Document:

ex10-1.htm

    EXHIBIT
      10.1

     

     

    PRIVATEBANCORP,
      INC.

     

    STOCK
      PURCHASE AGREEMENT

     

    Dated
      as
      of 3:00 p.m. EST, November 26, 2007

     

    To
      Each of the Purchasers Listed in the Attached Schedule of
      Purchasers:

     

    Ladies
      and Gentlemen:

     

    The
      undersigned, PrivateBancorp, Inc., a Delaware corporation (the “Corporation”),
      hereby agrees with you as follows:

     

    1.            
      AUTHORIZATION; SALE AND PURCHASE OF SHARES

     

    1.1           Authorization
      of Shares.  The Corporation has duly authorized the issuance and
      sale of up to an aggregate of 5,581,680 shares of its Common Stock, no par
      value
      (the “Shares”), and up to an aggregate of 1,428.074 shares of its Series A
      Junior Nonvoting Preferred Stock (the “Preferred Stock”).

     

    1.2           Sale
      and Purchase of Shares and Preferred Stock.  Subject to the terms
      and conditions herein provided, the Corporation hereby agrees to sell to the
      several purchasers listed in the Schedule of Purchasers attached as
Schedule I hereto (each, a “Purchaser” and collectively, including
      the Institutional Purchaser (as defined below) the “Purchasers”), and each
      Purchaser, severally and not jointly, agrees to purchase from the Corporation,
      at the Closing provided for in Section 2 hereof, up to that number of
      Shares and number of shares of Preferred Stock specified opposite its name
      in
      the Schedule of Purchasers.  The purchase price for each Share shall
      be equal to the price per Share as reflected on the signature pages hereof;
      provided, however, that in the case of any Purchaser, such
      price per Share shall not be less than the official Nasdaq Consolidated Closing
      Bid Price as of 1:00 p.m. EST on November 23, 2007 (the “Share Bid Price”) and
      the price per each share of Preferred Stock shall not be less than an amount
      equal to 1,000 multiplied by the Share Bid Price; provided further, the
      aggregate purchase price of all Shares and shares of Preferred Stock to be
      acquired by the Institutional Purchaser (as defined below) shall be
      approximately $100 million.  The Institutional Purchaser agrees to
      purchase, on the Closing Date, that number of Shares with an aggregate purchase
      price equal to approximately $59.0 million, and that number of shares of
      Preferred Stock consistent with the terms, powers, preferences and other rights
      as set forth in the Form of Certificate of Designations of such Preferred Stock
      attached hereto as Exhibit B (the “Certificate of Designations”), with an
      aggregate purchase price equal to $41.0 million.  Each Purchaser’s
      obligations hereunder are several and not joint obligations, and no Purchaser
      shall have any liability to any person or entity for the performance or
      nonperformance by any other Purchaser hereunder.  Each Purchaser other
      than the Institutional Purchaser understands and acknowledges that the actual
      number of Shares sold to each Purchaser other than the Institutional Purchaser
      shall be determined by the Corporation and the Corporation shall have the right
      to accept or reject in whole or in part such Purchaser’s subscription to
      purchase Shares hereunder and/or to limit such Purchaser’s investment hereunder
      to a specific dollar amount and/or percentage of the total aggregate
      number

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    of
      Shares
      to be sold.  Each Purchaser also understands and acknowledges that it
      has made its own review of the investment merits and risks of the Shares, and
      with respect to the Institutional Purchaser the shares of Preferred Stock,
      is
      not relying on the Institutional Purchaser and is acting separately and
      independently of the Institutional Purchaser in making its investment in the
      Shares, and with respect to the Institutional Purchaser the shares of Preferred
      Stock.

     

    As
      used
      in this Agreement, the term “Institutional Purchaser” means collectively, GTCR
      Fund IX/A, L.P., a Delaware limited partnership, GTCR Fund IX/B, L.P., a
      Delaware limited partnership and GTCR Co-Invest III, L.P., a Delaware limited
      partnership.

     

    2.            THE
      CLOSING.

     

    2.1           Time
      and Place of the Closing.  Subject to Section 3 hereof,
      payment of the purchase price for and delivery of the Shares and the Preferred
      Stock shall be made at the offices of Vedder, Price, Kaufman & Kammholz,
      P.C., or at such other place or in such other manner as may be agreed upon
      by
      the Corporation and the Institutional Purchaser, at 10:00 a.m., Chicago,
      Illinois time, on December 11, 2007, or at such other time or date as the
      Institutional Purchaser and the Corporation may mutually determine (such date
      and time of payment and delivery being herein called the “Closing
      Date”).  Notwithstanding the foregoing, in the event the conditions to
      the Institutional Purchaser’s obligations to consummate the Transactions in
      Section 3.1(c) or Section 3.1(d) have not been satisfied prior to December
      11,
      2007, then the parties hereto shall work in good faith with the applicable
      Governmental Authorities (as defined below) to obtain such governmental
      approvals or authorizations and shall use commercially reasonable efforts to
      modify the terms of this Agreement and the agreements and exhibits contemplated
      herein to obtain such governmental approvals and authorizations; provided
      that none of such changes shall be inconsistent with the terms of this
      Agreement (including without limitation the ability of the Institutional
      Purchaser to appoint a director or observer pursuant to Section 5.3 below)
      without the consent of the Institutional Purchaser in its sole
      discretion.  In such event, the Institutional Purchaser and the
      Corporation shall mutually determine the date and time of the Closing;
provided that the Closing Date shall not be extended beyond January 31,
      2008 without the consent of the Institutional Purchaser.

     

    2.2           Delivery
      of and Payment for the Shares.  At the Closing, the Corporation
      shall deliver to each Purchaser certificates evidencing the Shares and, in
      the
      case of the Institutional Purchaser, the shares of Preferred Stock, to be
      purchased by it (as indicated opposite such Purchaser’s name on
Schedule I hereto), dated the Closing Date and bearing appropriate
      legends as hereinafter provided for, and registered on the books and records
      of
      the Corporation in such Purchaser’s name, against payment in full at the Closing
      of the aggregate purchase price therefor by wire transfer of immediately
      available funds for credit to such account as the Corporation shall direct
      in
      writing prior to the Closing Date no later than 9:00 a.m., Chicago, Illinois
      time, on the Closing Date.

     

    3.            CONDITIONS
      TO CLOSING

     

    3.1           Conditions
      to the Purchasers’ Obligations.  The obligations of each Purchaser
      hereunder are subject to the accuracy, as of the date hereof and on the Closing
      Date, of the representations and warranties of the Corporation contained herein,
      and to the performance by

     

     

    
      
        
        

      

      
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    the
      Corporation of its obligations hereunder and to each of the following additional
      terms and conditions:

     

    (a)           The
      Corporation will have furnished to the Purchasers a certificate, dated the
      Closing Date, executed on behalf of the Corporation by each of the Chairman
      of
      the Board, the Chief Executive Officer and President, and the Chief Financial
      Officer of the Corporation, stating that:

     

    (i)           The
      representations, warranties and agreements of the Corporation in
      Section 4.1 hereof are true and correct as of the Closing Date and the
      Corporation has complied with all its agreements contained herein;
      and

     

    (ii)           Such
      officers have carefully examined the Disclosure Materials (as defined in
      Section 4.1(f) hereof) and, in their opinion, as of their respective dates
      (except to the extent superseded by statements in later-filed documents
      comprising part of the Disclosure Materials), and as of the Closing Date, the
      Disclosure Materials do not contain any untrue statement of a material fact
      nor
      omit to state any material fact required to be stated therein or necessary
      to
      make the statements therein, in the light of the circumstances under which
      they
      were made, not misleading;

     

    (b)           From
      November 20, 2007 to the Closing Date, there shall not have been any event
      or series of events, change, occurrence or development or a state of
      circumstances or facts (including any events, changes, occurrences,
      developments, state of circumstances or facts existing prior to
      November 20, 2007 but which become known during such period), that,
      individually or in the aggregate, has had, or would reasonably be expected
      to
      have, a Material Adverse Effect (as defined in Section 4.1(h)
      hereof).

     

    (c)           Except
      as set forth in Section 2.1 above, any authorizations, consents, commitments,
      agreements, orders or approvals of, or declarations or filings with, or
      expirations of waiting periods imposed by, any federal, state or local court
      or
      governmental or regulatory agency or authority or applicable stock exchange
      or
      trading market (any such court, agency, authority, exchange or market, a
“Governmental Authority”) required for the consummation of the Transactions, as
      defined herein, (including without limitation the ability to appoint a director
      pursuant to Section 5.3 below) shall have been obtained or filed or shall
      have occurred and any such orders shall have become final, non-appealable
      orders.

     

    (d)           Except
      as set forth in Section 2.1 above, the Board of Governors of the Federal Reserve
      System (the “Federal Reserve”) shall have issued a written determination of
      non-control under both the Bank Holding Company Act (the “BHC Act”) and the
      Change in Bank Control Act (the “CIBC Act”) on the Institutional Purchaser’s
      ownership of up to 9.9% of the Corporation’s Common Stock and Preferred Stock
      which is convertible into up to an additional 5% of the Corporation’s Common
      Stock in form and substance satisfactory to the Institutional Purchaser
      (including without limitation the ability to appoint a director pursuant to
      Section 5.3 below) (collectively, a “Fed Determination”) and none of the Federal
      Reserve or any other Governmental Authority shall have imposed or required
      any
      changes that are inconsistent with this Agreement and the Transactions that
      are
      not acceptable to the Institutional Purchaser in its sole
      discretion.

     

     

    
      
        
        

      

      
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    (e)           The
      Corporation and each Purchaser shall have entered into that certain Preemptive
      and Registration Rights Agreement, dated as of the Closing Date, between the
      Corporation and each Purchaser, in the form of Exhibit C hereto, which provides
      the Institutional Purchaser with certain pre-emptive rights relating to certain
      equity securities of the Corporation and provides each of the Institutional
      Purchaser and the other Purchasers with certain registration rights with respect
      to the Shares and the shares of Common Stock issuable upon conversion of the
      Preferred Stock being purchased hereunder (the “Preemptive and Registration
      Rights Agreement”).

     

    (f)           Prior
      to the issuance of the Preferred Stock, the Corporation shall have made any
      filings, including the Certificate of Designations, and received any necessary
      approvals under the General Corporation Law of the State of Delaware (the
“DGCL”) in order to amend its Certificate of Incorporation to provide for the
      establishment and designation of the Preferred Stock on the terms set forth
      in
      the Certificate of Designations and the issuance of such shares to the
      Institutional Purchaser.

     

    (g)           Vedder,
      Price, Kaufman & Kammholz, P.C., counsel to the Corporation, shall have
      furnished to the Purchasers its written opinion, addressed to the Purchasers
      and
      dated the Closing Date, substantially to the effect set forth in
Exhibit A hereto.

     

    (h)           The
      Purchasers other than the Institutional Purchaser, collectively, shall purchase
      at the Closing Shares with an aggregate purchase price equal to at least
      Seventy-Five Million Dollars ($75,000,000).

     

    3.2           Conditions
      to the Corporation’s Obligations.

     

    (a)           The
      obligations of the Corporation hereunder are subject to the accuracy, as of
      the
      date hereof and as of the Closing Date, of the representations and warranties
      of
      each Purchaser contained herein and to the performance by each Purchaser of
      its
      obligations hereunder;

     

    (b)           The
      Institutional Purchaser shall have received any and all necessary federal,
      state, governmental agency and bank regulatory approvals necessary for the
      purchase by the Institutional Purchaser of the Shares and the Preferred Stock
      pursuant to this Agreement, and any and all applicable waiting periods upon
      which such approvals are conditioned shall have expired; and

     

    (c)           The
      Corporation and each Purchaser shall have entered into the Preemptive and
      Registration Rights Agreement.

     

    4.            
      REPRESENTATIONS AND WARRANTIES

     

    4.1           Representations,
      Warranties and Agreements of the Corporation.  The Corporation
      represents and warrants to, and agrees with each Purchaser that as of the date
      hereof:

     

    (a)           The
      authorized capital stock of the Corporation consists of 39,000,000 shares of
      Common Stock, no par value, of which 22,778,374 shares are outstanding as of
      the
      date

     

     

    
      
        
        

      

      
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    of
      this
      Agreement and 1,000,000 shares of preferred stock, no par value, of which no
      shares are outstanding as of the date of this Agreement.

     

    (b)           Since
      December 31, 2006, the Corporation and each Subsidiary have filed all
      material reports, registrations and statements, together with any required
      amendments thereto, that it was required to file with the Federal Reserve,
      the
      Securities and Exchange Commission (the “SEC”), the Office of Thrift Supervision
      (the “OTS”), the Federal Deposit Insurance Corporation (the “FDIC”) and any
      other applicable federal or state securities or banking authorities, except
      where the failure to file any such report, registration or statement would
      not
      reasonably be expected to have a Material Adverse Effect.  All such
      reports and statements filed with any such regulatory body or authority are
      collectively referred to herein as the “Corporation Reports”.  As of
      their respective dates, the Corporation Reports complied as to form in all
      material respects with all the rules and regulations promulgated by the Federal
      Reserve, the OTS, the FDIC and any other applicable foreign, federal or state
      securities or banking authorities, as the case may be.

     

    (c)           The
      records, systems, controls, data and information of the Corporation and the
      Subsidiaries are recorded, stored, maintained and operated under means
      (including any electronic, mechanical or photographic process, whether
      computerized or not) that are under the exclusive ownership and direct control
      of the Corporation or the Subsidiaries or their accountants (including all
      means
      of access thereto and therefrom). The Corporation (i) has implemented and
      maintains disclosure controls and procedures (as defined in Rule 13a-15(e)
      under
      the Exchange Act) to ensure that material information relating to the
      Corporation, including the Subsidiaries, is made known to the chief executive
      officer and the chief financial officer of the Corporation by others within
      those entities, and (ii) has disclosed, based on its most recent evaluation
      prior to the date hereof, to the Corporation’s outside auditors and the audit
      committee of the Corporation’s Board of Directors (A) any significant
      deficiencies and material weaknesses in the design or operation of internal
      controls over financial reporting (as defined in Rule 13a-15(f) under the
      Exchange Act) that are reasonably likely to adversely affect the Corporation’s
      ability to record, process, summarize and report financial information and
      (B)
      any fraud, whether or not material, that involves management or other employees
      who have a significant role in the Corporation’s internal controls over
      financial reporting. As of the date hereof, to the knowledge of the Corporation,
      there is no reason that its outside auditors and its chief executive officer
      and
      chief financial officer will not be able to give the certifications and
      attestations required pursuant to the rules and regulations adopted pursuant
      to
      Section 404 of the Sarbanes-Oxley Act of 2002, without qualification, when
      next
      due.

