Document:

exv10w19

 

EXHIBIT 10.19

FORM OF PRIVATEBANCORP, INC.

INDUCEMENT PERFORMANCE SHARE AWARD AGREEMENT

     As an inducement to the undersigned Grantee (“Grantee”) to accept an offer of
employment with the Company, this Inducement Performance Share Award Agreement
(“Agreement”) is entered into as of the date set forth on the signature page hereof by and
between PrivateBancorp, Inc., a Delaware corporation (the “Company”), and the Grantee.
Except as otherwise indicated or defined herein, all words with initial capitals shall have the
same meaning as ascribed to them in the PrivateBancorp, Inc. Strategic Long-Term Incentive
Compensation Plan (the “Plan”). Grantee acknowledges receipt of a copy of the Plan.

     WHEREAS, the Company desires to grant to Grantee a certain number of shares of Common Stock,
subject to the restrictions, and on the terms and conditions, set forth in the Plan and this
Agreement;

     NOW, THEREFORE, the parties hereto agree as follows:

     1. Grant of Award; Form of Award.

          (a) Upon the execution and delivery of this Agreement and the related Performance Share Award
Certificate of even date herewith attached hereto (the “Performance Share Award
Certificate”), and subject to the terms and conditions of the Plan (the terms and provisions of
which are incorporated herein and expressly made a part hereof), the Company hereby grants to
Grantee the aggregate number of shares of Common Stock of the Company set forth on the Performance
Share Award Certificate issued in connection with this award (“Performance Shares”),
subject to the restrictions and on the terms and conditions set forth herein, the Performance Share
Award Certificate and in the Plan (the “Award”) and subject to any adjustment as provided
in the Performance Share Award Certificate and the Plan. As soon as practicable after Grantee has
executed this Agreement and the documents described in Section 1(b) below, and delivered the same
to the Company, the Company shall cause to be issued in Grantee’s name a stock certificate
representing the total number of shares of Common Stock covered by this Award in accordance with
Section 4, below. In the discretion of the Committee, the Performance Shares awarded to Grantee
hereunder may be non-certificated and, accordingly, issuances and transfers shall be reflected on
the stock ledger books and records of the Company and no certificate of shares of Common Stock in
respect of Grantee’s shares will be issued to Grantee, to the extent not prohibited by applicable
law, the Company’s certificate of incorporation and by-laws, or the rules of any stock exchange.

          (b) Grantee shall indicate acceptance of the terms of the Award by signing and returning a
copy hereof and shall sign and return the irrevocable stock power attached hereto to facilitate the
transfer of some or all of the shares covered by the Award to the Company (or its assignee or
nominee) if required under the terms of this Agreement or applicable laws or regulations.

     2. Restrictions. The Performance Shares granted under this Award shall be subject to
the restrictions set forth in Section 9 of the Plan and a prohibition on the sale, transfer,
assignment, pledge or encumbrance of the Performance Shares, prior to the date on which such
Performance Shares vest upon satisfaction of the Performance Objectives and continuous

 

 

employment requirements set forth in Section 5 hereof and on the Performance Share Award
Certificate. For the purposes of this Award, the period from January 1, 2008 through December 31,
2012 is hereinafter referred to as the “Performance Period.” For all purposes under this
Award, Performance Shares shall be “vested” as to such Performance Shares for which the
Grantee has been continuously employed with the Company or a Subsidiary and the Performance
Objectives (or other conditions) have been satisfied in accordance with Section 5 hereof, and upon
such satisfaction the restrictions on such Performance Shares shall lapse and the Performance
Shares shall become unrestricted. Sale, transfer and other disposition of the Performance Shares
following vesting as to any portion of the Performance Shares awarded hereunder may be limited by
the absence of an established trading market for such shares and/or the provisions of applicable
securities laws. The Performance Shares shall not be vested upon expiration of the Performance
Period as to any shares awarded hereunder if such vesting would constitute a violation of any
applicable federal or state securities or other law or regulation and shall only vest as may be
permitted under such law or regulation upon the termination of such violation.

     3. Voting Rights; Dividends. Grantee shall have the right to vote the shares of
Common Stock covered by this Award. Grantee shall have the right to receive dividends on the
shares of Common Stock covered by this Award unless and until such shares are forfeited pursuant to
Section 5 hereof; provided, any such dividends payable hereunder on unvested Performance Shares
shall be deferred and paid to the Grantee (without interest), only to the extent such Performance
Shares subsequently vest, as soon as practicable after the date of vesting but not later than the
first March 15 following the date of vesting.

     4. Custody and Delivery of Shares. Each certificate representing the shares of Common
Stock covered by this Award that may be issued in the name of Grantee shall bear appropriate
legends regarding this Agreement and such other restrictions on transferability, which are
substantially similar to the legend set forth as follows:

     “The shares represented by this certificate are deemed to be
performance shares subject to transfer restrictions based on
continuous service until December 31, 2012 (which is the fiscal year
ending date that immediately follows the fifth anniversary of the
date the Award was made) and the attainment of certain Performance
Objectives, or other conditions, as applicable to awards of
performance shares pursuant to the PrivateBancorp, Inc. Strategic
Long-Term Incentive Compensation Plan and the Performance Share
Award Agreement covering these shares, copies of which are available
from PrivateBancorp, Inc.”

The Company shall hold any certificate for shares of Common Stock covered by this Award until the
Performance Shares represented hereby vest pursuant to the Performance Share Award Certificate and
Section 5 of this Agreement, and if so certificated shall thereupon, subject to the satisfaction of
any applicable federal, state, local or other tax withholding obligations and applicable securities
laws, deliver the certificate for the unrestricted shares to Grantee, and destroy the stock power
referred to in Section 1(b) relating to the unrestricted shares, or use it to authorize the
withholding of shares for payment of taxes, pursuant to Section 7, below.

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     5. Vesting; Effect of Termination of Employment.

          (a) Except to the extent provided in Section 5(b), (c) or (d) below, the Performance Shares
covered by this Award shall vest to the extent of the attainment of Performance Objectives (or
other conditions) and Grantee’s continuous employment with the Company or a Subsidiary, as set
forth in the Performance Share Award Certificate.

          (b) In the event of the termination of Grantee’s employment with the Company and its
Subsidiaries for any reason prior to the last day of the Performance Period and prior to the
occurrence of a Change of Control, other than due to Grantee’s death, Disability, involuntary
termination of employment by the Company and all Subsidiaries without Cause or voluntary
termination of Grantee’s employment with the Company and all Subsidiaries for Good Reason (as such
terms are defined below), Grantee shall forfeit all of the Performance Shares covered by this Award
which had not become vested on or prior to the date of such termination in accordance with the
terms of the Performance Share Certificate, and Grantee shall have no further rights to said shares
or any amounts attributable thereto.

