Document:

Ex-10.2(a) Copy of Amendment

 

EXHIBIT 10.2a

FIRST AMENDMENT

TO THE

KENSINGTON BANKSHARES, INC.

INCENTIVE AND NON-STATUTORY STOCK OPTION PLAN

     This First Amendment to the Kensington Bankshares, Inc. Incentive and Non-Statutory Stock
Option Plan (“Plan”) is effective November 2, 2005.

WITNESSETH:

     WHEREAS, Kensington Bankshares, Inc. (“Company”) adopted the Plan, effective April 9, 2001,
as an incentive for officers, employees, and certain other individuals that provide services to or
act as directors of the Company and its subsidiaries to obtain common stock of the Company, par
value $.01 per share (“Common Stock”);

     WHEREAS, Section 7 of the Plan authorizes the Board of Directors of the Company (“Board”) to
amend the Plan, subject to shareholder approval of certain provisions contained within this First
Amendment;

     WHEREAS, the Board desires to (1) increase the maximum aggregate number of shares of Common
Stock that may be issued under the Plan, (2) increase the aggregate number of shares that may be
granted to non-employee members of the Board, and (3) clarify that the purchase price of shares
obtained by exercise of options granted under the Plan shall not be less than fair market value of
the Common Stock on the date of grant of the options; and

     WHEREAS, this First Amendment has been approved by the Board, and shall become effective on
the date specified below, but will become null and void ab initio, and all options granted with
respect to Common Stock in excess of the amount previously available for grant under the Plan (as
determined without regard to the Common Stock added by this First Amendment) will also become null
and void ab initio, unless the provisions of this First Amendment relating to the increase in the
maximum aggregate number of shares of Common Stock to be issued under the Plan is approved by the
shareholders within 12 months of the date of the Board meeting authorizing this First Amendment.

     NOW THEREFORE, the Plan is hereby amended as follows:

     1. Section 3.1 is amended by adding the following sentence to the end of the
paragraph:

“In addition, on and after November 2, 2005 there shall be
additional shares of the Company’s authorized but unissued Common
Stock available for grant under the Plan, but not to exceed 250,000
shares.”

     2. Section 4.1 is amended by deleting the last sentence of the
paragraph and replacing it with the following:

 

 

“Non-employee directors may be granted options to purchase in the aggregate up to
30,000 shares of the Company’s Common Stock.”

     3.    Section 5.1.4 is amended by deleting the section in its entirety and replacing it
with the following:

“The purchase price per share of the Common Stock under each Incentive Option and
each Non-statutory Option shall be specified by the Board at the time the option
is granted and shall not be less than the fair market value of the shares of
Common Stock on the date the option is granted.”Ex-10.3 Copy of Agreement With Superior Bancorp

 

EXHIBIT
10.3

AGREEMENT
AND PLAN OF MERGER

by and between

KENSINGTON BANKSHARES, INC.

and

THE BANC CORPORATION

dated as of

March
6, 2006

 

 

    TABLE OF
    CONTENTS

 

	 	 	 	 	 	 	 	 	 
	

    Caption

	
 
	
 
	
 
	

    Page

	 

	
    ARTICLE 1
    
	
 
	
 
	
    A-1
	
 

	

    NAME
    

	
 
	
 
	
    A-1
	
 

	
 
	
    1.1
	
 
	
 
	
    Name
    
	
 
	
 
	
    A-1
	
 

	

    ARTICLE 2
    

	
 
	
 
	
    A-1
	
 

	

    MERGER TERMS AND CONDITIONS
    

	
 
	
 
	
    A-1
	
 

	
 
	
    2.1
	
 
	
 
	
    Applicable Law
    
	
 
	
 
	
    A-1
	
 

	
 
	
    2.2
	
 
	
 
	
    Corporate Existence
    
	
 
	
 
	
    A-1
	
 

	
 
	
    2.3
	
 
	
 
	
    Certificate of Incorporation and
    Bylaws
    
	
 
	
 
	
    A-1
	
 

	
 
	
    2.4
	
 
	
 
	
    Resulting Corporation’s
    Officers and Board
    
	
 
	
 
	
    A-1
	
 

	
 
	
    2.5
	
 
	
 
	
    Stockholder Approvals
    
	
 
	
 
	
    A-2
	
 

	
 
	
    2.6
	
 
	
 
	
    Further Acts
    
	
 
	
 
	
    A-2
	
 

	
 
	
    2.7
	
 
	
 
	
    Effective Date and Closing
    
	
 
	
 
	
    A-2
	
 

	
 
	
    2.8
	
 
	
 
	
    Subsidiary Bank
    
	
 
	
 
	
    A-2
	
 

	

    ARTICLE 3
    

	
 
	
 
	
    A-2
	
 

	

    CONVERSION OF ACQUIRED CORPORATION
    STOCK
    

	
 
	
 
	
    A-2
	
 

	
 
	
    3.1
	
 
	
 
	
    Conversion of Acquired Corporation
    Stock
    
	
 
	
 
	
    A-2
	
 

	
 
	
    3.2
	
 
	
 
	
    Surrender of Acquired Corporation
    Stock
    
	
 
	
 
	
    A-3
	
 

	
 
	
    3.3
	
 
	
 
	
    Fractional Shares
    
	
 
	
 
	
    A-3
	
 

	
 
	
    3.4
	
 
	
 
	
    Adjustments
    
	
 
	
 
	
    A-3
	
 

	
 
	
    3.5
	
 
	
 
	
    Buyer Stock
    
	
 
	
 
	
    A-3
	
 

	
 
	
    3.6
	
 
	
 
	
    Dissenting Stockholder Rights
    
	
 
	
 
	
    A-3
	
 

	

    ARTICLE 4
    

	
 
	
 
	
    A-4
	
 

	

    REPRESENTATIONS, WARRANTIES AND
    COVENANTS OF BUYER
    

	
 
	
 
	
    A-4
	
 

	
 
	
    4.1
	
 
	
 
	
    Organization
    
	
 
	
 
	
    A-4
	
 

	
 
	
    4.2
	
 
	
 
	
    Capital Stock.
    
	
 
	
 
	
    A-4
	
 

	
 
	
    4.3
	
 
	
 
	
    Taxes
    
	
 
	
 
	
    A-4
	
 

	
 
	
    4.4
	
 
	
 
	
    No Conflict with Other Instrument
    
	
 
	
 
	
    A-5
	
 

	
 
	
    4.5
	
 
	
 
	
    Absence of Material Adverse Change
    
	
 
	
 
	
    A-5
	
 

	
 
	
    4.6
	
 
	
 
	
    Approval of Agreement
    
	
 
	
 
	
    A-5
	
 

	
 
	
    4.7
	
 
	
 
	
    Tax Treatment
    
	
 
	
 
	
    A-5
	
 

	
 
	
    4.8
	
 
	
 
	
    Title and Related Matters
    
	
 
	
 
	
    A-5
	
 

	
 
	
    4.9
	
 
	
 
	
    Subsidiaries
    
	
 
	
 
	
    A-5
	
 

	
 
	
    4.10
	
 
	
 
	
    Contracts
    
	
 
	
 
	
    A-5
	
 

	
 
	
    4.11
	
 
	
 
	
    Litigation
    
	
 
	
 
	
    A-5
	
 

	
 
	
    4.12
	
 
	
 
	
    Compliance
    
	
 
	
 
	
    A-6
	
 

	
 
	
    4.13
	
 
	
 
	
    Registration Statement
    
	
 
	
 
	
    A-6
	
 

	
 
	
    4.14
	
 
	
 
	
    SEC Filings and Financial
    Statements; NASDAQ
    
	
 
	
 
	
    A-6
	
 

	
 
	
    4.15
	
 
	
 
	
    Form S-4
    
	
 
	
 
	
    A-7
	
 

	
 
	
    4.16
	
 
	
 
	
    Brokers
    
	
 
	
 
	
    A-7
	
 

	
 
	
    4.17
	
 
	
 
	
    Government Authorization
    
	
 
	
 
	
    A-7
	
 

	
 
	
    4.18
	
 
	
 
	
    Absence of Regulatory
    Communications
    
	
 
	
 
	
    A-7
	
 

	
 
	
    4.19
	
 
	
 
	
    Disclosure
    
	
 
	
 
	
    A-7
	
 

	
 
	
    4.20
	
 
	
 
	
    Absence of Certain Changes or
    Events
    
	
 
	
 
	
    A-7
	
 

    

    i

 

	 	 	 	 	 	 	 	 	 
	

    Caption

	
 
	
 
	
 
	

    Page

	 

	
 
	
    4.21
	
 
	
 
	
    Commitments
    
	
 
	
 
	
    A-8
	
 

	
 
	
    4.22
	
 
	
 
	
    Litigation
    
	
 
	
 
	
    A-8
	
 

	
 
	
    4.23
	
 
	
 
	
    Material Contract Defaults
    
	
 
	
 
	
    A-8
	
 

	
 
	
    4.24
	
 
	
 
	
    No Conflict with Other Instrument
    
	
 
	
 
	
    A-8
	
 

	
 
	
    4.25
	
 
	
 
	
    Governmental Authorization
    
	
 
	
 
	
    A-8
	
 

	
 
	
    4.26
	
 
	
 
	
    Absence of Material Adverse Change
    
	
 
	
 
	
    A-8
	
 

	
 
	
    4.27
	
 
	
 
	
    Approval of Agreements
    
	
 
	
 
	
    A-8
	
 

	
 
	
    4.28
	
 
	
 
	
    Loans; Adequacy of Allowance for
    Loan Losses
    
	
 
	
 
	
    A-9
	
 

	
 
	
    4.29
	
 
	
 
	
    Environmental Matters
    
	
 
	
 
	
    A-9
	
 

	
 
	
    4.30
	
 
	
 
	
    Labor Disputes
    
	
 
	
 
	
    A-9
	
 

	
 
	
    4.31
	
 
	
 
	
    Derivative Contracts
    
	
 
	
 
	
    A-9
	
 

	
 
	
    4.32
	
 
	
 
	
    Accounting; Tax and Regulatory
    Matters
    
	
 
	
 
	
    A-10
	
 

	
 
	
    4.33
	
 
	
 
	
    Opinion of Counsel
    
	
 
	
 
	
    A-10
	
 

	
 
	
    4.34
	
 
	
 
	
    Transactions with Management
    
	
 
	
 
	
    A-10
	
 

	
 
	
    4.35
	
 
	
 
	
    Accounting Controls
    
	
 
	
 
	
    A-10
	
 

	
 
	
    4.36
	
 
	
 
	
    Deposit Insurance
    
	
 
	
 
	
    A-10
	
 

	

    ARTICLE 5
    

	
 
	
 
	
    A-10
	
 

	

    REPRESENTATIONS, WARRANTIES AND
    COVENANTS OF ACQUIRED CORPORATION
    

	
 
	
 
	
    A-10
	
 

	
 
	
    5.1
	
 
	
 
	
    Organization
    
	
 
	
 
	
    A-10
	
 

	
 
	
    5.2
	
 
	
 
	
    Capital Stock
    
	
 
	
 
	
    A-10
	
 

	
 
	
    5.3
	
 
	
 
	
    Subsidiaries
    
	
 
	
 
	
    A-10
	
 

	
 
	
    5.4
	
 
	
 
	
    Financial Statements; Taxes
    
	
 
	
 
	
    A-11
	
 

	
 
	
    5.5
	
 
	
 
	
    Absence of Certain Changes or
    Events
    
	
 
	
 
	
    A-11
	
 

	
 
	
    5.6
	
 
	
 
	
    Title and Related Matters
    
	
 
	
 
	
    A-12
	
 

	
 
	
    5.7
	
 
	
 
	
    Commitments
    
	
 
	
 
	
    A-13
	
 

	
 
	
    5.8
	
 
	
 
	
    Charter and Bylaws
    
	
 
	
 
	
    A-13
	
 

	
 
	
    5.9
	
 
	
 
	
    Litigation; Compliance with Laws
    
	
 
	
 
	
    A-13
	
 

	
 
	
    5.10
	
 
	
 
	
    Material Contract Defaults
    
	
 
	
 
	
    A-14
	
 

	
 
	
    5.11
	
 
	
 
	
    No Conflict with Other Instrument
    
	
 
	
 
	
    A-14
	
 

	
 
	
    5.12
	
 
	
 
	
    Governmental Authorization
    
	
 
	
 
	
    A-14
	
 

	
 
	
    5.13
	
 
	
 
	
    Absence of Regulatory
    Communications
    
	
 
	
 
	
    A-14
	
 

	
 
	
    5.14
	
 
	
 
	
    Absence of Material Adverse Change
    
	
 
	
 
	
    A-14
	
 

	
 
	
    5.15
	
 
	
 
	
    Insurance
    
	
 
	
 
	
    A-14
	
 

	
 
	
    5.16
	
 
	
 
	
    Pension and Employee Benefit Plans
    
	
 
	
 
	
    A-14
	
 

	
 
	
    5.17
	
 
	
 
	
    Buy-Sell Agreement
    
	
 
	
 
	
    A-15
	
 

	
 
	
    5.18
	
 
	
 
	
    Brokers
    
	
 
	
 
	
    A-15
	
 

	
 
	
    5.19
	
 
	
 
	
    Approval of Agreements
    
	
 
	
 
	
    A-15
	
 

	
 
	
    5.20
	
 
	
 
	
    Disclosure
    
	
 
	
 
	
    A-15
	
 

	
 
	
    5.21
	
 
	
 
	
    Registration Statement
    
	
 
	
 
	
    A-15
	
 

	
 
	
    5.22
	
 
	
 
	
    Loans; Adequacy of Allowance for
    Loan Losses
    
	
 
	
 
	
    A-16
	
 

	
 
	
    5.23
	
 
	
 
	
    Environmental Matters
    
	
 
	
 
	
    A-16
	
 

	
 
	
    5.24
	
 
	
 
	
    Transfer of Shares
    
	
 
	
 
	
    A-16
	
 

	
 
	
    5.25
	
 
	
 
	
    Collective Bargaining
    
	
 
	
 
	
    A-16
	
 

	
 
	
    5.26
	
 
	
 
	
    Labor Disputes
    
	
 
	
 
	
    A-16
	
 

    

    ii

 

	 	 	 	 	 	 	 	 	 
	

    Caption

	
 
	
 
	
 
	

    Page

	 

	
 
	
    5.27
	
 
	
 
	
    Derivative Contracts
    
	
 
	
 
	
    A-17
	
 

	
 
	
    5.28
	
 
	
 
	
    Accounting, Tax and Regulatory
    Matters
    
	
 
	
 
	
    A-17
	
 

	
 
	
    5.29
	
 
	
 
	
    Offices
    
	
 
	
 
	
    A-17
	
 

	
 
	
    5.30
	
 
	
 
	
    Data Processing Systems
    
	
 
	
 
	
    A-17
	
 

	
 
	
    5.31
	
 
	
 
	
    Intellectual Property
    
	
 
	
 
	
    A-17
	
 

	
 
	
    5.32
	
 
	
 
	
    Administration of Trust Accounts
    
	
 
	
 
	
    A-17
	
 

	
 
	
    5.33
	
 
	
 
	
    Regulatory Approvals
    
	
 
	
 
	
    A-17
	
 

	
 
	
    5.34
	
 
	
 
	
    Opinion of Counsel
    
	
 
	
 
	
    A-17
	
 

	
 
	
    5.35
	
 
	
 
	
    Anti-takeover Provisions
    
	
 
	
 
	
    A-18
	
 

	
 
	
    5.36
	
 
	
 
	
    Transactions with Management
    
	
 
	
 
	
    A-18
	
 

	
 
	
    5.37
	
 
	
 
	
    Deposits
    
	
 
	
 
	
    A-18
	
 

	
 
	
    5.38
	
 
	
 
	
    Accounting Controls
    
	
 
	
 
	
    A-18
	
 

	
 
	
    5.39
	
 
	
 
	
    Deposit Insurance
    
	
 
	
 
	
    A-18
	
 

	
 
	
    5.40
	
 
	
 
	
    Registration Obligations
    
	
 
	
 
	
    A-18
	
 

	

    ARTICLE 6
    

	
 
	
 
	
    A-18
	
 

	

    ADDITIONAL COVENANTS
    

	
 
	
 
	
    A-18
	
 

	
 
	
    6.1
	
 
	
 
	
    Additional Covenants of Buyer
    
	
 
	
 
	
    A-18
	
 

	
 
	
    6.2
	
 
	
 
	
    Additional Covenants of Acquired
    Corporation
    
	
 
	
 
	
    A-20
	
 

	

    ARTICLE 7
    

	
 
	
 
	
    A-23
	
 

	

    MUTUAL COVENANTS AND AGREEMENTS
    

	
 
	
 
	
    A-23
	
 

	
 
	
    7.1
	
 
	
 
	
    Best Efforts, Cooperation
    
	
 
	
 
	
    A-23
	
 

	
 
	
    7.2
	
 
	
 
	
    Press Release
    
	
 
	
 
	
    A-23
	
 

	
 
	
    7.3
	
 
	
 
	
    Mutual Disclosure
    
	
 
	
 
	
    A-23
	
 

	
 
	
    7.4
	
 
	
 
	
    Access to Properties and Records
    
	
 
	
 
	
    A-23
	
 

	
 
	
    7.5
	
 
	
 
	
    Notice of Adverse Changes
    
	
 
	
 
	
    A-24
	
 

	

    ARTICLE 8
    

	
 
	
 
	
    A-24
	
 

	

    CONDITIONS TO OBLIGATIONS OF ALL
    PARTIES
    

	
 
	
 
	
    A-24
	
 

	
 
	
    8.1
	
 
	
 
	
    Approval by Shareholders
    
	
 
	
 
	
    A-24
	
 

	
 
	
    8.2
	
 
	
 
	
    Regulatory Authority Approval
    
	
 
	
 
	
    A-24
	
 

	
 
	
    8.3
	
 
	
 
	
    Litigation
    
	
 
	
 
	
    A-24
	
 

	
 
	
    8.4
	
 
	
 
	
    Registration Statement
    
	
 
	
 
	
    A-24
	
 

	
 
	
    8.5
	
 
	
 
	
    Tax Opinion
    
	
 
	
 
	
    A-25
	
 

	

    ARTICLE 9
    

	
 
	
 
	
    A-25
	
 

	

    CONDITIONS TO OBLIGATIONS OF
    ACQUIRED CORPORATION
    

	
 
	
 
	
    A-25
	
 

	
 
	
    9.1
	
 
	
 
	
    Representations, Warranties and
    Covenants
    
	
 
	
 
	
    A-25
	
 

	
 
	
    9.2
	
 
	
 
	
    Adverse Changes
    
	
 
	
 
	
    A-25
	
 

	
 
	
    9.3
	
 
	
 
	
    Closing Certificate
    
	
 
	
 
	
    A-25
	
 

	
 
	
    9.4
	
 
	
 
	
    Opinion of Counsel
    
	
 
	
 
	
    A-26
	
 

	
 
	
    9.5
	
 
	
 
	
    Fairness Opinion
    
	
 
	
 
	
    A-26
	
 

	
 
	
    9.6
	
 
	
 
	
    NASDAQ Listing
    
	
 
	
 
	
    A-26
	
 

	
 
	
    9.7
	
 
	
 
	
    Support for Legal Opinion
    
	
 
	
 
	
    A-26
	
 

	
 
	
    9.8
	
 
	
 
	
    Material Events
    
	
 
	
 
	
    A-26
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

    

    iii

 

	 	 	 	 	 	 	 	 	 
	

    Caption

	
 
	
 
	
 
	

    Page

	 

	

    ARTICLE 10
    

	
 
	
 
	
    A-26
	
 

	

    CONDITIONS TO OBLIGATIONS OF BUYER
    

	
 
	
 
	
    A-26
	
 

	
 
	
    10.1
	
 
	
 
	
    Representations, Warranties and
    Covenants
    
	
 
	
 
	
    A-26
	
 

	
 
	
    10.2
	
 
	
 
	
    Adverse Changes
    
	
 
	
 
	
    A-27
	
 

	
 
	
    10.3
	
 
	
 
	
    Closing Certificate
    
	
 
	
 
	
    A-27
	
 

	
 
	
    10.4
	
 
	
 
	
    Opinion of Counsel
    
	
 
	
 
	
    A-27
	
 

	
 
	
    10.5
	
 
	
 
	
    Controlling Shareholders
    
	
 
	
 
	
    A-27
	
 

	
 
	
    10.6
	
 
	
 
	
    Support for Legal Opinions
    
	
 
	
 
	
    A-28
	
 

	
 
	
    10.8
	
 
	
 
	
    Material Events
    
	
 
	
 
	
    A-28
	
 

	
 
	
    10.10
	
 
	
 
	
    Other Matters
    
	
 
	
 
	
    A-28
	
 

	

    ARTICLE 11
    

	
 
	
 
	
    A-28
	
 

	

    TERMINATION OF REPRESENTATIONS AND
    WARRANTIES
    

	
 
	
 
	
    A-28
	
 

	

    ARTICLE 12
    

	
 
	
 
	
    A-28
	
 

	

    NOTICES
    

	
 
	
 
	
    A-28
	
 

	

    ARTICLE 13
    

	
 
	
 
	
    A-29
	
 

	

    AMENDMENT OR TERMINATION
    

	
 
	
 
	
    A-29
	
 

	
 
	
    13.1
	
 
	
 
	
    Amendment
    
	
 
	
 
	
    A-29
	
 

	
 
	
    13.2
	
 
	
 
	
    Termination
    
	
 
	
 
	
    A-29
	
 

	

    ARTICLE 14
    

	
 
	
 
	
    A-30
	
 

	

    DEFINITIONS
    

	
 
	
 
	
    A-30
	
 

	

    ARTICLE 15
    

	
 
	
 
	
    A-35
	
 

	

    MISCELLANEOUS
    

	
 
	
 
	
    A-35
	
 

	
 
	
    15.1
	
 
	
 
	
    Expenses
    
	
 
	
 
	
    A-35
	
 

	
 
	
    15.2
	
 
	
 
	
    Benefit and Assignment
    
	
 
	
 
	
    A-35
	
 

	
 
	
    15.3
	
 
	
 
	
    Governing Law
    
	
 
	
 
	
    A-35
	
 

	
 
	
    15.4
	
 
	
 
	
    Counterparts
    
	
 
	
 
	
    A-35
	
 

	
 
	
    15.5
	
 
	
 
	
    Headings
    
	
 
	
 
	
    A-35
	
 

	
 
	
    15.6
	
 
	
 
	
    Severability
    
	
 
	
 
	
    A-35
	
 

	
 
	
    15.7
	
 
	
 
	
    Construction
    
	
 
	
 
	
    A-35
	
 

	
 
	
    15.8
	
 
	
 
	
    Confidentiality; Return of
    Information
    
	
 
	
 
	
    A-36
	
 

	
 
	
    15.9
	
 
	
 
	
    Equitable Remedies
    
	
 
	
 
	
    A-36
	
 

	
 
	
    15.10
	
 
	
 
	
    Attorneys’ Fees
    
	
 
	
 
	
    A-36
	
 

	
 
	
    15.11
	
 
	
 
	
    No Waiver
    
	
 
	
 
	
    A-36
	
 

	
 
	
    15.12
	
 
	
 
	
    Remedies Cumulative
    
	
 
	
 
	
    A-36
	
 

	
 
	
    15.13
	
 
	
 
	
    Entire Contract
    
	
 
	
 
	
    A-36
	
 

    

    iv

 

    AGREEMENT
    AND PLAN OF MERGER

 

    THIS AGREEMENT AND PLAN OF MERGER is made and entered
    into as of this the 6th day of March, 2006, by and between
    KENSINGTON BANKSHARES, INC.  (“Acquired
    Corporation”), a Florida corporation, and THE BANC
    CORPORATION (“Buyer”), a Delaware corporation.

