Document:

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                                                                   EXHIBIT 10.16

                           TAYLOR CAPITAL GROUP, INC.

                           DEFERRED COMPENSATION PLAN
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                           TAYLOR CAPITAL GROUP, INC.
                           DEFERRED COMPENSATION PLAN

                                TABLE OF CONTENTS

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Section                                                                     Page
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ARTICLE 1  Definitions.....................................................   1
    1.1    Account.........................................................   1
    1.2    Administrator...................................................   1
    1.3    Base Salary and Commission......................................   1
    1.4    Beneficiary.....................................................   1
    1.5    Board...........................................................   1
    1.6    Code............................................................   2
    1.7    Compensation....................................................   2
    1.8    Compensation Committee..........................................   2
    1.9    Deferrals.......................................................   2
    1.10   Deferral Election...............................................   2
    1.11   Disability......................................................   2
    1.12   Discretionary Contribution......................................   2
    1.13   Effective Date..................................................   2
    1.14   Eligible Employee...............................................   2
    1.15   Employee........................................................   2
    1.16   Employer........................................................   3
    1.17   Employer Executive Committee....................................   3
    1.18   Enrollment Period...............................................   3
    1.19   Executive Discretionary Contribution............................   3
    1.20   Incentive Pay...................................................   3
    1.21   Investment Fund or Funds........................................   3
    1.22   Matching Contribution...........................................   4
    1.23   Participant.....................................................   4
    1.24   Plan............................................................   4
    1.25   Plan Year.......................................................   4
    1.26   Retirement......................................................   4
    1.27   Trust...........................................................   4
    1.28   Trustee.........................................................   4
    1.29   Years of Service................................................   4

ARTICLE 2  Participation...................................................   4
    2.1    Designation as Eligible Employee................................   4
    2.2    Commencement of Participation...................................   5
    2.3    Loss of Eligible Employee Status ...............................   5

ARTICLE 3  Contributions...................................................   6
    3.1    Deferrals.......................................................   6
    3.2    Matching Contribution...........................................   7
    3.3    Discretionary Contribution......................................   7
    3.4    Executive Discretionary Contribution............................   8
    3.5    Time of Contributions...........................................   8
    3.6    Form of Contributions...........................................   9

ARTICLE 4  Vesting.........................................................   9
    4.1    Vesting of Deferrals............................................   9
    4.2    Vesting of Matching.............................................   9
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Section                                                                     Page
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    4.3    Vesting of Discretionary Contributions..........................   9
    4.4    Vesting of Executive Discretionary Contributions................   9
    4.5    Vesting in Event of Change of Control...........................  10
    4.6    Change of Control Trust Notification............................  11
    4.7    Amounts Not Vested..............................................  11

ARTICLE 5  Accounts........................................................  12
    5.1    Accounts........................................................  12
    5.2    Investments, Gains and Losses...................................  13
    5.3    Forfeitures.....................................................  14

ARTICLE 6  Distributions...................................................  14
    6.1    Distribution Election...........................................  14
    6.2    Payment Options.................................................  14
    6.3    Commencement of Payment upon Death, Disability or Termination...  16
    6.4    Minimum Distribution............................................  17
    6.5    Financial Hardship Distribution.................................  17
    6.6    Early Distribution and Penalty..................................  17

ARTICLE 7  Beneficiaries...................................................  18
    7.1    Beneficiaries...................................................  18
    7.2    Lost Beneficiary................................................  18

ARTICLE 8  Funding.........................................................  19
    8.1    Prohibition Against Funding.....................................  19
    8.2    Deposits in Trust...............................................  19
    8.3    Indemnification of Trustee......................................  20
    8.4    Withholding of Employee Contributions...........................  20

ARTICLE 9  Claims Administration...........................................  20
    9.1    General.........................................................  20
    9.2    Claim Review....................................................  21
    9.3    Right of Appeal.................................................  21
    9.4    Review of Appeal................................................  21
    9.5    Designation.....................................................  22
    9.6    Arbitration.....................................................  22

ARTICLE 10 General Provisions..............................................  22
    10.1   Administrator...................................................  22
    10.2   No Assignment...................................................  23
    10.3   No Employment Rights............................................  23
    10.4   Incompetence....................................................  23
    10.5   Identity........................................................  24
    10.6   Other Benefits..................................................  24
    10.7   No Liability....................................................  24
    10.8   Expenses........................................................  25
    10.9   Insolvency......................................................  25
    10.10  Amendment and Termination.......................................  25
    10.11  Employer Determinations.........................................  26
    10.12  Construction....................................................  26
    10.13  Governing Law...................................................  26
    10.14  Severability....................................................  26
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    10.15  Headings........................................................  26
    10.16  Terms...........................................................  26
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                           TAYLOR CAPITAL GROUP, INC.

                           DEFERRED COMPENSATION PLAN

         Taylor Capital Group, Inc., a Delaware corporation (the "Employer"), in
an effort to amend and restate the Employer's previous deferred compensation
plan, hereby adopts Taylor Capital Group, Inc. Deferred Compensation Plan (the
"Plan") for the benefit of a select group of management or highly compensated
employees. This Plan is an unfunded arrangement and is intended to be exempt
from the participation, vesting, funding, and fiduciary requirements set forth
in Title I of the Employee Retirement Income Security Act of 1974, as amended.
This Plan is effective April 1, 2001.

                                    ARTICLE 1

                                   DEFINITIONS

1.1      ACCOUNT. The bookkeeping account established for each Participant as
         provided in Section 5.1 hereof.

1.2      ADMINISTRATOR. Cole Taylor Bank Compensation and Human Resources Policy
         Committee.

1.3      BASE SALARY AND COMMISSION. An Eligible Employee's base salary rate or
         rates, or commission in effect at any time during a Plan Year,
         including any pretax elective deferrals from said Salary to any
         Employer sponsored plan that includes amounts deferred under a Deferral
         Election or a qualified cash or deferred arrangement under Code Section
         401(k) or cafeteria plan under Code Section 125.

1.4      BENEFICIARY. The person, persons, trust or other entity a Participant
         designates by written revocable designation filed with the
         Administrator to receive payments in event of his or her death.

1.5      BOARD. The Board of Directors of Taylor Capital Group, Inc.

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1.6      CODE. The Internal Revenue Code of 1986, as amended.

1.7      COMPENSATION. The Participant's earned income, including Base Salary,
         Commission, long-term Incentive Pay (LTIP) and annual Incentive Pay.

1.8      COMPENSATION COMMITTEE. Taylor Capital Group, Inc. Compensation
         Committee, a subcommittee of the Board of Directors.

1.9      DEFERRALS. The portion of Compensation that a Participant elects to
         defer in accordance with Section 3.1 hereof.

1.10     DEFERRAL ELECTION. The separate written agreement, submitted to the
         Administrator, by which an Eligible Employee agrees to participate in
         the Plan and make Deferrals thereto. The Deferral Election will specify
         the amount of Compensation that a Participant chooses to defer.

1.11     DISABILITY. Any medically determinable physical or mental disorder that
         renders a Participant incapable of continuing in the employment of the
         Employer in his or her regular duties of employment, as determined by
         the Administrator in its sole discretion.

1.12     DISCRETIONARY CONTRIBUTION. An Employer Contribution as described in
         Section 3.3 hereof.

1.13     EFFECTIVE DATE. April 1, 2001.

1.14     ELIGIBLE EMPLOYEE. Each Employee as defined in Section 2.1.

1.15     EMPLOYEE. Any person employed by the Employer.

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1.16     EMPLOYER. Taylor Capital Group, Inc. and all plan participating
         subsidiaries.

1.17     EMPLOYER EXECUTIVE COMMITTEE. Those Employees that comprise the
         Employer's Executive Committee, which may be amended from time to time
         by the Employer.

1.18     ENROLLMENT PERIOD

         A.       For individuals who are Eligible Employees prior to the
                  commencement of a given Plan Year, Enrollment Period means the
                  period set by the Administrator, which ends prior to the first
                  day of a Plan Year.