          (c) In the event of a Termination of Grantee by the Company without Cause, Grantee’s
Resignation for Good Reason or after the Grantee has attained age 62 and has been credited with 10
or more years of service with the Company and its Subsidiaries (including prior service with
LaSalle Bank, N.A. and its affiliates) or Grantee’s death or Disability, prior to the occurrence of
a Change of Control, on the last day of the fiscal year in which such Termination, Resignation,
death or Disability occurs:

          (i) Grantee shall become vested in such number of unvested Performance Shares as is
required for Grantee to be vested (including all Performance Shares that had previously
vested) in the greater of:

               (1) The number of Performance Shares in which Grantee would have been vested
had Grantee’s employment continued until the last day of the fiscal year in which
such employment termination occurs; and

               (2) The number of Performance Shares that equals the product of (x) the total
number of Performance Shares covered by this Award multiplied by (y) 5% multiplied
by (z) the number of whole or partial fiscal years of Grantee’s continuous
employment with the Company or a Subsidiary during the Performance Period; and

          (ii) To the extent that any portion of the Performance Shares became Time-Vesting
Restricted Shares pursuant to Section 3 of the Performance Share Award Certificate prior to
the date of termination, (x) such Time-Vesting Restricted Shares shall not be considered
Performance Shares for purposes of Section (5)(c)(i), and (y) 20% of the total number of
Time-Vesting Restricted Shares shall become immediately vested on the date of employment
termination (in addition to any Time-Vesting Restricted Shares that previously became
vested).

          (iii) In the case of Grantee’s death, any such vested Performance Shares or
Time-Vesting Restricted Shares under this Section 5(c) shall be paid to Grantee’s
beneficiary or beneficiaries designated pursuant to Section 8, below.

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          (d) If a Change of Control occurs during the Performance Period while Grantee has been
continuously employed with the Company or its Subsidiaries, all of the Performance Shares covered
by this Award shall be immediately vested, to the extent not previously vested.

          (e) Definitions. For purposes of this Agreement, the following terms shall have the meaning
defined below:

          (i) “Cause,” in connection with an involuntary termination of Grantee’s
employment, means:

               (1) In the case in which Grantee has entered into an employment agreement
(including, but not limited to, a term sheet agreement) with the Company or a
Subsidiary as in effect on the date hereof, or Grantee otherwise is at any time
participating in a severance plan for executives of the Company or a Subsidiary,
which provides for an involuntary termination of Grantee’s employment for any reason
set forth as constituting “Cause” under such of Grantee’s employment agreement or
severance plan for executives (as the case may be).

                         (2) In the case in which there is no employment agreement in effect between
Grantee and the Company or any Subsidiary or severance plan for executives of the
Company or a Subsidiary in which Grantee is at any applicable time participating,
any of the following reasons:

                    a. The commission by Grantee, as reasonably determined by the
Committee, of any theft, embezzlement or felony against the Company or any
Subsidiary;

                    b. The commission of an unlawful or criminal act by Grantee resulting
in material injury to the business or property of the Company or any
Subsidiary or of an act generally considered to involve moral turpitude, all
as reasonably determined by the Committee;

                    c. The commission of an intentional act by Grantee in the performance
of Grantee’s duties as an employee of the Company or any Subsidiary
amounting to gross negligence or misconduct or resulting in material injury
to the business or property of the Company or Subsidiaries, all as
reasonably determined by the Committee; or

                    d. The habitual drunkenness or drug addiction of Grantee, as reasonably
determined by the Committee.

          (ii) “Change of Control” shall be deemed to have occurred upon the happening of
any of the following events:

               (1) Any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (“Exchange Act”)), other than
(A) a trustee or other fiduciary holding securities under an employee

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benefit plan of the Company or any of its subsidiaries, or (B) a corporation
owned directly or indirectly by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company, is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing 30% or more of the total
voting power of the then outstanding shares of capital stock of the Company entitled
to vote generally in the election of directors (the “Voting Stock”),
provided, however, that the following shall not constitute a change in control:
(x) such person becomes a beneficial owner of 30% or more of the Voting Stock as the
result of an acquisition of such Voting Stock directly from the Company, or (y) such
person becomes a beneficial owner of 30% or more of the Voting Stock as a result of
the decrease in the number of outstanding shares of Voting Stock caused by the
repurchase of shares by the Company; provided, further, that in the event a person
described in clause (x) or (y) shall thereafter increase (other than in
circumstances described in clause (x) or (y)) beneficial ownership of stock
representing more than 1% of the Voting Stock, such person shall be deemed to become
a beneficial owner of 30% or more of the Voting Stock for purposes of this
Section 5(e)(ii)(1), provided such person continues to beneficially own 30% or more
of the Voting Stock after such subsequent increase in beneficial ownership, or

               (2) Individuals who, as of November 1, 2007, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of
the Board, provided that any individual becoming a director, whose election or
nomination for election by the Company’s stockholders was approved by a vote of at
least two-thirds (2/3) of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding for this purpose, any individual whose initial assumption of office is in
connection with an actual or threatened election contest relating to the election of
the directors of the Company (as such terms are used in Rule 14a-11 promulgated
under the Exchange Act); or

               (3) Consummation of a reorganization, merger or consolidation or the sale or
other disposition of all or substantially all of the assets of the Company (a
“Business Combination”), in each case, unless (x) all or substantially all
of the individuals and entities who were the beneficial owners, respectively, of the
Voting Stock immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 50% of the total voting power represented by the
voting securities entitled to vote generally in the election of directors of the
corporation resulting from the Business Combination (including, without limitation,
a corporation which as a result of the Business Combination owns the Company or all
or substantially all of the Company’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership immediately
prior to the Business Combination of the Voting Stock of the Company, and (y) at
least a majority of the members of the board of directors of the corporation
resulting from the Business Combination were members of the Incumbent Board at the
time of the execution of the initial agreement, or action of the Incumbent Board,
providing for such Business Combination; or

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               (4) Approval by the stockholders of the Company of a plan of complete
liquidation or dissolution of the Company; or

               (5) (x) a sale or other transfer of the voting securities of the Bank, whether
by stock, merger, joint venture, consolidation or otherwise, such that following
said transaction the Company does not directly, or indirectly through majority owned
subsidiaries, retain more than 50% of the total voting power of the Bank represented
by the voting securities of the Bank entitled to vote generally in the election of
the Bank’s directors; or (y) a sale of all or substantially all of the assets of the
Bank other than to the Company or any Subsidiary.

          (iii) “Disability” means a termination of Grantee’s employment as a result of a
permanent disability, as determined by the Committee in accordance with either
Section 23(e)(3) of the Code, after receipt of medical advice, or as entitles Grantee to
payments of benefits under a long-term disability benefit plan of the Company or a
Subsidiary in which he participates.

          (iv) “Good Reason,” in connection with a voluntary termination of Grantee’s
employment, means only (x) such term (or comparable term) as is defined in any employment
agreement (including, but not limited to, a term sheet agreement) between Grantee and either
of the Company or a Subsidiary as in effect on the date hereof, or (y) such term (or
comparable term) as is defined in any severance plan for executives of the Company or a
Subsidiary in which Grantee is participating at any time on or after the date hereof, which
in the case of (x) or (y) provides for severance benefits payable to Grantee upon such a
voluntary termination thereunder.

