**PURCHASE      AND ASSUMPTION AGREEMENT**

**Between**

**FNB      SOUTHEAST**

**(“Seller”)**

**and**

**NEW      PEOPLES BANK**

**(“Buyer”)**

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**PURCHASE      AND ASSUMPTION AGREEMENT**

| **ARTICLE                  I TRANSFER OF ASSETS AND LIABILITIES**                                             | **1**  |
|---------------------------------------------------------------------------------------------------------------|--------|
| Section                  1.1.   Transferred Assets                                             | 1      |
| Section                  1.2.   Purchase Price                                                 | 2      |
| Section                  1.3.   Deposit Liabilities                                            | 3      |
| Section                  1.4.   Loans Transferred                                              | 6      |
| Section                  1.5.   Safe Deposit Business                                          | 8      |
| Section                  1.6.   Employee Matters                                               | 8      |
| Section                  1.7.   Records and Data Processing                                    | 9      |
| Section                  1.8.   Security                                                       | 10     |
| Section                  1.9.   Taxes and Fees; Proration of Certain                  Expenses | 10     |
| Section                  1.10. Real Property                                                                  | 10     |
| Section                  1.11. Purchase Price Allocation                                                      | 13     |
|                                                                                                          |   |
| **ARTICLE                  II CLOSING AND EFFECTIVE TIME**                                                    | **13** |
| Section                  2.1.  Effective Time                                                       | 13     |
| Section                  2.2.  Closing                                                              | 14     |
| Section                  2.3.  Post-Closing Adjustments                                             | 16     |
|                                                                                                          |   |
| **ARTICLE                  III INDEMNIFICATION**                                                              | **17** |
| Section                  3.1.  Seller's Indemnification of Purchaser                                | 17     |
| Section                  3.2.  Purchaser's Indemnification of Seller                                | 17     |
| Section                  3.3.  Claims for Indemnity                                                 | 17     |
| Section                  3.4.  Limitations on Indemnification.                                      | 18     |
|                                                                                                          |   |
| **ARTICLE                  IV REPRESENTATIONS AND WARRANTIES OF SELLER**                                      | **19** |
| Section                  4.1.   Corporate Organization                                         | 19     |
| Section                  4.2.   No Violation                                                   | 19     |
| Section                  4.3.   Corporate Authority                                            | 19     |
| Section                  4.4.   Enforceable Agreement                                          | 19     |
| Section                  4.5.   No Brokers                                                     | 19     |
| Section                  4.6.   Personal Property                                              | 19     |
| Section                  4.7.   Real Property                                                  | 20     |
| Section                  4.8.   Condition of Property                                          | 20     |
| Section                  4.9.   Loans                                                          | 20     |
| Section                  4.10. Compliance with Certain Laws                                                   | 21     |
| Section                  4.11. Community Reinvestment Act Representation                                      | 21     |
| Section                  4.12. Leases                                                                         | 21     |
| Section                  4.13. Limitation of Representations and Warranties                                   | 21     |
|                                                                                                          |   |
| **ARTICLE                  V REPRESENTATIONS AND WARRANTIES OF PURCHASER**                                    | **21** |

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| Section                  5.1.   Corporate Organization                                                                               | 21     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Section                  5.2.   No Violation                                                                                         | 22     |
| Section                  5.3.   Corporate Authority                                                                                  | 22     |
| Section                  5.4.   Enforceable Agreement                                                                                | 22     |
| Section                  5.5.   No Brokers                                                                                           | 22     |
|                                                                                                                                                |   |
| **ARTICLE                  VI OBLIGATIONS OF PARTIES PRIOR TO AND AFTER EFFECTIVE                  TIME**                                           | **22** |
| Section                  6.1.   Access to Information                                                                                | 22     |
| Section                  6.2.   Delivery of Magnetic Media Records                                                                   | 22     |
| Section                  6.3.   Application for Approval to Effect Purchase of                  Assets and Assumption of Liabilities | 23     |
| Section                  6.4.   Conduct of Business; Maintenance of                  Properties                                      | 23     |
| Section                  6.5.   No Solicitation by Seller                                                                            | 24     |
| Section                  6.6.   Further Actions                                                                                      | 24     |
| Section                  6.7.   Fees and Expenses                                                                                    | 24     |
| Section                  6.8.   Breaches with Third Parties                                                                          | 25     |
| Section                  6.9.   Insurance                                                                                            | 25     |
| Section                  6.10. Public Announcements                                                                                                 | 25     |
| Section                  6.11. Tax Reporting                                                                                                        | 25     |
|                                                                                                                                                |   |
| **ARTICLE                  VII CONDITIONS TO PURCHASER'S OBLIGATIONS**                                                                              | **25** |
| Section                  7.1.   Representations and Warranties True                                                                  | 26     |
| Section                  7.2.   Obligations Performed                                                                                | 26     |
| Section                  7.3.   No Adverse Litigation                                                                                | 26     |
| Section                  7.4.   Regulatory Approval                                                                                  | 26     |
|                                                                                                                                                |   |
| **ARTICLE                  VIII CONDITIONS TO SELLER'S OBLIGATIONS**                                                                                | **26** |
| Section                  8.1.   Representations and Warranties True                                                                  | 26     |
| Section                  8.2.   Obligations Performed                                                                                | 27     |
| Section                  8.3.   No Adverse Litigation                                                                                | 27     |
| Section                  8.4.   Regulatory Approval                                                                                  | 27     |
|                                                                                                                                                |   |
| **ARTICLE                  IX TERMINATION**                                                                                                         | **27** |
| Section                  9.1.   Methods of Termination                                                                               | 27     |
| Section                  9.2.   Procedure Upon Termination                                                                           | 28     |
| Section                  9.3.   Payment of Expenses                                                                                  | 29     |
|                                                                                                                                                |   |
| **ARTICLE                  X MISCELLANEOUS PROVISIONS**                                                                                             | **29** |
| Section                  10.1.   Amendment and Modification                                                                          | 29     |
| Section                  10.2.   Waiver or Extension                                                                                 | 29     |
| Section                  10.3.   Assignment                                                                                          | 29     |
| Section                  10.4.   Confidentiality                                                                                     | 29     |

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| Section                  10.5.   Knowledge of Seller                                         | 30     |
|-------------------------------------------------------------------------------------------------------------|--------|
| Section                  10.6.   Retention of Documents                                      | 31     |
| Section                  10.7.   Addresses for Notices, Etc.                                 | 31     |
| Section                  10.8.   Counterparts                                                | 31     |
| Section                  10.9.   Headings                                                    | 31     |
| Section                  10.10. Governing Law                                                               | 32     |
| Section                  10.11. Sole Agreement                                                              | 32     |
| Section                  10.12. Severability                                                                | 32     |
| Section                  10.13. Parties In Interest                                                    | 32     |
|                                                                                                        |   |
| **EXHIBIT                  LIST**                                                                           | **i**  |
|             Exhibit                  1          | ii     |
|             Exhibit                  1.1(a)(3)  | iii    |
|             Exhibit                  1.1(b)     | iv     |
|             Exhibit                  1.3(a)     | v      |
|             Exhibit                  1.4(a)     | vi     |
|             Exhibit                  1.4(b)     | vii    |
|             Exhibit                  1.4(k)     | viii   |
|             Exhibit                  1.11       | x      |
|             Exhibit                  2.2(b)(2)  | xi     |
|             Exhibit                  2.2(b)(3)  | xiii   |
|             Exhibit                  2.2(b)(14) | xv     |

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**PURCHASE      AND ASSUMPTION AGREEMENT**

