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                                                                     EXHIBIT 2.2

                             STOCK OPTION AGREEMENT

       THIS STOCK OPTION AGREEMENT (this "Agreement") is made and entered into
as of June 26, 2001, by and between Park Meridian Financial Corporation, a North
Carolina corporation ("Issuer"), and Regions Financial Corporation, a Delaware
corporation ("Grantee").

       WHEREAS, Grantee and Issuer have entered into that certain Agreement and
Plan of Merger, dated as of June 26, 2001 (the "Merger Agreement"), providing
for, among other things, the merger of Issuer with and into Grantee, with
Grantee as the surviving entity; and

       WHEREAS, as a condition and inducement to Grantee's execution of the
Merger Agreement, Grantee has required that Issuer agree, and Issuer has agreed,
to grant Grantee the Option (as defined below);

       Now, THEREFORE, in consideration of the respective representations,
warranties, covenants and agreements set forth herein and in the Merger
Agreement, and intending to be legally bound hereby, Issuer and Grantee agree as
follows:

       1. Defined Terms. Capitalized terms which are used but not defined
herein shall have the meanings ascribed to such terms in the Merger Agreement.

       2. Grant of Option. Subject to the terms and conditions set forth herein,
Issuer hereby grants to Grantee an irrevocable option (the "Option") to purchase
up to 556,816 shares (as adjusted as set forth herein, the "Option Shares,"
which shall include the Option Shares before and after any transfer of such
Option Shares) of common stock, $.01 par value per share ("Issuer Common
Stock"), of Issuer at a purchase price per Option Share (subject to adjustment
as set forth herein, the "Purchase Price") equal to $13.50; provided, however,
that in no event shall the number of shares of Issuer Common Stock for which
this Option is exercisable exceed the lesser of (i) 19.9% of the Issuer's issued
and outstanding shares of Issuer Common Stock without giving effect to any
shares subject to or issued pursuant to the Option and (ii) that minimum number
of shares of Issuer Common Stock which when aggregated with any other shares of
Issuer Common Stock beneficially owned by Grantee or any Affiliate thereof would
cause the provisions of any Takeover Laws of the NCBCA to be applicable to the
Merger.

       3. Exercise of Option.

              (a) Provided that (i) Grantee or Holder (as hereinafter defined),
as applicable, shall not be in material breach of its agreements or covenants
contained in this Agreement or the Merger Agreement, and (ii) no preliminary or
permanent injunction or other order against the delivery of shares covered by
the Option issued by any court of competent jurisdiction in the United States
shall be in effect, Holder may exercise the Option, in whole or in part, at any
time and from time to time following the occurrence of a Purchase Event and
prior to the termination of the Option. The Option shall terminate and be of no
further force and effect upon the earliest


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to occur of (A) the Effective Time, (B) termination of the Merger Agreement in
accordance with the terms thereof prior to the occurrence of a Purchase Event or
a Preliminary Purchase Event (other than a termination of the Merger Agreement
by Grantee pursuant to (i) Section 10.1(b) thereof (but only if such termination
was a result of a willful breach by Issuer) or (ii) Section 10.1(c) thereof
(each a "Default Termination")), (C) 12 months after a Default Termination, and
(D) 12 months after any termination of the Merger Agreement following the
occurrence of a Purchase Event or a Preliminary Purchase Event. Any purchase of
shares upon exercise of the Option shall be subject to compliance with
applicable law, including, without limitation, the Bank Holding Company Act of
1956, as amended (the "BHC Act"). The term "Holder" shall mean the holder or
holders of the Option from time to time, which initially is the Grantee. The
rights set forth in Section 8 shall terminate when the right to exercise the
Option terminates (other than as a result of a complete exercise of the Option)
as set forth herein.

              (b) As used herein, a "Purchase Event" means any of the following
events subsequent to the date of this Agreement:

                  (i) without Grantee's prior written consent, Issuer shall have
       authorized, recommended, publicly proposed or publicly announced an
       intention to authorize, recommend or propose, or entered into an
       agreement with any person (other than Grantee or any Subsidiary of
       Grantee) to effect an Acquisition Transaction (as defined below). As used
       herein, the term Acquisition Transaction shall mean (A) a merger,
       consolidation or similar transaction involving Issuer or any of its
       Subsidiaries (other than transactions solely between Issuer's
       Subsidiaries and transactions involving Issuer or any Subsidiary in which
       the voting securities of Issuer outstanding immediately prior thereto
       continue to represent (by either remaining outstanding or being converted
       into securities of the surviving entity or the parent thereof) at least
       75% of the combined voting power of the voting securities of the Issuer
       or the surviving entity or the parent thereof outstanding immediately
       after the consummation of the transaction), (B) except as permitted
       pursuant to Section 7.1 of the Merger Agreement, the disposition, by
       sale, lease, exchange or otherwise, of Assets of Issuer or any of its
       Subsidiaries representing in either case 20% or more of the consolidated
       assets of Issuer and its Subsidiaries, or (C) the issuance, sale or other
       disposition of (including by way of merger, consolidation, share exchange
       or any similar transaction) securities representing 20% or more of the
       voting power of Issuer or any of its Subsidiaries (any of the foregoing,
       an "Acquisition Transaction"); or

                  (ii) any person (other than Grantee or any Subsidiary of
       Grantee) shall have acquired beneficial ownership (as such term is
       defined in Rule 13d-3 promulgated under the Securities Exchange Act of
       1934, as amended (the "Exchange Act"), of or the right to acquire
       beneficial ownership of, or any "group" (as such term is defined under
       the Exchange Act), other than a group of which Grantee or any of its
       Subsidiaries is a member, shall have been formed which beneficially owns
       or has the right to acquire beneficial ownership of, 20% or more of the
       then-outstanding shares of Issuer Common Stock.