     6. Adjustment Upon Changes in Capitalization. Any additional share of Common Stock or
other securities or property issued with respect to the Common Stock covered by this Award, as a
result of any declaration of stock dividends, through recapitalization resulting in stock splits,
combinations or exchanges of shares or otherwise, shall be subject to the restrictions and terms
and conditions set forth herein.

     7. Payment of Taxes. Grantee or Grantee’s legal representative shall be required to
pay to the Company the amount of any federal, state, local or other taxes which the Company
determines it is required to withhold and pay over to governmental tax authorities with respect to
shares of Common Stock covered by this Award on the date on which the Company’s tax liability
arises with respect to such shares (the “Tax Date”). Grantee may satisfy such obligation
by any of the following means: (a) cash payment to the Company, (b) delivery to the Company of
Previously-Acquired Shares of Common Stock having an aggregate Fair Market Value determined as of
the Tax Date that equals the amount required, (c) with the consent or the direction of the
Committee, authorizing the Company to withhold whole shares of Common Stock which would otherwise
be delivered having an aggregate Fair Market Value determined as of the Tax Date that equals the
amount required, or (d) any combination of (a), (b), and (c). The value of any shares withheld may
not be in excess of the amount of taxes required to be withheld by the Company determined by
applying the applicable minimum statutory withholding tax rates.

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     8. Beneficiary. Grantee may name, from time to time, any beneficiary or beneficiaries
to whom the shares of Common Stock covered in this Award shall be paid in case of his death before
receipt of such shares. Each designation shall be on a form prescribed for such purpose by the
Committee and shall be effective only as set forth therein.

     9. Compliance with Certain Laws and Regulations. If the Committee shall determine, in
its discretion, that:

          (a) the listing, registration or qualification of the Performance Shares covered by this Award
upon any securities exchange or under any law or regulation, or that the consent or approval of any
governmental regulatory body is necessary or desirable in connection with the granting of
Performance Shares hereunder and, as a condition to receipt of Performance Shares covered by this
Award, Grantee shall supply the Committee or Company, as the case may be, with such certificates,
representations and information as the Committee or Company, as the case may be, may request and
shall otherwise cooperate with the Company in obtaining any such listing, registration,
qualification, consent or approval, or

          (b) despite the Committee’s commercially reasonable efforts, and in the absence of approval of
the Plan and this Award by stockholders holding shares representing a majority of the votes
entitled to vote thereunder prior to the date on which the Performance Shares vest (or any such
portion thereof), such listing, registration or qualification of shares subject to the Award shall
not be obtainable, the shares of Common Stock awarded hereunder shall be automatically repurchased
from Grantee by the Company and the Award shall be settled in cash in an amount per share equal to
the Fair Market Value of a share of Common Stock on the date that is six months and one day after
the date of such vesting (or portion thereof) (and subject to applicable cash tax withholding
therefrom in accordance with Section 7 hereof) and shall be payable at the same time and in the
same manner as dividends are payable under Section 3 hereof, subject to Section 18 hereof.

     10. Notices. Any notice provided for in this Agreement must be in writing and must be
either personally delivered, delivered by overnight courier, or mailed by first class mail, to
Grantee at the address set forth on the records of the Company, to the Company at its offices at 70
West Madison Street, Suite 900, Chicago, Illinois 60602, or such other address or to the attention
of such other person as the recipient party shall have specified by prior written notice to the
sending party. Any notice under this Agreement shall be deemed to have been given when received.

     11. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision or any other jurisdiction, but this Agreement shall be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision
had never been contained herein.

     12. Complete Agreement. This Agreement and those documents expressly referred to
herein embody the complete agreement and understanding among the parties and supersede and preempt
any prior understandings, agreements or representations by or among the parties, written or oral,
which may have related to the subject matter hereof in any way.

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     13. Counterparts. This Agreement may be executed in separate counterparts, each of
which is deemed to be an original and all of which taken together constitute one and the same
agreement.

     14. Successors and Assigns. This Agreement is intended to bind and inure to the
benefit of and be enforceable by Grantee, the Company and their respective permitted successors and
assigns (including personal representatives, heirs and legatees), and is intended to bind all
successors and assigns of the respective parties, except that Grantee may not assign any of
Grantee’s rights or obligations under this Agreement except to the extent and in the manner
expressly permitted hereby.

     15. Remedies. Subject to the provisions of Section 19, each of the parties to this
Agreement shall be entitled to enforce its rights under this Agreement specifically, to recover
damages by reason of any breach of any provision of this Agreement and to exercise all other rights
existing in its favor. Subject to the provisions of Section 19, the parties hereto agree and
acknowledge that money damages may not be an adequate remedy for any breach of the provisions of
this Agreement and that any party may in its sole discretion apply to any court of law or equity of
competent jurisdiction for specific performance and/or injunctive relief in order to enforce or
prevent any violations of the provisions of this Agreement.

     16. Waiver or Modification. Any waiver or modification of any of the provisions of
this Agreement shall not be valid unless made in writing and signed by the parties hereto. Waiver
by either party of any breach of this Agreement shall not operate as a waiver of any subsequent
breach.

     17. Miscellaneous.

          (a) The Company shall pay all original issue or transfer taxes with respect to the issuance or
delivery of shares of Common Stock pursuant hereto and all other fees and expenses incurred by the
Company in connection therewith, and shall use its best efforts to comply with all laws and
regulations which, in the opinion of counsel for the Company, shall be applicable thereto.

          (b) This Agreement shall not be construed as an employment contract and does not give Grantee
any right to continued employment by the Company or any affiliate of the Company or to the receipt
of any future Performance Share or other awards under the Plan.

          (c) This Agreement and the Award is subject to (i) the terms and conditions of the Plan and
(ii) all good faith determinations of the Committee and of the Company pursuant to the Plan.

     18. Section 409A. To the extent that any portion of this Award shall be subject to
Section 409A of the Code (“Section 409A”) pursuant to Section 3 or Section 9(b) (as other
than a short-term deferral thereunder), it is intended that the Award and all amounts payable
hereunder, and exercise of authority or discretion hereunder, shall comply with Section 409A so as
not to subject Grantee to the payment of any interest or additional tax imposed under Section 409A.
In furtherance of thereof, anything in this Award to the contrary notwithstanding, any amount
under this Award that is subject to the provisions of Section 409A that is payable upon a
termination of Grantee’s employment involuntarily by the Company without Cause or

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voluntarily by Grantee for Good Reason under Section 5(c) occurring while Grantee shall be a
“specified employee” (within the meaning of Treasury Regulation Section 1.409A-1(i)) of the
Company, shall be paid on the earlier of (i) the date that is six months following such termination
or (ii) the date of the Grantee’s death following such termination, or, if applicable, six months
following a later date constituting a “separation from service” under Treasury Regulation
Section 1.409A-1(h). To the extent that any United States Department of the Treasury regulations,
guidance, interpretations or changes to Section 409A would result in Grantee becoming subject to
interest and additional tax under Section 409A, the Company and Grantee agree to amend this Award
Agreement to bring the Award into compliance with Section 409A.

