other proceeding arising out of this Agreement shall be subject to the exclusive jurisdiction of the federal or state courts located in Cook County, Illinois.

 7. Entire Agreement. This Agreement represents the entire agreement and understanding concerning the matters addressed herein and
Executive’s separation from the Company. With the exception of those provisions of the Employment Agreement intended to survive Executive’s separation from employment or termination of the Term of the Employment Agreement, this Agreement
supersedes and replaces any and all prior agreements, understandings, discussions, negotiations, or proposals concerning Executive’s termination of employment with the Company. 
 8. Waiver. No provision of this Agreement may be waived except by a writing executed and delivered by the party against whom waiver is sought. Any
such written waiver shall be effective only with respect to the event or circumstance described therein and not with respect to any other event or circumstance, unless such waiver expressly provides to the contrary. 
 9. Revocation Period. Executive has the right to revoke this Agreement for up to seven days after Executive signs it. In order to
revoke this Agreement, Executive must sign and send a written notice of the decision to do so, following the notice provisions set forth in Section 22.2 of the Employment Agreement, and that written notice must be received by the Company no
later than the eighth day after Executive signed this Agreement. If Executive revokes this Agreement, Executive will not be entitled to any of the consideration from the Company described in Paragraph 2 of this Agreement, and all such consideration
shall be forfeited. 
 10. Voluntary Execution of Agreement. Executive acknowledges that: (i) Executive has
carefully read this Agreement and fully understands its meaning; (ii) Executive had the opportunity to take up to 21 days after receiving this Agreement to decide whether to sign it; (iii) Executive understands that the Company is herein
advising him, in writing, to consult with an attorney before signing it; and (iv) Executive is signing this Agreement knowingly, voluntarily, and without any coercion or duress, and everything Executive is receiving for signing this Agreement
is described in the Agreement itself, and no other promises or representations have been made to cause Executive to sign this Agreement. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but which
together shall constitute one and the same instrument. 
  

 3 

 [Signature Page Follows] 
  

 4 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date(s) written below.

  

									
	BRUCE TAYLOR	 		 	TAYLOR CAPITAL GROUP, INC.
				
	  
	 		 	By:	 	  

					
		 		 		 	Title:	 	  

					
	Dated:	 	  
	 		 	Dated:	 	  

				
		 		 		 	COLE TAYLOR BANK
					
		 		 		 	By:	 	  

					
		 		 		 	Title:	 	  

					
		 		 		 	Dated:	 	  

  

 5

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