              (c) As used herein, a "Preliminary Purchase Event" means any of
 the following events:

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                  (i) any person (other than Grantee or any Subsidiary of
       Grantee) shall have commenced (as such term is defined in Rule 14d-2
       under the Exchange Act), or shall have filed a registration statement
       under the Securities Act of 1933, as amended (the "Securities Act") with
       respect to, a tender offer or exchange offer to purchase any shares of
       Issuer Common Stock such that, upon consummation of such offer, such
       person would own or control 15% or more of the then-outstanding shares of
       Issuer Common Stock (such an offer being referred to herein as a "Tender
       Offer" or an "Exchange Offer," respectively); or

                  (ii) the holders of Issuer Common Stock shall not have
       approved the Merger Agreement at the meeting of such shareholders held
       for the purpose of voting on the Merger Agreement, such meeting shall not
       have been held or shall have been canceled prior to termination of the
       Merger Agreement, or Issuer's Board of Directors shall have withdrawn or
       modified in a manner adverse to Grantee the recommendation of Issuer's
       Board of Directors with respect to the Merger Agreement, in each case
       after it shall have been publicly announced that any person (other than
       Grantee or any Subsidiary of Grantee) shall have (A) made a proposal to
       engage in an Acquisition Transaction, (B) commenced a Tender Offer or
       filed a registration statement under the Securities Act with respect to
       an Exchange Offer, or (C) filed an application (or given a notice),
       whether in draft or final form, under any federal or state statute or
       regulation (including a notice filed under the HSR Act and an application
       or notice filed under the BHC Act, the Bank Merger Act, or the Change in
       Bank Control Act of 1978) seeking the Consent to an Acquisition
       Transaction from any federal or state governmental or regulatory
       authority or agency.

As used in this Agreement, "person" shall have the meaning specified in Sections
3(a)(9) and 13(d)(3) of the Exchange Act.

              (d) In the event Holder wishes to exercise the Option, it shall
send to Issuer a written notice (the date of which being herein referred to as
the "Notice Date") specifying (i) the total number of Option Shares it intends
to purchase pursuant to such exercise and (ii) a place and date not earlier than
three business days nor later than 30 business days from the Notice Date for the
closing (the "Closing") of such purchase (the "Closing Date"). If prior Consent
of any governmental or regulatory agency or authority is required in connection
with such purchase, Issuer shall cooperate with Holder in the filing of the
required notice or application for such Consent and the obtaining of such
Consent and the Closing shall occur immediately following receipt of such
Consents (and expiration of any mandatory waiting periods).

              (e)  Notwithstanding any other provision of this Agreement to the
contrary, in no event shall:

                  (i) Holder's (taking into account all other Holders) Total
       Profit (as defined below) exceed $2.0 million and, if it otherwise would
       exceed such amount, Holder, at its sole election, shall either (A) reduce
       the number of shares of Issuer Common Stock subject to the Option, (B)
       deliver to Issuer for cancellation without consideration Option Shares
       previously purchased by Holder, (C) pay cash to Issuer, or (D) any
       combination of the


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       foregoing, so that Holder's actually realized Total Profit (together
       with the Total Profit realized by all other Holders) shall not exceed
       $2.0 million after taking into account the foregoing actions; and

                  (ii) the Option be exercised for a number of shares of Issuer
       Common Stock as would, as of the date of exercise, result in Holder's
       (taking into account all other Holders) Notional Total Profit (as defined
       below) of more than $2.0 million; provided, that nothing in this clause
       (ii) shall restrict any exercise of the Option permitted hereby on any
       subsequent date.

As used in this Agreement, the term "Total Profit" shall mean the aggregate sum
(prior to the payment of taxes) of the following: (i) the amount received by
Holder pursuant to Issuer's repurchase of the Option (or any portion thereof)
pursuant to Section 8; (ii) (x) the amount received by Holder pursuant to
Issuer's repurchase of Option Shares pursuant to Section 8, less (y) Holder's
purchase price for such Option Shares; (iii) (x) the net cash amounts received
by Holder pursuant to the sale of Option Shares (or any other securities into
which such Option Shares shall be converted or exchanged) to any unaffiliated
person, less (y) Holder's purchase price of such Option Shares; and (iv) any
amounts received by Grantee on the transfer of the Option (or any portion
thereof) to any unaffiliated person.

As used in this Agreement, the term "Notional Total Profit" with respect to any
number of shares of Issuer Common Stock as to which Holder may propose to
exercise the Option shall be the Total Profit determined as of the date of such
proposed exercise, assuming that the Option were exercised on such date for such
number of shares and assuming that such shares, together with all other Option
Shares held by Holder and its affiliates as of such date, were sold for cash at
the closing sale price per share of Issuer Common Stock as quoted on the Nasdaq
National Market (or, if Issuer Common Stock is not then quoted on the Nasdaq
National Market, the highest bid price per share as quoted on the principal
trading market or securities exchange on which such shares are traded as
reported by a recognized source chosen by Holder) as of the close of business on
the preceding trading day (less customary brokerage commissions).

              The provisions of this Section 3(e) shall apply to any Substitute
Option (as defined below).

       4. Payment and Delivery of Certificates.

              (a) On each Closing Date, Holder shall (i) pay to Issuer, in
immediately available funds by wire transfer to a bank account designated by
Issuer, an amount equal to the Purchase Price multiplied by the number of Option
Shares to be purchased on such Closing Date, and (ii) present and surrender this
Agreement to the Issuer at the address of the Issuer specified in Section 13(f)
hereof.