**THIS      PURCHASE AND ASSUMPTION      AGREEMENT**

**W      I T N E S S E T H:**

**WHEREAS**

**WHEREAS**

**NOW,      THEREFORE**

**ARTICLE      I**

**TRANSFER      OF ASSETS AND LIABILITIES**

|   | (a) | As                of the Effective Time (as defined in Section 2.1) and upon the terms                and                conditions set forth herein, Seller will sell, assign, transfer,                convey                and deliver to Purchaser, and Purchaser will purchase from Seller,                all of                the rights, title and interests of Seller in the following assets                associated with the Banking Centers and identified in this Agreement                and                the Exhibits hereto, and not otherwise excluded from sale pursuant                to the                provisions of Subsection 1.1(b): |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | subject                to Section 1.10, all real estate and improvements thereon owned by                Seller                at the Banking Centers (the “Real Property”), together with all rights and                appurtenances pertaining thereto; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | except                as provided in Section 1.1(b), the furniture, fixtures, leasehold                improvements, equipment and other tangible personal property owned                by                Seller and located at each Banking Center or used in conducting Seller’s                business at the Banking Center (the “Personal                Property”); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | all                leases affecting the Banking Centers, including all leases of real                property (the “Real Property Leases”) as listed on Exhibit 1.1(a)(3), and                all equipment leases for equipment located at the Banking Centers                (the                “Equipment Leases”); and all assignable operating contracts of the Banking                Centers excluding any master contracts (the                “Assignable |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Contracts”);                all of which Real Property Leases, Equipment Leases and Assignable                Contracts are listed on Exhibit                1.1(a)(3); |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | all                safe deposit contracts and leases for the safe deposit boxes located                at                the Banking Centers as of the Effective Time (the “Safe Deposit                Contracts”); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | all                Loans transferred pursuant to Section                1.4; |
|--------|-----|------------------------------------------------------------------------------|

|   | (6) | all                coins and currency located at the Banking Centers as of the Effective                Time                (the “Coins and Currency”); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | all                merchant services accounts associated with Deposit Liabilities (as                defined                in Section 1.3(a)) located at the Banking Centers;                and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | all                night depository contracts. |
|--------|-----|------------------------------------------------|

|   | (b) | Excluded                from the assets, properties and rights being transferred, conveyed                and                assigned to Purchaser under this Agreement are the assets listed                on                Exhibit 1.1(b) hereto, Seller’s rights in and to the names “FNB                Southeast,” “FNB Financial Services Corporation,” “FNB Southeast                Investment Services, Inc.,” “FNB Southeast Mortgage Corporation” and                “Black Diamond Savings Bank, FSB” and any of Seller’s corporate logos,                trademarks, trade names, signs, paper stock, forms and other supplies                containing any such logos, trademarks or trade names, and trade names                and                logos of third parties with whom Seller has contracted to provide                services                to its customers (together, the “Excluded Assets”).  Seller                shall coordinate with Purchaser to remove the Excluded Assets from                the                Banking Centers on or prior to the Effective Time. Seller shall remove                the                Excluded Assets at its own cost, and, apart from making any reasonable                repairs necessitated by removing the Excluded Assets, Seller shall                be                under no obligation to restore the Banking Centers premises to their                original condition, which shall be the responsibility of                Purchaser. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | As                consideration for the purchase of the Banking Centers, Purchaser                shall pay                Seller a purchase price (the “Purchase Price”) equal to the sum of the                following: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | With                respect to the Real Property, $1,073,600 (the “Property                Value”); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (2) | A                premium for the Deposit Liabilities (as defined in Section 1.3(a))                and                franchise value related to the Banking Centers equal to 8.08% of                the                Deposit Liabilities; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The                Net Book Value (as defined in Section 1.2(d)), including accrued                interest,                for the Loans as set forth in Section                1.4; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The                Net Book Value (as defined in Section 1.2(d)) of the Personal Property;                and |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

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|   | (5) | The                face amount of the Coins and                Currency. |
|--------|-----|--------------------------------------------------------------------------|

