Document:

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                                    FORM OF
                     CHANGE IN CONTROL SEVERANCE AGREEMENT

                                                                  Exhibit 10.42

     This AGREEMENT entered into as of the                     by and among
Taylor Capital Group, Inc. a Delaware corporation, Cole Taylor Bank, an Illinois
banking corporation (the "Bank"), and Employee Name (the "Executive"),

                                  WITNESSETH:

     WHEREAS, the Executive provides valuable services as an employee of the
Bank;

     WHEREAS, the Company wishes to provide security to the Executive to induce
the Executive to continue in the employ of the Bank.

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants herein contained the value of which is hereby acknowledged, the
Executive and the Bank agree as follows:

     1.   Bank Obligation.    Subject to the limitations of this Agreement, if
during the Change in Control Period the Bank shall terminate the Executive's
employment, or if during the Change in Control Period the Executive shall
terminate his employment with the Bank for Good Reason, the Bank shall pay to
the Executive in a single sum within thirty (30) days after the termination of
employment an amount equal to [two and one-half (2-1/2) times] the Executive's
annual Compensation and the Bank shall continue to the Executive, for a period
of eighteen consecutive months beginning with the date of the Executive's
termination of employment, Medical and Hospital Benefits. The Bank shall also
provide executive level outplacement assistance benefits beginning with the
date of the Executive's termination of employment. If the Executive's
employment is terminated with the Bank during the Change in Control Period for
any reason, excluding a termination for Good Reason, or if the Bank shall
terminate the Executive's employment due to Cause, death or the Executive's
disability which renders him unable to perform the essential functions of the
position, this Agreement shall terminate without any obligation of the Company
to the Executive hereunder. If the Executive is offered employment by a
successor to the Bank or its business or assets or by an Affiliate or a
successor to an Affiliate or its business or assets on terms and conditions
that are reasonably comparable to the Executive's terms and conditions of
employment with the Bank (including this Agreement), the Company shall not have
an obligation hereunder to the Executive. If any payment under this Agreement,
either alone or together with any other payment, benefit or transfer of
property which the Executive receives or has a right to receive form the Bank or
its Affiliate, ("Total Payments"), would constitute a nondeductible "excess
parachute payment" (as defined in Section 280G of the Internal Revenue Code of
1986, amended ("Code")) or nondeductible "employee remuneration" under Section
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162(m) of the Code, such payment under this Agreement shall be reduced to the
largest amount as will result in no portion of the payment under this Agreement
being such a nondeductible payment under the Code. The Bank agrees to undertake
such reasonable efforts as it may determine in its sole discretion to prevent
any payment under this Agreement from constituting a nondeductible payment,
provided the Bank is not obligated to incur additional cost in order to make a
payment nondeductible. The determination of any reduction under the preceding
sentences shall be made by the Bank in good faith, and such determination shall
be binding on the Executive. The reduction provided by the fifth sentence of
this paragraph 1 shall apply only if, after reduction for any applicable federal
excise tax imposed by Section 4999 of the Code and federal income tax imposed by
the Code, the total payment accruing to the Executive would be less than the
amount of the Total Payments as reduced under said fifth sentence and after
reduction for federal income taxes.

     2.  Other Benefits.  Nothing in this Agreement shall prevent or limit the
Executive's continuing or future participation in any other plan, program,
policy or practice of the Company, Bank or any Affiliate for which the Executive
may qualify, nor shall anything in this Agreement limit or otherwise affect the
rights of the Bank or the Executive under any other plan, program, policy,
practice, contract or agreement to which the Company, Bank or any Affiliate may
be a party. Any amounts payable or rights or benefits furnished the Executive
under any other plan, program, policy, practice, contract or agreement with the
Company, Bank or any of its Affiliates at or subsequent to the date of the
Executive's termination of employment shall be payable in accordance with the
terms of such plan, program, policy, practice, contract or agreement and without
regard to this Agreement, except as explicitly modified by this Agreement.
Amounts payable or in respect of this Agreement shall not be taken into account
with respect to any other employee benefit plan or arrangement.

     3.  Mitigation.  The Executive shall not be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to the Executive under this Agreement, and the amount payable under this
Agreement shall not be reduced whether or not the Executive obtains other
employment. The Company's obligation to make the payment provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim, right
or action which the Company may have against the Executive or others.

     4.  Successors.

          (a) This Agreement is personal to the Executive and shall not be
assignable by the Executive. This Agreement shall inure to the benefit of and be
enforceable by the

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     Executive's legal representatives including the Executive's executor,
     trustee or administrator.

          (b)  This Agreement shall inure to the benefit of and be binding upon
     the Company and its successors and assigns.

          (c)  The Company will require any successor (whether direct or
     indirect, by purchase, merger, consolidation or otherwise) to all or
     substantially all of the business and/or assets of the Company to assume
     expressly and agree to perform this Agreement.

     5.   Resolution of Disputes.  Any dispute related to the interpretation or
enforcement of this Agreement shall be enforceable only by arbitration in Cook
County, Illinois (or such other metropolitan area to which the Company's
principal executive officers may be relocated if such relocation does not result
in Good Reason for the Executive to terminate employment), in accordance with
the commercial arbitration rules then in effect of the American Arbitration
Association, before a panel of three arbitrators, one of whom shall be selected
by the Company, the second of whom shall be selected by the Executive and the
third of whom shall be selected by the other two arbitrators. In the absence of
the American Arbitration Association, or if for any reason arbitration under the
arbitration rules of the American Arbitration Association cannot be initiated,
or if one of the parties fails or refuses to select an arbitrator, or if the
arbitrators selected by the Company and the Executive cannot agree on the
selection of the third arbitrator within seven days after such time as the
Company and the Executive have each been notified of the selection of the
other's arbitrator, the necessary arbitrator or arbitrators shall be selected by
the presiding judge of the court of general jurisdiction in the metropolitan
area where arbitration under this Section would otherwise have been conducted.
The arbitrators shall award to the Executive his reasonable legal fees and
expenses in connection with any arbitration proceeding hereunder if (i) the
arbitration is commenced by the Company, and the Company has no reasonable basis
for initiating such proceeding, or (ii) the arbitration is commenced by the
Executive, and the Executive prevails on the Executive's claim in the
arbitration proceeding.

          The arbitrators shall award to the Company its legal fees and
expenses incurred in connection with any arbitration proceeding hereunder if the
arbitration proceeding is commenced by the Executive, and the Executive has no
reasonable basis for initiating such proceeding. The parties agree that the
arbitration panel shall construe this paragraph to determine whether either
party is entitled to recover its cost and fees hereunder. Any award entered by
the arbitrators shall be formal, binding and nonappealable and judgment may be
entered thereon by any party in accordance with applicable law in any court of
competent jurisdiction. This arbitration provision shall be specifically
enforceable.

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6.   Miscellaneous.

     (a)  This Agreement shall be governed by and construed in accordance with
the laws of the State of Illinois, without reference to principles of conflict
of laws. The captions of this Agreement are not part of the provisions hereof
and shall have no force or effect. This Agreement may not be amended or
modified otherwise than by a written agreement executed by the parties hereto
or their respective successors and legal representatives.

     (b)  All notices and other communications hereunder shall be in writing
and shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

     If to the Executive:

     Employee Name
     Employee Address
     Employee City, State, Zip

     If to the Company:

     Taylor Capital Group, Inc.
     350 East Dundee Road
     Suite 300
     Wheeling, Illinois 60090
     Attention: Chairperson of the Compensation Committee

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notices and communications shall be effective
when actually received by the addressee.

     (c)  The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement.

     (d)  The Company may withhold from any amounts payable under this Agreement
such Federal, state or local taxes as shall be required to be withheld pursuant
to any applicable law or regulation.

     (e)  The Executive and the Company acknowledge that, except as may
otherwise be provided under any other written agreement between the Executive
and the Company or the Bank, the employment of the Executive by the Bank is "at
will" and, may be terminated by either the Executive or the Company at any time.
Moreover, if prior to the Effective Date, the Executive's employment with the
Bank terminates, then the Executive shall have no rights under this

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     Agreement.

          (f)  This Agreement constitutes the entire agreement between the
     parties hereto and contains all the agreements between such parties with
     respect to the subject matter hereof. This Agreement supersedes all other
     agreements, oral or in writing, between the parties hereto with respect to
     the subject matter hereof.

     7.   Defined Terms. For purposes of this Agreement the following whenever
used in the capitalized form shall have the meaning set forth below unless the
context clearly indicates otherwise.

          (a)  "Affiliate" means, with respect to any person, any individual,
     corporation, partnership, association, joint-stock company, trust,
     unincorporated association or other entity (other than such person) that
     directly or indirectly through one or more intermediaries, controls, or is
     controlled by, or is under common control with that person.

          (b)  "Annual Bonus" means the gross, annual bonus payable to the
     Executive for the fiscal year of the Company ending immediately preceding
     the Effective Date, but annualized in the event the Executive was not
     employed for the entire fiscal year with respect to which such bonus was
     paid.

          (c)  "Cause" shall means termination because of (1) an act of fraud,
     embezzlement or theft in connection with the Employee's duties or in the
     course of the Employee's employment, (2) unreasonable neglect or refusal by
     the Employee to perform his duties (other than any such failure resulting
     from the Employee's incapacity due to disability), (3) the engaging by the
     Employee in willful, reckless, or grossly negligent misconduct which is or
     may be materially injurious to the Company, or (4) the Employee's
     conviction of or plea of guilty or nolo contendere to a felony.

          (d)  "Change of Control" means, and be deemed to have occurred, on the
     date of the first to occur of any of the following:

               (i)  upon the vote of the shareholders of the Company approving a
          merger or consolidation in which the Company's shareholders
          immediately prior to the effective time of the merger or consolidation
          will beneficially own immediately after the effective time of the
          merger or consolidation securities of the surviving or new corporation
          having less than 50% of the "voting power" of the surviving or new
          corporation, including "voting power" exercisable on a contingent or

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     deferred basis as well as immediately exercisable "voting power"; provided,
     however, that no such merger or consolidation shall constitute a "change of
     control" in the event that following such transaction the Taylor Family (as
     defined below) owns, directly or indirectly, 30% or more of the combined
     "voting power" of the surviving or new corporation's outstanding
     securities, excluding "voting power" exercisable on a contingent or
     deferred basis.

          (ii) upon the consummation of a sale, lease, exchange or other
     transfer or disposition by the Company of all or substantially all of the
     assets of the Company on a consolidated basis, provided, however, that the
     mortgage, pledge or hypothecation of all or substantially all of the assets
     of the Company on a consolidated basis, in connection with a bona fide
     financing shall not constitute a Sale of the Company; or

          (iii) when any "person" (as such term is used in Sections 13(d) and
     14(d) of the Securities Exchange Act of 1934) is or becomes the "beneficial
     owner" (as defined in Rule 13d-3 of the Securities Exchange Act as in
     effect on date hereof, but excluding (a) any Company sponsored employee
     benefit plan and (b) any member of the Taylor Family), directly or
     indirectly, of shares of Company stock such that the Taylor Family owns
     less than 30% of the combined "voting power" of the Company's then
     outstanding securities, excluding "voting power" exercisable on a
     contingent or deferred basis.

     (e)  "Change in Control Period" means the continuous period commencing on
the Effective Date and ending on the SECOND anniversary of the Effective Date.

