Document:

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                                                                   Exhibit 4.10

                                  FORM OF

                    AGREEMENT AS TO EXPENSES AND LIABILITIES

         AGREEMENT AS TO EXPENSES AND LIABILITIES (this "Agreement") dated as of
_____________, 200__, between TAYLOR CAPITAL GROUP, INC., a Delaware corporation
(the "Company"), and TAYC CAPITAL TRUST I, a Delaware business trust (the
"Trust").

                                    RECITALS

         WHEREAS, the Trust intends to issue its common securities (the "Common
Securities") to, and receive ____% Junior Subordinated Debentures (the
"Debentures") from, the Company and to issue and distribute to the public TAYC
Capital Trust I ___% Cumulative Trust Preferred Securities (the "Preferred
Securities") with such powers, preferences and special rights and restrictions
as are set forth in the Amended and Restated Trust Agreement of the Trust dated
as of ____________, 2002, as the same may be amended from time to time (the
"Trust Agreement");

         WHEREAS, the Company shall directly or indirectly own all of the Common
Securities of the Trust and shall issue the Debentures;

         NOW, THEREFORE, in consideration of the acceptance by each holder of
the Preferred Securities in partial settlement of the Released Claims (as
defined in the Trust Agreement), which acceptance the Company hereby agrees
shall benefit the Company and which purchase the Company acknowledges shall be
made in reliance upon the execution and delivery of this Agreement, the Company,
including in its capacity as holder of the Common Securities, and the Trust
hereby agree as follows:

                                    ARTICLE I

         Section 1.1 Guarantee by the Company.

         Subject to the terms and conditions hereof, the Company, including in
its capacity as holder of the Common Securities, hereby irrevocably and
unconditionally guarantees to each person or entity to whom the Trust is now or
hereafter becomes indebted or liable (the "Beneficiaries") the full payment when
and as due, of any and all Obligations (as hereinafter defined) to such
Beneficiaries. As used herein, "Obligations" means any costs, expenses or
liabilities of the Trust other than obligations of the Trust to pay to holders
of any Preferred Securities or other similar interests in the Trust the amounts
due such holders pursuant to the terms of the Preferred Securities or such other
similar interests, as the case may be. This Agreement is intended to be for the
benefit of, and to be enforceable by, all such Beneficiaries, whether or not
such Beneficiaries have received notice hereof.

         Section 1.2 Term of Agreement.

         This Agreement shall terminate and be of no further force and effect
upon the later of (a) the date on which full payment has been made of all
amounts payable to all holders of all the

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Preferred Securities (whether upon redemption, liquidation, exchange or
otherwise); and (b) the date on which there are no Beneficiaries remaining;
provided, however, that this Agreement shall continue to be effective or shall
be reinstated, as the case may be, if at any time any holder of Preferred
Securities or any Beneficiary must restore payment of any sums paid under the
Preferred Securities, under any obligation, under the Preferred Securities
Guarantee Agreement dated the date hereof by the Company and
____________________ as guarantee trustee or under this Agreement for any reason
whatsoever. This Agreement is continuing, irrevocable, unconditional and
absolute.

         Section 1.3 Waiver of Notice.

         The Company hereby waives notice of acceptance of this Agreement and of
any obligation to which it applies or may apply, and the Company hereby waives
presentment, demand for payment, protest, notice of nonpayment, notice of
dishonor, notice of redemption and all other notices and demands.

         Section 1.4 No Impairment.

         The obligations, covenants, agreements and duties of the Company under
this Agreement shall in no way be affected or impaired by reason of the
happening from time to time of any of the following:

         (a) the extension of time for the payment by the Trust of all or any
portion of the Obligations or for the performance of any other obligation under,
arising out of, or in connection with, the Obligations;

         (b) any failure, omission, delay or lack of diligence on the part of
the Beneficiaries to enforce, assert or exercise any right, privilege, power or
remedy conferred on the Beneficiaries with respect to the Obligations or any
action on the part of the Trust granting indulgence or extension of any kind; or

         (c) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement composition or readjustment of debt of,
or other similar proceedings affecting, the Trust or any of the assets of the
Trust.

         There shall be no obligation of the Beneficiaries to give notice to, or
obtain the consent of, the Company with respect to the happening of any of the
foregoing.

         Section 1.5 Enforcement.

         A Beneficiary may enforce this Agreement directly against the Company,
and the Company waives any right or remedy to require that any action be brought
against the Trust or any other person or entity before proceeding against the
Company.

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                                   ARTICLE II

         Section 2.1 Binding Effect.

         All guarantees and agreements contained in this Agreement shall bind
the successors, assigns, receivers, trustees and representatives of the Company
and shall inure to the benefit of the Beneficiaries.

         Section 2.2 Amendment.