              (b) At each Closing, simultaneously with the delivery of
immediately available funds and surrender of this Agreement as provided in
Section 4(a), (i) Issuer shall deliver to Holder (A) a certificate or
certificates representing the Option Shares to be purchased at such


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Closing, which Option Shares shall be free and clear of all liens, claims,
charges and encumbrances of any kind whatsoever and subject to no pre-emptive
rights, and (B) if the Option is exercised in part only, an executed new
agreement with the same terms as this Agreement evidencing the right to purchase
the balance of the shares of Issuer Common Stock purchasable hereunder, and (ii)
Holder shall deliver to Issuer a letter agreeing that Holder shall not offer to
sell or otherwise dispose of such Option Shares in violation of applicable
federal and state law or of the provisions of this Agreement.

              (c) In addition to any other legend that is required by applicable
law, certificates for the Option Shares delivered at each Closing shall be
endorsed with a restrictive legend which shall read substantially as follows:

       THE TRANSFER OF THE STOCK REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO
       RESTRICTIONS ARISING UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
       PURSUANT TO THE TERMS OF A STOCK OPTION AGREEMENT DATED AS OF JUNE 26,
       2001. A COPY OF SUCH AGREEMENT WILL BE PROVIDED TO THE HOLDER HEREOF
       WITHOUT CHARGE UPON RECEIPT BY THE ISSUER OF A WRITTEN REQUEST THEREFOR.

It is understood and agreed that: (i) the references in the above legend to
resale restrictions of the Securities Act shall be removed by delivery of
substitute certificate(s) without such reference if Holder shall have delivered
to Issuer a copy of a letter from the staff of the SEC, or an opinion of counsel
in form and substance reasonably satisfactory to Issuer and its counsel, to the
effect that such legend is not required for purposes of the Securities Act; (ii)
the references in the above legend to the provisions of this Agreement shall be
removed by delivery of substitute certificate(s) without such reference if the
shares have been sold or transferred in compliance with the provisions of this
Agreement and under circumstances that do not require the retention of such
reference; and (iii) the legend shall be removed in its entirety if the
conditions in the preceding clauses (i) and (ii) are both satisfied.

       5. Representations and Warranties of Issuer. Issuer hereby represents
and warrants to Grantee as follows:

         (a) Issuer has all requisite corporate power and authority to enter
       into this Agreement and, subject to any approvals referred to herein, to
       consummate the transactions contemplated hereby. The execution and
       delivery of this Agreement and the consummation of the transactions
       contemplated hereby have been duly authorized by all necessary corporate
       action on the part of Issuer. This Agreement has been duly executed and
       delivered by Issuer.

         (b) Issuer has taken all necessary corporate action to authorize and
       reserve and to permit it to issue, and, at all times from the date hereof
       until the obligation to deliver Issuer Common Stock upon the exercise of
       the Option terminates, will have reserved for issuance, upon exercise of
       the Option, the number of shares of Issuer Common Stock necessary for


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       Holder to exercise the Option, and Issuer will take all necessary
       corporate action to authorize and reserve for issuance all additional
       shares of Issuer Common Stock or other securities which may be issued
       pursuant to Section 7 upon exercise of the Option. The shares of Issuer
       Common Stock to be issued upon due exercise of the Option, including all
       additional shares of Issuer Common Stock or other securities which may be
       issuable pursuant to Section 7, upon issuance pursuant hereto, shall be
       duly and validly issued, fully paid, and nonassessable, and shall be
       delivered free and clear of all liens, claims, charges, and encumbrances
       of any kind or nature whatsoever, including any preemptive rights of any
       shareholder of Issuer.

       6. Representations and Warranties of Grantee. Grantee hereby represents
and warrants to Issuer that:

         (a) Grantee has all requisite corporate power and authority to enter
       into this Agreement and, subject to any approvals or consents referred to
       herein, to consummate the transactions contemplated hereby. The execution
       and delivery of this Agreement and the consummation of the transactions
       contemplated hereby have been duly authorized by all necessary corporate
       action on the part of Grantee. This Agreement has been duly executed and
       delivered by Grantee.

         (b) This Option is not being, and any Option Shares or other securities
       acquired by Grantee upon exercise of the Option will not be, acquired
       with a view to the public distribution thereof and will not be
       transferred or otherwise disposed of except in a transaction registered
       or exempt from registration under the Securities Laws.

       7. Adjustment upon Changes in Capitalization, etc.

              (a) In the event of any change in Issuer Common Stock by reason of
a stock dividend, stock split, split-up, recapitalization, combination, exchange
of shares or similar transaction, the type and number of shares or securities
subject to the Option, and the Purchase Price therefor, shall be adjusted
appropriately, and proper provision shall be made in the agreements governing
such transaction, if any, so that Holder shall receive, upon exercise of the
Option, the number and class of shares or other securities or property that
Holder would have received in respect of Issuer Common Stock if the Option had
been exercised immediately prior to such event, or the record date therefor, as
applicable. If any additional shares of Issuer Common Stock are issued after the
date of this Agreement (other than pursuant to an event described in the first
sentence of this Section 7(a) or pursuant to this Option), the number of shares
of Issuer Common Stock subject to the Option shall be adjusted so that, after
such issuance, it, together with any shares of Issuer Common Stock previously
issued pursuant hereto, shall not exceed the lesser of (i) 19.9% of the number
of shares of Issuer Common Stock then issued and outstanding, without giving
effect to any shares subject to or issued pursuant to the Option and (ii) that
minimum number of shares of Issuer Common Stock which when aggregated with any
other shares of Issuer Common Stock beneficially owned by Grantee or any
Affiliate thereof would cause the provisions of any Takeover Laws of the NCBCA
to be applicable to the Merger.