|   | (b) | In                addition, Purchaser shall assume, as of the Effective Time, all of                the                duties, obligations and liabilities of Seller arising on or after                the                Effective Time relating to the Real Property, the Real Property Leases,                the Equipment Leases, the Assignable Contracts, the Safe Deposit                Contracts, and the Deposit Liabilities (including all accrued interest                relating thereto) (collectively, the “Assumed Liabilities”); provided,                that any cash items paid by Seller and not cleared prior to the Effective                Time shall be the responsibility of Seller, subject to the terms                of                Section 1.3. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Seller                shall prepare a balance sheet (the “Pre-Closing Balance Sheet”) in                accordance with its customary practices as of a date two business                days                prior to the Effective Time anticipated by the parties (the “Pre-Closing                Balance Sheet Date”) reflecting the assets to be sold and assigned                hereunder and the liabilities to be transferred and assumed hereunder,                all                based on the Property Value of the Real Property and the estimated                book                value of other assets and liabilities as of the Effective Time; Seller                agrees to pay to Purchaser at the Closing (as defined in Section                2.1), in                immediately available funds, the excess amount, if any, of the amount                of                Deposit Liabilities assumed by Purchaser pursuant to subsection (b)                above                as reflected by the Pre-Closing Balance Sheet over the aggregate                Purchase                Price computed in accordance with subsection (a) above, as reflected                by                the Pre-Closing Balance Sheet. Purchaser agrees to pay Seller at                the                Closing by wire transfer, in immediately available funds, the excess,                if                any, of the aggregate Purchase Price computed in accordance with                subsection (a) above, as reflected by the Pre-Closing Balance Sheet,                over                the amount of Deposit Liabilities assumed by Purchaser pursuant to                subsection (b) above as reflected by the Pre-Closing Balance Sheet.                Amounts paid at Closing shall be subject to subsequent adjustment                based on                the Post-Closing Balance Sheet (as defined in Section                2.3). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | For                purposes of this Agreement, “Net Book Value” means the value determined                from the Post-Closing Balance Sheet; provided, however, that such                value                shall not include the loan loss reserve attributable to any Loan                (as                defined in Section 1.4) or any general                reserve. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | “Deposit                Liabilities” shall mean all of Seller’s duties, obligations and                liabilities relating to the deposit accounts (except as set forth                in                Section 1.3(b)) located at the Banking Centers as of the Effective                Time                (including accrued but unpaid or uncredited interest thereon), including,                but not limited to, demand deposit accounts, savings accounts and                certificates of deposit. A projected list of the Deposit Liabilities                is                attached hereto as Exhibit 1.3(a) and shall be updated as soon as                practicable after Closing. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Except                for those liabilities and obligations specifically assumed by Purchaser                under Section 1.2(b) and except as otherwise provided in Section                1.6(a),                Purchaser is not assuming any other liabilities or obligations of                Seller                or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | otherwise.  Subject                to the limitations on indemnification set forth in Section 3.4,                liabilities not assumed include, but are not limited to, the                following: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Seller’s                official checks, cashier checks, letters of credit, money orders,                interest                checks and expense checks issued prior to Closing, consignments of                U.S.                Government “E” and “EE” bonds and any and all traveler’s                checks. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Liabilities                or obligations of Seller with respect to any litigation, suits, claims,                demands or governmental proceedings arising, commenced or made known                to                Seller prior to Closing or arising from events occurring prior to                Closing. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Deposit                accounts associated with lines of credit where the line of credit                is                excluded in accordance with Section 1.4                (b). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Deposit                accounts associated with Seller’s national or regional account                relationships, if any. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Seller                does not represent or warrant that any deposit customers whose accounts                are assumed by Purchaser will become or continue to be customers                of                Purchaser after the Effective Time. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Purchaser                agrees to pay in accordance with law and customary banking practices                all                properly drawn and presented checks, drafts and withdrawal orders                presented to Purchaser by mail, over the counter or through the check                clearing system of the banking industry, by depositors of the accounts                assumed, whether drawn on the checks, withdrawal or draft forms provided                by Seller or by Purchaser, and in all other respects to discharge,                in the                usual course of the banking business, the duties and obligations                of Seller                with respect to the balances due and owing to the depositors whose                accounts are assumed by Purchaser. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | If,                after the Effective Time, any depositor, instead of accepting the                obligation of Purchaser to pay the Deposit Liabilities assumed, shall                demand payment from Seller for all or any part of any such assumed                Deposit                Liabilities, Seller shall not be liable or responsible for making                any such                payment; provided, that if Seller shall pay the same, Purchaser agrees                to                reimburse Seller for any payments, and Seller shall not be deemed                to have                made any representations or warranties to Purchaser with respect                to any                checks, drafts or withdrawal orders processed after the Effective                Time                drawn on such Deposit Liabilities, and any such representations or                warranties implied by law are hereby expressly disclaimed. Seller                and                Purchaser shall make arrangements to provide for the daily settlement                by                Purchaser with immediately available funds of checks, drafts, withdrawal                orders, returns and other items presented to and paid by Seller within                30                calendar days after the Effective Time and drawn on or chargeable                to                accounts that have been assumed by Purchaser; provided, however,                that                Seller shall be held harmless and indemnified by Purchaser for acting                in                accordance with such                arrangements. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | (f) | Purchaser                agrees, at its cost and expense, (1) to notify the depositors of                assumed                accounts, on or before the Effective Time, in a form and mailed on                a date                mutually acceptable to Seller and Purchaser, of Purchaser’s assumption of                Deposit Liabilities, and (2) to furnish such depositors with checks                on the                forms of Purchaser and with instructions to utilize Purchaser’s checks and                to destroy unused check, draft and withdrawal order forms of                Seller.  (If Purchaser so elects, Purchaser may offer to buy                from such depositors their unused Seller's check, draft and withdrawal                order forms.)  In addition, Seller will notify its affected                customers by letter of the pending assignment of the Deposit Liabilities                to Purchaser, which notice shall be at Seller’s cost and expense and shall                be in a form and mailed on a date mutually agreeable to Seller and                Purchaser. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Purchaser                agrees to pay promptly to Seller an amount equivalent to the amount                of any                checks, drafts or withdrawal orders credited to an assumed account                as of                the Effective Time that are properly returned to Seller after the                Effective Time. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | As                of the Effective Time, Purchaser will assume and discharge Seller’s duties                and obligations in accordance with the terms and conditions and laws,                rules and regulations that apply to the Assumed                Liabilities. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | As                of the Effective Time, Purchaser will maintain and safeguard in accordance                with applicable law and sound banking practices all account documents,                deposit contracts, signature cards, deposit slips, canceled items                and                other records related to the Deposit Liabilities assumed under this                Agreement, subject to Seller’s right of access to such records as provided                in this Agreement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | Seller                will render a final statement to each depositor of an account assumed                under this Agreement as to transactions occurring through the Effective                Time; provided that Seller shall not be obligated to render a final                statement on any account not ordinarily receiving periodic statements                in                the ordinary course of Seller’s business.  Seller will be                entitled to impose normal fees and service charges on a per item                basis** **at Closing, but Seller will not impose                periodic fees or blanket charges in connection with such final                statements. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | Seller                will timely provide to Purchaser 1099 data for Purchaser to comply                with                all laws, rules and regulations regarding 2007 tax reporting of                transactions of such accounts through the Effective                Time. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | As                of the Effective Time, Purchaser, at its expense, will notify all                Automated Clearing House (“ACH”) originators of the transfers and                assumptions made pursuant to this Agreement; provided that Seller                may, at                its option, notify all such originators itself (on behalf of Purchaser)                also at the expense of Purchaser.  For a period of 90 calendar                days beginning on the Effective Time, Seller will honor all ACH items                related to accounts assumed under this Agreement that are routed                or                presented to Seller.  Seller will make no charge to Purchaser                for honoring such items, and will electronically transmit such ACH                data to                Purchaser.  If Purchaser cannot receive an electronic                transmission, Seller will make available to Purchaser at Seller’s                operations center receiving items from the Automated Clearing House                tapes                containing such ACH data.  Items routed or presented after the                90 day |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | period                shall be returned to the presenting party.  Seller and Purchaser                shall make arrangements to provide for the daily settlement with                immediately available funds by Purchaser of any ACH items honored                by                Seller, and Seller shall be held harmless and indemnified by Purchaser                for                acting in accordance with this arrangement to accept ACH                items. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | As                of the Effective Time, Purchaser agrees to use commercially reasonable                efforts to collect from Purchaser’s customers amounts equal to any Visa or                MasterCard charge backs under the MasterCard and Visa Merchant Agreements                between Seller and its customers, or amounts equal to any deposit                items                returned to Seller after the Effective Time that were honored by                Seller                prior to the Effective Time, and remit such amounts so collected                to                Seller.  Purchaser agrees to immediately freeze and remit to                Seller any funds, up to the amount of the charged back or returned                item                that had been previously credited by Seller, if such funds are available                at the time of notification by Seller to Purchaser of the charged                back or                returned item and such charge back is                permitted.  Notwithstanding the foregoing, Purchaser shall have                no duty to remit funds for any item or charge that has been improperly                returned or charged to Seller.  Solely for the purposes of this                Section 1.3(m), all references to Seller shall be deemed to include                Seller                and its assignees. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Seller                will transfer to Purchaser as of the Effective Time, subject to the                terms                and conditions of this Agreement, all of Seller’s right, title and                interest in (including collateral relating thereto) loans maintained,                serviced and listed in Seller’s records as loans of the Banking Centers                (collectively, the “Loans”); provided, however, the Loans shall not                include any loans described in subsection (b) below.  Such Loans                (as well as any security interest related thereto) shall be transferred                by                means of a blanket (collective) assignment and not individually (except                as                may be otherwise required by law).  Purchaser shall inform                Seller not less than 45 calendar days prior to the proposed Closing                of any                case in which filing information relating to any collateral for the                Loans                will be required for preparation of any assignments of liens. A projected                list of the Loans is attached hereto as Exhibit 1.4(a) that shall                be updated as soon as practicable after                Closing. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Notwithstanding                the provisions of subsection (a) above, the Loans shall not                include: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (1) | nonaccruals                (which term shall mean loans in which the collateral securing same                has                been repossessed, or in which collection efforts have been instituted,                or                claim and delivery or foreclosure proceedings have been filed) and                classified loans; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | loans                60 calendar days or more past due; |
|--------|-----|---------------------------------------------------------|

|   | (3) | loans                upon which insurance has been                force-placed; |
|--------|-----|---------------------------------------------------------------------------------|

|   | (4) | loans                in connection with which the borrower has filed a petition for relief                under the United States Bankruptcy Code prior to the Effective                Time; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | (5) | loans                identified by Purchaser in writing within 30 calendar days after                Purchaser’s due diligence review of the Banking Centers’ loans which ended                February 16, 2007 (the “Due  Diligence Review”) as not being                purchased because of  failure to meet the credit or aggregate                loan exposure standards of Purchaser; and (b) loans closed by Seller                on or                after February 1, 2007 up to and including the Effective Time, identified                in writing by Purchaser within 30 calendar days after the Effective                Time                as not being purchased because of failure to meet the credit or aggregate                loan exposure standards of                Purchaser; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | any                other loans identified on Exhibit 1.4(b);                or |
|--------|-----|--------------------------------------------------------------------------------|

|   | (7) | loan                loss reserves. |
|--------|-----|------------------------------------|