         B.       With respect to an Eligible Employee designated as such by the
                  Company effective as of any day after the first day of a Plan
                  Year, Enrollment Period means the period beginning with the
                  date of his/her designation as an Eligible Employee, and
                  ending prior to the first day such Eligible Employee's
                  participation in the Plan commences.

1.19     EXECUTIVE DISCRETIONARY CONTRIBUTION. An Employer Contribution as
         described in Section 3.4 hereof

1.20     INCENTIVE PAY. Compensation which is designated as such by the Employer
         and which relates to services performed during an incentive period by
         an Eligible Employee in addition to his or her Salary, including any
         pretax elective deferrals from said Incentive Pay to any Employer
         sponsored plan that includes amounts deferred under a Deferral Election
         or a qualified cash or deferred arrangement under Code Section 401(k)
         or cafeteria plan under Code Section 125.

1.21     INVESTMENT FUND OR FUNDS. Each investment(s), which serves as a means
         to measure value, increases or decreases with respect to a
         Participant's Accounts.

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1.22     MATCHING CONTRIBUTION. An Employer contribution as described in Section
         3.2 hereof.

1.23     PARTICIPANT. An Eligible Employee who is a Participant as provided in
         Article 2.

1.24     PLAN. Taylor Capital Group, Inc. Deferred Compensation Plan.

1.25     PLAN YEAR. April 1, 2001 through December 31, 2001 for the first Plan
         Year; January 1 through December 31 for each subsequent Plan Year.

1.26     RETIREMENT. Retirement means the termination of the Participant's
         employment or contract with the Employer for any reason other than
         death or Disability (i) at age 65, or (ii) if the Participant has at
         least ten (10) Years of Service with the Employer at any time after
         attaining age 62.

1.27     TRUST. The agreement between the Employer and the Trustee under which
         the assets of the Plan are held, administered and managed, which shall
         conform to the terms of Rev. Proc. 92 - 64.

1.28     TRUSTEE. Allfirst Trust Company, or such other successor that shall
         become trustee pursuant to the terms of the Plan.

1.29     YEARS OF SERVICE. A Participant's "Years of Service" shall be measured
         by each Plan year in which a Participant achieves 1000 hours worked.

                                    ARTICLE 2

                                  PARTICIPATION

2.1      DESIGNATION AS ELIGIBLE EMPLOYEE. The Administrator shall from time to
         time specify a select group of management or highly compensated
         employees as Eligible Employees. Such specification shall be in
         writing, with a copy delivered to the

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         Employer and the person designated as eligible, and shall set the date
         as of when the person becomes eligible.

         For the April 1, 2001 - December 31, 2001 Plan Year, and for subsequent
         Plan Years until the Administrator otherwise directs, an Eligible
         Employee shall mean each Employee:

         (a)      who is designated as such by the Administrator; and,

         (b)      has a Salary Grade Level of 34 and above.

         An individual's designation as an Eligible Employee may be revoked at
         any time upon written notice of the Administrator to such individual.

2.2      COMMENCEMENT OF PARTICIPATION. Each Eligible Employee shall become a
         Participant at the earlier of the first day of the Plan Year or the
         date on which his or her Deferral Election first becomes effective.

2.3      LOSS OF ELIGIBLE EMPLOYEE STATUS.

         (a)      A Participant who is no longer an Eligible Employee shall not
                  be permitted to submit a Deferral Election and all Deferrals
                  for such Participant shall cease as of the end of the Plan
                  Year in which such Participant is determined to no longer be
                  an Eligible Employee.

         (b)      Amounts credited to the Account of a Participant described in
                  subsection (a) shall continue to be held, pursuant to the
                  terms of the Plan and shall be distributed as provided in
                  Article 6.

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         (c)      A Participant who is no longer an Eligible Employee shall
                  continue to receive quarterly statements, and shall retain the
                  right to make changes in investment selection according to
                  Section 5.2.

                                    ARTICLE 3

                                  CONTRIBUTIONS

3.1      DEFERRALS.

         (a)      On an annual basis, each Participant may authorize the
                  Employer to reduce his/her future Compensation by a percentage
                  not to exceed an amount allowed for the Plan Year as
                  established by the Administrator, and to have a corresponding
                  amount credited to his/her Accounts, in accordance with
                  Article 5, by filing a Deferral Agreement with the
                  Administrator during his/her initial Enrollment Period or any
                  subsequent Enrollment Period preceding the Plan Year during
                  which such Compensation will be earned.

         (b)      Each Eligible Employee shall deliver an annual Deferral
                  Election to the Employer before any Deferrals can become
                  effective. Such Deferral Election shall be void with respect
                  to any Deferral unless submitted before the beginning of the
                  Plan Year during which the amount to be deferred will be
                  earned; provided, however, that in the year in which the Plan
                  is first adopted or an Employee is first eligible to
                  participate, such Deferral Election shall be filed within
                  thirty (30) days of the date on which the Plan is adopted or
                  the date on which an Employee is first eligible to
                  participate, respectively, with respect to Compensation earned
                  during the remainder of the calendar year.

         (c)      The Deferral Election shall, subject to the limitation set
                  forth in Section 3.1(a) hereof, designate the amount of
                  Compensation deferred by each Participant, the beneficiary or
                  beneficiaries of the Participant and such other items as the
                  Administrator may prescribe. Such Deferral Elections shall
                  remain effective for the Plan Year.

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         (d)      The minimum amount of Compensation that may be deferred each
                  Plan Year is three percent (3%) of base salary or commission,
                  20% of LTIP and/or 20% of annual incentive pay. Deferral
                  amounts must be made in whole percentages.

         (e)      The maximum amount of Compensation that may be deferred each
                  Plan Year is seventy-five percent (75%) of the Participant's
                  Salary and/or commission pay and ninety-five percent (95%) of
                  the Participant's annual Incentive Pay and/or LTIP. Deferral
                  amounts must be made in whole percentages.

3.2      MATCHING CONTRIBUTION. At its sole and absolute discretion, the
         Administrator may elect to make a Matching Contribution to the Accounts
         of some or all of the Participants. The amount of the Matching
         Contribution, if any, shall be determined by the Administrator annually
         and communicated to all Eligible Employees. Nothing in this Plan or any
         other agreement or document shall represent or be construed to
         represent an obligation or promise of the Administrator to make
         Matching Contributions on behalf of a Participant at any time. Such
         Matching Contribution shall be allocated to the Participant's Accounts
         at such Participant's election made in accordance with Section 5.1.

3.3      DISCRETIONARY CONTRIBUTION. At its sole and absolute discretion, the
         Administrator may elect to make a Discretionary Contribution to the
         Account of some or all of the Participants. The Administrator expressly
         reserves the right to make Discretionary Contributions to such Plan
         Participants in such amount or such proportions as it deems warranted
         or appropriate; provided, however, the Administrator shall not
         discriminate against any Plan Participant in making Contributions under
         this provision on the basis of such Participant's race, nationality,
         religion, gender, marital status or disability. Discretionary
         Contributions shall be allocated to the Participant's Accounts pursuant
         to Participant's election made in accordance with Section 5.1. Nothing
         in

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         this Plan or any other agreement or document shall represent or be
         construed to represent an obligation or promise of the Administrator to
         make Discretionary Contributions on behalf of a Participant at any
         time.

3.4      EXECUTIVE DISCRETIONARY CONTRIBUTION. At its sole and absolute
         discretion, the Administrator may elect to make an Executive
         Discretionary Contribution to the Account of some or all of those Plan
         Participants that are members of the Employer's Executive Committee.
         The Administrator expressly reserves the right to make Executive
         Discretionary Contributions to such Plan Participants in such amount or
         such proportions as it deems warranted or appropriate; provided,
         however, the Administrator shall not discriminate against any Plan
         Participant in making Contributions under this provision on the basis
         of such Participant's race, nationality, religion, gender, marital
         status or disability. Executive Discretionary Contributions shall be
         allocated to the applicable Participant's Accounts at such
         Participant's election made in accordance with Section 5.1. Nothing in
         this Plan or any other agreement or document shall represent or be
         construed to represent an obligation or promise of the Administrator to
         make Executive Discretionary Contributions on behalf of a Participant
         at any time.

