Document:

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                                                                   EXHIBIT 10.52

                           TAYLOR CAPITAL GROUP, INC.
                              INCENTIVE BONUS PLAN

         Section 1. PURPOSE. The purpose of the Taylor Capital Group, Inc.
Incentive Bonus Plan (the "Plan") is to further the growth and profitability of
Taylor Capital Group, Inc. (the "Company") by offering incentives, in addition
to current compensation, to designated officers of the Company and its
subsidiaries ("Subsidiaries"). The Plan is intended to provide an incentive
compensation opportunity to participating officers of the Company and its
Subsidiaries which is not subject to the deduction limitations contained in
Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code"),
and should be construed to the extent possible as providing for remuneration
which is "performance-based compensation" within the meaning of Section 162(m)
of the Code and Treasury Regulations thereunder.

         Section 2. ADMINISTRATION. The Plan shall be administered by the
Compensation Committee (the "Committee") of the Board of Directors of the
Company (the "Board") or any subcommittee thereof consisting of at least two
directors, each of whom is an "outside director" within the meaning of Section
162(m) of the Code. The Committee shall establish the performance objectives for
any Performance Period (as defined below) in accordance with Section 4 and
certify whether such performance objectives have been attained. The Committee is
authorized, subject to the provisions of the Plan, from time to time to
establish such rules and regulations and make such interpretations and
determinations as it may deem necessary or advisable for the proper
administration of the Plan, and all rules, regulations, interpretations and
determinations shall be binding on all participants.

         Section 3. PARTICIPATION. Employees eligible to participate in the Plan
shall consist of such officers of the Company and its Subsidiaries as may be
designated by the Compensation
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Committee in its sole discretion. The Committee shall, at the beginning of each
Performance Period, determine, except as otherwise contemplated by the last
sentence of Section 5(b), which of such officers shall participate in the Plan
("Participants") for the particular Performance Period, and shall establish the
terms and conditions of such participation. All officers designated as
Participants shall be promptly advised of their participation.

         Section 4.  PERFORMANCE PERIODS; PERFORMANCE CRITERIA.

          (a) For purposes of the Plan, a "Performance Period" means a fiscal
year of the Company, or a series of two or more consecutive fiscal years, as
determined by the Committee.

         (b) Within 90 days after each Performance Period begins, the Committee
shall establish, in writing, the performance objective or objectives which must
be satisfied in order for a Participant or class of Participants to receive an
incentive award for such Performance Period. Any such performance objectives
will be based upon one or more of the following criteria, as determined by the
Committee: (i) earnings per share; (ii) net income or net operating income
(before or after taxes and before or after extraordinary items); (iii) sales,
revenues or expenses; (iv) cash flow return on investments which equals net cash
flows divided by owners equity; (v) earnings before or after taxes; (vi)
operating profits; (vii) gross revenues; (viii) gross margins; (ix) share price
including, but not limited to, growth measures and total shareholder return);
(x) economic value added, which equals net income or net operating income minus
a charge for use of capital; (xi) operating margins; (xii) market share; (xiii)
revenue growth; (xiv) cash flow; (xv) increase in customer base; (xvi) return on
equity, assets, capital or investment; (xvii) working capital; (xviii) net
margin; and (xix) such other performance criteria as may be determined by the
Board in its sole discretion. Performance objectives may be based upon
Company-wide, subsidiary, divisional, project team, and/or individual
performance. The performance objectives established by the Committee for any

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Performance Period may be expressed in terms of attaining a specified level of
the performance objective or the attainment of a percentage increase or decrease
in the particular objective, and may involve comparisons with respect to
historical results of the Company and its Subsidiaries and/or operating groups
or segments thereof, all as the Committee deems appropriate to achieve the
purposes of the Plan as set forth in Section 1 hereof. The performance
objectives established by the Committee for any Performance Period may be
applied to the performance of the Company relative to a market index, a peer
group of other companies or a combination thereof, all as determined by the
Committee for such Performance Period. After the Committee establishes the
performance objective or objectives that must be satisfied in order for a
Participant to receive an incentive award for any Performance Period, the
Committee shall provide the Participant with written notice of such award and
the related performance objective or objectives. Such written notice shall
include such other terms and conditions as may be determined by the Committee in
addition to those set forth in this Plan, including but not limited to
provisions relating to the treatment of outstanding awards under this Plan upon
a change of control of the Company.

         (c) Each performance objective established by the Committee with
respect to any Performance Period must be based upon or measured by criteria
that would permit a third party, having knowledge of the relevant facts, to
determine whether and to what extent the performance objective was satisfied and
calculate the amount of the incentive award payable to a Participant. Attainment
of performance objectives shall be determined in accordance with generally
accepted accounting principles and certified in writing by the Committee. The
Committee is authorized to make adjustments in the method of calculating
attainment of performance objectives as follows: (i) to exclude the dilutive
effects of acquisitions or joint ventures; (ii) to assume that any business
divested by the Company achieved performance objectives at targeted levels
during the balance of

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a Performance Period following such divestiture; (iii) to exclude restructuring
and/or other nonrecurring charges; (iv) to exclude the effects of changes to
generally accepted accounting standards required by the Financial Accounting
Standards Board; (v) to exclude the impact of any "extraordinary items" as
determined under generally accepted accounting principles; (vi) to exclude the
effect of any change in the outstanding shares of common stock of the Company by
reason of any stock dividend or split, stock repurchase, reorganization,
recapitalization, merger, consolidation, spin-off, combination or exchange of
shares or other similar corporate change, or any distributions to common
shareholders other than regular cash dividends; and (vii) to exclude any other
unusual, non-recurring gain or loss or other extraordinary item.