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              (b) In the event that Issuer shall enter in an agreement: (i) to
consolidate with or merge into any person, other than Grantee or one of its
Subsidiaries, and shall not be the continuing or surviving corporation of such
consolidation or merger; (ii) to permit any person, other than Grantee or one of
its Subsidiaries, to merge into Issuer and Issuer shall be the continuing or
surviving corporation, but, in connection with such merger, the then outstanding
shares of Issuer Common Stock shall be changed into or exchanged for stock or
other securities of Issuer or any other person or cash or any other property or
the outstanding shares of Issuer Common Stock immediately prior to such merger
shall after such merger represent less than 50% of the outstanding shares and
share equivalents of the merged company; or (iii) to sell or otherwise transfer
all or substantially all of its Assets to any person, other than Grantee or one
of its Subsidiaries, then, and in each such case, the agreement governing such
transaction shall make proper provisions so that the Option shall, upon the
consummation of any such transaction and upon the terms and conditions set forth
herein, be converted into, or exchanged for, an option (the "Substitute
Option"), at the election of Grantee, of either (x) the Acquiring Corporation
(as defined below) or (y) any person that controls the Acquiring Corporation (in
each case, such person being referred to as the "Substitute Option Issuer").

              (c) The Substitute Option shall have the same terms as the Option,
provided that, if the terms of the Substitute Option cannot, for legal reasons,
be the same as the Option, such terms shall be as similar as possible and in no
event less advantageous to Grantee. The Substitute Option Issuer shall also
enter into an agreement with the then-holder or holders of the Substitute Option
in substantially the same form as this Agreement, which shall be applicable to
the Substitute Option.

              (d) The Substitute Option shall be exercisable for such number of
shares of the Substitute Common Stock (as hereinafter defined) as is equal to
the Assigned Value (as hereinafter defined) multiplied by the number of shares
of the Issuer Common Stock for which the Option was theretofore exercisable,
divided by the Average Price (as hereinafter defined). The exercise price of the
Substitute Option per share of the Substitute Common Stock (the "Substitute
Purchase Price") shall then be equal to the Purchase Price multiplied by a
fraction in which the numerator is the number of shares of the Issuer Common
Stock for which the Option was theretofore exercisable and the denominator is
the number of shares for which the Substitute Option is exercisable.

              (e) The following terms have the meanings indicated:

                  (i) "Acquiring Corporation" shall mean (x) the continuing or
       surviving corporation of a consolidation or merger with Issuer (if other
       than Issuer), (y) Issuer in a merger in which Issuer is the continuing or
       surviving person, and (z) the transferee of all or any substantial part
       of the Issuer's assets (or the assets of its Subsidiaries).

                  (ii) "Substitute Common Stock" shall mean the common stock
       issued by the Substitute Option Issuer upon exercise of the Substitute
       Option.

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                  (iii) "Assigned Value" shall mean the highest of (x) the price
       per share of the Issuer Common Stock at which a Tender Offer or Exchange
       Offer therefor has been made by any person (other than Grantee), (y) the
       price per share of the Issuer Common Stock to be paid by any person
       (other than the Grantee) pursuant to an agreement with Issuer, and (z)
       the highest last sale price per share of Issuer Common Stock quoted on
       the Nasdaq NMS (or if Issuer Common Stock is not quoted on the Nasdaq
       NMS, the highest bid price per share on any day as quoted on the
       principal trading market or securities exchange on which such shares are
       traded as reported by a recognized source chosen by Grantee) within the
       six-month period immediately preceding the agreement; provided, that in
       the event of a sale of less than all of Issuer's assets, the Assigned
       Value shall be the sum of the price paid in such sale for such assets and
       the current market value of the remaining assets of Issuer as determined
       by a nationally recognized investment banking firm selected by Grantee
       (or by a majority in interest of the Grantees if there shall be more than
       one Grantee (a "Grantee Majority")) and reasonably acceptable to Issuer,
       divided by the number of shares of the Issuer Common Stock outstanding at
       the time of such sale. In the event that an exchange offer is made for
       the Issuer Common Stock or an agreement is entered into for a merger or
       consolidation involving consideration other than cash, the value of the
       securities or other property issuable or deliverable in exchange for the
       Issuer Common Stock shall be determined by a nationally recognized
       investment banking firm selected by Grantee and reasonably acceptable to
       Issuer (or if applicable, Acquiring Corporation). (If there shall be more
       than one Grantee, any such selection shall be made by a Grantee
       Majority.)

                  (iv) "Average Price" shall mean the average closing price of a
       share of the Substitute Common Stock for the one year immediately
       preceding the consolidation, merger or sale in question, but in no event
       higher than the last sale price of the shares of the Substitute Common
       Stock on the day preceding such consolidation, merger or sale; provided
       that if Issuer is the issuer of the Substitute Option, the Average Price
       shall be computed with respect to a share of common stock issued by
       Issuer, the person merging into Issuer or by any company which controls
       or is controlled by such merger person, as Grantee may elect.

              (f) In no event pursuant to any of the foregoing paragraphs shall
the Substitute Option be exercisable for more than 19.9% of the aggregate of the
shares of the Substitute Common Stock outstanding prior to exercise of the
Substitute Option. In the event that the Substitute Option would be exercisable
for more than 19.9% of the aggregate of the shares of Substitute Common Stock
but for this clause (f), the Substitute Option Issuer shall make a cash payment
to Grantee equal to the excess of (i) the value of the Substitute Option without
giving effect to the limitation in this clause (f) over (ii) the value of the
Substitute Option after giving effect to the limitation in this clause (f). This
difference in value shall be determined by a nationally recognized investment
banking firm selected by Grantee (or a Grantee Majority) and reasonably
acceptable to the Acquiring Corporation.

              (g) Issuer shall not enter into any transaction described in
subsection (b) of this Section 7 unless the Acquiring Corporation and any person
that controls the Acquiring Corporation assume in writing all the obligations of
Issuer hereunder and take all other actions


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that may be necessary so that the provisions of this Section 7 are given full
force and effect (including, without limitation, any action that may be
necessary so that the shares of Substitute Common Stock are in no way
distinguishable from or have lesser economic value than other shares of common
stock issued by the Substitute Option Issuer).

