Document:

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                                                                   EXHIBIT 10.2

                          TAX DISAFFILIATION AGREEMENT

         TAX DISAFFILIATION AGREEMENT dated as of ____________, 2003, by and
between F.N.B. CORPORATION ("Parent"), a Florida corporation, and FIRST
NATIONAL BANKSHARES OF FLORIDA, INC. ("SpinCo"), a Florida corporation.

                                    RECITALS

         WHEREAS, Parent is the common parent of an affiliated group of
corporations within the meaning of Section 1504(a) of the Internal Revenue Code
of 1986, as amended (the "Code"), and currently files consolidated federal
income tax returns;

         WHEREAS, as reflected in the Agreement and Plan of Distribution (the
"Distribution Agreement") dated __________, 2003 by and between Parent and
SpinCo, Parent has formed SpinCo as a direct subsidiary;

         WHEREAS, Parent will contribute to SpinCo certain assets held by
Parent and SpinCo will assume certain liabilities of Parent;

         WHEREAS, following such contributions and assumptions and pursuant to
the Distribution Agreement, Parent shall distribute to its shareholders all of
the outstanding shares of stock of SpinCo on a pro rata basis (the
"Distribution");

         WHEREAS, Parent and SpinCo intend that the Distribution will qualify
as a reorganization described in Sections 355 and 368 of the Code and will not
result in the recognition of any taxable gain or income to Parent, SpinCo or
any of their respective shareholders;

         WHEREAS, from the day after the date of the Distribution forward,
SpinCo and its subsidiaries shall cease to be members of the Parent affiliated
group for all applicable tax purposes; and

         WHEREAS, following the Distribution, the affiliated group of which
SpinCo is the common parent will file consolidated Tax Returns;

         WHEREAS Parent and SpinCo desire on behalf of themselves, their
affiliates and their successors to set forth their rights and obligations with
respect to taxes due for periods before and after the Distribution.

         NOW, THEREFORE, in consideration of the transactions recited above and
for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto do hereby agree as follows:

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                                   ARTICLE I
                                  DEFINITIONS

         For the purposes of this Agreement:

         1.01     "45 Percent Interest" shall have the meaning ascribed to the
term "50-percent or greater interest" in Section 355(d)(4) of the Code,
substituting therein "45" each place "50" appears.

         1.02     "45 Percent Threshold" shall have the meaning set forth in
Section 2.04(e)(iv).

         1.03     "Affiliate" shall mean, when used with respect to any
specified Person, a Person that directly or indirectly controls, is controlled
by, or is under common control with such specified Person; provided, however,
that for purposes of this Agreement, a Person shall be deemed to be an
Affiliate only of the Group of which such Person is a member following the
Distribution. As used herein, "control" means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities or
other interests, by contract or otherwise. Each of the Affiliates listed on
Exhibit A, attached hereto, shall be considered an Affiliate of Parent. Each of
the Affiliates listed on Exhibit B, attached hereto, shall be considered an
Affiliate of SpinCo. Any contrary provision of this Agreement notwithstanding,
neither Parent nor any Parent Affiliate shall be deemed to be an Affiliate of
SpinCo, and neither SpinCo nor any SpinCo Affiliate shall be deemed to be an
Affiliate of Parent.

         1.04     "After Tax Basis" shall mean, with respect to any payment to
be received, that the amount of such payment is increased to the extent
necessary so that, after deduction of all taxes (assuming for this purpose that
the recipient of such payment is subject to taxation at the highest federal and
applicable state and local marginal rates applicable to widely held
corporations for the year in which such income is taxable) required to be paid
by the recipient (less any tax savings to be realized, utilizing the same tax
rate assumptions as set forth in the immediately preceding parenthetical
phrase, by the recipient as a result of the payment of such amounts) with
respect to the receipt of such amounts, such increased payment (as so reduced)
is equal to the payment otherwise required to be made.

         1.05     "Agreement" shall mean this Tax Disaffiliation Agreement, as
the same may be amended from time to time.

         1.06     "Applicable Federal Rate" shall have the meaning set forth in
Section 1274(d) of the Code for a short term rate, compounded quarterly.

         1.07     "Assets" shall mean the assets of Parent, SpinCo, their
respective Affiliates, or a "predecessor or successor" (within the meaning
Section 355(e)(4)(D) of the Code) of such corporations or their Affiliates; it
being understood that any transfer, sale or assignment of the assets of Parent,
SpinCo, their Affiliates, or a predecessor or a successor in the ordinary
course of business shall not be taken into account for purposes of Section
2.04(e) of this Agreement.

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         1.08     "Book Value" shall mean, with respect to Parent or SpinCo,
the shareholders' equity of such party, determined in accordance with generally
acceptable accounting principles in the United States, as of the close of
business on the Distribution Date.

         1.09     "Claim" shall have the meaning set forth in Section 5.03(a)
of this Agreement.

         1.10     "Code" shall have the meaning set forth in the recitals.

         1.11     "Common Consolidated Tax Return" shall mean any consolidated,
combined or unitary Tax Return that includes at least one member of the Parent
Group and at least one member of the SpinCo Group.

         1.12     "Controlling Party" shall have the meaning set forth in
Section 5.01 of this Agreement.

         1.13     "Corporate Transactions" shall have the meaning set forth in
the Distribution Agreement.

         1.14     "Distribution" shall have the meaning set forth in the
recitals.

         1.15     "Distribution Agreement" shall have the meaning set forth in
the recitals.

         1.16     "Distribution Date" shall mean the Distribution Date
specified in the Distribution Agreement.

         1.17     "Distribution Related Gain" shall mean any gain recognized by
Parent, or Parent's or SpinCo's shareholders, by virtue of (i) either the
Distribution or the Internal Distribution failing to qualify as a distribution
described in Section 355(a)(1) of the Code, (ii) any stock or securities of
SpinCo failing to qualify as "qualified property" within the meaning of Section
355(c)(2)(B) and 361(c)(2)(B) of the Code, or (iii) the application of Section
355(d), (e) or (f) of the Code to the Distribution or the Internal
Distribution.

         1.18     "Final Determination" shall mean with respect to any issue
(a) a decision, judgment, decree or other order by any court of competent
jurisdiction, which decision, judgment, decree or other order has become final
and not subject to further appeal, (b) a binding closing agreement whether or
not entered into under Section 7121 of the Code or any other binding settlement
agreement (whether or not with the Internal Revenue Service), or (c) the
completion of the highest level of administrative proceedings if a judicial
contest is not or is no longer available.

         1.19     "First SpinCo Notification Letter" shall have the meaning set
forth in Section 2.03(c)(ii) of this Agreement.

         1.20     "Indemnitor" shall have the meaning set forth in Section 5.02
of this Agreement.

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         1.21     "Internal Distribution" shall mean the Corporate Transaction
consisting of the distribution by First National Bank of Pennsylvania
("FNB-PA") to Parent of all of the capital stock of the national banking
association to be formed by FNB-PA for the purpose of transferring to such
association all of the Florida operations of the businesses presently conducted
by First National Trust Company and its Affiliates.

         1.22     "IRS" shall have the meaning set forth in Section 2.04(d)(v)
of this Agreement.

         1.23     "Parent" shall have the meaning set forth in the preamble to
this Agreement.

         1.24     "Parent Affiliate" or "Affiliate of Parent" shall include all
of the Affiliates listed on Exhibit A attached hereto. Neither SpinCo nor any
SpinCo Affiliate shall be considered an Affiliate of Parent.

         1.25     "Parent Group" shall mean, for any period, Parent and its
then Affiliates. Under no circumstances shall the Parent Group include any
member of the SpinCo Group.

         1.26     "Parent Notification Letter" shall have the meaning set forth
in Section 2.03(c)(ii) of this Agreement.

         1.27     "Parent Tainting Act" means any act or acts first occurring
after the Distribution Date of or involving any Person (other than SpinCo or
any Person that is an Affiliate of SpinCo immediately before or immediately
after such act or acts), or any omission or omissions of any Person (other than
SpinCo or any Person that is an Affiliate of SpinCo immediately before or
immediately after such omission or omissions), of a commercially reasonable act
or acts first available to it after the Distribution Date, if such act or
omission contributes to a Final Determination that the Distribution or the
Internal Distribution results in any Distribution Related Gain.

         1.28     "Period After Distribution" shall mean (i) any taxable year
or other taxable period beginning after the Distribution Date and, (ii) that
part of the taxable year or other taxable period that includes the Distribution
Date that begins on the day immediately after the Distribution Date.

         1.29     "Period Before Distribution" shall mean (i) any taxable year
or other taxable period that ends on, at the close of, or before the
Distribution Date and, (ii) that part of the taxable year or other taxable
period that includes the Distribution Date that ends on and includes the
Distribution Date.

         1.30     "Person" shall mean any individual, partnership, joint
venture, corporation, limited liability company, trust, unincorporated
organization, government or department or agency of a government.

         1.31     "Restructuring Taxes" means any taxes resulting from the
Corporate Transactions, the Internal Distribution or the Distribution,
including, but not limited to, any taxes imposed pursuant to or as a result of
Sections 311 or 1001 of the Code or the Treasury Regulations under Section 1502
of the Code (and any applicable similar federal, state, local or

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foreign taxes, together with related interest, penalties and additions to tax),
but excluding any taxes imposed as a result of a Final Determination that the
Distribution or the Internal Distribution results in any Distribution Related
Gain.

         1.32     "SpinCo" shall have the meaning set forth in the preamble to
this Agreement.

         1.33     "SpinCo Affiliate" or "Affiliate of SpinCo" shall include all
of the Affiliates listed on Exhibit B attached hereto. Neither Parent nor any
Parent Affiliate shall be considered an Affiliate of SpinCo.

         1.34     "SpinCo Group" shall mean, for any period, SpinCo and its
then Affiliates. Under no circumstances shall the SpinCo Group include any
member of the Parent Group.

         1.35     "SpinCo Tainting Act" means any act or acts first occurring
after the Distribution Date of or involving any Person (other than Parent or
any Person that is an Affiliate of Parent immediately before or immediately
after such act or acts), or any omission or omissions of any Person (other than
Parent or any Person that is an Affiliate of Parent immediately before or
immediately after such omission or omissions) of a commercially reasonable act
or acts first available to it after the Distribution Date, if such act or
omission contributes to a Final Determination that the Distribution or the
Internal Distribution results in any Distribution Related Gain.

         1.36     "SpinCo Tax Adjustment Amount" shall have the meaning set
forth in Section 2.03(c)(ii) of this Agreement.

         1.37     "Stock" shall mean common or preferred stock or any
instrument that might reasonably be treated as common or preferred stock for
federal income tax purposes. However, for purposes of Section 2.04(d) only, the
term Stock shall not include stock acquired by a person in connection with such
person's performance of services as an employee, director, or independent
contractor for Parent or SpinCo, or a Person related to such corporation under
Section 355(d)(7)(A) of the Code (and that is not excessive by reference to the
services performed) in a transaction in which Section 83 or Section 421(a) of
the Code applies. The preceding sentence shall not apply if the acquiring
person or a coordinated group (within the meaning of Treas. Reg.ss.
1.355-7T(h)(4)) of which such person is a member is a controlling shareholder
(within the meaning of Treas. Reg.ss. 1.355-7T(h)(3)) or a 10-percent
shareholder (within the meaning of Treas. Reg.ss. 1.355-7T(h)(9)) of the
acquired company (i.e., Parent or SpinCo) immediately after the acquisition.

         1.38     "Stock Options" shall mean call options, warrants,
convertible obligations, the conversion feature of convertible stock, put
options, redemption agreements (including rights to cause the redemption of
stock), any other instruments that provide for the right or possibility to
issue, redeem, or transfer stock (including an option on an option), or any
other similar interest treated as an option; provided, however, for purposes of
Section 2.04(d)(i) only, the term "Stock Options" only includes instruments
that provide for the right or possibility to issue, redeem or transfer stock
(including an option on an option), or any similar interest and does not
include: (i) an option that is part of a security arrangement in a typical
lending transaction (including a purchase money loan), if the arrangement is
subject to customary commercial conditions; (ii) an

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option to acquire stock in Parent or SpinCo with customary terms and conditions
provided to a person in connection with such person's performance of services
as an employee, director, or independent contractor for Parent or SpinCo or a
person related to it under Section 355(d)(7)(A) of the Code (and is not
excessive by reference to the services performed), provided that (a) the
transfer of stock pursuant to such option is described in Section 421(a) of the
Code or (b) the option is nontransferable within the meaning of Treas. Reg. ss.
1.83-3(d) and does not have a readily ascertainable fair market value as
defined in Treas. Reg. ss. 1.83-7(b); (iii) an option entered into between
shareholders of a corporation (or a shareholder and the corporation) that is
exercisable only upon death, disability or mental incompetency of the
shareholder, or, in the case of stock acquired in connection with the
performance of services for a corporation, or a person related to the
corporation under Section 355(d)(7)(A) (and that is not excessive by reference
to the services performed), the shareholder's separation from service; and (iv)
a bona fide right of first refusal regarding the corporation's stock with
customary terms, entered into between shareholders of a corporation (or between
the corporation and a shareholder).

         1.39     "tax" or "taxes" whether used in the form of a noun or
adjective, shall mean all forms of taxation, whenever created or imposed,
including, but not limited to, taxes on or measured by income, franchise, gross
receipts, sales, use, excise, payroll, personal property (tangible or
intangible), real property, ad-valorem, value-added, leasing, leasing use or
other taxes, levies, imposts, duties, charges or withholdings of any nature
whether imposed by a nation, locality, municipality, government, state,
federation, or other governmental body (a "Taxing Authority"). Whenever the
term "tax" or "taxes" is used (including, without limitation, in the context of
any duty to pay, or to reimburse another party or indemnify for taxes or
refunds or credits of taxes) it shall include penalties, fines, additions to
tax and interest thereon. The term "tax" or "taxes" does not include any
unclaimed or abandoned property remitted or required to be remitted to any
Taxing Authority under applicable law.

         1.40     "Tax Attribute" shall mean any net operating loss, capital
loss, credit or other tax attribute (other than the basis of property) relevant
to the calculation of a tax liability.

         1.41     "Taxing Authority" shall have the meaning set forth in
Section 1.39 of this Agreement.

         1.42     "Tax Item" shall mean any item of income, capital gain, net
operating loss, capital loss, deduction, credit or other tax attribute relevant
to the calculation of a tax liability.

         1.43     "Tax Return" shall mean any report, return, information
statement, questionnaire, evidence of tax payments, invoice or other document
received from, or required to be filed or that may be filed for any period
with, any Taxing Authority (whether domestic or foreign) in connection with any
tax or taxes (whether domestic or foreign).

         All capitalized terms used but not defined herein shall have the
meaning given to such terms in the Distribution Agreement.

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                                  ARTICLE II
             TAX RETURNS, TAX PAYMENTS AND TAX SHARING OBLIGATIONS

         2.01     Obligations to File Tax Returns.

         (a)      Parent shall prepare and shall timely file or cause to be
filed (i) all Tax Returns filed on a separate company basis for any member of
the Parent Group, (ii) all Tax Returns filed on a consolidated, combined or
unitary basis that include members of the Parent Group other than any Common
Consolidated Tax Return, and (ii) all Common Consolidated Tax Returns. SpinCo
shall reimburse Parent for SpinCo's proportionate share of the expenses
incurred by Parent in the preparation and filing of a Common Consolidated Tax
Return. For purposes of this Section 2.01(a), SpinCo's proportionate share of
the expenses with respect to a Common Consolidated Tax Return shall be
determined by multiplying the total expenses by a fraction, the numerator of
which equals the number of SpinCo Affiliates included in the return and the
denominator of which equals the total number of SpinCo Affiliates and Parent
Affiliates included in the return. Subject to Section 2.03(c) hereof, Parent
shall make full and timely payment of all taxes shown due on all Tax Returns
described in this Section 2.01(a).