     (f)  "Compensation" means the gross, annual base salary and Annual Bonus
paid by the Bank (including amounts accrued but not paid) to the Executive in
accordance with the generally applied payroll practices of the Bank for the
completed fiscal year of the Bank immediately preceding the Effective Date.
Compensation, for purposes of applying the two and one half (2 1/2) multiplier
in paragraph 1 of this agreement, does not include any accrued balances in the
1997 Long Term Incentive Plan or any other compensation program the executive
participates in. For purposes of this Agreement, any amounts due the Executive
under any compensation plan other than base salary and annual bonus, shall be
paid out in accordance with the provisions of the specific plan governing those
said programs.

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(g) "Effective Date" means the date on which a Change in Control occurs.
Anything in this Agreement to the contrary notwithstanding, if a Change in
Control occurs and if the Executive's employment with the Company is
terminated prior to the date on which the Change in Control occurs, and if it
is reasonably demonstrated by the Executive that such termination of employment
(i) was at the request of a third party who has taken steps reasonably
calculated to effect the Change in Control or (ii) otherwise arose in
connection with or anticipation of the Change in Control, then for all purposes
of this Agreement the "Effective Date" shall mean the date immediately prior to
the date of such termination of employment.

(h) "Good Reason" shall mean the occurrence of any of the following events
unless, (i) such event occurs with the Executive's express prior written
consent, (ii) the event is an isolated, insubstantial or inadvertent action or
failure to act which was not in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by the Executive, (iii) the
event occurs in connection with the termination of the Executive's employment
for Cause, Disability or death or (iv) the event occurs in connection with the
Executive's voluntary termination of employment or other than due to the
occurrence of one of the following events:

         (A) the assignment to the Executive by the Company or the Bank of any
     duties which are inconsistent with, or are a diminution of, the Executive's
     positions, duty, title, office, responsibility and status with the Company
     or the Bank, including without limitation, any diminution of the
     Executive's position or responsibility in the decision or management
     processes of the Company, or any removal of the Executive from, or any
     failure to reelect the Executive to, any of such positions;

         (B) a reduction by the Company or the Bank in the Executive's rate of
     base salary as in effect on the Effective Date or as the same may be
     increased from time to time during the term of the Agreement, other than a
     reduction which is a reduction generally applicable to all senior officers
     or executives of the Company;

         (C) any failure to either continue in effect any material benefit or
     incentive plan or arrangement (including, without limitation, a plan
     meeting the applicable provisions of Section 401(a) of the Code, group life
     insurance plan, medical, dental, accident and disability plans) in which
     the Executive is

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     participating or eligible to participate on the Effective Date or to
     substitute and continue other plans providing the Executive with
     substantially similar benefits (all of the foregoing is hereinafter
     referred to as "Benefit Plans"), or the taking of any action which would
     substantially and adversely affect the Executive's participation in or
     materially reduce the Executive's benefits or compensation under any such
     Benefit Plan or deprive the Executive of any material fringe benefit
     enjoyed by the Executive on the Effective Date;

     (D) a relocation of more than 50 miles from their location of the principal
     executive offices of the Company or the Bank, or the relocation of the
     Executive's principal place of employment for the Company or the Bank of
     more than 50 miles, to any place other than the location at which the
     Executive performed his duties on the Effective Date; and

     (E) any failure by any successor or assignee of the Company to continue
     this Agreement in full force and effect.

If the Executive does not notify the Company or the Bank and incurs the
termination of employment within 120 days of the date the Executive knew or
should have reasonably known of the event giving rise to Good Reason, the
Executive shall be deemed to have waived his right to a termination for Good
Reason based upon such event or the continuing effect or occurrence of such
event.

(i) "Medical and Hospital Benefits" mean the medical and hospital benefits that
would have been offered to the Executive and the Executive's family members if
the Executive's employment had not terminated based on the same terms and
conditions applicable to non-terminated similarly situated executives of the
Company or its successor and their family members. Notwithstanding anything
contained herein to the contrary, (A) any Medical and Hospital Benefits offered
in accordance with this Agreement run simultaneously with any rights to health
coverage continuation available to the Executive and the Executive's family
under applicable law and this Agreement shall constitute notice to the Executive
and the Executive's eligible family members of any right to elect health
continuation coverage under the provisions of Section 4980B of the Internal
Revenue Service of 1986, as amended, Section 601 et. al. of the Employee
Retirement Income Security Act of 1974, as amended, (to the extent applicable)
following the expiration of the Medical and Hospital Benefits coverage period
under this Agreement; and (B) if the Executive or any of the Executive's family
members are covered under a group

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     health plan of another employer, nothing in this Agreement shall obligate a
     plan maintained by the Company to pay benefits on a primary basis with
     respect to such person.

     (j) "Taylor Family" means (A) Sidney J. Taylor and Iris Taylor, (B) a
     descendant of Sidney J. Taylor and Iris Taylor, (C) any estate, trust,
     guardianship or custodianship for the primary benefit of any individual
     described in (A) or (B) above, or (C) a proprietorship, partnership,
     limited liability company, or corporation controlled by and substantially
     all the interest in which are owned, directly or indirectly, by one or more
     individuals or entities described in (A), (B), or (C) above.

     IN WITNESS WHEREOF, the parties have executed this Change of Control and
Severance Agreement on the date first written above. Executed this 16th day of
September, 2000.

                                        TAYLOR CAPITAL GROUP, INC.

                                        By: --------------------------------
                                            Jeffrey Taylor, Chairman & Chief
                                            Executive Officer

                                        COLE TAYLOR BANK

                                        By: --------------------------------
                                            Bruce W. Taylor
                                            President and CEO

                                        EXECUTIVE

                                        ------------------------------------

                                        Employee Name

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                                                                  Exhibit 10.43

                       IN THE UNITED STATES DISTRICT COURT
                          FOR THE DISTRICT OF DELAWARE

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IN RE RELIANCE SECURITIES LITIGATION                        MDL Docket No. 1304
                                                    Civil Action No. 99-146-RRM

================================================================================

                           FIRST AMENDED AND RESTATED

                            STIPULATION OF SETTLEMENT

                                  BY AND AMONG

                               THE ESTATE PARTIES

                                       AND

                              THE TAYLOR DEFENDANTS
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      This First Amended and Restated Stipulation of Settlement (the
"Stipulation of Settlement") is dated and executed as of October 10, 2001 (the
"Stipulation Execution Date"). All capitalized terms used herein and not
otherwise defined shall have the meanings set forth in Section IV.1 hereof. This
Stipulation of Settlement is made and entered into by and among the Settling
Parties, by and through their undersigned attorneys of record. This Stipulation,
which is entered into after extensive discovery and investigation conducted by
counsel for the Estate Parties and the Taylor Defendants, is intended by the
Settling Parties, upon and subject to the terms and conditions hereof, to fully,
finally, and forever resolve, discharge, and settle the Claims and Causes of
Action released herein.

I.    THE ESTATE'S LITIGATION

      A.    The RAG Bankruptcy Filing and Plan Confirmation

      On February 9, 1998 (the "Petition Date"), the Debtors filed with the
Bankruptcy Court their petitions for relief under chapter 11 of the Bankruptcy
Code. RAG's petition was filed as Case No. 98-288 (PJW). The petitions for RAG's
subsidiaries are consecutively numbered through Case No. 98-310 (PJW).

      On July 2, 1998, the Bankruptcy Court entered the Confirmation Order,
which confirmed the Debtors' Reorganization Plan (the "Confirmation Order").
Under the Reorganization Plan, and through the Confirmation Order, the Debtors
and their respective chapter 11 estates were substantively consolidated pursuant
to Section 1123(a)(5)(C) of the Bankruptcy Code for purposes of classification,
distributions, and all other purposes under the Reorganization Plan. The
Reorganization Plan became effective on July 31, 1998.

      The Reorganization Plan divided the holders of Claims against and Equity
Interests in the Debtors into various classes. Class 4 of the Reorganization
Plan ("Class 4") consisted of the holders of unsecured claims against the
Debtors. Class 5 of the Reorganization Plan ("Class 5") included the holders of
Allowed Equity Interests in Class 5 and the holders of Allowed Class 5
Litigation Claims. The Reorganization Plan specified how the recoveries from

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Causes of Action brought by the Estate Representative were to be divided among
the Claims and Equity Interests classified in Class 4 and Class 5 of the
Reorganization Plan. The Reorganization Plan, however, did not specify how
distributions under the Reorganization Plan to Class 5 are to be divided within
Class 5 among holders of Allowed Equity Interests in Class 5 and holders of
Allowed Class 5 Litigation Claims.

      B.    The Estate's Adversary Proceedings

      The Reorganization Plan provides, pursuant to Section 1123(b)(3)(B) of the
Bankruptcy Code, for the appointment of a post-confirmation Estate
Representative to carry out the provisions of the Reorganization Plan on behalf
of the Debtors, the Estate, and the Post-Confirmation Estate. The Bankruptcy
Court appointed David T. Allen to be the Estate Representative of the
Post-Confirmation Estate. Under the Reorganization Plan, the Estate
Representative is authorized to investigate and assert certain Claims and Causes
of Action belonging to the Estate Parties.

      On September 4, 1998, the Estate Representative filed two adversary
proceedings with the Bankruptcy Court: the 398 Adversary and the 399 Adversary.

      In the 398 Adversary, the Estate Representative alleged that the Split-Off
Transaction was voidable as a fraudulent transfer under federal bankruptcy laws.
In the 399 Adversary, the Estate Representative alleged, inter alia, that the
Split-Off Transaction was an intentional fraudulent transfer and that certain of
the Taylor Defendants and others had breached fiduciary duties owed to RAG or
had aided in the breach of those fiduciary duties.

      On July 15, 1999, the Court consolidated the 398 Adversary and the 399
Adversary into a single action (the "Consolidated Adversary Proceeding"). On
July 22, 1999, the Court withdrew the reference of the 398 Adversary and the 399
Adversary from the Bankruptcy Court.

      On December 30, 1999, the Estate Representative filed amended complaints
in the 398 Adversary and 399 Adversary (the "Amended Estate Adversary
Complaints"). The

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Consolidated Adversary Proceeding and the Amended Estate Adversary Complaints
are now pending before the Court.

      The Consolidated Adversary Proceeding was actively litigated, with the
parties producing and examining millions of pages of documents, engaging in
extensive written discovery, and taking the depositions of approximately 85 fact
witnesses. In addition, the parties to the Consolidated Adversary Proceeding
identified and produced reports by 17 experts concerning numerous complex
issues. Discovery was completed in the fall of 2000. Summary judgment motions by
the Taylor Defendants and the Estate Representative were denied by the Court in
December 2000. Trial on the Consolidated Adversary Proceeding against the Taylor
Defendants was originally scheduled for January 3, 2001, but has been deferred
pending finalization of this Stipulation of Settlement.

II.   DEFENDANTS' STATEMENTS AND DENIALS OF WRONGDOING AND LIABILITY

      The Taylor Defendants have denied and continue to deny each and every one
of the claims and contentions alleged by the Estate Representative in the
Consolidated Adversary Proceeding, and do not admit any liability for the Claims
or Causes of Action released or dismissed herein. The Taylor Defendants further
have expressly denied and continue to deny all charges of wrongdoing or
liability arising out of any of the conduct, statements, acts or omissions
alleged in the Consolidated Adversary Proceeding and believe they have valid
defenses to the Claims asserted in the Consolidated Adversary Proceeding.