     

    (d)           Except
      as previously disclosed in writing to the Institutional Purchaser, since
      September 30, 2007, no change has occurred and no circumstances exist (including
      any changes, occurrences, circumstances or facts existing prior to
      September 30, 2007 but which become known on or after September 30,
      2007) that is not disclosed in the Disclosure Materials which, individually
      or
      in the aggregate, have had or are reasonably likely to have a Material Adverse
      Effect.

     

    (e)           The
      Corporation and each Subsidiary have all permits, licenses, authorizations,
      orders and approvals of, and have made all filings, applications and
      registrations with, any governmental entities that are required in order to
      carry on their business as presently

     

     

    
      
        
        

      

      
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    conducted
      and that are material to the business of the Corporation or such Subsidiary,
      except where the failure to have such permits, licenses, authorizations, orders
      and approvals or the failure to make such filings, applications and
      registrations would not, individually or in the aggregate, reasonably be
      expected to have a Material Adverse Effect; and all such permits, licenses,
      certificates of authority, orders and approvals are in full force and effect
      and, to the knowledge of the Corporation, no suspension or cancellation of
      any
      of them is threatened, and all such filings, applications and registrations
      are
      current.

     

    (f)           The
      Corporation has timely filed all documents required to be filed with the SEC
      pursuant to Section 13(a) or 15(d) and Section 14(a) of the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”).  The
      Corporation has furnished to each Purchaser or otherwise made available a copy
      of each of the following:  (i) the Corporation’s Annual Report on
      Form 10-K for the year ended December 31, 2006, as filed with the SEC;
      (ii) the Corporation’s proxy statement for its 2007 Annual Meeting of
      Stockholders held on April 26, 2007, as filed with the SEC on
      March 14, 2007; (iii) the Corporation’s Quarterly Reports on
      Form 10-Q for the quarters ended March 31, 2007, June 30, 2007
      and September 30, 2007, as filed with the SEC; and (iv) the
      Corporation’s Current Reports on Form 8-K as filed with the SEC since
      December 31, 2006 (items (i) through (iv) collectively, the
“Disclosure Materials”), which Disclosure Materials include, among other things,
      audited consolidated financial statements of the Corporation for its fiscal
      years ended December 31, 2005 and 2006, and unaudited interim
      financial statements of the Corporation for each of its fiscal quarters ended
      March 31, 2007, June 30, 2007 and September 30, 2007,
      respectively.  As of the date hereof and as of the Closing Date, each
      of the documents comprising a part of the Disclosure Materials, when such
      documents are considered together as a whole, did not contain or will not
      contain any untrue statement of material fact or omitted to state or will not
      omit to state any material fact required to be stated therein or necessary
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading.

     

    (g)           Based
      upon the representations and warranties of each Purchaser contained herein,
      the
      Corporation is not required by applicable law or regulation in connection with
      the offer, sale and delivery of the Shares to the Purchasers and, in the case
      of
      the Preferred Stock, to the Institutional Purchaser, in the manner contemplated
      by this Agreement to register the Shares or the Preferred Stock under the
      Securities Act of 1933, as amended (the “Securities Act”), or any state
      securities laws.

     

    (h)           The
      Corporation and each of the Corporation’s subsidiaries listed on
Schedule II hereto (collectively the “Subsidiaries”) (i) have
      been duly incorporated or organized and are validly existing in good standing
      under the laws of their respective jurisdictions of incorporation or
      organization, (ii) are duly qualified to do business and are in good
      standing as foreign corporations or organizations in each jurisdiction in which
      their respective ownership or lease of property or the conduct of their
      respective businesses requires such qualification, except where the failure
      to
      be so qualified would not reasonably be expected to result in any material
      adverse change in the condition, financial or otherwise, or in the earnings,
      business affairs or business prospects of the Corporation and its Subsidiaries
      (taken as a whole), or which would not reasonably be expected to materially
      and
      adversely affect the assets or properties of the Corporation and its
      Subsidiaries (taken as a whole), or which would not reasonably be expected
      to
      materially and adversely affect the Transactions as defined herein (individually
      or in the

     

     

    
      
        
        

      

      
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    aggregate,
      a “Material Adverse Effect”, except that the mere filing of any action, claim,
      suit or order relating to any actual or threatened litigation involving the
      Corporation, any of its Subsidiaries or any of its employees after the date
      of
      this Agreement (rather than the actual facts and circumstances underlying such
      action, claim, suit or order) shall not be deemed a “Material Adverse Effect”);
      and (iii) have all corporate power and authority necessary to own or hold
      their respective properties and to conduct the businesses in which they are
      currently engaged.

     

    (i)           All
      of the issued shares of capital stock of the Corporation have been duly and
      validly authorized and issued, are fully paid and non-assessable and no such
      shares were issued in violation of the preemptive or similar rights of any
      security holder of the Corporation.  No person has any preemptive or
      similar right to purchase any shares of capital stock of the
      Corporation.  Except as disclosed in the Disclosure Materials and for
      the 3,882,831 shares of Common Stock reserved for issuance under the
      Corporation’s equity compensation or other employee benefit or compensation
      plans, arrangements, or agreements, there are no outstanding warrants, options
      or other rights to subscribe for or purchase any of the Corporation’s capital
      stock and no restrictions upon the voting or transfer of any capital stock
      of
      the Corporation pursuant to the Corporation’s charter or bylaws or any agreement
      or other instrument to which the Corporation is a party or by which the
      Corporation is bound.

     

    (j)           The
      Shares have been duly authorized by the Corporation and, when issued and
      delivered by the Corporation against payment therefor in the manner contemplated
      by this Agreement, will be validly issued, fully paid and non-assessable, and
      there are no preemptive rights relating to the issuance of the
      Shares.  The shares of Preferred Stock have been duly authorized by
      the Corporation and, when issued and delivered by the Corporation against
      payment therefore in the manner contemplated hereunder, will be validly issued,
      fully paid and non-assessable, and there are no preemptive rights relating
      to
      the issuance of the Preferred Stock to be issued to the Institutional Purchaser
      pursuant to this Agreement.

     

    (k)           This
      Agreement has been duly authorized, executed and delivered by the Corporation
      and constitutes a valid and legally binding agreement of the Corporation
      enforceable against the Corporation in accordance with its terms, subject to
      the
      effects of bankruptcy, insolvency, reorganization, moratorium and other similar
      laws relating to or affecting creditors’ rights generally, and general equitable
      principles (whether considered in a proceeding in equity or at
      law).

     

    (l)           The
      execution, delivery and performance of this Agreement, the issuance and sale
      of
      the Shares and the Preferred Stock in the manner contemplated hereby, and the
      consummation of the transactions contemplated herein (collectively, the
“Transactions”), will not violate any of the provisions of the Certificate of
      Incorporation, including the Certificate of Designations, or By-laws of the
      Corporation; and no consent, approval, authorization or order of, or filing
      or
      registration with any such person (including, without limitation, any such
      court
      or governmental agency or body) is required for the consummation of the
      Transactions by the Corporation, except such as may be required under state
      securities laws or Regulation D under the Securities Act, or required by
      The Nasdaq Stock Market, and with respect to the Preferred Stock, as required
      under the DGCL.

     

     

    
      
        
        

      

      
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    (m)           The
      audited consolidated financial statements (including the related notes) included
      or incorporated in the Disclosure Materials present fairly, in all material
      respects, the financial condition and results of operations of the Corporation
      and its subsidiaries, at the dates and for the periods indicated, and have
      been
      prepared in conformity with generally accepted accounting principles (“GAAP”)
      applied on a consistent basis throughout the periods involved.

     

    (n)           Except
      as disclosed in the Disclosure Materials or as previously disclosed to the
      Institutional Purchaser in writing, there is no action, suit or proceeding
      before or by any court or governmental agency or body or any labor dispute
      now
      pending or, to the knowledge of the Corporation, threatened against the
      Corporation or any of its Subsidiaries, which would reasonably be expected
      to
      have a Material Adverse Effect.  To the best knowledge of the
      Corporation, all pending legal, arbitral or governmental proceedings or
      investigations to which the Corporation or any of its Subsidiaries are a party
      or have been threatened, or of which any of their assets or properties is the
      subject which are not described in the Disclosure Materials, including ordinary
      routine litigation incidental to the business of the Corporation or any of
      its
      Subsidiaries, are, considered in the aggregate, not material to the Corporation
      and its Subsidiaries.

     

    (o)           No
      temporary restraining order, preliminary or permanent injunction or other order
      issued by any court of competent jurisdiction or other legal restraint or
      prohibition preventing the consummation of the Transactions is in
      effect.

     

    (p)           Since
      December 31, 2006, neither the Corporation nor any Subsidiary has engaged in
      conduct that it knew to be a violation of any applicable law or contractual
      obligation relating to the recruitment, hiring, extension of offers of
      employment, retention or solicitation of any current employee of the Corporation
      or any Subsidiary.

     

    (q)           No
      broker’s, finder’s, investment banker’s or similar fee or commission has been
      paid or will be payable by the Corporation with respect to, or for any services
      rendered to the Corporation ancillary to, the offer, issue and sale of the
      Shares and Preferred Stock contemplated by this Agreement other than, to the
      extent set forth in Schedule 4.1(r) to this Agreement, (i) fees
      payable to Morgan Stanley & Co. Incorporated (“Morgan Stanley”) for
      acting as financial advisor to the Corporation in connection with the
      Transactions, (ii) fees payable to Keefe, Bruyette & Woods, Inc.
      (“KBW”) for acting as financial advisor to the Corporation in connection with
      the Transactions, and (iii) fees payable to William Blair &
Company, L.L.C. (“Blair”) for acting as a financial sub-advisor to the
      Corporation in connection with the Transaction, each of which will be paid
      by
      the Corporation.

     

    (r)           Neither
      the Corporation nor, to the best of its knowledge, anyone acting on its behalf
      (excluding Morgan Stanley, Blair, Baird (as defined below), Mesirow (as defined
      below) and each of its affiliates, as to which no representation is made) has
      offered the Shares or Preferred Stock or any similar securities for sale to,
      or
      solicited any offer to buy any of the same from, or otherwise approached or
      negotiated in respect thereof with, any person through any “general
      solicitation” or “general advertising” (as such terms are used in
      Rule 502(c) of the Securities Act).  Neither the Corporation nor,
      to the best of its knowledge, anyone acting on its behalf (excluding Morgan
      Stanley, Blair, Baird, Mesirow and each of its affiliates, as to which no
      representation is made) has taken, or will take, any action that would subject
      the issuance or

     

     

    
      
        
        

      

      
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    sale
      of
      the Shares or the Preferred Stock to the registration requirements of
      Section 5 of the Securities Act.

     

    4.2           Representations
      and Warranties and Agreements of the Purchasers.  Each Purchaser,
      or with respect to paragraph 4.2(k) below, only the Institutional
      Purchaser, named on Schedule I, severally and not jointly,
      represents and warrants to, and agrees with the Corporation that, as of the date
      hereof:

     

    (a)           Such
      Purchaser has full power and authority to enter into this Agreement and this
      Agreement constitutes a valid and legally binding obligation of such Purchaser,
      enforceable against such Purchaser in accordance with its terms, subject to
      the
      effects of bankruptcy, insolvency, reorganization, moratorium and other similar
      laws relating to or affecting creditor’s rights generally, and general equitable
      principles (whether considered in a proceeding in equity or at
      law).

     

    (b)           If
      the Purchaser is a corporation, partnership, limited liability company, trust,
      or other entity, it represents that:  (i) it is duly organized,
      validly existing and in good standing in its jurisdiction of incorporation
      or
      organization and has all the requisite power and authority to purchase the
      Shares as provided herein; (ii) it is not an “investment company”, as that
      term is defined in the 1940 Act or the rules and regulations promulgated
      thereunder; (iii) such investment does not result in any violation of, or
      conflict with, any term or provision of the charter or bylaws of the Purchaser
      or any other instrument or agreement to which the Purchaser is a party or by
      which it is bound; and (iv) such investment has been duly authorized by all
      necessary action on behalf of the Purchaser.

     

    (c)           If
      the Purchaser is purchasing the Shares or any Preferred Stock in a
      representative or fiduciary capacity, the representations and warranties
      contained herein (and in any other written statement or document delivered
      to
      the Corporation in connection herewith) shall be deemed to have been made on
      behalf of the person or persons for whom such Shares or Preferred Stock are
      being purchased.

     

    (d)           If
      the Purchaser is a corporation or a partnership, the Purchaser and the person
      signing this Agreement on its behalf hereby represent and warrant that the
      information contained in this Agreement and any Offeree Questionnaire completed
      on behalf of such corporation or partner of such partnership is true and correct
      with respect to such stockholders or partners (and if any such stockholder
      or
      partner is itself a corporation or a partnership, with respect to all persons
      having an interest in such corporation or partnership, whether directly or
      indirectly) and that the Purchaser and the person signing this Agreement have
      made due inquiry to determine the truthfulness and accuracy of such
      information.

     

    (e)           Such
      Purchaser is purchasing the Shares, and with respect to the Institutional
      Purchaser the shares of Preferred Stock, for Purchaser’s own account and not
      with a view to or for sale in connection with any distribution thereof in a
      transaction that would violate or cause a violation of the Securities Act or
      the
      securities laws of any state or any other applicable jurisdiction.  If
      the Purchaser is an entity, the Purchaser has not been organized solely for
      the
      purpose of acquiring the Shares or Preferred Stock.

     

     

    
      
        
        

      

      
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    (f)           Such
      Purchaser is an “accredited investor” as defined in Rule 501(a) promulgated
      under the Securities Act and understands and agrees that the offer and sale
      of
      the Shares to Purchasers hereunder, and with respect to the Institutional
      Purchaser the shares of Preferred Stock hereunder, have not been registered
      under the Securities Act or any state securities law in reliance on the
      availability of an exemption from such registration requirements based on the
      accuracy of the Purchaser’s representations in this
      Section 4.2.

     

    (g)           In
      the normal course of such Purchaser’s business or affairs, Purchaser invests in
      or purchases securities similar to the Shares and has such knowledge and
      experience in financial and business matters as to be capable of evaluating
      the
      merits and risks of purchasing the Shares, and with respect to the Institutional
      Purchaser the shares of Preferred Stock.  Purchaser has received and
      has carefully reviewed the Disclosure Materials and understands the information
      contained therein and has relied solely upon the Disclosure Materials and
      independent investigations made by him in making the decision to invest in
      the
      Shares, and with respect to the Institutional Purchaser the shares of Preferred
      Stock.  Purchaser understands that the Disclosure Materials contain
      certain “forward-looking” information regarding the Corporation and its
      business, and that the Corporation’s ability to predict results or the actual
      effect of future plans or strategies is inherently uncertain, and undue reliance
      should not be placed on such statements, and Purchaser is not relying on such
      “forward-looking” information in deciding to purchase the Shares, and with
      respect to the Institutional Purchaser the shares of Preferred
      Stock.  Purchaser has had access to such financial and other
      information concerning the Corporation and its Subsidiaries as Purchaser deemed
      necessary or desirable in making a decision to purchase the Shares, and with
      respect to the Institutional Purchaser the shares of Preferred Stock, including
      an opportunity to ask questions and receive answers from officers of the
      Corporation and to obtain additional information (to the extent the Corporation
      possessed such information or could acquire it without unreasonable effort
      or
      expense) necessary to verify the accuracy of any information furnished to
      Purchaser or to which Purchaser had access.