     19. Remedy for Breach of Non-Competition Covenant. Grantee acknowledges and agrees
that, as a condition to the Award of Performance Shares to Grantee, Grantee is subject to a
covenant prohibiting Grantee’s competition, as particularly set forth in Grantee’s term sheet
agreement (“Term Sheet Agreement”), governing the terms of Grantee’s employment with The
PrivateBank and Trust Company (the “Bank”), a Subsidiary of the Company, the terms of which
covenant are incorporated by reference herein. Pursuant to the terms of such non-competition
covenant, in the Term Sheet Agreement Grantee agreed, and hereby reaffirms such agreement, that as
the Company’s and the Bank’s sole remedy for Grantee’s breach (or threatened breach) of the
non-competition covenant, respecting this Award:

          (a) Grantee shall immediately forfeit all Performance Shares (whether then vested or unvested)
then held by Grantee (and thereupon this Award shall terminate and any certificate issued in
respect of this Award shall be canceled);

          (b) Grantee shall immediately repay to the Company a cash sum in the principal amount equal to
all gross proceeds (before-tax) realized by Grantee upon the sale or other disposition of the
Performance Shares occurring at any time during the period commencing on the date that is three
years before the date of termination of Grantee’s employment with the Bank (the Company and all
Subsidiaries of the Company) and ending on the date that the non-competition covenant under the
Term Sheet Agreement lapses (“Refund Period”), together with interest accrued thereon, from
the date of such breach or threatened breach, at the prime rate (compounded calendar monthly) as
published from time to time in The Wall Street Journal, electronic edition (“Interest”);
and

          (c) Grantee shall repay to the Company a cash sum equal to the fair market value of all of the
Performance Shares transferred by Grantee as a gift or gifts at any time during the Refund Period,
together with Interest, and for which purpose, “fair market value” shall be the Fair Market
Value of one share of Common Stock on the date such gift occurs.

[Signature Page Follows]

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     IN WITNESS WHEREOF, the parties have executed this Agreement effective on the ___day of
                    , 200_.

	 	 	 	 	 	 	 
	 	 	PRIVATEBANCORP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	GRANTEE	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Signature	 	 
	 

	 	Name:	 	 	 	 

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	Grant Date:
	 	Number of Shares:
	 	 	 
	                     ___, 200_
	 	                    

PRIVATEBANCORP, INC.

PERFORMANCE SHARE AWARD CERTIFICATE

     THIS CERTIFIES THAT                                          has been awarded                   
                      
shares of Common Stock,
without par value, of PRIVATEBANCORP, INC. (“Performance Shares”), subject to the terms and
conditions of this Performance Share Award Certificate, the related Performance Share Award
Agreement of even date herewith and the PrivateBancorp, Inc. Strategic Long-Term Incentive
Compensation Plan (“Plan”).

     The terms and conditions upon which the restrictions under the Performance Shares shall lapse
and become unrestricted (i.e., upon which such Performance Shares shall vest) are set forth as
follows:

     1. Except as otherwise may be provided in Section 2 or Section 3 of this Performance Share
Award Certificate, the Performance Share Award Agreement or the Plan, all or a portion of the
Performance Shares shall vest on the last day of the fiscal year in which the applicable Share
Price Performance Objective, below, is attained during such fiscal year, provided that Grantee was
continuously employed with the Company or a Subsidiary through such fiscal year-end date:

	 	 	 	 	 
	 	 	Portion of Performance Shares
	Share Price Performance Objective:	 	Becoming Vested:
	 	 	(including Performance Shares that
	 	 	previously became vested)
	Attainment of a Share Price of $33.49
during any 20 consecutive trading days
during the fiscal year ending December 31,
2008
	 	 	20	%
	Attainment of a Share Price of $40.19
during any 20 consecutive trading days
during the fiscal year ending December 31,
2009
	 	 	40	%
	Attainment of a Share Price of $48.23
during any 20 consecutive trading days
during the fiscal year ending December 31,
2010
	 	 	60	%
	Attainment of a Share Price of $57.87
during any 20 consecutive trading days
during the fiscal year ending December 31,
2011
	 	 	80	%
	Attainment of a Share Price of $69.45
during any 20 consecutive trading days
during the fiscal year ending December 31,
2012
	 	 	100	%

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     Any Performance Shares for which the Share Price Performance Objective, above, is not attained
during the applicable fiscal year, above, shall be forfeited as of December 31, 2012.

     For purposes hereof, “Share Price” shall mean the closing price (determined without
regard for any after-hours trading) for Company Common Stock as reported by the NASDAQ Global
Select Market on the relevant valuation date during which the NASDAQ Global Select Market is open
for trading.

     2. To the extent that, upon completion of the Performance Period, Grantee had become vested in
fewer than 25% of the total number of Performance Shares Awarded hereunder as a result of the
attainment of the Share Price Performance Objectives set forth under Section 1, above, on
December 31, 2012 Grantee shall become vested in such number of Performance Shares such that
Grantee is then vested in 25% of the total number of Performance Shares awarded hereunder including
all Performance Shares that previously became vested, provided that Grantee was continuously
employed with the Company or a Subsidiary through December 31, 2012.

     3. In the event that the Company (or a Subsidiary) fails to consummate a transaction raising
at least $150 million of new cash capital on or before March 31, 2008, on April 1, 2008 all of the
Share Price Performance Objectives shall immediately lapse as to one-quarter of the Performance
Shares Awarded hereunder and such Performance Shares shall thereafter be regarded as
“Time-Vesting Restricted Shares” which shall vest and become unrestricted upon Grantee’s
satisfaction of the Continuous Employment Vesting Requirement below:

	 	 	 	 	 
	 	 	Portion of Time-Vesting Restricted Shares
	Continuous Employment Vesting Requirement:	 	Becoming Vested:
	 	 	(including Time-Vesting Restricted Shares
	 	 	that previously became vested)
	Continuous employment with the Company or a
Subsidiary until December 31, 2008
	 	 	20	%
	Continuous employment with the Company or a
Subsidiary until December 31, 2009
	 	 	40	%
	Continuous employment with the Company or a
Subsidiary until December 31, 2010
	 	 	60	%
	Continuous employment with the Company or a
Subsidiary until December 31, 2011
	 	 	80	%
	Continuous employment with the Company or a
Subsidiary until December 31, 2012
	 	 	100	%

     Any Performance Shares becoming Time-Vested Performance Shares under this Section 3 shall
thereafter not be regarded as Performance Shares for purposes of Sections 1 and 2 of this
Performance Share Award Certificate.

12

 

     4. The Committee shall have the authority to modify any and all of the Share Price Performance
Objectives, in the Committee’s good faith discretion, as the Committee deems appropriate in
connection with any acquisition, reorganization, recapitalization, merger, consolidation, spin-off,
extraordinary dividend or other distribution, or similar transaction.

     IN WITNESS WHEREOF, PRIVATEBANCORP, INC. has caused this Performance Share Award Certificate
to be signed by its duly authorized officer this ___ day of                     , 200_.

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

13

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

     FOR VALUE RECEIVED, I,                                         , hereby assign and transfer unto              
                                               
                                        
shares of the Common Stock of PrivateBancorp, Inc. (the “Company”) in my
name on the books of the Company.