3.5      TIME OF CONTRIBUTIONS.

         (a)      Deferrals shall be transferred to the Trust as soon as
                  administratively feasible following the end of each payroll
                  period. The Employer shall also transmit at that time any
                  necessary instructions regarding the allocation of such
                  amounts among the Accounts of Participants.

         (b)      Matching, Discretionary and Executive Discretionary
                  Contributions shall be transferred to the Trust annually
                  following the end of the plan year or at anytime other time
                  the Employer deems appropriate. The Employer shall also
                  transmit at that time any necessary instructions regarding the
                  allocation of such

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         amounts among the Accounts of Participants.

3.6      FORM OF CONTRIBUTIONS. All Deferrals, Matching Contributions,
         Discretionary Contributions and Executive Discretionary Contributions
         to the Trust shall be made in the form of cash or cash equivalents of
         US currency.

                                    ARTICLE 4

                                     VESTING

4.1      VESTING OF DEFERRALS. A Participant shall have a vested right to the
         portion of his or her Account attributable to Deferrals and any
         earnings on the investment of such Deferrals.

4.2      VESTING OF MATCHING CONTRIBUTIONS. Upon completion of one (1) Year of
         Service, a Participant shall have a 20% vested right to the portion of
         his or her account attributable to Matching Contribution(s) and any
         earning thereon; upon completion of two (2) Years of Service, a 40%
         vested right; three (3) Years of Service, a 60% vested right; four (4)
         Years of Service an 80% vested right; five (5) Years of Service, a 100%
         vested right. Participant shall have a 100% vested right to the portion
         of his or her account attributable to Matching Contribution(s) and any
         earnings thereon, upon Participant's death, disability or retirement at
         age sixty-five (65).

4.3      VESTING OF DISCRETIONARY CONTRIBUTIONS. Discretionary Contributions
         shall vest as determined by the Administrator.

4.4      VESTING OF EXECUTIVE DISCRETIONARY CONTRIBUTIONS. Upon completion of
         six (6) Years of Service, an Executive Committee Participant shall have
         a 20% vested right to the portion of his or her account attributed to
         Executive Discretionary Contribution(s) and any earning thereon; upon
         completion of seven (7) Years of Service, a 40% vested right; eight (8)
         Years of Service, a 60 % vested right; nine (9) Years of Service, an
         80% vested right; ten (10) Years of Service, a 100% vested right.
         Participant shall

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         have a 100% vested right to the portion of his or her account
         attributable to Executive Discretionary Contribution(s) and any
         earnings thereon, upon Participant's death, disability or retirement at
         age sixty-five (65). For purposes of determining the vesting percentage
         of any Executive Discretionary Contributions made to a Participant, a
         Participant's Years of Service prior to the effective date of this Plan
         shall be utilized in that calculation.

4.5      VESTING IN EVENT OF CHANGE OF CONTROL. Notwithstanding any provision
         contained herein to the contrary, in the event that, prior to the time
         that the entire amount of the Matching, Discretionary and Executive
         Discretionary Contributions becomes vested a Change of Control occurs,
         then that portion of the Matching, Discretionary and Executive
         Discretionary Contributions which has not yet become vested shall
         immediately become vested to such Participant or such Participant's
         Beneficiary or estate, as the case may be, as of the date of such
         Change of Control. For purposes of this Agreement Change Of Control
         shall mean, and be deemed to have occurred, on the date of the first to
         occur any of the following:

                  (i) upon the vote of the shareholders of Taylor Capital Group,
         Inc. approving a merger or consolidation in which the Company's
         shareholders immediately prior to the effective time of the merger or
         consolidation will beneficially own immediately after the effective
         time of the merger or consolidation securities of the surviving or new
         corporation having less than 50% of the "voting power" of the surviving
         or new corporation, including "voting power" exercisable on a
         contingent or deferred basis as well as immediately exercisable "voting
         power"; provided, however, that no such merger or consolidation shall
         constitute a "change of control" in the event that following such
         transaction the Taylor Family (as defined below) owns, directly or
         indirectly, 30% or more of the combined "voting power" of the surviving
         or new corporation's outstanding securities, excluding "voting power"
         exercisable on a contingent or deferred basis; or

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

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

         For purposes of this Agreement, the Taylor Family means (i) Sidney
         Taylor and Iris Taylor, (ii) a descendant of Sidney Taylor and Iris
         Taylor, (iii) any estate, trust, guardianship or custodianship for the
         primary benefit of an individual described in (i) or (ii) above, or
         (iv) a proprietorship, partnership, limited liability company, or
         corporation controlled by and substantially all the interest in which
         are owned, directly or indirectly, by one or more individuals or
         entities described in (i), (ii), or (iii) above.

4.6      CHANGE OF CONTROL TRUST NOTIFICATION. In the event of a Change of
         Control, as defined herein, the Administrator shall notify the Trustee
         of the Change of Control as soon as administratively possible.

4.7      AMOUNTS NOT VESTED. Any amounts credited to a Participant's Account
         that are not vested at the time of his or her termination of employment
         with the Employer shall be forfeited.

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                                   ARTICLE 5

                                    ACCOUNTS

5.1      ACCOUNTS. The Administrator shall establish and maintain a bookkeeping
         account in the name of each Participant. The Administrator shall also
         establish subaccounts, as provided in subsection (a), (b), and/or (c),
         below, as elected by the Participant pursuant to Article 3.

         (a)      A Retirement Account shall be established for each
                  Participant. His or her Retirement Account shall be credited
                  with Deferrals (as specified in the Participant's Deferral
                  Election), any Matching, Discretionary and/or Executive
                  Discretionary Contributions allocable thereto and the
                  Participant's allocable share of any earnings or losses on the
                  foregoing. Each Participant's Account shall be reduced by any
                  distributions made plus any federal, state and/or local tax
                  withholding and any social security withholding tax as may be
                  required by law.

         (b)      A Participant may elect to establish one or more College
                  Education Accounts in the name of a "Student" at the time of
                  his or her Deferral. For purposes of this Article, Student
                  shall mean an individual who has not yet attained the age of
                  fourteen (14) at the time the account is initially
                  established. Each Participant's College Education Account
                  shall be credited with Deferrals (as specified in the
                  Participant's Deferral Election), any Matching, Discretionary
                  and/or Executive Discretionary Contributions allocable thereto
                  and the Participant's allocable share of any earnings or
                  losses on the foregoing. Each Participant's Account shall be
                  reduced by any distributions made plus any federal, state
                  and/or local tax withholding and any social security
                  withholding tax as may be required by law.

         (c)      A Participant may elect to establish one or more Personal
                  Goals Accounts by designating a year of payout at the time the
                  account is initially established. The

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                  minimum initial deferral period for Personal Goals subaccounts
                  shall be five (5) years. Each Participant's Personal Goals
                  Account shall be credited with Deferrals (as specified in the
                  Participant's Deferral Election), any Matching, Discretionary
                  and/or Executive Discretionary Contributions allocable thereto
                  and the Participant's allocable share of any earnings or
                  losses on the foregoing. Each Participant's Account shall be
                  reduced by any distributions made plus any federal, state
                  and/or local tax withholding and any social security
                  withholding tax as may be required by law.

         (d)      The Participant shall not exceed a total of ten (10) open
                  College Education and Personal Goals subaccounts at any time.

5.2      INVESTMENTS, GAINS AND LOSSES.

         (a)      Trust assets shall be invested by the Trustee in accordance
                  with written directions from the Administrator. Such
                  directions shall provide Trustee with the investment
                  discretion to invest the above-referenced amounts within broad
                  guidelines established by Trustee and Administrator as set
                  forth therein.

         (b)      The Administrator shall adjust the amounts credited to each
                  Participant's Account to reflect Deferrals, Matching
                  Contributions, Discretionary Contributions, Executive
                  Discretionary Contribution, investment experience,
                  distributions and any other appropriate adjustments. Such
                  adjustments shall be made as frequently as is administratively
                  feasible.