         So long as there remains any Beneficiary or any Preferred Securities of
any series are outstanding, this Agreement shall not be modified or amended in
any manner adverse to such Beneficiary or to any of the holders of the Preferred
Securities.

         Section 2.3 Notices.

         Any notice, request or other communication required or permitted to be
given hereunder shall be given in writing by delivering the same by facsimile
transmission (confirmed by mail), telex, or by registered or certified mail,
addressed as follows (and if so given, shall be deemed given when mailed or upon
receipt of an answer back, if sent by facsimile):

         TAYC Capital Trust I
         c/o Taylor Capital Group, Inc.
         350 East Dundee Road, Suite 300
         Wheeling, Illinois 60090
         Facsimile No.:  (847) 537-7627
         Attention:  ________________, Administrative Trustee

         Taylor Capital Group, Inc.
         350 East Dundee Road, Suite 300
         Wheeling, Illinois 60090
         Facsimile No.:  (847) 537-7627
         Attention:  J. Christopher Alstrin, Chief Financial Officer

         Section 2.4 This agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of Illinois (without regard
to conflict of laws principles).

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         THIS AGREEMENT is executed as of the day and year first above written.

                                     TAYLOR CAPITAL GROUP, INC.

                                     By: _____________________________________
                                         Name:  ______________________________
                                         Title: ______________________________

                                     TAYC CAPITAL TRUST I

                                     By: _____________________________________
                                         Name:  ______________________________
                                         Title: Administrative Trustee

                                       4<PAGE>
                                                                   EXHIBIT 10.46

                             FOURTH AMENDMENT TO THE
                 AMENDED AND RESTATED STIPULATION OF SETTLEMENT

         This Fourth Amendment to the Amended and Restated Stipulation of
Settlement (this "AMENDMENT") is made as of May 24, 2002, by and between the
Taylor Defendants (as defined in the Stipulation of Settlement described below)
and the Estate Parties (as defined in the Stipulation of Settlement described
below).

                                    RECITALS

         WHEREAS, the parties hereto have entered into that certain Stipulation
of Settlement, as amended and restated as of October 10, 2001 (the "First
Amendment and Restatement") and further amended as of March 15, 2002 and May 10,
2002 (collectively, the "STIPULATION OF SETTLEMENT"); all capitalized terms used
but not defined herein shall have the meaning set forth for such terms in the
Stipulation of Settlement;

         WHEREAS, the Stipulation of Settlement contemplates, among other
things, that, on the Stipulation Effective Date, the Taylor Defendants shall
cause to be delivered to the Estate Representative: (i) the Trust Preferred
Securities and (ii) a number of shares of TCG Common Stock representing 15% of
the issued and outstanding TCG Common Stock (excluding treasury stock) as of
their date of issuance and immediately after giving effect to their issuance
(the "TCG COMMON SHARES" and, together with the Trust Preferred Securities, the
"SETTLEMENT STOCK"); and

         WHEREAS, the parties have agreed to amend the Stipulation of Settlement
to allow Taylor Capital Group the opportunity to explore an initial public
offering of securities on the terms described below, in contemplation of a
portion of the proceeds thereof being used to pay a cash amount to the Estate
Representative in lieu of delivery of the Settlement Stock.

         NOW, THEREFORE, in consideration of the above premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

         1.       FILING OF REGISTRATION STATEMENT.

                  (a) On or before May 31, 2002, the Taylor Defendants shall
cause Taylor Capital Group to file with the SEC a registration statement on Form
S-1 (the "S-1"), to register at least the following securities (the "REGISTERED
SECURITIES") in contemplation of an underwritten public offering (the "IPO")
pursuant to a firm commitment from one or more underwriters (the
"UNDERWRITERS"):

                      (i) the Trust will register in the S-1 no less than
         1,380,000 shares of Trust Preferred Securities at a price of $25.00 per
         share bearing substantially the same rights, preferences and terms as
         the Trust Preferred Securities described in the Stipulation of
         Settlement except as described in Section 1(b) below;
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                      (ii) Taylor Capital Group will register in the S-1 no less
         than 1,200,000 shares of TCG Common Stock (the "PRIMARY SHARES"), which
         will include the TCG Common Shares contemplated by the Stipulation of
         Settlement;

                      (iii) existing stockholders of Taylor Capital Group (the
         "SELLING STOCKHOLDERS") will register in the S-1 no less than 200,000
         shares of TCG Common Stock;

                      (iv) the Trust may register in the S-1 up to an additional
         number of trust preferred securities equal to 15% of the securities
         described in clause (i) above to cover any over-allotment options to be
         granted to the Underwriters; and

                      (v) Taylor Capital Group and/or the Selling Stockholders
         will register in the S-1 up to an additional number of shares of TCG
         Common Stock equal to 15% of the securities described in clauses (ii)
         and (iii) above (the "OVER-ALLOTMENT SHARES").