         (d) The performance objectives established by the Committee must
preclude the discretion to increase the amount of any incentive award payable to
a Participant. However, to the extent permitted under Section 162(m) of the Code
and the Treasury Regulations thereunder, the Committee retains the discretion to
eliminate or decrease the amount of any incentive award otherwise payable to a
Participant. Notwithstanding any other provision in this Plan, neither any
discretion given to the Committee with respect to Participants' incentive
awards, or the amount payable thereunder, nor any rights given to the Committee,
if any, to adjust the performance objectives relating to an incentive award, may
be exercised after a Change in Control which in any way adversely affects the
amount of an incentive award for the Performance Period in which the Change in
Control occurred (or for the immediately preceding Performance Period, if
payment with respect thereto has not been made before the Change in Control
occurs), or any Participant's rights with respect to either such Performance
Period. For purposes of this Plan, the term "Change in Control" shall have the
meaning set forth in Exhibit A hereto, as such Exhibit A may be amended or
modified from time to time by the Committee.

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         (e) The maximum amount that may be paid to any one Participant under
the Plan may not exceed (i) in the case of a Performance Period consisting of
one fiscal year, $1,000,000, or (ii) in the case of a Performance Period
consisting of more than one fiscal year, $3,000,000.

         Section 5.  PAYMENTS.

         (a) If the Committee certifies in writing that the performance
objectives established for the relevant Performance Period under Section 4(b)
have been satisfied, each designated Participant with respect to such
Performance Period who is actively employed by the Company or a Subsidiary on
the date the incentive award amounts are paid shall receive the incentive award
earned under this Plan for the Performance Period based on the actual level of
achievement of the performance objectives. Payment of incentive awards shall be
made to Participants, in a lump sum cash payment, as soon as practicable after
the Committee makes its determination under this Section 5(a) (but in no event
more than 120 days following such Performance Period), unless the Participant
has elected in a timely manner to defer receipt of all or a portion of his or
her incentive award for the Performance Period as provided in Section 6 hereof.

         (b) A Participant must be actively employed by the Company or one of
its Subsidiaries on the date the incentive award amounts are paid to receive an
incentive award for the Performance Period; provided however that if a
Participant's employment is terminated prior to the date the incentive award
amounts are paid by reason of the Participant's death, disability or Qualified
Retirement, the Participant (or Participant's beneficiary in the event of his or
her death) shall be entitled to receive a pro rated incentive award for the
Performance Period based on such proration formulas or criteria as may be
determined by the Committee in its sole discretion. For purposes of this Plan,
"Qualified Retirement" means a termination of employment after age 65, or after
age 62 with 10 years of prior service, except that Qualified Retirement shall
not include a termination of

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the Participant's employment by the Company for Cause (as defined below). If a
Participant's employment with the Company or one of its Subsidiaries begins
after the first day of a Performance Period or if an individual becomes a
Participant after the first day of a Performance Period, the Participant's
incentive award for such Performance Period shall automatically be pro-rated
based on such proration formulas or criteria as may be determined by the
Committee in its sole discretion.

         (c) For purposes of this Plan, the term "Cause" means termination of a
Participant's employment by the Company because of the Participant's (i) failure
or refusal to perform all or a material portion of his or her employment duties,
(ii) conviction of, or a plea of guilty or nolo contendere, to a felony or a
crime involving moral turpitude, (iii) an act of fraud or dishonesty against the
Company, (iv) repeated failure or refusal to follow policies or directives
established by the Company's Board of Directors, or (v) a material breach of the
terms of the Participant's employment agreement or any other agreement between
the Participant and the Company.

         Section 6. DEFERRAL. Payment of an incentive award hereunder on a
deferred basis may be permitted at the election of the Participant on terms and
conditions as may be established by the Committee in its sole discretion, which
may include, without limitation, provisions for the payment or crediting of
reasonable interest or other earnings on deferred payments, as may be determined
by the Committee.

         Section 7.  MISCELLANEOUS.

         (a) Beneficiary. In the event of a Participant's termination of
employment due to the Participant's death, any amounts that are otherwise due
and payable to the Participant under this Plan shall thereafter be paid to the
Participant's "beneficiary" which, for purposes of this Plan, means the
Participant's estate.

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         (b) Assets. No assets shall be segregated or earmarked in respect of
this Plan and no Participant shall have any right to assign, transfer, pledge or
hypothecate his or her interest in the Plan. All amounts payable pursuant to the
terms of this Plan shall be paid from the general assets of the Company.