              (h) The provisions of Sections 8, 9, 10, and 11 shall apply, with
appropriate adjustments, to any securities for which the Option becomes
exercisable pursuant to this Section 7 and, as applicable, references in such
sections to "Issuer," "Option," "Purchase Price" and "Issuer Common Stock" shall
be deemed to be references to "Substitute Option Issuer," "Substitute Option,"
"Substitute Purchase Price" and "Substitute Common Stock," respectively.

              (i) The fees and expenses of any nationally recognized investment
banking firm retained by Grantee pursuant to Section 7(e)(iii) or Section 7(f)
shall be paid by Grantee.

       8. Repurchase at the Option of Holder.

              (a) Subject to Section 3(e) and to the last sentence of Section
3(a), at the request of Holder at any time commencing upon the first occurrence
of a Repurchase Event (as defined in Section 8(d)) and ending 18 months
immediately thereafter, Issuer shall repurchase from Holder the Option and all
shares of Issuer Common Stock purchased by Holder pursuant hereto with respect
to which Holder then has beneficial ownership. The date on which Holder
exercises its rights under this Section 8 is referred to as the "Request Date."
Such repurchase shall be at an aggregate price (the "Section 8 Repurchase
Consideration") equal to the sum of:

                  (i) the aggregate Purchase Price paid by Holder for any shares
       of Issuer Common Stock acquired by Holder pursuant to the Option with
       respect to which Holder then has beneficial ownership;

                  (ii) the excess, if any, of (x) the Applicable Price (as
       defined below) for each share of Issuer Common Stock over (y) the
       Purchase Price (subject to adjustment pursuant to Section 7), multiplied
       by the number of shares of Issuer Common Stock with respect to which the
       Option has not been exercised; and

                  (iii) the excess, if any, of the Applicable Price over the
       Purchase Price (subject to adjustment pursuant to Section 7) paid (or, in
       the case of Option Shares with respect to which the Option has been
       exercised but the Closing Date has not occurred, payable) by Holder for
       each share of Issuer Common Stock with respect to which the Option has
       been exercised and with respect to which Holder then has beneficial
       ownership, multiplied by the number of such shares.

              (b) If Holder exercises its rights under this Section 8, Issuer
shall, within ten business days after the Request Date, pay the Section 8
Repurchase Consideration to Holder in immediately available funds, and
contemporaneously with such payment Holder shall surrender to Issuer the Option
and the certificates evidencing the shares of Issuer Common Stock purchased
thereunder with respect to which Holder then has beneficial ownership, and
Holder shall warrant


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that it has sole record and beneficial ownership of such shares and that the
same are then free and clear of all liens, claims, charges and encumbrances of
any kind whatsoever. Notwithstanding the foregoing, to the extent that prior
notification to or Consent of any governmental or regulatory agency or authority
is required in connection with the payment of all or any portion of the Section
8 Repurchase Consideration, Holder shall have the ongoing option to revoke its
request for repurchase pursuant to Section 8, in whole or in part, or to require
that Issuer deliver from time to time that portion of the Section 8 Repurchase
Consideration that it is not then so prohibited from paying and promptly file
the required notice or application for Consent and expeditiously process the
same (and each party shall cooperate with the other in the filing of any such
notice or application and the obtaining of any such Consent). If any
governmental or regulatory agency or authority disapproves of any part of
Issuer's proposed repurchase pursuant to this Section 8, Issuer shall promptly
give notice of such fact to Holder. If any governmental or regulatory agency or
authority prohibits the repurchase in part but not in whole, then Holder shall
have the right (i) to revoke the repurchase request or (ii) to the extent
permitted by such agency or authority, determine whether the repurchase should
apply to the Option and/or Option Shares and to what extent to each, and Holder
shall thereupon have the right to exercise the Option as to the number of Option
Shares for which the Option was exercisable at the Request Date less the sum of
the number of shares covered by the Option in respect of which payment has been
made pursuant to Section 8(a)(ii) and the number of shares covered by the
portion of the Option (if any) that has been repurchased. Holder shall notify
Issuer of its determination under the preceding sentence within five business
days of receipt of notice of disapproval of the repurchase.

                    Notwithstanding anything herein to the contrary, all of
Holder's rights under this Section 8 shall terminate on the date of termination
of this Option pursuant to Section 3(a).

              (c) For purposes of this Agreement, the "Applicable Price" means
the highest of (i) the highest price per share of Issuer Common Stock paid for
any such share by the person or groups described in Section 8(d)(i), (ii) the
price per share of Issuer Common Stock received by holders of Issuer Common
Stock in connection with any merger or other business combination transaction
described in Section 7(b)(i), 7(b)(ii) or 7(b)(iii), or (iii) the highest last
sale price per share of Issuer Common Stock quoted on the Nasdaq NMS (or if
Issuer Common Stock is not quoted on the Nasdaq NMS, the highest bid price per
share as quoted on the principal trading market or securities exchange on which
such shares are traded as reported by a recognized source chosen by Holder)
during the 60 business days preceding the Request Date; provided, however, that
in the event of a sale of less than all of Issuer's Assets, the Applicable Price
shall be the sum of the price paid in such sale for such assets and the current
market value of the remaining assets of Issuer as determined by an independent
nationally recognized investment banking firm selected by Holder (and the fees
and expenses of which shall be paid by Holder) and reasonably acceptable to
Issuer (which determination shall be conclusive for all purposes of this
Agreement), divided by the number of shares of the Issuer Common Stock
outstanding at the time of such sale. If the consideration to be offered, paid
or received pursuant to either of the foregoing clauses (i) or (ii) shall be
other than in cash, the value of such consideration shall be determined in good
faith by an independent nationally recognized investment banking firm selected
by


                                      -10-

<PAGE>   11


Holder and reasonably acceptable to Issuer, which determination shall be
conclusive for all purposes of this Agreement.