     I do hereby irrevocably constitute and appoint                                                         
                         as my
attorney-in-fact to transfer the said stock on the books of the within named Company with full
power of substitution in the premises. By execution hereof, I represent that such shares now stand
in my name on the books of the Company.

	 	 	 	 	 
	 	 	   
	 

	 	Signature	 	 
	 

	 	Name:	 	 

Dated as of                      ___, 20___

	 	 	 
	IN THE PRESENCE OF:

	 	 
	 
	 	 
	 

	 	 

14

 

BENEFICIARY DESIGNATION FORM FOR PERFORMANCE SHARE

     Performance Share Award Agreement(s) (the “Performance Share Award(s)”) dated (fill in
Performance Share Award Dates):

	 	 	 	 	 	 	 
	 
	 	 

	 	 

	 	 
	 
	 	 
	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 	 	 

     You may designate a primary beneficiary and a secondary beneficiary to whom rights under your
Performance Share Award Agreements will pass in the event of your death. You may name more than
one person as a primary or secondary beneficiary. For example, you may wish to name your spouse as
primary beneficiary and your children as secondary beneficiaries. Your secondary beneficiary(ies)
will have no rights with respect to your Performance Share Award(s) if any of your primary
beneficiaries survive you. All primary beneficiaries will have equal rights with respect to your
Performance Share Award(s) unless you indicate otherwise. The same rule applies for secondary
beneficiaries.

Designate Your Beneficiary(ies):

	 	 	 
	     Primary Beneficiary(ies) (give name, address and relationship to you):

	 	 
	 

	 	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 

	 	 	 
	     Secondary Beneficiary(ies) (give name, address and relationship to you):

	 	 
	 

	 	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 

     I certify that my designation of beneficiary set forth above is my free act and deed and
acknowledge that when effective it will revoke any prior designation I may have made with regard to
the Performance Share Award(s) set forth above.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Signature	 	 	 	 
	 

	 	Printed Name:	 	 	 	 
	 

	 	 	 	 

	 	 

Dated as of                      ___, 20___.

     This Beneficiary Designation Form for Performance Share shall be effective on the day it is
received by the Chief Financial Officer (or his designee) of the Company at 70 West Madison Street,
Chicago, Illinois 60602. This Form shall be (i) delivered to the Chief Financial Officer (or his
designee) by personal delivery, facsimile, United States mail or by express courier service, and
(ii) deemed to be received upon personal delivery, upon confirmation of receipt of facsimile
transmission or upon receipt by the Chief Financial Officer (or his designee) if by United States
mail or express courier service; provided, however, that if this Form is not received

15

 

during regular business hours, it shall be deemed to be received on the next succeeding
business day of the Company.

RECEIVED AND ACKNOWLEDGED:

	 	 	 	 	 	 	 
	 	 	PRIVATEBANCORP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	Name:
	 	 
 
	 	 
	 

	 	Title:
	 	 

Chief Human Resources Officer or a 
Duly Authorized Designee
	 	 

16exv10w20

 

EXHIBIT 10.20

FORM OF PRIVATEBANCORP, INC.

NONQUALIFIED INDUCEMENT PERFORMANCE STOCK OPTION AGREEMENT

     As an inducement to the undersigned Optionee (“Optionee”) to accept an offer of
employment with the Company, this Nonqualified Inducement Stock Option Agreement (this
“Agreement”) is made as of the date set forth on the signature page hereof by and between
PrivateBancorp, Inc., a Delaware corporation (the “Company”), and the Optionee. Except as
otherwise indicated or defined in Section 1 hereof, all words with initial capitals shall have the
same meaning as ascribed to them in the PrivateBancorp, Inc. Strategic Long-Term Incentive
Compensation Plan (the “Plan”). Optionee acknowledges receipt of a copy of the Plan.

     WHEREAS, the Company desires to grant to Optionee an option (“Option”) to buy shares
of the Company’s Common Stock, pursuant to the Plan and this Agreement;

     NOW, THEREFORE, the parties hereto agree as follows:

     1. Definitions. For the purposes of this Agreement:

          (a) “Change of Control” shall be deemed to have occurred upon the happening of any of
the following events:

     (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (“Exchange Act”)), other than (A) a trustee or
other fiduciary holding securities under an employee benefit plan of the Company or any of
its subsidiaries, or (B) a corporation owned directly or indirectly by the stockholders of
the Company in substantially the same proportions as their ownership of stock of the
Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act),
directly or indirectly, of securities of the Company representing 30% or more of the total
voting power of the then outstanding shares of capital stock of the Company entitled to vote
generally in the election of directors (the “Voting Stock”), provided, however, that
the following shall not constitute a change in control: (1) such person becomes a
beneficial owner of 30% or more of the Voting Stock as the result of an acquisition of such
Voting Stock directly from the Company, or (2) such person becomes a beneficial owner of 30%
or more of the Voting Stock as a result of the decrease in the number of outstanding shares
of Voting Stock caused by the repurchase of shares by the Company; provided, further, that
in the event a person described in clause (1) or (2) shall thereafter increase (other than
in circumstances described in clause (1) or (2)) beneficial ownership of stock representing
more than 1% of the Voting Stock, such person shall be deemed to become a beneficial owner
of 30% or more of the Voting Stock for purposes of this Section 1(a)(i), provided such
person continues to beneficially own 30% or more of the Voting Stock after such subsequent
increase in beneficial ownership, or

     (ii) Individuals who, as of November 1, 2007, constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board, provided
that any individual becoming a director, whose election or nomination for election by the
Company’s stockholders was approved by a vote of at least two-thirds

 

 

(2/3) of the directors then comprising the Incumbent Board shall be considered as
though such individual were a member of the Incumbent Board, but excluding for this purpose,
any individual whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of the directors of the Company (as
such terms are used in Rule 14a-11 promulgated under the Exchange Act); or

     (iii) Consummation of a reorganization, merger or consolidation or the sale or other
disposition of all or substantially all of the assets of the Company (a “Business
Combination”), in each case, unless (1) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Voting Stock immediately prior
to such Business Combination beneficially own, directly or indirectly, more than 50% of the
total voting power represented by the voting securities entitled to vote generally in the
election of directors of the corporation resulting from the Business Combination (including,
without limitation, a corporation which as a result of the Business Combination owns the
Company or all or substantially all of the Company’s assets either directly or through one
or more subsidiaries) in substantially the same proportions as their ownership immediately
prior to the Business Combination of the Voting Stock of the Company, and (2) at least a
majority of the members of the board of directors of the corporation resulting from the
Business Combination were members of the Incumbent Board at the time of the execution of the
initial agreement, or action of the Incumbent Board, providing for such Business
Combination; or

     (iv) Approval by the stockholders of the Company of a plan of complete liquidation or
dissolution of the Company; or

     (v) (1) a sale or other transfer of the voting securities of the Bank, whether by
stock, merger, joint venture, consolidation or otherwise, such that following said
transaction the Company does not directly, or indirectly through majority owned
subsidiaries, retain more than 50% of the total voting power of the Bank represented by the
voting securities of the Bank entitled to vote generally in the election of the Bank’s
directors; or (2) a sale of all or substantially all of the assets of the Bank other than to
the Company or any Subsidiary.