         (b)      SpinCo shall prepare, at its own expense, and shall timely
file or cause to be filed (i) all Tax Returns with respect to the SpinCo Group
for any taxable year or other taxable period beginning after the Distribution
Date, (ii) all Tax Returns filed on a separate company basis, for any member of
the SpinCo Group, and (iii) all Tax Returns filed on a consolidated, combined
or unitary basis that include members of the SpinCo Group other than any Common
Consolidated Tax Return. SpinCo shall make full and timely payment of all taxes
shown due on all Tax Returns described in this Section 2.01(b).

         (c)      To the extent required or permitted by law or administrative
practice, in the case of any Common Consolidated Tax Return that includes the
Distribution Date, the taxable year of the SpinCo Group member shall be treated
as closing at the close of the Distribution Date.

         2.02     Obligation to Remit Taxes. SpinCo and Parent shall each timely
remit or cause to be remitted any taxes due in respect of any tax for which it
is required to file a Tax Return hereunder and shall be entitled to
reimbursement for such payments only to the extent provided in Section 2.03.

         2.03     Tax Sharing Obligations and Prior Agreements.

         (a)      SpinCo's Obligations. Other than liabilities dealt with
elsewhere in this Agreement, SpinCo shall be liable for and shall indemnify and
hold Parent and its Affiliates harmless on an After Tax Basis against any tax
liability for any member of the SpinCo Group, including the portion of any tax
liability resulting from the inclusion of any member of the SpinCo Group in a
Common Consolidated Tax Return as determined under Section 2.03(c). Except as
provided in Section 3.01 for refunds attributable to carrybacks, SpinCo shall
be entitled to any refund of or credit for taxes for which SpinCo

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is responsible under this Section 2.03(a) or with respect to which SpinCo is
required to file a Tax Return under Section 2.01 hereof.

         (b)      Parent's Obligations. Other than liabilities dealt with
elsewhere in this Agreement, Parent shall be liable for, and shall hold SpinCo
and its Affiliates harmless on an After Tax Basis against any tax liability of
any member of the Parent Group. Except as provided in Section 3.01 for refunds
attributable to carrybacks, Parent shall be entitled to any refund of or credit
for taxes for any periods for which Parent is responsible under this Section
2.03(b) or with respect to which Parent is required to file a Tax Return under
Section 2.01 hereof.

         (c)      SpinCo's Share of the Common Consolidated Tax Return
Liability. SpinCo's proportionate share of the tax liability with respect to a
Common Consolidated Tax Return, or with respect to any estimated tax payment
relating to any such Tax Return, shall be determined by multiplying the Common
Consolidated Tax Return tax liability by a fraction, the numerator of which
equals the separate return tax liability of the SpinCo Group and the
denominator of which equals the sum of the separate return tax liabilities of
the Parent Group and the SpinCo Group. For purposes of this determination, the
separate return tax liabilities of the Parent Group and the SpinCo Group are,
in each case, determined as if the Common Consolidated Tax Return included only
the Tax Items of the respective group, applying the principles of Section
1552(a)(2) of the Code and Treas. Reg.ss. 1.1552-1(a)(2). For purposes of this
Section 2.03(c) and Section 2.03(d), the tax liability of the Common
Consolidated Tax Return and the separate return tax liability of the SpinCo
Group and the Parent Group shall not include Restructuring Taxes or any tax
liability resulting from Distribution Related Gain.

         (d)      Payment for use of Tax Attributes. With respect to any Common
Consolidated Tax Return, (i) SpinCo shall reimburse Parent on an After Tax
Basis for the tax benefit attributable to the use of Tax Attributes of the
Parent Group to reduce SpinCo's proportionate share of the Common Consolidated
Tax Return tax liability to an amount that is less than the separate return tax
liability of the SpinCo Group, and (ii) Parent shall reimburse SpinCo on an
After Tax Basis for the tax benefit attributable to the use of Tax Attributes
of the SpinCo Group to reduce Parent's proportionate share of the Common
Consolidated Tax Return tax liability to an amount that is less than the
separate return tax liability of the Parent Group. For purposes of this Section
2.03(d), (i) the separate return tax liabilities of the Parent Group and the
SpinCo Group are, in each case, determined as if the Common Consolidated Tax
Return included only the Tax Items of the respective group, applying the
principles of Section 1552(a)(2) of the Code and Treas. Reg.ss. 1.1552-1(a)(2),
and (ii) Parent's proportionate share of the tax liability with respect to a
Common Consolidated Tax Return shall be determined by multiplying the Common
Consolidated Tax Return tax liability by a fraction, the numerator of which
equals the separate return tax liability of the Parent Group and the
denominator of which equals the sum of the separate return tax liabilities of
the Parent Group and the SpinCo Group.

         (e)      Notification and contest procedures. (i) Parent shall, in
good faith, calculate SpinCo's tax liability, if any, under Section 2.03(c),
and the amount of any

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payment obligation of Parent or SpinCo under Section 2.03(d), and notify SpinCo
of the amount of its liability, if any, under Section 2.03(a) and the amount of
any Parent or SpinCo payment obligation under Section 2.03(d) (the "Parent
Notification Letter"). Notification of a SpinCo tax liability and payment
obligation under this clause (i) of this Section 2.03(e) shall constitute a
request for payment, and, subject to clause (ii) of this Section 2.03(e),
SpinCo shall pay such amount, in immediately available funds, to Parent within
five days after receipt of such notice from Parent, provided that SpinCo shall
not be obligated to make such payment to Parent earlier than ten days prior to
the due date for the filing or making of the relevant Tax Return or estimated
tax payment. Subject to clause (ii) of this Section 2.03(e), Parent shall pay
the amount of its obligation under Section 2.03(d), in immediately available
funds, to SpinCo within ten days of the date of mailing (or other type of
delivery) by Parent of the Parent Notification Letter, provided that Parent
shall not be obligated to make such payment to SpinCo earlier than the due date
for the filing or making of the relevant Tax Return or estimated tax payment.

                  (ii)     If SpinCo determines in good faith that the amount
         of its tax liability under Section 2.03(a) or the amount of any
         payment obligation under section 2.03(d) differs from the
         corresponding amount in the Parent Notification Letter, SpinCo shall
         notify Parent of such difference (the "SpinCo Tax Adjustment Amount")
         (such determination, with calculations in reasonable detail, being
         referred to as the "First SpinCo Notification Letter," which SpinCo
         shall deliver to Parent no later than 30 days after the date of
         receipt of the Parent Notification Letter). If Parent determines in
         good faith that SpinCo's determination of the SpinCo Tax Adjustment
         Amount is incorrect, Parent shall notify SpinCo of such determination
         (the "Second Parent Notification Letter") within thirty days of
         receipt of the First SpinCo Notification Letter. If the dispute is not
         resolved by mutual accord within thirty days of SpinCo's receipt of
         the Second Parent Notification Letter, the dispute shall be resolved
         under the provisions of Article VIII. Until Parent and SpinCo reach
         agreement, or any dispute between them is resolved pursuant to Article
         VIII, as to the SpinCo Tax Adjustment Amount, the provisions of this
         Section 2.03(a) and 2.03(d) shall continue to apply and payments shall
         be made by the parties in the amounts set forth in the Parent
         Notification Letter in accordance with clause (i) of this Section
         2.03(e). Within ten days of reaching an agreement or resolution,
         Parent shall pay to SpinCo the agreed amount after taking into account
         any payments made under clause (i) of this Section 2.03(e), together
         with interest at a rate equal to the Applicable Federal Rate from the
         date of SpinCo's payment pursuant to this Section 2.03(e).

         (f)      Prior Agreements. Except as set forth in this Agreement and
in consideration of the mutual indemnities and other obligations of this
Agreement, any and all prior tax sharing agreements or practices between any
member of the Parent Group and any member of the SpinCo Group shall be
terminated as of the beginning of the day after the Distribution Date.

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         2.04     Restructuring Taxes and Expenses; Other Taxes Relating to the
Distribution.

         (a)      Restructuring Taxes and Expenses. Notwithstanding any other
provision of this Agreement to the contrary, Taxes and expenses attributable to
the transactions set forth in Exhibit C shall be borne in the manner set forth
in such Exhibit. Any remaining Restructuring Taxes (together with any
reasonable expenses, including, but not limited to, attorney's fees, incurred
in defending any audit or examination with respect to Restructuring Taxes) and
expenses incurred to effect the Distribution and the Internal Distribution
shall be borne by Parent and SpinCo pro rata based on their relative Book
Value.

         (b)      Distribution Related Gain. (i) In the event of a Final
Determination that the Distribution or the Internal Distribution results in any
Distribution Related Gain (other than a Final Determination that the
Distribution or the Internal Distribution results in any Distribution Related
Gain which determination would not have been made but for a Parent Tainting Act
or a SpinCo Tainting Act), the liability of Parent and SpinCo for any taxes or
liability arising from such Final Determination, including any liability to
shareholders arising from such Final Determination (together with any
reasonable expenses, including, but not limited to, attorney's fees incurred in
defending against any liability) shall be borne by Parent and SpinCo pro rata
based on their relative Book Value.

                  (ii)     In the event of a Final Determination that the
         Distribution or the Internal Distribution results in any Distribution
         Related Gain which determination would not have been made but for the
         occurrence of both a Parent Tainting Act and a SpinCo Tainting Act,
         any taxes or liability resulting from such Final Determination
         (together with any reasonable expenses, including, but not limited to,
         attorney's fees incurred in defending against any liability) shall be
         borne by Parent and SpinCo pro rata based on their relative Book
         Value.

                  (iii)    In the event of a Final Determination that the
         Distribution or the Internal Distribution results in any Distribution
         Related Gain which determination would not have been made but for the
         occurrence of either a Parent Tainting Act and a SpinCo Tainting Act,
         and both such Acts occurred, any taxes or liability resulting from
         such Final Determination (together with any reasonable expenses,
         including, but not limited to, attorney's fees incurred in defending
         against any liability) shall be borne by the party whose Act occurred
         first.

         (c)      Covenant and Indemnification for SpinCo Tainting Acts. SpinCo
covenants that neither SpinCo nor any member of the SpinCo Group shall commit
or be party to or the subject of any SpinCo Tainting Act. In the event of a
Final Determination that the Distribution or the Internal Distribution results
in any Distribution Related Gain which Final Determination would not have been
made but for a SpinCo Tainting Act, SpinCo shall pay, and shall indemnify and
hold harmless Parent and its Affiliates on an After Tax Basis, from and
against, any liability of Parent or its Affiliates, or of SpinCo or its
Affiliates, to any Taxing Authority, Parent shareholders or SpinCo shareholders
(together with any reasonable expenses, including, but not limited to,
attorney's fees

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incurred in defending against any such liability) resulting from a Final
Determination that the Distribution or the Internal Distribution results in any
Distribution Related Gain.

         (d)      Covenant and Indemnification for Parent Tainting Acts. Parent
covenants that neither Parent nor any member of the Parent Group shall commit
or be party to or the subject of any Parent Tainting Act. In the event of a
Final Determination that the Distribution or the Internal Distribution results
in any Distribution Related Gain which Final Determination would not have been
made but for a Parent Tainting Act, Parent shall pay, and shall indemnify and
hold harmless SpinCo and its Affiliates on an After Tax Basis, from and
against, any liability of SpinCo or its Affiliates, or of Parent or its
Affiliates, to any Taxing Authority, Parent shareholders or SpinCo shareholders
(together with any reasonable expenses, including, but not limited to,
attorney's fees incurred in defending against any such liability) resulting
from a Final Determination that the Distribution or the Internal Distribution
results in any Distribution Related Gain.

         (e)      Reporting and Restrictions. (i) During the two-year period
commencing immediately after the Distribution Date, at quarterly intervals and
at any other time reasonably requested by the party to receive such report,
Parent will provide to SpinCo and SpinCo will provide to Parent a report
("Report") listing for the period commencing immediately after the Distribution
Date and ending on the date of the Report any issuance, sale, transfer,
assignment or redemption (or any agreement concerning the issuance, sale,
transfer, assignment or redemption) of the reporting corporation's or any of
its Affiliates': (x) Stock (excluding any sale, transfer, or assignment of Stock
that meets the requirements of the safe harbor in Treas. Reg.ss.
1.355-7T(d)(5)); (y) Stock Options; or (z) Assets (excluding: (A) any sale,
transfer, or assignment of Assets that is fully taxable to the selling,
transferring, or assigning corporation; and (B) any other sale, transfer, or
assignment of Assets that in the aggregate does not exceed 5 percent of the
gross assets of the selling, transferring, or assigning corporation as
reflected on such corporation's balance sheet during any 90 day period).

                  (ii)     At any time during the two-year period commencing
         immediately after the Distribution Date that the issuance, sale,
         transfer, assignment or redemption (or any agreement concerning the
         issuance, sale, arrangement, assignment or redemption) of the
         reporting corporation's (or its Affiliates) Stock or Stock Options
         would exceed 10 percent by vote or value of the reporting
         corporation's (or its Affiliates) outstanding Stock (treating Stock
         Options as exercised) when aggregated with all prior such issuances,
         sales, transfer, assignments or redemptions occurring after the
         Distribution Date, or the issuance, sale, transfer, or assignment (or
         any agreement concerning the issuance, sale, transfer, or assignment)
         of the reporting corporation's (or its Affiliates) Assets, when
         aggregated with all prior such issuances, sales, transfers of
         assignments occurring after the Distribution Date, exceeds 10 percent
         of the gross assets of the selling, transferring, or assigning
         corporation as reflected on such corporation's balance sheet, a notice
         ("Notice") of such transaction must be given to the other party within
         10 days of entering into any agreement concerning the issuance, sale,
         arrangement, assignment or redemption of the reporting corporation's
         (or its Affiliate's) stock (but in no event less than 30 days prior to

                                      11
<PAGE>

         such issuance, transfer, assignment or redemption). For purposes of
         this clause (ii) of Section 2.04(e), the exclusions from Parent's and
         SpinCo's Asset reporting obligations contained in clause (i) of
         Section 2.04(e) shall not apply, but the exclusions to Parent's and
         SpinCo's Stock reporting obligations contained in clause (i) of
         Section 2.04(e) shall apply.

                  (iii)    Parent's and SpinCo's obligations to issue Reports
         and Notices will be extended beyond the two-year reporting period (not
         to exceed five years after the Distribution Date) until the
         consummation of any agreement resulting in the issuance, sale,
         transfer or assignment of the reporting corporation's Stock, Stock
         Options or Assets that is reported or required to be reported during
         the two-year period after the Distribution Date.

                  (iv)     If, before the two-year anniversary of the
         Distribution, the issuances, sales, transfers, assignments, or
         redemptions (or agreements concerning the issuance, sale, transfer,
         assignment or redemption) of the reporting corporation's Stock, Stock
         Options or Assets that are required to be reported pursuant to clause
         (ii) of this Section 2.04(e), in the aggregate, would equal or exceed
         (as calculated using a method provided by a nationally recognized tax
         advisor acceptable to both Parent and SpinCo) a 45 Percent Interest in
         such reporting company (the "45 Percent Threshold"), such company (or
         companies, if both have reached the 45 Percent Threshold) shall not
         act or fail to take any commercially reasonable act that would cause
         the 45 Percent Threshold to be exceeded without obtaining an opinion
         from a nationally recognized tax advisor (acceptable to both Parent
         and SpinCo) that such issuance, sale, transfer, assignment, or
         redemption (or agreement concerning the issuance, sale, transfer,
         assignment or redemption) will not cause Section 355(e) or (f) of the
         Code to apply to the Distribution or the Internal Distribution. The
         expense of obtaining any opinion under this clause (iv) of Section
         2.04(e) will be borne by the party whose issuance, sale, transfer,
         assignment or redemption is the subject of such opinion. The party
         that receives such ruling or opinion shall forward a copy of such
         ruling or opinion to the other party at least thirty days prior to the
         consummation of the transaction contemplated to occur and with respect
         to which the ruling or opinion relates.