              (d) As used herein, a "Repurchase Event" shall occur if (i) any
person (other than Grantee or any subsidiary of Grantee shall have acquired
beneficial ownership (as such term is defined in Rule 13d-3 promulgated under
the Exchange Act), or the right to acquire beneficial ownership, or any "group"
(as such term is defined under the Exchange Act) shall have been formed which
beneficially owns or has the right to acquire beneficial ownership of 50% or
more of the then-outstanding shares of Issuer Common Stock, or (ii) any of the
transactions described in Section 7(b)(i), 7(b)(ii), or 7(b)(iii) shall be
consummated.

       9. Registration Rights.

              (a) Issuer shall, subject to the conditions of subparagraph (c)
below, if requested by any Holder, including Grantee and any permitted
transferee ("Selling Holder"), as expeditiously as possible prepare and file a
registration statement under the Securities Laws if necessary in order to permit
the sale or other disposition of any or all shares of Issuer Common Stock or
other securities that have been acquired by or are issuable to Selling Holder
upon exercise of the Option in accordance with the intended method of sale or
other disposition stated by Holder in such request (it being understood and
agreed that any such sale or other disposition shall be effected on a widely
distributed basis so that, upon consummation thereof, no purchaser or transferee
shall beneficially own more than 5% of the shares of Issuer Common Stock then
outstanding), including, without limitation, a "shelf" registration statement
under Rule 415 under the Securities Act or any successor provision, and Issuer
shall use its best efforts to qualify such shares or other securities for sale
under any applicable state securities laws. Each such Holder shall provide all
information reasonably requested by Issuer for inclusion in any registration
statement to be filed hereunder.

              (b) If Issuer at any time after the exercise of the Option, but
prior to the termination of the Option, proposes to register any shares of
Issuer Common Stock under the Securities Laws in connection with an underwritten
public offering of such Issuer Common Stock, Issuer will promptly give written
notice to Holder of its intention to do so and, upon the written request of
Holder given within 30 days after receipt of any such notice (which request
shall specify the number of shares of Issuer Common Stock intended to be
included in such underwritten public offering by Selling Holder), Issuer will
use all reasonable efforts to cause all such shares, the holders of which shall
have requested participation in such registration, to be so registered and
included in such underwritten public offering; provided, that Issuer may elect
to not cause any such shares to be so registered (i) if the underwriters in good
faith determine that the inclusion of such shares would interfere with the
successful marketing of the shares of Issuer Common Stock for the account of
Issuer, or (ii) in the case of a registration solely to implement a dividend
reinvestment or similar plan, an employee benefit plan or a registration filed
on Form S-4 or any successor form, or a registration filed on a form which does
not permit registrations of resales; provided, further, that such election
pursuant to clause (i) may only be made once. If some but not all the shares of
Issuer Common Stock, with respect to which Issuer shall have received requests
for registration pursuant to this subparagraph (b), shall be excluded from such


                                      -11-
<PAGE>   12


registration, Issuer shall make appropriate allocation of shares to be
registered among Selling Holders and any other person (other than Issuer or any
person exercising demand registration rights in connection with such
registration) who or which is permitted to register their shares of Issuer
Common Stock in connection with such registration pro rata in the proportion
that the number of shares requested to be registered by each Selling Holder
bears to the total number of shares requested to be registered by all persons
then desiring to have Issuer Common Stock registered for sale (other than Issuer
or any person exercising demand registration rights in connection with such
registration).

              (c) Issuer shall use all reasonable efforts to cause the
registration statement referred to in subparagraph (a) above to become effective
and to obtain all consents or waivers of other parties which are required
therefor and to keep such registration statement effective, provided, that
Issuer may delay any registration of Option Shares required pursuant to
subparagraph (a) above for a period not exceeding 90 days, provided Issuer shall
in good faith determine that any such registration would adversely affect an
offering or contemplated offering of other securities by Issuer. Notwithstanding
anything to the contrary contained herein, Issuer shall not be required to
register Option Shares under the Securities Laws pursuant to subparagraph (a)
above:

                  (i) prior to the occurrence of a Purchase Event;

                  (ii) more than twice;

                  (iii) within 90 days after the effective date of a
       registration referred to in subparagraph (b) above pursuant to which the
       Selling Holders concerned were afforded the opportunity to register such
       shares under the Securities Laws and such shares were registered as
       requested; and

                  (iv) unless a request therefor is made to Issuer by Selling
       Holders holding at least 15% or more of the aggregate number of Option
       Shares then outstanding or the right to acquire at least 15% of the
       Option Shares.

                    In addition to the foregoing, Issuer shall not be required
to maintain the effectiveness of any registration statement after the expiration
of 120 days from the effective date of such registration statement. Issuer shall
use all reasonable efforts to make any filings, and take all steps, under all
applicable state securities laws to the extent necessary to permit the sale or
other disposition of the Option Shares so registered in accordance with the
intended method of distribution for such shares, provided, that Issuer shall not
be required to consent to general jurisdiction or qualify to do business in any
state where it is not otherwise required to so consent to such jurisdiction or
to so qualify to do business.

              (d) Except where applicable state law prohibits such payments,
Issuer will pay all expenses (including without limitation registration fees,
qualification fees, blue sky fees and expenses (including the fees and expenses
of Issuer's counsel), accounting expenses, printing expenses, expenses of
underwriters, excluding discounts and commissions but including liability
insurance if Issuer so desires or the underwriters so require, and the
reasonable fees and expenses


                                      -12-

<PAGE>   13


of any necessary special experts) in connection with each registration pursuant
to subparagraph (a) or (b) above (including the related offerings and sales by
Selling Holders) and all other qualifications, notifications or exemptions
pursuant to subparagraph (a) or (b) above. Underwriting discounts and
commissions relating to Option Shares and any other expenses incurred by such
Selling Holders in connection with any such registration (including expenses of
Selling Holders' counsel) shall be borne by such Selling Holders.