          (b) “Disability” means a termination of Optionee’s employment due to his permanent
disability (as determined by the Committee) in accordance with either Section 23(e)(3) of the Code,
after receipt of medical advice, or as entitles Optionee to payments of benefits under a long-term
disability benefit plan of the Company or a Subsidiary in which he participates.

          (c) “Resignation” means Optionee’s voluntary relinquishment of employment with the
Company and all Subsidiaries.

          (d) “Termination” means a termination of the employment of Optionee (i) by the Company
and all of its Subsidiaries for any reason, other than a Termination For Cause, or (ii) due to
Optionee’s death or Disability.

2

 

          (e) “Termination Date” means the date on which a Resignation, Termination, Termination
For Cause or Termination For Good Reason occurs.

          (f) “Termination For Cause” means a termination of the employment of Optionee by the
Company or any Subsidiary for any of the following reasons:

     (i) In the case in which Optionee has entered into an employment agreement (including,
but not limited to, a term sheet agreement) with the Company or a Subsidiary as in effect on
the date hereof, or Optionee otherwise is at any time participating in a severance plan for
executives of the Company or a Subsidiary, which provides for an involuntary termination of
Optionee’s employment for any reason set forth as constituting “Cause” under such of
Optionee’s employment agreement or severance plan for executives (as the case may be).

     (ii) In the case in which there is no employment agreement (including, but not limited
to, a term sheet agreement) in effect between Optionee and the Company or any Subsidiary or
severance plan for executives in which Optionee is at any applicable time participating, any
of the following reasons:

     (1) The commission by Optionee, as reasonably determined by the Committee, of
any theft, embezzlement or felony against the Company or any Subsidiaries;

     (2) The commission of an unlawful or criminal act by Optionee resulting in
material injury to the business or property of the Company or Subsidiaries or of an
act generally considered to involve moral turpitude, all as reasonably determined by
the Committee;

     (3) The commission of an intentional act by Optionee in the performance of
Optionee’s duties as an employee of the Company or any Subsidiary amounting to gross
negligence or misconduct or resulting in material injury to the business or property
of the Company or Subsidiaries, all as reasonably determined by the Committee; or

     (4) The habitual drunkenness or drug addiction of Optionee, as reasonably
determined by the Committee.

          (g) “Termination For Good Reason” means, in the case in which Optionee has entered
into an employment agreement (including, but not limited to, a term sheet agreement) with the
Company or a Subsidiary as in effect on the date hereof, or Optionee otherwise is at any time
participating in a severance plan for executives of the Company or a Subsidiary, which provides for
a voluntary termination of Optionee’s employment for “Good Reason” (or comparable term) thereunder,
a Resignation of Optionee for any reason set forth as constituting “Good Reason” (or such
comparable term) under such of Optionee’s employment agreement or severance plan for executives (as
the case may be).

     2. Grant and Designation of Option. Upon the execution and delivery of this Agreement
and the related Stock Option Certificate of even date herewith, and subject to the

3

 

Plan (the terms and provisions of which are incorporated herein and expressly made a part
hereof, including, but not limited to, adjustments required pursuant to Section 11 thereof), the
Company hereby grants to Optionee the Option to purchase the aggregate number of shares of Common
Stock set forth on the Stock Option Certificate at the price per share (“Option Price”) set
forth on such Certificate.

     3. Term of Option; Vesting and Exercisability. Subject to earlier termination or
cancellation of the Option as provided herein, the term of the Option shall be for the period set
forth on the Stock Option Certificate. Subject to the provisions of this Agreement (including the
Stock Option Certificate), the Option shall be “vested” and exercisable at such times and
as to such number of shares for which Optionee has been continuously employed with the Company or a
Subsidiary and the Performance Objectives (or other conditions) have been satisfied in accordance
with the terms of the Stock Option Certificate (subject to the applicability of Section 6 hereof),
and upon such satisfaction the vested portion of the Option shall thereupon become exercisable.
The foregoing to the contrary notwithstanding, to the extent not previously terminated or canceled,
upon and after the occurrence of a Change of Control, the Option shall be 100% vested and thereupon
Optionee shall be entitled to exercise the Option in whole or in part with respect to all of the
shares covered thereby, provided Optionee has been continuously employed by the Company or a
Subsidiary from the date hereof until the occurrence of such Change of Control.

     4. Method of Exercise.

          (a) Subject to the terms and conditions of this Agreement, the Option may be exercised by
written notice to the Company (the “Exercise Notice”) at its offices at 70 West Madison
Street, Suite 900, Chicago, Illinois 60602 (or such other offices of the Company which are
hereinafter designated by the Company) to the attention of the Secretary of the Company. The
Exercise Notice (i) shall state (A) the election to exercise the Option and (B) the total number of
full shares of Common Stock in respect to which it is being exercised, and (ii) shall be signed by
the person or persons exercising the Option.

          (b) Optionee shall pay the total amount due resulting from such exercise in any of the
following forms: (i) by certified or cashier’s check for the full amount of the purchase price of
such shares; (ii) by delivery of certificates for shares of Previously-Acquired Shares (or deemed
delivery based on attestation to the ownership of Previously-Acquired Shares) having a Fair Market
Value equal to the total payment due from Optionee; (iii) through a simultaneous exercise of
Optionee’s Option and sale of the shares of Common Stock hereby acquired pursuant to a brokerage
arrangement approved in advance by the Committee to assure its conformity with the terms and
conditions of the Plan; or (iv) by a combination of the methods described in (i), (ii) and (iii)
above. To the extent applicable, Optionee shall also pay the amount, in cash, of any federal,
state and local income, Social Security and Medicare taxes required to be withheld as a result of
the exercise, unless Optionee delivers Previously-Acquired Shares or elects with the consent of the
Committee or is directed by the Committee to have the Company withhold from the shares purchased,
shares having a Fair Market Value equal to such required tax withholding amount. The value of any
shares withheld may not be in excess of the amount of taxes required to be withheld by the Company
determined by applying the applicable minimum statutory withholding tax rates. Upon receipt of the
foregoing, the Company shall issue the shares of

4

 

Common Stock as to which the Option has been duly exercised and shall return the Stock Option
Certificate, duly endorsed to reflect such exercise, to Optionee. In the discretion of the
Committee, the shares of Common Stock to be issued upon the exercise of all or a portion of the
Option may be non-certificated and, accordingly, issuances and transfers shall be reflected on the
stock ledger books and records of the Company and no certificate of shares of Common Stock in
respect of Grantee’s shares will be issued to Grantee, to the extent not prohibited by applicable
law or the rules of any stock exchange.

     5. Restriction on Exercise. This Option may not be exercised if the issuance of such
shares upon such exercise or the method of payment of consideration for such shares would
constitute a violation of any applicable federal or state securities or other law or regulation.
As a condition to the exercise of this Option, the Company may require Optionee to make any
representation and warranty to the Company as may be required by any applicable law or regulation.