         (c) Liability. No member of the Committee shall be liable for any act
or omission hereunder by any other member or employee or by any agent to whom
duties in connection with the administration of the Plan have been delegated or,
except in circumstances involving such member's bad faith, gross negligence or
fraud, for anything done or omitted to be done by such member. The Company will
fully indemnify and hold each member of the Committee harmless from any
liability hereunder, except in circumstances involving such member's bad faith,
gross negligence or fraud. The Company or the Committee may consult with legal
counsel, who may be counsel for the Company, with respect to its obligations or
duties hereunder, or with respect to any action or proceeding or any question of
law, and shall not be liable to any participant or otherwise with respect to any
action taken or omitted by it in good faith pursuant to the advice of such
counsel.

         (d) Amendment or Termination. Notwithstanding any other provision of
this Plan, the Board may at any time, and from time to time, amend, in whole or
in part, any or all of the provisions of the Plan, or suspend or terminate it
entirely; provided, however that any such amendment, suspension or termination
may not, without the Participant's consent, adversely affect any incentive
awards previously made prior to the effective date of such amendment, suspension
or termination. Unless otherwise determined by the Board, an amendment that
requires stockholder approval in order to comply with Section 162(m) of the
Code, or any other law, regulation or stock

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exchange requirement, shall not be effective unless approved by the requisite
vote of the shareholders.

         (e) Expenses. The Company will bear all expenses incurred by it in
administering this Plan.

         (f) Withholding. The Company shall have the right to deduct from any
payment to be made pursuant to this Plan, or to otherwise require prior to the
payment of any amount hereunder, payment by the Participant of any Federal,
state or local taxes required by law to be withheld.

         (g) No Obligation. Subject to Section 8(d) hereof, neither this Plan
nor any awards made hereunder shall create any obligation on the part of the
Company or any Subsidiaries to continue this Plan. Neither this Plan nor any
award made pursuant to this Plan shall give any Participant or other employee
any right with respect to continuance of employment by the Company or any of its
Subsidiaries, nor shall there be a limitation in any way on the right of the
Company or any of its Subsidiaries to terminate such participant's employment at
any time for any reason whatsoever.

         (h) No Assignment. No right or interest of any Participant in this Plan
shall be assignable or transferable, and no right or interest of any Participant
hereunder shall be subject to any lien, obligation or liability of such
Participant.

         (i) No Limitation on Corporate Actions. Nothing contained in the Plan
shall be construed to prevent the Company or any Subsidiary from taking any
corporate action outside of this Plan which is deemed by it to be appropriate or
in its best interest, whether or not such action would have an adverse effect on
any awards made under the Plan. No employee or other person shall have any claim
against the Company or any Subsidiary as a result of any such action.

         (j) Successors. The obligations of the Company under the Plan shall be
binding upon any successor corporation or organization which shall succeed to
substantially all of the assets and

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business of the Company and the term "Company," wherever used in this Plan,
shall include any such corporation or organization after such succession.

         (k) Governing Law. This Plan and all actions taken in connection
herewith shall be governed and construed in accordance with the laws of the
State of Illinois (regardless of the law that might otherwise govern under
applicable Illinois principles of conflict of laws).

         (l) Shareholder Approval; Term of Plan. The Plan was adopted by the
Board on June 20, 2002. The Plan is adopted, subject to stockholder approval,
effective as of June 20, 2002, and shall remain in effect, subject to the right
of the Board of Directors to amend or terminate the Plan at any time pursuant to
Section 8(d), until December 31, 2006. The Plan and any incentive awards granted
hereunder shall be null and void if stockholder approval of the Plan is not
obtained within twelve (12) months of the adoption of the Plan by the Board.

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                                    EXHIBIT A

TAYLOR CAPITAL GROUP:  DEFINITION OF CHANGE IN CONTROL

                           "Change In Control" shall mean any of the following:

                           (1)      any "person" or "group" (as such terms are
                                    used in Section 13(d) and 14(d) of the
                                    Exchange Act) (other than the Taylor Family
                                    or an Employee Stock Ownership Plan
                                    established by the Company) becomes the
                                    beneficial owner, directly or indirectly, of
                                    securities of the Company representing 20%
                                    or more of the combined voting power of the
                                    Company's then outstanding securities and
                                    such person or group is or becomes the
                                    beneficial owner, directly or indirectly, of
                                    securities of the Company having a combined
                                    voting power greater than that beneficially
                                    owned, directly or indirectly, by the Taylor
                                    Family; or

                           (2)      the majority of the members of the Company's
                                    Board of Directors being replaced during any
                                    12-month period by directors whose
                                    appointment or election is not endorsed by a
                                    majority of the members of the Board of
                                    Directors of the Company immediately prior
                                    to such appointment or election; or

                           (3)      any reorganization, merger or consolidation
                                    (a "Reorganization") involving the Company
                                    or the Bank unless at least 50% of the then
                                    outstanding shares of common stock of the
                                    surviving corporation is held by persons who
                                    are shareholders of the Company or the Bank,
                                    respectively, immediately prior to such
                                    Reorganization in substantially the same
                                    proportions as their ownership immediately
                                    prior to such Reorganization; or