 

    WITNESSETH

 

    WHEREAS, Acquired Corporation operates as a bank holding company
    for its wholly owned subsidiary, First Kensington Bank (the
    “Bank”), with its principal office in Tampa, Florida;

 

    WHEREAS, Buyer is a thrift holding company with a Subsidiary
    federal savings bank in Alabama and Florida;

 

    WHEREAS, Acquired Corporation wishes to merge with Buyer; and

 

    WHEREAS, it is the intention of Buyer and Acquired Corporation
    that such Merger shall qualify for federal income tax purposes
    as a “reorganization” within the meaning of
    Section 368(a) of the Code, as defined herein;

 

    NOW, THEREFORE, in consideration of the mutual covenants
    contained herein, the Parties hereto agree as follows:

 

    ARTICLE 1

    

 

    Name
    

 

    1.1  Name.  The name of the
    corporation resulting from the Merger shall be “The Banc
    Corporation”, or such other name as Buyer shall have
    adopted as of the Effective Date.

 

    ARTICLE 2

    

 

    Merger — Terms
    and Conditions
    

 

    2.1  Applicable Law.  On the
    Effective Date, Acquired Corporation shall be merged with and
    into Buyer (herein referred to as the “Resulting
    Corporation” whenever reference is made to it as of the
    time of merger or thereafter). The Merger shall be undertaken
    pursuant to the provisions of and with the effect provided in
    the DGCL and, to the extent applicable, the FBCA. The offices
    and facilities of Acquired Corporation and of Buyer shall become
    the offices and facilities of the Resulting Corporation.

 

    2.2  Corporate Existence.  On the
    Effective Date, the corporate existence of Acquired Corporation
    and of Buyer shall, as provided in the DGCL and the FBCA,
    be merged into and continued in the Resulting Corporation,
    and the Resulting Corporation shall be deemed to be the same
    corporation as Acquired Corporation and Buyer. All rights,
    franchises and interests of Acquired Corporation and Buyer,
    respectively, in and to every type of property (real, personal
    and mixed) and choses in action shall be transferred to and
    vested in the Resulting Corporation by virtue of the Merger
    without any deed or other transfer. The Resulting Corporation on
    the Effective Date, and without any order or other action on the
    part of any court or otherwise, shall hold and enjoy all rights
    of property, franchises and interests, including appointments,
    designations and nominations and all other rights and interests
    as trustee, executor, administrator, transfer agent and
    registrar of stocks and bonds, guardian of estates, assignee,
    and receiver and in every other fiduciary capacity and in every
    agency, and capacity, in the same manner and to the same extent
    as such rights, franchises and interests were held or enjoyed by
    Acquired Corporation and Buyer, respectively, on the Effective
    Date.

 

    2.3  Certificate of Incorporation and
    Bylaws.  On the Effective Date, the certificate of
    incorporation and bylaws of the Resulting Corporation shall be
    the restated certificate of incorporation and bylaws of Buyer as
    they exist immediately before the Effective Date.

 

    2.4  Resulting Corporation’s Officers and
    Board.  The board of directors and the officers of
    the Resulting Corporation on the Effective Date shall consist of
    those persons serving in such capacities of Buyer as of the
    Effective Date. Buyer agrees that after the Effective Date but
    not later than December 31, 2006, it will cause to be

    

    A-1

 

    appointed to such board one individual who shall (a) be
    representative of the Resulting Corporation’s Tampa-area
    market, (b) be mutually satisfactory to Buyer’s board
    of directors and to a majority of the individuals who are
    members of Acquired Corporation’s board of directors as of
    the business day prior to the Effective Date and (c) be
    selected in accordance with applicable Law and subject to
    approval by any applicable Agency.

 

    2.5  Stockholder Approvals.  This
    Agreement shall be submitted to the respective stockholders of
    Acquired Corporation and of Buyer at the Stockholders’
    Meetings to be held as promptly as practicable consistent with
    the satisfaction of the conditions set forth in this Agreement.
    Upon approval by the requisite vote of the stockholders of
    Acquired Corporation and of Buyer as required by applicable Law,
    the Merger shall become effective as soon as practicable
    thereafter in the manner provided in Section 2.7 hereof.

 

    2.6  Further Acts.  If, at any time
    after the Effective Date, the Resulting Corporation shall
    consider or be advised that any further assignments or
    assurances in law or any other acts are necessary or desirable
    (i) to vest, perfect confirm or record, in the Resulting
    Corporation, title to and possession of any property or right of
    Acquired Corporation or Buyer, acquired as a result of the
    Merger, or (ii) otherwise to carry out the purposes of this
    Agreement, Buyer and its officers and directors shall execute
    and deliver all such proper deeds, assignments and assurances in
    law and do all acts necessary or proper to vest, perfect or
    confirm title to, and possession of, such property or rights in
    the Resulting Corporation and otherwise to carry out the
    purposes of this Agreement; and the proper officers and
    directors of the Resulting Corporation are fully authorized in
    the name of Acquired Corporation or Buyer, or otherwise, to take
    any and all such action.

 

    2.7  Effective Date and
    Closing.  Subject to the terms of all requirements
    of Law and the conditions specified in this Agreement the Merger
    shall become effective on the date specified in the Certificate
    of Merger to be issued by the Secretary of State of the State of
    Delaware (such time being herein called the “Effective
    Date”). Assuming all other conditions stated in this
    Agreement have been or will be satisfied as of the Closing, the
    Closing shall take place at the offices of Buyer, in Birmingham,
    Alabama, at 5:00 p.m. on a date specified by Buyer that
    shall be as soon as reasonably practicable after the later to
    occur of the Stockholders Meetings or all required regulatory
    approvals under Section 8.2, or at such other place and
    time that the Parties may mutually agree.

 

    2.8  Subsidiary Bank.  Buyer and
    Acquired Corporation anticipate that, on or after the Effective
    Date, Buyer’s savings bank Subsidiary, Superior Bank, a
    federal savings bank, will acquire the Bank by merger,
    acquisition of assets or otherwise. The exact timing and
    structure of such acquisition have not been finalized at this
    time, and Buyer in its discretion will finalize such timing and
    structure at a later date. Acquired Corporation will cooperate
    with Buyer, including the call of any special meetings of the
    board of directors of the Bank and the filing of any regulatory
    applications, in the execution of appropriate documentation
    relating to such merger or other transaction. In the event that
    following the Effective Date the Bank remains a separate legal
    entity owned by Buyer, Buyer and Acquired Corporation will
    mutually agree prior to the Effective Date upon which existing
    members of the board of directors of the Bank, if any, shall
    remain as directors thereof following the Effective Date. Buyer
    agrees that it will accept the resignations of any such existing
    members who desire to resign as such as of the Effective Date.

 

    ARTICLE 3

    

 

    Conversion
    of Acquired Corporation Stock
    

 

    3.1  Conversion of Acquired Corporation Stock.

 

    (a) Subject to the potential adjustment provided for in
    Section 3.4 below, on the Effective Date, each share of
    common stock of Acquired Corporation outstanding and held of
    record by the Acquired Corporation’s stockholders, but
    excluding shares held by the Acquired Corporation or any of its
    Subsidiaries, other than in a fiduciary capacity or as a result
    of debts previously contracted, and excluding shares held by
    stockholders who perfect their dissenters’ rights of
    appraisal as provided in Section 3.6 of this Agreement (the
    “Acquired Corporation Stock”), shall be converted by
    operation of law and without any action by any holder thereof
    into and exchanged for the right to receive 1.60 shares of
    Buyer’s Common Stock (the “Exchange Ratio”).

    

    A-2

 

    (b) On the Effective Date, all outstanding Acquired
    Corporation Options shall be cancelled and each holder of such
    options shall be entitled to receive in exchange therefor the
    right to receive the number of shares of Buyer’s Common
    Stock equal to the amount resulting when (i) the number of
    Acquired Corporation Options held by a holder thereof is
    multiplied by the Per Option Value and (ii) the resulting
    amount is divided by $11.43; provided, however, that no
    fractions of shares of Buyer’s Common Stock shall be issued
    and the number of shares of Buyer’s Common Stock to be
    issued hereunder, if a fractional share exists, shall equal the
    number of whole shares obtained by rounding down to the nearest
    whole share. As used herein, the term “Per Option
    Value” shall mean (i) $18.2880 less (ii) the
    exercise price for each share of Acquired Corporation Stock
    subject to such option. Schedule 3.1 to the Acquired
    Corporation’s Disclosure Supplement sets forth the names of
    all persons holding Acquired Corporation Options, the number of
    shares of Acquired Corporation common stock subject to such
    options, the exercise price and the expiration date of such
    options.

 

    3.2  Surrender of Acquired Corporation
    Stock.  As promptly as practicable, but in no case
    later than fifteen (15) business days after the Effective
    Date, Buyer (or an exchange agent appointed by Buyer) shall send
    to each holder of record of shares of Acquired Company Stock
    outstanding on the Effective Date transmittal materials for use
    in exchanging the certificates for such shares for certificates
    for shares of Buyer’s Common Stock into which such shares
    of Acquired Company Stock have been converted pursuant hereto.
    Each holder of an outstanding certificate or certificates which
    prior thereto represented shares of Acquired Corporation Stock
    who is entitled to receive Buyer’s Common Stock shall be
    entitled, upon surrender to Buyer of their certificate or
    certificates representing shares of Acquired Corporation Stock
    (or an affidavit or affirmation by such holder of the loss,
    theft, or destruction of such certificate or certificates in
    such form as Buyer may reasonably require and, if Buyer
    reasonably requires, a bond of indemnity in form and amount, and
    issued by such sureties, as Buyer may reasonably require), to
    receive in exchange therefor a certificate or certificates
    representing the number of whole shares of Buyer’s Common
    Stock into and for which the shares of Acquired Corporation
    Stock so surrendered shall have been converted, such
    certificates to be of such denominations and registered in such
    names as such holder may reasonably request. Until so
    surrendered and exchanged, each such outstanding certificate
    which, prior to the Effective Date, represented shares of
    Acquired Corporation Stock and which is to be converted into
    Buyer’s Common Stock shall for all purposes evidence
    ownership of the Buyer’s Common Stock into and for which
    such shares shall have been so converted, except that dividends
    or other distributions with respect to such Buyer’s Common
    Stock, if any, shall be held by Buyer until the certificates
    previously representing shares of Acquired Corporation Stock
    shall have been properly tendered. After the Effective Date,
    there shall be no transfers on the stock transfer books of
    Acquired Corporation of shares of Acquired Corporation Stock
    which were issued and outstanding on the Effective Date and
    converted pursuant to the provisions hereof. If after the
    Effective Date certificates are presented for transfer to
    Acquired Corporation, they shall be canceled and exchanged for
    the shares of Buyer’s Common Stock deliverable in respect
    thereof as determined in accordance with the provisions of this
    paragraph.

 

    3.3  Fractional Shares.  No
    fractional shares of Buyer’s Common Stock shall be issued,
    and each holder of shares of Acquired Corporation Stock having a
    fractional interest arising upon the conversion of such shares
    into shares of Buyer’s Common Stock shall, at the time of
    surrender of the certificates previously representing Acquired
    Corporation Stock, be paid by Buyer an amount in cash, without
    interest, in an amount equal to such fractional part of a share
    of Buyer’s Common Stock multiplied by the closing price per
    share of Buyer’s Common Stock on NASDAQ on the last
    business day immediately preceding the Effective Date.

 

    3.4  Adjustments.  In the event that
    prior to the Effective Date Buyer’s Common Stock shall be
    changed into a different number of shares or a different class
    of shares by reason of any recapitalization or reclassification,
    stock dividend, combination, stock split, or reverse stock split
    of the Buyer’s Common Stock, an appropriate and
    proportionate adjustment shall be made in the number of shares
    of Buyer’s Common Stock into which the Acquired Corporation
    Stock shall be converted.

 

    3.5  Buyer Stock.  The shares of
    Common Stock of Buyer issued and outstanding immediately before
    the Effective Date shall continue to be issued and outstanding
    shares of the Resulting Corporation.

 

    3.6  Dissenting Stockholder
    Rights.  Any stockholder of Acquired Corporation
    who perfects such stockholder’s dissenters’ rights in
    accordance with the FBCA shall be entitled to receive from the
    Resulting Corporation

    

    A-3

 

    the value of such shares in cash as determined pursuant to the
    provisions of the FBCA; provided, that no such payment shall be
    made to any dissenting stockholder unless and until such
    dissenting stockholder has complied with the applicable
    provisions of the FBCA and surrendered to the Resulting
    Corporation the certificate or certificates representing the
    shares for which payment is being made. If after the Effective
    Date a dissenting shareholder of Acquired Corporation fails to
    perfect, or effectively withdraws or loses his or her right to
    appraisal and payment for his shares of Acquired Corporation
    Stock, Buyer shall issue and deliver the consideration to which
    such holder of shares of Acquired Corporation Stock is entitled
    under Section 3.1(a) (without interest) upon surrender by
    such holder of the certificate or certificates representing
    shares of Acquired Corporation Stock held by him or her.

 

    ARTICLE 4

    

 

    Representations,
    Warranties and Covenants of Buyer
    

 

    Buyer represents, warrants and covenants to and with Acquired
    Corporation as follows:

 

    4.1  Organization.  Buyer is a
    corporation duly organized, validly existing and in good
    standing under the Laws of the State of Delaware. Buyer has the
    necessary corporate powers to carry on its business as presently
    conducted and is qualified to do business in every jurisdiction
    in which the character and location of the Assets owned by it or
    the nature of the business transacted by it requires
    qualification or in which the failure to qualify could,
    individually or in the aggregate, have a Material Adverse Effect.

 

    4.2  Capital Stock.

 

    (a) The authorized capital stock of Buyer consists of
    (A) 35,000,000 shares of Common Stock, $0.001 par
    value per share, of which as of December 31, 2005,
    22,221,256 shares were validly issued and
    19,980,261 shares were outstanding, fully paid and
    nonassessable under the DGCL and are not subject to preemptive
    rights (not counting additional shares reserved for issuance
    pursuant to stock option and other plans and outstanding options
    issued under such plans or otherwise), and
    (B) 5,000,000 shares of Convertible Preferred Stock,
    $0.001 par value per share, none of which is issued and
    outstanding. The shares of Buyer’s Common Stock to be
    issued in the Merger are duly authorized and, when so issued,
    will be validly issued and outstanding, fully paid and
    nonassessable under the DGCL, will have been registered under
    the 1933 Act and will have been registered or qualified
    under the securities laws of all jurisdictions in which such
    registration or qualification is required, based upon
    information provided by Acquired Corporation.

 

    (b) The authorized capital stock of each Subsidiary of
    Buyer is validly issued and outstanding, fully paid and
    nonassessable under the Laws of the jurisdiction in which such
    Subsidiary is organized, and each Subsidiary is wholly owned,
    directly or indirectly, by Buyer.

 

    4.3  Taxes.  All Tax returns required
    to be filed by or on behalf of Buyer have been timely filed (or
    requests for extensions therefor have been timely filed and
    granted and have not expired), and all returns filed are
    complete and accurate in all material respects. All Taxes shown
    on these returns to be due and all additional assessments
    received have been paid. The amounts recorded for Taxes on the
    balance sheets contained in the reports described in
    Section 4.14 are, to the Knowledge of Buyer, sufficient in
    all material respects for the payment of all unpaid federal,
    state, county, local, foreign or other Taxes (including any
    interest or penalties) of Buyer accrued for or applicable to the
    period ended on the dates thereof, and all years and periods
    prior thereto and for which Buyer may at such dates have been
    liable in its own right or as transferee of the Assets of, or as
    successor to, any other corporation or other party. Except as
    disclosed on Schedule 4.3 to Buyer’s Disclosure
    Supplement, no audit, examination or investigation is presently
    being conducted or, to the Knowledge of Buyer, threatened by any
    taxing authority which is likely to result in a material Tax
    Liability, no material unpaid Tax deficiencies or additional
    liabilities of any sort have been proposed by any governmental
    representative and no agreements for extension of time for the
    assessment of any material amount of Tax have been entered into
    by or on behalf of Buyer. Buyer has withheld from its employees
    (and timely paid to the appropriate governmental entity) proper
    and accurate amounts for all periods in material compliance with
    all Tax withholding provisions of applicable federal, state,
    foreign and local Laws (including without limitation, income,
    Social Security and employment Tax withholding for all types of
    compensation).

    

    A-4

 

    4.4  No Conflict with Other
    Instrument.  The consummation of the transactions
    contemplated by this Agreement will not result in a breach of or
    constitute a Default (without regard to the giving of notice or
    the passage of time) under any material Contract, indenture,
    mortgage, deed of trust or other material agreement or
    instrument to which Buyer or any of its Subsidiaries is a party
    or by which they or their Assets may be bound; will not conflict
    with any provision of the certificate of incorporation or bylaws
    of Buyer or the certificate or articles of incorporation or
    bylaws of any of its Subsidiaries; and will not violate any
    provision of any Law, regulation, judgment or decree binding on
    them or any of their Assets.

 

    4.5  Absence of Material Adverse
    Change.  Since September 30, 2005, there have
    been no events, changes or occurrences which have had or are
    reasonably likely to have, individually or in the aggregate, a
    Material Adverse Effect on Buyer, except as disclosed in
    Buyer’s SEC Reports.

 

    4.6  Approval of Agreement.  The
    board of directors of Buyer has approved this Agreement and the
    transactions contemplated by it and has authorized the execution
    and delivery by Buyer of this Agreement. This Agreement
    constitutes the legal, valid and binding obligation of Buyer,
    enforceable against it in accordance with its terms. Subject to
    (a) the matters referred to in Section 8.2 and
    (b) approval by the stockholders of Buyer of the Merger and
    the transactions contemplated by this Agreement, Buyer has full
    power, authority and legal right to enter into this Agreement
    and to consummate the transactions contemplated by this
    Agreement. Buyer has no Knowledge of any fact or circumstance
    under which the appropriate regulatory approvals required by
    Section 8.2 will not be granted without the imposition of
    material conditions or material delays.

 

    4.7  Tax Treatment.  Buyer has no
    present plan to sell or otherwise dispose of any material
    portion of the Assets of Acquired Corporation, subsequent to the
    Merger, and Buyer intends to continue the historic business of
    Acquired Corporation.

 

    4.8  Title and Related
    Matters.  Buyer has good and marketable title to
    all the properties, interests in properties and Assets, real and
    personal, that are material to the business of Buyer, reflected
    in the balance sheet dated as of September 30, 2005
    incorporated by reference in the SEC Reports, or acquired after
    the date of such balance sheet (except properties, interests and
    Assets sold or otherwise disposed of since such date, in the
    ordinary course of business, or, if other than in the ordinary
    course of business, of a nature and amount not material to the
    business of Buyer), free and clear of all mortgages, Liens,
    pledges, charges or encumbrances except (i) mortgages and
    other encumbrances referred to in the notes of such balance
    sheet, (ii) liens for current Taxes not yet due and payable
    and (iii) such imperfections of title and easements as do
    not materially detract from or interfere with the present use of
    the properties subject thereto or affected thereby, or otherwise
    materially impair present business operations at such
    properties. To the Knowledge of Buyer, the material structures
    and equipment of Buyer comply in all material respects with the
    requirements of all applicable Laws.

 

    4.9  Subsidiaries.  Each Subsidiary
    of Buyer has been duly incorporated and is validly existing as a
    corporation in good standing under the Laws of the jurisdiction
    of its incorporation and each Subsidiary has been duly qualified
    as a foreign corporation to transact business and is in good
    standing under the Laws of each other jurisdiction in which it
    owns or leases properties, or conducts any business so as to
    require such qualification and in which the failure to be duly
    qualified could have a Material Adverse Effect upon Buyer and
    its Subsidiaries considered as one enterprise; the federal
    savings bank Subsidiary of Buyer has its deposits fully insured
    by the Federal Deposit Insurance Corporation to the extent
    provided by the Federal Deposit Insurance Act; and the
    businesses of the non-bank Subsidiaries of Buyer are permitted
    to subsidiaries of registered thrift holding companies.

 

    4.10  Contracts.  Neither Buyer nor
    any of its Subsidiaries is in violation of its respective
    certificate of incorporation or bylaws or in Default in the
    performance or observance of any material obligation, agreement,
    covenant or condition contained in any Contract, indenture,
    mortgage, loan agreement, note, lease or other instrument to
    which it is a party or by which it or its property may be bound,
    except for such Defaults, if any, as would not, individually or
    in the aggregate, have a Material Adverse Effect upon Buyer.

 

    4.11  Litigation.  Except as
    disclosed in or reserved for in Buyer’s financial
    statements included in the SEC Reports as of the date of this
    Agreement, there is no Litigation before or by any court or
    Agency, domestic or foreign, now pending, or, to the Knowledge
    of Buyer, threatened against or affecting Buyer or any of its
    Subsidiaries

    

    A-5

 

    (nor does Buyer have knowledge of any facts which could give
    rise to any such Litigation) which is reasonably likely to have
    any Material Adverse Effect or prospective Material Adverse
    Effect, or which is reasonably likely to materially affect or
    delay the consummation of the transactions contemplated by this
    Agreement; and all pending legal or governmental proceedings to
    which Buyer or any Subsidiary is a party or of which any of
    their properties is the subject, including ordinary routine
    litigation incidental to the business, are, considered in the
    aggregate not material.

 

    4.12  Compliance.  Buyer and its
    Subsidiaries, in the conduct of their businesses, are to the
    Knowledge of Buyer, in material compliance with all material
    federal, state or local Laws applicable to their or the conduct
    of their businesses, including Laws imposing Taxes.

 

    4.13  Registration
    Statement.  (a) At the time the Registration
    Statement becomes effective and at the time of the
    Stockholders’ Meetings, the Registration Statement,
    including the Buyer Proxy Statement which shall constitute a
    part thereof, will comply in all material respects with the
    requirements of the 1933 Act and the rules and regulations
    thereunder, and will not contain an untrue statement of a
    material fact or omit to state a material fact necessary in
    order to make the statements therein, in the light of the
    circumstances under which they were made, not misleading;
    provided, however, that the representations and warranties in
    this subsection shall not apply to statements in or omissions
    from the Buyer Proxy Statement made in reliance upon and in
    conformity with information furnished in writing to Buyer by
    Acquired Corporation or any of its representatives expressly for
    use in the Buyer Proxy Statement or information included in the
    Buyer Proxy Statement regarding the business of Acquired
    Corporation, its operations, Assets and capital.