|   | (c) | Seller                and Purchaser agree that Purchaser will become the beneficiary of                credit                life insurance written on direct consumer installment Loans and debt                cancellation and disability coverage agreements written on any                Loans.  If Purchaser becomes the beneficiary of credit life                insurance or debt cancellation and disability coverage written on                any                Loans, Seller and Purchaser agree to cooperate in good faith to develop                a                mutually satisfactory method by which the current insurer will make                rebate                payments to and satisfy claims of the holders of such certificates                of                insurance after the Effective Time.  The parties’ obligations in                this section are subject to any restrictions contained in existing                insurance contracts as well as applicable laws and                regulations.  The parties shall cooperate to resolve any issues                related to payment of premiums.  If the parties determine that                loans subject to debt cancellation and disability coverage cannot                be                adequately serviced by Purchaser, the parties shall exclude such                Loans                from purchase hereunder. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|   | (d) | In                connection with the transfer of any Loans requiring notice to the                borrower, Purchaser and Seller agree to comply with all notice and                reporting requirements of the Loan documents or of any applicable                law or                regulation. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | All                Loans transferred to Purchaser shall be valued at their Net Book                Value,                such value to include accrued but unpaid                interest. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | All                Loans will be transferred to Purchaser without recourse (except as                otherwise provided herein) and without any warranties or representations                as to their collectibility or the creditworthiness of any of the                obligors                of such Loans, provided that, if any Loans are found to have any                collateral perfection deficiency within six months after the Effective                Time, Seller shall purchase such Loans from Purchaser in an amount                equal                to the principal of, accrued interest on and any fees on such                Loans. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Purchaser                will at its expense issue new coupon books for payment of Loans for                which                Seller provides coupon books with instructions to utilize Purchaser’s                coupons and to destroy coupons furnished by                Seller. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | For                a period of 90 calendar days after the Effective Time, Seller will                forward                to Purchaser Loan payments received by Seller.  Purchaser shall                reimburse Seller |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | upon                demand for checks returned on payments forwarded to Purchaser; however,                to                the extent possible, Seller will deduct the amount of such returned                checks                from payments received and shall settle with the Purchaser by a mutually                agreeable method. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | As                of the Effective Time, Seller shall transfer and assign all files,                documents and records related to the Loans (the “Records”) to Purchaser,                and Purchaser will be responsible for maintaining and safeguarding                all the                Records in accordance with applicable law and sound banking                practices. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | If                the balance due on any Loan purchased pursuant to this Section 1.4                has                been reduced by Seller as a result of a payment by check received                prior to                the Effective Time, which item is returned after the Effective Time,                the                asset value represented by the Loan transferred shall be correspondingly                increased and an amount in cash equal to such increase shall be paid                by                Purchaser to Seller promptly upon                demand. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | Seller                shall grant to Purchaser as of the Effective Time a limited power                of                attorney, in substantially the form attached hereto as Exhibit                1.4(k) (the “Power of                Attorney”). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | As                of the Effective Time, Purchaser will assume and discharge Seller’s                obligations with respect to the safe deposit box business at the                Banking                Centers arising on or after the Effective Time in accordance with                the                terms and conditions of contracts or rental agreements related to                such                business, and Purchaser will maintain all facilities necessary for                the use                of such safe deposit boxes by persons entitled to use them; provided                that                nothing herein shall be deemed to prohibit Purchaser, after the Effective                Time, from discontinuing the safe deposit box services or facilities                at                the Banking Centers (all in accordance with applicable law and any                contractual obligations regarding the                same). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | As                of the Effective Time, Seller shall transfer and assign the records                related to such safe deposit box business to Purchaser, and Purchaser                shall maintain and safeguard all such records and be responsible                for                granting access to and protecting the contents of safe deposit boxes                at                the Banking Centers. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Safe                deposit box rental payments (not including late payment fees) collected                by                either Seller or Purchaser applying to periods both before and after                the                Effective Time shall be prorated as of the Effective                Time. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Purchaser                may offer employment to any employees (the “Employees”) employed by Seller                at the Banking Centers as of the Effective Time (other than employees                whose function does not relate exclusively to operation of any Banking                Center).  If Purchaser offers employment to any of the Employees                (the “Transferred Employees”), then such Transferred Employees benefits                will be generally equivalent to benefits offered by Purchaser to                similarly                situated employees of |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Purchaser.  Except                for Purchaser’s qualified and nonqualified pension plans (if any),                Transferred Employees shall receive full credit for their prior service                with Seller under Purchaser’s benefit plans and policies, including its                vacation and sick leave policies, to the same extent as if such service                had been with Purchaser.  As of the Effective Time, the                Transferred Employees and their dependents, if any, covered under                Seller’s                health insurance plan preceding the Effective Time shall be covered                under                Purchaser’s health insurance plan without being subject to any                pre-existing condition limitations or exclusions.  Transferred                Employees shall not be required to satisfy the deductible and employee                payments required by Purchaser’s comprehensive medical and/or dental plans                for the calendar year of the Effective Time (i) to the extent of                amounts                previously credited during such calendar year under comparable plans                maintained by Seller, or (ii) to the extent the same is waived in                its                entirety by the applicable insurer, as determined by the applicable                insurer in its sole discretion.  The Purchaser will assume all                sick and vacation time accrued, but not used, by the Transferred                Employees                up to the date of the Closing.  With respect to Purchaser’s                qualified and nonqualified pension plans, Transferred Employees shall                receive full credit for prior service with Seller (and with other                entities                to the extent service with any such entity is treated by Seller as                service                with it) for purposes of determining their participation eligibility                and                vesting rights to the same extent as if such service had been with                Purchaser.  Benefits under Purchaser’s pension plans for                Transferred Employees shall be determined solely with reference to                service                with Purchaser. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Seller                makes no representations or warranties about whether any of its employees                will remain at the Banking Centers and become and remain employed                by                Purchaser after the Effective Time.  Seller will use its                commercially reasonable best efforts to maintain the employees as                employees of Seller at the Banking Centers until the Effective                Time.  Purchaser shall have no responsibilities or rights with                respect to any employee of Seller whose employment shall be terminated                for                any reason prior to the Effective Time or who shall elect not to                become an                employee of Purchaser.  Seller agrees that, for a period of 12                months after the Effective Time, it will not solicit for employment                any                Transferred Employee who remains employed by                Purchaser. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | As                of the Effective Time, Purchaser shall become responsible for maintaining                the files, documents and records referred to in this                Agreement.  Purchaser will preserve and safekeep them as                required by applicable law and sound banking practice. After the                Effective                Time, Purchaser will permit Seller and its representatives, at reasonable                times and upon reasonable notice, to examine, inspect, copy and reproduce                (at Seller’s expense) any such files, documents or records as Seller                reasonably deems necessary. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | As                of the Effective Time, Seller will permit Purchaser and its                representatives, at reasonable times and upon reasonable notice,                to                examine, inspect, copy and reproduce (at Purchaser’s expense) files,                documents or records retained by Seller regarding the assets and                liabilities transferred under this Agreement as Purchaser reasonably                deems                necessary. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | Title                and Leasehold Matters. |
|--------|-----|---------------------------------------------|

|   | (i) | Seller                agrees to deliver to Purchaser as soon as practicable after execution                of                this Agreement copies of all title and lease information in possession                of                Seller, including but not limited to title insurance policies, attorneys’                opinions on title, surveys, covenants, deeds, notes and mortgages,                leases                and easements relating to the Real Property.  Such delivery                shall constitute no warranty by Seller as to the accuracy or completeness                thereof or that Purchaser is entitled to rely                thereon. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Purchaser                agrees to notify Seller in writing within 30 calendar days after                the date                of this Agreement of any mortgages, pledges, material liens, encumbrances,                reservations, tenancies, encroachments, overlaps or other title exceptions                or zoning or similar land use violations (excluding legal but                nonconforming uses) related to the Real Property to which Purchaser |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | reasonably                objects (the “Title Defects”).  Purchaser agrees that Title                Defects shall not include real property taxes not yet due and payable,                or                easements, restrictions, tenancies, and rights of way that do not                materially interfere with the use of the Real Property as a banking                center                or defects that Purchaser can obtain protection from through purchase                of                title insurance at regular rates (or higher rates if the excess over                the                regular rate is paid by Seller).  Seller shall make a good faith                effort to correct any Title Defect to Purchaser’s reasonable satisfaction                at least 10 calendar days prior to Closing; provided that Seller                shall not                be obligated to bring any lawsuit or make any payments of money in                aggregate in excess of $75,000 (except to pay liens that Seller does                not                dispute in good faith) to cure Title Defects pursuant to this Section                1.10. If Seller fails to cure any such Title Defects (to the extent                that                Purchaser is obligated to do so under this Section) to Purchaser’s                reasonable satisfaction, Purchaser shall receive title in its then                existing condition with a corresponding Purchase Price adjustment                that is                agreeable to both parties. Any such Purchase Price adjustment shall                not                exceed $75,000, less the aggregate cost to Seller of correcting Title                Defects pursuant to this Section 1.10. Notwithstanding the foregoing,                in                the event that: (i) Seller is unable or unwilling to cure any such                Title                Defects to Purchaser’s reasonable satisfaction; and (ii) the aggregate                cost of curing Title Defects pursuant to this Section 1.10 is in                excess of                $75,000, Purchaser shall have the option (upon written notice to                Seller,                such notice to be received by Seller no later than 10 calendar days                after                Purchaser becomes aware of (i) and (ii), above) to terminate this                Agreement. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Purchaser                shall have the right to update title matters at Closing for any changes                that may have arisen between the date of Purchaser’s original title search                and the Closing Date. If such update indicates that any Title Defects                have                been placed of record since the date of Purchaser’s original title search,                and Purchaser reasonably objects thereto, then Seller may elect to                delay                the Closing for up to 30 calendar days while Seller makes a good                faith                effort to cure such Title Defects to Purchaser’s reasonable satisfaction;                provided that Seller shall not be obligated to bring any lawsuit                or make                any payments of money in aggregate in excess of $75,000 (except to                pay                liens that Seller does not dispute in good faith) to cure Title Defects                pursuant to this Section 1.10. If Seller is unable to cure any such                Title                Defects (to the extent that Purchaser is obligated to do so under                this                Section) within such 30 day period, Purchaser shall receive title                in the                then existing condition with a corresponding Purchase Price adjustment                agreeable to both parties. Any such Purchase Price adjustment shall                not                exceed $75,000, less the aggregate cost to Seller of correcting Title                Defects pursuant to this Section 1.10. Notwithstanding the foregoing,                in                the event that: (i) Seller fails to cure any such Title Defects to                Purchaser’s reasonable satisfaction; and (ii) the aggregate cost of curing                Title Defects pursuant to this Section 1.10 is in excess of $75,000,                Purchaser shall have the option (upon written notice to Seller, such                notice to be received by Seller no later than 10 calendar days after                Purchaser becomes aware of (i) and (ii), above) to terminate this                Agreement. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (b) | Environmental                Matters. |
|--|-----|---------------------------------------|