                           (4)      consummation of (i) a "going private"
                                    transaction of the Company within the
                                    meaning of Section 13(e) of the Exchange
                                    Act, or (ii) the sale or other disposition
                                    of all or substantially all of the assets of
                                    either the Company or the Bank, or (iii) the
                                    sale or other disposition of securities
                                    representing more than 70% of the voting
                                    power of the Bank; or

                           (5)      approval by the shareholders of the Company
                                    of a complete liquidation or dissolution of
                                    the Company under Section 275 of the
                                    Delaware General Corporation Law or any
                                    successor statute.
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However, a Change in Control shall not occur under Paragraphs (2), (3) or (4) if
the Taylor Family continues to be the beneficial owner, directly or indirectly,
of more than 30% of the combined voting power of the then outstanding securities
of the Company (or of the Bank for a Change in Control under Subparagraphs (3),
(4)(ii), or 4 (iii) involving the Bank), and no other person or group is or
becomes the beneficial owner, directly or indirectly, of securities of the
Company (or the Bank for a Change in Control under Subparagraphs (3), (4)(ii) or
4(iii) involving the Bank) having combined voting power greater than that
beneficially owned, directly or indirectly, by the Taylor Family.

For purposes of this definition of Change in Control, the Taylor Family means
(i) Iris Taylor and the Estate of Sidney J. Taylor, (ii) a descendant (or a
spouse of a descendant) of Sidney J. Taylor and Iris Taylor, (iii) any estate,
trust, guardianship or custodianship for the primary benefit of any individual
described in (i) or (ii) above, or (iv) a proprietorship, partnership, limited
liability company, or corporation controlled directly or indirectly by one or
more individuals or entities described in (i), (ii), or (iii) above.

For purposes of this definition of Change in Control the Company means Taylor
Capital Group, Inc. or any successor entity, and the Bank means Cole Taylor Bank
or any successor entity.

For purposes of this definition of Change in Control, Employee Stock Ownership
Plan means a retirement plan that is qualified under Section 401(a) of the
Internal Revenue Code and is sponsored by the Company (or a member of its
controlled group, as determined under Section 414(b) of the Internal Revenue
Code).

The term "Exchange Act" means the Securities Exchange Act of 1934. The terms
"beneficial owner" and "beneficially owned" shall have the meaning set forth in
Rule 13d-3 under the Exchange Act.

The term "outstanding securities" when used in the context of the "combined
voting power of the Company's then outstanding securities" shall mean only the
common stock of the Company and securities convertible into such common stock.<PAGE>
                                                                   EXHIBIT 10.53

                           TAYLOR CAPITAL GROUP, INC.
                        2002 INCENTIVE COMPENSATION PLAN

                          (As adopted on June 20, 2002)

                  1. Purpose. The Taylor Capital Group, Inc. 2002 Incentive
Compensation Plan (the "Plan"), is intended to provide incentives which will
attract and retain highly competent persons as officers, key employees and
directors of Taylor Capital Group, Inc. ("Company") and its subsidiaries, by
providing them opportunities to acquire shares of Common Stock of the Company
("Common Stock") or to receive monetary payments based on the value of such
shares pursuant to the Awards described herein.

                  2. Participants. Participants will consist of such officers
and employees of the Company and its subsidiaries, members of the Company's
Board of Directors (the "Board"), and independent contractors providing
consulting or advisory services to the Company and its subsidiaries, as the
Board, in its sole discretion, determines to be significantly responsible for
the success and future growth and profitability of the Company and whom the
Board may designate from time to time to receive Awards under the Plan.
Designation of a participant in any year shall not require the Board to
designate such person to receive an Award in any other year or, once designated,
to receive the same type or amount of Awards as granted to the participant or
any other participant in any year. The Board shall consider such factors as it
deems pertinent in selecting participants and in determining the amount, type
and terms and conditions of their respective Awards.

                  3.  Administration.

                  (a) The Plan will be administered by the Board unless and
until the Board delegates, or is required to delegate, administration to a
Committee, as provided in Sections 3(b) or 3(c) below. The Board is authorized,
subject to the provisions of the Plan, to establish such rules and regulations
as it deems necessary or appropriate for the proper administration of the Plan
and to make such determinations and interpretations and to take such action in
connection with the Plan and any Options granted hereunder as it deems necessary
or advisable. All determinations and interpretations made by the Board shall be
binding and conclusive on all participants and their legal representatives. No
member of the Board, and no employee of the Company shall be liable for any act
or failure to act hereunder, by any other Board member or employee or by any
agent to whom duties in connection with the administration of this Plan have
been delegated or, except in circumstances involving his bad faith, gross
negligence or fraud, for any act or failure to act by the member or employee.