     

    (h)           Such
      Purchaser is not relying on the Corporation or any of its affiliates or the
      Institutional Purchaser with respect to an analysis or consideration of the
      terms of or economic considerations relating to an investment in the Shares,
      or
      with respect to the Institutional Purchaser the shares of Preferred
      Stock.  In regard to such considerations and analysis, the Purchaser
      has relied on the advice of, or has consulted with, only his, her or its own
      advisors, other than those advisors of the undersigned affiliated with the
      Corporation or any of its affiliates.

     

    (i)           Such
      Purchaser acknowledges and is aware that there are substantial restrictions
      on
      the transferability of the Shares, and with respect to the Institutional
      Purchaser the shares of Preferred Stock.  Purchaser understands that
      the Shares and shares of Preferred Stock have not been registered under the
      Securities Act and are “restricted securities” within the meaning of
      Rule 144 and may not be sold, transferred, or otherwise disposed of without
      registration under the Securities Act or an exemption
      therefrom.  Purchaser further understands that the Shares purchased
      hereby will be subject to a “Lock-up Period” as defined and described in
      Section 5.2 below.  Furthermore, Purchaser acknowledges that each
      certificate evidencing the Shares purchased hereunder will bear a legend to
      the
      effect set forth below, and each Purchaser covenants that, except to the extent
      such restrictions are waived by the Corporation, such

     

     

    
      
        
        

      

      
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    Purchaser
      shall not transfer the shares represented by any such certificate without
      complying with the restrictions on transfer described in the legend endorsed
      on
      such certificate:

     

    (I)           THE
      SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
      PLEDGED, OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH
      ACT
      OR COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT, OR UNLESS THE
      CORPORATION HAS RECEIVED AN OPINION OF COUNSEL, SATISFACTORY TO THE CORPORATION
      AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
      REQUIRED.  (II) FURTHERMORE, THE SECURITIES REPRESENTED BY THIS
      CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AS SET FORTH IN
      SECTION 5.2 OF THAT CERTAIN STOCK PURCHASE AGREEMENT DATED AS OF
      NOVEMBER 26, 2007, A COPY OF WHICH AGREEMENT IS ON FILE IN THE PRINCIPAL
      OFFICE OF THE CORPORATION.

     

    Purchaser
      understands that the Shares, and with respect to the Institutional Purchaser
      the
      shares of Preferred Stock, will not be, and except as provided in the Preemptive
      and Registration Rights Agreement, Purchaser has no right to require that the
      Shares or Preferred Stock be, registered under the Securities Act.

     

    If
      any
      Shares or shares of Preferred Stock become eligible for sale pursuant to
      Rule 144(k) or any similar or successor provision, the Corporation shall,
      upon the request of the holder of such Shares or shares of Preferred Stock
      pursuant to this Agreement, remove the legend set forth in
      Section 4.2(i)(I) from the certificates for such Shares or shares of
      Preferred Stock.  In addition, if in connection with any transfer a
      holder of the Shares or shares of Preferred Stock pursuant to this Agreement
      delivers to the Corporation an opinion of counsel which (to the Corporation’s
      reasonable satisfaction) is knowledgeable in securities law matters to the
      effect that no subsequent transfer of such Shares or shares of Preferred Stock,
      as applicable, shall require registration under the Securities Act, then the
      Corporation promptly upon such contemplated transfer shall deliver new
      certificates for such Shares or shares of Preferred Stock, as applicable, which
      do not bear the Securities Act legend set forth in
      Section 4.2(i)(I).  In addition, the Corporation shall, upon the
      request of a holder of such Shares or shares of Preferred Stock pursuant to
      this
      Agreement, after the expiration of the transfer restrictions set forth in
      Section 5.2 remove the legend set forth in Section 4.2(i)(II) from the
      certificates for such Shares or shares of Preferred Stock.

     

    (j)           Such
      Purchaser acknowledges that Morgan Stanley was engaged by the Corporation to
      act
      as its financial advisor in connection with the Transactions and will receive
      a
      cash fee for its services, payable by the Corporation, as set forth on
      Schedule 4.1(r) hereto.  Purchaser also acknowledges that KBW was
      engaged by the Corporation to act as its financial advisor in connection with
      the Transactions and will receive a cash fee plus reimbursement of fees and
      expenses for its services, payable by the Corporation, as set forth on
      Schedule 4.1(r) hereto. Furthermore, such Purchaser acknowledges that each
      of Robert W. Baird & Co. Incorporated (“Baird”), William Blair &
Company, L.L.C. (“Blair”) and Mesirow Financial, Inc.

     

     

    
      
        
        

      

      
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    (“Mesirow”)
      was engaged by the Corporation to act as a financial sub-advisor in connection
      with the Transactions and that Blair will receive a cash fee for its services,
      payable by the Corporation, as set forth on Schedule 4.1(r) hereto. To the
      extent that each of Baird and Mesirow purchase Shares pursuant to this
      Agreement, neither firm will be compensated for its services in connection
      with
      the Transactions.

     

    (k)           Institutional
      Purchaser represents and warrants that no authorization, approval, consent,
      filing or registration with any federal Governmental Authority, or to the actual
      knowledge of the Institutional Purchaser any other Governmental Authority,
      is
      necessary in order to consummate the Transactions at the Closing Date and,
      assuming receipt of the Fed Determination, other than the Institutional
      Purchaser’s agreement with the Federal Reserve to certain customary passivity
      requirements that permit the Institutional Purchaser to have at least one
      director or one observer (in each case as contemplated by Section 5.3) with
      the
      Federal Reserve, Institutional Purchaser knows of no reason why any Governmental
      Authority, approvals or actions necessary for it to purchase all shares
      subscribed for may be denied or unduly delayed due solely to the nature of
      the
      Institutional Purchaser.

     

    5.           
      ADDITIONAL AGREEMENTS

     

    5.1           Availability
      of Information.  The Corporation agrees to use its best efforts to
      timely file all periodic reports required under Sections 13(a), 15(d) and
      14(a) of the Exchange Act and to maintain the listing of its Common Stock,
      including the Shares, on the Nasdaq Global Select Market, the New York Stock
      Exchange or other similar stock exchange for a period of at least three years
      following the Closing Date.

     

    5.2           Lock-up
      Agreement.  From and after the Closing Date until the Lock-up
      Expiration Date (as defined below) (the “Lock-up Period”), the undersigned
      Purchaser agrees that, without the prior written consent of the Corporation,
      he,
      she or it shall not directly or indirectly (i) offer, transfer, sell,
      contract to sell (including any short sale), grant any option to purchase or
      otherwise dispose of any Shares of Common Stock purchased by the Purchaser
      pursuant to this Purchase Agreement (including, without limitation, the shares
      of Common Stock issuable upon the conversion of the Preferred Stock purchased
      by
      the Institutional Purchaser pursuant to this Agreement and Shares of Common
      Stock of the Corporation which may be deemed to be beneficially owned by the
      undersigned in accordance with the rules and regulations of the SEC),
      (ii) enter into any Hedging Transaction (as defined below) involving the
      Shares purchased by the undersigned pursuant to this Purchase Agreement, or
      shares of Common Stock issuable upon the conversion of the Preferred Stock
      purchased by the Institutional Purchaser pursuant to this Agreement,
      (iii) make any demand for, or exercise any right with respect to, the
      registration of any Shares or any security convertible into or exercisable
      or
      exchangeable for the Common Stock purchased by the undersigned pursuant to
      this
      Purchase Agreement, or (iv) publicly announce any intention to do any of
      the foregoing (each of the foregoing referred to as a “Disposition”), except
      (a) in connection with a bona fide pledge to, or similar arrangement in
      connection with a bona fide borrowing from, a financial institution, (b) in
      the event of a change in control of the Corporation whereby 25% or more of
      the
      Corporation’s outstanding voting stock is acquired by a third party, (c) in
      the event that any necessary Governmental Agency approvals that are a condition
      precedent to the Closing are not obtained for any reason, (d) that the
      Purchaser may tender a proportionate part of its Shares or shares of Common
      Stock

     

     

    
      
        
        

      

      
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    issuable
      upon the conversion of the Preferred Stock purchased by the Institutional
      Purchaser pursuant to this Agreement in the event of a tender offer by a third
      party that is recommended or not opposed by the Corporation’s Board of
      Directors, or (e) in the event that the independent directors serving on
      the Corporation’s Board of Directors on the date of this Agreement no longer
      constitute a majority of the Corporation’s Board of Directors.  The
      foregoing restrictions shall not apply to transfers by a Purchaser of any or
      all
      of the Shares purchased by the Purchaser pursuant to this Agreement or shares
      of
      Common Stock issuable upon the conversion of the Preferred Stock purchased
      by
      the Institutional Purchaser pursuant to this Agreement to any affiliate of
      the
      Purchaser or to a foundation or charitable organization, provided that
      such transferee agrees in writing to the terms of this
      Section 5.2.  The foregoing restriction is expressly intended to
      preclude the undersigned from engaging in any Hedging Transaction or other
      transaction which is designed to or reasonably expected to lead to or result
      in
      a Disposition during the Lock-Up Period even if the securities would be disposed
      of by someone other than the undersigned.  “Hedging Transaction” means
      any short sale (whether or not against the box) or any purchase, sale or grant
      of any right (including, without limitation, any put or call option) with
      respect to any security (other than a broad-based market basket or index) that
      includes, relates to or derives any significant part of its value from the
      Common Stock.  For purposes of this Agreement, the “Lock-up Expiration
      Date” means:  (1) with respect to one-half of the Shares
      purchased by Purchaser hereunder and shares of Common Stock issuable upon the
      conversion of the Preferred Stock purchased by the Institutional Purchaser
      pursuant to this Agreement, in the aggregate, the first anniversary of the
      Closing Date; and (2) with respect to the remaining one-half of the Shares
      purchased by Purchaser hereunder and shares of Common Stock issuable upon the
      conversion of the Preferred Stock purchased by the Institutional Purchaser
      pursuant to this Agreement, in the aggregate, the second anniversary of the
      Closing Date; provided, however, that in the case of any event
      specified in clause (b) or (e) above, the “Lock-up Expiration Date” means
      the date of such event, and in the case of any event specified in
      clause (c) above, the “Lock-up Expiration Date” means: (x) with
      respect to one-half of the Shares purchased by Purchaser hereunder and shares
      of
      Common Stock issuable upon the conversion of the Preferred Stock purchased
      by
      the Institutional Purchaser pursuant to this Agreement, in the aggregate, six
      months from the Closing Date and (y) with respect to the other one-half of
      the Shares purchased by Purchaser hereunder and shares of Common Stock issuable
      upon the conversion of the Preferred Stock purchased by the Institutional
      Purchaser pursuant to this Agreement, in the aggregate, the first anniversary
      of
      the Closing Date.  The undersigned agrees that the Corporation may
      (i) with respect to any Shares purchased hereunder and shares of Common
      Stock issuable upon the conversion of the Preferred Stock purchased by the
      Institutional Purchaser pursuant to this agreement, cause the transfer agent
      for
      the Corporation to note stop transfer instructions with respect to such shares
      on the transfer books and records of the Corporation and (ii) with respect
      to any Shares or shares of Common Stock issuable upon the conversion of the
      Preferred Stock purchased by the Institutional Purchaser pursuant to this
      agreement for which the undersigned is the beneficial holder but not the record
      holder, cause the record holder of such shares to cause the transfer agent
      for
      the Corporation to note stop transfer instructions with respect to such shares
      on the transfer books and records of the Corporation, until the Lock-up
      Expiration Date with respect to all the shares purchased hereby.

     

     

    
      
        
        

      

      
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    5.3           Directorship.

     

    (a)           The
      Corporation agrees that, prior to the Closing Date, the Board of Directors
      of
      the Corporation (the “Board”) will increase the size of the Board if necessary
      to effect the provisions of this Section 5.3, and designate and take any
      and all actions necessary to appoint the designee of the Institutional Purchaser
      (such person and any successor designated by the Institutional Purchaser, the
      “Board Representative”), as a Class III member of the Board with a term expiring
      in 2010 and as a member of the Executive and Planning Committee, and any
      successor or comparable committees thereto.  The Corporation agrees
      that such designation and appointment of the Board Representative does not
      require any prior notice to or approval by any Governmental
      Authority.  The Board Representative shall initially be Collin E.
      Roche unless the Institutional Purchaser otherwise notifies the Corporation
      in
      writing at least two days prior to the Closing Date.  The Corporation
      further agrees that it will (i) nominate the Board Representative for
      election to the Board at every annual or special meeting of the Corporation’s
      stockholders to elect any Class III director (or if the Board ceases to be
      so classified, to elect one director) to serve as member of the Board for the
      applicable term, (ii) recommend to the stockholders that they vote to elect
      the Board Representative as a member of the Board at any such meeting, and
      (iii) include such recommendation in a timely manner in any proxy or other
      communication with the Corporation’s stockholders or the public regarding such
      election.  If the Board Representative fails to complete any term of
      office to which he is appointed or elected in accordance with this
      Section 5.3, whether due to his death, resignation, retirement,
      disqualification, or removal, the Board shall vote for and take any and all
      actions necessary to appoint such other designee of the Institutional Purchaser
      as the Board Representative to complete the remainder of such
      term.  The Board Representative may resign from the Board at any time
      by giving written notice to the Corporation at its principal executive office,
      and such resignation shall be effective without acceptance when the notice
      is
      given to the Corporation, unless a later effective time is specified in the
      notice.  Notwithstanding the above, except as specifically set forth
      above, nothing in this Section 5.3 is meant to confer upon the
      Institutional Purchaser the right to cause the Board to appoint any specific
      person(s) to serve as a director of the Corporation; provided,
however, that the Corporation shall be obligated to accept one
      such
      nominee of the Institutional Purchaser, under the Corporation’s procedures as
      described above; provided, further, that the right to a Board
      Representative shall not apply if the Institutional Purchaser ceases to own
      50%
      or more of the Corporation’s capital stock acquired directly or indirectly as a
      result of the Transactions.

     

    (b)           Any
      such Board Representative shall be entitled to the same rights and compensation
      as the then current directors of the Corporation at any time such Board
      Representative is serving as a director.