         (c)      A Participant may direct that his or her Retirement Account,
                  College Education Account and or Personal Goals Account
                  established pursuant to Section 5.1 may be valued as if they
                  were invested in one or more Investment Funds in multiples of
                  one percent (1%) of the balance in an Account. A Participant
                  may change his or her selection of Investment Funds, in the

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                  aggregate, no more than twelve (12) times each Plan Year. Any
                  changes in excess of 12 per year will result in a $100 fee
                  charged to the Participant's Account(s). The aforementioned
                  selection change fee shall be debited from the affected
                  Account(s) of the requesting Participant. In the event
                  Participant's Account(s) is insufficient to cover the $100 fee
                  debit, Participant and Administrator shall make a good faith
                  determination as to the payment logistics of the Investment
                  Fund selection change fee. An election shall be effective as
                  soon as administratively feasible following the date of the
                  change as indicated in writing by the Participant.

5.3      FORFEITURES. Any forfeitures from a Participant's Account shall
         continue to be held in the Trust, and shall be used to reduce the
         Employer's future Matching, Discretionary and or Executive
         Discretionary Contributions under the Plan. If no such further
         contributions will be made, then such forfeitures shall be returned to
         the Employer.

                                    ARTICLE 6

                                  DISTRIBUTIONS

6.1      DISTRIBUTION ELECTION. Each Participant shall designate on his or her
         Deferral Election the timing of his or her distribution by indicating
         the type of account as described under Section 5.1. A Participant may
         not modify, alter, amend or revoke such designation for a Plan Year
         after such Plan Year begins. Further, amounts in one Account cannot be
         transferred to another Account. Each Participant shall also designate
         the manner in which Retirement Account payments shall be made from the
         choices available under Section 6.2 (a) hereof.

6.2      PAYMENT OPTIONS.

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         (a)      Retirement Account payments shall commence as soon as
                  administratively feasible immediately after the Participant's
                  Retirement. The Participant may elect any one of the following
                  forms of payment so long as the election is made in writing,
                  delivered to the Administrator at least one year prior to the
                  year in which the Participant's benefit becomes payable.

                  (i)      The normal form of payment of benefits hereunder, and
                           the form of payments to be used if no other election
                           is made, shall be a single lump-sum distribution of
                           the value of the Participant's Retirement Account.

                  (ii)     A Participant entitled to a benefit hereunder may
                           elect to receive his/her Retirement Account in
                           substantially equal annual installments over a period
                           not to exceed ten (10) years.

                           The amount of the substantially equal payments
                           described above shall be determined by multiplying
                           the Participant's Retirement Account by a fraction,
                           the denominator of which in the first year of payment
                           equals the number years over which benefits are to be
                           paid, and the numerator of which is one (1).

                           The amounts of the payments for each succeeding year
                           shall be determined by multiplying the Participant's
                           Retirement Account as of the applicable anniversary
                           of the Participant's Retirement Date by a fraction,
                           the denominator of which equals the number of
                           remaining years over which benefits are to be paid,
                           and the numerator of which is one (1).

         (b)      College Education Account payouts shall be paid in four annual
                  installments on July 1st (or as soon as administratively
                  feasible) of the calendar year in

                                       15
<PAGE>
                  which the Student reaches age eighteen (18) and the three (3)
                  anniversaries thereof in the following amounts:

                                    Year 1  25% of the account balance
                                    Year 2  33% of the account balance
                                    Year 3  50% of the account balance
                                    Year 4  100% of the account balance

         (c)      Personal Goals Account payouts shall be paid in one lump sum
                  payment on January 1st (or as soon as administratively
                  feasible) of the calendar year selected by the Participant on
                  his or her Deferral Election.

         (d)      If a Participant's employment is terminated for any reason
                  other than Retirement and such Participant has a balance in
                  his/her Personal Goals and/or College Education Account, such
                  balance shall be transferred to his/her Retirement Account and
                  distributed as soon as administratively feasible in one lump
                  sum payment.

6.3      COMMENCEMENT OF PAYMENT UPON DEATH, DISABILITY OR TERMINATION.

         (a)      Upon the death of a Participant, all amounts credited to his
                  or her Account(s), not already distributed to Participant
                  prior to Participant's death, shall be paid, as soon as
                  administratively feasible, to his or her Beneficiary or
                  Beneficiaries, as determined under Article 7 hereof, in a lump
                  sum.

         (b)      Upon the Disability of a Participant, all amounts credited to
                  his or her Account(s) shall be paid to the Participant in a
                  lump-sum payment, as soon as administratively feasible.

                                       16
<PAGE>
         (c)      Upon the termination of employment of a Participant, all
                  vested amounts credited to his or her Account(s) shall be paid
                  to the Participant in a lump-sum payment, as soon as
                  administratively feasible.

6.4      MINIMUM DISTRIBUTION.

         (a)      Notwithstanding any provision to the contrary, if the vested
                  balance of a Participant's Account at the time of a
                  termination due to Retirement is less than $10,000 then the
                  Participant shall be paid his or her benefits as a single lump
                  sum as soon as administratively feasible following said
                  termination.

         (b)      Notwithstanding any provision to the contrary, if the balance
                  of a Participant's College Education Account at the time
                  benefit payments are to commence is less than $4,000 then the
                  Participant shall be paid such College Education Account
                  benefits as a single lump sum as soon as administratively
                  feasible following said commencement date.

6.5      FINANCIAL HARDSHIP DISTRIBUTION. The Administrator may permit an early
         distribution of part or all of any deferred amounts; provided, however,
         that such distribution shall be made only if the Administrator, in its
         sole discretion, determines that the Participant has experienced an
         unforeseen emergency that is caused by an event beyond the control of
         the Participant and that would result in severe financial hardship to
         the Participant if early distribution were not permitted. Any
         distribution pursuant to this subsection is limited to the amount
         necessary to meet the hardship.

6.6      EARLY DISTRIBUTION AND PENALTY. A Participant may elect to receive a
         distribution of up to ninety percent (90%) of the vested amounts in his
         or her Account on a date prior to that established under the Plan. If
         such an early distribution is requested, the Plan Administrator shall
         deduct from the Participant's account an additional ten percent (10%)
         of the vested amount withdrawn. This additional amount withdrawn by the
         Plan

                                       17
<PAGE>
         Administrator shall be considered an early distribution penalty, and
         shall be treated as forfeited by the participant. Participants who
         receive early distributions shall lose their status as Eligible
         Employees and will be barred from further participation in the Plan
         until a minimum of twelve (12) months have passed.

                                    ARTICLE 7

                                  BENEFICIARIES

7.1      BENEFICIARIES. Each Participant may from time to time designate one or
         more persons (who may be any one or more members of such person's
         family or other persons, administrators, trusts, foundations or other
         entities) as his or her Beneficiary under the Plan. Such designation
         shall be made on a form prescribed by the Administrator. Each
         Participant may at any time and from time to time, change any previous
         Beneficiary designation, without notice to or consent of any previously
         designated Beneficiary, by amending his or her previous designation on
         a form prescribed by the Administrator. If no person shall be
         designated by the Participant as a Beneficiary, or if the designated
         Beneficiary shall not survive the Participant, payment of his/her
         interest shall be made to the Participant's estate. If more than one
         person is the beneficiary of a deceased Participant, each such person
         shall receive a pro rata share of any death benefit payable unless
         otherwise designated on the applicable form.

7.2      LOST BENEFICIARY.

         (a)      All Participants and Beneficiaries shall have the obligation
                  to keep the Administrator informed of their current address
                  until such time as all benefits due have been paid.

         (b)      If a Participant or Beneficiary cannot be located by the
                  Administrator exercising due diligence, then, in its sole
                  discretion, the Administrator may presume that the Participant
                  or beneficiary is deceased for purposes of the Plan and all
                  unpaid amounts (net of due diligence expenses) owed to the
                  Participant or beneficiary shall be paid accordingly or, if a
                  Beneficiary cannot be so

                                       18
<PAGE>
                  located, then such amounts may be forfeited. Any such
                  presumption of death shall be final, conclusive and binding on
                  all parties. Notwithstanding the foregoing, if any such
                  Beneficiary is located within five years from the date of any
                  such forfeiture, such Beneficiary shall be entitled to receive
                  the amount previously forfeited.