              (e) In connection with any registration under subparagraph (a) or
(b) above Issuer hereby agrees to indemnify the Selling Holders, and each
underwriter thereof, including each person, if any, who controls such holder or
underwriter within the meaning of Section 15 of the Securities Act, against all
expenses, losses, claims, damages and liabilities caused by any untrue statement
of a material fact contained in any registration statement or prospectus
(including any amendments or supplements thereto) or any preliminary prospectus,
or caused by any omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, except insofar as such
expenses, losses, claims, damages or liabilities of such indemnified party are
caused by any untrue statement or alleged untrue statement or any omission or
alleged omission made in reliance upon and in conformity with, information
furnished in writing to Issuer by such indemnified party expressly for use
therein, and Issuer and each officer, director and controlling person of Issuer
shall be indemnified by such Selling Holder, or by such underwriter, as the case
may be, for all such expenses, losses, claims, damages and liabilities caused by
any untrue, or alleged untrue, statement or omission made in reliance upon, and
in conformity with, information furnished in writing to Issuer by such holder or
such underwriter, as the case may be, expressly for such use.

                    Promptly upon receipt by a party indemnified under this
subparagraph (e) of notice of the commencement of any action against such
indemnified party in respect of which indemnity or reimbursement may be sought
against any indemnifying party under this subparagraph (e), such indemnified
party shall notify the indemnifying party in writing of the commencement of such
action, but the failure so to notify the indemnifying party shall not relieve it
of any liability which it may otherwise have to any indemnified party under this
subparagraph (e), except to the extent such failure to notify materially
prejudices the indemnifying party. In case notice of commencement of any such
action shall be given to the indemnifying party as above provided, the
indemnifying party shall be entitled to participate in and, to the extent it may
wish, jointly with any other indemnifying party similarly notified, to assume
the defense of such action at its own expense, with counsel chosen by it and
reasonably satisfactory to such indemnified party. The indemnified party shall
have the right to employ separate counsel in any such action and participate in
the defense thereof, but the fees and expenses of such counsel (other than
reasonable costs of investigation) shall be paid by the indemnified party unless
(i) the indemnifying party either agrees to pay the same, (ii) the indemnifying
party falls to assume the defense of such action with counsel reasonably
satisfactory to the indemnified party, or (iii) the indemnified party has been
advised by counsel that one or more legal defenses may be available to the
indemnifying party that may be contrary to the interest of the indemnified
party, in which case the indemnifying party shall be entitled to assume the
defense of such action notwithstanding its obligation to bear fees and expenses
of


                                      -13-

<PAGE>   14


such counsel; provided, however, that the indemnifying party shall not be liable
for the expenses of more than one firm of counsel for all indemnified parties in
any jurisdiction. No indemnifying party shall be liable for any settlement
entered into without its consent, which consent may not be unreasonably
withheld.

                    If the indemnification provided for in this subparagraph (e)
is unavailable to a party otherwise entitled to be indemnified in respect of any
expenses, losses, claims, damages or liabilities referred to herein, then the
indemnifying party, in lieu of indemnifying such party otherwise entitled to be
indemnified, shall contribute to the amount paid or payable by such party to be
indemnified as a result of such expenses, losses, claims, damages or liabilities
in such proportion as is appropriate to reflect the relative benefits received
by Issuer, all Selling Holders and the underwriters from the offering of the
securities and also the relative fault of Issuer, all Selling Holders and the
underwriters in connection with the statements or omissions which resulted in
such expenses, losses, claims, damages or liabilities, as well as any other
relevant equitable considerations. The amount paid or payable by a party as a
result of the expenses, losses, claims, damages and liabilities referred to
above shall be deemed to include any legal or other fees or expenses reasonably
incurred by such party in connection with investigating or defending any action
or claim; provided, that in no case shall any Selling Holder be responsible, in
the aggregate, for any amount in excess of the net offering proceeds
attributable to its Option Shares included in the offering. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. Any obligation by any Holder to
indemnify shall be several and not joint with other Holders.

                    In connection with any registration pursuant to subparagraph
(a) or (b) above, Issuer and each Selling Holder (other than Grantee) shall
enter into an agreement containing the indemnification provisions of this
subparagraph (e).

              (f) Issuer shall use its best efforts to comply with all reporting
requirements and will do all such other things as may be necessary to permit the
expeditious sale at any time of any Option Shares by Holder in accordance with
and to the extent permitted by any rule or regulation promulgated by the SEC
from time to time, including, without limitation, Rules 144 and 144A.

              (g) Issuer will pay all stamp taxes in connection with the
issuance and the sale of the Option Shares and in connection with the exercise
of the Option, and will save Holder harmless, without limitation as to time,
against any and all liabilities, with respect to all such taxes.

       10. Quotation; Listing. If Issuer Common Stock or any other securities to
be acquired upon exercise of the Option are then authorized for quotation or
trading or listing on the Nasdaq NMS or any other securities exchange or any
automated quotations system maintained by a self-regulatory organization,
Issuer, upon the request of Holder, will promptly file an application, if
required, to authorize for quotation or trading or listing the shares of Issuer
Common Stock or other securities to be acquired upon exercise of the Option on
the Nasdaq NMS or any other securities exchange or any automated quotations
system maintained by a self-regulatory


                                      -14-

<PAGE>   15


organization and will use its best efforts to obtain approval, if required, of
such quotation or listing as soon as practicable.