 

    (b) At the time of the Stockholders’ Meetings, the
    Acquired Corporation Proxy Statement will not contain an untrue
    statement of a material fact or omit to state a material fact
    necessary in order to make the statements therein, in the light
    of the circumstances under which they were made, not misleading;
    provided, however, that the representations and warranties in
    this subsection shall only apply to statements in or omissions
    from the Acquired Corporation Proxy Statement made in reliance
    upon and in conformity with information furnished in writing to
    Acquired Corporation by Buyer or any of its representatives
    expressly for use in the Acquired Corporation Proxy Statement or
    information included in the Acquired Corporation Proxy Statement
    regarding the business of Buyer, its operations, Assets and
    capital.

 

    4.14  SEC Filings and Financial Statements;
    NASDAQ.  (a) Since December 31, 2003,
    Buyer has filed all forms, reports and documents with the SEC
    required to be filed by it pursuant to the federal securities
    Laws and SEC rules and regulations thereunder (the “SEC
    Reports”), each of which complied as to form, at the time
    such form, report or document was filed (and subject to any
    subsequent amendments thereto), in all material respects with
    the applicable requirements of the 1933 Act, the
    1934 Act and the applicable rules and regulations
    thereunder. To the Knowledge of Buyer, each member of
    Buyer’s board of directors has filed all forms, reports and
    documents with the SEC required to be filed by him pursuant to
    the federal securities Laws and SEC rules and regulations
    thereunder. As of their respective dates, none of the SEC
    Reports contained any untrue statement of a material fact or
    omitted to state a material fact required to be stated therein
    or necessary to make the statements made therein, in light of
    the circumstances under which they were made, not misleading.
    Each of the balance sheets in or incorporated by reference into
    the SEC Reports (including the related notes and schedules, and
    subject to any subsequent amendments to such SEC Reports) fairly
    presents the financial condition of the entity or entities to
    which it relates for the periods set forth therein (subject, in
    the case of unaudited interim statements, to normal year-end
    audit adjustments that are not material in amount or effect), in
    each case in accordance with generally accepted accounting
    principles consistently applied during the periods involved,
    except as may be noted therein. Buyer has no material
    obligations or liabilities (contingent or otherwise) except as
    disclosed in the SEC Reports. For purposes of this paragraph,
    “material” shall have the meaning of such term as
    defined under the 1933 Act, the 1934 Act and the rules
    promulgated thereunder.

 

    (b) The documents incorporated by reference into the
    Registration Statement, at the time they are filed with the SEC,
    when read together and with the other information in the
    Registration Statement will not contain an untrue statement of a
    material fact or omit to state a material fact required to be
    stated therein or necessary to make the statements therein not
    misleading at the time the Registration Statement becomes
    effective or at the time of the Stockholders Meetings.

    

    A-6

 

    (c) Since December 31, 2003, Buyer has filed all
    forms, reports and documents with NASDAQ required to be filed by
    it pursuant to the requirements of NASDAQ (the “NASDAQ
    Reports”), each of which complied as to form, at the time
    such form, report or document was filed (and subject to any
    subsequent amendments thereto), in all material respects with
    the applicable requirements of NASDAQ. As of their respective
    dates, none of the NASDAQ Reports contained any untrue statement
    of a material fact or omitted to state a material fact required
    to be stated therein or necessary to make the statements made
    therein, in light of the circumstances under which they were
    made, not misleading. Buyer is in material compliance with all
    rules and requirements of NASDAQ applicable to it.

 

    4.15  Form S-4.  The
    conditions for use of a registration statement on SEC
    Form S-4
    set forth in the General Instructions on
    Form S-4
    will be satisfied with respect to Buyer and the Registration
    Statement.

 

    4.16  Brokers.  Except for services
    provided by Sandler O’Neill & Partners, L.P.,
    which has been retained by Buyer and the arrangements with
    which, including fees, have been disclosed to Acquired
    Corporation prior to the date hereof, all negotiations relative
    to this Agreement and the transactions contemplated by this
    Agreement have been carried on by Buyer directly with Acquired
    Corporation and without the intervention of any other person,
    either as a result of any act of Buyer or otherwise in such
    manner as to give rights to any valid claim against Buyer for
    finder’s fees, brokerage commissions or other like payments.

 

    4.17  Government
    Authorization.  Buyer and its Subsidiaries have
    all Permits that, to the Knowledge of Buyer and its
    Subsidiaries, are or will be legally required to enable Buyer or
    any of its Subsidiaries to conduct their businesses in all
    material respects as now conducted by each of them.

 

    4.18  Absence of Regulatory
    Communications.  Except as disclosed in
    Schedule 4.18 to Buyer’s Disclosure Supplement,
    neither Buyer nor any of its Subsidiaries is subject to, or has
    received during the past three years, any written communication
    directed specifically to it from any Agency to which it is or
    has been subject or pursuant to which such Agency has imposed or
    has indicated it may impose any material restrictions on the
    operations of it or the business conducted by it or in which
    such Agency has raised a material question concerning the
    condition, financial or otherwise, of such company.

 

    4.19  Disclosure.  No representation
    or warranty, or any statement or certificate furnished or to be
    furnished to Acquired Corporation by Buyer, contains or will
    contain any untrue statement of a material fact, or omits or
    will omit to state a material fact necessary to make the
    statements contained in this Agreement or in any such statement
    or certificate not misleading.

 

    4.20  Absence of Certain Changes or
    Events.  Since September 30, 2005, neither
    Buyer nor any of its Subsidiaries has

 

    (a) issued, delivered or agreed to issue or deliver any
    stock, bonds or other corporate securities (whether authorized
    and unissued or held in the treasury) except shares of common
    stock issued upon the exercise of existing options to purchase
    shares of Buyer’s common stock under its Third Amended and
    Restated 1998 Stock Option Plan;

 

    (b) borrowed or agreed to borrow any funds or incurred, or
    become subject to, any Liability (absolute or contingent) except
    borrowings, obligations (including purchase of federal funds)
    and Liabilities incurred in the ordinary course of business and
    consistent with past practice;

 

    (c) paid any material obligation or Liability (absolute or
    contingent) other than current Liabilities reflected in or shown
    on the most recent balance sheet incorporated by reference in
    the SEC Reports and current Liabilities incurred since that date
    in the ordinary course of business and consistent with past
    practice;

 

    (d) declared or made, or agreed to declare or make, any
    payment of dividends or distributions of any Assets of any kind
    whatsoever to shareholders, or purchased or redeemed, or agreed
    to purchase or redeem, directly or indirectly, or otherwise
    acquire, any of its outstanding securities;

 

    (e) except in the ordinary course of business, sold or
    transferred, or agreed to sell or transfer, any of its Assets,
    or canceled, or agreed to cancel, any debts or claims;

    

    A-7

 

    (f) except in the ordinary course of business, entered or
    agreed to enter into any agreement or arrangement granting any
    preferential rights to purchase any of its Assets, or requiring
    the consent of any party to the transfer and assignment of any
    of its Assets;

 

    (g) suffered any Losses or waived any rights of value which
    in either event in the aggregate are material considering
    Buyer’s business as a whole;

 

    (h) except in the ordinary course of business or as
    disclosed in the SEC Reports, made or permitted any amendment or
    termination of any Contract, agreement or license to which it is
    a party if such amendment or termination is material considering
    Buyer’s business as a whole;

 

    (i) except in accordance with normal and usual practice or
    as disclosed in the SEC Reports, made any accrual or arrangement
    for or payment of bonuses or special compensation of any kind or
    any severance or termination pay to any present or former
    officer or employee;

 

    (j) except in accordance with normal and usual practice,
    increased the rate of compensation payable to or to become
    payable to any of its officers or employees or made any material
    increase in any profit sharing, bonus, deferred compensation,
    savings, insurance, pension, retirement or other employee
    benefit plan, payment or arrangement made to, for or with any of
    its officers or employees;

 

    (k) received notice or had Knowledge or reason to believe
    that any of its substantial customers has terminated or intends
    to terminate its relationship, which termination would have a
    Material Adverse Effect;

 

    (l) failed to operate its business in the ordinary course
    so as to preserve its business intact and to preserve the
    goodwill of its customers and others with whom it has business
    relations;

 

    (m) entered into any other transaction other than in the
    ordinary course of business; or

 

    (n) agreed, in writing or otherwise, to take any action
    described in clauses (a) through (m) above.

 

    4.21  Commitments.  Buyer has
    disclosed in the SEC Reports as of the date of this Agreement
    all “material contracts” required to be disclosed
    pursuant to Item 601(b)(10) of
    Regulation S-K
    under the 1933 Act.

 

    4.22  Litigation.  Buyer has
    disclosed in the SEC Reports all Litigation required to be
    disclosed by pursuant to Item 103 of
    Regulation S-K
    under the 1933 Act.

 

    4.23  Material Contract
    Defaults.  Neither Buyer nor any of its
    Subsidiaries is in Default in any material respect under the
    terms of any material Contract, agreement, lease or other
    commitment which is or may be material to the business,
    operations or Assets, or the condition, financial or otherwise,
    of Buyer and, to the Knowledge of Buyer, there is no event
    which, with notice or lapse of time, or both, may be or become
    an event of Default under any such material Contract, agreement
    lease or other commitment in respect of which adequate steps
    have not been taken to prevent such a Default from occurring.

 

    4.24  No Conflict with Other
    Instrument.  The consummation of the transactions
    contemplated by this Agreement will not result in the breach of
    any term or provision of or constitute a Default under any
    material Contract indenture, mortgage, deed of trust or other
    material agreement or instrument to which Buyer or any of its
    Subsidiaries is a party and will not conflict with any provision
    of the charter or bylaws of Buyer or any of its Subsidiaries.

 

    4.25  Governmental
    Authorization.  Buyer and its Subsidiaries have
    all Permits that, to the Knowledge of Buyer, are or will be
    legally required to enable Buyer and its Subsidiaries to conduct
    their respective businesses in all material respects as now
    conducted by Buyer and each of its Subsidiaries.

 

    4.26  Absence of Material Adverse
    Change.  To the Knowledge of Buyer, since
    September 30, 2005, there have been no events, changes or
    occurrences which have had, or are reasonably likely to have,
    individually or in the aggregate, a Material Adverse Effect on
    Buyer.

 

    4.27  Approval of Agreements.  The
    board of directors of Buyer has approved this Agreement and the
    transactions contemplated by this Agreement and has authorized
    the execution and delivery by Buyer of this Agreement. Subject
    to (a) the matters referred to in Section 8.2 and
    (b) approval by the stockholders of Buyer of the

    

    A-8

 

    Merger and the transactions contemplated by this Agreement,
    Buyer has full power, authority and legal right to enter into
    this Agreement, and, upon appropriate vote of the stockholders
    of Buyer in accordance with this Agreement, Buyer shall have
    full power, authority and legal right to consummate the
    transactions contemplated by this Agreement.

 

    4.28  Loans; Adequacy of Allowance for Loan
    Losses.  All reserves for loan losses shown on the
    September 30, 2005 financial statements of Buyer
    incorporated by reference in the SEC Reports are adequate in all
    material respects. Buyer has no Knowledge of any fact which is
    likely to require a future material increase in the provision
    for loan losses or a material decrease in the loan loss reserve
    reflected in such financial statements. To the Knowledge of
    Buyer, each loan reflected as an Asset on the financial
    statements of Buyer is the legal, valid and binding obligation
    of the obligor of each loan, enforceable in accordance with its
    terms subject to the effect of bankruptcy, insolvency,
    reorganization, moratorium, or other similar laws relating to
    creditors’ rights generally and to general equitable
    principles and complies with all Laws to which it is subject.
    Buyer does not have in its portfolio any loan exceeding its
    legal lending limit, and except as disclosed to Acquired
    Corporation, to the Knowledge of Acquired Corporation, it has no
    material loans that are delinquent in payment for more than
    30 days, substandard, doubtful, loss, or nonperforming.

 

    4.29  Environmental Matters.  Buyer
    and each of its Subsidiaries are in material compliance with all
    Environmental Laws, and Buyer has no Knowledge that Buyer or any
    of its Subsidiaries has not complied with all regulations and
    requirements promulgated by the Occupational Safety and Health
    Administration that are applicable to Buyer or any of its
    Subsidiaries. To the Knowledge of Buyer, there is no Litigation
    pending or threatened with respect to any violation or alleged
    violation of the Environmental Laws. To the Knowledge of Buyer,
    with respect to Assets of Buyer or any of its Subsidiaries,
    including any Loan Property of any material loan, (i) there
    has been no spillage, leakage, contamination or release of any
    substances for which the appropriate remedial action has not
    been completed; (ii) no owned or leased property is
    contaminated with or contains any hazardous substance or waste;
    and (iii) there are no underground storage tanks on any
    premises owned or leased by Buyer or any of its Subsidiaries.
    Neither Buyer nor any of its Subsidiaries has participated in
    the management of any property of any third party including
    without limitation any Loan Property. Moreover, to the Knowledge
    of Buyer, neither Buyer nor any of its Subsidiaries has extended
    credit, either on a secured or unsecured basis, to any person or
    other entity engaged in any activities which would require or
    requires such person or entity to obtain any Permits which are
    required under any Environmental Law which have not been
    obtained.

 

    4.30  Labor Disputes.  To the
    Knowledge of Buyer, Buyer and each of its Subsidiaries is in
    material compliance with all federal and state laws respecting
    employment and employment practices, terms and conditions of
    employment, wages and hours. Neither Buyer nor any of its
    Subsidiaries is or has been engaged in any unfair labor
    practice, and, to the Knowledge of Buyer, no unfair labor
    practice complaint against Buyer or any of its Subsidiaries is
    pending before the National Labor Relations Board. Relations
    between management of Buyer and its Subsidiaries and the
    employees are amicable and there have not been, nor to the
    Knowledge of Buyer, are there presently, any attempts to
    organize employees, nor to the Knowledge of Buyer, are there
    plans for any such attempts.

 

    4.31  Derivative Contracts.  Neither
    Buyer nor any of its Subsidiaries is a party to or has agreed to
    enter into a swap, forward, future, option, cap, floor or collar
    financial contract, or any other interest rate or foreign
    currency protection contract or derivative security not included
    in Buyer’s September 30, 2005 financial statements
    incorporated by reference in the SEC Reports which is a
    financial derivative contract (including various combinations
    thereof). With respect to all agreements currently outstanding
    pursuant to which Buyer or any of its Subsidiaries has purchased
    securities subject to an agreement to resell, Buyer or such
    Subsidiary has a valid, perfected first lien or security
    interest in the securities or other collateral securing such
    agreement, and the value of such collateral equals or exceeds
    the amount of the debt secured thereby. With respect to all
    agreements currently outstanding pursuant to which Buyer or any
    of its Subsidiaries has sold securities subject to an agreement
    to repurchase, neither Buyer nor any of its Subsidiaries has
    pledged collateral in excess of the amount of the debt secured
    thereby. Neither Buyer nor any of its Subsidiaries has pledged
    collateral in excess of the amount required under any interest
    rate swap or other similar agreement currently outstanding.

    

    A-9

 

    4.32  Accounting, Tax and Regulatory
    Matters.  Neither Buyer nor any of its
    Subsidiaries has taken any action or has any Knowledge of any
    fact or circumstance that is reasonably likely to
    (i) prevent the transactions provided for herein, including
    the Merger, from qualifying as a reorganization within the
    meaning of Section 368(a) of the IRC, or
    (ii) materially impede or delay receipt of any Consents of
    Agencies referred to in subsection 8.2 of this Agreement.

 

    4.33  Opinion of Counsel.  Buyer has
    no Knowledge of any facts that would preclude issuance of the
    opinion of counsel referred to in Section 9.4.

 

    4.34  Transactions with
    Management.  Buyer has disclosed in the SEC
    Reports as of the date of this Agreement all matters required to
    be disclosed pursuant to Item 404 of
    Regulation S-K
    under the 1933 Act, “Certain Relationships and Related
    Transactions”.

 

    4.35  Accounting Controls.  Buyer and
    its Subsidiaries have devised and maintained systems of internal
    accounting control sufficient to provide reasonable assurances
    that: (i) all material transactions are executed in
    accordance with general or specific authorization of the Board
    of Directors of Buyer and the duly authorized executive officers
    of Buyer or the applicable Subsidiary of Buyer; (ii) all
    material transactions are recorded as necessary to permit the
    preparation of financial statements in conformity with GAAP with
    respect to Buyer or the applicable Subsidiary of Buyer or any
    other criteria applicable to such financial statements, and to
    maintain proper accountability for items therein;
    (iii) access to the material Assets of Buyer and its
    Subsidiaries is permitted only in accordance with general or
    specific authorization of the Board of Directors of Buyer and
    the duly authorized executive officers; and (iv) the
    recorded accountability for items is compared with the actual
    levels at reasonable intervals and appropriate actions taken
    with respect to any differences.

 

    4.36.  Deposit Insurance.  The
    deposit accounts of Superior Bank are insured by the FDIC in
    accordance with the provisions of the FDIC Act. Superior Bank
    has paid all regular premiums and special assessments and filed
    all reports required under the FDIC Act.

 

    ARTICLE 5

    

 

    Representations,
    Warranties and Covenants of Acquired Corporation
    

 

    Acquired Corporation represents, warrants and covenants to and
    with Buyer, as follows:

 

    5.1  Organization.  Acquired
    Corporation is a Florida corporation, and the Bank is a Florida
    state-chartered bank. Each is duly organized, validly existing
    and in good standing under the respective Laws of its
    jurisdiction of incorporation and has all requisite power and
    authority to carry on its business as it is now being conducted
    and is qualified to do business in every jurisdiction in which
    the character and location of the Assets owned by it or the
    nature of the business transacted by it requires qualification
    or in which the failure to qualify could, individually, or in
    the aggregate, have a Material Adverse Effect.

 

    5.2  Capital Stock.  As of
    December 31, 2005, the authorized capital stock of Acquired
    Corporation consisted of 10,000,000 shares of common stock,
    $.01 par value per share, 3,710,500 shares of which are
    issued and outstanding. All of such shares which are outstanding
    are validly issued, fully paid and nonassessable under the FBCA
    and not subject to preemptive rights. Acquired Corporation has
    328,750 shares of its common stock subject to exercise at
    any time pursuant to stock options under its stock option plans.
    Except for the foregoing, Acquired Corporation does not have any
    other arrangements or commitments obligating it to issue shares
    of its capital stock or any securities convertible into or
    having the right to purchase shares of its capital stock,
    including the grant or issuance of Acquired Corporation Options.

 

    5.3  Subsidiaries.  Acquired
    Corporation has no direct Subsidiaries other than the Bank, and
    there are no Subsidiaries of the Bank. Acquired Corporation owns
    all of the issued and outstanding capital stock of the Bank free
    and clear of any liens, claims or encumbrances of any kind. All
    of the issued and outstanding shares of capital stock of the
    Subsidiaries have been validly issued and are fully paid and
    non-assessable. As of December 31, 2005, there were
    1,000,000 shares of the common stock, par value
    $10.25 per share, authorized of the Bank, 740,000 of which
    are issued and outstanding and wholly owned by Acquired
    Corporation. The Bank has no arrangements or

    

    A-10

 

    commitments obligating it to issue shares of its capital stock
    or any securities convertible into or having the right to
    purchase shares of its capital stock.

 

    5.4  Financial Statements;
    Taxes.  (a) Acquired Corporation has
    delivered to Buyer copies of the following financial statements
    of Acquired Corporation:

 

    (i) Consolidated statements of financial condition as of
    December 31, 2003, 2004 and 2005;

 

    (ii) Consolidated statements of income for each of the
    three years ended December 31, 2003, 2004 and 2005;

 

    (iii) Consolidated statements of stockholders’ equity
    for each of the three years ended December 31, 2003, 2004
    and 2005; and

 

    (iv) Consolidated statements of cash flows for the three
    years ended December 31, 2003, 2004 and 2005.

 

    All of the foregoing financial statements are in all material
    respects in accordance with the books and records of Acquired
    Corporation and have been prepared in accordance with GAAP
    applied on a consistent basis throughout the periods indicated,
    except for changes required by GAAP, all as more particularly
    set forth in the notes to such statements. Each of such
    financial statements presents fairly as of its date the
    financial condition and results of operations of Acquired
    Corporation for the year then ended. Except as and to the extent
    reflected or reserved against in such financial statements
    (including the notes thereto), Acquired Corporation did not
    have, as of the date of such financial statements, any material
    Liabilities or obligations (absolute or contingent) of a nature
    customarily reflected in financial statements or the notes
    thereto.

 

    (b) Except as set forth on Schedule 5.4(b) to Acquired
    Corporation’s Disclosure Supplement, all Tax returns
    required to be filed by or on behalf of Acquired Corporation
    have been timely filed (or requests for extensions therefor have
    been timely filed and granted and have not expired), and all
    returns filed are complete and accurate in all material
    respects. All Taxes shown on these returns to be due and all
    additional assessments received have been paid or will be paid
    before the date on which they would be delinquent. The amounts
    recorded for Taxes on the financial statements provided under
    Section 5.4(a) are, to the Knowledge of Acquired
    Corporation, sufficient in all material respects for the payment
    of all unpaid federal, state, county, local, foreign and other
    Taxes (including any interest or penalties) of Acquired
    Corporation accrued for or applicable to the period ended on the
    dates thereof, and all years and periods prior thereto and for
    which Acquired Corporation may at such dates have been liable in
    its own right or as a transferee of the Assets of, or as
    successor to, any other corporation or other party. No audit,
    examination or investigation is presently being conducted or, to
    the Knowledge of Acquired Corporation, threatened by any taxing
    authority which is likely to result in a material Tax Liability,
    no material unpaid Tax deficiencies or additional liability of
    any sort has been proposed by any governmental representative
    and no agreements for extension of time for the assessment of
    any material amount of Tax have been entered into by or on
    behalf of Acquired Corporation. Acquired Corporation has not
    executed an extension or waiver of any statute of limitations on
    the assessment or collection of any Tax due that is currently in
    effect.

 

    (c) To the Knowledge of the Acquired Corporation, each
    Acquired Corporation Company has withheld from its employees
    (and timely paid to the appropriate governmental entity) proper
    and accurate amounts for all periods in material compliance with
    all Tax withholding provisions of applicable federal, state,
    foreign and local Laws (including without limitation, income,
    Social Security and employment Tax withholding for all types of
    compensation). Each Acquired Corporation Company is in material
    compliance with, and its records contain all information and
    documents (including properly completed IRS
    Forms W-9)
    necessary to comply with, all applicable information reporting
    and Tax withholding requirements under federal, state and local
    Tax Laws, and such records identify with specificity all
    accounts subject to backup withholding under Section 3406
    of the Code.