      The Taylor Defendants have concluded that their further involvement in the
Consolidated Adversary Proceeding would be protracted and expensive, and that it
is desirable that all Claims and Causes of Action asserted against them in the
Consolidated Adversary Proceeding be fully and finally settled in the manner and
upon the terms and conditions set forth in this Stipulation of Settlement in
order to limit further expense, inconvenience, and distraction, and to dispose
of burdensome and protracted litigation. The Taylor Defendants have determined
that it is desirable and beneficial that the Consolidated

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Adversary Proceeding against them be settled in the manner and upon the terms
and conditions set forth in this Settlement Stipulation.

III.  CLAIMS OF THE ESTATE REPRESENTATIVE AND BENEFITS OF THE STIPULATION OF
      SETTLEMENT

      The Estate Representative believes that the Claims asserted in the
Consolidated Adversary Proceeding have merit, and that the evidence developed to
date supports the Claims and Causes of Action asserted. However, the Estate
Representative recognizes and acknowledges the expense and length of continued
proceedings necessary to prosecute the Consolidated Adversary Proceeding against
the Taylor Defendants through trial and through appeals. The Estate
Representative also has taken into account the uncertain outcome and the risk of
any litigation, especially in complex actions such as the Consolidated Adversary
Proceeding, as well as the difficulties and delays inherent in such litigation.
The Estate Representative is also mindful of the inherent problems of proof and
possible defenses to the Claims that have been asserted in the Consolidated
Adversary Proceeding against the Taylor Defendants. The Estate Representative
believes that the settlement set forth in this Stipulation of Settlement confers
substantial benefits upon, and is in the best interests of, the Estate Parties
and their constituencies.

IV.   TERMS OF STIPULATION AND AGREEMENT OF SETTLEMENT

      NOW, THEREFORE, for good and valuable consideration, including the
payment, promises, and covenants contained herein, it is hereby stipulated and
agreed by and between the Estate Parties and the Taylor Defendants, by and
through their respective counsel or attorneys of record, as follows:

1.    Definitions and Interpretations

      The following terms shall have the following meanings when used in
capitalized form in this Stipulation of Settlement. Such meanings shall be
equally applicable to both the singular and plural forms of such terms. The
words "herein," "hereof," and "hereunder" and

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other words of similar import refer to this Stipulation of Settlement as a whole
and (unless otherwise specified) not any particular section, subsection, or
clause contained herein.

      1.1 "Allowed" when used with respect to any Claim or Equity Interest,
means the Claim or Equity Interest or applicable portion thereof that has been,
or will be, allowed pursuant to section 502 of the Bankruptcy Code or pursuant
to the Reorganization Plan (or if the Claim or Equity Interest was objected to,
that a final, nonappealable order has been, or will be, entered allowing the
Claim or Equity Interest).

      1.2 "Bankruptcy Cases" means the jointly administered chapter 11
bankruptcy cases of the Debtors in the Bankruptcy Court, Case No. 98-288 (PJW)
(Jointly Administered).

      1.3 "Bankruptcy Code" means the Bankruptcy Reform Act of 1978, as amended,
11 U.S.C. Sections 101, et seq.

      1.4 "Bankruptcy Court" means the United States Bankruptcy Court for the
District of Delaware.

      1.5 "Causes of Action" means all Claims, choses in action, third-party
Claims, counterclaims and crossclaims.

      1.6 "Claim" means (a) a right to payment, whether or not such right is
reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
unmatured, disputed, undisputed, legal, equitable, secured, or unsecured; or (b)
a right to an equitable remedy for breach of performance if such breach gives
rise to a right of payment, whether or not such right to an equitable remedy is
reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.

      1.7 "Class 4" means the impaired class designated as "Class 4" in the
Reorganization Plan.

      1.8 "Class 5" means the impaired class designated as "Class 5" under the
Reorganization Plan, which consists of (i) all Class 5 Equity Interests and (ii)
all Class 5 Litigation Claims.

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      1.9 "Class 5 Litigation Claims" means the Claims defined in the
Reorganization Plan as "Class 5 Litigation Claims."

      1.10 "Class Settlement Agreement" means that certain agreement, dated
October 10, 2001, by and among the Graham Class, the Estate Parties, the Taylor
Defendants, and certain other Persons. This Stipulation of Settlement is
attached as Exhibit C thereto.

      1.11 "Class Settlement Effective Date" means the first date by which all
of the events and conditions specified in Section IV.4.1 of the Class Settlement
Agreement have been met and have occurred (or have been waived in the manner
contemplated by Section IV.4.7 thereof).

      1.12 "Class Settlement Fund" means the escrow fund established by counsel
for the Graham Class to accept recoveries on behalf of the Graham Class.

      1.13 "Cole Family" means any or all of the following Persons: Irwin H.
Cole; the Estate of Irwin H. Cole; Shirley B. Cole, individually and as trustee
of any Cole Family Trust; Lori Cole, individually and as trustee of any Cole
Family Trust; Cathy Cole Williams, individually and as trustee of any Cole
Family Trust; Justin C. Williams; Ian Hunt and Justin Williams, individually and
as co-successor trustees to certain Cole Family Trusts; and the Cole Family
Trusts.

      1.14 "Cole Family Chancery Action" means that certain litigation commenced
on August 19, 1998, by the Cole Family in the Delaware Court of Chancery, Civil
Action No. 16594NC, against certain of the Taylor Defendants and others for
breach of fiduciary duty, fraud, and related Causes of Action.

      1.15 "Cole Family Trusts" means any or all of the following Persons: the
1993 Exempt Trust f/b/o Lori Cole; the 1993 Non-Exempt Trust f/b/o Lori Cole;
the 1985 Trust for Todd Justin Williams; the Cathy Cole Williams Trust UGMA for
Bradley F. Williams; the 1992 Trust for Bradley F. Williams; the 1992 Trust for
Todd Justin Williams; the Cathy Cole Tayco Trust; the Lori Cole Tayco Trust; the
Randy Cole Tayco Trust; the 1993 Non-Exempt

                                        6
<PAGE>
Trust for Cathy Cole; the 1993 Exempt Trust for Cathy Cole; the 1985 Trust for
Jamie Lee Matthews.

      1.16 "Confirmation Order" means (i) the order of the Bankruptcy Court
dated as of July 2, 1998, confirming the Reorganization Plan, and (ii) the order
of the Bankruptcy Court dated September 3, 1998, approving certain
post-confirmation technical amendments to the Reorganization Plan and confirming
the Reorganization Plan as amended.

      1.17 "Consolidated Adversary Proceeding" means the consolidated proceeding
ordered by the Court on July 15, 1999, resulting in the consolidation of the 398
Adversary and the 399 Adversary into a single case before the Court, captioned
David T. Allen v. Sidney J. Taylor, et al., Civil Action No. 99-146-RRM.

      1.18 "Consolidated Amended Complaint" means that certain complaint filed
on August 18, 1999, in the Graham Litigation.

      1.19 "Court" means the United States District Court for the District of
Delaware.

      1.20 "CT Mortgage" means CT Mortgage Company, Inc., a wholly owned
subsidiary of Taylor Capital Group.

      1.21 "Debtors" means any of the following entities at any time before the
Reorganization Plan Effective Date: Reliance Acceptance Group, Inc., formerly
known as Cole Taylor Financial Group, Inc. ("RAG"), Reliance Acceptance
Corporation, formerly known as Cole Taylor Finance Company ("RAC"), a
wholly-owned subsidiary of Reliance, and the following 21 wholly-owned
subsidiaries of RAC: Reliance Acceptance Corp. of Arizona, Reliance Acceptance
Corp. of Colorado, Reliance Acceptance Corp. of Florida, Reliance Acceptance
Corp. of Georgia, Reliance Acceptance Corp. of Illinois, Reliance Acceptance
Corp. of Indiana, Reliance Acceptance Corp. of Iowa, Reliance Acceptance Corp.
of Kentucky, Reliance Acceptance Corp. of Minnesota, Reliance Acceptance Corp.
of Missouri, Reliance Acceptance Corp. of Michigan, Reliance Acceptance Corp. of
New Mexico, Reliance Acceptance Corp. of Nevada, Reliance Acceptance Corp. of
North Carolina, Reliance

                                        7
<PAGE>
Acceptance Corp. of Ohio, Reliance Acceptance Corp. of Oregon, Reliance
Acceptance Corp. of South Carolina, Reliance Acceptance Corp. of Tennessee,
Reliance Acceptance Corp. of Texas, Reliance Acceptance Corp. of Utah, and
Reliance Acceptance Corp. of Washington, including their predecessors or
successors in interest.

      1.22 "Delaware Chancery Court" means the Court of Chancery of the State of
Delaware in and for New Castle County.

      1.23 "Delaware Class Litigation" means the case captioned In re
Consolidated Reliance Acceptance Group Shareholder Litigation, C.A. No. 15989NC,
presently pending before the Delaware Chancery Court representing the following
consolidated actions: (i) Levin v. Reliance Acceptance Group, et al., C.A. No.
15989NC; (ii) Curnyn v. Taylor, et al., C.A. No. 16150NC; (iii) Hansen v. Taylor
Capital Group, Inc., et al., C.A. No. 16198NC; (iv) Pama Partnership v. Taylor
Capital Group, Inc. et al., C.A. No. 16212NC; and (v) Block, et al. v. Taylor,
et al., C.A. No. 16328NC.

      1.24 "Disallowed" means a Claim that is not Allowed.

      1.25 "Equity Interest" means any equity interest in the Debtors
represented by common stock or options issued by RAG.

      1.26 "Estate" means the estates of the Debtors created by Section 541 of
the Bankruptcy Code upon the commencement of the Bankruptcy Cases and
substantively consolidated pursuant to the terms of the Reorganization Plan.

      1.27 "Estate Parties" means the Debtors, the Estate, the Post-Confirmation
Estate, and the Estate Representative.

      1.28 "Estate Released Parties" means the each of the Estate Parties and
each of their respective subsidiaries, affiliates, officers, directors,
employees, partners, trustees, agents, attorneys, predecessors, successors,
assigns and heirs.

                                        8

<PAGE>
      1.29 "Estate Representative" means David T. Allen, not individually, but
solely as the representative of the Post-Confirmation Estate appointed pursuant
to Section 1123 of the Bankruptcy Code.

      1.30 "Extraordinary Costs" means (i) the costs incurred in the Insurance
Litigation by the Insurance Litigation Plaintiffs to retain experts and (ii)
such other extraordinary costs incurred in the Insurance Litigation that are
designated by the Estate Representative, in his sole and absolute discretion, as
"Extraordinary Costs" for purposes of this Settlement Stipulation.

      1.31 "Final" means, with respect to an order of any court, a final and
non-appealable order of said court.

      1.32 "Graham Class" means the class certified in the Graham Litigation by
order of the Court dated October 31, 2000, or as modified by any subsequent
Court order.

      1.33 "Graham Litigation" means the Texas Actions, the Illinois Action, the
MDL Proceeding, and all Claims asserted therein.

      1.34 "Illinois Action" means that certain class action complaint filed on
February 2, 1998, in the United States District Court for the Northern District
of Illinois entitled Graham v. Taylor Capital Group, Inc., et al., Civil No. 98
C 0779, alleging violations of the federal securities laws and breaches of
fiduciary duties under Delaware law and ERISA.