     

    (c)           If
      the Institutional Purchaser holds over 4.9% of the Common Stock (assuming
      conversion of the Preferred Stock) of the Corporation and does not hold a board
      seat, for any reason, the Institutional Purchaser shall have the right to
      designate, in its sole discretion, one individual (the “Observer”) to attend all
      meetings of the Board of Directors of the Corporation.  The Observer
      shall not be entitled to vote upon any matters submitted to a vote of the Board
      of Directors, but shall be entitled to receive all reports, presentations and
      materials as if it were a member of the Board of Directors.

     

     

    
      
        
        

      

      
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    5.4           Regulatory
      Matters.  Each of the Corporation and Institutional Purchaser
      agrees to use reasonable efforts to take all actions and to do all things
      necessary, proper or advisable to obtain a Fed Determination and any other
      authorizations, consents, orders and approvals of all Governmental Authorities
      necessary for Institutional Purchaser to purchase the Shares and the Preferred
      Stock on the Closing Date on terms consistent with the terms set forth in this
      Agreement (including without limitation the ability to appoint a Board
      Representative pursuant to Section 5.3 below), including, without
      limitation, entering into an agreement with the Federal Reserve providing for
      such customary passivity covenants and commitments by the Institutional
      Purchaser as the Federal Reserve may require in form and substance satisfactory
      to the Institutional Purchaser for purposes of both the BHC Act and the CIBC
      Act
      (provided that Institutional Purchaser shall not be required to forfeit any
      rights Institutional Purchaser is specifically entitled to receive pursuant
      to
      this Agreement, including without limitation the ability to appoint a director
      pursuant to Section 5.3 below).  Institutional Purchaser and the
      Corporation each agree to make an appropriate filing of a notification and
      report form pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of
      1976
      (the “HSR Act”) with respect to the transactions contemplated by this Agreement
      (including any proposed or contemplated open market purchases and conversion
      of
      Preferred Stock by the Institutional Purchaser) promptly after the date of
      this
      Agreement and to supply promptly any additional information and documentary
      material that may be requested pursuant to the HSR Act.  The
      Corporation will bear the total cost of any filings required by Institutional
      Purchaser under the HSR Act.

     

    5.5           Publicity.  Purchaser
      acknowledges that the Corporation will publicly announce the entering into
      this
      Agreement and the completion of the Transactions as soon as practicable
      following the date hereof and in any event not later than the fourth business
      day after the Closing Date, and Purchaser hereby agrees that the Corporation
      may
      specifically name Purchaser as one of the Purchasers of Shares and, in the
      case
      of the Institutional Purchaser, the Preferred Stock, in this offering in any
      such announcement and in any public disclosure regarding the Transactions
      thereafter, provided, however, that prior to making any such
      disclosure, the Corporation will provide the Institutional Purchaser a
      reasonable period of time (but not more than three business days) to review
      and
      provide input with respect to such disclosure which the Corporation may, in
      its
      reasonable discretion, consider including in such announcement and/or
      disclosure.

     

    5.6           Indemnification
      of Purchasers.  The Corporation shall indemnify and hold
      Purchasers harmless from and against all claims in respect of all fees paid
      or
      payable to Morgan Stanley, KBW and Blair in connection with this Agreement
      and
      the transactions contemplated thereby.

     

    5.7           Indemnification
      of the Corporation.  Purchaser acknowledges that he, she or it
      understands the meaning and legal consequences of the representations,
      warranties and covenants contained in Section 4.2 hereof, and hereby agrees
      to indemnify and hold harmless the Corporation and its Subsidiaries, and each
      of
      its and its Subsidiaries’ directors, officers, employees, agents and affiliates,
      from and against any and all loss, damage or liability due to or arising out
      of
      a breach of any representation or warranty of the Purchaser contained in this
      Agreement.

     

     

    
      
        
        

      

      
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    5.8           Confidentiality;
      Confidentiality and Standstill Agreement; Additional Standstill
      Commitment.

     

    (a)           For
      so long as a Purchaser owns any Shares or Preferred Stock, the Purchaser agrees
      and agrees to cause its Representatives (as defined below) (to the extent such
      Representatives are provided any such confidential information by the
      Corporation or Purchaser), to keep confidential any information obtained from
      the Corporation, except to the extent that such information can be shown to
      have
      been (i) previously known on a non-confidential basis by such Purchaser or
      its Representatives (as hereinafter defined), (ii) in the public domain
      through no fault of such Purchaser or its Representatives or (iii) later
      acquired by such Purchaser from sources other than the Corporation or any of
      its
      Subsidiaries not known by such Purchaser or its Representatives, as applicable,
      to be bound by any confidentiality obligation; provided that a Purchaser may
      disclose such information if required by judicial or administrative process
      or
      by other requirements of law or national stock exchange, subject to compliance
      with the following sentence.  In the event any Purchaser pursuant to
      this Agreement or anyone to whom any of them transmit confidential information
      is requested or required (by oral questions, interrogatories, requests for
      information or documents, subpoenas, civil investigative demand or similar
      process) to disclose any such information, such Purchaser shall (x) provide
      the Corporation with prompt notice so that the Corporation may seek a protective
      order or other appropriate remedy and/or waive such holder’s compliance with the
      provisions of this section, (y) furnish only that portion of such
      information that such Purchaser is advised by counsel is legally required and
      (z) at the Corporation’s expense and direction, exercise its reasonable
      efforts to obtain reliable assurance that confidential treatment will be
      accorded such information.  For purposes of this Agreement,
“Representative” shall mean, with respect to any person, any of such person’s
      officers, directors, employees, agents, attorneys, accountants, consultants,
      equity financing partners or financial advisors or other person associated
      with,
      or acting for or on behalf of, such person.

     

    (b)           The
      terms, provisions, rights and obligations of the Purchaser and the Corporation
      included in that certain Confidentiality and Standstill Agreement (the “CA”)
      previously entered into between the Purchaser and the Corporation in connection
      with the evaluation by the Purchaser of the Transactions contemplated by this
      Agreement, including such CA, shall terminate and be of no further force or
      effect as of the Closing (as contemplated by Section 7 of the
      CA).  In addition, each Purchaser agrees that, without the prior
      written consent of the Board of Directors of the Corporation, neither such
      Purchaser nor its affiliates shall acquire shares of voting or nonvoting stock
      (whether in the form of common or preferred stock) of the Corporation if, after
      such acquisition, the Purchaser and affiliates would hold more than 14.9% of
      the
      Corporation’s voting stock.

     

    5.9           Certain
      Covenants.

     

    (a)           For
      so long as the Institutional Purchaser or any of its affiliates holds Shares
      or
      any shares of Preferred Stock, the Corporation shall deliver to the
      Institutional Purchaser and such affiliates as soon as available, consolidated
      statements of income and cash flows of the Corporation and its Subsidiaries
      for
      each month and for the period from the beginning of the fiscal year to the
      end
      of such month, and consolidated balance sheets of the Corporation and its
      Subsidiaries as of the end of such fiscal month, setting forth in each
      case

     

     

    
      
        
        

      

      
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    comparisons
      to the Corporation’s annual budget and to the corresponding period in the
      preceding fiscal year, in each case prepared in accordance with
      GAAP.

     

    (b)           For
      so long as the Institutional Purchaser or any of its affiliates holds Shares
      or
      any shares of Preferred Stock, the Corporation shall permit the Institutional
      Purchaser and its affiliates and any of their respective Representatives, upon
      reasonable notice and during normal business hours and at such other times
      as
      the Institutional Purchaser or its affiliates may reasonably request, to
      (i) visit and inspect any of the properties of the Corporation and its
      Subsidiaries, (ii) examine the corporate and financial records of the
      Corporation and its Subsidiaries and make copies thereof or extracts therefrom
      and (iii) discuss the affairs, finances and accounts of any such
      corporations with the directors, officers and key employees of the Corporation
      and its Subsidiaries, and the Corporation shall use its best efforts to cause
      the independent accountants of the Corporation and its Subsidiaries to be
      available to the Institutional Purchaser, its affiliates and their respective
      Representatives (at reasonable times and upon reasonable notice); provided
      however, that in the case of each of Section 5.9(a) and 5.9(b) hereof,
      the Institutional Purchaser shall, and shall cause its Representatives to,
      be
      bound by the provisions of Section 5.8(a).

     

    5.10           Subsequent
      Sales of Common Stock.  The Corporation shall not take any action
      or omit to take any action which would cause the Transactions or any portion
      thereof to require a vote of the Corporation’s stockholders.

     

    6.           
      MISCELLANEOUS

     

    6.1           Survival
      of Representations and Warranties.  All statements contained in
      any officers’ certificates delivered by or on behalf of the Corporation or any
      of its Subsidiaries pursuant to this Agreement or in connection with the
      Transactions contemplated hereby will be deemed representations or warranties
      of
      the Corporation under this Agreement.  All representations and
      warranties contained in this Agreement made by or on behalf of the Corporation
      or the Purchasers will survive the execution and delivery of this Agreement,
      any
      investigation at any time made by or on behalf of the Corporation or the
      Purchasers, and the sale and purchase of the Shares and the Preferred Stock
      under this Agreement, and, except for representations and warranties set forth
      in Section 4.1(h), (i), (j), (k), (l), (m), (n), (o), (p) and (r) and
      Section 4.2(k) shall expire on the first anniversary of the Closing
      Date.

     

    6.2           Successors
      and Assigns.  This Agreement shall be binding upon and inure to
      the benefit of and be enforceable by or against the respective successors and
      assigns of the parties hereto.

     

    6.3           Notices.  All
      written communications provided for herein are required to be sent by U.S.
      Certified Mail or recognized overnight delivery service (with charges prepaid)
      and (i) if to a Purchaser, addressed to such Purchaser at the address as
      specified for such communications in the Schedule of Purchasers attached hereto
      as Schedule I, or at such other address as such Purchaser may have
      specified to the Corporation in writing, and (ii) if to the Corporation,
      addressed to it at:

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

       

    

    PrivateBancorp,
      Inc.

    70
      West
      Madison Street

    Suite
      900

    Chicago,
      Illinois  60602

    Attention:  Christopher
      J. Zinski, Esq.

     

    or
      at
      such other address as the Corporation may have specified to the Purchaser in
      writing.  Notices under this Section 6.3 shall be deemed given
      only when actually received.

     

    6.4           Governing
      Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
      ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF ILLINOIS, WITHOUT GIVING
      EFFECT TO THE CONFLICTS OF LAWS PROVISIONS OF SUCH STATE.

     

    6.5           Counterparts.  This
      Agreement may be executed in one or more counterparts and, if executed in more
      than one counterpart, the executed counterparts shall each be deemed to be
      an
      original, but all such counterparts shall together constitute one and the same
      instrument.

     

    6.6           Headings.  The
      headings herein are inserted for convenience of reference only and are not
      intended to be part of, or to affect the meaning or interpretation of, this
      Agreement.

     

    6.7           Severability.  Any
      provision of this Agreement that is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof, and any such prohibition or unenforceability in any
      jurisdiction shall (to the full extent permitted by law) not invalidate or
      render unenforceable such provision in any other jurisdiction.

     

    6.8           Expenses.  Each
      Purchaser and the Corporation shall bear all expenses incurred by it in
      connection with the Agreement and the Transactions contemplated hereby; provided
      however, the Corporation shall promptly reimburse the Institutional Purchaser
      and its affiliates for their actual out-of-pocket costs and expenses (including,
      without limitation, attorneys’, accountants’, consultants’ and other advisors’
fees and expenses and any filing fees with respect to any required regulatory
      or
      Government Authority approvals) arising in connection with this Agreement,
      the
      Preemptive and Registration Rights Agreements and the Transactions, which amount
      shall not exceed $1,000,000.

     

    6.9           Construction.  Each
      agreement contained herein shall be construed (absent express provision to
      the
      contrary) as being independent of each other agreement contained herein, so
      that
      compliance with any one agreement shall not (absent such an express contrary
      provision) be deemed to excuse compliance with any other
      agreement.  Where any provision herein refers to action to be taken by
      any person or entity, or which such person or entity is prohibited from taking,
      such provision shall be applicable whether such action is taken directly or
      indirectly by such person or entity.

     

    [SIGNATURE
      PAGE FOLLOWS]

     

     

    
      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

    

    

    If
      the
      foregoing correctly sets forth the agreement between the Corporation and the
      Purchaser, please indicate your acceptance in the space provided for that
      purpose below.

     

    
       

      
        
          
            
              	 	
                      
                        Very
                          truly yours, 

                         

                      

                      
                        PRIVATEBANCORP,
                          INC.

                      

                       

                    

            

            
              
                	 
                        	 By:	 

              

            

            
              
                	
                      	Name:	 Larry D. Richman
	 	Title:	 President and Chief Executive
                        Officer

                
                   

                  
                    
                      
                        
                           

                          
                            
                            

                                                               

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    SEPARATE
      SIGNATURE PAGE FOR EACH PURCHASER ATTACHED

     

     

    
      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

    

    

    SIGNATURE
      PAGE

     

    

     

    
      	
              ________________________________________________________

              PURCHASER
                NAME

            	
              ____________________________________________________________

              No.
                of Shares to be Purchased

               

            
	 	
                                                                                   
                $28.71                                
                                       
                  

            
	 	
              Price
                per Share

            
	
               

               

               

              By:______________________________________________________

              Name:________________________________________________

              Title:_________________________________________________

               

               

            	
               

               

               

              Date:______________________________________________________

               

            
	
              Exact
                Name for Registration of Shares:

               

              ________________________________________________________

            	
               

            
	 
              
              Registered
                Address:

               

              ________________________________________________________

               

              ________________________________________________________

               

              ________________________________________________________

               

               

            	 
              
              Mailing
                Address:

               

              ___________________________________________________________

               

              ___________________________________________________________

               

              ___________________________________________________________

               

              ___________________________________________________________

            
	
              Contact
                Person: ___________________________________________

              Telephone:
                ___________________________________________

              Facsimile:   
                ___________________________________________

              Email:
                _______________________________________________

            	 

    

    

     

    Number
      of
      Shares Owned of Record or Beneficially Prior to
      Purchase:                                                                                                                     
*

    *     Provide
      details regarding the nature of
      any direct or indirect beneficial ownership:
      _______________________________________

           _____________________________________________________________________________________________________

     

    Provide
      information regarding any affiliation or business relationship you have or
      had
      with PrivateBancorp, Inc. since January 1, 2004 (other than through stock
      ownership):

    ___________________________________________________________________________________________________________________________________________________________________

    

    
      
        
          
          

        

        
          20ex10-2.htm

    EXHIBIT
      10.2

     

    PREEMPTIVE
      AND REGISTRATION RIGHTS AGREEMENT

     

    THIS
      PREEMPTIVE AND REGISTRATION RIGHTS AGREEMENT (this
“Agreement”) is entered into as of November 26, 2007 by
      and among PrivateBancorp, Inc., a Delaware corporation (the
“Company”), and the persons listed on the signature
      page hereof
      (referred to collectively herein, and including the Institutional Investor
      (as
      defined below), as the “Investors” and each individually as an
“Investor”).