     6. Effect of Termination of Employment. The Option, to the extent not theretofore
vested and exercised, shall become vested and shall terminate on the date of or following
Optionee’s termination of employment as set forth below:

          (a) In the event a Termination Date occurs due to Optionee’s Resignation or Termination (other
than in circumstances described in Sections 6(b) or (d) below), Optionee may during the 90-day
period following such Resignation or Termination exercise the Option as to such portion or all of
the Option which had become vested and exercisable in accordance with the terms of the Stock Option
Certificate prior to Optionee’s Termination Date, and such portion of the Option which had not so
previously become vested and exercisable shall be immediately forfeited and canceled.

          (b) In the event of a Termination of Optionee by the Company without Cause, Optionee’s
Resignation for Good Reason or after the Optionee has attained age 62 and has been credited with 10
or more years of service with the Company and its Subsidiaries (including prior service with
LaSalle Bank, N.A. and its affiliates) or Optionee’s death or Disability, prior to the occurrence
of a Change of Control, on the last day of the fiscal year in which such Termination, Resignation,
death or Disability occurs, Optionee shall become vested in such unvested portion of the Option as
equals the greater of (i) and (ii) below:

     (i) Optionee shall become vested in such unvested portion of the Option as to which
Optionee would have become vested pursuant to the terms and conditions of the Stock Option
Certificate had Optionee’s employment continued until the last day of the fiscal year in
which such Termination, Resignation, death or Disability occurs; or

     (ii) Optionee shall become vested in such portion of the Option that, upon such
vesting, Optionee is vested in such portion of the total number of shares of Common Stock
covered by this Option (including such portion that had become vested prior to the
Termination Date, whether or not exercised, or becomes vested pursuant to Section 6(b)(i))
as equals the positive difference, if any, between

5

 

     (1) the product of (A) the total number of shares of Common Stock covered by
this Option as set forth in the Stock Option Certificate multiplied by (B) 5%
multiplied by (C) the number of whole or partial fiscal years of Optionee’s
continuous employment with the Company or a Subsidiary since January 1, 2008, minus

     (2) the sum of (A) the number of shares of Common Stock covered by this Option
that had become vested prior to the Termination Date, whether or not exercised, plus
(B) the number of shares of Common Stock covered by this Option that becomes vested
pursuant to the provisions of Section 6(b)(i).

     (iii) The portion of the Option that had become vested and exercisable prior to the
occurrence of Optionee’s Termination, Resignation, death or Disability shall be exercisable
until the first anniversary of Optionee’s Termination Date. The portion of the Option that
becomes vested and exercisable pursuant to Section 6(b)(i) or (ii) in respect of the fiscal
year in which such Termination, Resignation, death or Disability occurs shall be exercisable
until the first anniversary of the date on which such portion of the Option becomes so
vested and exercisable.

          (c) In the event of Optionee’s death during the 90-day period or one-year period described in
Sections 6(a) and (b), Optionee’s personal representative may, during the unexpired portion of such
90-day period or one-year period, as the case may be, following the date of Optionee’s death,
exercise the Option to the extent that the Option was so vested and exercisable at the time of
Optionee’s death.

          (d) In the event of Optionee’s Termination for Cause, the unexercised portion of the Option,
whether vested or not vested, shall immediately terminate and be forfeited.

          (e) The foregoing provisions of this Section 6 to the contrary notwithstanding, in no event
shall any portion of the Option be exercised after the expiration of the term of the Option
described in the Stock Option Certificate.

     7. Compliance with Certain Laws and Regulations. If the Committee shall determine, in
its discretion, that:

          (a) the listing, registration or qualification of the shares of Common Stock subject to this
Option upon any securities exchange or under any law or regulation, or that the consent or approval
of any governmental regulatory body is necessary or desirable in connection with the granting of
the Option or the acquisition of shares thereunder, Optionee shall supply the Committee or Company,
as the case may be, with such certificates, representations and information as the Committee or
Company, as the case may be, may request and shall otherwise cooperate with the Company in
obtaining any such listing, registration, qualification, consent or approval, or

          (b) despite the Committee’s commercially reasonable efforts, and in the absence of approval of
the Plan and this Option by stockholders holding shares representing a majority of the votes
entitled to vote thereunder prior to the date on which the Option (or any

6

 

portion thereof) shall be exercisable, such listing, registration or qualification of shares
subject to the Option shall not be obtainable, upon exercise by the Optionee this Option shall be
repurchased from Optionee by the Company and the Option shall be settled in cash in an amount equal
to the excess (if any) of the Fair Market Value of Common Stock on the date of exercise of such
Option (or portion thereof) over the Option Price hereunder therefor (and subject to applicable
cash tax withholding therefrom in accordance with Section 4(b) hereof).

     8. Notices. Any notice provided for in this Agreement must be in writing and must be
either personally delivered, delivered by overnight courier, or mailed by first class mail, to
Optionee at the address set forth on the records of the Company, to the Company at the address set
forth or established pursuant to Section 4(a), or such other address or to the attention of such
other person as the recipient party shall have specified by prior written notice to the sending
party. Any notice under this Agreement shall be deemed to have been given when received.

     9. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision or any other jurisdiction, but this Agreement shall be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision
had never been contained herein.

     10. Complete Agreement. This Agreement and those documents expressly referred to
herein embody the complete agreement and understanding among the parties and supersede and preempt
any prior understandings, agreements or representations by or among the parties, written or oral,
which may have related to the subject matter hereof in any way.

     11. Counterparts. This Agreement may be executed in separate counterparts, each of
which is deemed to be an original and all of which taken together constitute one and the same
agreement.

     12. Successors and Assigns. This Agreement is intended to bind and inure to the
benefit of and be enforceable by Optionee, the Company and their respective permitted successors
and assigns (including personal representatives, heirs and legatees), and is intended to bind all
successors and assigns of the respective parties, except that Optionee may not assign any of
Optionee’s rights or obligations under this Agreement except to the extent and in the manner
expressly permitted hereby.

     13. Remedies. Each of the parties to this Agreement shall be entitled to enforce its
rights under this Agreement specifically, to recover damages by reason of any breach of any
provision of this Agreement 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 Agreement and that any party may in its sole discretion apply to any court of
law or equity of competent jurisdiction for specific performance and/or injunctive relief in order
to enforce or prevent any violations of the provisions of this Agreement.

7

 

     14. Waiver or Modification. Any waiver or modification of any of the provisions of
this Agreement shall not be valid unless made in writing and signed by the parties hereto. Waiver
by either party of any breach of this Agreement shall not operate as a waiver of any subsequent
breach.

     15. Rights of Employment and Future Awards. In no event shall the granting of this
Option or Optionee’s acceptance hereof give or be deemed to give Optionee any right to be retained
in the employ of the Company or to the receipt of any future Option or other awards under the Plan.