      1.35 "Insurance Litigation" means (i) that certain action pending before
the Court, captioned Alstrin v. St. Paul Mercury Ins. Co., et al., Civil Action
No. 98-683-RRM (the "Alstrin Litigation"), (ii) any Causes of Action the
director and officer defendants in the Graham Litigation and/or any of the
Estate Parties may have against Dann Insurance, Tri-City Brokerage, Freeborn &
Peters, and/or David H. Kistenbroker, (iii) any other action related to the
Insurance Policies brought by the Insurance Litigation Plaintiffs against any
Person (including, without limitation, actions based upon denials of coverage
under the Insurance Policies).

                                        9
<PAGE>
      1.36 "Insurance Litigation Plaintiffs" means the plaintiffs of record in
the Insurance Litigation.

      1.37 "Insurance Policies" means, collectively, the following policies of
insurance: (i) a ten million dollar ($10,000,000) "Excess Insurance Policy,"
Number DOX 132022519, issued by Continental Casualty Company, incepting July 31,
1996 (the "CNA Insurance Policy"); (ii) a ten million dollar ($10,000,000)
"Excess Financial Products Insurance Policy," Number NDA 0117927-96, issued by
Reliance Insurance Company, incepting July 31, 1996 (the "Reliance Insurance
Policy"); and (iii) a thirty million dollar ($30,000,000) "Directors, Officers
and Corporate Liability Insurance Policy," Number 484-93-25, issued by the
National Union Fire Insurance Company of Pittsburgh, Pa., incepting February 12,
1997 (the "National Union Policy").

      1.38 "Insurance Recoveries" means recoveries of proceeds obtained from or
in connection with the Insurance Policies or the Insurance Litigation (whether
such recoveries arise in contract or tort); provided, however, that Insurance
Recoveries shall not include amounts payable pursuant to the St. Paul Insurance
Policy.

      1.39 "LaSalle" means LaSalle National Bank, N.A.

      1.40 "MDL Proceeding" means the multidistrict litigation proceeding
captioned In Re Reliance Securities Litigation, MDL Docket No. 1304, C.A. No.
99-858-RRM, pending in the United States District Court for the District of
Delaware.

      1.41 "Person" means a natural person, individual, corporation,
partnership, limited partnership, limited liability partnership, limited
liability company, association, joint venture, joint stock company, estate,
legal representative, trust, unincorporated association, government or any
political subdivision or agency thereof, and any business or legal entity and
their spouses, heirs, executors, administrators, predecessors, successors,
representatives, or assigns.

                                       10
<PAGE>
      1.42 "Post-Confirmation Estate" means the substantively consolidated
Estate upon and after the Reorganization Plan Effective Date.

      1.43 "RAC" means Reliance Acceptance Corporation, a Delaware corporation
(f/k/a Cole Taylor Finance Corporation), on or before the Reorganization Plan
Effective Date.

      1.44 "RAG" means Reliance Acceptance Group, Inc., a Delaware corporation
(formerly known as Cole Taylor Financial Group, Inc.), on or before the
Reorganization Plan Effective Date.

      1.45 "Registration Statement" means a filing with the SEC on Form S-1 or
such other form as may be applicable.

      1.46 "Released Parties" means, collectively, the Estate Released Parties
and the Taylor Defendant Released Parties.

      1.47 "Reliance Subsidiaries" means any subsidiary of RAG or RAC at any
time on or before the Reorganization Plan Effective Date.

      1.48 "Reorganization Plan" means the "Fourth Amended Joint Plan of
Reorganization Dated April 30, 1998 of Reliance Acceptance Group, Inc., Reliance
Acceptance Corporation and Its Subsidiaries with Technical Amendments," which
was confirmed by the Bankruptcy Court pursuant to the Confirmation Order.

      1.49 "Reorganization Plan Effective Date" means July 31, 1998, the
effective date of the Reorganization Plan.

      1.50 "SEC" means the Securities and Exchange Commission.

      1.51 "Securities Act" means the Securities Act of 1933, 15
U.S.C.SectionSection77a, et seq., as amended.

      1.52 "Securities Exchange Act" means the Securities Exchange Act of 1934,
15 U.S.C. Sections 78a, et seq., as amended.

      1.53 "Settling Parties" means, collectively, the Estate Parties and the
Taylor Defendants.

                                       11

                                       4
<PAGE>
      1.54 "Split-Off Transaction" means the transactions effective February 12,
1997, whereby, inter alia, RAG transferred all of the shares of common stock of
Taylor Capital Group to the Taylor Defendants, among others, in exchange for the
4.5 million shares of common stock of RAG owned by the Taylor Defendants, among
others, which shares were transferred to RAG.

      1.55 "St. Paul Insurance Policy" means the $10 million ($10,000,000),
Financial Institution Corporate Indemnification and Directors and Officers
Policy, Number 0400JW4206, issued by St. Paul Mercury Insurance Company,
incepting July 31, 1996.

      1.56 "Stipulation Effective Date" means the date that distributions are
made to the Estate Representative under Section IV.5 hereof, which date shall be
no later than thirty (30) days following the latest to occur of the conditions
precedent to effectiveness of this Stipulation of Settlement set forth in
Section IV.6 hereof.

      1.57 "Stipulation Execution Date" means October 10, 2001.

      1.58 "Taylor Capital Group" means Taylor Capital Group, Inc., a Delaware
corporation.

      1.59 "Taylor D&O Defendants" means the following Persons: Sidney J.
Taylor, Jeffrey W. Taylor, Bruce W. Taylor, and J. Christopher Alstrin.

      1.60 "Taylor Defendants" means the following Persons: Sidney J. Taylor,
individually and as Trustee; Bruce W. Taylor; Jeffrey W. Taylor; Cindy Taylor
Bleil; Iris A. Taylor, individually and as trustee; Melvin E. Pearl, as trustee;
Cole Taylor Bank, as trustee; Taylor Family Partnership, L.P.; Taylor Capital
Group, Inc.; J. Christopher Alstrin; Iris Taylor as trustee u/a dated 12/14/82
Taylor Annual Gift Trust fbo Adam Taylor; Melvin E. Pearl as trustee u/a dated
6/10/82 Bruce Taylor Gift Trust; Melvin E. Pearl as trustee u/a dated 12/17/92
Taylor 1992 Trust fbo Brett Daniel Taylor; Iris Taylor as trustee u/a dated
11/18/85 Taylor Annual Gift Trust fbo Brett Daniel Taylor; Iris Taylor as
trustee u/a 12/14/82 Taylor Annual Gift Trust fbo Brian Taylor; Iris Taylor as
trustee u/a dated 12/14/82 Taylor Annual

                                       12
<PAGE>
Gift Trust fbo Bruce W. Taylor; Melvin E. Pearl as trustee u/a dated 1/20/78
Shirley Tark Great Grandchildren's Trust fbo Family of Bruce Taylor; Iris Taylor
as trustee u/a dated 12/14/82 Taylor Annual Gift Trust fbo Cindy Taylor Bleil;
Melvin E. Pearl as trustee u/a dated 1/20/78 Shirley Tark Great Grandchildren's
Trust fbo Family of Cindy Taylor Bleil; Melvin E. Pearl as trustee u/a dated
6/10/82 Cindy L. Taylor Gift Trust; Iris Taylor, Jeffrey Taylor, Bruce Taylor,
and Cindy Taylor Bleil, co-trustees under self declaration of trust dated
9/17/76; Cole Taylor Bank as Co-trustee u/a dated 10/20/71 Lillian Tark Iris
Fund; Melvin E. Pearl as trustee u/a dated 12/17/92 Taylor 1992 Trust fbo
Elizabeth Ann Bleil; Iris Taylor as trustee u/a dated 12/15/87 Taylor Annual
Gift Trust fbo Elizabeth Ann Bleil; Melvin E. Pearl as trustee u/a dated
12/17/92 Taylor 1992 Trust fbo Elliott Benjamin Taylor; Iris Taylor as trustee
u/a dated 12/14/82 Taylor Annual Gift Trust fbo Emily Taylor; Melvin E. Pearl as
trustee u/a dated 1/20/78 Shirley Tark Grandchildren's Trust fbo Bruce Taylor;
Melvin E. Pearl as trustee u/a dated 1/20/78 Shirley Tark Grandchildren's Trust
fbo Cindy Taylor Bleil; Melvin E. Pearl as trustee u/a dated 1/20/78 Shirley
Tark Great Grandchildren's Trust fbo Family of Jeffrey Taylor; Melvin E. Pearl
as trustee u/a dated 6/10/82 Jeffrey W. Taylor Gift Trust; Iris Taylor as
trustee u/a dated 12/14/82 Taylor Annual Gift Trust fbo Jeffrey W. Taylor;
Melvin E. Pearl as trustee u/a dated 1/20/78 Shirley Tark Grandchildren's Trust
fbo Jeffrey Taylor; Melvin E. Pearl as trustee u/a dated 12/17/92 Taylor 1992
Trust fbo Lisa Rebecca Taylor; Iris Taylor as trustee u/a dated 7/10/83 Taylor
Annual Gift Trust fbo Lisa Rebecca Taylor; Iris Taylor as trustee u/a dated
12/14/82 Taylor Annual Gift Trust fbo Melissa Taylor; Melvin E. Pearl as trustee
u/a dated 12/17/92 Taylor 1992 Trust fbo Rebecca Inez Bleil; Iris Taylor as
trustee u/a dated 11/18/85 Taylor Annual Gift Trust fbo Rebecca Inez Bleil;
Melvin E. Pearl as trustee u/a dated 12/17/92 Taylor 1992 Trust fbo Ryan Taylor;
Iris Taylor as trustee u/a dated 8/1/88 Taylor Annual Gift Trust fbo Ryan
Taylor; Iris Taylor as trustee u/a dated 7/10/83 Taylor Annual Gift Trust fbo
Stephanie Lynn Taylor; Melvin E. Pearl as trustee u/a dated 12/17/92 Taylor 1992
Trust fbo Stephanie Lynn Taylor; Sidney J.

                                       13
<PAGE>
Taylor as trustee under Self Declaration of Trust dated 9/17/76; Susan Taylor as
trustee u/a dated 3/25/94 Susan Taylor Revocable Trust; Melvin E. Pearl Trust
u/a dated 12/17/92 Taylor 1992 Trust fbo Brian Taylor; Melvin E. Pearl Trust u/a
dated 12/17/92 Taylor 1992 Trust fbo Adam Taylor; Melvin E. Pearl Trust u/a
dated 12/17/92 Taylor 1992 Trust fbo Melissa Taylor; Melvin E. Pearl Trust u/a
dated 12/17/92 Taylor 1992 Trust fbo Emily Taylor; Bruce W. Taylor Trust u/a
dated 4/10/84 Bruce W. Taylor Revocable Trust; Jeffrey W. Taylor Trust u/a dated
8/20/79 Jeffrey W. Taylor Revocable Trust; Cindy Taylor Bleil Trust u/a dated
3/7/94 Cindy Taylor Bleil Revocable Trust; Barbara Taylor Trust u/a dated
11/18/98 Barbara Taylor Revocable Trust.