|   | (c) | Facilities                Inspection. |
|--------|-----|---------------------------------------|

|   | Purchaser                shall have the right, for and during the period ending 45 calendar                days                following the date of execution of this Agreement (the “Inspection                Period”), to inspect the physical condition of the Real Property for use                as a bank, including, without limitation, compliance of the Real                Property                with the provisions of the Americans with Disabilities Act (collectively,                “Inspection Issues”).  These inspections shall be conducted                during regular business hours by qualified inspectors or employees                of                Purchaser or its affiliates following not less than three business                days                notice to Seller.  Prior to entry upon the property, Purchaser                will confirm to Seller the existence of general liability insurance                in                coverage amounts reasonably acceptable to Seller.  Any physical                disturbance to the Real Property shall be subject to Seller’s prior                approval, which may be subject to such reasonable repair and restoration                conditions as Seller may impose (including, without limitation, the                obligation to repair any disturbed area to its condition immediately                prior                to that disturbance).  Purchaser promptly shall provide Seller                with copies of any and all written reports in connection with those                inspections, at no cost to Seller, upon Seller’s                request. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Correction                of Defects. |
|--------|-----|---------------------------------------|

|   | If                Purchaser discovers a defect or defects in one or both of the Banking                Centers with respect to Inspection Issues or Environmental Issues                (a                “Defect or “Defects”) |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | that                would, in aggregate, require the expenditure of over $25,000 to correct,                as determined by Purchaser in its reasonable discretion, Purchaser                shall                promptly give written notice thereof to Seller describing the Defect                or                Defects in detail, and Seller shall have the obligation to pay up                to the                sum of $75,000 to cure such Defects prior to the Effective Time,                if                reasonably possible, or as soon thereafter as can be reasonably                accomplished. For the avoidance of any doubt, Purchaser shall pay                the                first $25,000 of the aggregate cost of curing the Defects and Seller                shall                thereafter pay up to $75,000 of the aggregate cost of curing the                Defects.                If Seller is unable or unwilling to cure any such Defect (to the                extent                that Purchaser is obligated to do so under this Section) to Purchaser’s                reasonable satisfaction, Purchaser shall receive title to the Banking                Centers in their then existing condition with a corresponding Purchase                Price adjustment that is agreeable to both parties. Any such Purchase                Price adjustment shall not exceed $75,000, less the aggregate cost                to                Seller of correcting Defects pursuant to this Section 1.10. In the                event                that: (a) Seller is unable or unwilling to cure any Defects to Purchaser’s                reasonable satisfaction; and (b) the aggregate cost of curing Defects                pursuant to this Section 1.10 is in excess of $100,000, Purchaser                shall                have the option (upon written notice to Seller, such notice to be                received                by Seller no later than 10 calendar days after Purchaser becomes                aware of                (a) and (b), above) to terminate this Agreement. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ARTICLE      II**

**CLOSING      AND EFFECTIVE TIME**

----

|  | (a) | All                actions taken and documents delivered at the Closing shall be deemed                to                have been taken and executed simultaneously, and no action shall                be deemed                taken nor any document delivered until all have been taken and                delivered. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | At                the Closing, subject to all the terms and conditions of this Agreement,                Seller shall execute (where appropriate) and deliver or make reasonably                available to Purchaser: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | A                special warranty deed transferring title to the Real Property to                Purchaser; |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (2) | A                Bill of Sale, in substantially the form attached hereto as Exhibit                2.2(b)(2) (the “Bill of Sale”), transferring to Purchaser all of                Seller’s interest in the Personal Property, the Loans and other                assets; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | An                Assignment and Assumption Agreement, in substantially the form attached                hereto as Exhibit 2.2(b)(3) (the “Assignment and Assumption                Agreement”), assigning Seller’s interest in the Equipment Leases, the                Assignable Contracts, the Real Property Leases, the Safe Deposit                Contracts, and the Deposit                Liabilities; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Consents                from third persons that are required to effect the assignments set                forth                in the Assignment and Assumption Agreement, including, but not limited                to,                the lessors under the Equipment Leases to the extent                required.  With respect to any Equipment Lease for which the                required consent is not obtained from the lessor prior to the Closing,                in                lieu of such consent Seller may provide either (at Seller’s sole option),                a special indemnity in form and content reasonably satisfactory to                Purchaser against any loss to Purchaser resulting from the failure                to                obtain such consent, or the substitution by Seller and delivery hereunder                to Purchaser of equipment comparable to the equipment subject to                such                Equipment Lease; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Seller’s                keys to the safe deposit boxes and Seller’s records related to the safe                deposit box business at the Banking                Centers; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Seller’s                files and records related to the Loans, including, without limitation,                original executed notes and Loan                documents; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Any                collateral securing the Loans; |
|--------|-----|---------------------------------------------------|

|   | (8) | Seller’s                records related to the Deposit Liabilities assumed by                Purchaser; |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (9) | Immediately                available funds in the net amount shown as owing to Purchaser by                Seller on                the Closing Statement, if any; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | The                Coins and Currency; |
|--------|------|----------------------------------------|

|   | (11) | Such                of the other assets to be purchased as shall be capable of physical                delivery; |
|--------|------|------------------------------------------------------------------------------------------------------------------|

----

|  | (12) | A                certificate of a proper officer of Seller, dated as of the date of                Closing, certifying to the fulfillment of all conditions that are                the                obligation of Seller and that all of the representations and warranties                of                Seller set forth in this Agreement remain true and correct in all                material                respects as of the Effective Time; |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | A                certified copy of a resolution of the Board of Directors of Seller,                or its                Executive Committee, approving the sale of the Banking Centers                contemplated hereby; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (14) | Such                certificates and other documents as Purchaser and its counsel may                reasonably require to evidence the receipt by Seller of all necessary                corporate and regulatory authorizations and approvals for the consummation                of the transactions provided for in this                Agreement; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (15) | A                Closing Statement, substantially in the form attached hereto as Exhibit                2.2(b)(14) (the “Closing                Statement”); |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (16) | The                Pre-Closing Balance Sheet; |
|--------|------|-----------------------------------------------|

|   | (17) | An                affidavit of Seller certifying that Seller is not a “foreign person” as                defined in the federal Foreign Investment in Real Property Tax Act                of                1980; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (18) | The                Power of Attorney substantially in the form attached hereto as Exhibit                1.4(k); and |
|--------|------|----------------------------------------------------------------------------------------------------------------------|

|   | (19) | Such                executed customary affidavits and documents as Purchaser’s title insurer                may require as a condition to issuing owner’s title insurance policies to                Purchaser with respect to the Real                Property. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | It                is understood that the items listed in subsections (b)(5) and (9)                shall be                transferred after the Banking Centers have closed for business on                the                Closing Date and that the records listed in subsections (b)(6) and                (7)                will be transferred as soon as practicable after the Closing, but                in no                event more than five business days after the Closing.  For                purposes of this Agreement, the term “business day” shall mean any day                that both the Buyer and the Seller are open for                business. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | At                the Closing, subject to all the terms and conditions of this Agreement,                Purchaser shall execute (where appropriate) and deliver to                Seller: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | The                Assignment and Assumption                Agreement; |
|--------|-----|------------------------------------------------------------------------|