The number of shares of TCG Common Stock described in this Section 1(a) and the
Base Price described below in Section 2(c) are subject to equitable adjustment
for any stock split, stock dividend, recapitalization or other such transaction
prior to the consummation of the IPO. The parties further agree that the number
of TCG Common Shares required by Section IV.5.3(A) of the Stipulation of
Settlement shall be determined without regard to any additional Primary Shares
or Over-Allotment Shares offered by Taylor Capital Group. Accordingly, it is
assumed for purposes of this Amendment that 5,358,218 shares of TCG Common Stock
shall be issued and outstanding on a pro forma basis at the closing of the IPO
(determined by adding (i) the 4,554,486 issued and outstanding shares of TCG
Common Stock on the date hereof and (ii) the 803,732 TCG Issued Shares to be
issued in satisfaction of Section IV.5.3(A) of the Stipulation of Settlement).
Said 803,732 TCG Issued Shares are hereinafter referred to as the "SETTLEMENT
COMMON SHARES".

                  (b) In connection only with the contemplated sale of Trust
Preferred Securities in the IPO, Taylor Capital Group may, in its sole
discretion, lower the coupon rate on the Debentures and the Trust Preferred
Securities to such rate as shall permit the Trust Preferred Securities offered
to be priced at $25.00 per share, provided that, as a condition to any such
adjustment to the coupon rate on the Debentures and the Trust Preferred
Securities (a "RATE ADJUSTMENT"), Taylor Capital Group shall agree to not
exercise its right to redeem the Debentures at any time prior to the fifth
anniversary of the completion of the IPO unless:

                      (i) there is a change in existing laws or regulations, or
         new official administrative or judicial interpretation or application
         of these laws and regulations, that causes the interest that Taylor
         Capital Group pays on the Debentures to no longer be deductible by
         Taylor Capital Group for federal tax purposes; or the Trust becomes
         subject to federal income tax; or the Trust becomes or will become
         subject to other taxes or governmental charges,

                      (ii) there is a change in existing laws or regulations
         that requires the Trust to register as an investment company under the
         Investment Company Act of 1940, or

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                      (iii) there is a change in the capital adequacy guidelines
         of the Federal Reserve that results in the Trust Preferred Securities
         not being counted as Tier 1 capital.

                  (c) Taylor Capital Group shall have the sole and exclusive
right to select the Underwriters. It is currently anticipated that Keefe,
Bruyette & Woods, Inc. will be the lead managing underwriter. If at any time
prior to consummation of the IPO, Taylor Capital Group elects to change the lead
managing underwriter, Taylor Capital Group will promptly advise the Estate
Representative of such election and will apprise the Estate Representative of
the nationally recognized investment banks that it is considering as a
replacement.

         2.       SATISFACTION OF CERTAIN CONDITIONS PRECEDENT TO EFFECTIVENESS
OF AGREEMENTS.

                  (a) For purposes of Section IV.6.1(A)(2) of the Stipulation of
Settlement only, the Class Settlement Effective Date shall be deemed to have
occurred following closing of the IPO and at the precise moment that the
Settlement Proceeds contemplated by Section 2(c) hereof shall have been
deposited in a bank account designated by the Estate Representative.

                  (b) Upon the closing of the IPO, the conditions precedent to
the Stipulation Effective Date set forth in Section IV.6.1(B) and (D) of the
Stipulation of Settlement shall be deemed waived by the Estate Representative,
and the conditions set forth in Sections IV.4.1 through IV.4.3 of the
Stipulation of Settlement shall be deemed satisfied by Taylor Capital Group,
each without any further action by any party.

                  (c) The Stipulation Effective Date shall be deemed to have
occurred when (I) all conditions precedent to effectiveness of the Stipulation
of Settlement contained in Section IV.6.1 thereof shall have been satisfied or
deemed to have been satisfied, (II) the IPO shall have closed, and (III) all
Settlement Proceeds (as hereinafter defined) shall have been delivered by wire
transfer to a bank account designated by the Estate Representative. For purposes
of this Amendment, "Settlement Proceeds" shall mean the following sums delivered
to the Estate Representative in full satisfaction of the obligations of the
Taylor Defendants and Taylor Capital Group pursuant to Sections IV.5.1, IV.5.2
and IV.5.3 of the Stipulation of Settlement: (i) $65,000,000, plus (ii) the
amount, if any, by which the offering price per share of TCG Common Stock to the
public in the IPO exceeds $25.00 (the "BASE PRICE") multiplied by the number of
Settlement Common Shares, minus (iii) the sum of $3,100,000 plus 7% of the
amount, if any, obtained in subclause (ii) hereof, all as reimbursement to
Taylor Capital Group of a portion of the registration expenses, including
underwriting commissions, on the sale of the Trust Preferred Securities and the
Settlement Common Shares.

