Document:

Employment Offer Letter Agreement between the Registrant and Scott Prager

 Exhibit 10.24 
 

 
  
 October 21, 2003

  
 Scott Pranger 
 Atlanta, GA 
  
 Dear Scott: 
  
 Welcome to the Digital Insight family! We are all very excited about joining together our complementary industry expertise to create an organization positioned as the
clear leader in providing commercial Internet banking services to financial institutions. Together, our combined talents will enable us to sustain that competitive advantage as we continue to extend our business model Beyond Internet Banking.

  
 This letter confirms several important agreements regarding your employment
with Digital Insight contingent upon, and effective on the date of, the completion of the proposed merger between Digital Insight and Magnet Communications (the “Merger Date”). For purposes of calculating seniority and vacation accruals,
your original hire date of September 29, 1999 at Magnet will continue to be used. 
  
 Base Pay 
  
 Your annual base salary will be $ 8,672.83 per
semi-monthly pay period ($208,147.92 annually), payable according to Digital Insight’s standard payroll practice as in effect from time to time and subject to applicable withholding taxes. This reflects a 10% increase in your current base pay,
and will be effective upon the Merger Date. 
  
 Position 
  
 Your position with Digital Insight will be Senior Vice President and General Manager, Cash
Management Division, and you will report to Jeff Stiefler, Chairman, President and Chief Executive Officer. 
  
 Management Incentive Plan (MIP) 
  
 Additionally, effective January 1, 2004, you will be eligible to participate in the Digital Insight’s management incentive program (referred to herein as “MIP” or the “Program”) with target cash bonus compensation
equal to 50% of your annual base salary subject to the terms and conditions of the Program. The amount of the bonus award is subject to the sole discretion of Digital Insight, based upon performance targets for Digital Insight and/or the Cash
Management Operations. A separate MIP document will describe the specific goals you and Jeff Stiefler have discussed or will discuss for accomplishments over the next year with regard to the successful integration of Magnet with Digital Insight as
well as the achievement of certain financial goals. 

 Letter to Scott Pranger 
 Page 2 
 10/15/2003 
  
 Payout of 2003 Magnet Bonus 
  
 You will also be eligible to receive a 2003 annual bonus under the Magnet performance plan,
pro-rated to reflect that you participated in such plan only during the first five months of 2003. Your 2003 annual bonus, if any, will be payable in January 2004, provided you are employed by Digital Insight on the date such bonuses are to be paid.
Effective January 1, 2004, you will be eligible for the Digital Insight MIP. 
  
 Integration Performance Bonus on Management Incentive Plan 
  
 Further, as compensation for maintaining your position with Digital Insight for one year from the Merger Date, you will be paid 50% of your 2004 MIP potential on December 31, 2004 based on successful completion of certain specified goals.

  
 Merit Increase eligibility 
  
 You will be eligible for a potential merit increase to your base salary on April 1, 2004
which will be prorated based on your length of service with Digital Insight. 
  
 Benefits 
  
 Except as provided below, you will be entitled,
during the term of your employment, to such paid days off, participation in medical, dental, vision, life insurance, 401(k) and 401(k) match, Employee Stock Purchase Program, and other employee benefits as Digital Insight may offer from time to
time, subject to applicable eligibility requirements. You will maintain participation in your current benefits programs through March 31, 2004. Your benefits will convert to Digital Insight’s AXIS.ABLE Flex Benefits effective April 1, 2004,
with the following exceptions: (1) you will be eligible to participate in the ESPP in the first enrollment offering following the Merger Date; and (2) you will be eligible to participate in the 401(k) and 401(k) match as of January 1, 2004. A
detailed AXIS.ABLE Flex Benefits plan description accompanies this letter, and future communications will be forthcoming for the open enrollment process. 
  
 Stock Option Grant 
  
 We are pleased to grant you on the Merger Date, a stock option to purchase 50,000 shares of Digital Insight’s Common Stock. The exercise price per share will be the fair market value of our Common Stock on the
Merger Date, which is equal to the Nasdaq closing price of our stock on the previous trading day. The shares underlying the option will vest over a 48 month period with 25% vesting on the 12th month and 1/48th of the total grant vesting monthly thereafter. The stock option is subject to the standard terms and conditions of our stock option plan and will be
documented through a separate stock option agreement. These documents will be provided from our third party administrator approximately 90 days from the Merger Date. 
  
 You will receive a 50% acceleration of unvested options upon a “change in control,” as that term is defined in the stock option
agreement. 
  