                                    ARTICLE 8

                                     FUNDING

8.1      PROHIBITION AGAINST FUNDING. Should any investment be acquired in
         connection with the liabilities assumed under this Plan, it is
         expressly understood and agreed that the Participants and Beneficiaries
         shall not have any right with respect to, or claim against, such assets
         nor shall any such purchase be construed to create a trust of any kind
         or a fiduciary relationship between the Employer and the Participants,
         their Beneficiaries or any other person. Any such assets shall be and
         remain a part of the general, unpledged, unrestricted assets of the
         Employer, subject to the claims of its general creditors. It is the
         express intention of the parties hereto that this arrangement shall be
         unfunded for tax purposes and for purposes of Title I of the Employee
         Retirement Income Security Act of 1974, as amended. Each Participant
         and beneficiary shall be required to look to the provisions of this
         Plan and to the Administrator itself for enforcement of any and all
         benefits due under this Plan, and to the extent any such person
         acquires a right to receive payment under this Plan, such right shall
         be no greater than the right of any unsecured general creditor of the
         Employer. The Employer or the Trust shall be designated the owner and
         beneficiary of any investment acquired in connection with its
         obligation under this Plan.

8.2      DEPOSITS IN TRUST. Notwithstanding paragraph 8.1, or any other
         provision of this Plan to the contrary, the Employer and/or the
         Administrator, may deposit into the Trust any amounts it deems
         appropriate to pay the benefits under this Plan. The amounts so
         deposited may include all contributions made pursuant to a Deferral
         Election by a Participant along with any Matching, Discretionary and
         Executive Discretionary Contributions.

                                       19
<PAGE>
8.3      INDEMNIFICATION OF TRUSTEE.

         (a)      The Trustee shall not be liable for the making, retention, or
                  sale of any investment or reinvestment made by it, as herein
                  provided, nor for any loss to, or diminution of, the Trust
                  assets, unless due to its own negligence, willful misconduct
                  or lack of good faith.

         (b)      Such Trustee shall be indemnified and saved harmless by the
                  Employer from and against all personal liability to which it
                  may be subject by reason of any act done or omitted to be done
                  in its official capacity as Trustee in good faith in the
                  administration of the Plan and Trust, including all expenses
                  reasonably incurred in its defense in the event the Employer
                  fails to provide such defense upon the request of the Trustee.
                  The Trustee is relieved of all responsibility in connection
                  with its duties hereunder to the fullest extent permitted by
                  law, short of breach of duty to the Beneficiary(es).

8.4      WITHHOLDING OF EMPLOYEE CONTRIBUTIONS. The Administrator is authorized
         to make any and all necessary arrangements with the Employer in order
         to withhold the Participant's Deferrals under Section 3.1 hereof from
         his or her Compensation. The Administrator shall determine the amount
         and timing of such withholding.

                                    ARTICLE 9

                              CLAIMS ADMINISTRATION

9.1      GENERAL. If a Participant, Beneficiary or his/her representative is
         denied all or a portion of an expected Plan benefit for any reason and
         the Participant, Beneficiary or his/her representative desires to
         dispute the decision of the Administrator, he/she must file a written
         notification of his/her claim with the Administrator.

                                       20
<PAGE>
9.2      CLAIM REVIEW. Upon receipt of any written claim for benefits, the
         Administrator shall be notified and shall give due consideration to the
         claim presented. If the claim is denied to any extent by the
         Administrator, the Administrator shall furnish the claimant with a
         written notice setting forth (in a manner calculated to be understood
         by the claimant):

         (a)      the specific reason or reasons for denial of the claim;

         (b)      a specific reference to the Plan provisions on which the
                  denial is based;

         (c)      a description of any additional material or information
                  necessary for the claimant to perfect the claim and an
                  explanation of why such material or information is necessary;
                  and

         (d)      an explanation of the provisions of this Article.

9.3      RIGHT OF APPEAL. A claimant who has a claim denied under Section 9.2
         may appeal to the Administrator for reconsideration of that claim. A
         request for reconsideration under this section must be filed by written
         notice within sixty (60) days after receipt by the claimant of the
         notice of denial under Section 9.2.

9.4      REVIEW OF APPEAL. Upon receipt of an appeal the Administrator shall
         promptly take action to give due consideration to the appeal. Such
         consideration may include a hearing of the parties involved, if the
         Administrator feels such a hearing is necessary. In preparing for this
         appeal the claimant shall be given the right to review pertinent
         documents and the right to submit in writing a statement of issues and
         comments. After consideration of the merits of the appeal the
         Administrator shall issue a written decision which shall be binding on
         all parties subject to Section 9.6 below. The decision shall be written
         in a manner calculated to be understood by the claimant and shall
         specifically state its reasons and pertinent Plan provisions on which
         it relies.

                                       21
<PAGE>
         The Administrator's decision shall be issued within sixty (60) days
         after the appeal is filed, except that if a hearing is held the
         decision may be issued within one hundred twenty (120) days after the
         appeal is filed.

9.5      DESIGNATION. The Administrator may designate any other person of its
         choosing to make any determination otherwise required under this
         Article.

9.6      ARBITRATION. A claimant whose appeal has been denied under Section 9.4
         shall have the right to submit said claim to final and binding
         arbitration in the State of Illinois pursuant to the rules of the
         American Arbitration Association. Any such requests for arbitration
         must be filed by written demand to the American Arbitration Association
         within sixty (60) days after receipt of the decision regarding the
         appeal. The costs and expenses of arbitration, including the fees of
         the arbitrators, shall be borne by the losing party. The prevailing
         party shall recover as expenses all reasonable attorney's fees incurred
         by it in connection with the arbitration proceeding or any appeals
         therefrom.

                                   ARTICLE 10

                               GENERAL PROVISIONS

10.1     ADMINISTRATOR.

         (a)      The Administrator is expressly empowered to limit the amount
                  of compensation that may be deferred; to deposit amounts into
                  trust in accordance with Section 8.2 hereof; to interpret the
                  Plan, and to determine all questions arising in the
                  administration, interpretation and application of the Plan; to
                  employ actuaries, accountants, counsel, and other persons it
                  deems necessary in connection with the administration of the
                  Plan; to request any information from the Employer it deems
                  necessary to determine whether the Employer would be
                  considered insolvent or subject to a proceeding in bankruptcy;
                  and to take all other necessary and proper actions to fulfill
                  its duties as Administrator.

                                       22
<PAGE>
         (b)      The Administrator shall not be liable for any actions by it
                  hereunder, unless due to its own negligence, willful
                  misconduct or lack of good faith.

         (c)      The Administrator shall be indemnified and saved harmless by
                  the Employer from and against all personal liability to which
                  it may be subject by reason of any act done or omitted to be
                  done in its official capacity as Administrator in good faith
                  in the administration of the Plan and Trust, including all
                  expenses reasonably incurred in its defense in the event the
                  Employer fails to provide such defense upon the request of the
                  Administrator. The Administrator is relieved of all
                  responsibility in connection with its duties hereunder to the
                  fullest extent permitted by law, short of breach of duty to
                  the Beneficiary(ies).

10.2     NO ASSIGNMENT. No benefit under the Plan shall be subject in any manner
         to anticipation, alienation, sale, transfer, assignment, pledge
         encumbrance or charge, and any such action shall be void for all
         purposes of the Plan. No benefit shall in any manner be subject to the
         debts, contracts, liabilities, engagements or torts of any person, nor
         shall it be subject to attachments or other legal process for or
         against any person, except to such extent as may be required by law.

10.3     NO EMPLOYMENT RIGHTS. Participation in this Plan shall not be construed
         to confer upon any Participant the legal right to be retained in the
         employ of the Employer, or give a Participant or beneficiary, or any
         other person, any right to any payment whatsoever, except to the extent
         of the benefits provided for hereunder. Each Participant shall remain
         subject to discharge to the same extent as if this Plan had never been
         adopted.

