THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Taylor Capital Group, Inc. (TAYC)

4/28/2006 Proxy Information

President Bruce Taylor is the brother of CEO/Chairman Jeffrey W. Taylor.

Management Loans and Transactions

Under Section 402 of the Sarbanes-Oxley Act, it is unlawful for any issuer to extend, renew or arrange for the extension of credit in the form of a personal loan to or for any director or executive officer of that issuer. This prohibition does not apply to loans that were made on or prior to July 30, 2002, or certain types of loans described in Section 402 that are:

• made available by the issuer in the ordinary course of the issuer’s consumer credit business;

• of a type generally made available by such issuer to the public;

• made by the issuer on market terms, or terms that are no more favorable that those offered by the issuer to the general public; and

• did not involve more than the normal risk of collectability or present other unfavorable features.

Section 402 also does not apply to loans by an insured depository institution if the loan is subject to the insider lending restrictions of Section 22(h) of the Federal Reserve Act and the Federal Reserve’s Regulation O.

Certain of our directors and officers, members of their immediate families, and firms and corporations with which they are associated, have had transactions with the Bank, including borrowings and investments in certificates of deposit. Our management believes that all such loans and investments have been, and will continue to be, made in the ordinary course of business of the Bank on substantially the same terms, including interest rates paid and collateral required, as those prevailing at the time for comparable transactions with unaffiliated persons, and do not involve more than the normal risk of collectibles or present other unfavorable features. Therefore, our management further believes that all of these transactions comply with Section 402 of the Sarbanes-Oxley Act or have been made pursuant to a valid exception from Section 402 of the Sarbanes-Oxley Act. As of December 31, 2005, the aggregate outstanding amount of all loans which individually exceed $60,000 to our officers and directors, members of their immediate families and the firms and corporations in which they have at least a 10% beneficial interest was approximately $9.4 million. In the past, the Board of Directors of the Bank was required to approve all loans to our executive officers and directors. In connection with our initial public offering, we revised our policy to require that any loans to our executive officers and directors, in addition to complying with Section 402 of the Sarbanes-Oxley Act, are subject to the approval of our Audit and Examining Committee, which is comprised solely of independent directors.

Insurance Provider

One of our company’s insurance brokers is Dann Insurance, which provides directors’ and officers’ liability and property and casualty insurance brokerage services. Scott Dann, brother-in-law of Jeffrey W. Taylor, beneficially owns approximately 33.3% of the capital stock of Dann Insurance. In 2005, our company paid approximately $1.2 million with respect to various insurance policies for which Dann Brothers, Inc. acted as a broker.

Legal Counsel

Two of the Company’s primary legal counsels are Katten Muchin Rosenman LLP and McDermott, Will & Emery. Melvin E. Pearl, a director of our company, was a founding partner with the law firm of Katten Muchin Rosenman LLP from 1974 until 2004, has retired and is now “Of Counsel” to that firm. Mark L. Yeager, a director of our company, is a partner with the law firm of McDermott, Will & Emery.