                  (v)      For purposes of this Section 2.04(e), Parent and
         SpinCo will not be required to report any issuance, sale, transfer,
         assignment, or redemption of Stock, Stock Options or Assets with
         respect to which (y) the Internal Revenue Service ("IRS") has issued a
         private letter ruling to Parent or SpinCo, or (z) a nationally
         recognized tax advisor acceptable to both Parent and SpinCo has issued
         an opinion that such issuance, sale, transfer, assignment, or
         redemption should not be required to be taken into account in applying
         Sections 355(e) or 355(f) of the Code by reason of any authority upon
         which taxpayers are authorized to rely. The expense of obtaining any
         opinion under this clause (v) of Section 2.04(e) from a nationally
         recognized tax advisor or an IRS private letter ruling will be borne
         by the party whose issuance, sale, transfer, assignment or redemption
         is the subject of such opinion or private letter ruling. The party
         that

                                      12
<PAGE>

         receives such ruling or opinion shall forward a copy of such ruling or
         opinion to the other party at least thirty days prior to the
         consummation of the transaction contemplated to occur and with respect
         to which the ruling or opinion relates.

                                  ARTICLE III
                    CARRYBACKS, DISTRIBUTIONS AND ELECTIONS

3.01     Carrybacks.

         (a)      To the extent permitted by law, any member of the SpinCo
Group shall be entitled, but not required, to carry back any Tax Attribute from
a taxable period ending after the Distribution Date to a taxable period ending
before or including the Distribution Date. At the direction of SpinCo, Parent
shall file (or cause to be filed) any claim for refund relating to such
carryback. Any refund of taxes resulting from any such carryback by a member of
the SpinCo Group shall be payable to SpinCo as provided in Section 4.01. In
addition, if the SpinCo Tax Attribute is carried to a Common Consolidated Tax
Return and reduces the separate return tax liability of the SpinCo Group
(within the meaning of Section 2.03(c)), SpinCo's share of the Common
Consolidated Tax Return liability for the carryback year shall be recomputed
("SpinCo's Recomputed Share"), and Parent shall pay to SpinCo an amount equal
to the sum of (i) the excess of SpinCo's share of the Common Consolidated Tax
Return liability as originally computed (but not in excess of SpinCo's payment
of such liability) over SpinCo's Recomputed Share, and (ii) the payments made
by SpinCo for the use of a Tax Attribute of the Parent Group to the extent the
Tax Attribute of the Parent Group is replaced by the Tax Attribute of the
SpinCo Group as a result of the carryback. SpinCo shall indemnify and hold the
Parent Group harmless on an After Tax Basis for any tax liability that results
from any refund claim relating to a carryback under this Section 3.01(a).
Notwithstanding any other provision of this Agreement to the contrary, Parent
shall be considered the Controlling Party for purposes of Article V for any tax
audit or proceeding involving a Common Consolidated Tax Return for any period
ending before or including the Distribution Date to which the net operating
loss or other item is carried and Parent shall have sole right to contest such
audit or proceeding and to employ advisors of its choice under Section 5.01
provided, however, that Parent shall (i) permit SpinCo to participate at its
own expense in any proceedings relating to any claim for refund pursuant to
this Section 3.01(a); (ii) at SpinCo's request, contest any denial (in whole or
in part) of any such claim for refund, provided that SpinCo shall agree to pay
to Parent on demand all out-of-pocket costs, losses and expenses (including,
but not limited to, legal and accounting fees) paid or incurred by Parent in
connection with contesting such claim; (iii) not settle any such claim for
refund without SpinCo's consent (which consent shall not be unreasonably
delayed or withheld); provided that if Parent wishes to settle such claim and
SpinCo does not consent, SpinCo will pay to Parent on demand all out-of-pocket
costs, losses and expenses (including, but not limited to, legal and accounting
fees) paid or incurred by Parent in connection with contesting such claim,
regardless of whether SpinCo requested such claim to be contested; and (iv) to
the extent SpinCo is not participating, shall keep SpinCo informed as to all
significant developments relating to any such claim for refund or the contest
of any denial thereof.

                                      13
<PAGE>

         (b)      To the extent permitted by law, any member of the Parent
Group shall be entitled, but not required, to carry back any net operating loss
or other item from a taxable period ending after the Distribution Date to a
taxable period ending before or including the Distribution Date. Any refund of
taxes resulting from any such carryback by a member of the Parent Group shall
be payable to Parent as provided in Section 4.01. Parent shall indemnify and
hold the SpinCo Group harmless for any tax liability that results from any
refund claim relating to a carryback under this Section 3.01(b).
Notwithstanding any other provision of this Agreement to the contrary, Parent
shall be considered the Controlling Party for purposes of Article V for any tax
audit or proceeding involving any period ending before or including the
Distribution Date to which the net operating loss or other item is carried back
and Parent shall have sole right to contest such audit or proceeding and to
employ advisors of its choice under Section 5.01.

3.02     Distributions and Elections.

         (a)      Except as contemplated by the Corporate Transactions, no
member of the SpinCo Group shall make any tax election, pay or cause to be paid
any distribution from an Affiliate or take any other action that would cause an
actual increase in the taxes for which the Parent Group is responsible or would
cause an actual reduction in the amount of any refund of taxes payable to the
Parent Group unless Parent and its Affiliates are indemnified and held
harmless, on an After Tax Basis, for the detriment resulting from such act.

         (b)      Except as contemplated by the Corporate Transactions, no
member of the Parent Group shall make any tax election, pay or cause to be paid
any distribution from an Affiliate or take any other action that would cause an
actual increase in the taxes for which the SpinCo Group is responsible or would
cause an actual reduction in the amount of any refund of taxes payable to the
SpinCo Group unless SpinCo and its Affiliates are indemnified and held
harmless, on an After Tax Basis, for the detriment resulting from such act.

         (c)      Neither SpinCo nor Parent shall be liable to the other under
Section 3.02(a) or Section 3.02(b) for any tax position on a Tax Return that
independent tax counsel selected by SpinCo (in the case of a Tax Return
position desired to be taken by any member of the SpinCo Group) or Parent (in
the case of a Tax Return position desired to be taken by any member of the
Parent Group), the identity of which is reasonably acceptable to the other
party, opines is necessary and required to comply with the Code, the
regulations or other applicable law.

         (d)      In the absence of a controlling change in law or
circumstances, and unless deviation from past practice would have no adverse
effect on any of the parties, to the extent permitted by law, SpinCo and Parent
will file any Tax Return which such party is responsible to file for any Period
Before Distribution or for the period that includes the Distribution Date
consistent with the tax principles and methods reflected in the most recent Tax
Returns involving similar Tax Items filed prior to the Distribution Date.

                                      14
<PAGE>

                                   ARTICLE IV
                                    PAYMENTS

         4.01     Payments. Subject to the provisions of Section 2.03 and
Section 5.03, and except as otherwise explicitly provided herein, all payments
due hereunder to a party shall be paid not later than twenty days after the
receipt or crediting of a refund or the receipt of notice of a Final
Determination by reason of which a party is liable for an indemnified cost
pursuant to this Agreement. In the event that such payment is not made within
ten days after such receipt, credit or notice, interest shall be charged to the
indemnifying party at a rate equal to the Applicable Federal Rate from the date
on which the indemnifying party receives such receipt, credit or notice to the
date the payment is made.

         4.02     Notice. SpinCo and Parent shall give each other prompt written
notice of any payment that may be due under this Agreement.

         4.03     Reimbursement. Any party hereto that is entitled to
indemnification, payment or reimbursement pursuant to the terms of this
Agreement shall be reimbursed on an After Tax Basis for all reasonable expenses
(including, but not limited to, attorney's fees) incurred in connection with the
enforcement of its rights hereunder. The preceding sentence shall not be
construed to limit a party's entitlement to reimbursements or payments to which
it otherwise is entitled pursuant to the terms of this Agreement.

                                   ARTICLE V
                                   TAX AUDITS

         5.01     General. Except as provided in Sections 3.01, 5.02 and 6.02
hereof, each of SpinCo and Parent shall have sole responsibility for all audits
or other proceedings with respect to Tax Returns that it is required to file
under Section 2.01 (the "Controlling Party"). Except as provided in Section 5.03
hereof, the Controlling Party shall have the sole right to contest the audit or
proceeding and to employ advisors of its choice..

         5.02     Indemnified Claims in General. SpinCo and Parent shall
promptly notify the other in writing prior to the issuance of an actual notice
of assessment by the relevant Taxing Authority (for example, if by the IRS,
prior to the issuance of a Form 5701 Notice of Proposed Adjustment) of any
proposed adjustment to a Tax Return that may result in liability of the other
party (the "Indemnitor") under this Agreement. If there is no Indemnitor other
than the Controlling Party, Sections 5.02 and 5.03 are inapplicable and Section
5.01 shall govern the rights of the parties with respect to the audit or
proceeding. If the Indemnitor is not also the Controlling Party, the Controlling
Party shall provide the Indemnitor with information about the nature and amounts
of the proposed adjustments and shall permit the other party to participate in
the proceeding at its own expense, provided, however, that the failure of the
Controlling Party to notify or provide such information to the Indemnitor shall
not affect the Indemnitor's indemnity obligations hereunder unless and to the
extent the Indemnitor is materially prejudiced thereby. Upon a Final
Determination of the assessment or proposed adjustment, the Indemnitor shall pay
its pro rata share (based on its share of liability resulting from the Final
Determination) of all reasonable expenses (including, but not limited to, legal
and accounting fees) incurred by the

                                       15
<PAGE>

Controlling Party in connection with the assessment or proposed adjustment
within seven days after a written request by the Controlling Party.

         5.03     Certain Tax Claims.

                  (a)      Any issue raised by any Taxing Authority in any tax
inquiry, audit, examination, investigation, dispute, litigation or other
proceeding relating to a Common Consolidated Tax Return that would result in tax
liability to the Indemnitor is defined as a "Claim." Except as provided in
Sections 3.01(b), 5.03(d) and the second sentence of Section 5.02 hereof, and
notwithstanding any other provision of this Agreement that may be construed to
the contrary, the Controlling Party agrees to contest any Claim and not to
settle any Claim without the prior written consent of the Indemnitor, provided
that (i) the Controlling Party shall provide notice to Indemnitor pursuant to
Section 5.02 hereof of any Claim, (ii) within thirty days after notice by the
Controlling Party to the Indemnitor of a Claim is received by the Indemnitor,
the Indemnitor shall (1) request in writing that such Claim be contested, and
(2) provide an opinion of independent tax counsel, selected by the Indemnitor
and reasonably acceptable to the Controlling Party, to the effect that it is
more likely than not that a Final Determination shall be substantially
consistent with the Indemnitor's position relating to such Claim, (iii) the
Indemnitor agrees to pay on demand all out-of-pocket costs, losses and expenses
(including, but not limited to, legal and accounting fees) paid or incurred by
the Controlling Party in connection with contesting such Claim, except for a
Claim where the expenses are shared pursuant to Section 2.04(a) hereof, and (iv)
the Controlling Party, after reasonable consultation with the Indemnitor, shall
determine in its sole discretion the nature of all actions to be taken to
contest such Claim, including (1) whether any action to contest such Claim shall
initially be by way of judicial or administrative proceeding, or both, (2)
whether any such Claim shall be contested by resisting payment thereof or by
paying the same and seeking a refund thereof, and (3) the court or other
judicial body before which judicial action, if any, shall be commenced. To the
extent the Indemnitor is not participating, the Controlling Party shall keep the
Indemnitor and, upon request by the Indemnitor, its counsel, informed as to the
progress of the contest.

                  (b)      If the Indemnitor requests that the Controlling Party
accept a settlement of a Claim offered by any Taxing Authority and if such Claim
may, in the reasonable discretion of the Controlling Party, be settled without
prejudicing any claims such Taxing Authority may have with respect to matters
other than the transactions contemplated by the Distribution Agreement, the
Controlling Party shall either accept such settlement offer or agree with the
Indemnitor that the Indemnitor's liability with respect to such Claim shall be
limited to the lesser of (i) an amount calculated on the basis of such
settlement offer or (ii) the amount calculated on the basis of a Final
Determination. After a settlement or a Final Determination, the Controlling
Party shall reimburse the Indemnitor in an amount equal to the excess, if any,
of the amount of expenses paid by the Indemnitor pursuant to clause (iv) of
Section 5.03(a) over the Indemnitor's pro rata portion of such expenses based on
the Indemnitor's share of the liability with respect to such Claim as determined
under the first sentence of this Section 5.03(b).

                                       16
<PAGE>

                  (c)      If the Controlling Party shall elect to pay the Claim
and seek a refund, the Indemnitor shall lend sufficient funds on an
interest-free basis to the Controlling Party, and with no net after-tax cost to
the Controlling Party, to cover any applicable indemnity obligations of the
Indemnitor. To the extent such refund claim is ultimately disallowed, the loan
or portion thereof equal to the amount of the refund claim so disallowed shall
be applied against the Indemnitor's obligation to make indemnity payments
pursuant to this Agreement. In addition, if the refund is ultimately disallowed,
the Controlling Party shall reimburse the Indemnitor for the Controlling Party's
pro rata portion of the expenses paid by the Indemnitor under clause (iv) of
Section 5.03(a) based on the Controlling Party's share of the tax previously
paid. To the extent such refund claim is allowed, the Controlling Party shall
pay to the Indemnitor (i) the amounts loaned or advanced to the Controlling
Party with respect to the indemnity obligation (not to exceed the Indemnitor's
share of any refund), and (ii) the Controlling Party's pro rata portion of the
expenses paid by the Indemnitor under clause (iv) of Section 5.03(a) based on
the Controlling Party's share of any refund, within ten days of the receipt of
such refund (or if the Controlling Party would have received such refund but for
the existence of a counterclaim or other claim not indemnified by the Indemnitor
under this Agreement, within ten days of the final resolution of the contest),
plus an amount equal to any interest received (or that would have been received)
from the Taxing Authority that is properly attributable to such amount.

                  (d)      Except as provided below, the Controlling Party shall
not settle a Claim that Indemnitor is entitled to require the Controlling Party
to contest under Section 5.03(a) without the prior written consent of the
Indemnitor (which consent shall not be unreasonably withheld). At any time,
whether before or after commencing to take any action pursuant to this Section
5.03 with respect to any Claim, the Controlling Party may decline to take action
with respect to such Claim and may settle such Claim without the prior written
consent of the Indemnitor by notifying the Indemnitor in writing that the
Indemnitor is released from its obligations to indemnify the Controlling Party
with respect to such Claim (which notification shall release the Indemnitor from
such obligations except to the extent the Indemnitor has agreed in writing that
it would be willing to have its liability calculated on the basis of a
settlement offer, as provided in Section 5.03(b), at that point in the contest)
and with respect to any Claim the resolution of which is based on the outcome of
such Claim. If the Controlling Party settles any Claim without the consent of
the Indemnitor or otherwise takes or declines to take any action pursuant to
this paragraph, the Controlling Party shall (i) reimburse the Indemnitor for all
the expenses paid by the Indemnitor pursuant to clause (iv) of Section 5.03(a),
and (ii) pay to the Indemnitor any other amounts paid or advanced by the
Indemnitor with respect to such Claim (other than amounts payable by the
Indemnitor in connection with a settlement offer pursuant to Section 5.03(b)),
plus interest at a rate equal to the Applicable Federal Rate from the date on
which the amounts were advanced.

                                       17
<PAGE>

                                   ARTICLE VI
                                   COOPERATION

         6.01     General. Parent and SpinCo shall cooperate with each other in
the filing of any Tax Return and the conduct of any audit or other proceeding
and each shall execute and deliver such powers of attorney and make available
such other documents as are reasonably necessary to carry out the intent of this
Agreement. Each party agrees to notify the other party in writing of any audit
adjustments that do not result in tax liability but can be reasonably expected
to affect Tax Returns of the other party, or any of its Affiliates, for any
period that includes or is subsequent to the Distribution Date. Each party
agrees to treat the Distribution and the Internal Distribution for all income
tax purposes as not causing the recognition of any gain or loss.