     

    RECITALS

     

    WHEREAS,
      this Agreement is made pursuant to the Stock Purchase Agreement (the
“Stock Purchase Agreement”), dated as of November 26,
      2007, by and among the Company and certain purchasers of shares of the Company’s
      common stock and the Company’s Series A Junior Nonvoting Preferred Stock
      (the “Series A Stock”) thereunder, including the
      Investors.

     

    WHEREAS,
      pursuant to the Stock Purchase Agreement, (a) each of the Investors has
      agreed to purchase from the Company pursuant to a private placement offering
      by
      the Company of shares of its Common Stock, no par value (the “Common
      Stock”) and/or shares of its Series A Stock (together with the
      Common Stock, the “Shares”), and (b) the Company will
      issue the Shares to the Investors in accordance therewith; and

     

    WHEREAS,
      in connection with the consummation of the transactions contemplated by the
      Stock Purchase Agreement, the parties desire to enter into this Agreement in
      order to grant certain registration rights to the Investors, and certain
      preemptive rights to the Institutional Investor, as set forth
      below.

     

    NOW,
      THEREFORE, in consideration of the foregoing premises and for other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto agree as follows:

     

    SECTION 1         GENERAL

     

    1.1           Definitions. 
      As used in this Agreement, the following terms shall have the following
      respective meanings:

     

    “Affiliate”
      of any particular Person means any other Person controlling, controlled by
      or
      under common control with such particular person or
      entity.  For purposes of clarification GTCR Fund IX/A, L.P., a
      Delaware limited partnership, GTCR Fund IX/B, L.P., a Delaware limited
      partnership and GTCR Co-Invest III, L.P., a Delaware limited partnership, shall
      be deemed to be Affiliates.

     

    “Common
      Stock” means shares of common stock, no par value per share, of the
      Company.

     

    “Exchange
      Act” means the Securities Exchange Act of 1934, as amended, or similar
      federal statute, and the rules and regulations of the Commission thereunder,
      all
      as the same shall be in effect at the time.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Form S-3”
      means such form under the Securities Act as in effect on the date hereof or
      any
      successor or similar registration form under the Securities Act subsequently
      adopted by the SEC which permits inclusion or incorporation of substantial
      information by reference to other documents filed by the Company with the
      SEC.

     

    “Holder”
      means any Investor, including the Institutional Investor and its Affiliates,
      who
      holds Registrable Securities and any holder of Registrable Securities to whom
      the registration rights conferred by this Agreement have been transferred in
      compliance with Section 2.10 hereof.

     

    “Institutional
      Investor” means GTCR Fund IX/A, L.P., a Delaware limited
      partnership.

     

    “Institutional
      Investor Percentage Interest” means the aggregate percentage beneficial
      ownership of the Institutional Investor and its Affiliates of the Company’s
      outstanding shares of Common Stock on the date of determination (assuming
      conversion of the Series A Stock).

     

    “Lock-up
      Agreement” has the meaning assigned thereto in Section 5.2 of the
      Stock Purchase Agreement.

     

    “New
      Stock” means Common Stock or Series A Stock, or securities
      convertible into or exchangeable for Common Stock of the Company or which have
      voting rights or participation features with Common Stock of the Company,
      offered in a public or nonpublic offering by the Company.

     

    “Person”
      means any individual, corporation, partnership, joint venture, limited liability
      company, business trust, joint stock company, trust or unincorporated
      organization or any government or any agency or political subdivision
      thereof.

     

    “Qualified
      Equity Offering” means a public or nonpublic offering of Common Stock
      or Series A Stock, or securities convertible into or exchangeable for
      Common Stock of the Company or which have voting rights or participation
      features with Common Stock of the Company (collectively, “New
      Stock”) solely for cash and not pursuant to a Special Registration;
provided, however, that none of the following offerings shall
      constitute a Qualified Equity Offering:  (a) any offering
      pursuant to any stock purchase plan, stock ownership plan, stock option or
      equity compensation plan or other similar plan where stock is being issued
      or
      offered to a trust, other entity or otherwise, to or for the benefit of any
      employees, potential employees, officers or directors of the Company, or
      (b) any offering made as consideration pursuant to an acquisition (whether
      structured as a merger or otherwise), a partnership or joint venture or
      strategic alliance or investment by the Company or similar non-capital raising
      transaction (but not an offering to raise capital to fund an
      acquisition).

     

    “Register,”
      “registered,” and “registration” shall refer
      to a registration effected by preparing and filing a registration statement
      in
      compliance with the Securities Act and applicable rules and regulations
      thereunder, and the declaration or ordering of effectiveness of such
      registration statement.

     

    “Registrable
      Securities” means (a) Shares of Common Stock; (b) any shares
      of Common Stock issued or issuable upon the conversion of any Series A
      Stock issued pursuant to

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    the
      Stock
      Purchase Agreement; (c) any other shares of Common Stock held by the
      Holders; and (d) any Common Stock of the Company issued as (or issuable
      upon the conversion or exercise of any warrant, right, preferred stock or other
      security which is issued as) a dividend or other distribution with respect
      to,
      or in exchange for or in replacement of, the Shares or any other shares of
      Common Stock held by the Holders, provided, however, that
      Registrable Securities shall not include any shares of Common Stock which have
      been sold to the public by a Holder either pursuant to a registration statement
      or Rule 144 under the Securities Act, or which have been sold in a private
      transaction in which the transferor’s rights under this Agreement are not
      assigned.

     

    “Registrable
      Securities then outstanding” shall be the number of shares determined
      by calculating the total number of shares of the Company’s Common Stock that are
      Registrable Securities and either (a) are then issued and outstanding or
      (b) are issuable pursuant to exercisable or convertible securities
      (including Series A Stock).

     

    “Registration
      Expenses” shall mean all expenses incurred by the Company in effecting
      any registration pursuant to this Agreement (including any Mandatory
      Registration or Shelf Registration), including, without limitation, all
      registration and filing fees, printing expenses, fees and disbursements of
      counsel for the Company, blue sky fees and expenses, and expenses of the
      Company’s independent accountants in connection with any regular or special
      reviews or audits incident to or required by any such registration, and fees
      and
      expenses of underwriters (excluding discounts and commissions) and any other
      Persons retained by the Company, but shall not include Selling Expenses, certain
      fees and disbursements of counsel for the Holders (except as set forth below)
      and the compensation of regular employees of the Company, which shall be paid
      in
      any event by the Company.  Notwithstanding the foregoing, Registration
      Expenses shall include the reasonable, documented, fees and expenses of one
      counsel chosen by the holders of a majority of the Registrable Securities
      covered by such registration for such counsel rendering services customarily
      performed by counsel for selling stockholders that are submitted to the Company
      in writing.

     

    “SEC”
      or “Commission” means the Securities and Exchange Commission
      and any successor agency.

     

    “Securities
      Act” shall mean the Securities Act of 1933, as amended, or similar
      federal statute, and the rules and regulations of the Commission thereunder,
      all
      as the same shall be in effect at the time.

     

    “Selling
      Expenses” shall mean all underwriting discounts, selling commissions
      and stock transfer taxes applicable to the sale of Registrable Securities and
      fees and disbursements of counsel for any Holder (other than the fees and
      disbursements of counsel included in Registration Expenses).

     

    “Series A
      Stock” means the Company’s Series A Junior Nonvoting Preferred
      Stock.

     

    “Shares”
      mean shares of Common Stock and/or Series A Stock issued by the Company to
      the Investors pursuant to the Stock Purchase Agreement.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Special
      Registration” means the registration of (a) equity securities
      and/or options or other rights in respect thereof solely registered on
      Form S-4 or Form S-8 (or successor forms) or (b) shares of equity
      securities and/or options or other rights in respect thereof to be offered
      to
      directors, management, employees, potential employees, consultants, customers,
      lenders or vendors of the Company or its direct or indirect subsidiaries or
      in
      connection with dividend reinvestment plans.

     

    SECTION 2          REGISTRATION

     

    2.1           Demand
      Registration and Shelf Registration.

     

    (a)           Subject
      to the conditions of this Section 2.1 and the terms and conditions of the
      Lock-up Agreement, if the Company shall receive a written request from
      (1) the Institutional Investor, so long as the Institutional Investor and
      its Affiliates hold at least 25% of the Shares (determined on an as converted
      to
      Common Stock basis) held by the Institutional Investor and its Affiliates as
      of
      the date hereof or (2) , in the event the Institutional Investor and its
      Affiliates do not hold at least 25% of the Shares (determined on an as converted
      to Common Stock basis) held by the Institutional Investor and its Affiliates
      as
      of the date hereof, then the Holders of at least fifty percent (50%) of the
      Registrable Securities (the “Initiating Holders”) that the
      Company file a registration statement under the Securities Act covering the
      registration of at least twenty-five percent (25%) of the Registrable Securities
      then outstanding (or a lesser percent if the anticipated aggregate offering
      price, net of underwriting discounts and commissions, would exceed $50,000,000),
      then the Company shall, within ten (10) days of the receipt thereof, give
      written notice of such request to all Holders, and subject to the limitations
      of
      this Section 2.1, effect, as expeditiously as reasonably possible, the
      registration under the Securities Act of all Registrable Securities that either
      the Holders request to be registered.

     

    (b)           The
      Company shall use its reasonable best efforts to file with the SEC a
      registration statement on the applicable SEC form with respect to the resale
      from time to time, whether underwritten or otherwise, of the Registrable
      Securities by the holders thereof within nine months after the date
      hereof.  The Company shall use its reasonable best efforts to respond
      to all SEC comments related to such registration statement within 20 calendar
      days of the receipt thereof, and shall use its reasonable best efforts to cause
      such registration statement to be declared effective by the SEC within twelve
      months after the date hereof.  The Company shall use its reasonable
      best efforts to maintain the effectiveness of the registration effected pursuant
      to this Section 2.1(b) at all times, subject only to the limitations on
      effectiveness set forth in Section 2.5 below.  The registration
      contemplated by this Section 2.1(b) is referred to herein as the “Mandatory
      Registration.”  The Mandatory Registration shall be filed with the SEC
      in accordance with and pursuant to Rule 415 promulgated under the
      Securities Act (or any successor rule then in effect) (a “Shelf
      Registration”).  So long as any such Shelf Registration is
      effective as required herein and in compliance with the Securities Act and
      is
      usable for resale of Registrable Securities, the Institutional Investor or
      the
      holders of at least 50% of the Registrable Securities shall be entitled to
      demand any number of draw-downs (including underwritten draw-downs, provided
      that the anticipated aggregate offering value of the Registrable Securities
      requested to be included in such underwritten draw-down must equal at least
      twenty-five percent (25%) of the Registrable Securities then outstanding (or
      a
      lesser percent if the anticipated aggregate offering price, net of underwriting
      discounts and commissions, would exceed

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    $25,000,000))
      from the shelf and, in connection with any such draw-down, the Company shall
      take all customary and reasonable actions that the Company would take in
      connection with an underwritten registration pursuant to Section 2.1(a) or
      Section 2.3 (including, without limitation, all actions referred to in
      Section 2.5 necessary to effectuate such sale in the manner determined by
      the holders of at least a majority of the Registrable Securities to be included
      in such underwritten draw-down).  The Company shall use its reasonable
      efforts to cause the registration statement or statements filed on Form S-3
      or any similar short-form registration as the Company may elect to remain
      effective until such date (the “Shelf Termination Date”) as is
      the earlier of (i) the date on which all Registrable Securities included in
      the registration statement shall have been sold or shall have otherwise ceased
      to be Registrable Securities and (ii) the date on which all remaining
      Registrable Securities may be sold during any ninety (90) day period without
      any
      restriction pursuant to Rule 144 under the Securities Act, other than
      Rule 144(k), after taking into account any Holders’ status as an affiliate
      of the Company as determined by the counsel to the Company pursuant to a written
      opinion letter addressed to the Company’s transfer agent to such
      effect.  In the event the Mandatory Registration must be effected on
      Form S-1 or any similar long-form registration as the Company may elect,
      such registration shall nonetheless be filed as a Shelf Registration and the
      Company shall use its commercially reasonable efforts to keep such registration
      current and effective, including by filing periodic post-effective amendments
      to
      update the financial statements contained in such registration statement in
      accordance with Regulation S-X promulgated under the Securities Act until
      the Shelf Termination Date.  The Company shall not include in the
      Mandatory Registration any securities which are not Registrable Securities
      without the prior written consent of the holders of at least a majority of
      the
      Registrable Securities included in such registration.

     

    (c)           If
      the Institutional Investor or the Initiating Holders, as the case may be, intend
      to distribute the Registrable Securities covered by their request by means
      of an
      underwriting or any underwritten takedown off the registration statement filed
      pursuant to the Mandatory Registration, they shall so advise the Company as
      a
      part of their request made pursuant to this Section 2.1 or any request
      pursuant to Section 2.3 and the Company shall include such information in
      the written notice referred to in Section 2.1(a), Section 2.1(b) or
      Section 2.3(a), as applicable.  In such event, the right of any
      Holder to include such Holder’s Registrable Securities in such registration or
      underwritten takedown off the registration statement filed pursuant to the
      Mandatory Registration shall be conditioned upon such Holder’s participation in
      such underwriting and the inclusion of such Holder’s Registrable Securities in
      the underwriting to the extent provided herein.  All Holders proposing
      to distribute their securities through such underwriting shall enter into an
      underwriting agreement in customary form with the underwriter or underwriters
      selected for such underwriting by the Company and reasonably acceptable to
      the
      Institutional Investor, so long as the Institutional Investor and its Affiliates
      hold at least 25% of the Shares (determined on an as converted to Common Stock
      basis) held by the Institutional Investor and its Affiliates as of the date
      hereof, and, in the event the Institutional Investor and its Affiliates do
      not
      hold at least 25% of the Shares (determined on an as converted to Common Stock
      basis) held by the Institutional Investor and its Affiliates as of the date
      hereof, then the Holders of a majority of the Registrable Securities; provided
      that no holder of Registrable Securities included in any underwritten
      registration or underwritten takedown off the registration statement filed
      pursuant to the Mandatory Registration shall be required to make any
      representations or warranties to the Company or the underwriters (other than
      representations and warranties regarding such holder, such holder’s title to the
      securities and

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    such
      holder’s intended method of distribution) or, without the consent of the
      Institutional Investor, to undertake any indemnification obligations to the
      Company or the underwriters with respect thereto, except as otherwise provided
      in Section 2.9 below.

     

    Notwithstanding
      any other provision of this Section 2.1 or Section 2.3, if the
      underwriter advises the Company that marketing factors require a limitation
      of
      the number of securities to be underwritten (including Registrable Securities)
      then the Company shall so advise all Holders of Registrable Securities which
      would otherwise be underwritten pursuant hereto, and the number of shares that
      may be included in the underwriting shall be allocated to the Holders of such
      Registrable Securities on a pro rata basis based on the number of Registrable
      Securities held by all such Holders (including the Initiating
      Holders).  Any Registrable Securities excluded or withdrawn from such
      underwriting shall be withdrawn from the registration.