10.4     INCOMPETENCE. If the Administrator determines that any person to whom a
         benefit is payable under this Plan is incompetent by reason of physical
         or mental disability, the Administrator shall have the power to cause
         the payments becoming due to such

                                       23
<PAGE>
         person to be made to another individual for the Participant's benefit
         without responsibility of the Administrator or the Employer to see to
         the application of such payments. Any payment made pursuant to such
         power shall, as to such payment, operate as a complete discharge of the
         Employer, the Administrator and the Trustee.

10.5     IDENTITY. If, at any time, any doubt exists as to the identity of any
         person entitled to any payment hereunder or the amount or time of such
         payment, the Administrator shall be entitled to hold such sum until
         such identity or amount or time is determined or until an order of a
         court of competent jurisdiction is obtained. The Administrator shall
         also be entitled to pay such sum into court in accordance with the
         appropriate rules of law. Any expenses incurred by the Employer,
         Administrator, and Trust incident to such proceeding or litigation
         shall be charged against the Account of the affected Participant.

10.6     OTHER BENEFITS. The benefits of each Participant or beneficiary
         hereunder shall be in addition to any benefits paid or payable to or on
         account of the Participant or beneficiary under any other pension,
         disability, annuity or retirement plan or policy whatsoever.

10.7     NO LIABILITY. No liability shall attach to or be incurred by any
         manager of the Employer, Trustee or any Administrator under or by
         reason of the terms, conditions and provisions contained in this Plan,
         or for the acts or decisions taken or made thereunder or in connection
         therewith; and as a condition precedent to the establishment of this
         Plan or the receipt of benefits thereunder, or both, such liability, if
         any, is expressly waived and released by each Participant and by any
         and all persons claiming under or through any Participant or any other
         person. Such waiver and release shall be conclusively evidenced by any
         act or participation in or the acceptance of benefits or the making of
         any election under this Plan.

                                       24
<PAGE>
10.8     EXPENSES. All expenses incurred in the administration of the Plan,
         whether incurred by the Employer, Administrator, or the Plan, shall be
         paid by the Employer.

10.9     INSOLVENCY. Should the Employer be considered insolvent (as defined by
         the Trust), the Employer, through its Board and chief executive
         officer, shall give immediate written notice of such to the
         Administrator of the Plan and the Trustee. Upon receipt of such notice,
         the Administrator or Trustee shall cease to make any payments to
         Participants who were Employees of the Employer or their beneficiaries
         and shall hold any and all assets attributable to the Employer for the
         benefit of the general creditors of the Employer.

10.10    AMENDMENT AND TERMINATION.

         (a)      Except as otherwise provided in this section, the Employer
                  shall have the sole authority to modify, amend or terminate
                  this Plan; provided, however, that any modification or
                  termination of this Plan shall not reduce, without the consent
                  of a Participant, a Participant's right to any amounts already
                  credited to his or her Account, or lengthen the time period
                  for a payout from an established Account, on the day before
                  the effective date of such modification or termination.
                  Following such termination, payment of such credited amounts
                  may be made in a single sum payment if the Employer so
                  designates. Any such decision to pay in a single sum shall
                  apply to all Participants.

         (b)      A Participant shall have a vested right to his or her Account
                  in the event of the termination of the Plan pursuant to
                  section (a), above.

         (c)      Any funds remaining in the Trust after termination of the Plan
                  and satisfaction of all liabilities to Participants and
                  others, shall be returned to the Employer.

                                       25
<PAGE>
10.11    EMPLOYER DETERMINATIONS. Any determinations, actions or decisions of
         the Employer (including but not limited to, Plan amendments and Plan
         termination) shall be made by the Board in accordance with its
         established procedures or by such other individuals, groups or
         organizations that have been properly delegated by the Board to make
         such determination or decision.

10.12    CONSTRUCTION. All questions of interpretation, construction or
         application arising under or concerning the terms of this Plan shall be
         decided by the Administrator, in its sole and final discretion, whose
         decision shall be final, binding and conclusive upon all persons.

10.13    GOVERNING LAW. This Plan shall be governed by, construed and
         administered in accordance with the applicable laws of the State of
         Illinois.

10.14    SEVERABILITY. Should any provision of the Plan or any regulations
         adopted thereunder be deemed or held to be unlawful or invalid for any
         reason, such fact shall not adversely affect the other provisions or
         regulations unless such invalidity shall render impossible or
         impractical the functioning of the Plan and, in such case, the
         appropriate parties shall immediately adopt a new provision or
         regulation to take the place of the one held illegal or invalid.

10.15    HEADINGS. The Article headings contained herein are inserted only as a
         matter of convenience and for reference and in no way define, limit,
         enlarge or describe the scope or intent of this Plan nor in any way
         shall they affect this Plan or the construction of any provision
         thereof.

10.16    TERMS. Capitalized terms shall have meanings as defined herein.
         Singular nouns shall be read as plural, masculine pronouns shall be
         read as feminine, and vice versa, as appropriate.

                                       26
<PAGE>
         IN WITNESS WHEREOF, TAYLOR CAPITAL GROUP, INC. has caused this
instrument to be executed by its duly authorized officer, effective as of this
_____ day of ________________, 2001.

TAYLOR CAPITAL GROUP, INC.

By:
   ---------------------------------

Title:
      ------------------------------

ATTEST:

By:
   ---------------------------------

Title:
      ------------------------------

                                       27<PAGE>
                                                                   EXHIBIT 10.17

                                   TRUST UNDER
              TAYLOR CAPITAL GROUP, INC. DEFERRED COMPENSATION PLAN

      This Agreement made this 1st day of April, 2001 by and between Taylor
Capital Group, Inc. (hereinafter referred to as the "Employer") and Allfirst
Trust Company (hereinafter referred to as the "Trustee");

      WHEREAS, the Employer has adopted the nonqualified deferred compensation
plan (hereinafter referred to as the "Plan") as listed in Appendix A.

      WHEREAS, the Employer has incurred or expects to incur liability under the
terms of such Plan with respect to the individuals participating in such Plan;

      WHEREAS, the Employer wishes to establish the Taylor Capital Group, Inc.
Trust (hereinafter referred to as the "Trust") and to contribute to the Trust
assets that shall be held therein, subject to the claims of the Employer's
creditors in the event of the Employer's Insolvency, as herein defined, until
paid to the Plan participants and their beneficiaries in such manner and at such
times as specified in the Plan;

      WHEREAS, it is the intention of the parties that this Trust shall
constitute an unfunded arrangement and shall not affect the status of the Plan
as an unfunded plan maintained for the purpose of providing deferred
compensation for a select group of management or highly compensated employees
for purposes of Title I of the Employee Retirement Income Security Act of 1974,
as amended;

      WHEREAS, it is the intention of the Employer to make contributions to the
Trust to provide itself with a source of funds to assist it in meeting its
liabilities under the Plan;

      NOW, THEREFORE, the parties do hereby establish the Trust and agree
that the Trust shall be comprised, held and disposed of as follows:
<PAGE>
1.    ESTABLISHMENT OF TRUST.

      (a)   The Employer hereby deposits with the Trustee in trust one dollar
            ($1.00), which shall become the principal of the Trust to be held,
            administered and disposed of by the Trustee as provided in this
            Trust.

      (b)   The Trust hereby established is revocable by Employer; it shall
            become irrevocable upon a Change of Control, as defined herein.

      (c)   The Trust is intended to be a grantor trust, of which the Employer
            is the grantor, within the meaning of subpart E, part I, subchapter
            J, chapter 1, Subtitle A of the Internal Revenue Code of 1986, as
            amended, and shall be construed accordingly.

      (d)   The principal of the Trust, and any earnings thereon shall be
            held separate and apart from other funds of the Employer and
            shall be used exclusively for the uses and purposes of Plan
            participants and general creditors as herein set forth.  Plan
            participants and their beneficiaries shall have no preferred
            claim on, or any beneficial ownership interest in, any assets
            of the Trust.  Any rights created under the Plan and this
            Trust shall be mere unsecured contractual rights of Plan
            participants and their beneficiaries against the Employer.
            Any assets held by the Trust will be subject to the claims of
            the Employer's general creditors under federal and state law
            in the event of Insolvency, as defined in Section 3(a) hereof.