                  (d) On the first business day following the closing of the IPO
and satisfaction (or deemed satisfaction) of all other conditions precedent to
effectiveness set forth in Section IV.6.1 of the Stipulation of Settlement,
Taylor Capital Group shall cause the Settlement Proceeds to be delivered to the
Estate Representative in the manner contemplated herein; provided, however, that
if all of the conditions precedent to effectiveness of the Stipulation of
Settlement shall have been satisfied as of the closing date of the IPO, Taylor
Capital Group shall take commercially reasonable steps to direct the
Underwriters to cause the Settlement Proceeds to be delivered directly by them
to a bank account designated by the Estate Representative (it being understood,
however, that any payment of the Settlement Proceeds to said bank account from
any source shall satisfy Taylor Capital Group's payment obligations hereunder).

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         3.       EFFECT OF FAILURE TO CLOSE THE IPO BY SEPTEMBER 30, 2002. If
Taylor Capital Group has not completed the sale of the Registered Securities
pursuant to the IPO on or before September 30, 2002, Taylor Capital Group may
withdraw the S-1, at which time the terms and conditions of the First Amendment
and Restatement, as modified by Paragraphs 3 through 5 hereof, shall become
fully operative without regard to the provisions of Paragraph 2 hereof. On the
Stipulation Effective Date, as defined in Section IV.1.56 of the Stipulation of
Settlement, the Estate Representative shall reimburse $500,000 to Taylor Capital
Group with respect to a portion of the registration expenses, which amount may
be offset by Taylor Capital Group against the cash payment otherwise payable on
the Stipulation Effective Date pursuant to Section IV.5.1 of the Stipulation of
Settlement.

         4.       EXTENSION OF TERMINATION DATE. Pursuant to the Stipulation of
Settlement, the Estate Representative or the Taylor Defendants have the right to
terminate the Stipulation of Settlement if certain conditions have not been
satisfied or waived on or before May 31, 2002 (the "TERMINATION DATE"). In
consideration of the terms and conditions set forth in this Amendment, the
parties hereto agree that the Termination Date shall be December 31, 2002.

         5.       MISCELLANEOUS.

                  (a) Remedies. Each of the parties to this Amendment will be
entitled to enforce its rights under this Amendment specifically, to recover
damages by reason of any breach of any provision of this Amendment and to
exercise all other rights existing in its favor. The parties hereto agree and
acknowledge that money damages may not be an adequate remedy for any breach of
the provisions of this Amendment and that any party hereto shall be entitled to
immediate injunctive relief or specific performance without bond or the
necessity of showing actual monetary damages in order to enforce or prevent any
violations of the provisions of this Amendment.

                  (b) Final Agreement. This Amendment, together with the
Stipulation of Settlement and all other agreements entered into by the parties
hereto pursuant to the Stipulation of Settlement, constitutes the complete and
final agreement of the parties concerning the matters referred to herein, and
supersedes all prior agreements and understandings in respect of the matters
expressly set forth herein; provided, however, that except as amended herein,
the terms and covenants of the Stipulation of Settlement remain in full force
and effect.

                  (c) Counterparts. This Amendment may be executed in one or
more counterparts. All executed counterparts and each of them shall be deemed to
be one and the same instrument. Counsel for the parties shall exchange among
themselves signed counterparts of this Amendment. Signatures delivered by
facsimile transmission shall be effective upon receipt and have the same weight
and effect as an executed original.

           IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed by their duly authorized counsel on the date first set forth above.

                           [EXECUTION PAGES TO FOLLOW]

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                             COUNSEL FOR THE ESTATE REPRESENTATIVE

                             ROBERT F. COLEMAN & ASSOCIATES

                             By:      /s/ Robert F. Coleman
                                      -----------------------------------------

                                      Robert F. Coleman

                                      Robert F. Coleman
                                      Steven R. Jakubowski
                                      77 West Wacker Drive, Suite 4800
                                      Chicago, Illinois  60601
                                      Telephone:  (312) 444-1000
                                      Facsimile:  (312) 444-1028

                                      Estate Representative's Lead Counsel and
                                      Chairman of Estate Representative's
                                      Executive Committee

                             COUNSEL FOR THE TAYLOR DEFENDANTS

                             MCDERMOTT, WILL & EMERY

                             By:      /s/ Steven P. Handler
                                      -----------------------------------------
                                      Steven P. Handler

                                      Steven P. Handler
                                      Steven H. Hoeft
                                      David S. Rosenbloom
                                      MCDERMOTT, WILL & EMERY
                                      227 West Monroe Street
                                      Chicago, Illinois  60606
                                      Telephone:  (312) 372-2000
                                      Facsimile: (312) 984-7700

                                      Counsel for the Taylor Defendants

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