       11. Division of Option. This Agreement (and the Option granted hereby)
are exchangeable, without expense, at the option of Holder, upon presentation
and surrender of this Agreement at the principal office of Issuer for other
Agreements providing for Options of different denominations entitling the holder
thereof to purchase in the aggregate the same number of shares of Issuer Common
Stock purchasable hereunder. The terms "Agreement" and "Option" as used herein
include any other Agreements and related Options for which this Agreement (and
the Option granted hereby) may be exchanged. Upon receipt by Issuer of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of
this Agreement, and (in the case of loss, theft or destruction) of reasonably
satisfactory indemnification, and upon surrender and cancellation of this
Agreement, if mutilated, Issuer will execute and deliver a new Agreement of like
tenor and date. Any such new Agreement executed and delivered shall constitute
an additional contractual obligation on the part of Issuer, whether or not the
Agreement so lost, stolen, destroyed or mutilated shall at any time be
enforceable by anyone.

       12. Miscellaneous.

              (a) Expenses. Except as otherwise provided in Section 9, each of
the parties hereto shall bear and pay all costs and expenses incurred by it or
on its behalf in connection with the transactions contemplated hereunder,
including fees and expenses of its own financial consultants, investment
bankers, accountants and counsel.

              (b) Waiver and Amendment. Any provision of this Agreement may be
waived at any time by the party that is entitled to the benefits of such
provision. This Agreement may not be modified, amended, altered or supplemented
except upon the execution and delivery of a written agreement executed by the
parties hereto.

              (c) Entire Agreement; No Third-Party Beneficiary; Severability.
This Agreement, together with the Merger Agreement and the other documents and
instruments referred to herein and therein between Grantee and Issuer (a)
constitutes the entire agreement and supersedes all prior agreements and
understandings, both written and oral, between the parties with respect to the
subject matter hereof and (b) is not intended to confer upon any person other
than the parties hereto (other than any transferees of the Option Shares or any
permitted transferee of this Agreement pursuant to Section 12(h) and other than
as provided in the Merger Agreement) any rights or remedies hereunder. If any
term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction or a federal or state governmental or regulatory agency
or authority to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of this Agreement shall remain in full
force and effect and shall in no way be affected, impaired or invalidated. If
for any reason such court or regulatory agency determines that the Option does
not permit Holder to acquire, or does not require Issuer to repurchase, the full
number of shares of Issuer Common Stock as provided in Sections 3 and 8 (as
adjusted pursuant to Section 7), it is the express intention of Issuer to allow
Holder to acquire


                                      -15-

<PAGE>   16


or to require Issuer to repurchase such lesser number of shares as may be
permissible without any amendment or modification hereof.

              (d) Governing Law. This Agreement shall be governed and construed
in accordance with the laws of the State of Delaware without regard to any
applicable conflicts of law rules.

              (e) Descriptive Headings. The descriptive headings contained
herein are for convenience of reference only and shall not affect in any way the
meaning or interpretation of this Agreement.

              (f) Notices. All notices and other communications hereunder shall
be in writing and shall be deemed given if delivered personally, telecopied
(with confirmation) or mailed by registered or certified mail (return receipt
requested) to the parties at the addresses set forth in the Merger Agreement (or
at such other address for a party as shall be specified by like notice).

              (g) Counterparts. This Agreement and any amendments hereto may be
executed in two counterparts, each of which shall be considered one and the same
agreement and shall become effective when both counterparts have been signed, it
being understood that both parties need not sign the same counterpart.

              (h) Assignment. Neither this Agreement nor any of the rights,
interests or obligations hereunder or under the Option shall be assigned by any
of the parties hereto (whether by operation of law or otherwise) without the
prior written consent of the other party, except that Grantee may assign this
Agreement to a wholly owned Subsidiary of Grantee and Grantee may assign its
rights hereunder in whole or in part after the occurrence of a Purchase Event.
Subject to the preceding sentence, this Agreement shall be binding upon, inure
to the benefit of and be enforceable by the parties and their respective
successors and assigns.

              (i) Further Assurances. In the event of any exercise of the Option
by Holder, Issuer and Holder shall execute and deliver all other documents and
instruments and take all other action that may be reasonably necessary in order
to consummate the transactions provided for by such exercise.

              (j) Specific Performance. The parties hereto agree that this
Agreement may be enforced by either party through specific performance,
injunctive relief and other equitable relief. Both parties further agree to
waive any requirement for the securing or posting of any bond in connection with
the obtaining of any such equitable relief and that this provision is without
prejudice to any other rights that the parties hereto may have for any failure
to perform this Agreement.

              (k) Confidentiality Agreements. The parties hereto agree that this
Agreement supersedes any provision of the Confidentiality Agreement that could
be interpreted to preclude the exercise of any rights or the fulfillment of any
obligations under this Agreement, and that none of the provisions included in
the Confidentiality Agreement will act to preclude Holder


                                      -16-

<PAGE>   17


from exercising the Option or exercising any other rights under this Agreement
or act to preclude Issuer from fulfilling any of its obligations under this
Agreement.

       IN WITNESS WHEREOF, Issuer and Grantee have caused this Stock Option
Agreement to be signed by their respective officers thereunto duly authorized,
all as of the day and year first written above.

ATTEST:                                PARK MERIDIAN FINANCIAL
                                         CORPORATION



By: /s/ Bryan F. Kennedy III           By: /s/ Kevin T. Kennelly
    -------------------------------        -------------------------------------
    Bryan F. Kennedy III                   Kevin T. Kennelly
    Executive Vice President               President and Chief Executive Officer

[CORPORATE SEAL]


ATTEST:                                REGIONS FINANCIAL CORPORATION


By: /s/ Samuel E. Upchurch, Jr.        By: /s/ Carl E. Jones, Jr.
    -------------------------------        -------------------------------------
    Samuel E. Upchurch, Jr.                Carl E. Jones, Jr.
    Corporate Secretary                    President and Chief Executive Officer

[CORPORATE SEAL]





                                      -17-