 Confidentiality, Non-competition and Invention Assignment
Agreement 
  
 As a condition of your continued employment with Digital
Insight, you hereby agree to sign the enclosed Employee Nondisclosure Agreement, which is incorporated herein by reference. Digital Insight’s acceptance of the terms of this letter agreement is based in significant part on your commitment to
fulfill the obligations specified in that agreement. 
  
 Employment At Will

  
 You will continue to be an employee-at-will, meaning that either you or
Digital Insight can terminate the employment relationship at any time for any reason, with or without 

 Letter to Scott Pranger 
 Page 3 
 10/15/2003 
  
 cause. Any statements to the contrary that may have been
made to you, or that may be made to you, by Digital Insight, its agents, or representatives are superseded by this letter. 
  
 Additional Provisions 
  
 The terms described in this letter represent the terms of your employment at the close of the merger. This letter shall be of no force and effect in the event the merger does not close. It supersedes any previous
promises, representations or understanding relative to any terms and conditions. Any additions or modifications are not to be considered as part of this agreement unless expressed in writing and signed by you and an authorized officer of Digital
Insight. 
  
 Choice of Law 
  
 The terms and conditions of this letter and your employment shall be governed by and
construed in accordance with the laws of the State of Georgia, without regard to principles of conflict of laws. 
  
 Please confirm your understanding and acceptance of these terms by signing both copies of this letter and both copies of the Employee Nondisclosure Agreement, retaining
one of each for your files and returning the other to me. 
 We are very excited about the future of Digital Insight and we look forward to a long and
mutually rewarding working relationship. Please let me know if I can answer any questions for you about any of the matters outlined in this letter. 
  

	
	 Sincerely,

	 Digital Insight Corporation

	
	 /s/ Ken Larson

	 Ken Larson,

	 Senior Vice President, Human Resources

  
 ACCEPTANCE 
  
 I understand the terms set forth in this letter and
hereby agree to continue my employment under these terms following the merger: 
  

			
	 /s/ Scott M. Pranger

	 	 10/20/03

	 Signature
	 	 Date

		
	 Printed Name: Scott M. PrangerAmendment No. 4 to Loan Agreement

 EXHIBIT 10.22 
  
 AMENDMENT NO. 4 TO LOAN AGREEMENT 
  
 THIS AMENDMENT NO. 4 TO
LOAN AGREEMENT (this “Amendment”) dated as of December 1, 2003, is entered into between PRIVATEBANCORP, INC., a Delaware corporation
(the “Borrower”), and LASALLE BANK NATIONAL ASSOCIATION, a national banking association with its main office located in Chicago,
Illinois (the “Bank”). 
  
 RECITALS 
  
 A. The Borrower and the
Bank entered into a loan agreement, dated as of February 11, 2000 (the “Original Loan Agreement”), in which the Bank agreed to extend to the Borrower credit in the aggregate principal amount of Eighteen Million Dollars
($18,000,000). 
  
 B. The Borrower delivered to the Bank a Revolving
Note dated as of February 11, 2000, in the principal amount of Eighteen Million Dollars ($18,000,000) (the “Revolving Note”). 
  
 C. In connection with the transactions contemplated under the Original Loan Agreement, the Borrower granted to the Bank a security interest in 100% of the
capital stock of PrivateBank and Trust Company, an Illinois state bank with its main office located in Chicago, Illinois, and upon the completion of its formation, The PrivateBank, a federal savings bank with its main office to be located in St.
Louis, Missouri, with such security interests evidenced by Pledge and Security Agreement, dated as of February 11, 2000, made by the Borrower for the benefit of the Bank (the “Pledge Agreement”) 
  
 D. Pursuant to the terms of an Amendment No. 1 to Loan Agreement and Revolving
Note dated February 11, 2002 (the “First Amendment”), the Borrower and the Bank agreed to extend the Expiry Date (as defined in the Original Loan Agreement) from February 11, 2002, to April 11, 2002. 
  
 E. Pursuant to the terms of an Amendment No. 2 to Loan Agreement and Revolving
Note dated April 11, 2002 (the “Second Amendment”), the Borrower and the Bank agreed to extend the Expiry Date further from April 11, 2002, to April 11, 2003, and to increase the maximum aggregate principal amount the
Bank is willing to lend to the Borrower to Twenty Five Million Dollars ($25,000,000). 
  