                  (b) The Board may delegate all or any portion of
administration of the Plan to a committee composed of not fewer than two (2)
members of the Board (the "Committee"). If administration is delegated to a
Committee, the Committee shall have, in connection with the administration of
the Plan, the powers theretofore possessed by the Board (and references in this
Plan to the Board shall thereafter be to the Committee, as applicable), subject,
however, to such resolutions, not inconsistent with the provisions of the Plan,
as may be adopted from time to time by the Board. The Board may terminate all or
any portion of the Committee's authority under the Plan at any time and revisit
in the Board all or any portion of the administration of the Plan. In addition,
the Board (or the Committee to the extent Section 3(c) below is applicable) may

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                           TAYLOR CAPITAL GROUP, INC.
                        2002 INCENTIVE COMPENSATION PLAN

delegate all or any portion of the administration of the Plan to the Company's
Chief Executive Officer, but only with respect to Awards to participants who are
neither subject to Section 16 of the Securities Exchange Act of 1934 (the
"Exchange Act"), nor are "covered employees" within the meaning of Section
162(m) of the Internal Revenue Code of 1986, as amended (the "Code").

                  (c) The Board shall be required to delegate administration of
the Plan to a Committee, all of whose members shall be "nonemployee directors,"
effective on and after the date of the first registration of an equity security
of the Company under Section 12 of the Exchange Act. Any "nonemployee director"
shall comply with the requirements of Rule 16b-3 of the Exchange Act as in
effect at the relevant time and, to the extent necessary, Section 162(m) of the
Code.

                  4. Types of Awards. Awards under the Plan may be granted in
any one or a combination of (i) Incentive Stock Options, (ii) Nonqualified Stock
Options, (iii) Stock Appreciation Rights, (iv) Stock Awards, and (vi)
Performance Awards, each as described below (collectively, "Awards"). Each award
shall be made pursuant to a written agreement between the Company and the Award
recipient.

                  5.  Shares Reserved under the Plan.

                  (a) Subject to adjustment under Section 10 hereof, there is
hereby reserved for issuance under the Plan one hundred thousand (100,000)
shares of Common Stock of the Company, which may be authorized but unissued or
treasury shares, plus any shares of Common Stock which as of the effective date
of this Plan remain available for award under the Company's Incentive Stock
Plan, as adopted by the Board on October 28, 1997 (the "Original Plan") and
which have not been used as of the date this Plan is adopted. In addition, on
the first day of each calendar year during the term of this Plan, beginning with
the 2003 calendar year, the number of shares reserved for issuance under this
Plan shall be increased by a number of shares equal to the excess of three
percent (3%) of the aggregate number of shares of Common Stock outstanding on
December 31st of the immediately preceding calendar year, over the number of
shares remaining available for awards under this Plan as of such December 31st.

                  (b) If there is a lapse, expiration, termination or
cancellation of any stock option granted under this Plan or the Original Plan
prior to the issuance of shares in connection with such option, or if shares are
issued under the Plan or the Original Plan in connection with an Award hereunder
and thereafter such shares are reacquired by the Company, those shares may again
be used for new benefits under the Plan. In addition, any shares exchanged by an
optionee as full or partial payment of the exercise price under any Stock Option
exercised under this Plan or the Original Plan, any shares retained by the
Company pursuant to a participant's tax withholding election, and any shares
covered by a benefit which is settled in cash shall be added to the shares
available for benefits under the Plan. The Board shall determine the appropriate
methodology for calculating the number of Shares available for issuance pursuant
to the Plan. Notwithstanding the above, the maximum number of shares hereunder
that may be issued pursuant to the exercise of Incentive Stock Options during
the term of the Plan shall not exceed

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                           TAYLOR CAPITAL GROUP, INC.
                        2002 INCENTIVE COMPENSATION PLAN

seven hundred thousand (700,000) shares.

                  6. Stock Options. "Stock Options" will consist of awards from
the Company, which will enable the holder to purchase a specific number of
shares of Common Stock, at set terms and at a fixed purchase price. Stock
Options may be "incentive stock options" within the meaning of Section 422 of
the Code ("Incentive Stock Options") or Stock Options that do not constitute
Incentive Stock Options ("Nonqualified Stock Options," and together with
Incentive Stock Options, "Options"). The Board will have the authority to grant
to any participant one or more Incentive Stock Options, Nonqualified Stock
Options, or both types of Options. Each Option shall be evidenced by a written
option agreement in such form and shall be subject to such terms and conditions
as the Board may approve from time to time, including without limitation the
following:

                  (a) Exercise Price. Each Option granted hereunder shall have
such per-share exercise price as the Board may determine at the date of grant;
provided, however, that the per-share exercise price for Incentive Stock Options
shall not be less than 100% of the Fair Market Value of the Common Stock on the
date the option is granted

                  (b) Payment of Exercise Price. The option exercise price may
be paid by check or, in the discretion of the Board, by the delivery (or
certification of ownership) of Common Stock of the Company then owned by the
participant; provided, however, that payment of the exercise price by delivery
of Common Stock of the Company then owned by the participant may be made only if
such payment does not result in a charge to earnings for financial accounting
purposes as determined by the Board. In the discretion of the Board, if shares
of Common Stock are readily tradeable on a national securities exchange or other
market system at the time of option exercise, payment may also be made by
delivering a properly executed exercise notice to the Company together with a
copy of irrevocable instructions to a broker to deliver promptly to the Company
the amount of sale or loan proceeds to pay the exercise price. To facilitate the
foregoing, the Company may enter into agreements for coordinated procedures with
one or more brokerage firms.