      1.61 "Taylor Defendant Released Parties" means each of the Taylor
Defendants and each of their respective subsidiaries, affiliates, officers,
directors, employees, partners, trustees, shareholders, beneficiaries, agents,
attorneys, predecessors, successors, assigns, and heirs, but shall not include
the following Persons: Thomas L. Barlow, Scott Barlow, James Barlow, Lori Cole,
Irwin H. Cole, Solway F. Firestone, William S. Race, Dean L. Griffith, Ross J.
Mangano, Howard B. Silverman, James D. Dolph, Russell Dann, Dann Brothers
Insurance, Tri-City Brokers, David Kistenbroker, and Freeborn & Peters.

      1.62 "TCG Common Stock" means the common stock of Taylor Capital Group.

      1.63 "Texas Actions" means, collectively, the following nine class action
lawsuits filed in the United States District Court for the Western District of
Texas alleging violations of the federal securities laws and breaches of
fiduciary duties under Delaware law, all of which were consolidated under the
case captioned Michael Sabbia, et al. v. Reliance Acceptance Group, Inc., et
al., C.A. No. 98-0044: (1) Michael Sabbia, et al. v. Reliance Acceptance Group,
Inc., et al., C.A. No. 98-0044; (2) Brian J. O'Connor v. Reliance Acceptance
Group, Inc., et al., C.A. No. 98-0099; (3) Walter M. Goldberg IRA Rollover v.
Reliance Acceptance Group, Inc., et al., C.A. No. 98-0111; (4) Keith Jacobs, et
al. v. Jeffrey W. Taylor, et al., C.A. No. 98-0119; (5) Seymour Irwin Levin, et
al. v. Reliance Acceptance Group, Inc., et al., C.A. No. 98-0120; (6) Darius
Antia, et al.

                                       14
<PAGE>
v. KPMG Peat Marwick, LLP, et al., C.A. No. 98-0146; (7) Bank West Financial
Corp., et al. v. Jeffrey W. Taylor, et al., C.A. No. 98-0184; (8) Harold M.
Nofzinger v. KPMG Peat Marwick, LLP, et al., C.A. No. 98-0188; and (9) Allen
Aron, et al. v. Jeffrey W. Taylor, et al., C.A. No. 98-0222.

      1.64 "Trust" means TCG Capital Trust I, a statutory business trust to be
formed pursuant to the Delaware Business Trust Act, as required by Section
IV.4.4 hereof.

      1.65 "Trust Preferred Securities" means the equity securities to be issued
by the Trust, as described in Section IV.5 hereof.

      1.66 "Unknown Claims" means any Claims which any Person does not know or
suspect to exist in his, her, or its favor at the time of the release of the
Released Party which, if known by him, her, or it, might have affected his, her,
or its settlement with and release of the Released Party, or might have affected
his, her, or its decision not to object to this Stipulation of Settlement.

      1.67 "1996 Examination Report" means that certain report issued by the
State of Illinois Office of Banks and Real Estate and the Federal Reserve Bank
of Chicago (bearing an examination date of June 30, 1996) marked as Plaintiff's
Exhibit 44 in the Consolidated Adversary Proceeding and entitled "Combined
Report of Commercial Bank Examination and Bank Holding Company Inspection."

      1.68 "398 Adversary" means the adversary proceeding captioned David T.
Allen v. Sidney J. Taylor, et al., Adversary Proceeding Number A-98-398, filed
with the Bankruptcy Court and subsequently withdrawn to the District Court,
consolidated with the 399 Adversary, and assigned Civil Action No. 99-146-RRM in
the Consolidated Adversary Proceeding.

      1.69 "399 Adversary" means the adversary proceeding captioned David T.
Allen v. Sidney J. Taylor, et al., Adversary Proceeding Number A-98-399, filed
with the Bankruptcy Court and subsequently withdrawn to the District Court,
consolidated with the 398 Adversary, and assigned Civil Action No. 99-146-RRM in
the Consolidated Adversary Proceeding.

                                       15
<PAGE>
      2.    Dismissal or Bar Orders

      2.1 Before the Stipulation Effective Date, the Estate Representative shall
obtain and provide to the Taylor Defendants a Final order from the Court
dismissing the Consolidated Adversary Proceeding against the Taylor Defendants
with prejudice and without costs.

      2.2 Before the Stipulation Effective Date, either of the following shall
have occurred in the manner prescribed therein: (1) the Final orders described
in Section IV.2.2(A) hereof shall have been entered; or (2) the Class Settlement
Effective Date shall have occurred.

            (A) (i) the Estate Representative shall obtain a Final order from
      the Court (and, unless prior thereto the Court has withdrawn the reference
      of the Bankruptcy Case for purposes of considering this Stipulation of
      Settlement, a Final order from the Bankruptcy Court) permanently enjoining
      and barring any holder of an Equity Interest in Class 5 or Class 5
      Litigation Claim from commencing or continuing litigation against the
      Taylor Defendants based upon any Claims or Causes of Action that are based
      upon, arise out of, or relate in any way to RAG, RAC, the Reliance
      Subsidiaries, or the Split-Off Transaction (including, without limitation,
      Claims asserted against the Taylor Defendants in the Texas Actions, the
      Illinois Action, the Graham Litigation, the Delaware Class Litigation, and
      the Cole Family Chancery Action); and

            (ii) within 14 days from the date on which the Taylor Defendants
      receive notice from the Estate Representative that the order contained in
      Section IV.2.2(A)(i) has been entered, the Taylor Defendants shall file
      motions to obtain the following orders:

                  a. a Final order of the Court (or if the Illinois Action, any
            of the Texas Actions, or the Graham Litigation shall have been
            transferred to another United States District Court(s), from each
            United States District Court in which any such actions are

                                       16
<PAGE>
            pending) that: (I) dismisses each and every one of the Texas
            Actions, the Illinois Action, and the Graham Litigation pending
            before the court(s) as to the Taylor Defendants with prejudice and
            without costs; and (II) pursuant to the provisions of the Private
            Securities Litigation Reform Act, bars all defendants in said
            actions from bringing any Claims or Causes of Action that arise out
            of the Texas Actions, the Illinois Action, and the Graham Litigation
            against the Taylor Defendants, including but not limited to claims
            for contribution or indemnification;

                  b. a Final order from the Delaware Chancery Court dismissing
            the Cole Family Chancery Action as to the Taylor Defendants with
            prejudice and without costs; and

                  c. a Final order from the Delaware Chancery Court dismissing
            the Delaware Class Litigation as to the Taylor Defendants with
            prejudice and without costs.

      2.3 In the motion to be filed by the Estate Representative seeking entry
of the order described in Section IV.2.2(A)(1)(i) hereof, the Estate
Representative shall also move for entry of a Final order from the Court (and,
unless prior thereto the Court has withdrawn the reference of the Bankruptcy
Case for purposes of considering this Stipulation of Settlement, a Final order
from the Bankruptcy Court) permanently enjoining and barring any holders of
Claims classified in Class 4 of the Reorganization Plan from commencing or
continuing litigation against any of the Taylor Defendants that are based upon,
arise out of, or relate in any way to RAG, RAC, the Reliance Subsidiaries, or
the Split-Off Transaction (including, without limitation, Claims of a type
asserted against the Taylor Defendants in the Texas Actions, the Illinois
Action, the Graham Litigation, the Delaware Class Litigation, and the Cole
Family Chancery Action).

                                       17
<PAGE>
      2.4 Any order obtained pursuant to Section IV.2 hereof shall contain the
following provision (or one in substantially conformity therewith):

      This order is entered pursuant to the requirements of that certain "First
      Amended and Restated Stipulation of Settlement By and Among the Estate
      Representative and the Taylor Defendants" dated October 10, 2001, pursuant
      to which cash and securities are being transferred (as provided in Section
      IV.5 of said stipulation) within thirty (30) days following the
      satisfaction of all conditions precedent described in Section IV.6
      thereof.

      3.    Termination Rights

      The following termination rights may be exercised as provided herein, but
shall expire on, and be of no further effect on and after, the Stipulation
Effective Date:

      3.1 The Estate Representative or the Taylor Defendants may terminate this
Stipulation of Settlement upon written notice to the other Settling Parties and
declare it null and void if within 180 days from the Stipulation Execution Date
(A) the Settling Parties have not obtained the order required by Section IV.2.1
hereof or (B) neither of the following has occurred: (1) the obtaining of the
orders required by Sections IV.2.2(A)(i) and (ii) hereof, or (2) the Class
Settlement Effective Date; provided, however, that (i) if the orders required by
Sections IV.2.1 hereof and IV.2.2(A)(i) and (ii) have been entered by the
respective courts in which those actions are pending, the obligations of the
Taylor Defendants and the Estate Representative under this Stipulation of
Settlement shall remain in full force and effect (subject to those orders
becoming Final) for so long as is necessary to make those orders Final, and (2)
if the orders required by Section IV.2.1 hereof and Sections IV.4.1(b), (c),
(d), (e), (f), (g), and (i) of the Class Settlement Agreement have been entered
by the respective courts in which those matters are pending, the obligations of
the Taylor Defendants and the Estate Representative under the Stipulation of
Settlement shall remain in full force and effect (subject to those orders
becoming Final) for so long as is necessary to make those orders Final.

      3.2 The Estate Representative or the Taylor Defendants may terminate this
Stipulation of Settlement upon written notice to the other Settling Parties and
declare it null and void if, prior to the Stipulation Effective Date, Taylor
Capital Group receives objections

                                       18
<PAGE>
from the Federal Reserve Bank to the transactions contemplated by this
Stipulation of Settlement.

      3.3 The Estate Representative or the Taylor Defendants may terminate this
Stipulation of Settlement upon written notice to the other Settling Parties and
declare it null and void if, after 180 days following the Stipulation Execution
Date, all of the following becomes true with respect to either or both of the
Trust Preferred Securities or the TCG Common Stock: (i) (x) the SEC fails to
provide a letter (a "no-action letter") confirming that, based on the facts set
forth in Article I hereof and contingent upon approval of this Stipulation of
Settlement by the Court following a hearing with respect thereto, it will not
recommend any enforcement action to the SEC if Taylor Capital Group issues
shares of TCG Common Stock, and causes the Trust to issue the Trust Preferred
Securities, pursuant to the terms of this Stipulation of Settlement without
registration under the Securities Act or (y) a no-action letter that is provided
by the SEC fails to remain in effect until said securities are issued, or, if
such letter is obtained, the Court fails to enter an order finding that the
transactions contemplated by this Stipulation of Settlement are fair to the
Estate Representative, the Estate Parties, and the members of Class 4 and Class
5 within the meaning of Section 3(a)(10) of the Securities Act; (ii) a
Registration Statement filed under the Securities Act relating to said
securities is not declared effective by the SEC or a stop order suspending the
effectiveness of such Registration Statement is issued or any proceeding for
that purpose is initiated or is threatened by the SEC; and (iii) the Company is
unable to obtain from its securities counsel an opinion, in form and substance
satisfactory to the Estate Representative (whose consent shall not be
unreasonably withheld), which provides that said securities may be issued by the
Company pursuant to the terms of this Stipulation of Settlement without
registration under the Securities Act.