 F. Pursuant to the terms of an Amendment No. 3 to Loan Agreement and Revolving Note dated December 1, 2002 (the “Third Amendment”), the Borrower and the Bank agreed to extend the Expiry
Date further from April 11, 2003, to December 1, 2003, and to increase the maximum aggregate principal amount the Bank is willing to lend to the Borrower to Thirty Five Million Dollars ($35,000,000). 
  
 G. The Borrower and the Bank have now agreed to extend the Expiry Date further
from December 1, 2003, to December 1, 2004, and among other revisions, to increase the maximum aggregate principal amount the Bank is willing to lend to the Borrower to Forty Million Dollars ($40,000,000). 
  

 NOW, THEREFORE, in consideration of the mutual representations,
warranties, covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 AGREEMENTS 
  
 Section 1. The Original Loan Agreement, as amended by the First Amendment, the
Second Amendment and the Third Amendment, is referred to herein as the “Loan Agreement.” All terms that are capitalized and used herein (and are not otherwise specifically defined herein) shall be used in this
Amendment as defined in the Loan Agreement. 
  
 Section 2. Section
2.1 of the Loan Agreement is hereby deleted and replaced in its entirety with the following: 
  
 Section 2.1 The Loans. Subject to and upon the terms and conditions set forth herein, the Bank agrees, at any time and from time to
time prior to the close of business on December 1, 2004 (the “Expiry Date”), to make loans (any such loan being referred to as a “Loan,” and collectively referred to as the
“Loans”), which Loans: (a) shall at the option of the Borrower be Prime Rate Loans or Eurodollar Rate Loans, provided that all Loans comprising the same Borrowing shall at all times be of the same Type; and (b) may be
prepaid and reborrowed in accordance with the provisions hereof; provided, however, that the aggregate principal amount of Loans outstanding from the Bank shall at no time exceed the principal amount of Forty Million Dollars ($40,000,000).

  
 Section 3. The first Recital and Section 2.4 of the Loan
Agreement are each hereby amended by deleting the dollar figure referenced therein of “Thirty Five Million Dollars ($35,000,000)” and replacing it in both places with the following reference to “Forty Million Dollars
($40,000,000).” 
  
 Section 4. Section 6.1(j) of the Loan
Agreement is hereby deleted and replaced in its entirety with the following: 
  
 (a) if the aggregate annual net income of the Banking Subsidiaries, determined in accordance with GAAP, for their most recently ended fiscal year, shall be less than $10.0 million; 
  
 Section 5. The replacement Note created pursuant to the Third Amendment, shall
be replaced in its entirety by a new Note, substantially identical in all respects to the current Note, except for the maturity date and the principal amount, and in the form attached hereto as Exhibit A. Upon the execution of the new Note
and delivery to the Bank, the Bank will destroy the current Note and all of Bank’s rights under the destroyed Note shall thereafter be represented by the new Note. All references to the “Note” in the Loan Agreement and the other Loan
Documents shall refer to the new Promissory Note with the new principal amount. 
  

 2 

 Section 6. To induce the Bank to execute and deliver this Amendment, the Borrower hereby represents to the
Bank that as of the date hereof and as of the time that this Amendment becomes effective, and after taking into account the revisions set forth in this Amendment, as follows: 
  
 (a) each of the representations and warranties set forth in the Loan Agreement and the Pledge Agreement is true and
correct; 
  
 (b) the Borrower is in full compliance with
all of the terms and conditions of the Loan Agreement and the Pledge Agreement and the other documents delivered in connection therewith, and no Default has occurred under the Loan Agreement or the Pledge Agreement (as defined in each such
agreement) or any document in connection therewith; and 
  
 (c) no fact or circumstance exists that with the lapse of time, the giving of notice or both would constitute such a Default. 
  
 Section 7. Except as previously amended hereby, each of the Loan Agreement and the Pledge Agreement is hereby ratified and confirmed and shall continue in
full force and effect. 
  
 Section 8. This Amendment shall become
effective when the Borrower and the Bank shall have executed it and thereafter shall be binding upon and inure to the benefit of the Borrower and the Bank and their respective successors and assigns 
  
 Section 9. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed will constitute but one and the same instrument. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date
first above written. 
  