|   | (2) | A                certificate and receipt acknowledging the delivery and receipt of                possession of the property and records referred to in this                Agreement; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Immediately                available funds in the net amount shown as owing to Seller by Purchaser                on                the Closing Statement, if any; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (4) | A                certificate of a proper officer of Purchaser, dated as of the date                of                Closing, certifying to the fulfillment of all conditions that are                the                obligation of Purchaser and that all of the representations and warranties                of Purchaser set forth in this Agreement remain true and correct                in all                material respects as of the Effective                Time; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | A                certified copy of a resolution of the Board of Directors, or its                Executive                Committee, of Purchaser approving the purchase of the Banking Centers                contemplated hereby; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Such                certificates and other documents as Seller and its counsel may reasonably                require to evidence the receipt by Purchaser of all necessary corporate                and regulatory authorizations and approvals for the consummation                of the                transactions provided for in this Agreement;                and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | The                Closing Statement. |
|--------|-----|---------------------------------------|

|   | (d) | All                instruments, agreements and certificates described in this Section                2.2                shall be in form and substance reasonably satisfactory to the parties’                respective legal counsel. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Not                later than 45 business days after the Effective Time, Seller shall                deliver                to Purchaser a balance sheet dated as of the Effective Time and prepared                in accordance with generally accepted accounting principles consistently                applied reflecting the assets sold and assigned and the liabilities                transferred and assumed hereunder (including any adjustments to the                same                required by this Agreement) (the “Post-Closing Balance Sheet”).                Additionally, Seller shall deliver to Purchaser within such 45-day                period                a list of Loans purchased, individually identified by account number,                which list shall be appended to the Bill of Sale.  Seller shall                afford Purchaser and its accountants and attorneys the opportunity                to                review all work papers and documentation used by Seller in preparing                the                Post-Closing Balance Sheet.  Within 15 business days following                delivery of the Post-Closing Balance Sheet (the “Adjustment Payment                Date”), Seller and Purchaser shall effect the transfer of any funds by                wire transfer as may be necessary to reflect changes in such assets                and                liabilities between the Pre-Closing Balance Sheet and the Post-Closing                Balance Sheet together with interest thereon computed from the Effective                Time to the Adjustment Payment Date at the applicable Federal Funds                Rate                (as hereinafter defined). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | In                the event that a dispute arises as to the appropriate amounts to                be paid                to either party on the Adjustment Payment Date, each party shall                pay to                the other on such Adjustment Payment Date all amounts other than                those as                to which a dispute exists.  Any disputed amounts retained by a                party that are later found to be due to the other party shall be                paid to                such other party promptly upon resolution with interest thereon from                the                Adjustment Payment Date to the date paid at a per annum rate (calculated                daily based on a 360 day year) the applicable Federal Funds                Rate.  In the event of such a dispute, personnel one level                senior to the |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | personnel                handling the dispute for both parties will attempt to resolve the                dispute                using their good faith business judgment.  In the event that                such discussions do not resolve a dispute, either party may submit                the                matter to a firm of certified public accountants mutually agreeable                to                Seller and Purchaser (the “Mediator”), which shall determine such dispute                in accordance with the terms and conditions of this Agreement within                30                calendar days after the submission.  The parties shall each pay                one-half of the fees and expenses of the Mediator.  The                Post-Closing Balance Sheet, as agreed upon by the parties and determined                under this subsection, shall be final and binding upon the                parties. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The                Federal Funds Rate shall mean the rate quoted for Federal Funds in                the                Money Rates Column of the Wall Street Journal, adjusted daily, for                the                period beginning with the first calendar day following the Effective                Time                and ending with the Adjustment Payment                Date. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ARTICLE      III**

**INDEMNIFICATION**

|   | (a) | A                claim for indemnity under Sections 3.1 or 3.2 of this Agreement shall                be                made by the claiming party prior to the first anniversary of the                date on                which the Effective Time occurred by the giving of written notice                thereof                to the other party. Such notice shall set forth in reasonable detail                the                basis upon which such claim for indemnity is made. In the event that                any                such claim is made within such period, the indemnity relating to                such                claim shall survive until such claim is resolved. Claims not made                within                such period shall not be eligible for indemnification and shall be                deemed                waived and relinquished. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | In                the event that any person or entity not a party to this Agreement                shall                make any demand or claim or file or threaten to file any lawsuit,                which                demand, claim or lawsuit may result in any liability, damage or loss                to                one party hereto of the kind for which such party is entitled to                indemnification pursuant to Section 3.1 or 3.2, then, after written                notice                is provided by the indemnified party to the indemnifying party of                such                demand, claim or lawsuit, the indemnifying party shall have the option,                at                its cost and expense, to retain counsel for the indemnified party                to                defend any such demand, claim or lawsuit.  In the event that the                indemnifying party shall fail to respond within ten business days                after                receipt of such notice of any such demand, claim or lawsuit, then                the                indemnified party shall retain counsel and conduct the defense of                such                demand, claim or lawsuit as it may in its discretion deem proper,                at the                cost and expense of the indemnifying party.  In effecting any                settlement of any such demand, claim or lawsuit, an indemnified party                shall act in good faith, shall consult with the indemnifying party                and                shall enter into only such settlement as the indemnifying party shall                approve (the indemnifying party’s approval will be implied if it does not                respond within ten business days of its receipt of the written notice                of                such settlement offer). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Notwithstanding                the provisions of Section 3.1 and 3.2, in no event will the aggregate                liability of Seller under Section 3.1, or Buyer under Section 3.2,                exceed                the sum of the Property Value and the premium for Deposit Liabilities,                described in Section 1.2(a) (1) and                (2). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Notwithstanding                anything to the contrary in this Agreement, including Sections 3.1,                3.2                and 3.4(a), the limitations set forth in Section 3.4(a) shall not                apply to                any Loss relating to, arising out of or resulting from fraudulent                misrepresentation or fraudulent breach of any warranty or any claim                with                respect to fraudulent inducement to enter into this                Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Notwithstanding                anything to the contrary in this Agreement, the parties shall have                no                obligations under this Article III for any consequential liability,                damage                or loss that the indemnified party may                suffer. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**ARTICLE      IV**

**REPRESENTATIONS      AND WARRANTIES OF SELLER**

----

|   | Seller                makes the following representations regarding the Real                Property: |
|--------|-------------------------------------------------------------------------------------------------------|

|   | (a) | Except                as specifically set forth herein, Seller has no Knowledge of any                condemnation proceedings pending against the Real Property and, to                the                Knowledge of the Seller, no such proceeding is threatened or                proposed. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Except                as specifically set forth herein, Seller has not entered into any                agreement regarding the Real Property, and the Real Property is not                subject to any claim, demand, suit, lien, proceeding or litigation                of any                kind, pending or outstanding, or to the Knowledge of Seller, threatened                or                likely to be made or instituted, that would in any way be binding                upon                Purchaser or its successors or assigns or materially affect or limit                Purchaser’s or its successors’ or assigns’ use and enjoyment of the Real                Property or that would materially limit or restrict Seller’s right or                ability to enter into this Agreement and consummate the sale and                purchase                contemplated hereby. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Seller                has and will transfer at Closing by a special warranty deed good                and                marketable fee simple title to the Real Property and, at Closing,                will own                the Real Property outright subject to no Title Defects, except as                provided                for under Section 1.10. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      V**

**REPRESENTATIONS      AND WARRANTIES OF PURCHASER**

**Purchaser      is a Virginia chartered bank      duly organized, validly existing and in good standing under the laws of the      Commonwealth of Virginia.  Purchaser has the corporate power and**
**authority      to own the properties being acquired, to assume the liabilities being      transferred and to effect the transactions contemplated      herein.**