      3.4 The Estate Representative or the Taylor Defendants may terminate this
Stipulation of Settlement upon written notice to the other Settling Parties and
declare it null and void if, within 180 days following the Stipulation Execution
Date, applications for either

                                       19
<PAGE>
or both of the Trust Preferred Securities or the TCG Common Stock to be
registered under Sections 12 of the Securities Exchange Act are not declared
effective by the SEC or, at any time prior to the Stipulation Effective Date,
are subject to any stop order suspending the effectiveness of such registration
statement (which stop order remains in effect for more than twenty (20) days).

      3.5 The Estate Representative may terminate this Stipulation of Settlement
upon written notice to the other Settling Parties and declare it null and void
if, within 180 days following the Stipulation Execution Date, neither the Nasdaq
National Market nor the American Stock Exchange has approved an application for
the TCG Common Stock to be listed, subject to customary conditions, unless the
reason for denial of the applications is (i) the failure to satisfy the "round
lot" holder requirements of these quotation systems or exchanges, (ii) the
uncertainty of when the TCG Common Stock will be available to be traded, or
(iii) the application is deemed to be premature.

      3.6 The Estate Representative or the Taylor Defendants may terminate this
Stipulation of Settlement upon written notice to the other Settling Parties and
declare it null and void if, within 180 days following the Stipulation Execution
Date, Taylor Capital Group fails to obtain the approval of the transactions
contemplated herein by its primary bank lender (which, at present, is LaSalle).

      3.7 The Estate Representative may terminate this Stipulation of Settlement
upon written notice to the other Settling Parties and declare it null and void
if Taylor Capital Group fails to deliver the consideration contemplated by
Section IV.5 of this Stipulation of Settlement within thirty (30) days following
the latest to occur of the conditions precedent to effectiveness of this
Stipulation of Settlement set forth in Section IV.6.1 hereof.

      3.8 Any termination right exercised pursuant to this Stipulation of
Settlement shall become effective twenty (20) days following the receipt by the
other Settling Parties of a Settling Party's notice of intention to exercise
such termination right, which notice shall specify

                                       20
<PAGE>
the reasons for termination (the "Termination Date"); provided, however, that
termination of this Stipulation of Settlement for the reasons specified in the
notice shall not become effective if the reasons for termination specified in
the notice are cured prior to the expiration of said twenty (20) day period.

      4.    Obligations Following Stipulation Execution Date

      The Taylor Defendants shall cause the acts set forth in Sections IV.4.1
through IV.4.7 hereof to be performed by Taylor Capital Group during the period
following the Stipulation Execution Date and prior to the Stipulation Effective
Date, and shall cause the acts set forth in Section IV.4.8 hereof to be
performed by Taylor Capital Group during the periods of time set forth therein.

      4.1 If Taylor Capital Group so elects, as promptly as practicable after
the Stipulation Execution Date, Taylor Capital Group shall prepare and file with
the SEC a request for no-action with respect to the distributions of the Trust
Preferred Securities and/or TCG Common Stock without registration under the
Securities Act, in reliance on the exemption provided by Section 3(a)(10) of the
Securities Act.

      4.2 If Taylor Capital Group does not elect under Section IV.4.1 hereof to
seek a no-action letter from the SEC, or if Taylor Capital Group fails to
receive a favorable response with respect to the distributions of the Trust
Preferred Securities and/or TCG Common Stock contemplated herein, then as
promptly as practicable after such election or failure to receive, Taylor
Capital Group shall either: (i) prepare and file with the SEC a Registration
Statement in connection with the registration under the Securities Act of the
Trust Preferred Securities and/or TCG Common Stock, as the case may be, or (ii)
use its commercially reasonable efforts to issue the Trust Preferred Securities
and/or TCG Common Stock, as the case may be, in a transaction that is exempt
from the registration requirements of the Securities Act and to obtain from its
securities counsel an opinion, in form and substance satisfactory to the Estate
Representative (whose consent shall not be unreasonably withheld), which
provides that such

                                       21
<PAGE>
securities may be issued by Taylor Capital Group pursuant to the terms of this
Stipulation of Settlement without registration under the Securities Act. If
Taylor Capital Group files such Registration Statement (as contemplated by cause
(i) of the preceding sentence), it shall use commercially reasonable efforts to
cause the Registration Statement to become effective as promptly as practicable.
Taylor Capital Group will advise the Estate Representative of the time when the
Registration Statement, if filed, has become effective and of the institution by
the SEC of any stop order proceedings in respect of a Registration Statement and
shall use commercially reasonable efforts to prevent the issuance of any such
stop order and, if issued, to obtain its lifting as soon as possible.

      4.3 If (i) Taylor Capital Group does not elect to seek a no-action letter
from the SEC or fails to receive from the SEC a no-action letter with respect to
the issuance of the Trust Preferred Securities and/or TCG Common Stock (as
contemplated by this Stipulation of Settlement), and (ii) the SEC refuses to
declare the Registration Statement effective, institutes any stop order
proceedings that Taylor Capital Group cannot successfully oppose, or issues a
stop order that Taylor Capital Group is unable to have lifted, then Taylor
Capital Group shall use its commercially reasonable efforts to issue the Trust
Preferred Securities and/or TCG Common Stock, as the case may be, in a
transaction that is exempt from the registration requirements of the Securities
Act and to obtain from its securities counsel an opinion, in form and substance
satisfactory to the Estate Representative (whose consent shall not be
unreasonably withheld), as to the availability of such exemption.

      4.4 Taylor Capital Group shall cause the Trust to be formed as a statutory
business trust in accordance with the Delaware Business Trust Act. Other than
the common interests having a nominal value of the Trust, which shall be issued
to and held by Taylor Capital Group, the Trust Preferred Securities shall be the
only equity interests issued by the Trust and the Trust shall not incur any
liabilities, except with respect to ordinary and necessary maintenance expenses.
The only asset of the Trust shall be the Debentures. Taylor Capital

                                       22
<PAGE>
Group shall be responsible for taking all actions and paying all reasonable
expenses (including, without limitation, reasonable trustee fees, transfer agent
fees, and compliance fees) necessary to insure the continued existence of the
Trust for the purposes set forth herein.

      4.5 Taylor Capital Group shall use commercially reasonable efforts to take
any and all actions required under applicable law (including state securities
laws) to permit issuance of the Trust Preferred Securities and the TCG Common
Stock; provided, however, that neither Taylor Capital Group nor the Trust may
offer or distribute the Trust Preferred Securities or TCG Common Stock in any
state where the offer or distribution is not permitted.

      4.6 Taylor Capital Group shall use its commercially reasonable efforts to
obtain the approval of the transactions contemplated herein from its primary
bank lender.

      4.7 The Taylor Defendants shall notify the Estate Representative any time
any one of them believes that (i) any of the property described in Section IV.5
hereof is reasonably likely not to be delivered or is reasonably likely to be
delayed in being delivered or (ii) any of the approvals contemplated by Sections
IV.3.2, IV.3.3, IV.3.4, IV.3.5, and IV.3.6 hereof is reasonably likely to be
denied or to be delayed in being obtained. Prior to completion of their
performance of their obligations to deliver the property and securities
described in Section IV.5 hereto, to the extent permitted by law and applicable
bank regulations, the Taylor Defendants further agree to promptly give the
Estate Representative a copy of any filing with any bank regulatory agency
(subject to execution of a mutually acceptable confidentiality agreement with
respect thereto).

      4.8 Taylor Capital Group shall file applications, pay fees and expenses,
and otherwise use its commercially reasonable efforts in its dealings with the
SEC and stock exchanges after the Stipulation Effective Date to cause:

            i) the Trust Preferred Securities and the TCG Common Stock to
      continue to be registered under Section 12 of the Securities Exchange Act
      if so required by Section 12, as in effect from time to time, or if
      otherwise required

                                       23
<PAGE>
      to continue satisfying the listing obligations of Section IV.4.8(ii)
      hereof and permitted by Section 12; and

            ii) the Trust Preferred Securities and TCG Common Stock to be
      approved for listing in, or inclusion on, the Nasdaq National Market, the
      American Stock Exchange, or another national stock exchange, for so long
      as the listing criteria in effect of any said exchange are satisfied.

      4.9 Nothing contained in Section IV.4.8 shall prevent Taylor Capital Group
from entering into any transaction approved by its board of directors or from
taking any other action in pursuit of lawful objectives.

      5. Cash and Securities to Be Delivered by the Taylor Defendants

      On the Stipulation Effective Date, the Taylor Defendants shall cause
Taylor Capital Group to deliver the following in the manner prescribed herein:

      5.1 Cash. Fifteen million dollars cash ($15,000,000) by wire transfer to a
bank account designated by the Estate Representative.

      5.2 Debentures and Trust Preferred Securities.

            (A) Certain junior subordinated debentures (the "Debentures") in the
      aggregate face amount of thirty million dollars ($30,000,000) shall be
      delivered to the Trust, which Debentures shall mature thirty (30) years
      following their issuance.

            (B) Thirty million dollars ($30,000,000) in face amount of Trust
      Preferred Securities shall be delivered to the Estate Representative,
      which securities shall be free and clear of any liens, claims,
      encumbrances and security interests immediately prior to their delivery.

            (C) The Debentures and the Trust Preferred Securities issued
      hereunder shall contain the following terms and conditions, along with
      such other terms and conditions as are customary for similar securities:

                                       24
<PAGE>
                  (1) Coupon Rate: The Debentures and the Trust Preferred
            Securities shall each have a coupon rate of ten and one- half
            percent (10.5%) per annum. The coupon shall be cumulative in nature.

                  (2) Distributions. The Debentures and the Trust Preferred
            Securities will pay cash distributions quarterly in arrears on
            January 31st, April 30th, July 31st and October 31st of each year,
            commencing with the first such date following the issuance of the
            Trust Preferred Securities.

                  (3) Deferral of Distributions. As long as Taylor Capital Group
            is not in default under the Debentures, Taylor Capital Group may, at
            one or more times, defer interest payments on the Debentures up to
            twenty (20) consecutive quarters, but not beyond the due date of the
            Trust Preferred Securities on the thirtieth (30th) anniversary of
            their issuance. If Taylor Capital Group defers interest payments on
            the Debentures, the Trust will defer distributions on the Trust
            Preferred Securities in like amount and for like duration, which
            deferred distributions payments will accumulate and earn interest at
            the rate of 10.5% per annum, compounded quarterly. If Taylor Capital
            Group elects to defer distributions on the Debentures, Taylor
            Capital Group shall not make any dividend distributions with respect
            to TCG Common Stock until such time as all omitted or deferred
            interest payments on the Debentures and all omitted or deferred
            distributions on the Trust Preferred Securities shall have been paid
            in full.

                                       25
<PAGE>
                  (4) Early Redemption. Prior to maturity, the Trust may redeem
            the Trust Preferred Securities, in whole or in part, with cash at
            their face amount (plus accrued or deferred and unpaid interest) at
            any time, subject to the prior approval, if required, of the Federal
            Reserve Bank.

                  (5) Guarantee. Taylor Capital Group will guarantee (in a form
            customary for similar issuances) that the Trust will use its assets
            to pay distributions on the Trust Preferred Securities and to pay,
            upon the liquidation of the Trust, the lesser of (i) the remaining
            amounts owing under the Trust Preferred Securities or (ii) the
            Trust's remaining assets.

                  (6) Transferability. Neither the Debentures nor the Trust
            Preferred Securities shall contain any terms restricting their
            transferability, except for customary terms as to minimum principal
            amounts that may be transferred.

                  (7) Voting Rights. The Trust Preferred Securities shall have
            no voting rights.