													
	PRIVATEBANCORP, INC.	 	 	 	LASALLE BANK NATIONAL ASSOCIATION
					
	 By:
	 	 /S/    DENNIS L. KLAESER
  

	 	 	 	 By:
	 	 /S/    MICHAEL TIGHE
  

	 	 	 Name:  
	 	 Dennis L. Klaeser
  

	 	 	 	 	 	 Name:  
	 	 Michael Tighe

	 	 	 Title:
	 	 Chief Financial Officer
  

	 	 	 	 	 	 Title:
	 	 Vice President—Financial Institutions

  

 3 

 EXHIBIT A 
  
 REVOLVING NOTE 
  

			
	$40,000,000	 	Chicago, Illinois

  
 December 1, 2003

  
 FOR VALUE
RECEIVED, the undersigned, PRIVATEBANCORP, INC., a Delaware corporation with its principal place of business located at 10 N. Dearborn, Chicago, Illinois 60602
(the “Borrower”), hereby promises to pay to the order of LaSalle Bank National Association, a national banking association with its main office located in Chicago, Illinois (the “Bank”), the principal
sum of Forty Million United States Dollars (US$40,000,000), or whatever lesser amount of principal remains unpaid and owing from time to time under the terms of this Revolving Note. 
  
 This Revolving Note is referred to in, and was executed and delivered pursuant to, that certain Loan Agreement of even date herewith
between the Borrower and the Bank (as amended, restated, supplemented or modified from time to time, the “Agreement”), to which reference is hereby made for a statement of the terms and conditions under which the loan
evidenced hereby is to be repaid and for a statement of remedies upon the occurrence of a “Default” as defined therein. The Agreement is incorporated herein by reference in its entirety. All terms which are capitalized
and used herein (which are not otherwise specifically defined herein) and which are defined in the Agreement shall be used in this Revolving Note as defined in the Agreement. 
  
 The Borrower agrees that in any action or proceeding instituted to collect or enforce collection of this Revolving Note, the amount
shown on the Bank’s books and records with respect to the Borrower shall be prima facie evidence of the unpaid principal balance of this Revolving Note. 
  
 The unpaid principal balance plus all accrued but unpaid interest hereunder shall be due and payable on the Expiry Date, or such
earlier date on which such amount shall become due and payable on account of acceleration by the Bank. 
  
 The Borrower shall make all payments of principal due under the terms of this Revolving Note at the times, in the manner and in the amounts provided in the
Agreement. The Borrower promises to pay to the Bank interest on the outstanding unpaid principal amount hereof from the date hereof until payment in full at the rates and payable at the times provided in the Agreement. Interest shall be calculated
on the basis of a 360-day year, counting the actual number of days elapsed. 
  
 Upon the occurrence of any Default, the Prime Loan Default Rate as provided in Section 2.6 of the Agreement shall apply. Interest due hereunder may, at the Bank’s option and subject to the terms of the Agreement, be charged to
any account maintained by the Borrower with the Bank. 
  

 A-1 

 It is the intention of the parties hereto to conform strictly to applicable usury laws as in effect from time to
time during the term of the Loan. Accordingly, if any transaction contemplated hereby would be usurious under applicable law (including the laws of the United States of America, or of any other jurisdiction whose laws may be mandatorily applicable),
then, in that event, notwithstanding anything to the contrary in the Agreement or this Revolving Note, it is agreed that the aggregate of all consideration that constitutes interest under applicable law that is contracted for, charged or received
under the Agreement or this Revolving Note or otherwise in connection with the Agreement or this Revolving Note shall under no circumstances exceed the maximum amount of interest allowed by applicable law, and any excess shall be credited to the
Borrower by the Bank (or if such consideration shall have been paid in full, such excess refunded to the Borrower by the Bank). All sums paid, or agreed to be paid, to the Bank for the use, forbearance and detention of the indebtedness of the
Borrower by the Bank shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full term of such indebtedness until payment in full so that the actual rate of interest is uniform during the full
term thereof. 
  
 To the extent permitted by applicable law and except as
provided in the Agreement, the Borrower, for itself and its legal representatives, predecessors, successors and assigns, expressly waives presentment, demand, protest, notice of dishonor, notice of nonpayment, notice of maturity, notice of protest,
presentment for the purpose of accelerating maturity, diligence in collection and the benefit of any exemption under the homestead exemption laws, if any, or any other exemption or insolvency laws, and further agrees that the Bank may release or
surrender, exchange or substitute any real estate and/or personal property or other collateral security now held or which may hereafter be held as security for the payment of this Revolving Note, and may extend the time for payment or (with the
consent of Borrower) otherwise modify the terms of payment for any part or the whole of the indebtedness evidenced hereby. 
  