                  (c) Exercise Period. Options granted under the Plan shall be
exercisable at such times and subject to such terms and conditions as shall be
determined by the Board; provided, however, that Incentive Stock Options shall
not be exercisable more than 10 years after the date they are granted. All
Options shall terminate at such earlier times and upon such conditions or
circumstances as the Board shall in its sole discretion set forth in the option
at the date of grant, including but not limited to limitations on exercisability
following termination of the participant's employment or consulting
relationship.

                  (d) Limitations on Incentive Stock Options. Incentive Stock
Options may be granted only to participants who are employees of the Company or
one of its subsidiaries (within the meaning of Section 424(f) of the Code) at
the date of grant. The aggregate Fair Market Value (determined as of the time
the option is granted) of the shares of Common Stock with respect to which
Incentive Stock Options are exercisable for the first time by a participant
during any

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                           TAYLOR CAPITAL GROUP, INC.
                        2002 INCENTIVE COMPENSATION PLAN

calendar year (under all option plans of the Company) shall not exceed $100,000.
Incentive Stock Options may not be granted to any participant who, at the time
of grant, owns stock possessing (after the application of the attribution rules
of Section 424(d) of the Code) more than 10% of the total combined voting power
of all classes of stock of the Company, unless the option price is fixed at not
less than 110% of the Fair Market Value of the Common Stock on the date of grant
and the exercise of such option is prohibited by its terms after the expiration
of five years from the date of grant of such option.

                  (e) Redesignation as Nonqualified Stock Options. Options
designated as Incentive Stock Options that fail to meet the requirements of
Section 422 of the Code shall be redesignated as Nonqualified Stock Options
automatically without further action by the Board on the date of such failure to
continue to meet the requirements of Section 422 of the Code.

                  (f) Limitation of Rights in Shares. The recipient of an Option
shall not be deemed for any purpose to be a shareholder of the Company with
respect to any of the shares subject thereto except to the extent that the
Option shall have been exercised and, in addition, a certificate shall have been
issued and delivered to the participant.

                  (g) Individual Limitation on Number of Shares. Following the
date of the first registration of an equity security of the Company under
Section 12 of the Exchange Act, the maximum number of shares of Common Stock
with respect to which Options may be granted during any calendar year to any one
participant under this Plan shall not exceed two hundred thousand (200,000)
shares, subject to adjustment as provided in Section 10.

                  7. Stock Appreciation Rights. "Stock Appreciation Rights" will
consist of awards from the Company, which will entitle the holder to receive the
appreciation in the Fair Market Value of the shares subject thereto up to a
specified date or dates. The Board may, in its discretion, grant Stock
Appreciation Rights to the holders of any Options granted hereunder. In
addition, Stock Appreciation Rights may be granted independently of and without
relation to Options. Each Stock Appreciation Right shall be subject to such
terms and conditions consistent with the Plan as the Board shall impose from
time to time, including the following:

                  (a) Each Stock Appreciation Right will entitle the holder to
elect to receive the appreciation in the Fair Market Value of the shares subject
thereto up to the date the right is exercised. In the case of a right issued in
relation to an Option, such appreciation shall be measured from not less than
the option price and in the case of a right issued independently of any Option,
such appreciation shall be measured from not less than 90% of the Fair Market
Value of the Common Stock on the date the right is granted. Payment of such
appreciation shall be made in cash or in Common Stock, or a combination thereof,
as set forth in the award.

                  (b) Each Stock Appreciation Right will be exercisable at the
time and to the extent set forth therein, but no Stock Appreciation Right may be
exercisable after the earlier of (i) the term of the related Option, if any, or
(ii) ten years after it was granted.

                  (c) Following the date of the first registration of an equity
security of the

                                      -4-
<PAGE>
                           TAYLOR CAPITAL GROUP, INC.
                        2002 INCENTIVE COMPENSATION PLAN

Company under Section 12 of the Exchange Act, the maximum number of shares of
Common Stock with respect to which Stock Appreciation Rights may be granted
during any calendar year to any one participant under this Plan shall not exceed
two hundred thousand (200,000) shares, subject to adjustment as provided in
Section 10.

                  8. Stock Awards. "Stock Awards" will consist of Common Stock
transferred to participants without other payments therefor as additional
compensation for services to the Company. Stock Awards shall be subject to such
terms and conditions as the Board determines appropriate, including, without
limitation, restrictions on the sale or other disposition of such shares,
restrictions requiring the forfeiture of shares to the Company upon termination
of the participant's employment or service with the Company or one of its
subsidiaries prior to satisfying a prescribed vesting schedule, or conditions
requiring that the shares be earned in whole or in part upon the achievement of
performance goals established by the Board over a designated period of time. The
Board may require the participant to deliver a duly signed stock power, endorsed
in blank, relating to the Common Stock covered by such an Award. The Board may
also require that the stock certificates evidencing such shares be held in
custody until the restrictions thereon shall have lapsed. The Stock Award shall
specify whether the participant shall have, with respect to the shares of Common
Stock subject to a Stock Award, all of the rights of a holder of shares of
Common Stock of the Company, including the right to receive dividends and to
vote the shares.