      5.3 Common Stock.

            (A) Such number of shares of TCG Common Stock, par value $0.01 per
      share, shall be delivered to the Estate Representative as shall represent
      fifteen percent (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 Issued Shares"), which
      shares shall be free and clear of any liens, claims, encumbrances, and
      security interests immediately prior to their delivery.

                                       26
<PAGE>
            (B) Anti-Dilution Rights. Taylor Capital Group agrees that, for a
      period of eighteen (18) months following the Stipulation Effective Date,
      Taylor Capital Group and its subsidiaries shall not either (i) grant stock
      options to any member of the Taylor family at an exercise price of less
      than the "fair market value" of the TCG Common Stock as of the date of the
      grant as determined by the non-Taylor family members of Taylor Capital
      Group's Board of Directors, supported by an independent opinion as to the
      "fair market value" of the TCG Common Stock (the "Determined Fair Market
      Value"), or (ii) issue non-option shares of TCG Common Stock to any member
      of the Taylor family for less than the Determined Fair Market Value,
      except in accordance with Taylor Capital Group's customary practices.

      6. Stipulation Effective Date; Conditions Precedent

      6.1 The conditions precedent to the Stipulation Effective Date are as
follows:

            (A) the order required by Section IV.2.1 hereof shall have become
      Final and either (1) the orders required by Section IV.2.2(A) hereof shall
      have become Final or (2) the Class Settlement Effective Date shall have
      occurred;

            (B) Taylor Capital Group shall have received at least one of the
      items contemplated by Section IV.3.3 hereof (i.e., a no-action letter and
      corresponding order of the Court, an effectiveness order, or an opinion of
      counsel), unless such requirement shall have been waived in writing by
      Taylor Capital Group and the Estate Representative;

            (C) Taylor Capital Group shall have obtained the approval of the
      transactions contemplated herein by its primary bank lender, as
      contemplated by Section IV.3.6 hereof, unless such requirement shall have
      been waived in writing by Taylor Capital Group and the Estate
      Representative;

                                       27
<PAGE>
            (D) the Trust Preferred Securities and TCG Common Stock shall be
      registered under Section 12 of the Securities Exchange Act and the TCG
      Common Stock shall be approved for listing on the Nasdaq National Market
      or the American Stock Exchange, unless such requirements have been waived
      in writing by the Estate Representative; and

            (E) the Court shall have entered an order in form substantially
      similar to the proposed form of order attached hereto as Exhibit A.

      6.2 Entry of the Final order contemplated by Section IV.2.3 hereof shall
not be a condition precedent to the Stipulation Effective Date.

      6.3 Acceptance of the deliveries contemplated by the Stipulation of
Settlement by the Settling Parties as of the Settlement Effective Date shall
constitute full and complete satisfaction of all of the Settling Parties'
obligations under this Stipulation of Settlement.

      7. Releases; Contribution Bar

      7.1 On the Stipulation Effective Date, the following mutual releases shall
become effective:

            (A) The Estate Parties fully, finally, and forever release,
      relinquish, and discharge the Taylor Defendant Released Parties from any
      and all Claims, from the beginning of time up to including the Stipulation
      Effective Date, of every nature and kind whatsoever, known or unknown,
      suspected or unsuspected, fixed or contingent (including, but not limited
      to, claims for fraudulent conveyance, negligence, gross negligence,
      professional negligence, breach of duty of care and/or breach of duty of
      loyalty and/or breach of duty of candor, fraud, breach of fiduciary duty,
      mismanagement, corporate waste, breach of contract, negligent
      misrepresentation, contribution, indemnification, any other common law or
      equitable claims, and violations of any state or federal statutes, rules
      or regulations), that the Estate Parties have asserted or could

                                       28
<PAGE>
      have asserted in this or any other forum against any of the Taylor
      Defendant Released Parties and are based upon, arise out of, or relate in
      any way to RAG, RAC, the Reliance Subsidiaries, or the Split-Off
      Transaction.

            (B) The Taylor Defendants fully, finally, and forever release,
      relinquish, and discharge each of the Estate Released Parties from any and
      all Claims, from the beginning of time up to including the Stipulation
      Effective Date, of every nature and kind whatsoever, known or unknown,
      suspected or unsuspected, fixed or contingent (including, but not limited
      to, claims for negligence, gross negligence, professional negligence,
      breach of duty of care and/or breach of duty of loyalty and/or breach of
      duty of candor, fraud, breach of fiduciary duty, mismanagement, corporate
      waste, breach of contract, negligent misrepresentation, contribution,
      indemnification, any other common law or equitable claims, and violations
      of any state or federal statutes, rules or regulations), that the Taylor
      Defendants have asserted or could have asserted in this or any other forum
      against any of the Estate Released Parties and are based upon, arise out
      of, or relate in any way to RAG, RAC, the Reliance Subsidiaries, or the
      Split-Off Transaction.

      7.2 The Estate Parties agree that any damages recovered by the Estate
Parties against any other tortfeasor, as a result of any injury or damages found
to have been also caused by any of the Taylor Defendant Released Parties, shall
(upon entry of an order of court) be reduced in accordance with the provisions
of 10 Del. C. Chapter 63 to the extent of the Taylor Defendant Released Parties'
pro rata share of the Estate Parties' damages recoverable against all other
joint tortfeasors. The foregoing is solely intended to comply with 10 Del. C.
Section 6304 so as to preclude any liability of the Taylor Defendant Released
Parties to other joint tortfeasors, if any, for contribution.

                                       29

<PAGE>
      7.3 Following the Stipulation Execution Date, and in sufficient time to
allow for a hearing thereon by the Court prior to the Court's scheduled final
hearing on the Class Settlement Agreement, the Settling Parties shall jointly
file with the Court a motion requesting a finding that this settlement has been
made and entered into in good faith for purposes of the Illinois Contribution
Among Tortfeasors Act, 740 ILCS 100/1, et seq. If the Court refuses to enter
such an order, the Taylor Defendants have the option, at their discretion and
election, to terminate this Stipulation upon written notice to the Settling
Parties and to declare this Stipulation of Settlement null and void.

      8. Certain Representations and Warranties

      8.1 The Taylor Defendants represent and warrant as follows:

            (A) They have been authorized to enter into this Stipulation of
      Settlement with the Estate Parties and perform the obligations required of
      them hereunder.

            (B) The execution and delivery of this Stipulation of Settlement by
      Taylor Capital Group and the Taylor Defendants do not, and the performance
      of the transactions contemplated herein by Taylor Capital Group and the
      Taylor Defendants shall not, result in any material breach of any material
      contract, agreement, or other instrument to which Taylor Capital Group or
      any of the Taylor Defendants are a party, assuming the consents
      contemplated by this Stipulation of Settlement are obtained.

            (C) Taylor Capital Group is duly incorporated, validly existing, and
      in good standing under the laws of the state of Delaware.

            (D) Upon its formation, the Trust shall be duly incorporated and
      validly existing and in good standing under the laws of the state of
      Delaware.

            (E) Taylor Capital Group does not hold any interest in any entity
      other than Cole Taylor Bank, and CT Mortgage, Solutions On-Site LLC, Alpha

                                       30
<PAGE>
      Capital Fund II, L.P., Alpha Capital Fund III, L.P., and Primecom
      Interactive, Inc. (together, the "TCG Entities"), owns all of the issued
      and outstanding equity securities of Cole Taylor Bank and CT Mortgage, and
      its interests in the TCG Entities are owned free and clear of any pledge,
      lien, security interest, or encumbrance, other than as listed on the
      "Schedule of Permitted Liens" attached hereto as Exhibit B.

            (F) Taylor Capital Group's certificate of incorporation and by-laws,
      each as amended through the Stipulation Execution Date (complete and
      correct copies of which have been provided previously to the Estate
      Representative) are in full force and effect.

            (G) Taylor Capital Group is not in violation of any of the material
      provisions of such certificate of incorporation or by-laws.

            (H) The authorized capital stock of Taylor Capital Group as of the
      Stipulation Execution Date consists of (i) 7,000,000 shares of TCG Common
      Stock and (ii) 3,000,000 shares of preferred stock, $0.01 par value, of
      which 1,530,000 shares have been designated 9.0% Noncumulative Perpetual
      Preferred Stock, Series A (the "Series A Preferred Stock").

            (I) No shares of capital stock or other voting or non-voting equity
      securities of any kind whatsoever (including options to purchase such
      stock or securities) were issued or outstanding as of the Stipulation
      Execution Date, except for the following: (i) 4,601,526 shares of TCG
      Common Stock, (ii) 1,530,000 shares of Series A Preferred Stock, (iii)
      127,144 shares of TCG Common Stock held in the treasury of the Taylor
      Capital Group, and (iv) the options, warrants, or other securities
      exercisable or convertible into TCG Common Stock as identified on a
      schedule to be delivered to the Estate Representative on the Stipulation
      Effective Date (the "Option Shares"). All

                                       31

<PAGE>
      securities (other than the Option Shares) are validly issued, fully paid,
      nonassessable, and not subject to preemptive rights.

            (J) Management of Taylor Capital Group is unaware of any non-
      compliance with any federal, state, and local statutes, rules, or
      regulations by either Taylor Capital Group or Cole Taylor Bank, which
      non-compliance management believes would have a material adverse effect on
      either Taylor Capital Group or Cole Taylor Bank.

            (K) Cole Taylor Bank is validly existing, in good standing under the
      laws of the State of Illinois, and deemed to be "well capitalized"
      pursuant to regulatory definitions.

            (L) Cole Taylor Bank has a composite CAMEL rating at a level equal
      to or better than the composite CAMEL rating assigned to Cole Taylor Bank
      in the 1996 Examination Report.

      8.2 The Estate Parties represent and warrant as follows:

            (A) They are authorized to enter into and perform their obligations
      under this Stipulation of Settlement, and they have obtained any and all
      instructions and approvals they are required to obtain under the terms of
      the Reorganization Plan to enter into and perform his obligations under
      this Stipulation of Settlement, including but not limited to the approvals
      of the Class 4 Designee (as defined in the Reorganization Plan) and the
      requisite number of Class 5 Designees (as defined in the Reorganization
      Plan). The Estate Representative shall provide written evidence of such
      authorization at the time of the Stipulation Execution Date.

            (B) He has not assigned any rights, Claims, or Causes of Action that
      were asserted or could have been asserted in connection with, under, or
      arising out of the Consolidated Adversary Proceeding.

                                       32
<PAGE>
      8.3 All representations contained in Sections IV.8.1 and IV.8.2 by the
Taylor Defendants and the Estate Representative shall be true and correct as of
the Stipulation Effective Date as if made on such date, except for changes
occurring in the ordinary course of business or resulting from a change in the
capital structure of Taylor Capital Group in connection with a split in TCG
Common Stock. All actions based on any breach of the representations and
warranties contained in Sections IV.8.1 and IV.8.2 hereof shall be forever
barred and enjoined if not commenced within eighteen months following the
Stipulation Effective Date. The sole remedy of the Settling Parties for breach
of any representation or warranty contained in Sections IV.8.1 and IV.8.2 hereof
of which they are aware prior to the Stipulation Effective Date shall be to
terminate this Stipulation of Settlement by notice as provided in Section IV.3.8
hereof to all Settling Parties.

