<PAGE>
                                                                    EXHIBIT 10-3

                                   AGREEMENT


         THIS AGREEMENT (this "Agreement") is entered into as of the 24th day of
January, 2005 by and between James A. Taylor, Sr. ("Executive") and The Banc
Corporation, a Delaware corporation (the "Parent").

                              W I T N E S S E T H:

         WHEREAS, Executive is employed by the Parent as Chairman of the Board
and Chief Executive Officer and as Chairman of the Board of The Bank, a wholly
owned subsidiary of the Parent (the "Bank"), pursuant to that Employment
Agreement dated January 1, 2002, attached hereto as Exhibit A (the "Contract");

         WHEREAS, a group of potential investors led by C. Stanley Bailey, an
experienced banking executive (the "New Management Team"), has approached the
Parent with a proposal that includes a new strategic plan for the Parent, a
significant equity infusion and the employment of the New Management Team (the
"Proposal");

         WHEREAS, the Proposal was presented to the Parent's Board of Directors
(the "Board") and the Board referred the Proposal to an independent special
committee (the "Committee") for consideration;

         WHEREAS, the Committee and the Board have employed the New Management
Team and adopted the Proposal, and the transactions contemplated by the Proposal
have been closed;

         WHEREAS, this has resulted in the Executive's losing all current
positions with the Parent and the Bank other than as expressly set forth below;

         WHEREAS, the Parties hereto agree that this entitles the Executive to
certain rights and benefits under the Contract;



                                       1
<PAGE>

         WHEREAS, the meaning of certain of the Contract's provisions for the
terms, conditions, extent and timing of certain of those rights and benefits
could be the subject of differing constructions and the Parties hereto seek to
resolve any ambiguities or potential disagreements; and

         WHEREAS, Executive and the Parent desire to fully settle, compromise
and resolve forever all claims, disputes, and potential claims related to the
Contract.

         NOW, THEREFORE, in consideration of the premises, the mutual promises
and covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto do
hereby agree as follows:

         1. RESIGNATION OF EMPLOYMENT. Other than as a director of the Parent
and as Non-executive Chairman of the Board of the Parent, as requested, the
Executive hereby resigns, effective immediately, all positions, whether as
director, officer, trustee or otherwise, that he currently holds with the
Parent, the Bank, and any companies, plans or trusts affiliated with or
sponsored by either.

         2. CONSULTANT. Executive agrees to employment as a Consultant to the
Parent for a period of two years; provided, however, the Parent agrees that it
will thereafter maintain the Executive in its employ to the extent, but only to
the extent, necessary for Executive to be able to exercise any stock options to
purchase stock of the Parent for the full term of such option.

         3. PAYMENT AND OTHER BENEFITS.

         (a) In lieu of any payments that Executive would be entitled pursuant
to Subsections 4(e)(i) and (ii) of the Contract, the Executive will receive the
following amounts on the following dates: $3,940,154.90 on January 24, 2005;
$3,152,123.92 on January 24, 2006; and $788,030.98 on January 24, 2007 (in each
case less any required withholding).

         (b) The Executive will continue to be entitled to the insurance
benefits as provided in Subsection 4(e)(iii) of the Contract; the restrictions
on his outstanding incentive awards shall lapse and shall become vested and
exercisable during the full term of such award (so long as Executive continues
to be employed by the Parent) as provided in Subsection 4(e)(iv) of the Contract
including



                                       2
<PAGE>

the stock in his ESOP account; Executive shall become 100% vested in all
deferred compensation arrangements as provided in Subsection 4(e)(vii) of the
Contract; and the Parent shall transfer to Executive its one-half interest in
the "Key Man" life insurance policy that it has maintained on the Executive and
shall maintain such policy for five years as provided in subsection 4(e)(v) of
the Contract, the cost of which is included in paragraph 4(a) above in the
amount to be paid to the Executive (so that there shall be no double payment).

         (c) The payments and benefits for which provision is made in
subparagraphs (a) and (b) above are absolute, subject to no contingencies and
will survive the Executive's death or disability.

         4. COVENANTS OF EXECUTIVE.

         (a) General. Executive agrees that for so long as he has any rights or
obligations under this Agreement, he shall continue to conduct himself in a
professional manner that is supportive of the business of the Parent and the
Bank. Without limiting the generality of the foregoing, Executive shall provide
reasonable cooperation in communicating with investors and employees regarding
the transition to the New Management Team.

         (b) Confidential Information. Without limiting the foregoing, Executive
shall not, at any time use or disclose any Confidential Information of the
Parent or the Bank, except in fulfillment of obligations hereunder, for so long
as the pertinent information or data remain Confidential Information, whether or
not the Confidential Information is in written or tangible form. "Confidential
Information" shall mean any information, including but not limited to technical
or non-technical data, a formula, a pattern, a compilation, a program, a device,
a method, a technique, a drawing, a process, financial data, financial plans,
product plans, information on customers, or a list of actual or potential
customers or suppliers, which: (i) derives economic value, actual or potential,
from not being generally known to, and not being readily ascertainable by proper
means by, other persons who can obtain economic value from its disclosure or
use, and (ii) is the subject of efforts that are reasonable under the
circumstances to maintain its secrecy.

         (c) SEC Reporting/Insider Trading Compliance. Executive will cooperate
with the Parent by providing information with respect to all reports required to
be filed by the Parent with the Securities and Exchange Commission as they
relate to required information with respect to Executive. Further,



                                       3
<PAGE>

Executive will remain in compliance with the terms of the Parent's insider
trading program, as such program is applicable to him following the date hereof,
with respect to purchases and sales of the Parent's stock.