         6.02     Cooperation With Respect to Tax Return Filings, Examinations
and Tax Related Controversies.

                  (a)      SpinCo's Obligations. In addition to any obligations
imposed pursuant to the Distribution Agreement, SpinCo and each other member of
the SpinCo Group shall fully cooperate with Parent and its representatives, in a
prompt and timely manner, in connection with (i) the preparation and filing of
and (ii) any inquiry, audit, examination, investigation, dispute, or litigation
involving, any Tax Return filed or required to be filed by or for any member of
the Parent Group for any taxable period ending before or including the
Distribution Date. Such cooperation shall include, but not be limited to, (x)
the execution and delivery to Parent by the appropriate SpinCo Group member of
any power of attorney required to allow Parent and its counsel to participate on
behalf of SpinCo or such other SpinCo Group member in any inquiry, audit or
other administrative proceeding and to assume the defense or prosecution, as the
case may be, of any suit, action or proceeding for which Parent is the
Controlling Party, (y) making available to Parent, during normal business hours,
and within thirty days of any written request therefor, all books, records and
information, and the assistance of all appropriate officers and employees,
reasonably necessary or useful in connection with any tax inquiry, audit,
examination, investigation, dispute, litigation or any other matter, and (z) use
of its commercially reasonable best efforts in defending Parent's interests in
any tax inquiry, audit, examination, investigation, dispute, litigation or any
other matter for which SpinCo is the Controlling Party.

                  (b)      Parent's Obligations. In addition to any obligations
imposed pursuant to the Distribution Agreement, Parent shall fully cooperate
with SpinCo and its representatives, in a prompt and timely manner, in
connection with (i) the preparation and filing of and (ii) any inquiry, audit,
examination, investigation, dispute, or litigation involving, any Tax Return
filed or required to be filed by or for any member of the SpinCo Group which
includes Parent or any other member of the Parent Group. Such cooperation shall
include, but not be limited to, (x) the execution and delivery to SpinCo by the
appropriate Parent Group member of any power of attorney required to allow
SpinCo and its counsel to participate on behalf of Parent or such other Parent
Group member in any inquiry, audit or other administrative proceeding and to
assume the defense or prosecution, as the case may be, of any suit, action or
proceeding for which SpinCo is the Controlling Party, (y) making available to
SpinCo, during normal business

                                       18
<PAGE>

hours, and within thirty days of any written request therefor, all books,
records and information, and the assistance of all appropriate officers and
employees, reasonably necessary or useful in connection with any tax inquiry,
audit, examination, investigation, dispute, litigation or any other matter, and
(z) the use of its commercially reasonable best efforts in defending SpinCo's
interests in any tax inquiry, audit, examination, investigation, dispute,
litigation or other matter for which Parent is the Controlling Party.

                  (c)      Remedy for Failure to Comply. If Parent reasonably
determines that SpinCo is not for any reason fulfilling its obligations under
Section 6.02(a) hereof, or if SpinCo reasonably determines that Parent is not
for any reason fulfilling its obligations under Section 6.02(b) hereof, then
Parent or SpinCo, as the case may be, shall have the right to appoint an
independent nationally recognized public accounting or law firm to assist the
other in meeting its obligations under this Section 6.02. Such entity shall have
complete access, during normal business hours to all books, records and
information, and the reasonable cooperation of all appropriate officers and
employees, of Parent or SpinCo, as the case may be. In addition, the
non-fulfilling party shall be responsible for any additional tax liability
caused by the non-fulfillment of its obligations under Section 6.02(a) or (b).
Anything in the preceding provisions of this Section 6.02(c) to the contrary
notwithstanding, if the party alleged not to have fulfilled or be fulfilling its
obligations under Section 6.02(a) or 6.02(b), as applicable, shall maintain that
it fulfilled its obligations under Section 6.02(a) or Section 6.02(b), as
applicable, and/or that no additional liability resulted from any
non-fulfillment with respect to Section 6.02(a) or Section 6.02(b), as
applicable, such matter or matters shall be determined by independent counsel
agreed to by both the allegedly non-fulfilling party and the party alleging
non-fulfillment (which determination shall be final and binding). If such
independent counsel shall determine that the allegedly non-fulfilling party in
fact fulfilled its obligations under Section 6.02(a) or Section 6.02(b), as
applicable: (i) the fees and expenses of the accounting or law firm appointed
pursuant to the first sentence of this Section 6.02(c) as well as the fees and
expenses of the independent counsel making such determination shall be paid by
the party alleging non-fulfillment, and (ii) liability for taxes alleged to have
resulted from such non-fulfillment shall be borne by SpinCo or Parent without
regard to this Section 6.02(c). If such independent tax counsel shall determine
that the alleged non-fulfilling party did not fulfill its obligations under
Section 6.02(a) or 6.02(b), as applicable: (i) the fees and expenses referred to
in clause (i) of the preceding sentence shall be borne by the party determined
not to have fulfilled such obligations, and (ii) the additional tax liability
alleged to have been caused by such non-fulfillment shall be borne by the
non-fulfilling party, unless and to the extent that such independent counsel
determines that such taxes were not caused by such non-fulfillment, in which
case and to which extent liability for taxes alleged to have resulted from such
non-fulfillment shall be borne by SpinCo or Parent without regard to this
Section 6.02(c).

                                  ARTICLE VII
                          RETENTION OF RECORDS; ACCESS

         The Parent Group and the SpinCo Group shall (a) in accordance with
their then current record retention policy, retain records, documents,
accounting data and other information

                                       19
<PAGE>

(including computer data) necessary for the preparation and filing of all Tax
Returns in respect of taxes of the Parent Group or the SpinCo Group for any
taxable period ending before or including the Distribution Date for the audit of
such Tax Returns; and (b) give to the other reasonable access to such records,
documents, accounting data and other information (including computer data) and
to its personnel (insuring their cooperation) and premises, for the purpose of
the review or audit of such Tax Returns to the extent relevant to an obligation
or liability of a party under this Agreement. At any time after the Distribution
Date that either the Parent Group or the SpinCo Group proposes to destroy such
material or information, it shall first notify the other Group in writing, and
the other Group shall be entitled to receive such materials or information
proposed to be destroyed.

                                  ARTICLE VIII
                                    DISPUTES

         8.01     Negotiation. Subject to Section 8.05, in the event of a
controversy, dispute or claim arising out of, in connection with, or in relation
to the interpretation, performance, nonperformance, validity or breach of this
Agreement or otherwise arising out of, or in any way related to this Agreement,
including any claim based on contract, tort, statute or constitution
(collectively, "Agreement Disputes"), the management of the parties shall
negotiate in good faith for a reasonable period of time to settle such Agreement
Dispute; provided, however, such reasonable period shall not, unless otherwise
agreed by the parties in writing, exceed sixty days from the time a party has
first given written notice of such Agreement Dispute to the other party.

         8.02     Mediation. If after such reasonable period of negotiation the
parties are unable to settle such Agreement Dispute (and in any event, unless
otherwise agreed in writing by the parties, after ninety days have elapsed from
the time the parties began such negotiations), such Agreement Dispute shall be
determined, at the request of any party, by mediation conducted in a location
selected by the non-requesting party and acceptable to the requesting party,
before a tax expert mutually agreeable to both parties. The mediation process
shall continue as the exclusive method of resolving the Agreement Dispute (other
than negotiation between the parties) until the earlier of the Agreement Dispute
being resolved or the mediator finding in good faith that all settlement
possibilities have been exhausted and that the matter is not resolvable through
mediation.

         8.03     Continuing Performance. Unless otherwise agreed in writing,
the parties will continue to honor all other commitments under this Agreement
during the course of dispute resolution pursuant to the provisions of this
Article VIII with respect to all matters not subject to such dispute,
controversy or claim.

         8.04     Other Remedies. Nothing in this Article VIII shall limit the
right that any party may otherwise have to seek to obtain from any court of
competent jurisdiction (i) preliminary injunctive relief in order to preserve
the status quo pending the resolution of the a dispute or (ii) temporary or
permanent injunctive relief from any breach of any provisions of this Agreement.
By seeking such relief, a party in no way waives its arbitration rights under
this Agreement.

                                       20
<PAGE>

         8.05     Tolling. The parties acknowledge and agree that any statute of
limitations or any other defense that could be raised by a party based on the
passage or expiration of time with respect to any Agreement Dispute shall be
suspended and tolled during the period in which the parties are negotiating in
good faith pursuant to Section 8.01 hereof and during the period in which any
mediation is pending or conducted pursuant to Section 8.02 hereof.

                                   ARTICLE IX
                           TERMINATION OF LIABILITIES

         Notwithstanding any other provision in this Agreement, any liabilities
determined under this Agreement shall not terminate any earlier than the
expiration of the applicable statute of limitation for such liability. All other
covenants under this Agreement shall survive indefinitely.

                                   ARTICLE X
                            MISCELLANEOUS PROVISIONS

         10.01    Complete Agreement; Construction. This Agreement shall
constitute the entire agreement between the parties with respect to the subject
matter hereof and shall supersede all previous negotiations, commitments and
writings with respect to such subject matter.

         10.02    Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more such counterparts have been signed by
each of the parties and delivered to the other parties.

         10.03    Survival of Agreements. Except as otherwise contemplated by
this Agreement, all covenants and agreements of the parties contained in this
Agreement shall survive the Distribution Date.

         10.04    Notices. All notices and other communications hereunder shall
be in writing, shall reference this Agreement and shall be hand delivered or
mailed by registered or certified mail (return receipt requested) or sent by any
means of electronic message transmission with delivery confirmed (by voice or
otherwise) to the parties at the following addresses (or at such other addresses
for a party as shall be specified by like notice) and will be deemed given on
the date on which such notice is received:

         To Parent:

                           F.N.B. Corporation
                           One F.N.B. Boulevard
                           Hermitage, Pennsylvania 16148
                           Attention: Stephen J. Gurgovits
                           Telephone: (724) 981-6000
                           Facsimile: _______________________

                                       21
<PAGE>

         To SpinCo:

                           First National Bankshares of Florida, Inc.
                           2150 Goodlette Road North
                           Naples, Florida 34102
                           Attention: Gary L. Tice
                           Telephone: (239) 262-7600
                           Facsimile: _______________________________

         10.05    Waivers. The failure of any party to require strict'
performance by any other party of any provision in this Agreement shall not
waive or diminish that party's right to demand strict performance thereafter of
that or any other provision hereof.

         10.06    Amendments. This Agreement may not be modified or amended
except by an agreement in writing signed by each of the parties hereto.

         10.07    Successors and Assigns. The provisions to this Agreement shall
be binding upon, inure to the benefit of and be enforceable by the parties and
their respective successors and assigns.

         10.08    Affiliates. Each of the parties hereto shall cause to be
performed, and hereby guarantees the performance of, all actions, agreements and
obligations set forth herein to be performed by any Affiliate of such party or
by any entity that is contemplated to be an Affiliate of such party on and after
the Distribution Date.

         10.09    Third-Party Beneficiaries. This Agreement is solely for the
benefit of the parties hereto and their respective Affiliates and should not be
deemed to confer upon third parties any remedy, claim, liability, reimbursement,
claim of action or other right in excess of those existing without reference to
this Agreement.

         10.10    Title and Headings. Titles and headings to Sections herein are
inserted for convenience of reference only and are not intended to be a part of
or to affect the meaning or interpretation of this Agreement.

         10.11    Governing Law. This Agreement shall be governed by and
construed in accordance with the Laws of the State of Florida, without regard to
conflicts of Laws principles.

         10.12    Dispute Resolution. Any dispute arising out of or relating to
the performance, breach or interpretation of this Agreement shall be handled in
accordance with Article VIII of this Agreement (solely with respect to matters
of computation) and Article V of the Distribution Agreement.

         10.13    Severability. In the event any one or more of the provisions
contained in this Agreement should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein and therein shall not in any way be affected or
impaired thereby. The parties shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions,
the economic or

                                       22
<PAGE>

operational effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

                            [Signature Page Follows]

                                       23
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.

                                       F.N.B. CORPORATION

                                       By:
                                          -------------------------------------
                                          Stephen J. Gurgovits, Vice Chairman

                                       FIRST NATIONAL BANKSHARES OF
                                        FLORIDA, INC.

                                       By:
                                          -------------------------------------
                                          Gary L. Tice, Chairman and Chief
                                          Executive Officer

                                       24
<PAGE>

                                    EXHIBIT A

                        Affiliates of F.N.B. CORPORATION

First National Corporation

Firs National community Development Corporation

First National Bank of Pennsylvania

         F.N.B. PA Investments Corporation

         Infitech, Inc.

         First National Building Corporation

         First National Corporation, Hermitage, PA

         First National Financial Management Corporation

         Metropolitan National Realty Holdings, Inc.

         Pennsylvania First National Trust

                  F.N.B. Advisors, Inc.

F.N.B. Building Corporation

Penn-Ohio Life Insurance Company

Regency Finance Company

         Regency Investment Company, Inc.

         Citizens Financial Services, Inc.

Gelvin, Jackson & Starr, Inc.

<PAGE>

                                    EXHIBIT B

            Affiliates of FIRST NATIONAL BANKSHARES OF FLORIDA, INC.

Florida First National Trust

First National Bank of Florida

         First National Realty Services Co.

         FNB Corporation Florida Holdings Company

         FNB Corporation Florida Real Estate Holding company

         FNB Corporation Florida Real Estate Investment Trust Co.

         West Coast Guaranty Title Insurance Co.

         First National Corporation (formerly Citizens Financial Corporation)

Roger Bouchard Insurance, Inc.

<PAGE>

        Allocation of Tax Liability and Expenses of Certain Transactions

<TABLE>
<CAPTION>
         TRANSACTION                                                ALLOCATION OF TAX LIABILITY AND EXPENSE
         -----------                                                ---------------------------------------
<S>                                                            <C>
1.       The February 2001 transfer of                         First National Bank of Florida with respect to
         assets by West Coast Guarantee                        any gain or loss of West Coast Guarantee Bank
         Bank to First National Bank                           resulting from the transfer that is taken into
         Florida                                               account immediately before the Distribution
                                                               pursuant to Treas. Reg.ss. 1.1502-13(c)

2.       Transactions involving the stock                              -        Regency Finance with respect to
         of Customer Service Center of                                          expenses incurred, and any gain or
         F.N.B., L.L.C. ("CSC")                                                 loss realized, in connection with
                                                                                the sale of CSC stock to First
                                                                                National Bank of Pennsylvania

                                                                       -        First National Bank of Pennsylvania
                                                                                and First National Bank of Florida
                                                                                shall individually bear their
                                                                                respective gain or loss resulting
                                                                                from the receipt of property
                                                                                pursuant to liquidation of CSC

                                                                       -        Gain or loss realized, and expenses
                                                                                incurred, by CSC in connection with
                                                                                its complete liquidation (including
                                                                                gain or loss realized on the
                                                                                distributions of property) shall be
                                                                                borne by First National Bank of
                                                                                Pennsylvania and First National
                                                                                Bank of Florida in proportion to
                                                                                their percentage ownership of CSC
                                                                                stock immediately before its
                                                                                liquidation
</TABLE>

<PAGE>

<TABLE>
<S>                                                            <C>
3.       Sale of Gelvin Jackson & Starr stock by               Roger Bouchard Insurance, Inc. with respect to expenses
         Roger Bouchard Insurance, Inc. to F.N.B.              incurred, and any gain or loss realized, in connection
         Corporation                                           with such sale

4.       Sale of municipal bonds by First National             First National Bank of Pennsylvania with respect to
         Bank of Pennsylvania                                  expenses incurred, and any gain or loss realized, in
                                                               connection with such sale

5.       Division of the corporate owned life                  Any tax liability resulting from such division (as well
         insurance                                             as the expenses incurred to effect the division) shall
                                                               be borne by F.N.B. Corporation and First National
                                                               Bankshares of Florida, Inc. in proportion to their
                                                               percentage ownership of the insurance contracts
</TABLE><PAGE>
                                                                    EXHIBIT 10.3

                          EMPLOYEE BENEFITS AGREEMENT

                                     BETWEEN

                               F.N.B. CORPORATION

                                       AND

                   FIRST NATIONAL BANKSHARES OF FLORIDA, INC.