 

    5.5  Absence of Certain Changes or
    Events.  Except as set forth on Schedule 5.5
    to Acquired Corporation’s Disclosure Supplement, since
    December 31, 2005, no Acquired Corporation Company has

 

    (a) issued, delivered or agreed to issue or deliver any
    stock, bonds or other corporate securities (whether authorized
    and unissued or held in the treasury) except shares of common
    stock issued upon the exercise of existing Acquired Corporation
    Options;

    

    A-11

 

    (b) borrowed or agreed to borrow any funds or incurred, or
    become subject to, any Liability (absolute or contingent) except
    borrowings, obligations (including purchase of federal funds)
    and Liabilities incurred in the ordinary course of business and
    consistent with past practice;

 

    (c) paid any material obligation or Liability (absolute or
    contingent) other than current Liabilities reflected in or shown
    on the most recent balance sheet referred to in
    Section 5.4(a)(i) and current Liabilities incurred since
    that date in the ordinary course of business and consistent with
    past practice;

 

    (d) declared or made, or agreed to declare or make, any
    payment of dividends or distributions of any Assets of any kind
    whatsoever to shareholders, or purchased or redeemed, or agreed
    to purchase or redeem, directly or indirectly, or otherwise
    acquire, any of its outstanding securities;

 

    (e) except in the ordinary course of business, sold or
    transferred, or agreed to sell or transfer, any of its Assets,
    or canceled, or agreed to cancel, any debts or claims;

 

    (f) except in the ordinary course of business, entered or
    agreed to enter into any agreement or arrangement granting any
    preferential rights to purchase any of its Assets, or requiring
    the consent of any party to the transfer and assignment of any
    of its Assets;

 

    (g) suffered any Losses or waived any rights of value which
    in either event in the aggregate are material considering its
    business as a whole;

 

    (h) except in the ordinary course of business, made or
    permitted any amendment or termination of any Contract,
    agreement or license to which it is a party if such amendment or
    termination is material considering its business as a whole;

 

    (i) except in accordance with normal and usual practice,
    made any accrual or arrangement for or payment of bonuses or
    special compensation of any kind or any severance or termination
    pay to any present or former officer or employee;

 

    (j) except in accordance with normal and usual practice,
    increased the rate of compensation payable to or to become
    payable to any of its officers or employees or made any material
    increase in any profit sharing, bonus, deferred compensation,
    savings, insurance, pension, retirement or other employee
    benefit plan, payment or arrangement made to, for or with any of
    its officers or employees;

 

    (k) received notice or had Knowledge or reason to believe
    that any of its substantial customers has terminated or intends
    to terminate its relationship, which termination would have a
    Material Adverse Effect;

 

    (l) failed to operate its business in the ordinary course
    so as to preserve its business intact and to preserve the
    goodwill of its customers and others with whom it has business
    relations;

 

    (m) entered into any other transaction other than in the
    ordinary course of business; or

 

    (n) agreed, in writing or otherwise, to take any action
    described in clauses (a) through (m) above.

 

    Between the date hereof and the Effective Date, no Acquired
    Corporation Company, without the express written approval of
    Buyer, will do any of the things listed in clauses (a)
    through (n) of this Section 5.5 except as permitted
    therein or as contemplated in this Agreement, and no Acquired
    Corporation Company will enter into or amend any material
    Contract wherein either the Acquired Corporation Company has an
    obligation to pay or the other party thereto has an obligation
    to provide goods or services, in either case in excess of
    $15,000 during the term thereof, other than Loans or renewals
    thereof entered into in the ordinary course of business, without
    the express written consent of Buyer. Buyer consents to the Bank
    making provision for the payment of bonus compensation to its
    employees and non-director officers in an aggregate amount not
    to exceed $100,000 on or before the Effective Date.

 

    5.6  Title and Related Matters.

 

    (a) Title. Each Acquired Corporation Company has
    good and marketable title to all Assets that are material to the
    business of Acquired Corporation, reflected in the most recent
    financial statement referred to in Section 5.4(a)(i), or
    acquired after the date of such financial statement (except
    Assets sold or otherwise disposed of since such date, in

    

    A-12

 

    the ordinary course of business), free and clear of all
    mortgages, Liens, pledges, charges or encumbrances except
    (i) mortgages and other encumbrances referred to in the
    notes to such balance sheet, (ii) Liens for current Taxes
    not yet due and payable and (iii) such imperfections of
    title and easements as do not materially interfere with the
    present use of the properties subject thereto or affected
    thereby, or otherwise materially impair present business
    operations at such properties. To the Knowledge of Acquired
    Corporation, the material structures and equipment of each
    Acquired Corporation Company comply in all material respects
    with the requirements of all applicable Laws.

 

    (b) Leases. Schedule 5.6(b) to Acquired
    Corporation’s Disclosure Supplement sets forth a list and
    description of all real and personal property owned or leased by
    any Acquired Corporation Company, either as lessor or lessee,
    all of which are in full force and effect and under which no
    breach or Default on the part of such Acquired Corporation
    Company or, to the Knowledge of Acquired Corporation, any other
    party has occurred or is continuing.

 

    (c) Depreciation Schedule. Schedule 5.6(c) to
    Acquired Corporation’s Disclosure Supplement sets forth a
    depreciation schedule for financial reporting purposes of each
    Acquired Corporation Company’s fixed Assets as of
    December 31, 2005.

 

    (d) Computer Hardware and Software.
    Schedule 5.6(d) to Acquired Corporation’s Disclosure
    Supplement contains a description of all material agreements
    relating to data processing computer software and hardware now
    being used in the business operations of any Acquired
    Corporation Company. Acquired Corporation has no Knowledge of
    any defects, irregularities or problems with any of its computer
    hardware or software which renders such hardware or software
    unable to satisfactorily perform the tasks and functions to be
    performed by them in the business of any Acquired Corporation
    Company. Except as set forth in Schedule 5.6(d) to Acquired
    Corporation’s Disclosure Supplement, each applicable
    Acquired Corporation Company owns or has the uncontested right,
    and after the Effective Date will continue to own or have the
    uncontested right, to use all such computer software and
    hardware.

 

    5.7  Commitments.  Except as set
    forth in Schedule 5.7 to Acquired Corporation’s
    Disclosure Supplement or in the most recent financial statements
    referred to in Section 5.4(a), no Acquired Corporation
    Company is a party to any oral or written (i) Contracts for
    the employment of any officer or employee which is not
    terminable on 30 days’ (or less) notice,
    (ii) profit sharing, bonus, deferred compensation, savings,
    stock option, severance pay, pension or retirement plan,
    agreement or arrangement, (iii) loan agreement, indenture
    or similar agreement relating to the borrowing of money by such
    party, except for such agreements for borrowing made in the
    ordinary course of business, (iv) guaranty of any
    obligation for the borrowing of money or otherwise, excluding
    endorsements made for collection, letters of credit and
    guaranties made in the ordinary course of business,
    (v) consulting Contracts, (vi) collective bargaining
    agreement, (vii) agreement with any present or former
    officer, director or shareholder of such party, or
    (viii) any Contract (A) which limits the freedom of
    any of the Acquired Corporation Companies to compete in any line
    of business or with any Person or (B) which limits the
    freedom of any other Person to compete in any line of business
    with any Acquired Corporation Company; or (ix) other
    Contract, agreement or other commitment which involves the
    payment by any Acquired Corporation Company of amounts
    aggregating $50,000 or more in any twelve-month period or is
    otherwise material to the business, operations, prospects or
    Assets or to the condition, financial or otherwise, of any
    Acquired Corporation Company. Complete and accurate copies of
    all Contracts, plans and other items so listed will be made
    available to Buyer for inspection.

 

    5.8  Charter and
    Bylaws.  Schedule 5.8 to Acquired
    Corporation’s Disclosure Supplement contains true and
    correct copies of the articles of incorporation and bylaws of
    each Acquired Corporation Company, including all amendments
    thereto, as currently in effect. There will be no changes in
    such articles of incorporation or bylaws prior to the Effective
    Date without the prior written consent of Buyer.

 

    5.9  Litigation; Compliance with
    Laws.  There is no Litigation (whether or not
    purportedly on behalf of Acquired Corporation) pending or, to
    the Knowledge of Acquired Corporation, threatened against or
    affecting any Acquired Corporation Company (nor does Acquired
    Corporation have Knowledge of any facts which are likely to give
    rise to any such Litigation) at law or in equity, or before or
    by any governmental department, commission, board, bureau,
    agency or instrumentality, domestic or foreign, or before any
    arbitrator of any kind, which involves the possibility of any
    judgment or Liability not fully covered by insurance in excess
    of a reasonable deductible amount or which may have a Material
    Adverse Effect on Acquired Corporation, and no Acquired
    Corporation Company is in Default with respect to any judgment,
    order, writ, injunction, decree, award, rule or regulation of
    any

    

    A-13

 

    court, arbitrator or governmental department, commission, board,
    bureau, agency or instrumentality, which Default would have a
    Material Adverse Effect on Acquired Corporation. Except as
    disclosed in Schedule 5.9 to Acquired Corporation’s
    Disclosure Supplement, to the Knowledge of Acquired Corporation,
    each Acquired Corporation Company has complied in all material
    respects with all material applicable Laws and Regulations
    including those imposing Taxes, of any applicable jurisdiction
    and of all states, municipalities, other political subdivisions
    and Agencies, in respect of the ownership of its Assets and the
    conduct of its business, which, if not complied with, would have
    a Material Adverse Effect on Acquired Corporation.

 

    5.10  Material Contract
    Defaults.  Except as disclosed on
    Schedule 5.10 to Acquired Corporation’s Disclosure
    Supplement, no Acquired Corporation Company is in Default in any
    material respect under the terms of any material Contract,
    agreement, lease or other commitment which is or may be material
    to the business, operations or Assets, or the condition,
    financial or otherwise, of such company and, to the Knowledge of
    Acquired Corporation, there is no event which, with notice or
    lapse of time, or both, may be or become an event of Default
    under any such material Contract, agreement lease or other
    commitment in respect of which adequate steps have not been
    taken to prevent such a Default from occurring.

 

    5.11  No Conflict with Other
    Instrument.  Upon the receipt of all required
    Consents, the consummation of the transactions contemplated by
    this Agreement will not result in the breach of any term or
    provision of or constitute a Default under any material Contract
    indenture, mortgage, deed of trust, lease identified on
    Schedule 5.6(b) to Acquired Corporation’s Disclosure
    Schedule or other material agreement or instrument to which any
    Acquired Corporation Company is a party and will not conflict
    with any provision of the charter or bylaws of any Acquired
    Corporation Company.

 

    5.12  Governmental
    Authorization.  Each Acquired Corporation Company
    has all Permits that, to the Knowledge of Acquired Corporation,
    are or will be legally required to enable any Acquired
    Corporation Company to conduct its business in all material
    respects as now conducted by each Acquired Corporation Company.

 

    5.13  Absence of Regulatory
    Communications.  Except as provided in
    Schedule 5.13 to Acquired Corporation’s Disclosure
    Supplement, no Acquired Corporation Company is subject to, nor
    has any Acquired Corporation Company received during the past
    three years, any written communication directed specifically to
    it from any Agency to which it is or has been subject or
    pursuant to which such Agency has imposed or has indicated it
    may impose any material restrictions on the operations of it or
    the business conducted by it or in which such Agency has raised
    any material question concerning the condition, financial or
    otherwise, of such company.

 

    5.14  Absence of Material Adverse
    Change.  To the Knowledge of Acquired Corporation,
    since the date of the most recent balance sheet provided under
    Section 5.4(a)(i), there have been no events, changes or
    occurrences which have had, or are reasonably likely to have,
    individually or in the aggregate, a Material Adverse Effect on
    any Acquired Corporation Company.

 

    5.15  Insurance.  Each Acquired
    Corporation Company has in effect insurance coverage and bonds
    with reputable insurers which, in respect to amounts, types and
    risks insured, management of Acquired Corporation reasonably
    believes to be adequate for the type of business conducted by
    such company, and all of which are identified on
    Schedule 5.15 to Acquired Corporation’s Disclosure
    Supplement. No Acquired Corporation Company is liable for any
    material retroactive premium adjustment. All insurance policies
    and bonds are valid, enforceable and in full force and effect,
    and no Acquired Corporation Company has received any notice of
    any material premium increase or cancellation with respect to
    any of its insurance policies or bonds. Within the last three
    years, no Acquired Corporation Company has been refused any
    insurance coverage which it has sought or applied for, and it
    has no reason to believe that existing insurance coverage cannot
    be renewed as and when the same shall expire, upon terms and
    conditions as favorable as those presently in effect, other than
    possible increases in premiums that do not result from any
    extraordinary loss experience. All policies of insurance
    presently held or policies containing substantially equivalent
    coverage will be outstanding and in full force with respect to
    each Acquired Corporation Company at all times from the date
    hereof to the Effective Date.

 

    5.16  Pension and Employee Benefit Plans.

 

    (a) To the Knowledge of Acquired Corporation, all employee
    benefit plans of each Acquired Corporation Company have been
    established in compliance with, and such plans have been
    operated in material compliance

    

    A-14

 

    with, all applicable Laws. Except as set forth in
    Schedule 5.16 to Acquired Corporation’s Disclosure
    Supplement, no Acquired Corporation Company sponsors or
    otherwise maintains a “pension plan” within the
    meaning of Section 3(2) of ERISA or any other retirement
    plan other than the First Kensington Bank 401(k) Plan effective
    as of January 1, 2002 of Acquired Corporation that is
    intended to qualify under Section 401 of the Code, nor do
    any unfunded Liabilities exist with respect to any employee
    benefit plan, past or present. To the Knowledge of Acquired
    Corporation, no employee benefit plan, any trust created
    thereunder or any trustee or administrator thereof has engaged
    in a “prohibited transaction,” as defined in
    Section 4975 of the Code, which may have a Material Adverse
    Effect on the condition, financial or otherwise, of any Acquired
    Corporation Company. No Acquired Corporation Company has any
    Liability to the Pension Benefit Guaranty Corporation. No
    Acquired Corporation Company is a party to, or otherwise bound
    by or subject to, any multi-employer plan.

 

    (b) To the Knowledge of Acquired Corporation, no amounts
    payable to any employee of any Acquired Corporation Company will
    fail to be deductible for federal income tax purposes by virtue
    of Section 280G of the Code and regulations thereunder.

 

    5.17  Buy-Sell Agreement.  To the
    Knowledge of Acquired Corporation, there are no agreements among
    any of its shareholders granting to any person or persons a
    right of first refusal in respect of the sale, transfer, or
    other disposition of shares of outstanding securities by any
    shareholder of Acquired Corporation, any similar agreement or
    any voting agreement or voting trust in respect of any such
    shares.

 

    5.18  Brokers.  Except for services
    provided by Alex Sheshunoff & Co., which has been
    retained by Acquired Corporation and the arrangements with
    which, including fees, have been disclosed to Buyer prior to the
    date hereof, all negotiations relative to this Agreement and the
    transactions contemplated by this Agreement have been carried on
    by Acquired Corporation directly with Buyer and without the
    intervention of any other person, either as a result of any act
    of Acquired Corporation, or otherwise, in such manner as to give
    rise to any valid claim against Acquired Corporation for a
    finder’s fee, brokerage commission or other like payment.

 

    5.19  Approval of Agreements.  The
    board of directors of Acquired Corporation has approved this
    Agreement and the transactions contemplated by this Agreement
    and has authorized the execution and delivery by Acquired
    Corporation of this Agreement. Subject to (a) the matters
    referred to in Section 8.2 and (b) approval by the
    stockholders of Acquired Corporation of the Merger and the
    transactions contemplated by this Agreement, Acquired
    Corporation has full power, authority and legal right to enter
    into this Agreement, and, upon appropriate vote of the
    shareholders of Acquired Corporation in accordance with this
    Agreement, Acquired Corporation shall have full power, authority
    and legal right to consummate the transactions contemplated by
    this Agreement.

 

    5.20  Disclosure.  No representation
    or warranty, nor any statement or certificate furnished or to be
    furnished to Buyer by Acquired Corporation, contains or will
    contain any untrue statement of a material fact or omits or will
    omit to state a material fact necessary to make the statements
    contained in this Agreement or in any such statement or
    certificate not misleading.

 

    5.21  Registration
    Statement.  (a) Acquired Corporation shall
    furnish all information to Buyer with respect to any Acquired
    Corporation Company including financial statements of Acquired
    Corporation as Buyer may reasonably request for inclusion in the
    Registration Statement, the Buyer Proxy Statement and the
    Buyer’s application for listing on NASDAQ of Buyer’s
    Common Stock to be registered by the Registration Statement, and
    such information and financial statements shall satisfy the
    requirements of SEC
    Form S-4
    and SEC
    Regulation S-X
    under the 1933 Act, as applicable.

 

    (b) At the time the Registration Statement becomes
    effective and at the time of the Stockholders Meetings, the
    Registration Statement, including the Buyer Proxy Statement
    which shall constitute part thereof, will not contain an untrue
    statement of a material fact or omit to state a material fact
    necessary in order to make the statements therein, in the light
    of the circumstances under which they were made, not misleading;
    provided, however, that the representations and warranties in
    this Section shall only apply to statements in or omissions from
    the Buyer Proxy Statement relating to descriptions of the
    business of Acquired Corporation, its Assets, properties,
    operations, and capital stock or to information furnished in
    writing by Acquired Corporation or its representatives expressly
    for inclusion in the Buyer Proxy Statement.

    

    A-15

 

    (c) At the time of the Stockholders’ Meetings, the
    Acquired Corporation Proxy Statement will not contain an untrue
    statement of a material fact or omit to state a material fact
    necessary in order to make the statements therein, in the light
    of the circumstances under which they were made, not misleading;
    provided, however, that the representations and warranties in
    this subsection shall not apply to statements in or omissions
    from the Acquired Corporation Proxy Statement made in reliance
    upon and in conformity with information furnished in writing to
    Acquired Corporation by Buyer or any of its representatives
    expressly for use in the Acquired Corporation Proxy Statement or
    information included in the Acquired Corporation Proxy Statement
    regarding the business of Buyer, its operations, Assets and
    capital.

 

    5.22  Loans; Adequacy of Allowance for Loan
    Losses.  All reserves for loan losses shown on the
    financial statements of Acquired Corporation for the year ended
    December 31, 2005 are adequate in all material respects.
    Acquired Corporation has no Knowledge of any fact which is
    likely to require a future material increase in the provision
    for loan losses or a material decrease in the loan loss reserve
    reflected in such financial statements. To the Knowledge of
    Acquired Corporation, each loan reflected as an Asset on the
    financial statements of Acquired Corporation is the legal, valid
    and binding obligation of the obligor of each loan, enforceable
    in accordance with its terms subject to the effect of
    bankruptcy, insolvency, reorganization, moratorium, or other
    similar laws relating to creditors’ rights generally and to
    general equitable principles and complies with all Laws to which
    it is subject. Acquired Corporation does not have in its
    portfolio any loan exceeding its legal lending limit, and except
    as disclosed on Schedule 5.22 to Acquired
    Corporation’s Disclosure Supplement, to the Knowledge of
    Acquired Corporation, it has no material loans that are
    delinquent in payment for more than 30 days, substandard,
    doubtful, loss, or nonperforming.

 

    5.23  Environmental Matters.  Except
    as provided in Schedule 5.23 to Acquired Corporation’s
    Disclosure Supplement, to the Knowledge of Acquired Corporation,
    each Acquired Corporation Company is in material compliance with
    all Laws and other governmental requirements relating to the
    generation, management, handling, transportation, treatment,
    disposal, storage, delivery, discharge, release or emission of
    any waste, pollution, or toxic, hazardous or other substance
    (the “Environmental Laws”), and Acquired Corporation
    has no Knowledge that any Acquired Corporation Company has not
    complied with all regulations and requirements promulgated by
    the Occupational Safety and Health Administration that are
    applicable to any Acquired Corporation Company. To the Knowledge
    of Acquired Corporation, there is no Litigation pending or
    threatened with respect to any violation or alleged violation of
    the Environmental Laws. To the Knowledge of Acquired
    Corporation, with respect to Assets of any Acquired Corporation
    Company, including any Loan Property of any material loan,
    (i) there has been no spillage, leakage, contamination or
    release of any substances for which the appropriate remedial
    action has not been completed; (ii) no owned or leased
    property is contaminated with or contains any hazardous
    substance or waste; and (iii) there are no underground
    storage tanks on any premises owned or leased by any Acquired
    Corporation Company. No Acquired Corporation Company has
    participated in the management of any property of any third
    party including without limitation any Loan Property. Moreover,
    to the Knowledge of Acquired Corporation, no Acquired
    Corporation Company has extended credit, either on a secured or
    unsecured basis, to any person or other entity engaged in any
    activities which would require or requires such person or entity
    to obtain any Permits which are required under any Environmental
    Law which have not been obtained.

 

    5.24  Transfer of Shares.  Acquired
    Corporation has no Knowledge of any plan or intention on the
    part of Acquired Corporation’s shareholders to sell or
    otherwise dispose of any of the Buyer’s Common Stock to be
    received by them in the Merger that would reduce such
    shareholders’ ownership to a number of shares having, in
    the aggregate, a fair market value of less than fifty (50%)
    percent of the total fair market value of Acquired Corporation
    common stock outstanding immediately before the Merger.

 

    5.25  Collective Bargaining.  There
    are no labor contracts, collective bargaining agreements,
    letters of undertakings or other arrangements, formal or
    informal, between any Acquired Corporation Company and any union
    or labor organization covering any Acquired Corporation
    Company’s employees and none of said employees are
    represented by any union or labor organization.

 

    5.26  Labor Disputes.  To the
    Knowledge of Acquired Corporation, each Acquired Corporation
    Company is in material compliance with all federal and state
    laws respecting employment and employment practices, terms and
    conditions of employment, wages and hours. No Acquired
    Corporation Company is or has been engaged in any

    

    A-16

 

    unfair labor practice, and, to the Knowledge of Acquired
    Corporation, no unfair labor practice complaint against any
    Acquired Corporation Company is pending before the National
    Labor Relations Board. Relations between management of each
    Acquired Corporation Company and the employees are amicable and
    there have not been, nor to the Knowledge of Acquired
    Corporation, are there presently, any attempts to organize
    employees, nor to the Knowledge of Acquired Corporation, are
    there plans for any such attempts.

 

    5.27  Derivative Contracts.  No
    Acquired Corporation Company is a party to or has agreed to
    enter into a swap, forward, future, option, cap, floor or collar
    financial contract, or any other interest rate or foreign
    currency protection contract or derivative security not included
    in Acquired Corporation’s financial statements delivered
    under Section 5.4 hereof which is a financial derivative
    contract (including various combinations thereof). With respect
    to all agreements currently outstanding pursuant to which any
    Acquired Corporation Company has purchased securities subject to
    an agreement to resell, such Acquired Corporation Company has a
    valid, perfected first lien or security interest in the
    securities or other collateral securing such agreement, and the
    value of such collateral equals or exceeds the amount of the
    debt secured thereby. With respect to all agreements currently
    outstanding pursuant to which any Acquired Corporation Company
    has sold securities subject to an agreement to repurchase, no
    Acquired Corporation Company has pledged collateral in excess of
    the amount of the debt secured thereby. No Acquired Corporation
    Company has pledged collateral in excess of the amount required
    under any interest rate swap or other similar agreement
    currently outstanding.

 

    5.28  Accounting, Tax and Regulatory
    Matters.  No Acquired Corporation Company has
    taken any action or has any Knowledge of any fact or
    circumstance that is reasonably likely to (i) prevent the
    transactions provided for herein, including the Merger, from
    qualifying as a reorganization within the meaning of
    Section 368(a) of the IRC, or (ii) materially impede
    or delay receipt of any Consents of Agencies referred to in
    subsection 8.2 of this Agreement.