     

    (d)           The
      Company shall not be required to effect a registration pursuant to this
      Section 2.1 other than the Mandatory Registration pursuant to
      Section 2.1(b) above:  (i) prior to the first anniversary
      date on the Closing Date (as defined in the Stock Purchase Agreement);
      (ii) after the Company has effected two (2) registrations pursuant to this
      Section 2.1, and such registration has been declared or ordered effective
      and kept effective by the Company as required by Section 2.5(a) of this
      Agreement and at least fifty percent (50%) of the Registrable Securities thereby
      are sold; (iii) during the period starting with the date thirty (30) days
      prior to the Company’s good faith estimate of the date of filing of, and ending
      on a date ninety (90) days after the effective date of, a Company-initiated
      registration; provided that the Company is actively employing in good faith
      all
      reasonable efforts to cause such registration statement to become effective;
      (iv) if the Company shall furnish to the Institutional Investor and the
      Holders requesting a registration statement pursuant to this Section 2.1, a
      certificate signed by the Chairman of the Board stating that in the good faith
      and reasonable judgment of the Board of Directors of the Company, the
      anticipated offering would be seriously detrimental to the Company and its
      stockholders for such registration statement to be effected at such time (but
      excluding any detriment to the Company solely as a result of its impact on
      the
      share price), in which event the Company shall have the right to defer such
      filing for a period of not more than ninety (90) days after receipt of the
      request of the Institutional Investor or Initiating Holders; provided
      that such right to delay a request shall be exercised by the Company not
      more than twice in any twelve (12) month period; or (v) if the
      Institutional Investor or Initiating Holders propose to dispose of shares of
      Registrable Securities that may be immediately registered on Form S-3
      pursuant to a request made pursuant to Section 2.3
      below.  Notwithstanding the foregoing, any expenses in connection with
      such registration or attempted registration shall be Registration
      Expenses.

     

    (e)           The
      Company may include in any such registration other securities for sale for
      its
      own account or for the account of any other Person; provided that, if
      the underwriter for the offering shall determine that the number of shares
      proposed to be offered in such offering would be reasonably likely to adversely
      affect such offering, then the securities to be sold by the Institutional
      Investor and/or the Holders shall be included in such registration before any
      securities proposed to be sold for the account of the Company or any other
      Person.

     

    (f)           The
      Company shall not grant to any other Person the right to request the Company
      (i) to register any shares of Common Stock in a demand registration unless
      such rights

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    are
      consistent with the provisions hereof, or (ii) to register any securities
      of the Company (other than shares of Common Stock) in a demand
      registration.

     

    2.2           Piggyback
      Registrations.

     

    (a)           Subject
      to the terms and conditions of the Lock-up Agreement, the Company shall notify
      each Investor who holds, and all Holders of, Registrable Securities in writing
      at least ten (10) days prior to the filing of any registration statement under
      the Securities Act for purposes of a public offering of securities of the
      Company (whether in connection with a public offering of securities by the
      Company, a public offering of securities by shareholders of the Company, or
      both, but excluding a registration relating solely to employee benefit plans,
      or
      a registration relating to a corporate reorganization or other transaction
      on
      Form S-4, or a registration on any registration form that does not permit
      secondary sales) and will afford each such Investor and/or Holder an opportunity
      to include in such registration statement all or part of such Registrable
      Securities held by such Investor and/or Holder as set forth
      herein.  Each Investor and/or Holder desiring to include in any such
      registration statement all or any part of the Registrable Securities held by
      such Investor and/or Holder shall, within five (5) days after the
      above-described notice from the Company, so notify the Company in
      writing.  Such notice shall state the intended method of disposition
      of the Registrable Securities by such Investor and/or Holder as set forth
      herein.  If an Investor and/or Holder decides not to include all of
      its Registrable Securities in any registration statement thereafter filed by
      the
      Company, such Investor or Holder shall nevertheless continue to have the right
      to include any Registrable Securities in any subsequent registration statement
      or registration statements as may be filed by the Company with respect to
      offerings of its securities, all upon the terms and conditions set forth
      herein.

     

    (b)           Underwriting.  If
      the registration statement under which the Company gives notice under this
      Section 2.2 is for an underwritten offering, the Company shall so advise
      Investors who hold, and the Holders of, Registrable Securities.  In
      such event, the right of any such Investor and/or Holder to be included in
      a
      registration pursuant to this Section 2.2 shall be conditioned upon such
      Investor’s or Holder’s participation in such underwriting and the inclusion of
      such Investor’s and/or Holder’s Registrable Securities in the underwriting to
      the extent provided herein.  All Investors and/or Holders proposing to
      distribute their Registrable Securities through such underwriting shall enter
      into an underwriting agreement in customary form with the underwriter or
      underwriters selected for such underwriting by the Company.

     

    Notwithstanding
      any other provision of this Agreement, if the underwriter determines in good
      faith that marketing factors require a limitation of the number of shares to
      be
      underwritten, the number of shares that may be included in the underwriting
      shall be allocated first to the Company; second, to all Investors and/or Holders
      who are entitled to participate and who have elected to participate in the
      offering pursuant to the terms of this Agreement, on a pro rata basis based
      upon
      the total number of shares held by each such participating Investor or Holder
      that are subject to piggyback registration rights pursuant hereto; and third,
      to
      any other stockholder of the Company on a pro rata basis.

     

    If
      any
      Investor or Holder disapproves of the terms of any such underwriting, such
      Investor or Holder may elect to withdraw therefrom by written notice to the
      Company and the

     

    
      
        
        

      

      
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    underwriter,
      delivered at least ten (10) calendar days prior to the effective date of the
      registration statement.  Any Registrable Securities excluded or
      withdrawn from such underwriting shall be excluded and withdrawn from the
      registration.  For any Investor or Holder which is a partnership or
      corporation, the partners, stockholders, subsidiaries, parents and affiliates
      of
      such Investor or Holder, or the estates and family members of any such partners
      and retired partners and any trusts for the benefit of any of the foregoing
      Persons shall be deemed to be a single “Investor” or “Holder”, as the case may
      be, and any pro rata reduction with respect to such “Investor” or “Holder” shall
      be based upon the aggregate amount of shares carrying registration rights owned
      by all entities and individuals included in such “Investor” or “Holder”, as
      defined in this sentence.

     

    (c)           Right
      to Terminate Registration.  The Company shall have the right to
      terminate or withdraw any registration initiated by it under this
      Section 2.2 prior to the effectiveness of such registration whether or not
      any Investor and/or Holder has elected to include securities in such
      registration.  The Registration Expenses of such withdrawn
      registration shall be borne by the Company in accordance with Section 2.4
      hereof.

     

    (d)           The
      Company shall not grant to any other Person the right to request the Company
      (i) to register any shares of Common Stock in a piggyback registration
      unless such rights are consistent with the provisions hereof, or (ii) to
      register any securities of the Company (other than shares of Common Stock)
      in a
      piggyback registration.

     

    2.3           Form S-3
      Registration.  Subject to the Lock-up Agreement, in case the
      Company shall receive at any time from (1) the Institutional Investor, so
      long as the Institutional Investor and its Affiliates hold at least 25% of
      the
      Shares (determined on an as converted to Common Stock basis) held by the
      Institutional Investor and its Affiliates as of the date hereof, or (2) in
      the event the Institutional Investor and its Affiliates do not hold at least
      25%
      of the Shares (determined on an as converted to Common Stock basis) held by
      the
      Institutional Investor and its Affiliates as of the date hereof, then the
      Holders of at least 50% of the Registrable Securities then outstanding a written
      request or requests that the Company effect a registration on Form S-3 (or
      any successor to Form S-3) or any similar short-form registration statement
      and any related qualification or compliance with respect to all or a part of
      the
      Registrable Securities owned by the Institutional Investor or such Holder or
      Holders, the Company will:

     

    (a)           promptly
      give written notice of the proposed registration, and any related qualification
      or compliance, to all other Holders of Registrable Securities; and

     

    (b)           as
      soon as practicable, file such registration statement and use its commercially
      reasonable efforts to have such registration statement declared effective and
      obtain all such qualifications and compliances as may be so requested and as
      would permit or facilitate the sale and distribution of all or such portion
      of
      the Institutional Investor’s or such Holder’s or Holders’ Registrable Securities
      as are specified in such request, together with all or such portion of the
      Registrable Securities of any other Holder or Holders joining in such request
      as
      are specified in a written request given within ten (10) days after receipt
      of
      such written notice from the Company; provided, however, that
      the Company shall not be obligated to effect any such registration,
      qualification or compliance pursuant to this
      Section 2.3:  (i) prior to the first anniversary date of the
      Closing Date (as defined in the Stock Purchase Agreement);
      (ii) if

     

    
      
        
        

      

      
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    Form S-3
      is not available for such offering by the Institutional Investor or the Holders;
      (iii) if the Institutional Investor and the Holders, together with the
      holders of any other securities of the Company entitled to inclusion in such
      registration, propose to sell Registrable Securities and such other securities
      (if any) at an anticipated aggregate offering price to the public of less than
      twenty-five million dollars ($25,000,000); or (iv) if the Company shall
      furnish to the Institutional Investor and the Holders a certificate signed
      by
      the Chairman of the Board of Directors of the Company stating that in the good
      faith and reasonable judgment of the Board of Directors of the Company, it
      would
      be seriously detrimental to the Company and its stockholders for such
      Form S-3 registration to be effected at such time (but excluding any
      detriment to the Company solely as a result of its impact on the share price),
      in which event the Company shall have the right to defer the filing of the
      Form S-3 registration statement for a period of not more than ninety (90)
      days after receipt of the request of the Institutional Investor or the Holder
      or
      Holders under this Section 2.3; provided, that such right to delay a
      request shall be exercised by the Company not more than twice in any twelve
      (12)
      month period; or (iv) after the Company has effected four (4) registrations
      on Form S-3 pursuant to this Section 2.3 and such registrations have
      been declared or ordered effective.  Notwithstanding the foregoing,
      any expenses in connection with such registration or attempted registration
      shall be Registration Expenses.

     

    (c)           Subject
      to the foregoing, the Company shall file a Form S-3 registration statement
      covering the Registrable Securities and other securities so requested to be
      registered as soon as reasonably practicable after receipt of the request or
      requests of the Institutional Investor or such Holders.  Registrations
      effected pursuant to this Section 2.3 shall not be counted as a demand for
      registration or registrations effected pursuant to Sections 2.1 or 2.2,
      respectively.

     

    (d)           The
      Company shall not grant to any other Person the right to request the Company
      to
      register any shares of Common Stock in an S-3 registration unless such rights
      are consistent with the provisions hereof, except in the case of a Form S-3
      registration statement filed to register any shares of Common Stock issued
      in
      connection with any acquisition, merger or similar transaction by the
      Company.

     

    2.4           Expenses
      of Registration.  Except as specifically provided herein, all
      Registration Expenses incurred in connection with any registration,
      qualification or compliance hereunder shall be borne by the
      Company.  All Selling Expenses incurred in connection with any
      registrations hereunder, shall be borne by the holders of the securities so
      registered pro rata on the basis of the number of shares so
      registered.  The Company shall not, however, be required to pay for
      expenses of any registration proceeding begun pursuant to Section 2.1 or
      2.3, the request of which has been subsequently withdrawn by the Institutional
      Investor or the Initiating Holders or requesting Holder(s) unless (a) the
      Company has requested the Institutional Investor or the Initiating Holders
      or
      requesting Holder(s) to withdraw such request or the Company and the
      Institutional Investor, Initiating Holders or requesting Holders(s) jointly
      determine that such request should be withdrawn, (b) the withdrawal is
      based upon material adverse information concerning the Company that the Company
      had not publicly revealed at least forty-eight (48) hours prior to the request
      or that the Company had not otherwise notified the Institutional Investor or
      the
      Initiating Holders or requesting Holders of at the time of such request or
      (c) the Institutional Investor or the Holders of a majority of Registrable
      Securities, as the case may be, agree to forfeit their right to one requested
      registration pursuant to Section 2.1 or Section 2.3, as applicable, in
      which event such right shall be forfeited by all Holders.

     

    
      
        
        

      

      
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    If
      the
      Institutional Investor and/or the Holders are required to pay the Registration
      Expenses, such expenses shall be borne by the Institutional Investor or the
      Holders of securities (including Registrable Securities) requesting such
      registration in proportion to the number of shares for which registration was
      requested.  If the Company is required to pay the Registration
      Expenses of a withdrawn offering pursuant to clause (a) above, then the
      Institutional Investor or the Holders, as the case may be, shall not forfeit
      their rights pursuant to Section 2.1 or Section 2.3.

     

    2.5           Obligations
      of the Company.  In the Mandatory Registration and whenever
      required to effect the registration of any Registrable Securities, the Company
      shall, as expeditiously as reasonably possible:

     

    (a)           Subject
      to Section 2.1(b) in the case of the Mandatory Registration, prepare and
      file with the SEC a registration statement, and all amendments and supplements
      thereto and related prospectuses as may be necessary to comply with applicable
      securities laws, with respect to such Registrable Securities and use its best
      efforts to cause such registration statement to become effective (provided
      that
      before filing a registration statement or prospectus or any amendments or
      supplements thereto, the Company shall furnish to the counsel selected by the
      Holders of a majority of the Registrable Securities covered by such registration
      statement copies of all such documents proposed to be filed, and the Company
      shall in good faith consider any comments of such counsel).

     

    (b)           Prepare
      and, within 60 days after the end of the period within which requests for
      registration have been given to the Company, file with the SEC a registration
      statement with respect to such Registrable Securities and use all reasonable
      best efforts to cause such registration statement to become effective (provided
      that, before filing a registration statement or prospectus or any amendments
      or
      supplements thereto, the Company shall furnish to the counsel selected by the
      holders of a majority of Registrable Securities covered by such registration
      statement copies of all such documents proposed to be filed, and the Company
      shall in good faith consider any comments of such counsel), notify in writing
      each Holder of the effectiveness of each registration statement filed hereunder,
      and, upon the request of the Holders of a majority of the Registrable Securities
      registered thereunder, keep such registration statement effective for up to
      one
      hundred and eighty (180) days or, if earlier, until the Holder or Holders have
      completed the distribution related thereto (or, in the case of a Shelf
      Registration, a period ending on such date as is the earlier of (i) the
      date on which all Registrable Securities included in the registration statement
      shall have been sold or shall have otherwise ceased to be Registrable Securities
      and (ii) the date on which all remaining Registrable Securities may be sold
      during any ninety (90) day period without any restriction pursuant to
      Rule 144 under the Securities Act, other than Rule 144(k), after
      taking into account any holders’ status as an affiliate of the Company as
      determined by the counsel to the Company pursuant to a written opinion letter
      addressed to the Company’s transfer agent to such effect).