                  9.  Performance Awards.

                  (a) Performance Awards may be granted to participants at any
time and from time to time, as shall be determined by the Board. The Board shall
have complete discretion in determining the number, amount and timing of awards
granted to each participant. Performance Awards may take such form as may
determined by the Board, including without limitation, cash, awards of shares of
Common Stock, performance units and performance shares, or any combination
thereof. Performance Awards may be awarded as short-term or long-term
incentives. The Board shall set performance goals at its discretion which,
depending on the extent to which they are met, will determine the number and/or
value of Performance Awards that will be paid out to the participants, and may
attach to such Performance Awards one or more restrictions.

                  (b) Performance Awards under the Plan may be made subject to
the attainment of one or more of the following performance goals, as determined
by the Board: (i) earnings per share; (ii) net income or net operating income
(before or after taxes and before or after extraordinary items); (iii) sales,
revenues or expenses; (iv) cash flow return on investments which equals net cash
flows divided by owners equity; (v) earnings before or after taxes; (vi)
operating profits; (vii) gross revenues; (viii) gross margins; (ix) share price
including, but not limited to, growth measures and total shareholder return);
(x) economic value added, which equals net income or net operating income minus
a charge for use of capital; (xi) operating margins; (xii) market share; (xiii)
revenue growth; (xiv) cash flow; (xv) increase in customer base; (xvi) return on
equity, assets, capital or investment; (xvii) working capital; (xviii) net
margin; and (xix) such

                                      -5-
<PAGE>
                           TAYLOR CAPITAL GROUP, INC.
                        2002 INCENTIVE COMPENSATION PLAN

other performance criteria as may be determined by the Board in its sole
discretion. Performance goals may be based upon Company-wide, subsidiary,
divisional, project team, and/or individual performance. The Board shall have
the authority at any time to make adjustments to performance goals for any
outstanding Performance Awards which the Board deems necessary or desirable
unless at the time of establishment of such goals the Board shall have precluded
its authority to make such adjustments. However, the Board may not make any
adjustment to a performance goal if such adjustment would result in increased
compensation to a "covered employee" within the meaning of Section 162(m) of the
Code.

                  (c) The maximum aggregate payout (determined as of the end of
the applicable performance period) with respect to specific dollar-value target
awards or performance units awarded in any one fiscal year to any one
Participant shall be $1,000,000, and the maximum aggregate payout (determined as
of the end of the applicable performance period) with respect to
performance-based share awards or performance shares granted in any one fiscal
year to any one Participant shall be two hundred thousand (200,000) shares of
Common Stock, subject to adjustment as provided in Section 10.

                  (d) Payment of earned Performance Awards shall be made in
accordance with terms and conditions prescribed by the Board. The participant
may elect to defer, or the Board may require the deferral of, the receipt of
Performance Awards upon such terms as the Board deems appropriate.

                  10. Adjustment Provisions.

                  (a) If the Company shall at any time change the number of
issued common shares without new consideration to the Company (such as by stock
dividend or stock split), the total number of shares reserved for issuance under
the Plan, the maximum number of shares which may be made subject to Incentive
Stock Options during the term of the Plan, the maximum number of shares which
may be made subject to an Option, Stock Appreciation Right or Performance Award
in any calendar year during the term of the Plan, and the number of shares
covered by each outstanding Award shall be equitably adjusted and the aggregate
consideration payable to the Company, if any, shall not be changed.

                  (b) In the event of any merger, consolidation or
reorganization of the Company with or into another Company other than a merger,
consolidation or reorganization in which the Company is the continuing Company
and which does not result in the outstanding shares of Common Stock being
converted into or exchanged for different securities, cash or other property, or
any combination thereof, there shall be substituted, on an equitable basis as
determined by the Committee, for each share of Common Stock then subject to an
Award under the Plan, the number and kind of shares of stock, other securities,
cash or other property to which holders of shares of Common Stock of the Company
will be entitled pursuant to the transaction.

                  (c) Notwithstanding any other provision of this Plan, without
affecting the number of shares reserved or available hereunder, the Board may
authorize the issuance or

                                      -6-
<PAGE>
                           TAYLOR CAPITAL GROUP, INC.
                        2002 INCENTIVE COMPENSATION PLAN

assumption of outstanding Awards under the Plan in connection with any merger,
consolidation, acquisition of property or stock, or reorganization upon such
terms and conditions as it may deem appropriate.

                  (d) In the event that another corporation or business entity
is being acquired by the Company, and the Company assumes outstanding employee
stock options and/or stock appreciation rights and/or the obligations to make
future grants of options or rights to employees of the acquired entity, the
aggregate number of shares of Common Stock available for Awards under this Plan
shall be increased accordingly.