 

    5.29  Offices.  The headquarters of
    Acquired Corporation and each other office, branch or facility
    maintained and operated by each Acquired Corporation Company
    (including without limitation representative and loan production
    offices and operations centers) and the locations thereof are
    listed on Schedule 5.29 to Acquired Corporation’s
    Disclosure Supplement. None of the Acquired Corporation
    Companies maintains any other office or branch or conducts
    business at any other location, or has applied for or received
    permission to open any additional office or branch or to operate
    at any other location.

 

    5.30  Data Processing Systems.  The
    electronic data processing systems and similar systems utilized
    in processing the work of each of the Acquired Corporation
    Companies, including both hardware and software, are wholly
    within the possession and control of one of the Acquired
    Corporation Companies or its third party provider such that
    physical access to all software, documentation, passwords,
    access codes, backups, disks and other data storage devices and
    similar items readily can be made accessible to and delivered
    into the possession of Buyer or Buyer’s third party
    provider.

 

    5.31  Intellectual Property.  Each of
    the Acquired Corporation Companies owns or possesses valid and
    binding licenses and other rights to use without additional
    payment all material patents, copyrights, trade secrets, trade
    names, service marks, trademarks, computer software and other
    intellectual property used in its business; and none of the
    Acquired Corporation Companies has received any notice of
    conflict with respect thereto that asserts the rights of others.
    The Acquired Corporation Companies have in all material respects
    performed all the obligations required to be performed by them
    and are not in default in any material respect under any
    contract, agreement, arrangement or commitment relating to any
    of the foregoing. Schedule 5.31 to Acquired
    Corporation’s Disclosure Supplement lists all of the
    trademarks, trade names, licenses and other intellectual
    property used to conduct the businesses of the Acquired
    Corporation Companies. Each of the Acquired Corporation
    Companies has taken reasonable precautions to safeguard its
    trade secrets from disclosure to third-parties.

 

    5.32  Administration of
    Trust Accounts.  The Bank does not possess
    and does not exercise trust powers.

 

    5.33  Regulatory Approvals.  Acquired
    Corporation has no Knowledge of any reason why all requisite
    regulatory approvals regarding the Merger should not or cannot
    be obtained.

 

    5.34  Opinion of Counsel.  Acquired
    Corporation has no Knowledge of any facts that would preclude
    issuance of the opinion of counsel referred to in
    Section 10.4.

    

    A-17

 

    5.35  Anti-takeover Provisions.  The
    provisions of Section 607.0901 and Section 607.0902 of
    the FBCA do not apply to Acquired Corporation. Except for state
    and/or
    federal bank regulatory change in control Laws, no provisions of
    an anti-takeover nature contained in their respective
    organizational documents or the provisions of any federal or
    state “anti-takeover,” “fair price,”
    “control share acquisition” or similar Laws
    (“Takeover Laws”) apply to Acquired Corporation, this
    Agreement or the Merger.

 

    5.36  Transactions with
    Management.  Except for (a) deposits, all of
    which are on terms and conditions comparable in all material
    respects to those made available to other nonaffiliated
    similarly situated customers of the Bank at the time such
    deposits were entered into, (b) the loans listed on
    Schedule 5.36 to Acquired Corporation’s Disclosure
    Supplement, (c) the agreements designated on
    Schedule 5.36 to Acquired Corporation’s Disclosure
    Supplement, (d) obligations under employee benefit plans of
    the Acquired Corporation Companies set forth in
    Schedule 5.16 to Acquired Corporation’s Disclosure
    Supplement and (e) any other items described on
    Schedule 5.36 to Acquired Corporation’s Disclosure
    Supplement, there are no contracts with or commitments to
    present or former stockholders who own or owned more than 1% of
    the Acquired Corporation Stock, directors, officers or employees
    (or their Related Interests) involving the expenditure of more
    than $1,000 as to any one individual (including any business
    directly or indirectly controlled by any such person), or more
    than $5,000 for all such contracts for commitments in the
    aggregate for all such individuals.

 

    5.37  Deposits.  Except as set forth
    on Schedule 5.37 to Acquired Corporation’s Disclosure
    Supplement, none of the deposits of the Bank are subject to any
    encumbrance, legal restraint or other legal process (other than
    garnishments, pledges, set off rights, limitations applicable to
    public deposits, escrow limitation, arrangements for
    “sweeps” of business deposit accounts and similar
    actions taken in the ordinary course of business), and other
    than deposits of Acquired Corporation no portion of deposits of
    the Bank represents a deposit of any other Acquired Corporation
    Company.

 

    5.38  Accounting Controls.  Each of
    the Acquired Corporation Companies has devised and maintained
    systems of internal accounting control sufficient to provide
    reasonable assurances that: (i) all material transactions
    are executed in accordance with general or specific
    authorization of the Board of Directors and the duly authorized
    executive officers of the applicable Acquired Corporation
    Company; (ii) all material transactions are recorded as
    necessary to permit the preparation of financial statements in
    conformity with GAAP with respect to the applicable Acquired
    Corporation Company or any other criteria applicable to such
    financial statements, and to maintain proper accountability for
    items therein; (iii) access to the material Assets of each
    of the Acquired Corporation Companies is permitted only in
    accordance with general or specific authorization of the Board
    of Directors and the duly authorized executive officers; and
    (iv) the recorded accountability for items is compared with
    the actual levels at reasonable intervals and appropriate
    actions taken with respect to any differences.

 

    5.39  Deposit Insurance.  The deposit
    accounts of the Bank are insured by the FDIC in accordance with
    the provisions of the FDIC Act. The Bank has paid all regular
    premiums and special assessments and filed all reports required
    under the FDIC Act.

 

    5.40  Registration
    Obligations.  Neither of Acquired Corporation or
    the Bank is under any obligation, contingent or otherwise, which
    will survive the Merger to register its securities under the
    1933 Act or any state securities laws.

 

    ARTICLE 6

    Additional Covenants
    

 

    6.1  Additional Covenants of
    Buyer.  Buyer covenants to and with Acquired
    Corporation as follows:

 

    (a) Registration Statement and Other Filings. As
    soon as reasonably practicable after the execution of this
    Agreement, Buyer shall prepare and file with the SEC the
    Registration Statement on
    Form S-4
    (or such other form as may be appropriate) and all amendments
    and supplements thereto, in form reasonably satisfactory to
    Acquired Corporation and its counsel, with respect to the Common
    Stock to be issued pursuant to this Agreement. Buyer shall use
    reasonable good faith efforts to prepare all necessary filings
    with any Agencies which may be necessary for approval to
    consummate the transactions contemplated by this Agreement and
    shall use its reasonable efforts to cause the Registration
    Statement to become effective under

    

    A-18

 

    the 1933 Act as soon as reasonably practicable after the filing
    thereof and take any action required to be taken under other
    applicable securities laws in connection with the issuance of
    the shares of Buyer’s Common Stock upon consummation of the
    Merger. Copies of all such filings (and any amendments thereto)
    shall be furnished no less than five (5) business days in
    advance to Acquired Corporation and its counsel.

 

    (b) Blue Sky Permits. Buyer shall use its best
    efforts to obtain, prior to the effective date of the
    Registration Statement, all necessary state securities law or
    “blue sky” permits and approvals required to carry out
    the transactions contemplated by this Agreement.

 

    (c) Reports. Buyer shall furnish to Acquired
    Corporation:

 

    (i) Promptly upon receipt thereof, true and complete copies
    of all reports prepared by Buyer’s internal audit staff and
    copies of audit reports, reports on internal control and other
    reports or comment letters submitted to Buyer by independent
    auditors in connection with each annual, interim or special
    audit of the books of Buyer made by such accountants;

 

    (ii) As soon as practicable, copies of all such financial
    statements and loan reports as it shall provide the members of
    its board of directors and of such regular and periodic reports
    as Buyer may file with the SEC or any other Agency; and

 

    (iii) With reasonable promptness, such additional financial
    data as Acquired Corporation may reasonably request.

 

    (d) No Control of Acquired Corporation by Buyer.
    Notwithstanding any other provision hereof, until the Effective
    Date, the authority to establish and implement the business
    policies of Acquired Corporation shall continue to reside solely
    in Acquired Corporation’s officers and board of directors.

 

    (e) Listing. Prior to the Effective Date, Buyer
    shall cause the listing of the shares of Buyer’s Common
    Stock to be issued in the Merger on the NASDAQ or other
    quotations system on which such shares are primarily traded.

 

    (f) Employee Benefit Matters. On the Effective Date,
    all employees of any Acquired Corporation Company shall, at
    Buyer’s option, either become employees of the Resulting
    Corporation or its Subsidiaries or be entitled to severance
    benefits under the severance policy of either the Bank or
    Superior Bank having the greater benefits as of the date of this
    Agreement (except Gerald K. Archibald and William R.
    Bender, Jr., who shall resign as employees of the Bank as
    of the Effective Date). All employees of any Acquired
    Corporation Company who become employees of the Resulting
    Corporation or its Subsidiaries on the Effective Date shall be
    entitled, to the extent permitted by applicable Law, to
    participate as soon as administratively and financially
    practicable after the Effective Date in all benefit plans of
    Superior Bank to the same extent as Superior Bank employees,
    except as stated otherwise in this Section. Buyer shall continue
    each existing benefit plans of any Acquired Corporation Company
    until such benefit plan is replaced with the like benefit plan
    of Superior Bank. With respect to employee benefits maintained
    by Buyer or by Superior Bank in which employees of any Acquired
    Corporation Company participate after the Effective Date, Buyer
    agrees: (i) to treat service by Acquired Corporation
    Company employees prior to the Effective Date as service with
    Buyer or Superior Bank, for eligibility and vesting purposes
    only, for all retirement, vacation, sick pay, severance and
    other benefit plans of Superior Bank and (ii) to waive
    waiting periods and pre-existing condition limitations, if any,
    as would otherwise be applied to participating employees of an
    Acquired Corporation Company upon the implementation of such
    employee benefits constituting “group health plans”
    within the meaning of Section 5000(b)(i) of the Code. In
    addition, if the Effective Date falls within an annual period of
    coverage under any group health plan of the Resulting
    Corporation and its Subsidiaries, each such Acquired Corporation
    Company employee shall be given credit for covered expenses paid
    by that employee under comparable employee benefit plans of the
    Acquired Corporation Company during the applicable coverage
    period through the Effective Date towards satisfaction of any
    annual deductible limitation and
    out-of-pocket
    maximum that may apply under that group health plan of the
    Resulting Corporation and its Subsidiaries. Buyer shall give the
    required notifications when due pursuant to COBRA to all
    employees of any Acquired Corporation Company who do not become
    employees of the Resulting Corporation or its Subsidiaries on
    the Effective Date and administer all elections of such
    employees under its “group health plan”.

    

    A-19

 

    (g) Indemnification. (i) Subject to the
    conditions set forth in subsection (ii) hereof, for a
    period of four years from and after the Effective Time, Buyer
    shall indemnify and hold harmless each present and former
    director
    and/or
    officer of any Acquired Corporation Company (the
    “Indemnified Parties”) against any costs or expenses
    (including reasonable attorney’s fees), judgments, fines
    losses, claims, damages, settlements or liabilities incurred in
    connection with any claim, action, suit, proceeding or
    investigation, whether civil, criminal administrative or
    investigative (each, a “Claim”), arising out of or
    pertaining to matters existing or occurring at or prior to the
    Effective Date, whether asserted or claimed prior to, at or
    after the Effective Date, to the fullest extent that any
    Acquired Corporation Company would have been permitted to
    indemnify such person under the FBCA, the articles of
    incorporation, certificate of incorporation or bylaws of any
    such Acquired Corporation Company in effect on the date hereof.

 

    (ii) Any Indemnified Party wishing to claim indemnification
    under this Section 6.1(g) shall notify Buyer within
    45 days after the Indemnified Party’s receipt of a
    notice of any Claim, but the failure to so notify shall not
    relieve Buyer of any Liability it may have to such Indemnified
    Party, unless such failure materially prejudices Buyer in the
    defense of the Claim or otherwise. In the event of any claim
    (whether arising before or after the Effective Date),
    (A) Buyer shall have the right to assume the defense
    thereof, and Buyer shall not be liable to such Indemnified
    Parties for any legal expenses of other counsel or any other
    expenses subsequently incurred by such Indemnified Parties in
    connection with the defense thereof, except that if Buyer elects
    not to assume such defense, or counsel for the Indemnified
    Parties advises that there are issues which raise conflicts of
    interest between Buyer and the Indemnified Parties, the
    Indemnified Parties may retain counsel satisfactory to them, and
    Buyer shall pay the reasonable fees and expenses of such counsel
    for the Indemnified Parties promptly after statements therefor
    are received; provided, however, that Buyer shall be obligated
    pursuant to this Section 6.1(g)(ii)(A) to pay for only one
    firm of counsel for all Indemnified Parties in any jurisdiction,
    unless the interests of any Indemnified Party conflict with the
    interests of another Indemnified Party, then, in such event,
    Buyer shall pay for the counsel for each Indemnified Party
    having a conflicting interest, (B) the Indemnified Parties
    will cooperate in the defense of any such matter and
    (C) Buyer shall not be liable for any settlement effected
    without its prior written consent which shall not be
    unreasonably withheld; and provided further that Buyer shall not
    have any obligation hereunder to any Indemnified Party when and
    if a court of competent jurisdiction shall determine, and such
    determination shall have become final, that the indemnification
    of such Indemnified Party in the manner contemplated hereby is
    prohibited by applicable law.

 

    (h) Payment to Acquired Corporation upon
    Termination. If this Agreement is terminated by Buyer
    pursuant to Section 13.2 (g) hereof, Buyer covenants
    and agrees that it shall pay to Acquired Corporation upon demand
    $420,000 by wire transfer of same-day funds to compensate
    Acquired Corporation for its direct and indirect costs and
    expenses (and not as a penalty) in connection with the
    transactions contemplated by this Agreement, including Acquired
    Corporation’s management time devoted to negotiation and
    preparation for the Merger and Acquired Corporation’s loss
    as a result of the Merger not being consummated.

 

    (i) Transfer of Shares by Affiliate of Acquired
    Corporation. Neither Buyer nor Buyer’s transfer agent
    will take any action with respect to the sale of shares of
    Buyer’s Common Stock after the Effective Date by any
    affiliate of Acquired Corporation who is not an affiliate of
    Buyer inconsistent with the opinion of Haskell Slaughter
    Young & Rediker, LLC, counsel to Buyer, to be delivered
    pursuant to Section 9.4 hereof.

 

    6.2  Additional Covenants of Acquired
    Corporation.  Acquired Corporation covenants to
    and with Buyer as follows:

 

    (a) Operations. Acquired Corporation will conduct
    its business and the business of each Acquired Corporation
    Company in a proper and prudent manner and will use its best
    efforts to maintain its relationships with its depositors,
    customers and employees. No Acquired Corporation Company will
    engage in any material transaction outside the ordinary course
    of business or make any material change in its accounting
    policies or methods of operation, nor will Acquired Corporation
    permit the occurrence of any change or event which would render
    any of the representations and warranties in Article 5
    hereof untrue in any material respect at and as of the Effective
    Date with the same effect as though such representations and
    warranties had been made at and as of such Effective Date.
    Acquired Corporation shall contact any person who may be
    required to execute an undertaking under Section 10.5
    hereof to request such undertaking and shall take all such
    reasonable steps

    

    A-20

 

    as are necessary to obtain such undertaking. Acquired
    Corporation will take no action that would prevent or impede the
    Merger from qualifying as a tax-free reorganization within the
    meaning of Section 368 of the Code.

 

    (b) Stockholders Meeting; Best Efforts. Acquired
    Corporation will cooperate with Buyer in the preparation of the
    Registration Statement and any regulatory filings and will cause
    a stockholders meeting of Acquired Company’s stockholders
    to be held for the purpose of approving the Merger as soon as
    practicable after the effective date of the Registration
    Statement, and will use its best efforts to bring about the
    transactions contemplated by this Agreement, including
    stockholder approval of this Agreement, as soon as practicable
    unless this Agreement is terminated as provided herein.

 

    (c) Prohibited Negotiations. (i) Except with
    respect to this Agreement and the transactions contemplated
    hereby, no Acquired Corporation Company nor any affiliate
    thereof nor any investment banker, attorney, accountant, or
    other representative (collectively, “Representatives”)
    retained by an Acquired Corporation Company shall directly or
    indirectly solicit any Acquisition Proposal by any Person.
    Except to the extent necessary as determined by the board of
    directors of Acquired Corporation to comply with the fiduciary
    duties of Acquired Corporation’s Board of Directors, no
    Acquired Corporation Company or any Representative thereof shall
    furnish any non-public information that it is not legally
    obligated to furnish, negotiate with respect to, or enter into
    any Contract with respect to, any Acquisition Proposal, and each
    Acquired Corporation Company shall direct and use its reasonable
    efforts to cause all of its Representatives not to engage in any
    of the foregoing, but Acquired Corporation may communicate
    information about such an Acquisition Proposal to its
    shareholders if and to the extent that it is required to do so
    in order to comply with its fiduciary duties as advised in
    writing by counsel to such Board of Directors. Acquired
    Corporation shall promptly notify Buyer orally and in writing in
    the event that any Acquired Corporation Company receives any
    inquiry or proposal relating to any such Acquisition Proposal
    and, unless the board of directors of Acquired Corporation
    determines with the advice of counsel that such action is
    inconsistent with its fiduciary duties, shall advise Buyer of
    the identity of the person making such Acquisition Proposal.
    Acquired Corporation shall immediately cease and cause to be
    terminated any existing activities, discussions, or negotiations
    with any Persons other than Buyer conducted heretofore with
    respect to any of the foregoing.

 

    (ii) In the event that Acquired Corporation enters into a
    letter of intent, agreement in principle or definitive agreement
    regarding an Acquisition Proposal with any third party (other
    than Buyer or any of its Subsidiaries) prior to the earlier of
    (i) the Effective Date or (ii) the termination of this
    Agreement pursuant to Article 13 hereof, or if Acquired
    Corporation receives an Acquisition Proposal from a third party
    (other than Buyer and its Subsidiaries) prior to the termination
    of this Agreement by Buyer pursuant to Section 13.2(b),
    (c) or (d) or by Acquired Corporation pursuant to
    Section 13(d) hereof, and the Merger is not closed as
    contemplated by this Agreement (unless it is not closed because
    this Agreement has been terminated pursuant to the foregoing
    Sections of Article 13), Acquired Corporation covenants and
    agrees that it shall pay to Buyer upon demand an amount equal to
    $2,100,000 by wire transfer of same-day funds to compensate
    Buyer for its direct and indirect costs and expenses (and not as
    a penalty) in connection with the transactions contemplated by
    this Agreement, including Buyer’s management time devoted
    to negotiation and preparation for the Merger and Buyer’s
    loss as a result of the Merger not being consummated. Upon
    receipt of such payment, this Agreement shall terminate, have no
    further force or effect and all obligations of Buyer and
    Acquired Corporation to the other shall be deemed released and
    discharged, except as provided in Article 11.

 

    (d) Director Recommendation. The members of the
    Board of Directors of Acquired Corporation agree to vote their
    shares of Acquired Corporation Stock in favor of and to support
    publicly the Merger, and to recommend to the stockholders of
    Acquired Corporation the approval of the Merger.

 

    (e) Stockholder Voting. If requested by Buyer,
    Acquired Corporation shall as soon as practicable after the date
    of such request cause each non-director officer of Acquired
    Corporation who owns 5% or more of the outstanding voting
    securities of Acquired Corporation, and each director of
    Acquired Corporation, to execute a Lock-Up and Non-Competition
    Agreement in substantially the form of Exhibit A hereto.

    

    A-21

 

    (f) Financial Statements and Monthly Status Reports.
    Acquired Corporation shall furnish to Buyer:

 

    (i) As soon as practicable and in any event for the
    quarterly period ending March 31, 2006 within the time
    period reasonably to allow Buyer to prepare the Registration
    Statement and thereafter within 30 days after the end of
    each quarterly period, consolidated statements of operations of
    Acquired Corporation for such period and for the period
    beginning at the commencement of the fiscal year and ending at
    the end of such quarterly period, and a consolidated statement
    of financial condition of Acquired Corporation as of the end of
    such quarterly period, setting forth in each case in comparative
    form figures for the corresponding periods ending in the
    preceding fiscal year, subject to changes resulting from
    year-end adjustments;

 

    (ii) Promptly upon receipt thereof, copies of all audit
    reports submitted to Acquired Corporation by independent
    auditors in connection with each annual, interim or special
    audit of the books of Acquired Corporation made by such
    accountants, including any management letters;

 

    (iii) As soon a practicable, copies of all such financial
    statements and reports as it shall send to its stockholders and
    of such regular and periodic reports as Acquired Corporation may
    file with the SEC or any other Agency;

 

    (iv) With reasonable promptness, such additional financial
    data and information with respect to the loan and investment
    portfolio of any Acquired Corporation Company as Buyer may
    reasonably request; and

 

    (v) Within 10 calendar days after the end of each month
    (or, if the financial statements referred to in clause (d)
    are not then available, as soon as possible thereafter)
    commencing with the next calendar month following the date of
    this Agreement and ending at the Effective Date, a written
    description of (a) any non-compliance with the terms of
    this Agreement, together with its then current estimate of the
    out-of-pocket
    costs and expenses incurred or reasonably accruable in
    connection with the transactions contemplated by this Agreement;
    (b) the status, as of the date of the report, of all
    existing or threatened Litigation against any Acquired
    Corporation Company; (c) copies of minutes of any meeting
    of the board of directors of any Acquired Corporation Company
    and any committee thereof occurring in the month for which such
    report is made, including all documents presented to the
    directors at such meetings; (d) copies of minutes of any
    meeting of senior management committee of any Acquired Company
    including without limitation risk management, technology,
    operations and similar committees; and (e) monthly
    financial statements, including a balance sheet and income
    statement.

 

    (g) Fiduciary Duties. Prior to the Effective Date,
    Acquired Corporation shall take all necessary steps requested by
    Buyer or otherwise to ensure that (i) no director or
    officer (each an “Executive”) of Acquired Corporation
    shall, directly or indirectly, own, manage, operate, join,
    control, be employed by or participate in the ownership,
    proposed ownership, management, operation or control of or be
    connected in any manner with, any business, corporation or
    partnership which is competitive to the business of any Acquired
    Corporation Company, (ii) all Executives, at all times,
    shall satisfy their fiduciary duties to Acquired Corporation and
    its Subsidiaries, and (iii) such Executives shall not
    (except as required in the course of his or her employment with
    any Acquired Corporation Company) communicate or divulge to, or
    use for the benefit of himself or herself or any other person,
    firm, association or corporation, without the express written
    consent of Acquired Corporation, any confidential information
    which is possessed, owned or used by or licensed by or to any
    Acquired Corporation Company or confidential information
    belonging to third parties which any Acquired Corporation
    Company shall be under obligation to keep secret or which may be
    communicated to, acquired by or learned of by the Executive in
    the course of or as a result of his or her employment with any
    Acquired Corporation Company.