      8.4 Insurance Recoveries.

            (A) If the Class Settlement Agreement has not yet been approved as
      of the Stipulation Effective Date by Final order entered by the Court, the
      Taylor D&O Defendants represent and warrant that on and after the
      Stipulation Effective Date they shall turn over and pay to the Estate
      Representative all Insurance Recoveries obtained by them, for distribution
      by the Estate Representative in the following manner:

                  (1) the proceeds obtained from the CNA Insurance Policy and
            the Reliance Insurance will be retained by the Estate Representative
            on behalf of, and for the sole benefit of, the holders of Class 5
            Litigation Claims;

                  (2) the first $5,000,000 in proceeds obtained from or related
            to the National Union Policy shall be paid directly to the Estate
            Representative for the sole and exclusive benefit of the
            Post-Confirmation Estate (subject to the distribution priorities

                                       33
<PAGE>
            required by Section IV.2.4 of the Class Settlement Agreement or as
            otherwise approved by Final order of the Court or the Bankruptcy
            Court);

                  (3) the next proceeds obtained from or related to the National
            Union Policy (including both contractual and extracontractual
            recoveries obtained in the Insurance Litigation related to the
            National Union Policy), in an amount equal to the product of the
            following, shall be paid directly to the Estate Representative for
            the sole and exclusive benefit of the Post-Confirmation Estate: (i)
            a fraction whose numerator shall equal the total amount that would
            be paid to the Class Settlement Fund from recoveries obtained under
            the National Union Policy pursuant to Section IV.8.4(A)(6) hereof
            absent the distributions required by this Section IV.8.4(A)(3) on
            account of Extraordinary Costs and whose denominator shall equal the
            sum of the numerator plus the total amount paid the Estate
            Representative pursuant to Section IV.8.4(A)(2), multiplied by (ii)
            the total Extraordinary Costs;

                  (4) the next $2,000,000 in proceeds obtained from or related
            to the National Union Policy shall be paid directly to Taylor
            Capital Group as compensation for advances made to counsel of record
            in the Insurance Litigation on account of legal fees charged (or to
            be charged) and expenses incurred (or to be incurred) in the
            Insurance Litigation, regardless of the amount actually incurred;

                                       34
<PAGE>
                  (5) the next proceeds obtained from or related to the National
            Union Policy, in an amount equal to 10% of the positive difference
            (if any) between the total amount of Insurance Recoveries obtained
            from or related to the National Union Policy and $15 million, shall
            be paid directly to Taylor Capital Group as further compensation for
            advances made to its counsel of record in the Insurance Litigation
            on account of legal fees charged (or to be charged) and expenses
            incurred (or to be incurred) in the Insurance Litigation, regardless
            of the amount actually incurred; and

                  (6) all remaining proceeds obtained from or related to the
            National Union Policy shall be paid directly to the Class Settlement
            Fund for the exclusive benefit of the Class.

            (B) The Taylor D&O Defendants make no warranties or representations
      regarding either the assignability, value, collectibility, or
      recoverability of Insurance Recoveries under any of the Insurance
      Policies.

      9. Miscellaneous Provisions

      9.1 Except as expressly provided herein, each Settling Party shall bear
its own costs. Under no circumstances shall the Taylor Defendants be required to
pay any amounts, provide any property, or perform any acts with respect to this
Stipulation of Settlement beyond those specified in this Stipulation of
Settlement.

      9.2 The Settling Parties acknowledge that this Stipulation of Settlement
is entered into after extensive discovery has been completed in the Consolidated
Adversary Proceeding, and that they have had a full opportunity to evaluate with
their legal counsel the merits of all claims that are being asserted, or that
could have been asserted, in the Consolidated Adversary Proceeding.

                                       35
<PAGE>
      9.3 This Stipulation of Settlement 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 Settling Parties shall exchange
among themselves signed counterparts of this Stipulation of Settlement.

      9.4 The Court shall retain jurisdiction with respect to implementation and
enforcement of the terms of this Stipulation of Settlement, and the Settling
Parties submit to the jurisdiction of the Court for purposes of implementing and
enforcing the settlement embodied in the Stipulation. Any claim or dispute
arising out of or relating in any way to this Stipulation of Settlement must be
brought before the Court.

      9.5 This Stipulation of Settlement shall be considered to have been
negotiated, executed and delivered, and to be wholly performed, in the State of
Illinois, and the rights and obligations of the Parties to the Stipulation shall
be construed and enforced in accordance with the laws of the State of Illinois
without giving effect to the choice of law principles of the State of Illinois
or any other State or jurisdiction.

      9.6 The Settling Parties (a) acknowledge that it is their intent to
consummate this Stipulation of Settlement, (b) agree to cooperate to the extent
necessary to effectuate and implement all terms and conditions of this
Stipulation of Settlement and to exercise their commercially reasonable efforts
to accomplish the terms and conditions of this Stipulation of Settlement and
obtain entry of the orders of Court contemplated herein, and (c) agree to
exchange drafts of orders and transactional documents to be delivered on or
before the Stipulation Effective Date. If any party fails to object within ten
(10) business days following receipt to an aspect of any exchanged drafts of
orders or transactional documents designated as final, then such designated
drafts shall be deemed to be in conformity with this Stipulation of Settlement
and acceptable to the Settling Parties.

      9.7 The Settling Parties agree that the terms of this Stipulation of
Settlement reflect a good faith settlement of the Claims released herein and of
the other terms and conditions

                                       36
<PAGE>
contained herein, reached voluntarily after consultation with experienced legal
counsel. Neither this Stipulation of Settlement nor the settlements contained
herein, nor any act performed, document executed, or statement made pursuant to,
or in support or in furtherance of, this Stipulation of Settlement or the
settlements contained herein: (i) is or may be deemed to be or may be used as an
admission of, or evidence of, the validity of any Released Claim or of any
wrongdoing or liability of any of the Released Parties; or (ii) is or may be
deemed to be or may be used as an admission of, or evidence of, any fault or
omission of any of the Released Parties in any civil, criminal or administrative
proceeding in any court, administrative agency, or other tribunal. Any of the
Released Parties may file this Stipulation of Settlement and/or judgment in any
other action that may be brought against them in order to support a defense or
counterclaim based on principles of res judicata, collateral estoppel, release,
good faith settlement, accord and satisfaction, judgment bar or reduction, or
any theory of claim preclusion or issue preclusion or similar defense or
counterclaim. The Settling Parties may file this Stipulation of Settlement in
any proceeding brought to enforce any of its terms.

      9.8 The Released Parties intend this Stipulation of Settlement to be a
final and complete resolution of all disputes between them with respect to the
Claims released herein. This Stipulation of Settlement compromises Claims which
are contested, and it shall not be deemed an admission by any Settling Party as
to the merits of any Claim or defense. The Settling Parties acknowledge and
agree that they have at all times complied with the requirements of Federal Rule
of Civil Procedure 11. The Settling Parties reserve their right to rebut, in a
manner that such party determines to be appropriate, any contention made in any
manner that the Claims released herein were brought or defended in bad faith or
without reasonable basis.

                                       37
<PAGE>
      9.9 All agreements made and orders entered during the course of the
Consolidated Adversary Proceeding relating to the confidentiality of information
shall survive this Stipulation of Settlement.

      9.10 This Stipulation of Settlement may be amended or modified only by a
written instrument signed by or on behalf of the party to be bound by such
modification.

      9.11 This Stipulation of Settlement entirely amends and restates that
certain "Stipulation of Settlement By and Among the Estate Representative and
the Taylor Defendants" dated August 29, 2001, and constitutes the entire
agreement between the Settling Parties, and no representations, warranties, or
inducements have been made to any party concerning this Stipulation of
Settlement other than the representations, warranties, and covenants contained
and memorialized herein.

      9.12 All of the Exhibits to this Stipulation of Settlement are material
and integral parts thereof and are fully incorporated therein by this reference.

      9.13 This Stipulation of Settlement shall not be construed more strictly
against one party than another merely because it, or any part of it, may have
been prepared by counsel for one of the parties. The Settling Parties
acknowledge and agree that the Stipulation of Settlement is the result of
arm's-length negotiations between the parties and all parties have contributed
substantially and materially to the preparation of this Stipulation of
Settlement.

      9.14 All counsel and any other Person executing this Stipulation of
Settlement or any related settlement documents represent and warrant that they
have the full authority to take appropriate action required or permitted to be
taken pursuant to the Stipulation of Settlement to effectuate its terms.

      9.15 This Stipulation of Settlement shall be binding upon and shall inure
to the benefit of the successors and assigns of the Settling Parties.

      9.16 All notices required or permitted hereunder or process relating
hereto shall be in writing and signed by the party giving notice, shall be
effective only upon delivery, and shall

                                       38
<PAGE>
be delivered by personal delivery, facsimile (with a confirming copy sent by
personal delivery or overnight courier), or by Federal Express or similar
service and a delivery receipt obtained, addressed as follows:

         If to the Estate Parties:

                  Robert F. Coleman, Esq.
                  ROBERT F. COLEMAN & ASSOCIATES
                  77 West Wacker Drive
                  Suite 4800
                  Chicago, Illinois  60601
                  Telephone: (312) 444-1000
                  Facsimile: (312) 444-1028

         If to the Taylor Defendants:

                  Steven P. Handler, Esq.
                  McDERMOTT, WILL & EMERY
                  227 West Monroe Street
                  Suite 3100
                  Chicago, Illinois  60606
                  Telephone:  (312) 372-2000
                  Facsimile:  (312) 984-7700

                        *          *          *         *

                  (REMAINDER OF PAGE LEFT INTENTIONALLY BLANK)

                                       39
<PAGE>
      IN WITNESS WHEREOF, the Settling Parties have caused this Stipulation of
Settlement to be executed by their duly authorized attorneys.

                            COUNSEL FOR THE ESTATE PARTIES

                                     ROBERT F. COLEMAN & ASSOCIATES

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

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

                                           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

                                       40
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                        <C>
I.    THE ESTATE'S LITIGATION                                                  1

      A.    The RAG Bankruptcy Filing and Plan Confirmation ..............     1

      B.    The Estate's Adversary Proceedings ...........................     2

II.   DEFENDANTS' STATEMENTS AND DENIALS OF WRONGDOING AND LIABILITY .....     4

III.  CLAIMS OF THE ESTATE REPRESENTATIVE AND BENEFITS OF
      THE STIPULATION OF SETTLEMENT ......................................     4

IV.   TERMS OF STIPULATION AND AGREEMENT OF SETTLEMENT ...................     5

      1.    Definitions and Interpretations ..............................     5

      2.    Dismissal or Bar Orders ......................................    18

      3.    Termination Rights ...........................................    21

      4.    Obligations Following Stipulation Execution Date .............    25

      5.    Cash and Securities to Be Delivered by the Taylor Defendants .    28

      6.    Stipulation Effective Date; Conditions Precedent .............    32

      7.    Releases; Contribution Bar ...................................    33

      8.    Certain Representations and Warranties .......................    36

      9.    Miscellaneous Provisions .....................................    42
</TABLE>

EXHIBITS

         EXHIBIT A   [Proposed] Order re Taylor Settlement Agreement

         EXHIBIT B    Permitted Liens
<PAGE>
                                    EXHIBIT B

                                 PERMITTED LIENS

The pledge of 1,500,000 shares of common stock of Cole Taylor Bank to LaSalle
National Bank

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]