----

**ARTICLE      VI**

**OBLIGATIONS      OF PARTIES PRIOR TO AND AFTER EFFECTIVE TIME**

----

|   | (i) | Carry                on, or cause to be carried on, the business of the Banking Centers                substantially in the same manner as on the date hereof, use all reasonable                efforts to preserve intact its current business organization, and                preserve                its business relationships with depositors, customers and others                having                business relationships with it and whose accounts will be retained                at the                Banking Centers; provided that Seller need not advertise or promote                new or                substantially new customer services in the principal market areas                of the                Banking Centers; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Cooperate                with and assist Purchaser in assuring the orderly transition of the                business of the Banking Centers to Purchaser from Seller;                and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Maintain                  the Real Property and the Personal Property in their current condition,                  ordinary wear and tear excepted. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | Between                  the date hereof and the Effective Time, Seller shall not, without                  the                  prior written consent of Purchaser: |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Acquire                  or dispose of any fixed assets with respect to the Banking Centers,                  other                  than pursuant to commitments made on or before the date of this                  Agreement                  and except for replacement of furniture, furnishings and equipment                  and                  normal maintenance and refurbishing in the ordinary course of business                  of                  the Banking Centers, provided that this Section shall not require                  the                  replacement of any such items by                  Seller; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Increase                  or agree to increase the salary, remuneration or compensation or                  other                  employment benefits of persons employed at the Banking Centers                  other than                  in accordance with Seller’s customary policies or bank-wide changes                  consistent with past practices, or pay or agree to pay any uncommitted                  bonus to any such employees other than regular bonuses granted                  based on                  historical practice; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iii) | Change                any pricing in deposit accounts at the Banking Centers, except as                may be                required in the ordinary course of business consistent with past                practices; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Materially                increase the staffing levels at any Banking Center or effect changes                in                branch personnel employed as of the Effective Time other than in                the                ordinary course of business consistent with past practices;                or |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | Enter                into any agreement to sell, grant or convey the Real Property or                any part                thereof, including easements or rights of way over the Real                Property. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      VII**

**CONDITIONS      TO PURCHASER’S OBLIGATIONS**

----

|   | (a) | Purchaser                and Seller shall have received all necessary regulatory approvals                of the                transactions provided in this Agreement, all notice and waiting periods                required by law to pass shall have passed, no proceeding to enjoin,                restrain, prohibit or invalidate such transactions shall have been                instituted or threatened, and any conditions of any regulatory approval                shall have been met. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Such                approvals shall not have imposed any condition that is materially                disadvantageous or burdensome to                Purchaser. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ARTICLE      VIII**

**CONDITIONS      TO SELLER’S OBLIGATIONS**

----

|   | (a) | Purchaser                and Seller shall have received from the appropriate regulatory authorities                approval of the transactions contemplated herein, waiting periods                required                by law to pass shall have passed, no proceeding to enjoin, restrain,                prohibit or invalidate such transactions shall have been instituted                or                threatened, and any conditions of any regulatory approval shall have                been                met. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Such                approvals shall not have imposed any condition that is materially                disadvantageous or burdensome to                Seller. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ARTICLE      IX**

**TERMINATION**

|   | This                Agreement may be terminated in any of the following                ways: |
|--------|----------------------------------------------------------------------------------------------|

|   | (a) | by                either Purchaser or Seller, in writing five calendar days in advance                of                such termination, if the Closing has not occurred by December 31,                2007; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | at                any time on or prior to the Effective Time by the mutual consent                in                writing of Purchaser and Seller; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | by                Purchaser in writing if the conditions set forth in Article VII (with                the                exception of delivery of items required to be delivered at Closing)                of                this Agreement shall not have been met by Seller or waived in writing                by                Purchaser within                30 calendar days following the date of all approvals by regulatory                agencies and after all statutory waiting periods have                expired; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | by                Seller in writing if the conditions set forth in Article VIII of                this                Agreement shall not have been met by Purchaser or waived in writing                by                Seller within 30 calendar days following the date of all approvals                by                regulatory agencies and after all statutory waiting periods have                expired; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | any                time prior to the Effective Time, by Purchaser or Seller in writing                if the                other shall have been in breach of any representation and warranty                in any                material respect (as if such representation and warranty had been                made on                and as of the date hereof and on the date of the notice of breach                referred                to below), or in breach of any covenant, undertaking or obligation                contained herein, and such breach has not been cured by the earlier                of 30                calendar days after the giving of notice to the breaching party of                such                breach or the Effective Time; provided, however, that there shall                be no                cure period in connection with any breach of Section 6.3, so long                as such                breach by Purchaser was not caused by any action or inaction of Seller,                and Seller may terminate this Agreement immediately if regulatory                applications are not filed within 30 calendar days after the date                of this                Agreement as provided in that Section;                or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (f) | by                Seller or Purchaser in writing at any time after any applicable regulatory                authority has denied approval of any application of Purchaser for                approval                of the transactions contemplated herein, and all applicable appeals                have                been exhausted or the time for filing such appeals shall have                expired. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | by                Purchaser in writing, as expressly provided for in Section                1.10; |
|--------|-----|---------------------------------------------------------------------------------------------------|

|   | In                the event of termination pursuant to Section 9.1, and except as otherwise                stated therein, written notice thereof shall be given to the other                party,                and this Agreement shall terminate immediately upon receipt of such                notice                unless an extension is consented to by the party having the right                to                terminate. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | each                party will return all documents, work papers and other materials                of the                other party, including photocopies or other duplications thereof,                relating                to this transaction, whether obtained before or after the execution                hereof, to the party furnishing the same;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all                information received by either party hereto with respect to the business                of the other party (other than information that is a matter of public                knowledge or that heretofore has been published in any publication                for                public distribution or filed as public information with any governmental                authority) shall not at any time be used for any business purpose                by such                party or disclosed by such party to third                persons. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      X**

**MISCELLANEOUS      PROVISIONS**

----

| If                          to Seller:    | FNB                          Southeast                                         |
|-------------------------------------------|--------------------------------------------------------------------------------|
|                                      | Pressley                          A. Ridgill                                   |
|                                      | President                          and Chief Executive Officer                 |
|                                      | FNB                          Financial Services Corporation                    |
|                                      | 1501                          Highwoods Boulevard                              |
|                                      | Suite                          400                                             |
|                                      | Greensboro,                          North Carolina 27410                      |
|                                      | Fax:                          336-369-0935                                     |
|                                      | PRidgill@fnbsoutheast.com                                                      |
|                                      |                                                                           |
| With                          a copy to:  | Mr.                          Robert A. Singer                                  |
|                                      | Brooks,                          Pierce, McLendon, Humphrey & Leonard, LLP |
|                                      | Suite                          2000                                            |
|                                      | Renaissance                          Plaza                                     |
|                                      | 230                          North Elm Street                                  |
|                                      | Greensboro,                          North Carolina 27401                      |
|                                      | Fax:  336-239-9123                                                   |
|                                      | RSinger@brookspierce.com                                                       |
|                                      |                                                                           |
| If                          to Purchaser: | Mr.                          Todd Asbury                                       |
|                                      | Chief                          Financial Officer                               |
|                                      | New                          Peoples Bankshares, Inc.                          |
|                                      | 67                          Commerce Drive                                     |
|                                      | Honaker,                          Virginia 24260                               |
|                                      | Fax:                          276-873-7003                                     |
|                                      | Todd@NewPeoplesBank.com                                                        |
|                                      |                                                                           |
| with                          a copy to:  | Ms.                          Laura Zinanni                                     |
|                                      | Williams                          Mullen                                       |
|                                      | Two                          James Center                                      |
|                                      | 1021                          East Cary Street                                 |
|                                      | Richmond,                          Virginia  23219                   |
|                                      | Fax                          Number:  804-783-6507                   |
|                                      | lzinanni@williamsmullen.com                                                    |

----

----

| SELLER:                             |
|-------------------------------------|
|                                |   |
| FNB                    SOUTHEAST    |
|                                |   |
| By:                                 |   |
| Name:                               |   |
| Title:                              |   |
|                                |   |
|                                |   |
| PURCHASER:                          |
|                                |   |
| NEW                    PEOPLES BANK |
|                                |   |
| By:                                 |   |
| Name:                               |   |
| Title:                              |   |

----

**PURCHASE      AND ASSUMPTION AGREEMENT**

**Between**

**FNB      Southeast**

**and      New Peoples Bank**

| Exhibit                    No. | Description                                                               |
|--------------------------------|---------------------------------------------------------------------------|
|                           |                                                                      |
| 1                              | List                    of Banking Centers                                |
| 1.1(a)(3)                      | Schedule                    of Leases and Contracts                       |
| 1.1(b)                         | List                    of Excluded Assets                                |
| 1.3(a)                         | Deposit                    Liabilities                                    |
| 1.4(a)                         | Loans                                                                     |
| 1.4(b)                         | Excluded                    Loans                                         |
| 1.4(k)                         | Power                    of Attorney                                      |
| 1.11                           | Purchase                    Price Allocation                              |
| 2.2(b)(2)                      | Form                    of Bill of Sale                                   |
| 2.2(b)(3)                      | Form                    of Assignment and  Assumption Agreement |
| 2.2(b)(14)                     | Form                    of Closing Statement                              |