     16. Remedy for Breach of Non-Competition Covenant. Optionee acknowledges and agrees
that, as a condition to the award of this Option to Optionee, Optionee is subject to a covenant
prohibiting Optionee’s competition, as particularly set forth in Optionee’s term sheet agreement
(“Term Sheet Agreement”), governing the terms of Optionee’s employment with The PrivateBank
and Trust Company (the “Bank”), a Subsidiary of the Company, the terms of which covenant
are incorporated by reference herein. Pursuant to the terms of such non-competition covenant, in
the Term Sheet Agreement Optionee agreed, and hereby reaffirms such agreement, that as the
Company’s and the Bank’s sole remedy for Optionee’s breach (or threatened breach) of the
non-competition covenant, respecting this Option:

          (a) Optionee shall immediately forfeit the unexercised portion of the Option (whether then
vested or unvested) then held by Optionee (and thereupon this Option shall terminate and be
canceled) and all shares of Common Stock acquired upon the exercise of the vested portion of the
Option and then held by Optionee (and thereupon any certificate issued in respect of such shares
shall be canceled);

          (b) Optionee shall immediately repay to the Company a cash sum in the principal amount equal
to all gross proceeds (before-tax) realized by Optionee upon the sale or other disposition of
shares of Common Stock occurring at any time during the period commencing on the date that is three
years before the Termination Date and ending on the date that the non-competition covenant under
the Term Sheet Agreement lapses (“Refund Period”), together with interest accrued thereon,
from the date of such breach or threatened breach, at the prime rate (compounded calendar monthly)
as published from time to time in The Wall Street Journal, electronic edition (“Interest”);
and

          (c) Optionee shall repay to the Company a cash sum equal to the fair market value of all
shares of Common Stock and all or any portion of the Option transferred by Optionee as a gift or
gifts at any time during the Refund Period, together with Interest, and for which purpose,
“fair market value” per share of Common Stock shall be the Fair Market Value of one share
of Common Stock on the date such gift occurs and per Option share shall be the positive difference,
if any, between the Fair Market Value of a share of Common Stock, above, and the Option Price set
forth in the Stock Option Certificate.

[Signature Page Follows]

8

 

     IN WITNESS WHEREOF, the parties have executed this Agreement effective on the                      day of
                                        , 200         .

	 	 	 	 	 	 	 
	 	 	PRIVATEBANCORP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	OPTIONEE	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 

9

 

			
	Grant Date:
	 	Number of Shares:
	 	 	 
	                                , 200          
	 	                                        

PRIVATEBANCORP,
INC.

STOCK OPTION CERTIFICATE

(PERFORMANCE-VESTED)

     THIS CERTIFIES THAT                     has been awarded a STOCK OPTION to purchase
                    shares of Common Stock, without par value, of PRIVATEBANCORP, INC. (the “Company”)
(“Option”) at a price per share of $                     (“Option Price”) (which is the closing
price of the Company’s Common Stock on the date hereof and which shall for all purposes constitute
the “Fair Market Value,” as defined under the Plan), subject to the terms and conditions of
this Stock Option Certificate, the related Stock Option Agreement of even date herewith and the
PrivateBancorp, Inc. Strategic Long-Term Incentive Compensation Plan (“Plan”).

     The terms and conditions upon which the Option shall vest and become exercisable are set forth
as follows:

     Subject to earlier termination as provided in the Stock Option Agreement or the Plan, this
Option shall expire, and cease to be exercisable to the extent then vested, ten (10) years from the
Grant Date under this Stock Option Certificate.

     1. Except as otherwise may be provided in this Stock Option Agreement or the Plan, all or a
portion of the Option shall vest and become exercisable upon the certification by the Compensation
Committee (not later than March 10), based on the published financial results of the Company,
following the fiscal year-end date in which the Earnings Per Share Performance Objective, below, is
attained, provided that Optionee was continuously employed with the Company or a Subsidiary through
such fiscal year-end date:

	 	 	 	 	 
	 	 	Portion of Option
	Earnings Per Share Performance Objectives:	 	Becoming Vested:
	Earnings per Share of $1.98 for the fiscal year ended
December 31, 2008
	 	 	20	%
	Earnings per Share of $2.38 for the fiscal year ended
December 31, 2009
	 	 	20	%
	Earnings per Share of $2.85 for the fiscal year ended
December 31, 2010
	 	 	20	%
	Earnings per Share of $3.42 for the fiscal year ended
December 31, 2011
	 	 	20	%
	Earnings per Share of $4.11 for the fiscal year ended
December 31, 2012
	 	 	20	%

10

 

     2. Any failure to attain, with respect to any fiscal year, the Earnings Per Share Performance
Objective set forth in Section 1 of this Stock Option Certificate notwithstanding, a portion of the
total number of shares of Common Stock covered by this Option shall be vested and exercisable
(including such portion that had previously become vested and exercisable) upon the certification
by the Compensation Committee (not later than March 10), based on the published financial results
of the Company, following the December 31, 2012 fiscal year-end as to the attainment of the
Performance Objective as to cumulative Earnings Per Share for the fiscal years 2008 through 2012,
provided below, provided that Optionee has been continuously employed with the Company or a
Subsidiary through December 31, 2012.

	2008-2012 Cumulative Earnings Per Share	 	 	 	 
	Performance Objective:	 	Portion of Option to be Vested:
	 	 	(including any portion of the Option that
	 	 	previously vested, whether or not exercised)
	$12.80
	 	 	50	%
	$13.75
	 	 	75	%
	$14.74
	 	 	100	%

     Upon the certification by the Compensation Committee following the December 31, 2012 fiscal
year-end, if a greater number of shares covered by this Option are vested without regard to the
application of this Section 2 as are vested pursuant to this Section 2 (in each case, including the
previously exercised vested portion of the Option), then this Section 2 shall be disregarded.

     3. To the extent that, upon the certification by the Compensation Committee following the
December 31, 2012 fiscal year-end, Optionee had become vested in fewer than 25% of the total number
of shares covered by this Option pursuant to Section 1 or Section 2 of this Stock Option
Certificate (whether or not exercised), on December 31, 2012 Optionee shall become vested in such
number of shares covered by this Option such that Optionee is then vested in 25% of the shares
covered by this Option (including the previously vested portion of the Option, whether or not
exercised), provided that Optionee was continuously employed with the Company or a Subsidiary
through December 31, 2012.

11

 

     4. For purposes hereof, “Earnings Per Share” shall mean the Company’s “primary
earnings per share,” as determined on a fully-diluted basis (including, without limitation all
outstanding performance share awards, stock option awards, restricted stock unit awards and stock
appreciation right awards denominated in shares of Common Stock (whether payable in cash or shares
of Common Stock thereunder, provided that no such shares, options or rights shall be included to
the extent reflected on the books and records of the Company as a liability), without regard for
the satisfaction of continuous service requirements and performance objectives thereunder),
published by the Company in accordance with generally accepted accounting principles, consistently
applied, as publicly reported by the Company on its fiscal year financial reports.

     5. The Committee shall have the authority to modify any and all of the Earnings Per Share
Performance Objectives and Cumulative Earnings Per Share Performance Objectives under Sections 1
and 2 of this Stock Option Certificate, in the Committee’s good faith discretion, as the Committee
deems appropriate in connection with any repurchases by the Company of its Common Stock from
shareholders, acquisition, reorganization, recapitalization, merger, consolidation, spin-off,
extraordinary dividend or other distribution, or similar transaction.

     IN WITNESS WHEREOF, PRIVATEBANCORP, INC. has caused this Stock Option Certificate to be signed
by its duly authorized officer as of the date set forth above.

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

12

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