                           DATED AS OF _________, 2003

<PAGE>
                           EMPLOYEE BENEFITS AGREEMENT

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                             Page
                                                                                                                             ----
<S>                                                                                                                          <C>
ARTICLE I DEFINITIONS AND REFERENCES...........................................................................................1
     SECTION 1.1        Definitions............................................................................................1
     SECTION 1.2        References.............................................................................................5

ARTICLE II GENERAL PRINCIPLES..................................................................................................6
     SECTION 2.1        Assumption of Liabilities..............................................................................6
     SECTION 2.2        SpinCo Group Participation In Parent Plans.............................................................6
     SECTION 2.3        Establishment or Assumption of the SpinCo Plans........................................................6
     SECTION 2.4        Terms of Participation by Transferred Individuals......................................................6

ARTICLE III DEFINED BENEFIT PLANS..............................................................................................7
     SECTION 3.1        F.N.B. Corporation Retirement Income Plan..............................................................7

ARTICLE IV DEFINED CONTRIBUTION PLANS..........................................................................................7
     SECTION 4.1        Savings Plans..........................................................................................7

ARTICLE V HEALTH AND WELFARE PLANS.............................................................................................8
     SECTION 5.1        Assumption of Health and Welfare Plan Liabilities......................................................8
     SECTION 5.2        Parent Short-Term Disability Arrangements..............................................................9
     SECTION 5.3        COBRA and HIPAA........................................................................................9
     SECTION 5.4        Leave of Absence Programs..............................................................................9
     SECTION 5.5        Post-Distribution Transitional Arrangements............................................................9
     SECTION 5.6        Application of Article V to the SpinCo Group..........................................................10

ARTICLE VI EXECUTIVE COMPENSATION MATTERS.....................................................................................11
     SECTION 6.1        F.N.B. Restricted Stock and Incentive Bonus Plan......................................................11
     SECTION 6.2        Stock Options.........................................................................................12
     SECTION 6.3        Deferred Compensation Plans...........................................................................12
     SECTION 6.4        Rabbi Trust...........................................................................................13
     SECTION 6.5        Employment Agreements.................................................................................13
     SECTION 6.6        Automobile Program....................................................................................13
     SECTION 6.7        Director Benefits.....................................................................................13
     SECTION 6.8        Vacation Pay/Paid Time-Off............................................................................14
     SECTION 6.9        Split Dollar Life Insurance...........................................................................14

ARTICLE VII GENERAL...........................................................................................................14
     SECTION 7.1        Sharing of Participant Information....................................................................14
     SECTION 7.2        Restrictions on Extension of Option Exercise Periods, Amendment or Modification of Option
                        Terms and Conditions..................................................................................14
     SECTION 7.3        Reporting and Disclosure and Communications to Participants...........................................14
     SECTION 7.4        Plan Audits...........................................................................................15
     SECTION 7.5        Beneficiary Designations/Release of Information/Right of Reimbursement................................16
     SECTION 7.6        Requests for Internal Revenue Service Rulings and United States Department of Labor
                        Opinions..............................................................................................16
     SECTION 7.7        Fiduciary and Related Matters.........................................................................16
     SECTION 7.8        No Third-Party Beneficiaries; Non-Termination of Employment...........................................16
     SECTION 7.9        Consent of Third Parties..............................................................................16
     SECTION 7.10       Effect if Distribution Does Not Occur.................................................................17
     SECTION 7.11       Relationship of Parties...............................................................................17
     SECTION 7.12       Affiliates............................................................................................17
     SECTION 7.13       Dispute Resolution....................................................................................17
</TABLE>

<PAGE>
<TABLE>
<Caption>
                                                                                                                             Page
                                                                                                                             ----
<S>                     <C>                                                                                                  <C>
     SECTION 7.14       Indemnification.......................................................................................17
     SECTION 7.15       W-2 Matters...........................................................................................17
     SECTION 7.16       Confidentiality.......................................................................................18
     SECTION 7.17       Notices...............................................................................................18
     SECTION 7.18       Interpretation........................................................................................18
     SECTION 7.19       Severability..........................................................................................18
     SECTION 7.20       Governing Law/Execution...............................................................................18
</TABLE>

                                       ii
<PAGE>
                           EMPLOYEE BENEFITS AGREEMENT

         THIS EMPLOYEE BENEFITS AGREEMENT, dated as of the ____ day of
_________, 2003, is by and between F.N.B. Corporation, a Florida corporation
("Parent"), and First National Bankshares of Florida, Inc., a Florida
corporation ("SpinCo").

         WHEREAS, Parent's Board of Directors has determined that it is in the
best interests of Parent and its shareholders to separate Parent's existing
businesses into two independent businesses; and

         WHEREAS, in furtherance of the foregoing, on August 12, 2003, SpinCo
was formed and became a wholly owned subsidiary of Parent; and

         WHEREAS, Parent intends to accomplish the separation of SpinCo through
a distribution of the stock of SpinCo to the shareholders of Parent that is
intended to be tax free pursuant to section 355 of the Internal Revenue Code of
1986, as amended (the "Distribution"); and

         WHEREAS, Parent and SpinCo have entered into an Agreement and Plan of
Distribution, dated as of ______________, 2003 (the "Distribution Agreement"),
and several other agreements that will govern certain matters relating to the
Distribution and the relationship of Parent and SpinCo and their respective
Subsidiaries following the Distribution; and

         WHEREAS, pursuant to the Distribution Agreement, Parent and SpinCo have
agreed to enter into this Agreement for the purpose of allocating assets,
liabilities, and responsibilities with respect to certain employee compensation
and benefit plans and programs between them.

         NOW, THEREFORE, in consideration of the mutual promises contained
herein and in the Distribution Agreement, the parties agree as follows:

                                   ARTICLE I
                           DEFINITIONS AND REFERENCES

     SECTION 1.1 Definitions. For purposes of this Agreement, capitalized terms
used (other than the formal names of Parent Plans (as defined below)) and not
otherwise defined shall have the respective meanings assigned to them below or
as assigned to them in the Distribution Agreement (as defined above):

         (a) "Action" has meaning given that term in the Distribution Agreement.

         (b) "Agreement" means this Employee Benefits Agreement, including all
the attached Appendices.

         (c) "ASO Contract" means an administrative services contract, related
prior practice, or related understanding with a third-party administrator that
pertains to any Parent Health and Welfare Plan or any SpinCo Health and Welfare
Plan.

         (d) "Award" means a long-term or short-term award under an Incentive
Plan or, as the context or facts may require, any other award under another
incentive or special bonus, incentive, or award program or arrangement.

         (e) "Code" means the Internal Revenue Code of 1986, as amended, and the
Treasury regulations promulgated thereunder, including any successor
legislation.

<PAGE>
         (f) "Conversion Formula" means the appropriate formula which shall be
applied in adjusting the exercise price and award size of Options under the
Parent Stock Incentive Plans and in determining the exercise price and number of
SpinCo Options under the SpinCo Incentive Plans. The Conversion Formula shall be
based on the closing per share prices of Parent Common Stock and SpinCo Common
Stock as reported on the New York Stock Exchange on the first trading day
following the Distribution Date or such other prices as jointly agreed upon by
SpinCo and Parent, and shall be determined and applied in such a manner as to
maintain (1) the aggregate spread of such Options, which is the difference
between the exercise price per share of Parent Common Stock covered by the
Option and the price per share of Parent Common Stock immediately preceding the
Distribution, multiplied by the total number of shares covered by the Option;
and (2) the ratio of the exercise price per share covered by the Option to the
price per share of Parent Common Stock immediately preceding the Distribution.

         (g) "Deferred Compensation Plans," when immediately preceded by
"Parent" means the F.N.B. Deferred Compensation Plan, the F.N.B. Corporation
Basic Retirement Plan, the F.N.B. Corporation ERISA Excess Profit Sharing and
Lost Match Plan, and the F.N.B. Corporation Directors' Compensation Plan. When
immediately preceded by "SpinCo," "Deferred Compensation Plans" means the
deferred compensation plans to be assumed, established or maintained by SpinCo
pursuant to Section 2.3.

         (h) "Director" means any director of Parent immediately prior to the
Distribution other than Gary L. Tice or Stephen J. Gurgovits.

         (i) "Distribution" has the meaning given that term under the
Distribution Agreement.

         (j) "Distribution Agreement" is defined in the preamble of this
Agreement.

         (k) "Distribution Date" has the meaning given that term under the
Distribution Agreement.

         (l) "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended. Reference to a specific provision of ERISA also includes any
proposed, temporary, or final regulation in force under that provision.

         (m) "Governmental Authority" means any federal, state, local, foreign,
or international court, government, department, commission, board, bureau,
agency, official, or other regulatory, administrative, or governmental
authority, including the Department of Labor, the Securities and Exchange
Commission, the Internal Revenue Service, and the Pension Benefit Guaranty
Corporation.

         (n) "Group Insurance Policy" means a group insurance policy issued in
connection with any Parent Health and Welfare Plan or any SpinCo Health and
Welfare Plan, as applicable.

         (o) "Health and Welfare Plans," when immediately preceded by "Parent"
means the health and welfare benefit plans, programs, and policies (including
the Reimbursement Plans) which are sponsored by Parent. When immediately
preceded by "SpinCo," "Health and Welfare Plans" means the benefit plans,
programs, and policies (including the Reimbursement Plans) corresponding to
those plans, programs, and policies sponsored by Parent as of the Distribution
Date, including those plans, programs, and policies listed in Appendix B to this
Agreement which will be sponsored by a member of the SpinCo Group immediately
after the Distribution Date.

                                       2
<PAGE>

         (p) "HMO" means a health maintenance organization that provides
benefits under the Parent Health and Welfare Plans or the SpinCo Health and
Welfare Plans, as applicable.

         (q) "HMO Agreements" means contracts, letter agreements, practices, and
understandings with HMOs that provide medical, dental, prescription drug, or
vision services under the Parent Health and Welfare Plans or the SpinCo Health
and Welfare Plans, as applicable.

         (r) "Incentive Plan," when immediately preceded by "Parent" means any
short-term or long-term compensation, bonus, stock-based or other incentive
compensation programs established or maintained by the Parent Group. When
immediately preceded by "SpinCo," "Incentive Plan" means any short-term or
long-term compensation, stock-based bonus, or incentive compensation programs to
be established or maintained by SpinCo pursuant to Section 2.3.

         (s) "Individual Agreement" means an individual contract or agreement
(whether written or unwritten) entered into between a member of the Parent Group
or a member of the SpinCo Group and any employee or individual who will be an
employee of, or otherwise assigned to, the SpinCo Group immediately after the
Distribution Date that establishes the right of such individual to special
compensation or benefits, special bonuses, supplemental pension benefits, hiring
bonuses, loans, guaranteed payments, special allowances, tax equalization
payments, special expatriate compensation payments, disability benefits, or
other forms of compensation and benefits.

         (t) "Liabilities" means any and all losses, claims, charges, debts,
premiums, demands, actions, costs, and expenses (including any current or future
benefit payments or other entitlements, and administrative and related costs and
expenses of any Plan, program, service or consulting agreement, or arrangement),
of any nature whatsoever, whether absolute or contingent, matured or unmatured,
liquidated or unliquidated, accrued or unaccrued, known or unknown, whether or
not imposed or determined by a court, whenever arising.

         (u) "Material Feature" means any feature of a Plan that could
reasonably be expected to be of material importance to the sponsoring employer
or the participants and beneficiaries of the Plan, which could include,
depending on the type and purpose of the particular Plan, the class or classes
of employees eligible to participate in such Plan, the nature, type, form,
source, and level of benefits provided by the employer under such Plan and the
amount or level of contributions, if any, required or permitted to be made by
participants (or their dependents or beneficiaries) to such Plan.

         (v) "Option" shall mean any stock option granted pursuant to a Parent
Incentive Plan prior to the Distribution.

         (w) "Parent Common Stock" has the meaning given that term under the
Distribution Agreement.

         (x) "Parent Group" has the meaning given that term under the
Distribution Agreement.

         (y) "Participating Company" means any Person (other than an individual)
that is participating in a Plan sponsored by a member of the Parent Group or a
member of the SpinCo Group, as the context requires.

         (z) "Person" means an individual, a general or limited partnership, a
corporation, a trust, a joint venture, an unincorporated organization, a limited
liability entity, any other entity, or any Governmental Authority.

                                       3
<PAGE>

         (aa) "Plan," when immediately preceded by "Parent" or "SpinCo," means
any plan, policy, program, payroll practice, on-going arrangement, contract,
trust, insurance policy, or other agreement or funding vehicle, whether written
or unwritten, providing benefits to employees or former employees of the Parent
Group or the SpinCo Group, as applicable.

         (bb) "Rabbi Trust," when immediately preceded by "Parent" means the
Trust Agreement for the F.N.B. Corporation Directors' Compensation Plan. When
immediately preceded by "SpinCo", "Rabbi Trust" means the grantor trust to be
established by SpinCo pursuant to Section 6.4(a) that corresponds to the Parent
Rabbi Trust.

         (cc) "Reimbursement Plans," when immediately preceded by "Parent,"
means the health care flexible spending account plans and the dependent care
flexible spending account plans, as applicable. When immediately preceded by
"SpinCo," "Reimbursement Plans" means the health care flexible spending account
plan and the dependent care flexible spending account plan to be established or
maintained by SpinCo pursuant to Section 2.3 that corresponds to the
corresponding Parent Reimbursement Plans.

         (dd) "Retiree" means any person who prior to the Distribution Date
retires under a retirement plan or policy of Parent or its Subsidiaries.

         (ee) "Savings Plan," when immediately preceded by "Parent," means the
F.N.B. Corporation Progress Savings 401(k) Plan that is sponsored by Parent and
will continue to be sponsored by Parent following the Distribution Date. When
immediately preceded by "SpinCo," "Savings Plan" means the F.N.B. Corporation
Salary Savings Plan that will be sponsored by SpinCo for periods immediately
after the Distribution Date.

         (ff) "SpinCo Business" has the meaning given that term under the
Distribution Agreement.

         (gg) "SpinCo Common Stock" has the meaning given that term under the
Distribution Agreement.

         (hh) "SpinCo Group" has the meaning given that term under the
Distribution Agreement.

         (ii) "SpinCo Mirror Plan" means any SpinCo Plans to be established that
will be substantially similar to a Parent Plan, as set forth on Appendix A
hereto.

         (jj) "SpinCo Option" shall mean any stock option granted pursuant to a
SpinCo Incentive Plan.

         (kk) "SpinCo Stand-Alone Plan" means any Plan maintained by Parent or
an affiliate of Parent, that, no later than the Distribution Date, will be
assumed, sponsored and maintained by SpinCo or a member of the SpinCo Group for
the exclusive benefit of Transferred Individuals, including but not limited to
the SpinCo Savings Plan, and those SpinCo Plans set forth and designated as
Stand-Alone Plans on Appendix A hereto.

         (ll) "Subsidiary" has the meaning given that term under the
Distribution Agreement.

         (mm) "Transferred Individual" means any individual who, as of the
Distribution Date:

                  (i) is actively employed by, or on a leave of absence
         (including those individuals receiving short-term disability benefits
         and those taking leave pursuant to the Family and Medical

                                       4
<PAGE>

         Leave Act of 1993, as amended) from, a member of the SpinCo Group (or
         is deemed to be so employed or on leave in accordance with an agreement
         between Parent and SpinCo); or

                  (ii) is not actively employed by, nor on a leave of absence
         (including those individuals receiving short-term disability benefits
         and those taking leave pursuant to the Family and Medical Leave Act of
         1993, as amended) from, Parent or a member of the Parent Group, or
         SpinCo or a member of the SpinCo Group, and:

                           a) whose most recent (through the Distribution Date)
                  active employment with Parent or a past or present affiliate
                  of Parent was with a member of the SpinCo Group or the SpinCo
                  Business, or the predecessors of such business; or

                           b) who otherwise is identified pursuant to a
                  methodology approved by Parent and SpinCo, which methodology
                  shall be consistent with the intent of the parties that former
                  employees of Parent or a past or present affiliate of Parent
                  and such other individuals who performed services for Parent
                  (including non-employees) will only be aligned with SpinCo if
                  they provided services to the SpinCo Group or SpinCo Business;

                  (iii) is employed by Parent as of the Distribution Date and is
         designated as a Transferred Individual on Appendix D; or

                  (iv) is a Director of Parent prior to the Distribution Date
         but will become a director of SpinCo immediately after the Distribution
         Date.