 

    (h) Certain Practices. Acquired Corporation shall
    (i) provide Buyer with copies of its loan authorization
    sheets five (5) business days prior to the closing of any
    loan after the date of this Agreement for all loans approved by
    the Bank in excess of $500,000; (ii) consult with Buyer and
    advise Buyer of any loan request outside the normal course of
    business of the Bank, (iii) consult with Buyer in advance
    on any agreement to make or to permit any amendment or
    termination of any Contract by or with any Acquired Corporation

    

    A-22

 

    Company requiring capital expenditures of more than $25,000,
    other than capital expenditures associated with the
    construction, equipping and furnishing of the Spring Hill,
    Florida and Palm Harbor, Florida office sites; and
    (iv) consult with Buyer to coordinate various business
    issues on a basis mutually satisfactory to Acquired Corporation
    and Buyer. Acquired Corporation and the Bank shall not be
    required to undertake any of such activities, however, except as
    such activities may be in compliance with existing Law and
    Regulations.

 

    (i) Environmental Matters. Acquired Corporation will
    provide access to its banking facilities for purposes of Buyer
    engaging one or more firms to conduct a Phase I
    environmental site assessment or transaction screen of each of
    the banking facilities currently owned or leased by any Acquired
    Corporation Company. Buyer has requested such inspection and
    testing in an effort reasonable to determine whether potential
    liabilities exist relating to Environmental Laws. Buyer will
    engage any such firms for such purposes within thirty
    (30) days after the date hereof. Delivery of the
    Phase I assessments and transaction screens satisfactory to
    Buyer is an express condition precedent to the consummation of
    the Merger. Within fifteen days after receipt of these reports,
    Buyer shall notify Acquired Corporation in writing, with a copy
    of such assessments and screens, if, in the reasonable judgment
    of Buyer, any potential liabilities identified in such reports
    could reasonably be expected to have or result in a Material
    Adverse Effect on Acquired Corporation and, if so, that it
    intends to terminate this Agreement based upon the results of
    such reports; otherwise, the Phase I assessments and
    transaction screens shall be deemed satisfactory to Buyer.

 

    (j) Insurance. Prior to the Effective Date, Acquired
    Corporation shall purchase for, and on behalf of, its current
    and former officers and directors, extended coverage under the
    current directors’ and officers’ liability insurance
    policy maintained by Acquired Corporation to provide for
    continued coverage of such insurance for a period of four years
    following the Effective Date with respect to matters occurring
    prior to the Effective Date.

 

    ARTICLE 7

    

 

    Mutual
    Covenants and Agreements
    

 

    7.1  Best Efforts,
    Cooperation.  Subject to the terms and conditions
    herein provided, Buyer and Acquired Corporation each agrees to
    use its best efforts promptly to take, or cause to be taken, all
    actions and do, or cause to be done, all things necessary,
    proper or advisable under applicable Laws or otherwise,
    including, without limitation, promptly making required
    deliveries of stockholder lists and stock transfer reports and
    attempting to obtain all necessary Consents and waivers and
    regulatory approvals, including the holding of any regular or
    special board meetings, to consummate and make effective, as
    soon as practicable, the transactions contemplated by this
    Agreement. The officers of each Party to this Agreement shall
    fully cooperate with officers and employees, accountants,
    counsel and other representatives of the other Parties not only
    in fulfilling the duties hereunder of the Party of which they
    are officers but also in assisting, directly or through
    direction of employees and other persons under their supervision
    or control, such as stock transfer agents for the Party, the
    other Parties requiring information which is reasonably
    available from such Party.

 

    7.2  Press Release.  Each Party
    hereto agrees that, unless approved by the other Parties in
    advance, such Party will not make any public announcement, issue
    any press release or other publicity or confirm any statements
    by any person not a party to this Agreement concerning the
    transactions contemplated hereby. Notwithstanding the foregoing,
    each Party hereto reserves the right to make any disclosure if
    such Party, in its reasonable discretion, deems such disclosure
    required by Law. In that event, such Party shall provide to the
    other Party the text of such disclosure sufficiently in advance
    to enable the other Party to have a reasonable opportunity to
    comment thereon.

 

    7.3  Mutual Disclosure.  Each Party
    hereto agrees to promptly furnish to each other Party hereto its
    public disclosures and filings not precluded from disclosure by
    Law including but not limited to call reports,
    Form 8-K,
    Form 10-Q
    and
    Form 10-K
    filings, Y-3 applications, reports on
    Form Y-6,
    quarterly or special reports to shareholders, Tax returns,
    Form S-8
    registration statements and similar documents.

 

    7.4  Access to Properties and
    Records.  Each Party hereto shall afford the
    officers and authorized representatives of the other Party full
    access to the Assets, books and records of such Party in order
    that such other Parties may have full opportunity to make such
    investigation as they shall desire of the affairs of such Party
    and shall furnish to such Parties such additional financial and
    operating data and other information as to its businesses and

    

    A-23

 

    Assets as shall be from time to time reasonably requested. All
    such information that may be obtained by any such Party will be
    held in confidence by such party, will not be disclosed by such
    Party or any of its representatives except in accordance with
    this Agreement, and will not be used by such Party for any
    purpose other than the accomplishment of the Merger as provided
    herein.

 

    7.5  Notice of Adverse Changes.  Each
    Party agrees to give written notice promptly to the other Party
    upon becoming aware of the occurrence or impending occurrence of
    any event or circumstance relating to it or any of its
    Subsidiaries which (i) is reasonably likely to have,
    individually or in the aggregate, a Material Adverse Effect on
    it or (ii) would cause or constitute a material breach of
    any of its representations, warranties, or covenants contained
    herein, and to use its reasonable efforts to prevent or promptly
    to remedy the same.

 

    ARTICLE 8

    

 

    Conditions
    to Obligations of all Parties
    

 

    The obligations of Buyer and Acquired Corporation to cause the
    transactions contemplated by this Agreement to be consummated
    shall be subject to the satisfaction, in the sole discretion of
    the Party relying upon such conditions, on or before the
    Effective Date of all the following conditions, except as such
    Parties may waive such conditions in writing:

 

    8.1  Approval by Shareholders.  At
    the Stockholders’ Meetings, this Agreement and the matters
    contemplated by this Agreement shall have been duly approved by
    the vote of the respective holders of not less than the
    requisite number of the issued and outstanding voting securities
    of Acquired Corporation and of Buyer as is required by
    applicable Law and Acquired Corporation’s articles of
    incorporation and bylaws and Buyer’s certificate of
    incorporation and bylaws.

 

    8.2  Regulatory Authority
    Approval.  (a) Orders, Consents and
    approvals, in form and substance reasonably satisfactory to
    Buyer and Acquired Corporation, shall have been entered by the
    Office of Thrift Supervision and other appropriate bank
    regulatory Agencies (i) granting the authority necessary
    for the consummation of the transactions contemplated by this
    Agreement; and (ii) satisfying all other requirements
    prescribed by Law. No Order, Consent or approval so obtained
    which is necessary to consummate the transactions as
    contemplated hereby shall be conditioned or restricted in a
    manner which in the reasonable good faith judgment of the Board
    of Directors of either Buyer or Acquired Corporation would so
    materially adversely impact the economic benefits of the
    transaction as contemplated by this Agreement so as to render
    inadvisable the consummation of the Merger.

 

    (b) Each Party shall have obtained any and all other
    Consents required for consummation of the Merger (other than
    those referred to in Section 8.2(a) of this Agreement) for
    the preventing of any Default under any Contract or Permit of
    such Party which, if not obtained or made, is reasonably likely
    to have, individually or in the aggregate, a Material Adverse
    Effect on such Party. No Consent obtained which is necessary to
    consummate the transactions contemplated hereby shall be
    conditioned or restricted in a manner which in the reasonable
    judgment of the Board of Directors of Buyer would so materially
    adversely impact the economic or business benefits of the
    transactions contemplated by this Agreement so as to render
    inadvisable the consummation of the Merger.

 

    8.3  Litigation.  There shall be no
    pending or threatened Litigation in any court or any pending or
    threatened proceeding by any governmental commission, board or
    Agency, with a view to seeking or in which it is sought to
    restrain or prohibit consummation of the transactions
    contemplated by this Agreement or in which it is sought to
    obtain divestiture, rescission or damages in connection with the
    transactions contemplated by this Agreement and no investigation
    by any Agency shall be pending or threatened which might result
    in any such suit, action or other proceeding.

 

    8.4  Registration Statement.  The
    Registration Statement shall be effective under the
    1933 Act and no stop order suspending the effectiveness of
    the Registration Statement shall be in effect; no proceedings
    for such purpose, or under the proxy rules of the SEC or any
    bank regulatory authority pursuant to the 1934 Act, with
    respect to the transactions contemplated hereby, shall be
    pending before or threatened by the SEC or any bank regulatory
    authority; and all approvals or authorizations for the offer of
    Buyer’s Common Stock shall have been received or

    

    A-24

 

    obtained pursuant to any applicable state securities Laws, and
    no stop order or proceeding with respect to the transactions
    contemplated hereby shall be pending or threatened under any
    such state law.

 

    8.5  Tax Opinion.  Buyer and Acquired
    Corporation shall have received an opinion of Balch &
    Bingham LLP, in form and substance reasonably satisfactory to
    Acquired Corporation and Buyer to the effect that (i) the
    Merger will constitute a “reorganization” within the
    meaning of Section 368 of the Code; (ii) no gain or
    loss will be recognized by Buyer or Acquired Corporation;
    (iii) no gain or loss will be recognized by the
    shareholders of Acquired Corporation who receive shares of
    Buyer’s Common Stock except to the extent of any taxable
    “boot” received by such persons from Buyer, and except
    to the extent of any dividends received from Acquired
    Corporation prior to the Effective Date; (iv) the basis of
    the Buyer’s Common Stock received in the Merger will be
    equal to the sum of the basis of the shares of Acquired
    Corporation common stock exchanged in the Merger and the amount
    of gain, if any, which was recognized by the exchanging Acquired
    Corporation shareholder, including any portion treated as a
    dividend, less the value of taxable boot, if any, received by
    such shareholder in the Merger; (v) the holding period of
    the Buyer’s Common Stock will include the holding period of
    the shares of Acquired Corporation common stock exchanged
    therefor if such shares of Acquired Corporation common stock
    were capital assets in the hands of the exchanging Acquired
    Corporation shareholder; and (vi) cash received by an
    Acquired Corporation shareholder in lieu of a fractional share
    interest of Buyer’s Common Stock will be treated as having
    been received as a distribution in full payment in exchange for
    the fractional share interest of Buyer’s Common Stock which
    he or she would otherwise be entitled to receive and will
    qualify as capital gain or loss (assuming the Acquired
    Corporation Stock was a capital asset in his or her hands as of
    the Effective Date).

 

    ARTICLE 9

    

 

    Conditions
    to Obligations of Acquired Corporation
    

 

    The obligations of Acquired Corporation to cause the
    transactions contemplated by this Agreement to be consummated
    shall be subject to the satisfaction on or before the Effective
    Date of all the following conditions except as Acquired
    Corporation may waive such conditions in writing:

 

    9.1  Representations, Warranties and
    Covenants.  Notwithstanding any investigation made
    by or on behalf of Acquired Corporation, all representations and
    warranties of Buyer contained in this Agreement shall be true in
    all material respects on and as of the Effective Date as if such
    representations and warranties were made on and as of such
    Effective Date (and without regard to any qualifications in such
    representations and warranties relating to materiality), and
    Buyer shall have performed in all material respects all
    agreements and covenants required by this Agreement to be
    performed by it on or prior to the Effective Date.

 

    9.2  Adverse Changes.  There shall
    have been no changes after September 30, 2005 in the
    results of operations, Assets, Liabilities, financial condition
    or affairs of Buyer which in their total effect constitute a
    Material Adverse Effect, nor shall there have been any material
    changes in the Laws governing the business of Buyer which would
    impair the rights of Acquired Corporation or its shareholders
    pursuant to this Agreement.

 

    9.3  Closing Certificate.  In
    addition to any other deliveries required to be delivered
    hereunder, Acquired Corporation shall have received a
    certificate from the President or a Vice President and from the
    Secretary or Assistant Secretary of Buyer dated as of the
    Closing certifying that:

 

    (a) the Board of Directors of Buyer has duly adopted
    resolutions approving the substantive terms of this Agreement
    and authorizing the consummation of the transactions
    contemplated by this Agreement and such resolutions have not
    been amended or modified and remain in full force and effect;

 

    (b) each person executing this Agreement on behalf of Buyer
    is an officer of Buyer holding the office or offices specified
    therein and the signature of each person set forth on such
    certificate is his or her genuine signature;

 

    (c) the certificate of incorporation and bylaws of Buyer
    referenced in Section 4.4 hereof remain in full force and
    effect;

    

    A-25

 

    (d) such persons have no knowledge of a basis for any
    material claim, in any court or before any Agency or arbitration
    or otherwise against, by or affecting Buyer or the business,
    prospects, condition (financial or otherwise), or Assets of
    Buyer which would prevent the performance of this Agreement or
    the transactions contemplated by this Agreement or declare the
    same unlawful or cause the rescission thereof;

 

    (e) to such persons’ knowledge, the Buyer Proxy
    Statement delivered to Buyer’s shareholders, or any
    amendments or revisions thereto so delivered, as of the date
    thereof, did not contain or incorporate by reference any untrue
    statement of a material fact or omit to state any material fact
    required to be stated therein or necessary to make the
    statements therein not misleading in light of the circumstances
    under which they were made (it being understood that such
    persons need not express a statement as to information
    concerning or provided by Acquired Corporation for inclusion in
    such Buyer Proxy Statement); and

 

    (f) the conditions set forth in Article 8 and this
    Article 9 have been satisfied insofar as they relate to
    Buyer.

 

    9.4  Opinion of Counsel.  Acquired
    Corporation shall have received an opinion of Balch &
    Bingham LLP, counsel to Buyer, dated as of the Closing, in form
    and substance as set forth in Exhibit 9.4 hereto. Such
    counsel may rely on representations and certificates of officers
    and directors of Buyer and certificates of public officials. The
    opinion of counsel to Buyer shall also be subject to reasonable
    and customary qualifications. In addition, Acquired Corporation
    shall have received an opinion of Haskell Slaughter
    Young & Rediker, LLC, counsel to Buyer, dated as of the
    Closing, to the effect that, assuming the Registration Statement
    has become effective, Rule 145(d)(1) under the
    1933 Act shall be applicable to any person who was an
    “affiliate” (as defined in the 1933 Act) of
    Acquired Corporation prior to the Merger and who will not be an
    “affiliate” of Buyer following the Merger, with the
    result that the holding periods of Rule 145(d)(2) and
    145(d)(3) shall not be applicable to such persons.

 

    9.5  Fairness Opinion.  Acquired
    Corporation shall have received prior to the mailing of the
    Acquired Corporation Proxy Statement, but no earlier than five
    (5) business days prior to the mailing, from Alex
    Sheshunoff & Co. a letter (acceptable in form to
    Acquired Corporation) reconfirming as of such date its written
    opinion as of or prior to the date of this Agreement, that the
    Exchange Ratio is fair to the stockholders of Acquired
    Corporation from a financial point of view, and such opinion
    shall not have been withdrawn prior to or as of the Effective
    Date.

 

    9.6  NASDAQ Listing.  The shares of
    Buyer’s Common Stock to be issued under this Agreement
    shall have been approved for listing on the NASDAQ.

 

    9.7  Support for Legal
    Opinion.  There shall have been furnished to
    counsel for Acquired Corporation delivering the opinion under
    Section 10.4 certified copies of such corporate records of
    Buyer and copies of such other documents as such counsel may
    reasonably have requested for such purpose.

 

    9.8  Material Events.  There shall
    have been no determination by the board of directors of Acquired
    Corporation that the transactions contemplated by this Agreement
    have become impractical because of any state of war, declaration
    of a banking moratorium in the United States or a general
    suspension of trading on the NASDAQ or any other exchange on
    which Buyer’s Common Stock may be traded.

 

    9.9  Other Matters.  On the Effective
    Date, (a) Superior Bank will have a CAMELS rating of at
    least “2” and a Compliance Rating and Community
    Reinvestment Act rating of at least “Satisfactory; and
    (b) the results of any regulatory exam of Buyer and
    Superior Bank will be reasonably satisfactory to Acquired
    Corporation.

 

    ARTICLE 10
    

 

    Conditions to Obligations of Buyer

 

    The obligations of Buyer to cause the transactions contemplated
    by this Agreement to be consummated shall be subject to the
    satisfaction on or before the Effective Date of all of the
    following conditions except as Buyer may waive such conditions
    in writing:

 

    10.1  Representations, Warranties and
    Covenants.  Notwithstanding any investigation made
    by or on behalf of Buyer, all representations and warranties of
    Acquired Corporation contained in this Agreement shall be true
    in all material respects on and as of the Effective Date as if
    such representations and warranties were made on and as of

    

    A-26

 

    the Effective Date (and without regard to any qualifications in
    such representations and warranties relating to materiality),
    and Acquired Corporation shall have performed in all material
    respects all agreements and covenants required by this Agreement
    to be performed by it on or prior to the Effective Date.

 

    10.2  Adverse Changes.  There shall
    have been no changes after the date of the most recent balance
    sheet provided under Section 5.4(a)(i) hereof in the
    results of operations (as compared with the corresponding period
    of the prior fiscal year), Assets, Liabilities, financial
    condition, or affairs of Acquired Corporation which constitute a
    Material Adverse Effect, nor shall there have been any material
    changes in the laws governing the business of Acquired
    Corporation which would impair Buyer’s rights pursuant to
    this Agreement.

 

    10.3  Closing Certificate.  In
    addition to any other deliveries required to be delivered
    hereunder, Buyer shall have received a certificate from Acquired
    Corporation executed by the President or Vice President and from
    the Secretary or Assistant Secretary of Acquired Corporation
    dated as of the Closing certifying that:

 

    (a) the Board of Directors of Acquired Corporation has duly
    adopted resolutions approving the substantive terms of this
    Agreement and authorizing the consummation of the transactions
    contemplated by this Agreement and such resolutions have not
    been amended or modified and remain in full force and effect;

 

    (b) the shareholders of Acquired Corporation have duly
    adopted resolutions approving the substantive terms of the
    Merger and the transactions contemplated thereby and such
    resolutions have not been amended or modified and remain in full
    force and effect;

 

    (c) each person executing this Agreement on behalf of
    Acquired Corporation is an officer of Acquired Corporation
    holding the office or offices specified therein and the
    signature of each person set forth on such certificate is his or
    her genuine signature;

 

    (d) the articles of incorporation and bylaws of Acquired
    Corporation and the Bank referenced in Section 5.8 hereof
    remain in full force and effect and have not been amended or
    modified since the date hereof;

 

    (e) to such persons’ knowledge, the Acquired
    Corporation Proxy Statement delivered to Acquired
    Corporation’s shareholders, or any amendments or revisions
    thereto so delivered, as of the date thereof, did not contain or
    incorporate by reference any untrue statement of a material fact
    or omit to state any material fact required to be stated therein
    or necessary to make the statements therein not misleading in
    light of the circumstances under which they were made (it being
    understood that such persons need not express a statement as to
    information concerning or provided by Buyer for inclusion in
    such Acquired Corporation Proxy Statement); and

 

    (f) the conditions set forth in Article 8 and this
    Article 10 have been satisfied insofar as they relate to
    Acquired Corporation.

 

    10.4  Opinion of Counsel.  Buyer
    shall have received an opinion of Coleman, Talley, Newbern,
    Kurrie, Preston & Holland, LLP, counsel to Acquired
    Corporation, dated as of the Closing, as set forth in
    Exhibit 10.4 hereto. Such counsel may rely on
    representations and certificates of officers and directors of
    Acquired Corporation and certificates of public officials.

 

    The opinion of counsel to Acquired Corporation shall also be
    subject to reasonable and customary qualifications.

 

    10.5  Controlling
    Shareholders.  Acquired Corporation shall use its
    reasonable best efforts to cause each director, executive
    officer and other person who is an “affiliate” of
    Acquired Corporation (for purposes of Rule 145 under the
    1933 Act) to deliver to Buyer as soon as practicable after
    the date hereof, but in no event after the date of the Acquired
    Corporation’s Stockholders Meeting, a written agreement (in
    form and substance as set forth on Exhibit 10.5 hereto),
    providing that such person will not sell, pledge, transfer or
    otherwise dispose of the shares of the shares of Buyer’s
    Common Stock to be received by such “affiliate” upon
    the Effective Date, except in compliance with the applicable
    provisions of the 1933 Act, SEC Rule 145(d) and other
    rules and regulations of the SEC as may be applicable. Acquired
    Corporation acknowledges that the certificates of Buyer’s
    Common Stock issued to such “affiliates” of Acquired
    Corporation will bear an appropriate legend reflecting the
    agreement described above.

    

    A-27

 

    10.6  Support for Legal
    Opinions.  There shall have been furnished to
    counsel for Buyer delivering the opinions under 8.5 and
    Section 10.4 certified copies of such corporate records of
    Acquired Corporation and copies of such other documents as such
    counsel may reasonably have requested for such purpose.

 

    10.7  [Reserved]

 

    10.8  Material Events.  There shall
    have been no determination by the board of directors of Buyer
    that the transactions contemplated by this Agreement have become
    impractical because of any state of war, declaration of a
    banking moratorium in the United States or general suspension of
    trading on the NASDAQ or any exchange on which Buyer’s
    Common Stock may be traded.

 

    10.9  Fairness Opinion.  Buyer shall
    have received prior to the mailing, but no earlier than five
    (5) business days prior to the mailing, of the Buyer Proxy
    Statement from Sandler O’Neill & Partners, L.P. a
    letter (acceptable in form to Buyer) setting forth its opinion
    (or reconfirming any earlier opinion thereof) that the Exchange
    Ratio is fair to the stockholders of Buyer from a financial
    point of view, and such opinion shall not have been withdrawn
    prior to or as of the Effective Date.

 

    10.10  Other Matters.  On the
    Effective Date, (a) the Bank will have a CAMELS rating of
    at least “2” and a Compliance Rating and Community
    Reinvestment Act rating of at least “Satisfactory;
    (b) the results of any regulatory exam of any Acquired
    Corporation Company will be reasonably satisfactory to Buyer;
    (c) each of the executive officers and directors of each
    Acquired Corporation Company will have delivered a letter to
    Buyer to the effect that such person is not aware of any claims
    he or she might have against Buyer other than routine
    compensation, benefits and the like as an employee, or ordinary
    rights as a customer; (d) Acquired Corporation shall have
    taken all actions deemed reasonably necessary by Buyer in order
    to effect the cancellation and other transactions with respect
    to the Acquired Corporation Options contemplated by
    Section 3.1(b) hereof; and (e) Acquired Corporation
    shall have complied, to the reasonable satisfaction of Buyer,
    with respect to any applicable reporting obligations to any
    Agency prior to the Effective Date, or shall have obtained all
    necessary Consents from any applicable Agency (or waivers, if
    applicable) in such respect.