         (d) Noncompetition.


                  (i) So long as Executive is receiving any benefits under this
         Agreement, or is providing services to the Parent or the Bank, whether
         as a director, consultant, employee or otherwise, except as
         contemplated by the proviso in Section 2 of this Agreement, then:
         Executive agrees that he shall not, individually or as an employee,
         consultant, partner, officer, director or shareholder or in any other
         capacity whatsoever of or for any person, firm, partnership, or
         corporation other than the Parent, the Bank or affiliates of either,
         work as an employee or consultant of a financial institution whose
         deposits are insured by the Federal Deposit Insurance Corporation
         ("FDIC"), or own, manage, operate, control or participate in the
         ownership (other than passive ownership of five percent or less of the
         equity interest of a publicly traded entity), management, operation or
         control of, any business headquartered in Alabama or Florida that is in
         competition with or may compete with the then-current business of the
         Parent, the Bank or affiliates of either wherever located.

                  (ii) Anything to the contrary in the immediately preceding
         clause (i) notwithstanding, the Parties hereto acknowledge that the
         Executive's son, James A. Taylor, Jr., is contemplating establishing a
         de novo bank or banks in the following counties in Florida: Bay,
         Okaloosa, Escambia, Walton and Leon, and that the Executive may make
         and maintain up to a passive ten percent equity interest in any such
         bank in which his son acts in an executive capacity without Executive
         having to relinquish his positions as a member of the Parent's Board
         and as its Non-executive Chairman.

                  (iii) Executive agrees, further, that he will not, and will
         not cause or influence any other party to, file an objection or appeal
         with any governmental




                                       4
<PAGE>

         regulatory agency in an attempt to hinder the entry by the Parent or
         the Bank or affiliates of either into any new market whether by
         branching, establishment of a de novo institution, or otherwise.

         (e) Nonsolicitation. Executive agrees that so long as he has any rights
or obligations under this Agreement and for one year thereafter, he shall not
either directly or indirectly solicit, induce, recruit or encourage any of the
Parent's employees or consultants to terminate their relationship with the
Parent, or attempt to solicit, induce, recruit, encourage or take away employees
or consultants of the Parent, either for himself or for any other person or
entity. Further, Executive agrees that he shall not at any time use any
Confidential Information of the Parent to negatively influence any of the
Parent's clients or customers from purchasing Parent or Bank products or
services or to solicit or influence or attempt to influence any client, customer
or other person either directly or indirectly, to direct his or its purchase of
products and/or services away from the Parent or the Bank to any person, firm,
corporation, institution or other entity in competition with the business of the
Parent or the Bank.

         (f) Standstill Agreement. Without the prior written consent of the
Parent, Executive shall not sell, offer to sell, or agree to sell, directly or
indirectly, any shares of securities of the Parent owned or controlled by
Executive for one year.

         5. BREACH OF THIS AGREEMENT. Executive acknowledges that upon material
breach of any provision of this Agreement, the Parent and the Bank may sustain
irreparable harm from such breach, and, therefore, Executive agrees that in
addition to any other remedies which the Parent or the Bank may have for any
breach of this Agreement or otherwise, the Parent may be entitled to obtain
equitable relief including specific performance, injunctions and restraining
Executive from committing or continuing any such violation of this Agreement.

         6. APPLICABLE LAW. This Agreement and the rights and obligations of the
parties hereunder shall be construed, interpreted and enforced in accordance
with, and governed by the laws of, the State of Alabama, applied without giving
effect to any conflict-of-laws principles.



                                       5
<PAGE>

         7. CONSIDERATION ACKNOWLEDGMENT. Executive understands and acknowledges
that this Agreement provides Executive with consideration in addition to
anything of value to which Executive was already entitled.

         8. BINDING EFFECT. This Agreement shall inure to the benefit and be
binding upon the Parties and their respective heirs, representatives, successors
and assigns.

         9. SEVERABILITY AND SAVINGS PROVISION. In the event that any one or
more of the provisions contained herein shall for any reason be held to be
unenforceable in any respect under the law or any state or of the United States
of America, such unenforceability shall not affect any other provision of this
Agreement, but, with respect only to that jurisdiction holding the provision to
be unenforceable, this Agreement shall then be construed as if such
unenforceable provision or provisions had never been contained herein.

         10. ENTIRE AGREEMENT. This Agreement constitutes the complete
understanding between Executive, the Parent and the Bank and supersedes any and
all prior or contemporaneous agreements, promises, or inducements, whether oral
or written, concerning these subject matters (including without limitation any
existing employment agreement).

         11. NONDEFAMATION. Executive agrees that he will not slander or libel
the Parent, the Bank or the affiliates of either, or any of their directors,
officers or employees concerning either their conduct regarding his separation
or their conduct at any time during his period of employment with the Parent,
the Bank or the affiliates of either.




                                       6
<PAGE>

         IN WITNESS WHEREOF, the Parent has caused this Agreement to be executed
in its corporate name by its duly authorized officer, and Executive has hereunto
set his hand, and the parties hereto have caused this Agreement to be dated as
of the date first above written.

                                   THE BANC CORPORATION


                                   By:  /s/ Michael E. Stephens
                                      ------------------------------------------
                                                 Michael E. Stephens
                                       Chairman of the Compensation Committee
                                    of The Banc Corporation's Board of Directors



                                             /s/ James A. Taylor (L.S.)
                                   ---------------------------------------------
                                                     EXECUTIVE


                                   Executed by Executive on the 24th day of
                                   January, 2005.


                                               /s/ Robert E. Garner
                                   ---------------------------------------------
                                                      WITNESS




                                       7