                  11. Nontransferability. Each Award granted under the Plan to a
participant shall, unless otherwise set forth in the written Award, not be
transferable otherwise than by will or the laws of descent and distribution, and
shall be exercisable, during the participant's lifetime, only by the participant
or, in the event of a participant's disability, by the participant's personal
representative. In the event of the death of a participant, exercise of any
Award or payment with respect to any Award shall be made only by or to the
executor or administrator of the estate of the deceased participant or the
person or persons to whom the deceased participant's rights under the benefit
shall pass by will or the laws of descent and distribution. Notwithstanding the
foregoing, at the discretion of the Board, a grant of an Option may permit the
transfer thereof by the participant solely to members of the participant's
immediate family or trusts or family partnerships or limited liability companies
for the benefit of such persons, subject to such terms and conditions as may be
established by the Board.

                  12. Other Provisions. Awards under the Plan may also be
subject to such other provisions (whether or not applicable to the Award granted
to any other participant) as the Board determines appropriate, including without
limitation, provisions for the installment purchase of Common Stock under Stock
Options, provisions for the installment exercise of Stock Appreciation Rights,
provisions to assist the participant in financing the acquisition of Common
Stock, provisions for the acceleration of exercisability or vesting and/or early
termination of Awards in the event of a change of control of the Company,
provisions for the payment of the value of Awards to participants in the event
of a change of control of the Company, provisions for the forfeiture of, or
restrictions on resale or other disposition of, Common Stock acquired under any
form of Award, provisions to comply with Federal and State securities laws, or
understandings or conditions as to the participant's employment in addition to
those specifically provided for under the Plan.

                  13. Fair Market Value. Except as otherwise expressly provided
in a written Award, for purposes of this Plan and any Awards hereunder, the
"Fair Market Value" of a share of Common Stock shall be closing price of a share
of the Company's Common Stock as reported on the Nasdaq National Market (or such
other consolidated transaction reporting system on which such shares are
primarily traded) on the date of calculation (or on the next preceding trading
date if shares of Common Stock were not traded on the date of calculation);
provided, however, that if shares of the Company's Common Stock are not at any
time readily tradeable on a national securities exchange or other market system,
"Fair Market Value" shall mean the

                                      -7-
<PAGE>
                           TAYLOR CAPITAL GROUP, INC.
                        2002 INCENTIVE COMPENSATION PLAN

amount determined in good faith by the Board as the fair market value of shares
of the Company.

                  14. Tenure. A participant's right, if any, to continue to
serve the Company as an officer, employee, or otherwise, shall not be enlarged
or otherwise affected by his or her designation as a participant under the Plan,
nor shall this Plan in any way interfere with the right of the Company, subject
to the terms of any separate employment agreement to the contrary, at any time
to terminate such employment or to increase or decrease the compensation of the
participant from the rate in existence at the time of the grant of an Award.

                  15. Withholding. All payments or distributions made pursuant
to the Plan shall be net of any amounts required to be withheld pursuant to
applicable federal, state and local tax withholding requirements. If the Company
proposes or is required to distribute Common Stock pursuant to the Plan, it may
require the recipient to remit to it an amount sufficient to satisfy such tax
withholding requirements prior to the delivery of any certificates for such
Common Stock. The Board may, in its discretion and subject to such rules as it
may adopt, permit an optionee or award or right holder to pay all or a portion
of the minimum required federal, state and local withholding taxes arising in
connection with (a) the exercise of a Stock Option or a Stock Appreciation Right
or (b) the receipt or vesting of Stock Awards or Performance Award, by electing
to have the Company withhold shares of Common Stock having a Fair Market Value
equal to the amount to be withheld.

                  16. Duration, Amendment and Termination. This Plan shall
terminate upon the earlier of a termination by the Board or at such time as
there shall be no remaining shares available for grant hereunder; provided
however that no Incentive Stock Option shall be granted after June 20, 2012.
Also, by mutual agreement between the Company and a participant hereunder, under
this Plan or under any other present or future plan of the Company, Awards may
be granted to such participant in substitution and exchange for, and in
cancellation of, any Awards previously granted such participant under this Plan,
or any other present or future plan of the Company. The Board may amend the Plan
from time to time or terminate the Plan at any time, subject to any requirement
of stockholder approval required by applicable law, regulation, or stock
exchange rule. However, no action authorized by this Section 16 shall reduce the
amount of any outstanding Award or adversely change the terms or conditions
thereof without the participant's consent.

                  17. Governing Law. This Plan and actions taken in connection
herewith shall be governed and construed in accordance with the laws of the
State of Illinois (regardless of the law that might otherwise govern under
applicable Illinois principles of conflict of laws).

                  18. Shareholder Approval. The Plan was adopted by the Board on
June 20, 2002, subject to shareholder approval. The Plan and any Awards granted
hereunder shall be null and void if shareholder approval is not obtained within
twelve months of the date this Plan was adopted by the Board.

                                      -8-

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