                  An alternate payee under a qualified domestic relations order
         (within the meaning of Code ss. 414(p) and ERISA ss. 206(d)), alternate
         recipient under a qualified medical child support order (within the
         meaning of ERISA ss. 609(a)), beneficiary, or covered dependent, in
         each case, of an employee or former employee described in (i), (ii) or
         (iii) above shall also be a Transferred Individual with respect to the
         interest of such alternate payee, alternate recipient, beneficiary, or
         covered dependent in that employee's or former employee's benefit under
         the applicable Plans. Such an alternate payee, alternate recipient,
         beneficiary, or covered dependent shall not otherwise be considered a
         Transferred Individual with respect to his or her own benefits under
         any applicable Plans, unless he or she is a Transferred Individual by
         virtue of either of subparagraphs (i), (ii) or (iii) above. In
         addition, Parent and SpinCo may agree to designate any other
         individuals, or group of individuals, as Transferred Individuals.

                  Subject to the other provisions of this definition, an
         individual may be a Transferred Individual pursuant to this definition
         regardless of whether such individual is, as of the Distribution Date,
         alive, actively employed, on a temporary leave of absence from active
         employment, on layoff, terminated from employment, retired or on any
         other type of employment, post-employment, or independent contractor
         status relative to Parent or SpinCo or to a Parent or SpinCo Plan.

                  Nothing contained in this Agreement shall permit, or be
         construed or interpreted to permit, any non-employee of Parent or
         SpinCo to participate, at any time, in any Plan of Parent or SpinCo.

                  SECTION 1.2 References. Unless the context clearly indicates
otherwise, reference to a particular Article, Section, subsection or paragraph
means the Article, Section, subsection or paragraph so delineated in this
Agreement.

                                       5
<PAGE>

                                   ARTICLE II
                               GENERAL PRINCIPLES

                  SECTION 2.1 Assumption of Liabilities. Except for each
Liability that is expressly retained in writing by Parent or excluded in writing
by Parent from those being assumed by SpinCo and unless otherwise provided for
elsewhere in this Agreement, SpinCo hereby assumes and agrees to pay, perform,
fulfill, and discharge, in accordance with their respective terms and
conditions, all of the following (regardless of when or where such Liabilities
arose or arise or were or are incurred): (i) all Liabilities to or relating to
Transferred Individuals, and their dependents and beneficiaries, under or with
respect to employee compensation programs, Plans or policies to the extent
relating to, arising out of or resulting from future, present, or former
employment with SpinCo, a member of the SpinCo Group, Parent or a member of the
Parent Group, (including Liabilities under Parent Plans and SpinCo Plans), (ii)
all Liabilities under any Individual Agreements relating to Transferred
Individuals, and (iii) all other Liabilities relating to, arising out of, or
resulting from obligations, liabilities, and responsibilities expressly assumed
or retained by a member of the SpinCo Group or a SpinCo Plan pursuant to this
Agreement.

                  SECTION 2.2 SpinCo Group Participation In Parent Plans. Unless
otherwise provided in this Agreement, to the extent applicable, effective as of
the Distribution Date, SpinCo and each member of the SpinCo Group shall cease to
be a Participating Company in any of the Parent Plans remaining with Parent, and
Parent and each member of the Parent Group shall cease to be a Participating
Company in any Plan assumed by SpinCo or a member of the SpinCo Group.

                  SECTION 2.3 Establishment or Assumption of the SpinCo Plans.

         (a) Assumption of SpinCo Stand-Alone Plans. Unless otherwise provided
in this Agreement, effective no later than the Distribution Date, SpinCo or a
member of the SpinCo Group shall assume or cause to be assumed, the SpinCo
Stand-Alone Plans set forth on Appendix A to this Agreement for the benefit of
Transferred Individuals and other current, future and former employees of the
SpinCo Group. SpinCo and Parent shall take all action necessary to provide for
such assumption of the SpinCo Stand-Alone Plans, including any necessary
amendments, and the name of the Plans shall be changed as and where appropriate.

         (b) Establishment of SpinCo Mirror Plans. Unless otherwise provided in
this Agreement, effective no later than the Distribution Date, SpinCo or a
member of the SpinCo Group shall adopt or cause to be adopted, the SpinCo Mirror
Plans for the benefit of Transferred Individuals and other current, future, and
former employees of the SpinCo Group, all as set forth in Appendix A to this
Agreement. The foregoing SpinCo Mirror Plans as in effect immediately after the
Distribution Date shall be substantially identical in all Material Features to
the corresponding Parent Plans as in effect as of the Distribution Date.

                  SECTION 2.4 Terms of Participation by Transferred Individuals.
The SpinCo Plans shall be, with respect to Transferred Individuals, in all
respects the successors in interest to, shall recognize all rights and
entitlements as of the Distribution Date under, and shall not provide benefits
that duplicate benefits provided by, the corresponding Parent Plans for such
Transferred Individuals. Parent and SpinCo shall agree on methods and
procedures, including amending the respective Plan documents, to prevent
Transferred Individuals from receiving duplicative benefits from the Parent
Plans and the SpinCo Plans. SpinCo shall not permit any SpinCo Plan to commence
benefit payments to Transferred Individuals until it receives written notice
from Parent regarding the date on which payments under the corresponding Parent
Plan shall cease. With respect to Transferred Individuals, each SpinCo Plan
shall provide that all benefit or other elections, all designations of
beneficiaries, all service, all compensation, and all other benefit-affecting
determinations that, as of the Distribution Date, were recognized under the

                                       6
<PAGE>
corresponding Parent Plan (for periods immediately before the Distribution Date)
shall, as of immediately after the Distribution Date, receive full recognition,
credit, and validity and be taken into account under such SpinCo Plan to the
same extent as if such items originally occurred under such SpinCo Plan, except
to the extent that duplication of benefits would result. The provisions of this
Agreement for the transfer of assets, if any, from certain trusts relating to
Parent Plans to the corresponding trusts relating to SpinCo Plans are based upon
the understanding and agreement of the parties that each such SpinCo Plan will
assume all Liabilities under the corresponding Parent Plan to or relating to
Transferred Individuals, as provided for herein. If there are any legal or other
authoritative reasons that any such Liabilities are not effectively assumed by
the appropriate SpinCo Plan, then the amount of assets transferred to the trust
relating to such SpinCo Plan from the trust relating to the corresponding Parent
Plan shall be recomputed, ab initio, as set forth in this Agreement but taking
into account the retention of any such Liabilities by such Parent Plan, and
assets shall be transferred by the trust relating to such SpinCo Plan to the
trust relating to such Parent Plan so as to place each such trust in the
position it would have been in, had the initial asset transfer been made in
accordance with such recomputed amount of transferred Liabilities and assets.

                                  ARTICLE III
                             DEFINED BENEFIT PLANS

     SECTION 3.1 F.N.B. Corporation Retirement Income Plan. All Transferred
Individuals who are participants in the F.N.B. Corporation Retirement Income
Plan shall have their benefits in such plan frozen as of the Distribution Date.
These Transferred Individuals will be deemed "terminated vested participants"
for purposes of this plan and shall be treated in accordance with the terms of
the plan. No SpinCo Mirror Plan will be established for the F.N.B. Corporation
Retirement Income Plan in connection with the Distribution.

                                   ARTICLE IV
                           DEFINED CONTRIBUTION PLANS

     SECTION 4.1 Savings Plans. Effective no later than the Distribution Date,
SpinCo or a member of the SpinCo Group shall take all action necessary to assume
and become the plan sponsor of the SpinCo Savings Plan and shall be responsible
for all Liabilities relating to the SpinCo Savings Plan. The SpinCo Savings Plan
shall recognize and maintain all contribution and investment elections made by
Transferred Individuals under the SpinCo Savings Plan as such elections were
last in effect during the period immediately prior to the Distribution Date and
shall apply such elections under the SpinCo Savings Plan for the remainder of
the period or periods for which such elections are by their terms applicable
(subject in all cases to applicable election change rights of the Transferred
Individuals). The Roger Bouchard Insurance, Inc. 401(k) Profit Sharing and Trust
Plan, which is presently sponsored by Roger Bouchard Insurance, Inc.
("Bouchard"), shall continue to be sponsored by Bouchard for periods immediately
after the Distribution Date. Bouchard, as a member of the SpinCo Group, shall be
responsible for all Liabilities relating to the Roger Bouchard Insurance, Inc.
401(k) Profit Sharing and Trust Plan. Any employees of the Parent Group who are
participants in the Roger Bouchard Insurance, Inc. 401(k) Profit Sharing and
Trust Plan and are not Transferred Individuals shall be deemed terminated for
purposes of this plan and shall be treated in accordance with the terms of such
plan.

                                       7
<PAGE>

                                   ARTICLE V
                            HEALTH AND WELFARE PLANS

                 SECTION 5.1 Assumption of Health and Welfare Plan Liabilities.

         (a) Assumption by SpinCo. Effective no later than the Distribution
Date, SpinCo shall establish, or cause to be established, the SpinCo Health and
Welfare Plans. Immediately after the Distribution Date, all Liabilities for or
relating to Transferred Individuals under the Parent Health and Welfare Plans,
shall cease to be Liabilities of Parent or the Parent Health and Welfare Plans
and shall be assumed by SpinCo and the corresponding SpinCo Health and Welfare
Plans. Thus, SpinCo and the SpinCo Health and Welfare Plans shall be responsible
for all Liabilities that pertain to Transferred Individuals regardless of when
incurred, including all reported claims that are unpaid, all incurred but not
reported claims as of the Distribution Date, and all claims incurred after the
Distribution Date that pertain to Transferred Individuals under the Parent
Health and Welfare Plans and the SpinCo Health and Welfare Plans. SpinCo shall
be required to make all payments due or payable to Transferred Individuals under
the appropriate SpinCo Health and Welfare Plans for the period beginning
immediately after the Distribution Date, including all reported claims that are
unpaid and all incurred but not reported claims as of the Distribution Date. All
treatments which have been pre-certified for or are being provided on an
on-going basis to a Transferred Individual under the Parent Health and Welfare
Plans as of the Distribution Date shall continue to be provided without
interruption under the appropriate SpinCo Health and Welfare Plan until such
treatment is concluded or discontinued pursuant to applicable plan rules and
limitations, and SpinCo and the SpinCo Health and Welfare Plans shall be
responsible for all Liabilities relating to, arising out of, or resulting from
such pre-certified or on-going treatments as of the Distribution Date.
Notwithstanding the preceding provisions of this Section 5.1, neither SpinCo nor
a SpinCo Health and Welfare Plan shall assume any Liability with respect to: (i)
a claim incurred on or prior to the Distribution Date for which Parent or a
Parent Health and Welfare Plan has insurance coverage, or (ii) any benefit claim
for which Parent is responsible under Section 5.3.

         (b) Certain Audit Procedures with Respect to Health and Welfare Plans.
At periodic intervals beginning immediately after the Distribution Date, Parent
and SpinCo shall examine their respective payments and receipts for health and
welfare coverages to ascertain whether Parent has mistakenly made or received
payments for coverages with respect to Transferred Individuals and whether
SpinCo has mistakenly made or received payments for coverages with respect to
participants and beneficiaries in the Parent Health and Welfare Plans (other
than Transferred Individuals). If any such mistaken payments have been made or
received by Parent or SpinCo, such mistaken payments and receipts shall first be
netted against each other by Parent and SpinCo and thereafter such net payments
or net receipts shall be further netted against the other party's net payments
or net receipts. The party with the remaining amount of mistaken payments shall
transfer such amount in cash to the other party at such time or times as agreed
upon by Parent and SpinCo, but not less than semi-annually. Furthermore, at
periodic intervals beginning immediately after the Distribution Date, Parent and
SpinCo shall examine the payment of benefits and claims, and reimbursements for
expenses, by their respective Health and Welfare Plans to ascertain whether any
Parent Health and Welfare Plan has mistakenly paid claims or benefits, or
reimbursed expenses, with respect to Transferred Individuals and whether any
SpinCo Health and Welfare Plan has mistakenly paid claims or benefits, or
reimbursed expenses, with respect to participants and beneficiaries in the
Parent Health and Welfare Plans (other than Transferred Individuals). If any
such mistaken payments or reimbursements have been made by any Parent or SpinCo
Health and Welfare Plan, such mistaken payments and reimbursements shall be
netted against the other corresponding Health and Welfare Plan's mistaken
payments and reimbursements. The Health and Welfare Plan with the remaining
amount of mistaken payments and reimbursements shall transfer such amount in
cash to the other party's corresponding Health and Welfare Plan at such time or
times as agreed upon by Parent and SpinCo, but not less than semi-annually.

                                       8
<PAGE>

                  SECTION 5.2 Parent Short-Term Disability Arrangements. Any
final determinations made by Parent with respect to short-term disability claims
by Transferred Individuals prior to the Distribution Date shall be final and
binding. Parent shall transfer to SpinCo, effective immediately after the
Distribution Date, and SpinCo shall assume responsibility for (i) administering
all short-term disability claims incurred by Transferred Individuals before the
Distribution Date that are administered by Parent as of the Distribution Date,
and (ii) all Liabilities under any Parent short-term disability arrangements to
Transferred Individuals as of the Distribution Date, in the same manner, and
using the same methods and procedures, as Parent used in determining and paying
such claims. Effective immediately after the Distribution Date, SpinCo shall
have sole discretionary authority to make any necessary determinations with
respect to such claims, including entering into settlements with respect to such
claims, and shall be solely responsible for any costs, Liabilities or related
expenses of any nature whatsoever related to such claims, payments or
obligations.

                  SECTION 5.3 COBRA and HIPAA. Effectively immediately after the
Distribution Date, SpinCo or a member of the SpinCo Group shall be responsible
for administering compliance and providing coverage in accordance with the
health care continuation coverage requirements for "group health plans" under
Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended ("COBRA"), and the portability requirements (including the requirements
for issuance of certificates of creditable coverage) under the Health Insurance
Portability and Accountability Act of 1996 with respect to all Transferred
Individuals and other employees and former employees of SpinCo or a member of
the SpinCo Group and any beneficiaries and dependents thereof who experience a
COBRA qualifying event or loss of coverage under the SpinCo Health and Welfare
Plans after the Distribution Date. Effective immediately after the Distribution
Date, SpinCo or a member of the SpinCo Group shall be responsible for filing all
necessary employee change notices with respect to these persons identified in
the previous sentence in accordance with applicable law.

                  SECTION 5.4 Leave of Absence Programs. Effective immediately
after the Distribution Date, SpinCo shall, or shall cause a member of the SpinCo
Group to, assume sole responsibility for the administration and compliance of
all leaves of absences and related programs (including compliance with the
Family and Medical Leave Act of 1993, as amended) affecting Transferred
Individuals.

                  SECTION 5.5 Post-Distribution Transitional Arrangements.

         (a)      Continuance of Elections, Co-Payments, and Maximum Benefits.

                  (i) SpinCo shall cause the SpinCo Health and Welfare Plans to
         recognize and maintain all coverage and contribution elections made by
         Transferred Individuals under the Parent Health and Welfare Plans, as
         such elections were last in effect during the period immediately prior
         to the Distribution Date, and shall apply such elections under the
         SpinCo Health and Welfare Plans for the remainder of the period or
         periods for which such elections are by their terms applicable (subject
         to applicable election change rights). Parent shall cause the claims
         administrator for the Parent Health and Welfare Plans to transfer to
         the claims administrator for the SpinCo Health and Welfare Plans all
         data necessary to maintain such coverage and elections.