     

    (c)           Prepare
      and file with the SEC such amendments and supplements to such registration
      statement and the prospectus used in connection with such registration statement
      as may be necessary to comply with the provisions of the Securities Act with
      respect to the disposition of all securities covered by such registration
      statement for the period set forth in paragraph (a) above.

     

    
      
        
        

      

      
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    (d)           Furnish
      to the Investors and Holders such number of copies of a prospectus, including
      a
      preliminary prospectus, in conformity with the requirements of the Securities
      Act, and such other documents as they may reasonably request in order to
      facilitate the disposition of Registrable Securities owned by them.

     

    (e)           Use
      its commercially reasonable efforts to register and qualify the securities
      covered by such registration statement under such other securities or Blue
      Sky
      laws of such jurisdictions as shall be reasonably requested by the Holders;
      provided that the Company shall not be required in connection therewith or
      as a
      condition thereto to qualify to do business or to file a general consent to
      service of process in any such states or jurisdictions.

     

    (f)           In
      the event of any underwritten public offering, enter into and perform its
      obligations under an underwriting agreement, in usual and customary form, with
      the managing underwriter(s) of such offering.  Each Investor and/or
      Holder participating in such underwriting shall also enter into and perform
      its
      obligations under such an agreement.

     

    (g)           Notify
      each Investor who holds, and each Holder of, Registrable Securities covered
      by
      such registration statement at any time when a prospectus relating thereto
      is
      required to be delivered under the Securities Act of the happening of any event
      as a result of which the prospectus included in such registration statement,
      as
      then in effect, includes an untrue statement of a material fact or omits to
      state a material fact required to be stated therein or necessary to make the
      statements therein not misleading in light of the circumstances then existing
      and, at the request of the holders of a majority of the Registrable Securities
      covered by such registration statement, the Company shall promptly prepare
      and
      furnish to each such seller a reasonable number of copies of a supplement or
      amendment to such prospectus so that, as thereafter delivered to the purchasers
      of such Registrable Securities, such prospectus shall not contain an untrue
      statement of a material fact or omit to state any fact necessary to make the
      statements therein not misleading in light of the circumstances under which
      they
      were made.

     

    (h)           Use
      its commercially reasonable efforts to furnish, on the date that such
      Registrable Securities are delivered to the underwriters for sale, if such
      securities are being sold through underwriters, (i) an opinion, dated as of
      such date, of the counsel representing the Company for the purposes of such
      registration, in form and substance as is customarily given to underwriters
      in
      an underwritten public offering, addressed to the underwriters, if any, and
      (ii) a letter dated as of such date, from the independent registered public
      accountants of the Company, in form and substance as is customarily given by
      independent registered public accountants to underwriters in an underwritten
      public offering addressed to the underwriters.

     

    (i)           In
      the event of the issuance of any stop order suspending the effectiveness of
      a
      registration statement, or any order suspending or preventing the use of any
      related prospectus or suspending the qualification of any equity securities
      included in such registration statement for sale in any jurisdiction, the
      Company shall use its reasonable best efforts promptly to obtain the withdrawal
      of such order.

     

    2.6           Suspension
      of Sales.  Upon receipt of written notice from the Company that a
      registration statement or prospectus contains an untrue statement of a material
      fact or omits to state a material fact required to be stated therein or
      necessary to make the statements therein not

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    misleading
      (a “Misstatement”), each Investor who holds, and each Holder
      of, Registrable Securities shall forthwith discontinue disposition of
      Registrable Securities until such Investor and/or Holder has received copies
      of
      the supplemented or amended prospectus that corrects such Misstatement, or
      until
      such Investor and/or Holder is advised in writing by the Company that the use
      of
      the prospectus may be resumed, and, if so directed by the Company, such Investor
      and/or Holder shall deliver to the Company (at the Company’s expense) all
      copies, other than permanent file copies then in such Investor’s or Holder’s
      possession, of the prospectus covering such Registrable Securities current
      at
      the time of receipt of such notice.  The total number of days that any
      such suspension may be in effect in any 180 day period shall not exceed 45
      days.

     

    2.7           Termination
      of Registration Rights.  An Investor’s and a Holder’s registration
      rights shall expire if all Registrable Securities held by such Investor or
      Holder (and its Affiliates, partners, members and former members) may be sold
      without any restriction under Rule 144 under the Securities Act, other than
      Rule 144(k), during any ninety (90) day period after taking into account
      any Holders’ status as an affiliate of the Company as determined by the counsel
      to the Company pursuant to a written opinion letter addressed to the Company’s
      transfer agent to such effect.

     

    2.8           Delay
      of Registration; Furnishing Information.

     

    (a)           No
      Investor or Holder shall have any right to obtain or seek an injunction
      restraining or otherwise delaying any such registration as the result of any
      controversy that might arise with respect to the interpretation or
      implementation of this Section 2.

     

    (b)           It
      shall be a condition precedent to the obligations of the Company to take any
      action pursuant to Section 2.1, 2.2 or 2.3 that the selling Investors
      and/or Holders shall furnish to the Company such information regarding
      themselves, the Registrable Securities held by them and the intended method
      of
      disposition of such securities as shall be required to effect the registration
      of their Registrable Securities.

     

    (c)           The
      Company shall have no obligation with respect to any registration requested
      pursuant to Section 2.1 or Section 2.3 (except that any expenses in
      connection with such registration or attempted registration shall be
      Registration Expenses) if the number of shares or the anticipated aggregate
      offering price of the Registrable Securities to be included in the registration
      does not equal or exceed the number of shares or the anticipated aggregate
      offering price required to originally trigger the Company’s obligation to
      initiate such registration as specified in Section 2.1 or Section 2.3,
      whichever is applicable.

     

    2.9           Indemnification.  In
      the event any Registrable Securities are included in a registration statement
      under this Section 2:

     

    (a)           To
      the extent permitted by law, the Company will indemnify and hold harmless each
      Investor, Holder, any underwriter (as defined in the Securities Act) for such
      Investor or Holder and each person, if any, who controls such Investor or Holder
      or underwriter within the meaning of the Securities Act or the Exchange Act,
      against any losses, claims, damages, or liabilities (joint or several) to which
      they may become subject under the Securities Act, or the Exchange Act or other
      federal or state law, insofar as such losses, claims, damages, or

     

    
      
        
        

      

      
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    liabilities
      (or actions in respect thereof) arise out of or are based upon any of the
      following statements, omissions or violations (collectively, a
“Violation”):  (i) any untrue statement or
      alleged untrue statement of a material fact contained in such registration
      statement, including any preliminary prospectus or final prospectus contained
      therein or any amendments or supplements thereto, (ii) the omission or
      alleged omission to state therein a material fact required to be stated therein,
      or necessary to make the statements therein not misleading, or (iii) any
      violation or alleged violation by the Company of the Securities Act, the
      Exchange Act, any state securities law or any rule or regulation promulgated
      under the Securities Act, the Exchange Act or any state securities law; and
      the
      Company will pay to each such Investor, Holder, underwriter or controlling
      person, as accrued any legal or other expenses reasonably incurred by them
      in
      connection with investigating or defending any such loss, claim, damage,
      liability, or action; provided, however, that the indemnity
      agreement contained in this Section 2.9(a) shall not apply to amounts paid
      in settlement of any such loss, claim, damage, liability, or action if such
      settlement is effected without the consent of the Company (which consent shall
      not be unreasonably withheld), nor shall the Company be liable in any such
      case
      for any such loss, claim, damage, liability, or action to the extent that it
      arises out of or is based upon a Violation which occurs in reliance upon and
      in
      conformity with written information furnished expressly for use in connection
      with such registration statement by any such Investor, Holder, underwriter
      or
      controlling person.

     

    (b)           To
      the extent permitted by law and provided that such Holder is not entitled to
      indemnification pursuant to Section 2.9(a) above with respect to such
      matter, each selling Investor or Holder (severally and not jointly) will
      indemnify and hold harmless the Company, each of its directors, each of its
      officers who has signed the registration statement, each person, if any, who
      controls the Company within the meaning of the Securities Act, any underwriter,
      any other Investor or Holder selling securities in such registration statement
      and any controlling person of any such underwriter or other Investor or Holder,
      against any losses, claims, damages, or liabilities to which any of the
      foregoing persons may become subject under the Securities Act, the Exchange
      Act
      or other federal or state law, insofar as such losses, claims, damages, or
      liabilities (or actions in respect thereof) arise out of or are based upon
      any
      (i) untrue statement or alleged untrue statement of a material fact
      regarding such Holder and provided in writing by such Holder which is contained
      in such registration statement, including any preliminary prospectus or final
      prospectus contained therein or any amendments or supplements thereto or
      (ii) the omission or alleged omission to state therein a material fact
      required to be stated therein, or necessary to make the statements therein
      not
      misleading, in each case to the extent (and only to the extent) that such untrue
      statement or alleged untrue statement or omission or alleged omission was made
      in such registration statement, preliminary or final prospectus, amendment
      or
      supplement thereto, in reliance upon and in conformity with written information
      furnished by such Investor or Holder expressly for use in connection with such
      registration statement; and each such Investor or Holder will pay, as accrued,
      any legal or other expenses reasonably incurred by any Person intended to be
      indemnified pursuant to this Section 2.9(b), in connection with
      investigating or defending any such loss, claim, damage, liability, or action
      as
      a result of such Holder’s untrue statement or omission; provided,
however, that the indemnity agreement contained in this
      Section 2.9(b) shall not apply to amounts paid in settlement of any such
      loss, claim, damage, liability or action if such settlement is effected without
      the consent of the Investor or Holder (which consent shall not be unreasonably
      withheld); provided, that, (x) the indemnification obligations in this
      Section 2.9(b) shall be individual and ratable not joint and

     

    
      
        
        

      

      
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    several
      for each Holder and (y) in no event shall the aggregate of all
      indemnification payments by any Investor and/or Holder under this
      Section 2.9(b) exceed the net proceeds from the offering received by such
      Investor and/or Holder.

     

    (c)           Promptly
      after receipt by an indemnified party under this Section 2.9 of notice of
      the commencement of any action (including any governmental action), such
      indemnified party will, if a claim in respect thereof is to be made against
      any
      indemnifying party under this Section 2.9, deliver to the indemnifying
      party a written notice of the commencement thereof and the indemnifying party
      shall have the right to participate in, and, to the extent the indemnifying
      party so desires, jointly with any other indemnifying party similarly noticed,
      to assume the defense thereof with counsel mutually satisfactory to the parties;
      provided, however, that an indemnified party (together with
      all other indemnified parties which may be represented without conflict by
      one
      counsel) shall have the right to retain one separate counsel, with the
      reasonable fees and expenses to be paid by the indemnifying party, if
      representation of such indemnified party by the counsel retained by the
      indemnifying party would be inappropriate due to actual or potential differing
      interests between such indemnified party and any other party represented by
      such
      counsel in such proceeding.  The failure to deliver written notice to
      the indemnifying party within a reasonable time of the commencement of any
      such
      action shall not relieve such indemnifying party of any liability to the
      indemnified party under this Section 2.8, except to the extent such failure
      to give notice has a material adverse effect on the ability of the indemnifying
      party to defend such action.

     

    (d)           If
      the indemnification provided for in this Section 2.9 is held by a court of
      competent jurisdiction to be unavailable to an indemnified party with respect
      to
      any loss, liability, claim, damage, or expense referred to therein, then the
      indemnifying party, in lieu of indemnifying such indemnified party hereunder,
      shall contribute to the amount paid or payable by such indemnified party as
      a
      result of such loss, liability, claim, damage, or expense in such proportion
      as
      is appropriate to reflect the relative fault of the indemnifying party on the
      one hand and of the indemnified party on the other in connection with the
      statements or omissions that resulted in such loss, liability, claim, damage,
      or
      expense as well as any other relevant equitable considerations.  The
      relative fault of the indemnifying party and of the indemnified party shall
      be
      determined by reference to, among other things, whether the untrue or alleged
      untrue statement of a material fact or the omission to state a material fact
      relates to information supplied by the indemnifying party or by the indemnified
      party and the parties’ relative intent, knowledge, access to information, and
      opportunity to correct or prevent such statement or
      omission.  Notwithstanding the foregoing, the amount any Investor or
      Holder will be obligated to contribute pursuant to this Section 2.9(d) will
      be limited to an amount equal to the per share public offering price (less
      any
      underwriting discount and commissions) multiplied by the number of shares of
      Registrable Securities sold by such Investor or Holder pursuant to the
      registration statement which gives rise to such obligation to contribute (less
      the aggregate amount of any damages which such Investor or Holder has otherwise
      been required to pay in respect of such loss, liability, claim, damage, or
      expense or any substantially similar loss, liability, claim, damage, or expense
      arising from the sale of such Registrable Securities).  No person
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of the Securities Act) will be entitled to contribution hereunder from any
      person who was not guilty of such fraudulent misrepresentation.

     

    
      
        
        

      

      
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    (e)           Notwithstanding
      the foregoing, to the extent that the provisions on indemnification and
      contribution contained in the underwriting agreement entered into in connection
      with the underwritten public offering are in conflict with the foregoing
      provisions, the provisions in the underwriting agreement shall control; provided
      that the indemnification provisions of the Holders in any underwriting agreement
      may not conflict with the provisions of this Section 2.9 without the
      consent of the Institutional Investor.

     

    (f)           The
      obligations of the Company and Holders under this Section 2.9 shall survive
      the completion of any offering of Registrable Securities in a registration
      statement under this Section 2, and otherwise.

     

    2.10           Assignment
      of Registration Rights.  The rights to cause the Company to
      register Registrable Securities pursuant to this Agreement may be assigned
      by an
      Investor or Holder to a transferee or assignee of Registrable Securities to
      which (a) there is transferred to such transferee no less than twenty
      thousand (20,000) shares of Registrable Securities, appropriately adjusted
      to
      reflect any stock splits, stock dividends, subdivisions, reverse splits and
      similar events, (b) there is transferred to such transferee at least ten
      percent (10%) of the shares of Registrable Securities held by the Investor
      or
      Holder, (c) such transferee is an Affiliate, subsidiary or parent company,
      family member or family trust for the benefit of a party hereto, or
      (d) such transferee or transferees are partners of an Investor or Holder,
      who agree to act through a single representative; provided,
however, (i) the transferor shall furnish to the Company written
      notice of the name and address of such transferee or assignee and the securities
      with respect to which such registration rights are being assigned and
      (ii) such transferee shall agree to be subject to all restrictions set
      forth in this Agreement.