      (e)   The Employer, in its sole discretion, may at any time, or from time
            to time, make additional deposits of cash or other property in trust
            with the Trustee to augment the principal to be held, administered
            and disposed of by the Trustee as provided in this Trust Agreement.
            Neither the Trustee nor any Plan participant or beneficiary shall
            have any right to compel such additional
<PAGE>
            deposits.

      (f)   Upon a Change of Control, Employer shall, as soon as possible,
            but in no event longer than five (5) days following the Change
            of Control, as defined herein, make an irrevocable
            contribution to the Trust in an amount that is sufficient to
            pay each Plan participant or beneficiary the benefits to which
            Plan participants or their beneficiaries would be entitled
            pursuant to the terms of the Plan(s) as of the date on which
            the Change of Control occurred.

2.    PAYMENTS TO PLAN PARTICIPANTS AND BENEFICIARIES.

      (a)   The Employer shall deliver to the Trustee a schedule (the
            "Payment Schedule") that indicates the amounts payable with
            respect to each Plan participant (and his or her
            beneficiaries), that provides a formula or other instructions
            acceptable to the Trustee for determining the amounts so
            payable, the form in which such amount is to be paid (as
            provided for or available under the Plan(s)), and the time of
            commencement for payment of such amounts.  Except as otherwise
            provided herein, the Trustee shall make payments to the Plan
            participants and their beneficiaries in accordance with such
            Payment Schedule.  The Trustee shall make provision for the
            reporting and withholding of any federal, state or local taxes
            that may be required to be withheld with respect to the
            payment of benefits pursuant to the terms of the Plan(s) and
            shall pay amounts withheld to the appropriate taxing
            authorities or determine that such amounts have been reported,
            withheld and paid by the Employer.

      (b)   The entitlement of a Plan participant or his or her beneficiaries to
            benefits under the Plan shall be determined by the Employer or such
            party as it shall designate under the Plan, and any claim for such
            benefits shall be considered and reviewed under the procedures set
            out in the Plan.
<PAGE>
      (c)   The Employer may make payment of benefits directly to Plan
            participants or their beneficiaries as they become due under
            the terms of the Plan(s).  The Employer shall notify the
            Trustee of its decision to make payment of benefits directly
            prior to the time amounts are payable to participants or their
            beneficiaries.  In addition, if the principal of the Trust,
            and any earnings thereon, are not sufficient to make payments
            of benefits in accordance with the terms of the Plan, the
            Employer shall make the balance of each such payment as it
            falls due.  The Trustee shall notify the Employer where
            principal and earnings are not sufficient.

3.    TRUSTEE RESPONSIBILITY REGARDING PAYMENTS TO THE TRUST BENEFICIARY WHEN
      EMPLOYER IS INSOLVENT.

      (a)   The Trustee shall cease payment of benefits to Plan participants and
            their beneficiaries if the Employer is Insolvent. The Employer shall
            be considered "Insolvent" for purposes of this Trust if:

            (i)   the Employer is unable to pay its debts as they become due; or

            (ii)  the Employer is subject to a pending proceeding as a debtor
                  under the United States Bankruptcy Code.

      (b)   At all times during the continuance of this Trust, as provided in
            Section 1(d) hereof, the principal and income of the Trust shall be
            subject to claims of general creditors of the Employer under federal
            and state law as set forth below:

            (i)   The Board of Directors and the Chief Executive Officer (or, if
                  there is no Chief Executive Officer, the highest ranking
                  officer of the Employer) of the Employer shall have the duty
                  to inform the Trustee in
<PAGE>
                  writing of the Employer's Insolvency. If a person claiming to
                  be a creditor of the Employer alleges in writing to the
                  Trustee that the Employer has become Insolvent, the Trustee
                  shall determine whether the Employer is Insolvent and, pending
                  such determination, the Trustee shall discontinue payment of
                  benefits to Plan participants or their beneficiaries.

            (ii)  Unless the Trustee has actual knowledge of the Employer's
                  Insolvency, or has received notice from the Employer or a
                  person claiming to be a creditor alleging that the Employer is
                  Insolvent, the Trustee shall have no duty to inquire whether
                  the Employer is Insolvent. The Trustee may in all events rely
                  on such evidence concerning the Employer's solvency as may be
                  furnished to the Trustee and that provides the Trustee with a
                  reasonable basis for making a determination concerning the
                  Employer's solvency.

            (iii) If at any time the Trustee has determined that the Employer is
                  Insolvent, the Trustee shall discontinue payments to Plan
                  participants or their beneficiaries and shall hold the assets
                  of the Trust for the benefit of the Employer's general
                  creditors. Nothing in this Trust shall in any way diminish any
                  rights of Plan participants or their beneficiaries to pursue
                  their rights as general creditors of the Employer with respect
                  to benefits due under the Plan(s) or otherwise.

            (iv)  The Trustee shall resume the payment of benefits to Plan
                  participants or their beneficiaries in accordance with Section
                  2 of this Trust only after the Trustee has determined that the
                  Employer is not Insolvent (or is no longer Insolvent).

      (c)   Provided that there are sufficient assets, if the Trustee
            discontinues the
<PAGE>
            payment of benefits from the Trust pursuant to Section 3(b) hereof
            and subsequently resumes such payments, the first payment following
            such discontinuance shall include the aggregate amount of all
            payments due to Plan participants or their beneficiaries under the
            terms of the Plan for the period of such discontinuance, less the
            aggregate amount of any payments made to Plan participants or their
            beneficiaries by the Employer in lieu of the payments provided for
            hereunder during any such period of discontinuance.

4.    PAYMENTS TO EMPLOYER. Except as provided in Section 3 hereof, after the
      Trust has become irrevocable, the Employer shall have no right or power to
      direct the Trustee to return to the Employer or to divert to others any of
      the Trust assets before all payment of benefits have been made to Plan
      participants and their beneficiaries pursuant to the terms of the Plan.

5.    INVESTMENT AUTHORITY.

      (a)   The Trustee may invest in securities (including stock or rights to
            acquire stock) or obligations issued by the Employer. All rights
            associated with assets of the Trust shall be exercised by the
            Trustee or the person designated by the Trustee, and shall in no
            event be exercisable by or rest with Plan participants, except that
            voting rights with respect to Trust assets will be exercised by the
            Employer.

      (b)   The Employer shall have the right at any time, and from time to time
            in its sole discretion, to substitute assets of equal fair market
            value for any assets held by the Trust. This right is exercisable by
            the Employer in a nonfiduciary capacity without the approval or
            consent of any person in a fiduciary capacity.

      (c)   The trustee shall invest the principal of the Trust and any earnings
            thereon in accordance with written directions from the Employer.
            Such directions shall
<PAGE>
            provide Trustee with the investment discretion to invest the above
            referenced amounts within the broad guidelines established by
            Trustee and Employer as set forth therein.

6.    DISPOSITION OF INCOME. During the term of this Trust, all income received
      by the Trust, net of expenses and taxes, shall be accumulated and
      reinvested.

7.    ACCOUNTING BY TRUSTEE. The Trustee shall keep accurate and detailed
      records of all investments, receipts, disbursements, and all other
      transactions required to be made, including such specific records as shall
      be agreed upon in writing between the Employer and the Trustee. Within
      sixty (60) days following the close of each calendar year and within sixty
      (60) days after the removal or resignation of the Trustee, the Trustee
      shall deliver to the Employer a written account of its administration of
      the Trust during such year or during the period from the close of the last
      preceding year to the date of such removal or resignation, setting forth
      all investments, receipts, disbursements and other transactions effected
      by it, including a description of all securities and investments purchased
      and sold with the cost or net proceeds of such purchases or sales (accrued
      interest paid or receivable being shown separately), and showing all cash,
      securities and other property held in the Trust at the end of such year or
      as of the date of such removal or resignation as the case may be.