                  (ii) SpinCo shall cause the SpinCo Health and Welfare Plans to
         recognize and give credit for (A) all amounts applied to deductibles,
         out-of-pocket maximums, and other applicable benefit coverage limits
         with respect to such expenses which have been incurred by Transferred
         Individuals under the Parent Health and Welfare Plans for the remainder
         of the benefit limit year in which the Distribution occurs, and (B) all
         benefits paid to Transferred Individuals under the

                                       9
<PAGE>
         Parent Health and Welfare Plans, during and prior to the benefit limit
         year in which the Distribution occurs, for purposes of determining when
         such persons have reached their maximum benefits under the SpinCo
         Health and Welfare Plans.

                  (iii) SpinCo shall recognize and cover under the SpinCo Health
         and Welfare Plans all eligible employee groups covered by the Parent
         Health and Welfare Plans (pertaining to Transferred Individuals) as of
         the Distribution Date (determined under the applicable Plan documents).

                  (iv) SpinCo shall (A) provide coverage to Transferred
         Individuals under the SpinCo Health and Welfare Plans without the need
         to undergo a physical examination or otherwise provide evidence of
         insurability, and (B) recognize and maintain all irrevocable
         assignments, elections and beneficiary designations made by Transferred
         Individuals in connection with their life insurance coverage under the
         Parent Health and Welfare Plans and any predecessor plans.

         (b)      Parent Reimbursement Plans. To the extent any Transferred
Individual contributed to an account under the Parent Reimbursement Plans during
the calendar year that includes the Distribution Date, effective immediately
after the Distribution Date, SpinCo shall recognize any such Transferred
Individual's account balance, determined as of the Distribution Date, and SpinCo
shall thereafter be solely responsible for making any and all payments relative
to such account balance of the Transferred Individual for all claims during such
calendar year under the applicable SpinCo Reimbursement Plan. All elections by
Transferred Individuals in effect immediately prior to the Distribution Date
shall continue and be recognized by SpinCo, and the Distribution alone shall not
be considered an event that gives any participant the right to change any prior
election. As soon as practicable after the Distribution Date, Parent shall
calculate as of the Distribution Date the aggregate net balance in the accounts
of Transferred Individuals under the Parent Reimbursement Plans, expressed
relative to the contributions received from such Transferred Individuals. If the
contributions received from a Transferred Individual exceed the reimbursements
made to or on behalf of such Transferred Individual, the Transferred Individual
shall be deemed to have a positive account balance. In turn, if the
contributions received from a Transferred Individual are less than the
reimbursements made to or on behalf of such Transferred Individual, the
Transferred Individual shall be deemed to have a negative account balance. If
the aggregate net balance in the accounts of all such Transferred Participants
is a positive number, then Parent shall pay this amount in cash to SpinCo as
soon as practicable after the Distribution Date, and if the aggregate net
balance in the accounts of all such Transferred Participants is a negative
number, then SpinCo shall pay this amount in cash to Parent as soon as
practicable after the Distribution Date.

                  SECTION 5.6 Application of Article V to the SpinCo Group. Any
reference in this Article V to "SpinCo" shall include a reference to another
member of the SpinCo Group when and to the extent SpinCo has caused the other
member of the SpinCo Group to (a) become a party to an ASO Contract, Group
Insurance Policy, HMO Agreement, letter of understanding or arrangement
associated with a SpinCo Health and Welfare Plan, (b) become a self-insured
entity for the purposes of one or more SpinCo Health and Welfare Plans, (c)
assume all or a portion of the Liabilities or the administrative
responsibilities with respect to benefits which arose before the Distribution
Date under any Parent Health and Welfare Plan and which were expressly assumed
by SpinCo pursuant to this Agreement, or (d) take any other action, extend any
coverage, assume any other Liability or fulfill any other responsibility that
SpinCo would otherwise be required to take under the terms of this Article V,
unless it is clear from the context that the particular reference is not
intended to include another member of the SpinCo Group. In all such instances in
which a reference in this Article V to "SpinCo" includes a reference to another
member of the SpinCo Group, SpinCo shall be responsible to Parent for ensuring
that the other member of the SpinCo Group complies with the applicable terms of
this Agreement and that the Transferred Individuals employed by such member of
the SpinCo Group shall have the same rights and entitlements to benefits

                                       10
<PAGE>
under the applicable SpinCo Health and Welfare Plans that the Transferred
Individual would have had, if he or she had instead been employed by SpinCo.

                                   ARTICLE VI
                         EXECUTIVE COMPENSATION MATTERS

         SECTION 6.1 F.N.B. Restricted Stock and Incentive Bonus Plan.

         (a)      Annual Incentive Awards. For the performance period ended
December 31, 2003, Parent shall pay to participants (excluding Transferred
Individuals) any amounts earned under the Parent Restricted Stock and Incentive
Bonus Plan at the time and in the manner provided under the terms of such plan
and SpinCo shall pay to participants who are also Transferred Individuals any
amounts earned under the Parent Restricted Stock and Incentive Bonus Plan at the
time and in the manner provided under the terms of such plan.

         (b)      Restricted Stock Awards.

                  (i) Each Award that consists of unvested restricted shares of
         Parent Common Stock that is outstanding as of the Distribution Date and
         is held by a Transferred Individual shall be converted, effective
         immediately after the Distribution Date, into a new Award under a
         SpinCo Incentive Plan consisting of number of unvested restricted
         shares of SpinCo Common Stock with a value equal to the economic value
         of the unvested restricted shares of Parent Common Stock constituting
         such Award as of the last trading day immediately preceding the
         Distribution Date. The number of unvested restricted shares of SpinCo
         Common Stock shall be determined by dividing the "economic value" of
         the Parent Common Stock subject to such Award by the closing price per
         share of SpinCo Common Stock on the first trading day following the
         Distribution Date as reported on the New York Stock Exchange, rounded
         down to the nearest whole share. Each such converted Award shall
         otherwise have the same terms and conditions as were applicable to the
         corresponding Parent Award as of the Distribution Date, except that
         references to Parent shall be amended to refer to SpinCo and dividend
         equivalent payments, if any, shall be payable after the Distribution
         Date with reference to dividends on SpinCo Common Stock.

                  (ii) Each Award that consists of unvested restricted shares of
         Parent Common Stock that is outstanding as of the Distribution Date and
         is held by a Person other than a Transferred Individual shall be
         adjusted, effective immediately after the Distribution Date, such that
         the number of unvested shares of Parent Common Stock subject to such
         Award immediately after the Distribution Date shall have a value equal
         to the economic value of the unvested restricted shares of Parent
         Common Stock constituting such Award as of the last trading day
         immediately preceding the Distribution Date. The number of unvested
         restricted shares of Parent Common Stock subject to the adjusted Award
         shall be determined by dividing the economic value of the Parent Common
         Stock subject to such Award by the closing price per share of Parent
         Common Stock on the first trading day following the Distribution Date
         as reported on The Nasdaq National Market, rounded down to the nearest
         whole share. For purposes of this Section 6.1(b), the "economic value"
         of the Parent Common Stock subject to such Award shall be determined by
         multiplying the number of unvested restricted shares of Parent Common
         Stock by the closing price per share of Parent Common Stock on the last
         trading day immediately preceding the Distribution Date as reported by
         The Nasdaq National Market.

                  (iii) Each vested share of Parent Common Stock subject to an
         Award shall be entitled to receive a share of SpinCo Common Stock in
         the same manner as every other outstanding share of Parent Common Stock
         on the Distribution Date.

                                       11

<PAGE>
                  SECTION 6.2 Stock Options.

         (a)      Options Held by Transferred Individuals. Each Option that is
outstanding as of the Distribution Date and is held by a Transferred Individual,
other than a Director or Retiree (which shall be treated as provided in Section
6.2(c) below), shall be replaced immediately after the Distribution Date, with a
SpinCo Option under a SpinCo Incentive Plan. The number of Shares of SpinCo
Common Stock subject to each SpinCo Option and the exercise price of each such
SpinCo Option shall be determined by application of the Conversion Formula to
the corresponding Option held by a Transferred Individual, other than a Director
or Retiree (except as provided in Section 6.2(c) below). Each such SpinCo Option
shall otherwise have the same terms and conditions as were applicable to the
corresponding Option as of the Distribution Date, except that references to
Parent and the Parent Group shall be amended to refer to SpinCo and the SpinCo
Group. SpinCo shall be the obligor with respect to such SpinCo Options and shall
be solely responsible for all stock option grants and payments under the SpinCo
Incentive Plans, with respect to, but not limited to, recordkeeping,
administrative costs and fees, payroll taxes, plan maintenance, option exercise
and related tax filings. SpinCo shall, as soon as practicable after the
Distribution Date, provide Transferred Individuals, and Directors and Retirees
who receive SpinCo Options pursuant to Section 6.2(c), an agreement or notice
relating to such Person's options under the SpinCo Incentive Plans.

         (b) Options Held by Persons other than Transferred Individuals. Each
Option that is outstanding as of the Distribution Date and is held by a Person
other than (i) a Transferred Individual or (ii) a Director or Retiree (which
shall be treated as provided in Section 6.2(c) below), shall be adjusted by
application of the Conversion Formula to such Option. Each such Option shall
otherwise have the same terms and conditions as were applicable to the such
Option as of the Distribution Date. Parent shall, as soon as practicable after
the Distribution Date, provide to such Persons whose Options are adjusted
pursuant to this Section 6.2(b), an agreement or notice relating to the
adjustment to such Person's Options.

         (c) Options held by Directors or Retirees. Each Option that is
outstanding as of the Distribution Date and is held by a Director or Retiree
shall be treated as follows:

                  (i) fifty percent (50%) of the number of shares of Parent
         Common Stock subject to each such Option, rounded down to the nearest
         whole share, shall be converted to SpinCo Options in accordance with
         Section 6.2(a) as if such Director or Retiree was a Transferred
         Individual with respect to that portion of such Director's or Retiree's
         Option; and

                  (ii) fifty percent (50%) of the number of shares of Parent
         Common Stock subject to each such Option, rounded down to the nearest
         whole share, shall be adjusted in accordance with Section 6.2(b) as if
         such Director or Retiree was not a Transferred Individual with respect
         to that portion of such Director's or Retiree's Option.

             SECTION 6.3 Deferred Compensation Plans.

         (a) Establishment of SpinCo Deferred Compensation Plans. Effective no
later than the Distribution Date, SpinCo shall take all action necessary to
establish the SpinCo Deferred Compensation Plans that are SpinCo Mirror Plans,
and the amounts credited to the accounts of Transferred Individuals under the
Parent Deferred Compensation Plans shall be transferred to the applicable SpinCo
Deferred Compensation Plans.

         The Transferred Individuals' termination of employment with the Parent
Group as a result of the Distribution shall not constitute a termination of
employment for purposes of the Parent or SpinCo Deferred Compensation Plans. All
elections by the Transferred Individuals that were controlling under the terms
of the applicable Parent Deferred Compensation Plan prior to the Distribution
shall continue under the applicable SpinCo

                                       12
<PAGE>
Deferred Compensation Plan until changed under the terms of such Plan. All
investment choices of Transferred Individuals under the Parent or SpinCo
Deferred Compensation Plans shall also be continued in effect; provided,
however, that any account balance that is deemed to be invested in whole or in
part in phantom shares of Parent Common Stock shall be converted into deemed
investments in phantom shares of SpinCo Common Stock in an equitable manner
determined by SpinCo. Nothing herein shall restrict Parent's or SpinCo's rights
to amend or terminate their respective Plans in the future.

         (b) Transfer of Corporate-Owned Life Insurance. The corporate-owned
life insurance policies which are jointly owned by Parent and a number of the
SpinCo Group on the Distribution Date that have been held by Parent or its
affiliates to help fund its obligations under Parent's various employee benefit
Plans will continue after the Distribution Date to be governed by the management
plan (the "Management Plan") by and among Parent, First National Bank of
Pennsylvania and First National Bank of Florida. Any changes to the Management
Plan after the Distribution Date, including, but not limited to, changes
regarding policy contracts, distribution of reports, selection and allocation of
investment divisions, policy surrender, policy value withdrawals, policy loans,
or the transfer to SpinCo or its affiliates of any such corporate-owned life
insurance policies, shall require the written consent of all parties to the
Management Agreement, which consent shall not be unreasonably withheld.

             SECTION 6.4 Rabbi Trust.

         (a) Effective no later than the Distribution Date, SpinCo shall
establish, or cause to be established, the SpinCo Rabbi Trust as a grantor trust
subject to Code Sections 671 et seq., which shall be substantially similar in
all Material Features to the Parent Rabbi Trust. SpinCo shall appoint First
National Wealth Management Company as trustee under the SpinCo Rabbi Trust.

         (b) As soon as practicable after the Distribution Date, Parent shall
determine the amount of the liabilities under the Parent Plans that are payable
from the Parent Rabbi Trust as of the Distribution Date and the amount of such
liabilities attributable to Transferred Individuals. Parent shall then cause the
trustee of the Parent Rabbi Trust to transfer to the trustee of the SpinCo Rabbi
Trust an amount in cash equal to the present value of liabilities attributable
to Transferred Individuals, to the extent such liabilities are funded under the
Parent Rabbi Trust as of the Distribution Date. To the extent that the Parent
Rabbi Trust holds shares of Parent Common Stock or other property for the
benefit of Transferred Individuals, Parent shall cause the trustee of the Parent
Rabbi Trust to transfer such shares or other property to the trustee of the
SpinCo Rabbi Trust.

                  SECTION 6.5 Employment Agreements. On or before the
Distribution Date, Parent shall assign and SpinCo shall assume the employment
agreements with the Transferred Individuals listed in Appendix C. Except as set
forth in the assignment agreements with respect to each individual employment
agreement, SpinCo shall be solely responsibly for all Liabilities related to the
SpinCo employment agreements with the Transferred Individuals.

                  SECTION 6.6 Automobile Program. As of the Distribution Date,
SpinCo shall assume all of Parent's Liabilities and obligations with respect to
the motor vehicles leased by Parent for Transferred Individuals pursuant to
lease agreements under any Parent executive automobile program.

                  SECTION 6.7 Director Benefits.

         (a) F.N.B. Corporation Directors' Compensation Plan. Effective not
later than the Distribution Date, SpinCo shall establish a SpinCo Directors'
Compensation Plan that is substantially identical in all Material Features to
the F.N.B. Corporation Directors' Compensation Plan, and SpinCo

                                       13
<PAGE>
shall assume and be solely responsible for all Liabilities under the F.N.B.
Corporation Directors' Compensation Plan relating to individuals who become
directors of SpinCo. As soon as practicable after the Distribution Date, Parent
shall cause the trustee of the Parent Rabbi Trust to transfer such property or
shares attributable to Transferred Individuals to the SpinCo Rabbi Trust as set
forth in Section 6.4.

         (b) Directors' Stock Option Plan. Effective not later than the
Distribution Date, SpinCo shall establish the SpinCo Directors' Stock Option
Plan that is substantially identical in all Material Features to the F.N.B.
Corporation 1998 Directors' Stock Option Plan. All outstanding options held by
Directors of Parent, including those Directors who will become directors of
SpinCo, shall be treated as provided in Section 6.2(c).

                  SECTION 6.8 Vacation Pay/Paid Time-Off. As of the Distribution
Date, the SpinCo Group shall recognize all of the Transferred Individuals'
accrued and unused vacation benefits consistent with the terms of the vacation
policies of Parent applicable to the Transferred Individuals as is in effect on
the Distribution Date and shall assume or retain liability for all unpaid
vacation pay, sick pay, and personal leave accrued by Transferred Individuals as
of the Distribution Date.

                  SECTION 6.9 Split Dollar Life Insurance. On or before the
Distribution Date, Parent shall take all action necessary to implement the
proposals approved by Parent's Compensation Committee at a meeting of such
committee held on December __, 2003 with respect to all split-dollar life
insurance arrangements or policies entered into between employees of Parent and
SpinCo, on the one hand, and Parent, on the other hand.