 

    ARTICLE 11
    

 

    Termination of Representations and Warranties

 

    All representations and warranties provided in Articles 4
    and 5 of this Agreement or in any closing certificate pursuant
    to Articles 9 and 10 shall terminate and be extinguished at
    and shall not survive the Effective Date. All covenants,
    agreements and undertakings required by this Agreement to be
    performed by any Party hereto following the Effective Date shall
    survive such Effective Date and be binding upon such Party. If
    the Merger is not consummated, all representations, warranties,
    obligations, covenants, or agreements hereunder or in any
    certificate delivered hereunder relating to the transaction
    which is not consummated shall be deemed to be terminated or
    extinguished, except that the last sentence of Section 7.4,
    and Sections 7.2, 6.2(c)(ii), 13.3, Article 11,
    Article 12, Article 15 and any applicable definitions
    of Article 14, shall survive. Items disclosed in the
    Schedules to a Disclosure Supplement attached hereto (including
    any exhibits to such Schedules) are incorporated into this
    Agreement and form a part of the representations, warranties,
    covenants or agreements to which they relate.

 

    ARTICLE 12
    

 

    Notices

 

    All notices or other communications which are required or
    permitted hereunder shall be in writing and sufficient if
    delivered by hand, by facsimile transmission, by registered or
    certified mail, postage pre-paid, or by courier or overnight
    carrier, to the persons at the addresses set forth below (or at
    such other address as may be provided hereunder), and shall be
    deemed to have been delivered as of the date so received:

 

    (a) If to Acquired Corporation to: Gerald K. Archibald,
    Chairman and Chief Executive Officer, Kensington Bankshares,
    Inc., 13246 North Dale Mabry Highway, Tampa, FL 33264, facsimile
    813-961-0444, with copies to Stanley H. Pollock, Coleman,
    Talley, Newbern, Kurrie, Preston & Holland, LLP, 7000
    Central Parkway, N.E.,

    

    A-28

 

    Suite 1150, Atlanta, GA
    30328-4579,
    facsimile, 770-698-9729, or as may otherwise be specified by
    Acquired Corporation in writing to Buyer.

 

    (b) If to Buyer, to Marvin Scott, President, 17 North
    20th Street, Birmingham, AL 35203, facsimile 205-327-3611,
    with copies to Stephen A. Yoder, Balch & Bingham LLP,
    1901 Sixth Avenue North, Birmingham, AL 35203, facsimile
    205-488-5645, or as may otherwise be specified in writing by
    Buyer to Acquired Corporation.

 

    ARTICLE 13
    

 

    Amendment or Termination

 

    13.1  Amendment.  This Agreement may
    be amended by the mutual consent of Buyer and Acquired
    Corporation before or after approval of the transactions
    contemplated herein by the shareholders of Acquired Corporation.

 

    13.2  Termination.  This Agreement
    may be terminated at any time prior to or on the Effective Date
    whether before or after action thereon by the shareholders of
    Acquired Corporation, as follows:

 

    (a) by the mutual consent of the respective boards of
    directors of Acquired Corporation and Buyer;

 

    (b) by the board of directors of either Party (provided
    that the terminating Party is not then in material breach of any
    representation, warranty, covenant, or other agreement contained
    in this Agreement) in the event of a material breach by the
    other Party of any representation or warranty contained in this
    Agreement (determined without regard to any qualifications
    regarding materiality which may be contained in such
    representation or warranty) which cannot be or has not been
    cured within thirty (30) days after the giving of written
    notice to the breaching Party of such breach and which breach
    would provide the non-breaching Party the ability, to refuse to
    consummate the Merger under the standard set forth in
    Section 10.1 of this Agreement in the case of Buyer and
    Section 9.1 of this Agreement in the case of Acquired
    Corporation;

 

    (c) by the board of directors of either Party (provided
    that the terminating Party is not then in material breach of any
    representation, warranty, covenant, or other agreement contained
    in this Agreement) in the event of a material breach by the
    other Party of any covenant or agreement contained in this
    Agreement which cannot be or has not been cured within thirty
    (30) days after the giving of written notice to the
    breaching Party of such breach, or if any of the conditions to
    the obligations of such Party contained in this Agreement in
    Article 9 as to Acquired Corporation or Article 10 as
    to Buyer shall not have been satisfied in full;

 

    (d) by the board of directors of either Buyer or Acquired
    Corporation if all transactions contemplated by this Agreement
    shall not have been consummated on or prior to December 31,
    2006, if the failure to consummate the transactions provided for
    in this Agreement on or before such date is not caused by any
    breach of this Agreement by the Party electing to terminate
    pursuant to this Section 13.2(d);

 

    (e) by Acquired Corporation, if its board of directors so
    determines by a majority vote of the members of its entire
    board, at any time during the five-business-day period
    commencing on the Determination Date, such termination to be
    effective on the 30th day following such Determination
    Date, if on the Determination Date, the Determination Date Buyer
    Common Stock Value is less than $10.50; subject, however, to the
    next three sentences. If Acquired Corporation elects to exercise
    its termination right pursuant to this Section 13.2(e), it
    shall give prompt written notice thereof to Buyer. During the
    five-business-day period commencing with its receipt of such
    notice, Buyer shall have the option of paying additional
    consideration for the Merger in the form of Buyer’s Common
    Stock, cash or a combination of Buyer’s Common Stock and
    cash, so that the aggregate consideration paid by Buyer per
    share of Acquired Corporation Stock for the Merger shall be
    valued at $10.50. If within such five-business-day period, Buyer
    delivers written notice to Acquired Corporation that it intends
    to proceed with the Merger by paying such additional
    consideration, as contemplated by the previous sentence, then no
    termination shall have occurred pursuant to this
    Section 13.2(e) and this Agreement shall remain in full
    force and effect in accordance with its terms (except that the
    consideration for the Merger shall have been so modified

    

    A-29

 

    For purposes of Section 13.2(e), the following terms shall
    have the meanings assigned below:

 

    “Determination Date” shall mean the first date on
    which all Orders, Consents and approvals (and waivers, if
    applicable) necessary for consummation of the Merger and the
    transactions contemplated by this Agreement have been received
    as provided in Section 8.2(a) hereof.

 

    “Determination Date Buyer Common Stock Value” shall
    mean the average of the daily closing sales prices of a share of
    Buyer’s Common Stock as reported on the NASDAQ for the ten
    consecutive trading days immediately preceding the Determination
    Date.

 

    In the event that prior to the Determination Date, Buyer’s
    Common Stock shall be changed into a different number of shares
    or a different class of shares by reason of any recapitalization
    or reclassification, stock dividend, stock split, or reverse
    stock split of Buyer’s Common Stock between the date of
    this Agreement and the Determination Date, the prices for the
    Buyer’s Common Stock shall be appropriately adjusted for
    purposes of applying this Section 13.2(e) with respect to
    the change in the per share market value of Buyer’s Common
    Stock as a result thereof.

 

    This Section 13.2(e) shall not apply to the consideration
    received by holders of Acquired Corporation Options provided in
    Section 3.1(b) hereof.

 

    (f) by Acquired Corporation pursuant to
    Section 6.2(c)(ii) of this Agreement.

 

    (g) by Buyer, if the number of shares as to which
    stockholders of Acquired Corporation have exercised dissenters
    rights of appraisal under Section 3.6 hereof exceeds 10% of
    the outstanding shares of Acquired Corporation.

 

    13.3  Damages.  In the event of
    termination pursuant to Section 13.2, this Agreement shall
    become void and have no effect, except as provided in
    Article 11, and except that Acquired Corporation and Buyer
    shall be liable for damages for any willful breach of warranty,
    representation, covenant or other agreement contained in this
    Agreement.

 

    ARTICLE 14
    

 

    Definitions

 

    (a) The following terms, which are capitalized in this
    Agreement, shall have the meanings set forth below for the
    purpose of this Agreement:

 

			
	
    Acquired Corporation		
    Kensington Bankshares, Inc., a Florida corporation.
	 
	
    Acquired Corporation Company		
    Acquired Corporation, the Bank, any Subsidiary of Acquired
    Corporation or the Bank, or any person or entity acquired as a
    Subsidiary of Acquired Corporation or the Bank in the future and
    owned by Acquired Corporation or the Bank at the Effective Date.
	 
	
    Acquired Corporation Options		
    Options respecting the issuance of a maximum of
    328,750 shares of Acquired Corporation common stock
    pursuant to Acquired Corporation’s stock option plans.
	 
	
    Acquired Corporation Stock		
    Shares of common stock, par value $.01 per share, of
    Acquired Corporation.
	 
	
    Acquired Corporation Proxy Statement		
    The proxy statement used by Acquired Corporation to solicit the
    approval of its stockholders of the transactions contemplated by
    this Agreement, which shall include the prospectus of Buyer
    relating to the issuance of the Buyer’s Common Stock to the
    shareholders of Acquired Corporation.
	 
	
    Acquisition Proposal		
    Any tender offer or exchange offer or any proposal for a merger,
    acquisition of all or substantially all of the stock or assets
    of, or other 

    

    A-30

 

			
	
		
    business combination involving Acquired Corporation or any other
    Acquired Corporation Company or the acquisition of a substantial
    equity interest in, or a substantial portion of the assets of,
    Acquired Corporation or any other Acquired Corporation Company.
	 
	
    Agencies		
    Shall mean, collectively, the Federal Trade Commission, the
    United States Department of Justice, the Board of the Governors
    of the Federal Reserve System, the Federal Deposit Insurance
    Corporation, the Office of Thrift Supervision, all state
    regulatory agencies having jurisdiction over the Parties and
    their respective Subsidiaries, HUD, the VA, the FHA, the GNMA,
    the FNMA, the FHLMC, the NASDAQ, and the SEC.
	 
	
    Agreement		
    This Agreement and Plan of Merger (including the exhibits
    hereto, which are hereby incorporated by reference herein and
    made a part hereof, and may be referred to in this Agreement an
    any other related instrument or document without being attached
    hereto) and the Schedules (including the exhibits thereto) to a
    Disclosure Supplement delivered pursuant hereto and incorporated
    herein by reference.
	 
	
    Assets		
    With respect to any Person shall mean all of the assets,
    properties, businesses and rights of such Person of every kind,
    nature, character and description, whether real, personal or
    mixed, tangible or intangible, accrued or contingent, or
    otherwise relating to or utilized in such Person’s
    business, directly or indirectly, in whole or in part, whether
    or not carried on the books and records of such Person, and
    whether or not owned in the name of such Person or any Affiliate
    of such Person and wherever located.
	 
	
    Bank		
    First Kensington Bank, a Florida state bank.
	 
	
    Buyer		
    The Banc Corporation, a Delaware corporation with its principal
    offices in Birmingham, Alabama.
	 
	
    Buyer Proxy Statement		
    The proxy statement used by Buyer to solicit the approval of its
    stockholders of the transactions contemplated by this Agreement,
    which shall include the prospectus of Buyer relating to the
    issuance of the Buyer’s Common Stock to the shareholders of
    Acquired Corporation.
	 
	
    Buyer’s Common Stock		
    Buyer’s Common Stock authorized and defined in the
    certificate of incorporation of Buyer, as amended.
	 
	
    Closing		
    The submission of the certificates of officers, legal opinions
    and other actions required to be taken in order to consummate
    the Merger in accordance with this Agreement.
	 
	
    Code		
    The Internal Revenue Code of 1986, as amended, and the
    regulations thereunder.
	 
	
    Consent		
    Any consent, approval, authorization, clearance, exemption,
    waiver, or similar affirmation by any Person pursuant to any
    Contract, Law, Order, or Permit.
	 
	
    Contract		
    Any written or oral agreement, arrangement, authorization,
    commitment, contract, indenture, instrument, lease, obligation,
    plan, practice, restriction, understanding or undertaking of any
    kind or character, or 

    

    A-31

 

			
	
		
    other document to which any Person is a party or that is binding
    on any Person or its capital stock, Assets or business.
	 
	
    Default		
    (i) Any breach or violation of or default under any
    Contract, Order or Permit, (ii) any occurrence of any event
    that with the passage of time or the giving of notice or both
    would constitute a breach or violation of or default under any
    Contract, Order or Permit, or (iii) any occurrence of any
    event that with or without the passage of time or the giving of
    notice would give rise to a right to terminate or revoke, change
    the current terms of, or renegotiate, or to accelerate,
    increase, or impose any Liability under, any Contract Order or
    Permit.
	 
	
    DGCL		
    The Delaware General Corporation Law, as amended.
	 
	
    Disclosure Supplement		
    The disclosure supplement delivered by Acquired Corporation to
    Buyer or by Buyer to Acquired Corporation, as the case may be,
    concurrently with the execution and delivery of this Agreement.
    Each such Disclosure Supplement is hereby incorporated by
    reference herein and made a part hereof, and may be referred to
    in this Agreement and any other related instrument or document
    without being attached hereto.
	 
	
    Effective Date		
    The date and time at which the Merger becomes effective as
    defined in Section 2.7 hereof.
	 
	
    Environmental Laws		
    The laws, regulations and governmental requirements referred to
    in Section 5.23 hereof.
	 
	
    ERISA		
    The Employee Retirement Income Security Act of 1974, as amended.
	 
	
    Exchange Ratio		
    1.60 to 1.0, as provided in Section 3.1(a).
	 
	
    FBCA		
    The Florida Business Corporation Act, as amended.
	 
	
    FDIC Act		
    The Federal Deposit Insurance Act, as amended.
	 
	
    GAAP		
    Generally accepted accounting principles applicable to banks and
    bank holding companies consistently applied during the periods
    involved.
	 
	
    Knowledge		
    The actual knowledge of the Chief Executive Officer, Chief
    Financial Officer, Chief Accounting Officer, Chief Credit
    Officer or any Senior or Executive Vice President of Buyer, in
    the case of Knowledge of Buyer, or of such executive officers
    with comparable responsibility of Acquired Corporation and the
    Bank, in the case of knowledge of Acquired Corporation.
	 
	
    Law		
    Any code, law, ordinance, regulation, reporting or licensing
    requirement, rule, or statute applicable to a Person or its
    Assets, Liabilities or business, including, without limitation,
    those promulgated, interpreted or enforced by any Agency.
	 
	
    Liability		
    Any direct or indirect, primary or secondary, liability,
    indebtedness, obligation, penalty, cost or expense (including,
    without limitation, costs of investigation, collection and
    defense), deficiency, guaranty or endorsement of or by any
    Person (other than endorsements of notes, bills, checks, and
    drafts presented for collection or deposit in the ordinary
    course of business) of any type, whether accrued, absolute or 

    

    A-32

 

			
	
		
    contingent, liquidated or unliquidated, matured or unmatured, or
    otherwise.
	 
	
    Lien		
    Any conditional sale agreement, defect of title, easement,
    encroachment, encumbrance, hypothecation, infringement, lien,
    mortgage, pledge, reservation, restriction, security interest,
    title retention or other security arrangement, or any adverse
    right or interest, charge, or claim of any nature whatsoever of,
    on, or with respect to any property or property interest, other
    than (i) Liens for current property Taxes not yet due and
    payable, (ii) for depository institution Subsidiaries of a
    Party, pledges to secure deposits and other Liens incurred in
    the ordinary course of the banking business, (iii) Liens in
    the form of easements and restrictive covenants on real property
    which do not materially adversely affect the use of such
    property by the current owner thereof, and (iv) Liens which
    are not reasonably likely to have, individually or in the
    aggregate, a Material Adverse Effect on a Party.
	 
	
    Litigation		
    Any action, arbitration, complaint, criminal prosecution,
    governmental or other examination or investigation, hearing,
    inquiry, administrative or other proceeding relating to or
    affecting a Party, its business, its Assets (including Contracts
    related to it), or the transactions contemplated by this
    Agreement relating to or affecting a Party, its business, its
    Assets (including Contracts related to it), or the transactions
    contemplated by this Agreement; provided that such term shall
    not include regular, periodic examinations of depository
    institutions and their affiliates by any Agency).
	 
	
    Loan Property		
    Any property owned by the Party in question or by any of its
    Subsidiaries or in which such Party or Subsidiary holds a
    security interest, and, where required by the context, includes
    the owner or operator of such property, but only with respect to
    such property.
	 
	
    Loss		
    Any and all direct or indirect payments, obligations,
    recoveries, deficiencies, fines, penalties, interest,
    assessments, losses, diminution in the value of Assets, damages,
    punitive, exemplary or consequential damages (including, but not
    limited to, lost income and profits and interruptions of
    business), liabilities, costs, expenses (including without
    limitation, reasonable attorneys’ fees and expenses, and
    consultant’s fees and other costs of defense or
    investigation), and interest on any amount payable to a third
    party as a result of the foregoing.
	 
	
    material		
    For purposes of this Agreement shall be determined in light of
    the facts and circumstances of the matter in question; provided
    that any specific monetary amount stated in this Agreement shall
    determine materiality in that instance.
	 
	
    Material Adverse Effect		
    On a Party shall mean an event, change or occurrence which has a
    material adverse impact on (i) the financial position,
    Assets, business, or results of operations of such Party and its
    Subsidiaries, taken as a whole, or (ii) the ability of such
    Party to perform its obligations under this Agreement or to
    consummate the Merger or the other transactions contemplated by
    this Agreement, provided that “material adverse
    effect” shall not be deemed to include the impact of
    (w) changes in banking and similar laws of general
    applicability or interpretations thereof by courts or
    governmental authorities, (x) changes in generally accepted
    accounting principles or regulatory accounting principles 

    

    A-33

 

			
	
		
    generally applicable to banks and their holding companies,
    (y) actions and omissions of a Party (or any of its
    Subsidiaries) taken with the prior written consent of the other
    Party in contemplation of the transactions contemplated hereby,
    and (z) the Merger and compliance with the provisions of
    this Agreement on the operating performance of the Parties.
	 
	
    Merger		
    The merger of Acquired Corporation with Buyer as contemplated in
    this Agreement.
	 
	
    NASDAQ		
    National Association of Securities Dealers Automated Quotation
    System.
	 
	
    Order		
    Any administrative decision or award, decree, injunction,
    judgment, order, quasi-judicial decision or award, ruling, or
    writ of any federal, state, local or foreign or other court,
    arbitrator, mediator, tribunal, administrative agency or Agency.
	 
	
    Party		
    Acquired Corporation or Buyer, and “Parties” shall
    mean both Acquired Corporation and Buyer.
	 
	
    Permit		
    Any federal, state, local, and foreign governmental approval,
    authorization, certificate, easement filing, franchise, license,
    notice, permit, or right to which any Person is a party or that
    is or may be binding upon or inure to the benefit of any Person
    or its securities, Assets or business.
	 
	
    Person		
    A natural person or any legal, commercial or governmental
    entity, such as, but not limited to, a corporation, general
    partnership, joint venture, limited partnership, limited
    liability company, trust, business association, group acting in
    concert, or any person acting in a representative capacity.
	 
	
    Registration Statement		
    The registration statement on
    Form S-4,
    or such other appropriate form, to be filed with the SEC by the
    Buyer, and which has been agreed to by Acquired Corporation, to
    register the shares of Buyer’s Common Stock offered to
    stockholders of the Acquired Corporation pursuant to this
    Agreement, including the Buyer Proxy Statement and the Acquired
    Corporation Proxy Statement.
	 
	
    Resulting Corporation		
    Buyer, as the surviving corporation resulting from the Merger.
	 
	
    SEC		
    United States Securities and Exchange Commission.
	 
	
    SEC Reports		
    The forms, reports and documents filed by Buyer as described in
    Section 4.14.
	 
	
    Stockholders’ Meetings		
    The special meetings of stockholders of Acquired Corporation and
    of Buyer called to approve the transactions contemplated by this
    Agreement.
	 
	
    Subsidiaries		
    All those corporations, banks, associations, or other entities
    of which the entity in question owns or controls 5% or more of
    the outstanding equity securities either directly or through an
    unbroken chain of entities as to each of which 5% or more of the
    outstanding equity securities is owned directly or indirectly by
    its parent; provided, however, there shall not be included any
    such entity acquired through foreclosure or any such entity the
    equity securities of which are owned or controlled in a
    fiduciary capacity.

    

    A-34

 

 

			
	
    Tax or Taxes		
    Any federal, state, county, local, foreign, and other taxes,
    assessments, charges, fares, and impositions, including interest
    and penalties thereon or with respect thereto.
	 
	
    1933 Act		
    The Securities Act of 1933, as amended, and the regulations
    thereunder.
	 
	
    1934 Act		
    The Securities Exchange Act of 1934, as amended, and the
    regulations thereunder.

 

    ARTICLE 15

    

 

    Miscellaneous
    

 

    15.1  Expenses.  (a) Except as
    otherwise provided in this Section 15.1, each of the
    Parties shall bear and pay all direct costs and expenses
    incurred by it or on its behalf in connection with the
    transactions contemplated hereunder, including filing,
    registration and application fees, printing fees, and fees and
    expenses of its own financial or other consultants, investment
    bankers, accountants, and counsel (the “Transaction
    Expenses”), except that Buyer shall bear and pay the filing
    fees payable in connection with the Registration Statement and
    the Buyer Proxy Statement and printing costs incurred in
    connection with the printing of the Registration Statement and
    the Buyer Proxy Statement. After the Effective Date, Buyer
    agrees to pay when due the amount of any unpaid Transaction
    Expenses incurred by Acquired Corporation by or on its behalf
    prior to the Effective Date to the extent disclosed to Buyer on
    or before the Effective Date; provided that Acquired Corporation
    shall use its best efforts to identify and pay all of its
    Transaction Expenses on or prior to the Effective Date and
    provided further that in no event shall Buyer pay more than
    $10,000 in Acquired Corporation’s Transaction Expenses
    after the Effective Date.

 

    (b) Nothing contained in this Section 15.1 shall
    constitute or shall be deemed to constitute liquidated damages
    for the willful breach by a Party of the terms of this Agreement
    or otherwise limit the rights of the nonbreaching Party.

 

    15.2  Benefit and Assignment.  Except
    as expressly contemplated hereby, neither this Agreement nor any
    of the rights, interests, or obligations hereunder shall be
    assigned by any Party hereto (whether by operation of Law or
    otherwise) without the prior written consent of the other Party.
    Subject to the preceding sentence, this Agreement will be
    binding upon, inure to the benefit of, and be enforceable by,
    the Parties and their respective successors and assigns.

 

    15.3  Governing Law.  Except to the
    extent the Laws of the State of Florida apply to the Merger,
    this Agreement shall be governed by, and construed in accordance
    with the Laws of the State of Delaware without regard to any
    conflict of Laws.

 

    15.4  Counterparts.  This Agreement
    may be executed in counterparts, each of which shall be deemed
    to constitute an original. Each such counterpart shall become
    effective when one counterpart has been signed by each Party
    thereto.

 

    15.5  Headings.  The headings of the
    various articles and sections of this Agreement are for
    convenience of reference only and shall not be deemed a part of
    this Agreement or considered in construing the provisions
    thereof.

 

    15.6  Severability.  Any term or
    provision of this Agreement that is prohibited or unenforceable
    in any jurisdiction shall, as to such jurisdiction, be
    ineffective to the extent of such prohibition or
    unenforceability without invalidating the remaining terms and
    provisions thereof or affecting the validity or enforceability
    of such provision in any other jurisdiction, and if any term or
    provision of this Agreement is held by any court of competent
    jurisdiction to be void, voidable, invalid or unenforceable in
    any given circumstance or situation, then all other terms and
    provisions, being severable, shall remain in full force and
    effect in such circumstance or situation and the term or
    provision shall remain valid and in effect in any other
    circumstances or situation.