 This Revolving Note may be prepaid in whole or in part only as provided in the Agreement. Upon or at any time after the occurrence or existence of a Default, the
Bank shall be entitled, at its option, to accelerate the then outstanding indebtedness hereunder and take such other action as provided for in the Agreement. 
  
 THIS REVOLVING NOTE HAS BEEN NEGOTIATED, EXECUTED AND DELIVERED AT, AND SHALL BE DEEMED TO HAVE BEEN MADE AT, CHICAGO, ILLINOIS. THE LOAN REFERENCED HEREIN IS TO BE
FUNDED AND REPAID AT, AND THIS REVOLVING NOTE IS OTHERWISE TO BE PERFORMED AT, CHICAGO, ILLINOIS, AND THIS REVOLVING NOTE SHALL BE INTERPRETED, AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED, IN ACCORDANCE WITH THE INTERNAL LAWS OF
THE STATE OF ILLINOIS WITHOUT REFERENCE TO: (i) ITS JUDICIALLY OR STATUTORILY PRONOUNCED RULES REGARDING CONFLICT OF LAWS OR CHOICE OF LAW; (ii) WHERE ANY OTHER INSTRUMENT IS EXECUTED OR DELIVERED; (iii) WHERE ANY PAYMENT OR OTHER PERFORMANCE
REQUIRED BY ANY SUCH INSTRUMENT IS MADE OR REQUIRED TO BE MADE; (iv) WHERE ANY BREACH OF ANY PROVISION OF ANY SUCH INSTRUMENT OCCURS, OR ANY CAUSE OF ACTION OTHERWISE ACCRUES; (v) WHERE ANY ACTION OR OTHER PROCEEDING IS INSTITUTED OR PENDING; (vi)
THE NATIONALITY, CITIZENSHIP, DOMICILE, PRINCIPAL PLACE OF BUSINESS, OR JURISDICTION OR ORGANIZATION OR DOMESTICATION OF ANY PARTY; (vii) WHETHER THE LAWS OF THE FORUM 
  

 A-2 

 JURISDICTION OTHERWISE WOULD APPLY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF ILLINOIS; OR (viii) ANY COMBINATION OF THE
FOREGOING. AS PART OF THE CONSIDERATION FOR NEW VALUE THIS DAY RECEIVED, THE BORROWER RECOGNIZES THAT THE BANK’S PRINCIPAL OFFICE IS LOCATED IN CHICAGO, ILLINOIS, AND THAT THE BANK MAY BE IRREPARABLY HARMED IF REQUIRED TO INSTITUTE OR DEFEND
ANY ACTIONS AGAINST THE BORROWER IN ANY JURISDICTION OTHER THAN THE NORTHERN DISTRICT OF ILLINOIS OR COOK COUNTY, ILLINOIS; THEREFORE, THE BORROWER IRREVOCABLY (a) AGREES THAT ANY SUIT, ACTION OR OTHER LEGAL PROCEEDING RELATING TO THIS REVOLVING
NOTE AND/OR THE LOAN EVIDENCED HEREBY MAY BE BROUGHT IN THE NORTHERN DISTRICT OF ILLINOIS, IF FEDERAL JURISDICTION IS AVAILABLE, AND, OTHERWISE, IN THE CIRCUIT COURT OF COOK COUNTY, AT THE BANK’S OPTION; (b) CONSENTS TO THE JURISDICTION OF EACH
SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING; (c) WAIVES ANY OBJECTION WHICH THE BORROWER MAY HAVE TO THE LAYING OF VENUE IN ANY SUCH SUIT, ACTION OR PROCEEDING IN EITHER SUCH COURT; AND (d) AGREES TO JOIN THE BANK IN ANY PETITION FOR REMOVAL
TO EITHER SUCH COURT BROUGHT BY THE BANK. THE BORROWER WAIVES TRIAL BY JURY AND ANY OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED HEREUNDER AND AGREES NOT TO ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION OR VENUE. NOTHING CONTAINED
HEREIN SHALL AFFECT THE RIGHT OF THE BANK TO SERVE LEGAL PROCESS IN ANY MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF THE BANK TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION.

  
 IN WITNESS
WHEREOF, the Borrower has caused this Revolving Note to be duly executed as of the date first above written. 
  

					
	PRIVATEBANCORP, INC.
		
	 By:  
	 	 /S/    DENNIS L. KLAESER
  

	 	 	 Name:  
	 	 Dennis L. Klaeser
  

	 	 	 Title:
	 	 Chief Financial Officer
  

  

 A-3

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