                                  ARTICLE VII
                                     GENERAL

                  SECTION 7.1 Sharing of Participant Information. Subject to
applicable laws on confidentiality, Parent and SpinCo shall share, Parent shall
cause each applicable member of the Parent Group to share, and SpinCo shall
cause each applicable member of the SpinCo Group to share, with each other and
their respective agents and vendors (without obtaining releases) all participant
information necessary for the efficient and accurate administration of each of
the Parent Plans and the SpinCo Plans with respect to periods ending on or
before the Distribution Date. Parent and SpinCo and their respective authorized
agents shall, subject to applicable laws on confidentiality, be given reasonable
and timely access to, and may make copies of, all information relating to the
subjects of this Agreement in the custody of the other party, to the extent
necessary for such administration. Until the Distribution Date, all participant
information shall be provided in the manner and medium applicable to
Participating Companies in the Parent Plans generally, and thereafter until
_____________ , all participant information shall be provided in a manner and
medium that is compatible with the data processing systems of Parent as in
effect on the Distribution Date, unless otherwise agreed to by Parent and
SpinCo.

                  SECTION 7.2 Restrictions on Extension of Option Exercise
Periods, Amendment or Modification of Option Terms and Conditions. SpinCo agrees
that, without the prior written consent of Parent, neither SpinCo nor any of its
affiliates or Subsidiaries shall take any action to extend the exercise period
of or to provide for additional vesting with respect to any SpinCo options which
were issued pursuant to Section 6.2 in replacement of Parent options for
Transferred Individuals, including providing such Transferred Individuals with
leaves of absences or special termination or severance arrangements.

                  SECTION 7.3 Reporting and Disclosure and Communications to
Participants. SpinCo shall assist, and SpinCo shall cause each other applicable
member of the SpinCo Group to assist, Parent in complying with all reporting and
disclosure requirements of ERISA for plan years ending on or before

                                       14
<PAGE>
December 31, 2003, including the preparation of Form 5500 annual reports for the
Parent Plans, where applicable.

                 SECTION 7.4 Plan Audits.

         (a) Audit Rights with Respect to Information Provided.

                  (i) Subject to Section 7.4(a)(ii), each of Parent and SpinCo,
         and their duly authorized representatives, shall have the right to
         conduct audits at any time upon reasonable prior notice, at their own
         expense, with respect to all information provided to it or to any Plan
         recordkeeper or third-party administrator by the other party with
         respect to all periods ending on or before the Distribution Date.
         Subject to Section 7.4(a)(ii), the party conducting the audit shall
         have the sole discretion to determine the procedures and guidelines for
         conducting audits and the selection of audit representatives. The
         auditing party shall have the right to make copies of any records at
         its expense, subject to the confidentiality provisions set forth in the
         Distribution Agreement, which are incorporated by reference herein. The
         party being audited shall provide the auditing party's representatives
         with reasonable access during normal business hours to its operations,
         computer systems and paper and electronic files, and provide workspace
         to its representatives. After any audit is completed, the party being
         audited shall have the right to review a draft of the audit findings
         and to comment on those findings in writing within five business days
         after receiving such draft.

                  (ii) The auditing party's audit rights under this Section
         7.4(a) shall include the right to audit, or participate in an audit
         facilitated by the party being audited, of any Subsidiaries and
         affiliates of the party being audited and of any benefit providers and
         third parties with whom the party being audited has a relationship, or
         agents of such party, to the extent any such persons are affected by or
         addressed in this Agreement (collectively, the "Non-parties"). The
         party being audited shall, upon written request from the auditing
         party, provide an individual (at the auditing party's expense) to
         supervise any audit of any Non-party. The auditing party shall be
         responsible for supplying, at its expense, additional personnel
         sufficient to complete the audit in a reasonably timely manner.

         (b) Audits Regarding Vendor Contracts. From immediately after the
Distribution Date through [_______________], Parent and SpinCo and their duly
authorized representatives shall have the right to conduct joint audits with
respect to any vendor contracts that relate to both the Parent Health and
Welfare Plans and the SpinCo Health and Welfare Plans. The scope of such audits
shall encompass the review of all correspondence, account records, claim forms,
canceled drafts (unless retained by the bank), provider bills, medical records
submitted with claims, billing corrections, vendor's internal corrections of
previous errors and any other documents or instruments relating to the services
performed by the vendor under the applicable vendor contracts. Parent and SpinCo
shall agree on the performance standards, audit methodology, auditing policy and
quality measures and reporting requirements relating to the audits described in
this Section 7.4(b) and the manner in which costs incurred in connection with
such audits will be shared. In the event that the parties cannot agree on the
matters described in this Section 7.4(b), such matters shall be subject to the
dispute resolution process set forth in Section 7.13 of this Agreement.

         (c) Audit Assistance. To the extent that either Parent or SpinCo is
required to respond to any Governmental Authority, vendor or recordkeeper audit,
or otherwise conducts an audit with respect to any provision or obligation of
the other party under this Agreement, Parent or SpinCo, whichever is applicable,
shall be required to fully cooperate with the audit, including providing such
records and data as may be necessary to respond to any document or data request
that may arise by reason of such audit. The party being audited shall provide
the auditing party's representatives with reasonable access during normal
business hours to its operations, computer systems and paper and electronic
files, and provide

                                       15
<PAGE>
workspace to its representatives. To the extent the results of an audit result
in any correction to the Liabilities involving any Transferred Individuals,
Parent shall be solely responsible for all such costs and expenses associated
with such Liabilities and any related corrections.

         SECTION 7.5 Beneficiary Designations/Release of Information/Right of
Reimbursement. All beneficiary designations, authorizations for the release of
information and rights to reimbursement made by or relating to Transferred
Individuals under Parent Plans shall be transferred to and be in full force and
effect under the corresponding SpinCo Plans until such beneficiary designations,
authorizations or rights are replaced or revoked by, or no longer apply, to the
relevant Transferred Individual.

         SECTION 7.6 Requests for Internal Revenue Service Rulings and United
States Department of Labor Opinions. SpinCo shall cooperate fully with Parent on
any issue relating to the transactions contemplated by this Agreement for which
Parent elects to seek a determination letter or private letter ruling from the
Internal Revenue Service or an advisory opinion from the United States
Department of Labor. Parent shall cooperate fully with SpinCo with respect to
any request for a determination letter or private letter ruling from the
Internal Revenue Service or advisory opinion from the United States Department
of Labor with respect to any of the SpinCo Plans relating to the transactions
contemplated by this Agreement. Any reasonable expenses incurred by the
cooperating party shall be borne by the party which is seeking cooperation.

         SECTION 7.7 Fiduciary and Related Matters. The parties acknowledge that
Parent will not be a fiduciary with respect to the SpinCo Plans and that SpinCo
will not be a fiduciary with respect to the Parent Plans. The parties also
acknowledge that neither party shall be deemed to be in violation of this
Agreement if it fails to comply with any provisions hereof based upon its good
faith determination that to do so would violate any applicable fiduciary duties
or standards of conduct under ERISA or other applicable law. Notwithstanding any
other provision in this Agreement, the parties may take such actions as
necessary or appropriate to effectuate the terms and provisions of this
Agreement.

         SECTION 7.8 No Third-Party Beneficiaries; Non-Termination of
Employment. This Agreement is not intended and shall not be construed as to
confer upon any Person other than the parties hereto any rights or remedies
hereunder. No provision of this Agreement or the Distribution Agreement shall be
construed to create any right, or accelerate entitlement, to any compensation or
benefit whatsoever on the part of any Transferred Individual or other future,
present, or former employee of the Parent Group or the SpinCo Group under any
Parent Plan or SpinCo Plan or otherwise. Without limiting the generality of the
foregoing, except as expressly provided in this Agreement: (i) neither the
Distribution nor the termination of the Participating Company status of a member
of the SpinCo Group shall cause any employee to be deemed to have incurred a
termination of employment which entitles such individual to the commencement of
benefits under any of the Parent Plans, any of the SpinCo Plans, or any of the
Individual Agreements; and (ii) nothing in this Agreement other than those
provisions specifically set forth herein to the contrary shall preclude Parent
or SpinCo, at any time after the Distribution Date, from amending, merging,
modifying, terminating, eliminating, reducing, or otherwise altering in any
respect any SpinCo Plan, any benefit under any Plan or any trust, insurance
policy or funding vehicle related to any SpinCo Plan.

         SECTION 7.9 Consent of Third Parties. If any provision of this
Agreement is dependent on the consent of any third party (such as a vendor) and
such consent is withheld, Parent and SpinCo shall use their reasonable best
efforts to implement the applicable provisions of this Agreement to the full
extent practicable. If any provision of this Agreement cannot be implemented due
to the failure of such third party to consent, Parent and SpinCo shall negotiate
in good faith to implement the provision in a mutually satisfactory manner. The
phrase "reasonable best efforts" as used in this Agreement shall not

                                       16
<PAGE>

be construed to require the incurrence of any non-routine or unreasonable
expense or liability or the waiver of any right.

         SECTION 7.10 Effect if Distribution Does Not Occur. If the Distribution
does not occur, then all actions and events that are, under this Agreement, to
be taken or occur before or effective as of the Distribution Date, immediately
after the Distribution Date, or otherwise in connection with the Distribution,
shall not be taken or occur except to the extent specifically agreed by SpinCo
and Parent.

         SECTION 7.11 Relationship of Parties. Nothing in this Agreement shall
be deemed or construed by the parties or any third party as creating the
relationship of principal and agent, partnership or joint venture between the
parties, it being understood and agreed that no provision contained herein, and
no act of the parties, shall be deemed to create any relationship between the
parties other than the relationship set forth herein.

         SECTION 7.12 Affiliates. Each of Parent and SpinCo shall cause to be
performed, and hereby guarantees the performance of, all actions, agreements and
obligations set forth in this Agreement to be performed by members of the Parent
Group or members of the SpinCo Group, respectively, where relevant.

         SECTION 7.13 Dispute Resolution. Any controversy or claim arising out
of or relating to this Agreement, or the breach hereof, shall be settled
pursuant to the dispute resolution provisions described in the Distribution
Agreement.

         SECTION 7.14 Indemnification. All Liabilities retained or assumed or
allocated to Parent or any member of the Parent Group pursuant to this Agreement
will be deemed to be Parent Liabilities (as defined in the Distribution
Agreement) and all Liabilities retained or assumed by or allocated to SpinCo or
any member of the SpinCo Group pursuant to this Agreement will be deemed to be
SpinCo Liabilities (as defined in the Distribution Agreement), and, in each
case, will be subject to the indemnification provisions set forth in the
Distribution Agreement.

         SECTION 7.15 W-2 Matters. Pursuant to the alternative procedure set
forth in Internal Revenue Service Rev. Proc. 96-60, SpinCo will assume Parent's
obligations to furnish Forms W-2 to all Transferred Individuals for the year in
which the Distribution Date occurs. Parent will provide to SpinCo the
information not available to SpinCo relating to periods ending on the
Distribution Date necessary for SpinCo to prepare and distribute Forms W-2 to
Transferred Individuals for the year in which the Distribution Date occurs,
which will include all remuneration earned by Transferred Individuals before the
Distribution Date and Forms W-4 provided to Parent by Transferred Individuals to
the extent that SpinCo is not already in possession of such information. SpinCo
shall prepare and distribute such forms. To the extent permitted by applicable
law, in particular Code Sections 3121(a)(1) and 3306(b)(1), SpinCo shall be
deemed a successor employer to Parent with respect to Transferred Individuals
for purposes of calculating the annual wage limitation to which state and
federal payroll taxes apply.

                                       17
<PAGE>

         SECTION 7.16 Confidentiality. Except as required by applicable law, for
the purpose of satisfying any obligation under this Agreement or with the
consent of the other party, neither Parent nor SpinCo shall disclose to any
Person (other than members of the Parent Group or the SpinCo Group) any
information (including, but not limited to, information regarding fees,
expenses, assets, Liabilities and Plan terms) relating to the Parent Plans,
SpinCo Plans or Transferred Individuals. Each of Parent and SpinCo shall be
permitted to disclose such information within the Parent Group and SpinCo Group
only to the extent reasonably necessary in the ordinary course of business.

         SECTION 7.17 Notices. Any notice, demand, claim, or other communication
under this Agreement shall be in writing and shall be given in accordance with
the provisions for giving notice under the Distribution Agreement.

         SECTION 7.18 Interpretation. Words in the singular shall be held to
include the plural and vice versa and words of one gender shall be held to
include the other genders as the context requires. The terms "hereof," "herein,"
and "herewith" and words of similar import shall, unless otherwise stated, be
construed to refer to this Agreement as a whole (including all Appendices
hereto) and not to any particular provision of this Agreement. The word
"including" and words of similar import when used in this Agreement shall mean
"including, without limitation," unless the context otherwise requires or unless
otherwise specified. The word "or" shall not be exclusive.

         SECTION 7.19 Severability. The provisions of this Agreement are
severable and should any provision hereof be void, voidable or unenforceable
under any applicable law, such provision shall not affect or invalidate any
other provision of this Agreement, which shall continue to govern the relative
rights and duties of the parties as though such void, voidable or unenforceable
provision were not a part hereof.

         SECTION 7.20 Governing Law/Execution. This Agreement shall be construed
in accordance with, and governed by, the laws of the State of Florida without
regard to the conflicts of law rules of such state, may not be assigned by
either party without the prior written consent of the other, and shall bind and
inure to the benefit of the parties hereto and their respective successors and
permitted assignees. This Agreement may not be amended or supplemented except by
an agreement in writing signed by Parent and SpinCo. This Agreement may be
executed in one or more counterparts, each of which shall be deemed an original
instrument, but all of which together shall constitute one and the same
Agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                       18
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Employee Benefits
Agreement to be duly executed as of the day and year first above written.

                                F.N.B. CORPORATION

                                By:
                                   --------------------------------------------
                                     Name:
                                     Title:

                                FIRST NATIONAL BANKSHARES OF FLORIDA, INC.

                                By:
                                   --------------------------------------------
                                     Name:
                                     Title:

                                       19
<PAGE>
              APPENDIX A SPINCO STAND-ALONE PLANS AND MIRROR PLANS

STAND-ALONE PLANS/AGREEMENTS TO BE ASSUMED BY SPINCO (WITH APPROPRIATE NAME
CHANGES)

                  F.N.B. Corporation Salary Savings Plan
                  Roger Bouchard Insurance, Inc. 401(k) Profit Sharing and
                    Trust Plan
                  F.N.B. Corporation Section 125 Flexible Benefits Plan
                  F.N.B. Corporation Employee Dental Plan

PARENT PLANS FOR WHICH SPINCO MIRROR PLANS WILL BE ESTABLISHED

         Deferred Compensation Plans

                  F.N.B. Corporation Basic Retirement Plan
                  F.N.B. Corporation Deferred Compensation Plan
                  F.N.B. Corporation Excess Profit Sharing and Lost Match Plan
                  F.N.B. Corporation Directors' Compensation Plan

         Health and Welfare Plans

                  F.N.B. Corporation Employee Assistance Program
                  F.N.B. Corporation Long-Term Disability, Life and AD&D
                    Insurance Plan
                  F.N.B. Corporation Termination Pay Plan
                  F.N.B. Corporation Section 125 Flexible Benefits Plan

         Incentive Plans

                  F.N.B. Corporation 2001 Incentive Plan
                  F.N.B. Corporation 1998 Directors' Stock Option Plan

                                      A-1
<PAGE>
                   APPENDIX B SPINCO HEALTH AND WELFARE PLANS

Health Plans (ERISA):
         SpinCo Section 125 Flexible Benefits Plan

Group Insurance Plans (ERISA):
         SpinCo Employee Assistance Program
         SpinCo Termination Pay Plan

Disability Plans (ERISA):
         SpinCo Long Term Disability, Life and AD&D Plan

*    SpinCo shall have the right to rename, combine or disaggregate any of the
     above Plans for any purpose, including the satisfaction of any disclosure
     or reporting requirements under ERISA.

                                      B-1
<PAGE>
                                   APPENDIX C

Employment Agreements

                                      C-1
<PAGE>
                                   APPENDIX D

Transferred Individuals who are employed by Parent as of the Distribution Date
and will be employed by SpinCo following the Distribution Date.

The following persons who were employed by Parent prior to the Distribution Date
and will not be employed by either Parent or SpinCo following the Distribution
Date shall not be deemed to be Transferred Individuals for purposes of this
Agreement.

                                   D-1

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