 

    15.7  Construction.  Use of the
    masculine pronoun herein shall be deemed to refer to the
    feminine and neuter genders and the use of singular references
    shall be deemed to include the plural and vice versa, as

    

    A-35

 

    appropriate. No inference in favor of or against any Party shall
    be drawn from the fact that such Party or such Party’s
    counsel has drafted any portion of this Agreement.

 

    15.8  Confidentiality; Return of
    Information.  Between the date of this Agreement
    and the Effective Date, Buyer and Acquired Company will maintain
    in confidence, and will cause the directors, officers,
    employees, agents and advisors of Buyer and Acquired Corporation
    Companies to maintain in confidence any written, oral or other
    information obtained in confidence from another Person or from
    an Acquired Company in connection with this Agreement or the
    Merger, including any such information obtained prior to the
    date of this Agreement, unless (a) such information is
    already known to such party or to others not bound by a duty of
    confidentiality or such information becomes publicly available
    through no fault of such Party, (b) the use of such
    information is necessary or appropriate in making any filing or
    obtaining any consent or approval required for the Merger to be
    consummated, or (c) the furnishing or use of such
    information is required by legal proceedings.

 

    In the event of termination of this Agreement prior to the
    Effective Date, each Party shall return to the other, without
    retaining copies thereof, all confidential or non-public
    documents, work papers and other materials obtained from the
    other Party in connection with the transactions contemplated in
    this Agreement and shall keep such information confidential, not
    disclose such information to any other person or entity, and not
    use such information in connection with its business.

 

    15.9  Equitable Remedies.  The
    parties hereto agree that, in the event of a breach of this
    Agreement by either Party, the other Party may be without an
    adequate remedy at law owing to the unique nature of the
    contemplated transactions. In recognition thereof, in addition
    to (and not in lieu of) any remedies at law that may be
    available to the nonbreaching Party, the non-breaching Party
    shall be entitled to obtain equitable relief, including the
    remedies of specific performance and injunction, in the event of
    a breach of this Agreement by the other Party, and no attempt on
    the part of the non-breaching Party to obtain such equitable
    relief shall be deemed to constitute an election of remedies by
    the non-breaching Party that would preclude the non-breaching
    Party from obtaining any remedies at law to which it would
    otherwise be entitled.

 

    15.10  Attorneys’ Fees.  If any
    Party hereto shall bring an action at law or in equity to
    enforce its rights under this Agreement (including an action
    based upon a misrepresentation or the breach of any warranty,
    covenant, agreement or obligation contained herein), the
    prevailing Party in such action shall be entitled to recover
    from the other Party its costs and expenses incurred in
    connection with such action (including fees, disbursements and
    expenses of attorneys and costs of investigation).

 

    15.11  No Waiver.  No failure, delay
    or omission of or by any Party in exercising any right, power or
    remedy upon any breach or Default of any other Party shall
    impair any such rights, powers or remedies of the Party not in
    breach or Default, nor shall it be construed to be a wavier of
    any such right, power or remedy, or an acquiescence in any
    similar breach or Default; nor shall any waiver of any single
    breach or Default be deemed a waiver of any other breach or
    default theretofore or thereafter occurring. Any waiver, permit,
    consent or approval of any kind or character on the part of any
    Party of any provisions of this Agreement must be in writing and
    be executed by the Parties to this Agreement and shall be
    effective only to the extent specifically set forth in such
    writing.

 

    15.12  Remedies Cumulative.  All
    remedies provided in this Agreement, by law or otherwise, shall
    be cumulative and not alternative.

 

    15.13  Entire Contract.  This
    Agreement and the documents and instruments referred to herein
    constitute the entire contract between the parties to this
    Agreement and supersede all other understandings with respect to
    the subject matter of this Agreement.

    

    A-36

 

    IN WITNESS WHEREOF, Acquired Corporation and Buyer have caused
    this Agreement to be signed by their respective duly authorized
    officers as of the date first above written.

 

    KENSINGTON BANKSHARES, INC

 

			
	 	    BY: 
	
    /s/  Gerald
    K. Archibald

    ITS: Chairman

 

    THE BANC CORPORATION

 

			
	 	    BY: 
	
    /s/  C.
    Stanley Bailey

    ITS: Chief Executive Officer

    

    A-37

 

    Exhibit A

 

    Form of
    Lock-Up and Non-Competition Agreement

 

    THIS LOCK-UP AND NON-COMPETITION AGREEMENT is made and
    entered into as of this the 6th day of March, 2006, by and
    between THE BANC CORPORATION (“Buyer”), a
    Delaware corporation, and the undersigned officer or director
    (the “Kensington Official”) of Kensington Bankshares,
    Inc., a Florida corporation (“Acquired Corporation”),
    or of First Kensington Bank, a Florida bank (the
    “Bank”).

 

    WITNESSETH

 

    WHEREAS, Buyer and Acquired Corporation have entered into an
    Agreement and Plan of Merger (the “Plan of Merger”),
    pursuant to which the parties thereto agree that Acquired
    Corporation will merge (the “Merger”) with and into
    Buyer, and Buyer shall be the surviving entity of the Merger;

 

    NOW, THEREFORE, in consideration of the expenses that Buyer will
    incur in connection with the transactions contemplated by the
    Plan of Merger, and in order to preserve the value of the
    franchise to be purchased by Buyer and induce Buyer to proceed
    to incur such expenses, the Kensington Official makes the
    following agreements in favor of Buyer:

 

		
	
    1.  
	
    Undertakings
    of Kensington Official

 

    1.1  The Kensington Official agrees and
    undertakes to vote or cause to be voted in favor of the approval
    of the Plan of Merger all shares of Acquired Corporation Stock
    (as defined in the Plan of Merger), as to which he has voting
    power (other than shares held in a fiduciary capacity), which
    amount of shares is shown on the schedule attached hereto and
    made a part hereof, at any meeting or meetings (including any
    and all adjournments thereof) held on or before
    December 31, 2006. The parties hereto acknowledge and agree
    that nothing in this Section or this Agreement is intended to
    dictate or require that the Kensington Official vote as a
    director in any manner.

 

    1.2  The Kensington Official further agrees
    that he will not transfer any of the shares of Acquired
    Corporation Stock over which he has dispositive power, which
    number of shares is shown on the schedule attached hereto and
    made a part hereof, until the vote upon the Plan of Merger by
    Acquired Corporation’s stockholders has been taken or until
    the Plan of Merger has been terminated pursuant to the
    provisions thereof, except (i) for transfers by operation
    of law, and (ii) for transfers in connection with which
    Buyer has consented to the transfer and the transferee shall
    agree in writing with Buyer to be bound by this Agreement as
    fully as the undersigned.

 

    1.3  This Section 1 shall terminate at
    such time as the Plan of Merger terminates or on the Effective
    Date.

 

		
	
    2.  
	
    Agreement
    Not to Compete

 

    The Kensington Official agrees that for a period of two years
    following the Effective Date (as defined in the Plan of Merger),
    the Kensington Official will not serve as an officer or
    director, or acquire 5% or more of the outstanding equity
    securities, of any bank or savings and loan association or bank
    holding company, or federal or state chartered bank, savings
    bank, thrift, homestead association, savings association,
    savings and loan association or cooperative bank that has its
    principal business location within the Florida counties of
    Hillsborough, Hernando or Pasco.

 

		
	
    3.  
	
    Miscellaneous

 

    3.1  The provisions of this Agreement shall be
    enforceable through an action for damages at law or a suit for
    specific performance or other appropriate extraordinary relief,
    the Kensington Official acknowledging that remedies at law for
    breach or default might be or become inadequate.

 

    3.2  The Kensington Official acknowledges and
    agrees that this Agreement is executed in connection with the
    sale of all of the business of Acquired Corporation. The
    Kensington Official further acknowledges and represents

    

    A-38

 

    that the provisions of this Agreement will not work a hardship
    on him and will not prevent him from engaging in his occupation.

 

    3.3  To the extent permitted under applicable
    law, any provision of this Agreement may be amended or modified
    at any time, either before or after its approval by an agreement
    in writing among the parties hereto.

 

    3.4  This Agreement may be executed in
    counterparts, each of which shall be deemed to constitute an
    original. Each such counterpart shall become effective when one
    counterpart has been signed by each party hereto.

 

    3.5  This Agreement shall be governed by, and
    interpreted in accordance with, the laws of the State of Florida
    applicable to agreements made and entirely to be performed
    within such State, except as federal law may be applicable.

 

    3.6  The Kensington Official may not assign any
    of his rights or obligations under this Agreement to any other
    person.

 

    3.7  This Agreement supersedes any and all oral
    or written agreements and understandings heretofore made between
    the parties hereto relating to the subject matter hereof and
    contains the entire agreement of the parties relating to the
    subject matter hereof; provided, however, that notwithstanding
    the foregoing, this Agreement does not modify or amend any stock
    option agreement, employment agreement, option or similar
    employee benefit agreement between any Acquired Corporation
    Company and the Kensington Official. The terms and conditions of
    this Agreement shall inure to the benefit of and be binding upon
    the parties hereto and their respective successors, heirs and
    legatees.

 

    IN WITNESS WHEREOF, the parties have signed this
    Agreement effective as of the date first set forth above.

 

    THE BANC CORPORATION

 

			
	 	    By: 
	
        

    Title:

 

    KENSINGTON OFFICIAL

 

 

    SCHEDULE TO
    LOCK-UP AND NON-COMPETITION AGREEMENT

 

    Number of shares of common stock,
    $      par value, of Kensington
    Bankshares, Inc. owned by the Kensington
    Official:           shares.

    

    A-39

 

    Exhibit 9.4

 

    [Letterhead of Balch & Bingham LLP]

 

               ,
    2006

 

    Kensington Bankshares, Inc.

    13246 North Dale Mabry Highway

    Tampa, FL 33264

 

    Re: Merger of Kensington Bankshares with and into The Banc
    Corporation

 

    Gentlemen:

 

    We are counsel to The Banc Corporation (“The Banc
    Corporation”), a corporation organized and existing under
    the laws of the State of Delaware, and have represented The Banc
    Corporation in connection with the execution and delivery of the
    Agreement and Plan of Merger, dated as of March 6, 2006
    (the “Agreement”), by and between Kensington
    Bankshares, Inc. (“Kensington”) and The Banc
    Corporation.

 

    This opinion is delivered pursuant to Section 9.4 of the
    Agreement. Unless otherwise defined herein, capitalized terms
    used in this opinion shall have the meanings set forth in the
    Agreement.

 

    In rendering this opinion, we have examined the corporate books
    and records of The Banc Corporation and made such other
    investigations as we have deemed necessary. We have relied upon
    certificates of public officials and officers of The Banc
    Corporation as to certain questions of fact.

 

    Based upon and subject to the foregoing, we are of the opinion
    that:

 

    1. The Banc Corporation is a corporation duly organized,
    validly existing and in good standing under the laws of the
    State of Delaware with full corporate power and authority to
    carry on the business in which it is engaged, as described in
    the Registration Statement, and to own the properties owned by
    it.

 

    2. The execution and delivery of the Agreement and
    compliance with its terms do not and will not violate or
    contravene any provision of the Certificate of Incorporation or
    Bylaws of The Banc Corporation or, to our knowledge, result in
    any conflict with, breach of, or default or acceleration under
    any mortgage, agreement, lease, indenture, or other instrument,
    order, judgment or decree to which The Banc Corporation is a
    party or by which The Banc Corporation is bound.

 

    3. In accordance with the Bylaws of The Banc Corporation
    and pursuant to resolutions duly adopted by its Board of
    Directors and stockholders, the Agreement has been duly adopted
    and approved by the Board of Directors of The Banc Corporation
    and by the stockholders of The Banc Corporation.

 

    4. The Agreement has been duly and validly executed and
    delivered by The Banc Corporation. Assuming valid authorization,
    execution and delivery by Kensington, the Agreement is a binding
    obligation of The Banc Corporation, enforceable against The Banc
    Corporation in accordance with its terms.

 

    5. The authorized capital stock of The Banc Corporation
    consists of shares of Buyer’s Common Stock, of which
    22,221,256 shares were issued and 19,980,261 shares
    were outstanding as of December 31, 2005. The shares of
    Buyer’s Common Stock that are issued and outstanding were
    not issued in violation of any statutory preemptive rights of
    shareholders, were duly issued and are fully paid and
    nonassessable under the DGCL. The shares of Buyer’s Common
    Stock to be issued to the stockholders of Kensington as
    contemplated by the Agreement are duly authorized, have been
    registered under the 1933 Act and when properly issued and
    delivered following consummation of the Merger will be validly
    issued, fully paid and nonassessable.

 

    This opinion is delivered solely for reliance by Kensington.

 

    Sincerely,

    

    A-40

 

    Exhibit 10.4

 

    [Letterhead of Coleman, Talley, Newbern, Kurrie,
    Preston & Holland, LLP]

 

              ,
    2006

 

    The Banc Corporation, Inc.

    17 North 20th Street

    Birmingham, Alabama 35203

 

    Re:  Merger of Kensington Bankshares, Inc. with and
    into The Banc Corporation

 

    Gentlemen:

 

    We are counsel Kensington Bankshares, Inc.
    (“Kensington”), a corporation organized and existing
    under the laws of the State of Florida, and have represented
    Kensington in connection with the execution and delivery of the
    Agreement and Plan of Merger, dated as of March 6, 2006
    (the “Agreement”), by and between Kensington and The
    Banc Corporation, Inc. (“The Banc Corporation”).

 

    This opinion is delivered pursuant to Section 10.4 of the
    Agreement. Unless otherwise defined herein, capitalized terms
    used in this opinion shall have the meanings set forth in the
    Agreement.

 

    In rendering this opinion, we have examined the corporate books
    and records of Kensington, and made such other investigations as
    we have deemed necessary. We have relied upon certificates of
    public officials and officers of Kensington as to certain
    questions of fact.

 

    Based upon and subject to the foregoing, we are of the opinion
    that:

 

    1. Kensington is a corporation duly organized, validly
    existing and in good standing under the laws of the State of
    Florida with full corporate power and authority to carry on the
    business in which it is engaged as described in the Registration
    Statement, and to own the properties owned by it. The Bank is a
    Florida state banking corporation duly organized, validly
    existing and in good standing under the laws of the State of
    Florida with full corporate power and authority to carry on the
    business in which it is engaged as described in the Registration
    Statement and to own the properties owned by it.

 

    2. The execution and delivery of the Agreement and
    compliance with its terms do not and will not violate or
    contravene any provision of the Articles of Incorporation or
    Bylaws of Kensington or, to our knowledge, result in any
    conflict with, breach of, or default or acceleration under any
    mortgage, agreement, lease, indenture, or other instrument,
    order, judgment or decree to which Kensington is a party or by
    which Kensington is bound.

 

    3. In accordance with the Bylaws of Kensington and pursuant
    to resolutions duly adopted by its Board of Directors and
    stockholders, the Agreement has been duly adopted and approved
    by the Board of Directors and stockholders of Kensington.

 

    4. The Agreement has been duly and validly executed and
    delivered by Kensington. Assuming valid authorization, execution
    and delivery by The Banc Corporation, the Agreement is a binding
    obligation of Kensington, enforceable against Kensington in
    accordance with its terms.

 

    5. The authorized capital stock of Kensington consists of
    10,000,000 shares of Kensington Common Stock, of which
    3,710,500 shares were issued and outstanding as of
    December 31, 2005, The shares of Acquired Corporation Stock
    that are issued and outstanding were not issued in violation of
    any statutory preemptive rights of stockholders, were duly
    issued and are fully paid and nonassessable under the FBCA. To
    our knowledge, there are no options, subscriptions, warrants,
    calls, rights or commitments obligating Kensington to issue any
    equity securities or acquire any of its equity securities.

 

    This opinion is delivered solely for reliance by The Banc
    Corporation.

 

    Yours very truly,

 

    COLEMAN, TALLEY, NEWBERN, KURRIE,

    PRESTON & HOLLAND, LLP

 

			
	 	    By: 
	
    

    

    A-41

 

    Exhibit 10.5

 

    Form of Rule 145 Agreement

 

           [       ]

 

    The Banc Corporation

    17 North 20th Street

    Birmingham, Alabama 35203

 

    Ladies and Gentlemen:

 

    The undersigned has been advised that as of the date of this
    letter the undersigned may be deemed to be an
    “affiliate” of Kensington Bankshares, Inc., a Florida
    corporation (“Kensington”), as the term
    “affiliate” is defined for purposes of
    paragraphs (c) and (d) of Rule 145 of the
    rules and regulations (the “Rules and Regulations”) of
    the Securities and Exchange Commission (the
    “Commission”) under the Securities Act of 1933, as
    amended (the “1933 Act”). Pursuant to the terms
    of the Agreement and Plan of Merger dated as of March 6,
    2006 (the “Merger Agreement”), executed by Kensington
    and The Banc Corporation, a Delaware corporation (“The Banc
    Corporation”), Kensington will be merged with and into The
    Banc Corporation (the “Merger”).

 

    As a result of the Merger, the undersigned will receive shares
    of common stock, par value $.0001 per share, of The Banc
    Corporation (such shares received by the undersigned as a result
    of the Merger are hereinafter referred to as the “The Banc
    Corporation Securities”) in exchange for any shares of
    common stock of Kensington owned by the undersigned.

 

    Any capitalized terms used herein shall have the meanings given
    to them in the Merger Agreement unless otherwise defined herein.

 

    The undersigned represents, warrants and covenants to The Banc
    Corporation that:

 

    (a) The undersigned shall not make any sale, transfer or
    other disposition of the The Banc Corporation Securities in
    violation of the Act or the Rules and Regulations. In connection
    therewith, the undersigned will rely on that opinion of Haskell
    Slaughter Young & Rediker, LLC, counsel to Buyer, to be
    delivered pursuant to Section 9.4 of the Merger Agreement,
    to the effect that, assuming the Registration Statement has
    become effective, Rule 145(d)(1) under the 1933 Act
    shall be applicable to any person who was an
    “affiliate” (as defined in the 1933 Act) of
    Acquired Corporation prior to the Merger and who will not be an
    “affiliate” of Buyer following the Merger, with the
    result that the holding periods of Rules 145(d)(2) and
    145(d)(3) shall not be applicable to the undersigned.

 

    (b) The undersigned has carefully read this letter and the
    Merger Agreement and discussed the requirements of such
    documents and other applicable limitations upon the
    undersigned’s ability to sell, transfer or otherwise
    dispose of The Banc Corporation Securities, to the extent the
    undersigned has considered necessary, with the
    undersigned’s counsel or counsel for Kensington.

 

    (c) The undersigned has been advised that the issuance of
    The Banc Corporation Securities to the undersigned pursuant to
    the Merger has been registered with the Commission under the
    1933 Act on a Registration Statement on
    Form S-4.
    However, the undersigned has also been advised that the
    undersigned may not sell, transfer or otherwise dispose of The
    Banc Corporation Securities issued to the undersigned in the
    Merger unless (i) such sale, transfer or other disposition
    has been registered under the 1933 Act, (ii) such
    sale, transfer or other disposition is made in conformity with
    the volume and other limitations of Rule 145 promulgated by
    the Commission under the Act (as hereafter amended,
    “Rule 145”), or (iii) The Banc Corporation
    has received an opinion of counsel reasonably acceptable to The
    Banc Corporation (or other evidence reasonably acceptable to The
    Banc Corporation) that such sale, transfer or other disposition
    is otherwise exempt from registration under the Act.

 

    (d) The undersigned understands that The Banc Corporation
    is under no obligation to register the sale, transfer or other
    disposition of the The Banc Corporation Securities by the
    undersigned or on the undersigned’s

    

    A-42

 

    behalf under the 1933 Act or to take any other action
    necessary in order to make compliance with an exemption from
    such registration available.

 

    (e) The undersigned also understands that stop transfer
    instructions will be given to The Banc Corporation’s
    transfer agent with respect to the The Banc Corporation
    Securities and that there will be placed on the certificates for
    the The Banc Corporation Securities issued to the undersigned,
    or any substitutions therefor, a legend stating in substance:

 

    “THE SHARES REPRESENTED BY THIS CERTIFICATE WERE
    ISSUED IN A TRANSACTION TO WHICH RULE 145 PROMULGATED UNDER
    THE SECURITIES ACT OF 1933 APPLIES. THE SHARES REPRESENTED
    BY THIS CERTIFICATE MAY ONLY BE TRANSFERRED IN ACCORDANCE WITH
    THE TERMS OF AN AGREEMENT DATED AS OF MARCH 6, 2006 BETWEEN
    THE REGISTERED HOLDER HEREOF AND THE BANC CORPORATION, A COPY OF
    WHICH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICES OF THE BANC
    CORPORATION.”

 

    (f) The undersigned also understands that unless the
    transfer by the undersigned of the undersigned’s The Banc
    Corporation’s Securities has been registered under the
    1933 Act or is a sale made in conformity with the
    provisions of Rule 145, The Banc Corporation reserves the
    right to put the following legend on the certificates issued to
    the undersigned’s transferee:

 

    “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT
    BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND WERE
    ACQUIRED FROM A PERSON WHO RECEIVED SUCH SHARES IN A
    TRANSACTION TO WHICH RULE 145 PROMULGATED UNDER THE
    SECURITIES ACT OF 1933 APPLIES. THE SHARES HAVE BEEN
    ACQUIRED BY THE HOLDER NOT WITH A VIEW TO, OR FOR RESALE IN
    CONNECTION WITH, ANY DISTRIBUTION THEREOF WITHIN THE MEANING OF
    THE SECURITIES ACT OF 1933 AND MAY NOT BE SOLD, PLEDGED OR
    OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH AN
    EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
    SECURITIES ACT OF 1933.”

 

    (g) It is understood and agreed that the legends set forth
    in paragraphs (e) and (f) above shall be removed
    by delivery of substitute certificates without such legend and
    the related stop transfer instructions will be lifted forthwith,
    at such time as (i) the undersigned is not an affiliate of
    The Banc Corporation and a period of at least one year (as
    determined in accordance with paragraph (d) of
    Rule 144 under the 1933 Act) has elapsed since the date of
    consummation of the Merger, and The Banc Corporation meets the
    requirements of paragraph (c) of Rule 144 under
    the 1933 Act, (ii) the undersigned is not, and has not
    been for at least three months, an affiliate of The Banc
    Corporation, and a period of at least two years (as determined
    in accordance with paragraph (d) of Rule 144
    under the 1933 Act) has elapsed since the date of
    consummation of the Merger or (iii) The Banc Corporation
    shall have received an opinion of counsel or other evidence, in
    each case reasonably acceptable to The Banc Corporation, that
    such legend and stop transfer instructions are not required for
    purposes of the Act.

    

    A-43

 

    Execution of this letter should not be considered an admission
    on the part of the undersigned that the undersigned is an
    “affiliate” of Kensington as described in the first
    paragraph of this letter, or as a waiver of any rights the
    undersigned may have to object to any claim that the undersigned
    is such an affiliate on or after the date of this letter.

 

    Very truly yours,

 

    [signature]

 

    [typed or printed name]

 

    Accepted this      day
    of          ,
    by

 

    THE BANC CORPORATION

 

    By: _
    _

 

    Name: _
    _

 

    Title: _
    _

    

    A-44

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