8.    RESPONSIBILITY OF TRUSTEE.

      (a)   The Trustee shall act with the care, skill, prudence and diligence
            under the circumstances then prevailing that a prudent person acting
            in a like capacity and familiar with such matters would use in the
            conduct of an enterprise of a like character and with like aims,
            provided, however, that the Trustee shall incur no liability to any
            person for any action taken pursuant to a direction, request or
            approval given by the Employer which is contemplated by, and in
            conformity with, the terms of the Plan or this Trust and is given in
            writing by
<PAGE>
            the Employer. In the event of a dispute between the Employer and a
            party, the Trustee may apply to a court of competent jurisdiction to
            resolve the dispute.

      (b)   If the Trustee undertakes or defends any litigation arising in
            connection with this Trust (other than litigation arising out of the
            Trustee's negligence or willful misconduct, or failure to perform
            its duties under the Trust), the Employer agrees to indemnify the
            Trustee against Trustee's costs, expenses and liabilities
            (including, without limitation, attorneys' fees and expenses)
            relating thereto and to be primarily liable for such payments. If
            the Employer does not pay such costs, expenses and liabilities in a
            reasonably timely manner, the Trustee may obtain payment from the
            Trust.

      (c)   The Trustee may consult with legal counsel (who may also be counsel
            for the Employer generally) with respect to any of its duties or
            obligations hereunder.

      (d)   The Trustee may hire agents, accountants, actuaries, investment
            advisors, financial consultants or other professionals to assist it
            in performing any of its duties or obligations hereunder.

      (e)   The Trustee shall have, without exclusion, all powers conferred on
            trustees by applicable law, unless expressly provided otherwise
            herein, provided, however, that if an insurance policy is held as an
            asset of the Trust, the Trustee shall have no power to name a
            beneficiary of the policy other than the Trust, to assign the policy
            (as distinct from conversion of the policy to a different form)
            other than to a successor Trustee, or to loan to any person the
            proceeds of any borrowing against such policy.

      (f)   However, notwithstanding the provisions of Section 8(e) above, the
            Trustee may loan to the company the proceeds of any borrowing
            against an insurance policy held as an asset of the Trust.
<PAGE>
      (g)   Notwithstanding any powers granted to the Trustee pursuant to this
            Trust or to applicable law, the Trustee shall not have any power
            that could give this Trust the objective of carrying on a business
            and dividing the gains therefrom, within the meaning of section
            301.7701-2 of the Procedure and Administrative Regulations
            promulgated pursuant to the Internal Revenue Code.

      (h)   The Trustee shall indemnify and hold harmless the Company, its
            officers, employees and agents from and against all liabilities,
            losses and claims (including reasonable attorney's fees and costs of
            defense) to the extent that such liabilities losses and claims
            result, directly or indirectly, from the Trustee's breach of this
            Trust agreement, breach of fiduciary, negligence or willful
            misconduct.

9.    COMPENSATION AND EXPENSES OF THE TRUSTEE. The Employer shall pay all
      reasonable administrative and Trustee's fees and expenses. If not so paid,
      the fees and expenses shall be paid from the Trust.

10.   RESIGNATION AND REMOVAL OF TRUSTEE.

      (a)   The Trustee may resign at any time by written notice to the
            Employer, which shall be effective thirty (30) days after receipt of
            such notice unless the Employer and the Trustee agree otherwise.

      (b)   The Trustee may be removed by the Employer upon thirty (30) days
            notice or upon shorter notice accepted by the Trustee.

      (c)   Upon resignation or removal of the Trustee and appointment of a
            successor Trustee, all assets shall subsequently be transferred to
            the successor Trustee. The transfer shall be completed within sixty
            (60) days after receipt of notice of resignation, removal or
            transfer, unless the Employer extends the time limit.
<PAGE>
      (d)   If the Trustee resigns or is removed, a successor shall be
            appointed, in accordance with Section 11 hereof, by the effective
            date of the resignation or removal under paragraph (a) or (b) of
            this section. If no such appointment has been made, the Trustee may
            apply to a court of competent jurisdiction for appointment of a
            successor or for instructions. All expenses of the Trustee in
            connection with the proceeding shall be allowed as administrative
            expenses of the Trust.

11.   APPOINTMENT OF SUCCESSOR.

      (a)   If the Trustee resigns (or is removed) in accordance with Section
            10(a) or (b) hereof, the Employer may appoint any third party, such
            as a bank trust department or other party that may be granted
            corporate trustee powers under state law, as a successor to replace
            the Trustee upon resignation or removal. The appointment shall be
            effective when accepted in writing by the new Trustee, who shall
            have all of the rights and powers of the former Trustee, including
            ownership rights in the Trust assets. The former Trustee shall
            execute any instrument necessary or reasonably requested by the
            Employer or the successor Trustee to evidence the transfer.

      (b)   The successor Trustee need not examine the records and acts of any
            prior Trustee and may retain or dispose of existing Trust assets,
            subject to Sections 7 and 8 hereof. The successor Trustee shall not
            be responsible for and the Employer shall indemnify and defend the
            successor Trustee from any claim or liability resulting from any
            action or inaction of any prior Trustee or from any other past
            event, or any condition existing at the time it becomes successor
            Trustee.
<PAGE>
12.   AMENDMENT OR TERMINATION.

      (a)   This Trust may be amended by a written instrument executed by the
            Trustee and the Employer. Notwithstanding the foregoing, no such
            amendment shall conflict with the terms of the Plan or shall make
            the Trust revocable after it has become irrevocable in accordance
            with Section 1(b) hereof.

      (b)   This Trust shall not terminate until the date on which Plan
            participants and their beneficiaries are no longer entitled to
            benefits pursuant to the terms of the Plan. Upon termination of this
            Trust any assets remaining in this Trust shall be returned to the
            Employer.

      (c)   Upon written approval of participants or beneficiaries entitled to
            payment of benefits pursuant to the terms of the Plan, the Employer
            may terminate this Trust prior to the time all benefit payments
            under the Plan have been made. All assets in the Trust at
            termination shall be returned to the Employer.

13.   MISCELLANEOUS.

      (a)   Any provision of this Trust prohibited by law shall be ineffective
            to the extent of any such prohibition, without invalidating the
            remaining provisions hereof.

      (b)   Benefits payable to Plan participants and their beneficiaries under
            this Trust may not be anticipated, assigned (either at law or in
            equity), alienated, pledged, encumbered or subjected to attachment,
            garnishment, levy, execution or other legal or equitable process.

      (c)   This Trust shall be governed by and construed in accordance with the
            laws of the State of Illinois.
<PAGE>
      (d)   For purposes of this Trust, Change of Control shall mean, and be
            deemed to have occurred, on the date of the first to occur any of
            the following:

            (i)   upon the vote of the shareholders of Taylor Capital approving
                  a merger or consolidation in which the Company's shareholders
                  immediately prior to the effective time of the merger or
                  consolidation will beneficially own immediately after the
                  effective time of the merger or consolidation securities of
                  the surviving or new corporation having less than 50% of the
                  "voting power" of the surviving or new corporation, including
                  "voting power" exercisable on a contingent or deferred basis
                  as well as immediately exercisable "voting power"; provided,
                  however, that no such merger or consolidation shall constitute
                  a "change of control" in the event that following such
                  transaction the Taylor Family (as defined below) owns,
                  directly or indirectly, 30% or more of the combined "voting
                  power" of the surviving or new corporation's outstanding
                  securities, excluding "voting power" exercisable on a
                  contingent or deferred basis; or

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

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

      For purposes of this Trust, the Taylor Family means (i) Sidney Taylor and
      Iris Taylor, (ii) a descendant of Sidney Taylor and Iris Taylor, (iii) any
      estate, trust, guardianship or custodianship for the primary benefit of an
      individual described in (i) or (ii) above, or (iv) a proprietorship,
      partnership, limited liability company, or corporation controlled by and
      substantially all the interest in which are owned, directly or indirectly,
      by one or more individuals or entities described in (i), (ii), or (iii)
      above.

14.   EFFECTIVE DATE. The effective date of this Trust shall be April 1, 2001.

Attest:                                    Taylor Capital Group, Inc.

________________________________           By: ________________________________
Secretary                                  Name and Title

                                           Allfirst Trust Company

                                           By: ________________________________
                                           Name and Title

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