     

    2.11           “Market
      Stand-Off’ Agreement; Agreement to Furnish Information.  Each
      Investor and Holder hereby agrees that such Investor and/or Holder shall not
      sell, transfer, make any short sale of, grant any option for the purchase of,
      or
      enter into any hedging or similar transaction with the same economic effect
      as a
      sale, any Common Stock (or other securities) of the Company held by such
      Investor or Holder (other than those included in the registration) for a period
      specified by the representative of the underwriters of Common Stock (or other
      securities) of the Company not to exceed ten (10) days prior and ninety (90)
      days following the effective date of a registration statement of the Company
      filed under the Securities Act; provided that all executive officers and
      directors of the Company enter into similar agreements and only if such Persons
      remain subject thereto (and are not released from such agreement) for such
      90
      day period.  Each Investor and Holder agrees to execute and deliver
      such other agreements as may be reasonably requested by the Company or the
      underwriter which are consistent with the foregoing or which are necessary
      to
      give further effect thereto.

     

    In
      addition, if requested by the Company or the representative of the underwriters
      of Common Stock (or other securities) of the Company, each Investor and Holder
      shall provide, within ten (10) days of such request, such information as may
      be
      required by the Company or such representative in connection with the completion
      of any public offering of the Company’s securities pursuant to a registration
      statement filed under the Securities Act.

     

    The
      obligations described in this Section 2.11 shall not apply to a
      registration relating solely to employee benefit plans on Form S-1 or
      Form S-8 or similar forms that may be

     

    
      
        
        

      

      
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    promulgated
      in the future, or a registration relating solely to a Commission Rule 145
      transaction on Form S-4 or similar forms that may be promulgated in the
      future.  The Company may impose stop-transfer instructions with
      respect to the shares of Common Stock (or other securities) subject to the
      foregoing restriction until the end of said 90 day period.  Each
      Investor and Holder agrees that any transferee of any shares of Registrable
      Securities shall be bound by this Section 2.11.

     

    2.12           Rule 144
      Reporting.  With a view to making available to the Investors and
      Holders the benefits of certain rules and regulations of the SEC which may
      permit the sale of the Registrable Securities to the public without
      registration, the Company agrees to use its best efforts to:

     

    (a)           make
      and keep public information available, as those terms are understood and defined
      in SEC Rule 144 or any similar or analogous rule promulgated under the
      Securities Act, at all times after the effective date of this
      Agreement;

     

    (b)           file
      with the SEC, in a timely manner, all reports and other documents required
      of
      the Company under the Exchange Act; and

     

    (c)           so
      long as an Investor or Holder owns any Registrable Securities, furnish to such
      Investor or Holder forthwith upon request: a written statement by the Company
      as
      to its compliance with the reporting requirements of Rule 144 under the
      Securities Act, and of the Exchange Act; a copy of the most recent annual or
      quarterly report of the Company; and such other reports and documents as an
      Investor or  Holder may reasonably request in availing itself of any
      rule or regulation of the SEC allowing it to sell any such securities without
      registration.

     

    SECTION 3          PREEMPTIVE
      RIGHTS OF INSTITUTIONAL INVESTOR

     

    3.1           Sale
      of New Stock.  Until the date on which the Institutional Investor
      and its Affiliates collectively own less than five percent (5.0%) of the
      outstanding Common Stock of the Company (assuming conversion of the
      Series A Stock), if the Company at any time or from time to time makes a
      Qualified Equity Offering, the Institutional Investor and its Affiliates shall
      be afforded the opportunity to acquire from the Company for the same price
      and
      on the same terms as such securities are proposed to be offered to others,
      in
      the aggregate up to the amount of New Stock required to enable it to maintain
      its Institutional Investor Percentage Interest.

     

    3.2           Notice.

     

    (a)           In
      the event the Company intends to make a Qualified Equity Offering that is an
      underwritten public offering or a private offering made to Qualified
      Institutional Buyers for resale pursuant to Rule 144A under the Securities
      Act, no later than five (5) business days after the initial filing of a
      registration statement with the SEC with respect to such underwritten public
      offering or the commencement of marketing with respect to such Rule 144A
      offering, it shall give Institutional Investor written notice of its intention
      (including, in the case of a registered public offering and to the extent
      possible, a copy of the prospectus included in the registration statement filed
      in respect of such offering) describing, to the extent then known, the
      anticipated amount of securities, range of prices, timing and other material
      terms of such offering.  Institutional Investor shall have ten (10)
      calendar days from the date of receipt of any such notice

     

    
      
        
        

      

      
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    to
      notify
      the Company in writing that it and/or its Affiliates intend to exercise such
      preemptive purchase rights and as to the amount of New Stock Institutional
      Investor and its Affiliates desire to purchase, up to the maximum amount
      calculated pursuant to Section 3.1 (including any over-allotment options if
      applicable) (the “Designated Stock”).  Such notice
      shall constitute a non-binding indication of interest of Institutional Investor
      and its Affiliates to purchase the Designated Stock so specified at the range
      of
      prices and other terms set forth in the Company’s notice to it.  The
      failure to respond during such ten (10) calendar day period shall constitute
      a
      waiver of preemptive rights in respect of such offering.

     

    (b)           If
      the Company proposes to make a Qualified Equity Offering that is not an
      underwritten public offering or Rule 144A offering (a “Private
      Placement”), the Company shall give Institutional Investor written
      notice of its intention, describing, to the extent then known, the anticipated
      amount of securities, price and other material terms upon which the Company
      proposes to offer the same.  Institutional Investor shall have ten
      (10) calendar days from the date of receipt of the notice required by the
      immediately preceding sentence to notify the Company in writing that it and/or
      its Affiliates intend to exercise such preemptive purchase rights and as to
      the
      amount of Designated Stock Institutional Investor and its Affiliates desire
      to
      purchase, up to the maximum amount calculated pursuant to
      Section 3.1.  Such notice shall constitute the binding agreement
      of Institutional Investor and/or its Affiliates to purchase the amount of
      Designated Stock so specified (or a proportionately lesser amount if the amount
      of New Stock to be offered in such Private Placement is subsequently reduced)
      upon the price and other terms set forth in the Company’s notice to
      it.  The failure of Institutional Investor to respond during the ten
      (10) calendar day period referred to in the second preceding sentence shall
      constitute a waiver of the preemptive rights in respect of such
      offering.

     

    3.3           Purchase
      Mechanism.

     

    (a)           If
      Institutional Investor exercises its preemptive rights provided in
      Section 3.2(b), the closing of the purchase of the New Stock with respect
      to which such right has been exercised shall be conditioned on the consummation
      of the Private Placement giving rise to such preemptive purchase rights and
      shall take place simultaneously with the closing of the Private Placement or
      on
      such other date as the Company and the Institutional Investor shall agree in
      writing; provided, that the actual amount of Designated Stock to be sold to
      the
      Institutional Investor and its Affiliates pursuant to its exercise of preemptive
      rights hereunder shall be reduced proportionately if the aggregate amount of
      New
      Stock sold in the Private Placement is reduced and, at the option of the
      Institutional Investor (to be exercised by delivery of written notice to the
      Company within five (5) business days of receipt of notice of such increase),
      shall be increased proportionately if such aggregate amount of New Stock sold
      in
      the Private Placement is increased.  In connection with its purchase
      of Designated Stock, Institutional Investor shall execute an instrument in
      form
      and substance reasonably satisfactory to the Company containing representations,
      warranties and agreements of Institutional Investor that are customary for
      private placement transactions.

     

    (b)           If
      the Institutional Investor exercises its preemptive purchase rights provided
      in
      Section 3.2(a), the Company shall offer the Institutional Investor and its
      Affiliates, if such underwritten public offering or Rule 144A offering is
      consummated, the Designated Stock (as adjusted to reflect the actual size of
      such offering when priced) at the same price as the New

     

    
      
        
        

      

      
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    Stock
      is
      offered to the underwriters or initial purchasers and shall provide written
      notice of such price to Institutional Investor as soon as practicable prior
      to
      such consummation.  Contemporaneously with the execution of any
      underwriting agreement or purchase agreement entered into between the Company
      and the underwriters or initial purchasers of such underwritten public offering
      or Rule 144A offering, Institutional Investor shall enter into an
      instrument in form and substance reasonably satisfactory to the Company
      acknowledging Institutional Investor’s and/or its Affiliate’s binding
      obligations to purchase the Designated Stock to be acquired by it and/or its
      Affiliates and containing representations, warranties and agreements of
      Institutional Investor that are customary in private placement transactions,
      and
      the failure to enter into such an instrument at or prior to such time shall
      constitute a waiver of preemptive rights in respect of such
      offering.  Any offers and sales pursuant to this Section 3 in the
      context of a registered public offering shall be also conditioned on reasonably
      acceptable representations and warranties of the Institutional Investor
      regarding its status as the type of offeree to whom a private sale can be made
      concurrently with a registered offering in compliance with applicable securities
      laws.

     

    (c)           Upon
      the expiration of the offering periods described in Section 3.2 above, the
      Company shall be entitled to sell such stock or securities which the
      Institutional Investor and its Affiliates have not elected to purchase during
      the 90 days following such expiration at a price not less and on other
      terms and conditions not more favorable to the purchasers thereof than that
      offered to the Institutional Investor and its Affiliates.  Any stock
      or securities offered or sold by the Company after such 90-day period must
      be
      reoffered to the Institutional Investor and its Affiliates pursuant to the
      terms
      of this Section 3.2.

     

    (d)           Notwithstanding
      any provision in this Agreement to the contrary, in the event that the
      Institutional Purchaser and its Affiliates are entitled to acquire Common Stock
      pursuant to this Section 3, then the Institutional Purchaser and its
      Affiliates may at their option acquire securities in the form of Series A Stock
      or another series of preferred stock of the Corporation with terms, conditions
      and provisions that shall be established upon the issuance of such preferred
      stock that are similar to and consistent with the terms, conditions and
      provisions upon which the Series A Stock was established.

     

    3.4           No
      Negotiation Right.  The Institutional Investor shall not have any
      rights to participate in the negotiation of the proposed terms of any Private
      Placement, underwritten public offering or Rule 144A offering.

     

    3.5           Cooperation.  The
      Company and the Institutional Investor shall cooperate in good faith to
      facilitate the exercise of the Institutional Investor’s preemptive rights
      hereunder, including securing any required approvals or consents, in a manner
      that does not jeopardize the timing, marketing, pricing or execution of any
      offering of the Company’s securities.

     

    3.6           Limitation
      of Rights.  Notwithstanding the above, nothing set forth in this
      Section 3 shall confer upon the Institutional Investor the right to
      purchase any shares of any equity securities of the Company other than Common
      Stock, Series A Stock, preferred stock or other securities convertible into
      or exchangeable for shares of Common Stock or which have voting rights or
      participation features with Common Stock of the Company, and in no event shall
      the issuance of shares of Common Stock by the Company as consideration pursuant
      to any

     

    
      
        
        

      

      
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    acquisition
      (whether structured as a merger or otherwise) (but not an offering to raise
      capital to fund an acquisition) or pursuant to the terms and provisions of
      any
      current or future equity compensation or employee benefit plan of the Company
      or
      otherwise approved by the Board other than through a Qualified Equity Offering
      be deemed included in any right granted to Institutional Investor under this
      Section 3.

     

    SECTION 4          MISCELLANEOUS

     

    4.1           Successors
      and Assigns.  Except as otherwise provided herein, the terms and
      conditions of this Agreement shall inure to the benefit of and be binding upon
      the respective successors and assigns of the parties (including transferees
      of
      any shares of Registrable Securities).  Nothing in this Agreement,
      express or implied, is intended to confer upon any party other than the parties
      hereto or their respective successors and assigns any rights, remedies,
      obligations, or liabilities under or by reason of this Agreement, except as
      expressly provided in this Agreement.

     

    4.2           Governing
      Law.  This Agreement shall be governed by and construed under the
      laws of the State of Illinois as applied to agreements among Illinois residents
      entered into and to be performed entirely within the State of
      Illinois.

     

    4.3           Counterparts.  This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    4.4           Titles
      and Subtitles.  The titles and subtitles used in this Agreement
      are used for convenience only and are not to be considered in construing or
      interpreting this Agreement.

     

    4.5           Notices.  Unless
      otherwise provided, any notice required or permitted under this Agreement shall
      be given in writing and shall be deemed effectively given upon personal delivery
      to the party to be notified or upon deposit with the United States Post Office,
      by registered or certified mail, postage prepaid and addressed to the party
      to
      be notified at the address indicated for such party on the signature page
      hereof, or at such other address as such party may designate by ten (10) days’
advance written notice to the other parties.

     

    4.6           Expenses.  If
      any action at law or in equity is necessary to enforce or interpret the terms
      of
      this Agreement, the prevailing party shall be entitled to reasonable attorneys’
fees, costs and necessary disbursements in addition to any other relief to
      which
      such party may be entitled.

     

    4.7           Amendments
      and Waivers.  Any term of this Agreement may be amended and the
      observance of any term of this Agreement may be waived (either generally or
      in a
      particular instance and either retroactively or prospectively), only with the
      written consent of the Company, the Institutional Investor so long as the
      Institutional Investor holds Registrable Securities, and the holders of a
      majority of the Registrable Securities then outstanding.  Any
      amendment or waiver effected in accordance with this paragraph shall be binding
      upon each Holder of any Registrable Securities then outstanding, each future
      Holder of all such Registrable Securities, and the Company.

     

    
      
        
        

      

      
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    4.8           Severability.  If
      one or more provisions of this Agreement are held to be unenforceable under
      applicable law, such provision shall be excluded from this Agreement and the
      balance of the Agreement shall be interpreted as if such provision were so
      excluded and shall be enforceable in accordance with its terms.

     

    4.9           Aggregation
      of Stock.  All shares of Registrable Securities held or acquired
      by any Investors which are Affiliates shall be aggregated together for the
      purpose of determining the availability of any rights under this
      Agreement.

     

    4.10           Entire
      Agreement.  This Agreement constitutes the full and entire
      understanding and agreement between the parties with regard to the subject
      matter hereof.

     

    

     

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    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of
      the date set forth in the first paragraph hereof.

     

    
       

      
        
          
            	 	
                    
                       
                        PRIVATEBANCORP, INC.

                       

                    

                     

                  

          

          
            
              	 	 By:	 

            

          

          
            
              	
                    	Name:	 Larry D. Richman
	 	Title:	
                       President
                        and Chief Executive
                        Officer

                       

                    
	 	 Address: 	
                       70
                        West Madison Street

                       Suite 900

                      
                         Chicago,
                          Illinois  60602

                        
                           Attention:  General
                            Counsel

                        

                      

                    

              
                 

              

            

          

        

      

    

    
      	 	
              
                
                   
                    [Individually List each Investor]

                

                 

              

               

            

    

    
      	 	 By:	 

    

    
      	
            	Name:	 
	 	Title:	
               

               

            
	 	 Address: 	
               

            

    
      
        
        

      

      
        21

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