----

**EXHIBIT      1**

**PURCHASE      AND ASSUMPTION AGREEMENT**

**Between**

**FNB      Southeast**

**and**
**New      Peoples Bank**

**List      of Banking Centers**

**1.           700      East Morgan Avenue, Pennington Gap, VA 24277**

**2.           600      Trent Street, Norton, VA 242273**

----

**EXHIBIT      1.1(a)(3)**

**PURCHASE      AND ASSUMPTION AGREEMENT**

**Between**

**FNB      Southeast**

**and**
**New      Peoples Bank**

**Schedule      of Leases and Contracts**

----

**EXHIBIT      1.1(b)**

**PURCHASE      AND ASSUMPTION AGREEMENT**

**Between**

**FNB      Southeast**

**and**
**New      Peoples Bank**

**List      of Excluded Assets**

**None**

----

**EXHIBIT      1.3(a)**

**PURCHASE      AND ASSUMPTION AGREEMENT**

**Between**

**FNB      Southeast**

**and**
**New      Peoples Bank**

**Deposit      Liabilities**

----

**EXHIBIT      1.4(a)**

**PURCHASE      AND ASSUMPTION AGREEMENT**

**Between**

**FNB      Southeast**

**and**
**New      Peoples Bank**

**Loans**

----

**EXHIBIT      1.4(b)**

**PURCHASE      AND ASSUMPTION AGREEMENT**

**Between**

**FNB      Southeast**

**and**
**New      Peoples Bank**

**Excluded      Loans**

----

**EXHIBIT      1.4(k)**

**PURCHASE      AND ASSUMPTION AGREEMENT**

**Between**

**FNB      Southeast**

**and**
**New      Peoples Bank**

----

| WITNESSES:                     |   |   | FNB                      SOUTHEAST |
|--------------------------------|--------|--------|------------------------------------|
|                           |   |   |                               |   |
|                           |   | By:    |                               |
|                           |   |   |                               |   |
|                           |   | Its:   |                               |
|                           |   |   |                               |   |
|                           |   |   |                               |   |
| STATE                      OF  |   |   |                               |   |
| COUNTY                      OF |   |   |                               |   |

|   |                             |
|--------|----------------------------------|
|   | Notary                    Public |

----

**EXHIBIT      1.11**

**PURCHASE      AND ASSUMPTION AGREEMENT**

**Between**

**FNB      Southeast**

**and**
**New      Peoples Bank**

**PURCHASE      PRICE ALLOCATION**

| Real                Property: | $1,073,600; |
|-------------------------------|-------------|

| Deposit                Premium: | 8.08%                of the Deposit Liabilities; |
|---------------------------------|--------------------------------------------------|

| Loans: | Net                Book Value (as defined in Section 1.2(d)), including accrued interest,                for                the as set forth in Section 1.4; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Personal                Property: | Net                Book Value (as defined in Section 1.2(d));                and |
|-----------------------------------|----------------------------------------------------------------------------------|

| Coins                and Currency: | Face                value. |
|------------------------------------|----------------------------|

----

**EXHIBIT      2.2(b)(2)**

**PURCHASE      AND ASSUMPTION AGREEMENT**

**Between**

**FNB      Southeast**

**and**
**New      Peoples Bank**

**Bill      of Sale**

**THIS      BILL OF SALE is dated this ____      day of ______________, 2007, by FNB Southeast, a North Carolina chartered bank      (“Seller”).**

|   | (a) | All                furniture, fixtures, leasehold improvements, equipment and other                tangible                personal property owned by Seller and located at the Banking Centers,                except for those items listed in Exhibit 1.1(b) of the                Agreement; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | All                of the loans maintained, serviced and listed in Seller’s records as loans                of the Banking Centers and transferred to Purchaser pursuant to the                Agreement (except for those loans described in Section 1.4(b) of                the                Agreement), a list of such specific loans to be attached hereto within                30                business days after the Effective Time as defined in the Agreement                (the                “Loans”); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | All                of Seller’s files and records related to the Loans, the Equipment Leases                and Deposit Liabilities (as such terms are defined or described in                the                Agreement); and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | All                Coins and Currency as defined in the                Agreement. |
|--------|-----|-----------------------------------------------------------------------------------|

----

|   | FNB                  SOUTHEAST |   |
|--------|--------------------------------|--------|
|   |                           |   |   |
|   | By:                            |   |   |
|   | Name:                          |   |   |
|   | Title:                         |   |   |

----

**EXHIBIT      2.2(b)(3)**

**PURCHASE      AND ASSUMPTION AGREEMENT**

**Between**

**FNB      Southeast**

**and**
**New      Peoples Bank**

**Assignment      and Assumption Agreement**

**THIS      ASSIGNMENT AND ASSUMPTION      AGREEMENT is entered into this ____ day of _______________, 2007, by and between      FNB Southeast, a North Carolina chartered bank (“Seller”), and New Peoples Bank,      a Virginia chartered bank (“Purchaser”).**

|   | (a) | All                Real Property Leases, Equipment Leases and Assignable Contracts as                defined                in the Agreement; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | All                deposit accounts located at the Banking Centers, except for those                deposit                accounts and liabilities described in Section 1.3(b) of the Agreement,                and                all merchant services accounts associated therewith;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | FNB                    SOUTHEAST    |   |
|--------|-------------------------------------|--------|
|   |                                |   |   |
|   |                                |   |   |
|   | By:                                 |   |   |
|   | Name:                               |   |   |
|   | Title:                              |   |   |
|   |                                |   |   |
|   |                                |   |   |
|   | NEW                    PEOPLES BANK |   |
|   |                                |   |
|   |                                |   |
|   | By:                                 |   |   |
|   | Name:                               |   |   |
|   | Title:                              |   |   |

----

**EXHIBIT      2.2(b)(14)**

**PURCHASE      AND ASSUMPTION AGREEMENT**

**Between**

**FNB      Southeast**

**and**
**New      Peoples Bank**

**Closing      Statement**

** (Pre-Closing      Balance Sheet as of ______________)**

| **Cash                    due Purchaser for**:                                                    |         |
|---------------------------------------------------------------------------------------------------|--------------|
|                                                                                              |         |
|    Deposit                    liabilities (including                               |         |
|     accrued                    interest)                                      | $___________ |
|                                                                                              |         |
|    Pro                    rata safe deposit box rental                             | ____________ |
|                                                                                              |         |
|    Pro                    rata property taxes*                                     | ____________ |
|                                                                                              |         |
|    Recordation                    Fees*                                            | ____________ |
|                                                                                              |         |
|    Total                    Cash due Purchaser                                     | $___________ |
|                                                                                              |         |
| **Cash                    due Seller for:**                                                       |         |
|                                                                                              |         |
|    Real                    and Personal Property                                   | ____________ |
|                                                                                              |         |
|    Coins                    and Currency                                           | ____________ |
|                                                                                              |         |
|    Premium                    for  Deposit Liabilities and Franchise Tax | ____________ |
|                                                                                              |         |
|    Loans                                                                           |         |
|     (including                    accrued interest)                           | ____________ |
|                                                                                              |         |
|     Recordation                    Fees*                                      | ____________ |
|                                                                                              |         |
|     Pro                    rata property taxes*                               | ____________ |
|                                                                                              |         |
|    Pro                    rata FDIC insurance                                      | ____________ |

----

| *                  Only for party that has paid or is required to pay the                  obligation. |             |
|--------------------------------------------------------------------------------------------------------|------------------|
|                                                                                                   |             |
|    Prepayments                                                                          | ____________     |
|                                                                                                   |             |
|    Total                  Cash due Seller                                               | $___________     |
|                                                                                                   |             |
|    Net                  cash due Purchaser/Seller                                       | $**___________** |
|                                                                                                   |             |

----

|        | FNB                SOUTHEAST    |   |
|--------|---------------------------------|--------|
|   |                            |   |   |
|   |                            |   |   |
|   | By:                             |   |   |
|   | Name:                           |   |   |
|   | Title:                          |   |   |
|   |                            |   |   |
|   |                            |   |   |
|   | NEW                PEOPLES BANK |   |
|   |                            |   |
|   |                            |   |
|   | By:                             |   |   |
|   | Name:                           |   |   |
|   | Title:                          |   |   |